ASSET PURCHASE AGREEMENT dated as of October 5, 2009 by and among REPUBLIC SERVICES OF FLORIDA, LIMITED PARTNERSHIP, REPUBLIC SERVICES, INC. (solely for the purpose of Section 9.8), WASTE SERVICES OF FLORIDA, INC. and WASTE SERVICES, INC.
Exhibit 99.1
dated as of October 5, 2009
by and among
REPUBLIC SERVICES OF FLORIDA, LIMITED PARTNERSHIP,
REPUBLIC SERVICES, INC. (solely for the purpose of Section 9.8),
WASTE SERVICES OF FLORIDA, INC.
and
TABLE OF CONTENTS
Page | ||||||||
ARTICLE I | PURCHASE AND SALE OF ASSETS | 1 | ||||||
1.1 | Assets
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1 | ||||||
1.2 | Excluded Assets
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4 | ||||||
1.3 | Assumed Liabilities
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5 | ||||||
1.4 | Excluded Liabilities
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6 | ||||||
1.5 | Non-Assignment of Certain Contracts
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6 | ||||||
1.6 | Allocation of Purchase Price
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7 | ||||||
1.7 | Certain Customer Issues and Asset Reconciliations
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7 | ||||||
ARTICLE II | PURCHASE PRICE AND CLOSING | 8 | ||||||
2.1 | Purchase Price
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8 | ||||||
2.2 | Post-Closing Adjustment
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8 | ||||||
2.3 | Closing
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10 | ||||||
2.4 | Closing Deliveries by Seller
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10 | ||||||
2.5 | Closing Deliveries by WSI and Buyer
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11 | ||||||
ARTICLE III | REPRESENTATIONS AND WARRANTIES OF SELLER | 11 | ||||||
3.1 | Organization and Qualification
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11 | ||||||
3.2 | Authority; Binding Effect
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12 | ||||||
3.3 | Consents and Approvals; No Violation
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12 | ||||||
3.4 | Compliance with Laws; Permits
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13 | ||||||
3.5 | Assets; Personal Property
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13 | ||||||
3.6 | Real Property
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13 | ||||||
3.7 | Contracts
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14 | ||||||
3.8 | Taxes
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15 | ||||||
3.9 | Litigation
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15 | ||||||
3.10 | Events or Conditions Since July 1, 2009
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15 | ||||||
3.11 | Environmental Compliance; Hazardous Materials
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15 | ||||||
3.12 | Employment and Labor Matters
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16 | ||||||
3.13 | No Brokers’ or Finder’s Fees
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17 | ||||||
3.14 | Financial Information
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17 | ||||||
ARTICLE IV | REPRESENTATIONS AND WARRANTIES OF WSI AND BUYER | 17 | ||||||
4.1 | Organization and Qualification
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17 | ||||||
4.2 | Authority; Binding Effect
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17 | ||||||
4.3 | Consents and Approvals; No Violation
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18 | ||||||
4.4 | Litigation
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18 | ||||||
4.5 | No Broker’s or Finder’s Fees
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18 | ||||||
4.6 | Available Funds
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18 |
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ARTICLE V | RESERVED | 19 | ||||||
ARTICLE VI | ADDITIONAL AGREEMENTS | 19 | ||||||
6.1 | Reserved
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19 | ||||||
6.2 | Access to Information
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19 | ||||||
6.3 | Title Insurance and Surveys
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19 | ||||||
6.4 | Prorations and Charges
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20 | ||||||
6.5 | Reserved
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20 | ||||||
6.6 | Fees and Expenses
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20 | ||||||
6.7 | Reserved
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21 | ||||||
6.8 | Public Announcements
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21 | ||||||
6.9 | Reserved
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21 | ||||||
6.10 | Employees and Employee Benefits
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21 | ||||||
6.11 | Governmental Approvals
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22 | ||||||
6.12 | Reserved
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23 | ||||||
6.13 | Waiver of Bulk Sales Laws
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23 | ||||||
6.14 | Removal of Identification
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23 | ||||||
6.15 | Further Assurances
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23 | ||||||
6.16 | Lien Releases
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23 | ||||||
6.17 | Replacement Performance Bonds
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24 | ||||||
6.18 | Restrictive Covenants
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24 | ||||||
6.19 | Certain Other Matters
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24 | ||||||
6.20 | Buyer’s and WSI’s Representative
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25 | ||||||
6.21 | Lockboxes and Cash Sweeps
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25 | ||||||
ARTICLE VII | RESERVED | 26 | ||||||
ARTICLE VIII | RESERVED | 26 | ||||||
ARTICLE IX | INDEMNIFICATION | 26 | ||||||
9.1 | Survival of Representations, Warranties and Covenants
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26 | ||||||
9.2 | Indemnification by Seller
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26 | ||||||
9.3 | Indemnification by WSI and Buyer
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27 | ||||||
9.4 | Limitation on Liability
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27 | ||||||
9.5 | Indemnification Procedure Between WSI, Buyer and Seller
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28 | ||||||
9.6 | Procedure for Indemnification with Respect to Third-Party Claims
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28 | ||||||
9.7 | Tax Treatment of Payment
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29 | ||||||
9.8 | RSG Limited Guaranty
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29 | ||||||
ARTICLE X | NONDISCLOSURE | 29 | ||||||
10.1 | Nondisclosure by WSI and Buyer
|
29 | ||||||
10.2 | Confidential Information
|
30 | ||||||
10.3 | Exclusivity of Remedies
|
30 | ||||||
10.4 | Equitable Relief for Violations
|
30 |
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ARTICLE XI | DEFINITIONS | 31 | ||||||
ARTICLE XII | GENERAL | 38 | ||||||
12.1 | Assignment; Binding Effect; Amendment
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38 | ||||||
12.2 | Entire Agreement
|
38 | ||||||
12.3 | Counterparts
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38 | ||||||
12.4 | Notices
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38 | ||||||
12.5 | No Waiver
|
39 | ||||||
12.6 | Captions
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39 | ||||||
12.7 | No Third-Party Beneficiaries
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39 | ||||||
12.8 | Severability
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39 | ||||||
12.9 | Construction
|
39 | ||||||
ARTICLE XIII | DISPUTE RESOLUTION | 40 | ||||||
13.1 | General
|
40 | ||||||
13.2 | Governing Law
|
40 | ||||||
13.3 | Attorneys’ Fees
|
40 |
iii
This ASSET PURCHASE AGREEMENT (the “Agreement”) is executed and delivered as of
October 5, 2009, by and among WASTE SERVICES, INC., a Delaware corporation (“WSI”) and
WASTE SERVICES OF FLORIDA, INC., a Delaware corporation (“Buyer”), on the one hand, and
REPUBLIC SERVICES, INC., a Delaware corporation (“RSG”) and REPUBLIC SERVICES OF FLORIDA,
LIMITED PARTNERSHIP, a Delaware limited partnership (“Seller”), on the other hand. All
capitalized terms used in this Agreement shall have the meanings ascribed to them in Article
XI of this Agreement. RSG is a party hereto solely for the purpose of Section 9.8 of this
Agreement.
RECITALS
WHEREAS, Buyer desires to purchase and acquire certain designated Assets (as defined in
Section 1.1) principally used or held for use by Seller in connection with the solid waste
collection business in Miami-Dade County, Florida (the “Market”), subject to and in
accordance with the terms and conditions set forth in this Agreement; and
WHEREAS, Seller desires to sell the Assets to Buyer, subject to and in accordance with the
terms and conditions set forth in this Agreement;
NOW, THEREFORE, in consideration of the mutual promises and covenants in this Agreement and
other good and valuable consideration, received to the full satisfaction of each of the parties,
the parties agree as follows:
ARTICLE I
PURCHASE AND SALE OF ASSETS
1.1 Assets. On the terms and subject to the conditions set forth in this Agreement,
at the Closing, Seller shall grant, convey, sell, transfer, deliver and assign to Buyer, and Buyer
shall purchase from Seller, all of the right, title and interest that Seller possesses and has the
right to transfer in and to the following assets located in the Market (collectively, the
“Assets”), but excluding the Excluded Assets, free and clear of all Encumbrances, except
Permitted Encumbrances and Blanket Liens (which Blanket Liens shall be released by Seller in
accordance with Section 6.16):
(a) The real property, improvements and fixtures owned by Seller which are listed on
Schedule 1.1(a) (such owned assets of Seller are referred to collectively as the “Owned
Real Property” or the “Real Property”);
(b) The following tangible personal property owned or leased by Seller as of the Closing: (i)
the automobiles, trucks, fork lifts, construction vehicles and other motor vehicles listed on
Schedule 1.1(b)(i), together with all attachments and accessions thereto (collectively, the
“Rolling Stock”) to the extent registered with any Governmental Authority (collectively,
the “Registered Rolling Stock”); (ii) the number of containers and compactors located
on-site with a
customer that relate to a Collection Account and listed on Schedule 1.1(b)(ii); (iii)
that number of additional containers and compactors stored on the Real Property and listed on
Schedule 1.1(b)(iii) (collectively, together with the containers and compactors listed on
Schedule 1.1(b)(ii), the “Containers”); (iv) all of the furniture and office
equipment listed on Schedule 1.1(b)(iv) (collectively, the “Office Equipment”); (v)
all inventory of supplies, fuel, parts, tires and maintenance accessories (collectively, the
“Inventory”); and (vi) other tangible assets listed on Schedule 1.1(b)(iv);
(c) Subject to Section 1.7, the following Contracts:
(i) All Contracts and other rights to provide small container municipal solid waste
commercial and industrial collection services to the active customers at the locations on
the service routes listed on Schedule 1.1(c)(i) (collectively, such customer
accounts are referred to herein as the “Collection Accounts”, and the Contracts or
other rights to service the Collection Accounts are collectively referred to herein as the
“Collection Contracts”); and Schedule 1.1(c)(i): (A) will be provided on the
date hereof to identify such Collection Accounts by customer number and zip code and to set
forth, with respect to each Collection Account, the service requirements, container size and
standard monthly charge; and (B) will be updated within one (1) Business Day following the
Closing Date to identify all customer information relating to the final Collection Accounts
transferred on the Closing Date, including customer name, service address, billing address,
customer number, zip code, service requirements, container size and standard monthly charge;
(ii) The Contracts with Governmental Authorities listed on Schedule 1.1(c)(ii)
(collectively, the “Government Contracts”);
(iii) The leases relating to the Rolling Stock listed on Schedule 1.1(c)(iii)
(collectively, the “Rolling Stock Leases”);
(iv) The leases relating to the machinery, heavy equipment and materials handling
equipment (in each case, other than Rolling Stock) (collectively, the “Equipment”)
listed on Schedule 1.1(c)(iv);
(v) The leases relating to the Office Equipment listed on Schedule 1.1(c)(v);
(vi) The employment agreements listed on Schedule 1.1(c)(vi) (collectively, the
“Employment Contracts”);
(vii) The agreements relating to the Assets listed on Schedule 1.1(c)(vii); and
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(viii) Those other Contracts of Seller not set forth on Schedule 1.1(c) solely
to the extent (A) each such Contract relates primarily to the ownership or operation of the
Assets in the Market and requires by its terms annual expenditures after the Closing in an
amount less than $25,000 and (B) such Contracts collectively do not
require by their terms expenditures after the Closing of more than $100,000
(collectively, the “Permitted Unlisted Contracts,” and together with all of the
Contracts described in or listed on the Schedules 1.1(c)(i)-(vii), collectively, the
“Assumed Contracts”) (notwithstanding anything herein to the contrary, any Contracts
that are not listed on Schedules 1.1(c)(i)-(vii) and do not constitute Permitted
Unlisted Contracts will not be included as Assumed Contracts);
(d) All accounts receivable of Seller arising from the Collection Accounts which will be
listed on Schedule 1.1(d), (collectively, the “Accounts Receivable”), which
schedule will be delivered by Seller to Buyer within 5 Business Days following the Closing Date;
provided, however, that Accounts Receivable shall exclude any inter-company
accounts receivable and accounts receivable of Seller related to any National Accounts;
(e) All of the (i) operating records, customer records, maintenance files, engineering
studies, plans and specifications of Seller to the extent related to any Assets in the Market (in
whatever format they exist, whether in hard copy or electronic format) and (ii) to the extent
transferable under Applicable Law, human resources records, employee personnel files (including all
employee benefit files and employee investigation files, if applicable) and related files
(collectively, the “Employee Records”) related to employees of Seller hired by Buyer in
connection with the Transactions, but excluding any such files, documents, books and records that
constitute Excluded Assets pursuant to Section 1.2 and excluding past e-mails that are not
part of such files, documents, books and records and that instead may be stored on servers or
networks of Seller or otherwise included in the Excluded Assets (collectively, the
“Records”); provided, however, that Seller may retain a copy of (A) all
Employee Records and (B) all other records and files transferred to Buyer pursuant to this
Agreement, including those needed to comply with any regulations, investigations, audits, or
inquiries or for ongoing matters relating to the Excluded Assets, including all disputes and
litigation matters;
(f) The computer hardware and software of Seller that is listed and described on Schedule
1.1(f);
(g) All of the IP Rights listed on Schedule 1.1(g);
(h) All Permits related to the ownership, operation, management or use of the Assets in the
Market that are owned by, issued to, or held by or otherwise benefiting Seller and transferable by
their respective terms to Buyer;
(i) The credits, deferred charges, prepaid expenses, deposits and other prepaid assets, other
than those related to Taxes (except for any prepaid sales Taxes and property Taxes relating to the
fixed assets included within the Assets), of Seller principally related to the Assets and listed
and described on Schedule 1.1(i) (collectively, the “Prepaid Assets”); and
(j) All right, title and interest in and to the dedicated telephone and fax numbers, post
office boxes and telephone listings of Seller listed on Schedule 1.1(j).
To the extent any Registered Rolling Stock is owned other than by Seller, Seller shall cause such
Registered Rolling Stock to be sold to Buyer at Closing by the entities holding title thereto
(collectively, the “Additional Vehicle Seller”).
-3-
1.2 Excluded Assets. Notwithstanding anything to the contrary in Section 1.1
but subject to Section 1.7, the parties agree that the Assets shall exclude any assets of
Seller that are not expressly designated as Assets pursuant to Section 1.1, which excluded
assets of Seller shall remain the property of Seller and shall not be sold to Buyer or WSI at the
Closing (collectively, the “Excluded Assets”), including, without limitation, the following
Excluded Assets:
(a) The Purchase Price to be paid by Buyer to Seller pursuant to Section 2.1 Seller’s
other rights under this Agreement or any Ancillary Agreement;
(b) All cash or cash equivalents on hand or held in any account of Seller (including all
checking, savings, depository or other accounts), and all bank accounts and escrow accounts of
Seller;
(c) All accounts receivable and notes receivable of Seller related to or arising out of
transactions between Seller, on the one hand, and any subsidiary or Affiliate of Seller (any such
subsidiaries or Affiliates of Seller are collectively referred to as the “Seller
Companies”), on the other hand;
(d) All stock, membership interests, partnership interests or other ownership interests in
Seller or any Seller Companies;
(e) Except as otherwise provided in Section 1.1(e), all corporate or other
entity-level Records of Seller or Seller Companies, including, without limitation, corporate
charters, qualifications to conduct business as a foreign corporation, arrangements with registered
agents relating to foreign qualifications, taxpayer and other identification numbers, seals, minute
books, stock transfer books, Tax Records, blank stock certificates and other documents relating to
the organization, maintenance and existence of Seller or any Seller Companies;
(f) Except as otherwise provided in Section 1.1(e), any Records of Seller to the
extent related to any Excluded Assets or Excluded Liabilities (including, without limitation, files
relating to Taxes and personnel files);
(g) All rights of Seller with respect to any proceedings, causes of action and claims of every
nature, kind and description, including, but not limited to, all rights, claims, liens, rights of
setoff, offset or recoupment, defenses, lawsuits, judgments and other claims or demands of any
nature against third parties whether liquidated or unliquidated, fixed or contingent or otherwise;
(h) All rights under any insurance policies of Seller or any Seller Companies, including,
without limitation, any cash surrender value under any such insurance policies;
(i) All claims for any refunds of Taxes and other governmental charges attributable to any
period ending on or before the Closing Date;
(j) All assets held under any employee benefit plans maintained by or for the benefit of
Seller;
-4-
(k) All prior title insurance policies and commitments, deeds and surveys covering any Real
Property issued to, on behalf of or for the benefit of Seller or any Seller Companies; provided,
however, that Seller agrees to provide copies of the foregoing to the extent in the possession and
control of Seller;
(l) Any computer hardware and software owned or leased by, or licensed to, Seller that is not
listed on Schedule 1.1(f) (including, without limitation, all billing, route management and
other software programs in addition to basic operating systems);
(m) All rights, title and interest in any financial responsibility, financial assurance or
similar mechanisms;
(n) Such other assets of Seller that are listed on Schedule 1.2(n); and
(o) The National Accounts.
1.3 Assumed Liabilities. At the Closing, subject to Article IX, Buyer and WSI
shall jointly and severally assume from Seller, and shall agree to pay, perform and discharge when
due, the following Liabilities of Seller (the “Assumed Liabilities”):
(a) All Liabilities arising under or pursuant to the Assumed Contracts, the Collection
Accounts and the Real Property;
(b) All Liabilities for the customer deposits (the “Customer Deposits”) and deferred
revenue obligations (the “Deferred Revenue”) listed on Schedule 1.3(b);
(c) Any and all Liabilities relating to the Assets with respect to Environmental Laws and
Permits whether such Liabilities relate to periods preceding or following the Closing, including
all closure/post-closure Liabilities with respect to the Assets (including such Permits) and all
obligations under Applicable Laws (including Environmental Laws) to establish accruals for such
Liabilities;
(d) All Liabilities for Taxes relating to the Assets accruing on or after the Closing Date,
including Taxes relating to the Real Property (subject to the terms of Section 6.4);
(e) All Liabilities listed on Schedule 1.3(e);
(f) All other Liabilities which Buyer and/or WSI expressly agree to assume pursuant to this
Agreement; and/or
(g) Any other Liabilities (other than Excluded Liabilities) of any nature whatsoever, whether
legal or equitable, or matured or contingent, arising out of or in connection with or related to
the ownership, lease, operation, performance or use of the Assets after the Closing Date.
-5-
1.4 Excluded Liabilities. At the Closing, subject to Article IX, neither
Buyer nor WSI shall, by the execution and performance of this Agreement or otherwise, assume,
become responsible for or incur the following Liabilities of Seller (collectively, the
“Excluded Liabilities”):
(a) Except to the extent included in the Assumed Liabilities, any Liabilities of Seller or any
Seller Companies for Taxes, whether or not accrued, assessed or currently due and payable,
including any Taxes arising from the use or the ownership of the Assets for any Tax period (or
portion thereof) ending on or prior to the Closing Date;
(b) Subject to the terms of Section 6.6, any Liabilities of Seller for expenses
incurred in connection with the sale of the Assets pursuant to this Agreement;
(c) Any inter-company payables or receivables between Seller and any Seller Companies;
(d) Any Liabilities of Seller or any Seller Companies arising out of or in connection with or
related to the ownership or use of the Assets on or prior to the Closing Date that do not
constitute Assumed Liabilities; and
(e) Any Liabilities arising under that certain (i) Mortgage in the original principal amount
of $225,000.00 executed by Xxxxxx Realty, Inc. in favor of Xxxxx Xxxxxxxxxx dated June 17, 1988,
recorded June 21, 1988, in Official Records Book 13722, Page 1735 and (ii) Mortgage in the original
principal amount of $225,000.00 executed by Xxxxxx Realty, Inc. in favor of Xxxxx Xxxxxxxxxx dated
June 17, 1988, recorded June 21, 1988, in Official Records Book 13722, Page 1735.
1.5 Non-Assignment of Certain Contracts. Notwithstanding anything to the contrary in
this Agreement, to the extent that the assignment hereunder of any Assumed Contract shall require
the consent of any third party, neither this Agreement nor any action taken pursuant to its
provisions shall constitute an assignment or an agreement to assign if such assignment or agreement
to assign would constitute a breach of such Assumed Contract or result in the loss or material
diminution thereof, provided, however, that Seller shall, at the request of Buyer,
use commercially reasonable efforts to obtain the consent of the other party to such Assumed
Contract to an assignment thereof in favor of Buyer; further provided,
however, that if any Assumed Contract requires consent for assignment in favor of Buyer and
such consent is not obtained, Seller shall, to the extent requested by Buyer and contractually
permitted, use commercially reasonable efforts to enter into an operating agreement with Buyer
affording Buyer the rights, benefits and obligations under such Assumed Contract as if such consent
to assignment had been obtained (each, an “Operating Agreement”). In the event that the
consent to assign any such Assumed Contract is obtained, such Assumed Contract thereupon shall be
immediately assigned from Seller to Buyer. Notwithstanding the
foregoing, subject to Section 1.7, if such accommodation to the Seller under an
Operating Agreement is not contractually permitted, Seller shall not have any obligations to
provide Buyer or WSI with the rights, benefits or obligations under such Assumed Contract following
the Closing. Notwithstanding anything in this Agreement to the contrary, in no event shall Seller
be obligated to pay any fees, commissions or other compensation to obtain the consent of a third
party for the assignment hereunder of any Assumed Contract, and in no event shall Seller be liable
for any losses or Liabilities which are the result of any failure to obtain, or any decision by any
party hereto not to obtain, any consent of a third party to the assignment or subcontracting of any
Contract which is included, or intended to be included, among the Assets.
-6-
1.6 Allocation of Purchase Price. The Purchase Price (including any liabilities that
are considered to be an increase to the Purchase Price for federal income tax purposes) shall be
allocated among the Assets in a document prepared by Buyer in good faith and delivered to Seller
within sixty (60) days after the Closing Date (and adjusted within sixty (60) days after the Actual
True-Up Amount is finally determined pursuant to Section 2.2). Such allocation shall be
determined in accordance with the requirements of Code Section 1060 and based on the fair market
value of the Assets as determined by arm’s length negotiations. In the event that Seller disputes
in good faith Buyer’s allocation and such dispute is not resolved by agreement upon a final
Purchase Price allocation within ten (10) Business Days after delivery of Buyer’s Purchase Price
allocation, such dispute shall be submitted to an independent accountant mutually agreeable to
Seller and Buyer (the “Accountant”). The Accountant shall deliver its written
determination within thirty (30) days of receipt of the matter, and the Accountant’s determination
shall be final, binding and conclusive on the Parties for federal, state and local income tax
purposes in connection with the transactions contemplated hereby. The parties agree to file (or
cause to be filed) (i) all required federal Forms 8594, Asset Acquisition Statement under Section
1060, and (ii) all other Tax Returns (including amended Tax Returns and claims for refund) in a
manner consistent with such allocation of the Purchase Price described in this Section 1.6.
The parties agree to refrain from taking any position that is inconsistent with such allocation,
and to use their commercially reasonable efforts to sustain such allocation in any subsequent Tax
audit or Tax dispute.
1.7 Certain Customer Issues and Asset Reconciliations.
(a) Notwithstanding anything to the contrary in this Agreement, following the date of this
Agreement, Seller will use its commercially reasonable efforts to identify any customer issues
relating to National Accounts (collectively, “Customer Issues”).
(b) If, at any time after the Closing Date, either Seller or Buyer determines in good faith
that any Contract (whether or not an Assumed Contract, and including any Contract right related to
a Collection Account) relates both to the Assets and to assets, facilities or customers of Seller
or any Affiliate of Seller that are not included in the Assets, the parties will use their good
faith efforts to enter into arrangements, including subcontracting arrangements, bifurcation
arrangements, operating agreements and/or modifications of the applicable Contract, to allocate
reasonably and fairly the benefits and burdens thereof based on the relationship of such Contract
to the Assets and such assets, facilities or customers. If, at any time after the Closing Date,
either Seller or Buyer identifies any tangible personal property (whether or not
listed on the schedules hereto), Contract right or other asset that Seller or Buyer, as the
case may be, reasonably concludes in good faith (i) was included in the conveyances hereunder by
Seller to Buyer, (ii) was not used or held in connection with the ownership or operation of the
Assets, and (iii) was inadvertently conveyed in error by Seller to Buyer, the parties will use good
faith efforts to cause such tangible personal property, Contract right or other asset to be
reconveyed to Seller or, if such conveyance is not reasonably practicable, to enter into other
arrangements affording Seller the benefit of such tangible personal property or Contract right.
If, at any time after the Closing Date, Seller or Buyer identifies any tangible personal property,
Contract right (whether or not listed on the schedules hereto) or other asset that that Seller or
Buyer, as the case may be, reasonably concludes in good faith (i) was not included in the
conveyances hereunder by Seller to Buyer, (ii) was used or held in connection with the ownership or
operation of the Assets, and (iii) was inadvertently omitted in error from the conveyances
hereunder by Seller to Buyer, the parties will use good faith efforts to cause such tangible
personal property, Contract right or other asset to be conveyed to Buyer or, if such conveyance is
not reasonably practicable, to enter into other arrangements affording Buyer the benefit of such
tangible personal property or Contract right. Unless otherwise agreed, neither Buyer nor Seller
shall be entitled to any additional compensation for any conveyances made pursuant to this
Section 1.7(b).
-7-
ARTICLE II
PURCHASE PRICE AND CLOSING
2.1 Purchase Price. Subject to adjustment as provided in this Article II and
Section 9.7, at the Closing, WSI shall cause Buyer to pay to Seller, and Buyer shall pay to
Seller, the aggregate amount (the “Closing Purchase Price”) of Thirty Two Million Dollars
($32,000,000) by wire transfer of immediately available funds, plus or minus an
amount equal to the estimated net aggregate sum of the following items as of the Closing Date as
determined under Section 2.2(b) (collectively, the “Estimated True-Up Amount”): (a)
the estimated A/R Value as of the Closing Date; plus (b) the estimated total amount of
Prepaid Assets as of the Closing Date; minus (c) the estimated total amount of Deferred
Revenue as of the Closing Date; and minus (d) the estimated total amount of Customer
Deposits as of the Closing Date. The Closing Purchase Price, as adjusted pursuant to this
Article II and Section 9.7, is referred to herein as the “Purchase Price.”
2.2 Post-Closing Adjustment.
(a) The following capitalized terms used in this Agreement shall have the following meanings:
(i) “Actual True-Up Amount” means the net aggregate sum of the actual amounts
of the following items as of the Closing Date, as determined in accordance with this
Section 2.2: (a) the actual A/R Value as of the Closing Date; plus (b) the
actual amount of the Prepaid Assets as of the Closing Date; minus (c) the actual
amount of the Deferred Revenue as of the Closing Date and minus (d) the actual
amount of the Customer Deposits as of the Closing Date.
(ii) “Adjustment Amount” means an amount (which may be positive or negative)
equal to the amount by which the Actual True-Up Amount as of the Closing Date is different
from the Estimated True-Up Amount.
(iii) “A/R Value” means, with respect to a particular date, the value of the
Accounts Receivable as of such date reduced in accordance with the following formula: (A)
for all Accounts Receivable less than 90 days old, 0% reduction; (B) for all Accounts
Receivable from 90 to 120 days old, 50% reduction and (C) for all Accounts Receivable more
than 120 days old, 100% reduction.
-8-
(b) At least one (1) day prior to the Closing Date, Seller shall deliver to Buyer a worksheet
setting forth its good faith estimate of the Estimated True-Up Amount as of the Closing Date. If
the Estimated True-Up Amount is a positive number, as contemplated by Section 2.1, the
amount payable by Buyer to Seller at Closing shall be increased in an amount equal to the positive
Estimated True-Up Amount. If the Estimated True-up Amount is a negative number, as contemplated by
Section 2.1, the amount payable by Buyer to Seller at Closing shall be decreased in an
amount equal to the negative Estimated True-Up Amount.
(c) Within 90 days after the Closing, Seller shall prepare a computation of the Actual True-Up
Amount and the Adjustment Amount as of the Closing Date and deliver such computation to Buyer. If,
within 30 days following delivery of such computation, Buyer does not deliver a written objection
thereto to Seller, then the Actual True-Up Amount and the Adjustment Amount shall be deemed to be
agreed-to between the parties as reflected on the computation provided pursuant to the preceding
sentence. If Buyer objects in writing to the computation within 30 days following the delivery of
such computation, then Seller and Buyer shall negotiate in good faith and attempt to resolve their
disagreement. Should such negotiations not result in an agreement within 30 days after delivery of
such written objection, the issues remaining in dispute shall be submitted to an independent
auditor mutually agreeable to Seller and Buyer (the “Neutral Auditor”). Seller and Buyer
shall furnish or cause to be furnished to the Neutral Auditor such work papers and other documents
and information relating to the disputed issues as they may deem necessary or appropriate or as the
Neutral Auditor may request and that are available to that party or its agents. Further, Seller
and Buyer shall be afforded the opportunity to present to the Neutral Auditor any material relating
to the disputed issues and to discuss the issues with the Neutral Auditor, provided,
however, that no party shall have any discussions with the Neutral Auditor without first
providing the other parties with notice of such discussions and a reasonable opportunity to attend,
observe or otherwise participate in such discussions. All fees and expenses relating to the work,
if any, performed by the Neutral Auditor will be borne equally by Buyer and Seller. The Neutral
Auditor will deliver to Buyer and Seller a written determination (which determination shall include
a worksheet setting forth all material calculations used in arriving at such determination and
shall be based solely on information provided to the Neutral Auditor by Buyer and Seller or their
respective Affiliates) of the disputed items, including the Actual True-Up Amount and the
Adjustment Amount, within 30 days of receipt of the disputed items, which determination will be
final, binding and conclusive on the parties.
(d) Promptly following agreement on, or delivery of the final, binding and conclusive
computation setting forth, the Actual True-Up Amount and the Adjustment Amount,
Buyer and Seller shall account to each other as provided for in this Section 2.2(d).
If the Adjustment Amount is a positive number, then WSI shall cause Buyer to pay, and Buyer shall
pay, to Seller a cash payment equal to such difference as an increase in the Purchase Price. If
the Adjustment Amount is a negative number, then Seller shall pay Buyer a cash payment equal to
such difference as a decrease in the Purchase Price. Any such payment shall be due and payable
within 10 days after the final determination of the Adjustment Amount pursuant to Section
2.2(c) and shall be paid in immediately available funds by wire transfer to an account
designated by Buyer or Seller, as applicable.
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2.3 Closing.
(a) The closing of the purchase and sale provided for in this Agreement (the
“Closing”) shall take place at the offices of Akerman Senterfitt & Xxxxxx, P.A., Xxx
Xxxxxxxxx Xxxxx Xxxxxx, Xxxxx 0000, Xxxxx, Xxxxxxx 00000 at 10:00 a.m., local time, on the date
hereof. The date of this Agreement is referred to as the “Closing Date.” All proceedings
to be taken and all documents to be executed and delivered by all parties at the Closing will be
deemed to have been taken, executed and delivered simultaneously and no proceedings will be deemed
to have been taken nor documents executed or delivered until all have been taken, executed and
delivered.
(b) The parties agree that, notwithstanding the actual date and time of the Closing and
notwithstanding any other provision herein to the contrary, for financial and accounting purposes,
Closing shall be deemed to have occurred on October 1, 2009 at 12:01 a.m., local time (the
“Effective Time”) (i.e., Buyer will receive the benefit of all revenue generated on October
1, 2009 and thereafter and is responsible for all ordinary course business operating costs and
expenses incurred on and after October 1, 2009), and for all other purposes, Closing shall be
deemed to have occurred at 5:00 p.m., local time, on the date hereof. Buyer and Seller further
agree that, notwithstanding any other provision herein to the contrary, Buyer shall reimburse
Seller for all costs and expenses incurred by Seller, between the Effective Time and the Closing,
in connection with the regular operation of the business associated with the Assets. Buyer agrees
to make such reimbursement within five (5) Business Days of its receipt of an invoice for such
costs and expenses from Seller.
2.4 Closing Deliveries by Seller. At the Closing, Seller shall deliver or cause to be
delivered to Buyer, all duly and properly executed (where applicable):
(a) For each parcel of Owned Real Property, a Deed from the Seller conveying to Buyer
indefeasible, fee simple title to such parcel subject only to the Permitted Encumbrances, in form
and substance reasonably satisfactory to Buyer;
(b) A Xxxx of Sale from Seller to Buyer in the form agreed by Buyer and Seller (the “Xxxx
of Sale”);
(c) Affidavit of Non-Foreign Status from Seller to Buyer, in the form agreed by Buyer and
Seller;
(d) For each parcel of Owned Real Property, an owner’s affidavit from the Seller, and any
other documents reasonably required by the Title Company or as otherwise specified in the Title
Commitments in order for the Title Company to delete the Title Requirements (excluding any Title
Requirements that are (i) an obligation of Buyer or (ii) Assumed Liabilities) in order to issue the
corresponding Title Policies, which Title Commitments have been reviewed, approved and accepted in
full by Buyer on or prior to the date hereof;
(e) Assignment and assumption agreements executed by Seller or the applicable Seller Affiliate
thereof, in the form agreed by Buyer and Seller, for all of the Assumed Contracts (the
“Assignment and Assumption Agreement”);
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(f) A letter from Seller’s (or its Affiliate’s or Affiliates’) lenders confirming that all
Blanket Liens on the Assets will be released concurrently with the Closing and that evidence
thereof shall be delivered within 60 days following the Closing Date and evidence reasonably
satisfactory to Buyer of satisfaction of all Encumbrances encumbering the Assets other than
Permitted Encumbrances;
(g) A transition services agreement, in the form agreed by Buyer and Seller (the
“Transition Services Agreement”);
(h) A national account subcontract, in the form agreed by Buyer and Seller (the “National
Account Subcontract”); and
(i) Such other separate documents or instruments of sale, assignment or transfer as Buyer and
Seller shall mutually agree upon.
2.5 Closing Deliveries by WSI and Buyer. At the Closing, WSI and Buyer shall deliver
or cause to be delivered to Seller:
(a) The Closing Purchase Price by wire transfer of immediately available funds to the account
specified by Seller;
(b) The duly and properly executed Assignment and Assumption Agreement executed by Buyer;
(c) The duly and properly executed Transition Services Agreement executed by Buyer;
(d) The duly and properly executed National Account Subcontract executed by Buyer; and
(e) Such other separate documents or instruments of sale, assignment or transfer as Buyer and
Seller shall mutually agree upon.
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER
Except as set forth in the Seller’s Disclosure Schedules, Seller makes the following
representations and warranties to Buyer. For the purposes of this Article III, any item or
matter disclosed by Seller in any section or subsection of Seller’s Disclosure Schedules will also
be deemed to be disclosed in any other sections or subsections of Seller’s Disclosure Schedules to
the extent that it is reasonably apparent from the face of such disclosure that such item or matter
is applicable or relates to such other sections or subsections. It is understood and agreed that
the inclusion of any specific item in the Seller’s Disclosure Schedules is not intended to imply
that such items so included or other items are or are not material.
3.1 Organization and Qualification. Seller is duly organized, validly existing and in
good standing under the laws of the state of Delaware and is duly authorized, qualified and
licensed under all Applicable Laws to carry on its business in the places and in the manner in
which its business is presently conducted, except for where the failure to be so authorized,
qualified or licensed would not have a Seller’s Material Adverse Effect.
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3.2 Authority; Binding Effect.
(a) Seller has full power and, subject to obtaining any required consents hereunder, authority
(including full corporate or other entity power and authority) to enter into this Agreement and the
Ancillary Agreements to which it is a party, to consummate the Transactions and to perform its
obligations under this Agreement and the Ancillary Agreements to which it is a party.
(b) The execution, delivery and performance of this Agreement and the Ancillary Agreements by
Seller is within its partnership rights, powers and authority and such actions have been approved
by Seller’s general partner, and no other proceedings on the part of Seller will be necessary to
authorize the execution and delivery of this Agreement and the Ancillary Agreements or the
consummation by Seller of the Transactions and the performance of its obligations under this
Agreement and the Ancillary Agreements to which it is party. This Agreement is, and the Ancillary
Agreements to which the Seller is party when executed and delivered will be (assuming the due
authorization, execution and delivery of each by WSI and Buyer), the valid and legally binding
agreement of Seller, enforceable against Seller in accordance with their respective terms, except
as may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors’ rights generally and the effects of general principles of equity.
3.3 Consents and Approvals; No Violation. Except (a) as set forth in Schedule
3.3, and (b) for such matters which would not reasonably be expected to have a Seller’s
Material Adverse Effect, the execution, delivery and performance of this Agreement and the
Ancillary Agreements, the consummation of the Transactions and the fulfillment of the terms of this
Agreement and the Ancillary Agreements by Seller do not and will not:
(a) conflict with, or result in a breach or violation of, its Organizational Documents;
(b) result in the creation or imposition of any Encumbrance on the Assets;
(c) except for the notices, consents or approvals required under any Assumed Contract or
Permit (collectively, the “Required Consents”), (i) require Seller to provide notice to, or
obtain the consent or approval of, any Governmental Authority or other third Person or (ii)
constitute a material default under or give rise to any material right of termination, cancellation
or acceleration of, or to a material loss of any benefit to which Seller is entitled under, such
Assumed Contract; or
(d) conflict with, or result in a breach of or default under any Applicable Law to which
Seller is bound or to which the Assets are subject.
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3.4 Compliance with Laws; Permits.
(a) Except as set forth in Schedule 3.4(a) and except for such matters which would not
reasonably be expected to have a Seller’s Material Adverse Effect, (i) the Assets are being
operated in all material respects in compliance with all Applicable Laws, (ii) Seller is not
involved in any Proceeding relating to the Assets seeking to impose material fines or penalties or
seeking injunctive relief for violation of any Applicable Laws and Permits and (iii) there is no
pending or, to Seller’s Knowledge, threatened Proceeding or other form of material review relating
to Seller or the Assets with respect to any Applicable Law or Permit.
(b) The Permits listed on Schedule 3.4(b) comprise all Permits (excluding
Environmental Permits) necessary to enable Seller to own the Assets and conduct the Assets as
currently conducted, except any Permits the absence of which would not reasonably be expected to
have a Seller’s Material Adverse Effect. Except as set forth on Schedule 3.4(b), Seller is
in compliance with the terms and conditions of all Permits, except for such failures which would
not reasonably be expected to have a Seller’s Material Adverse Effect. All of the Permits are
currently valid, in good standing and in full force and effect in all material respects, except for
such failures which would not reasonably be expected to have a Seller’s Material Adverse Effect.
3.5 Assets; Personal Property.
(a) All of the Assets are either owned by Seller or leased by Seller under an Assumed
Contract.
(b) At the Closing, upon the consummation of the transactions in accordance with this
Agreement, Seller shall convey to Buyer good and marketable title to the Assets, or valid leasehold
interests in the leased personal property Assets, in each case, free and clear of all Encumbrances
(other than Encumbrances created by Buyer, Permitted Encumbrances and the Blanket Liens that will
be released as provided in Section 6.16), except, in each case, for such defects in title
and such Encumbrances that would not reasonably be expected to have a Seller’s Material Adverse
Effect.
(c) Except as set forth in Schedule 3.5(c), the Equipment is in operating condition in
all material respects, ordinary wear and tear excepted.
(d) The automobiles, trucks, fork lifts, construction vehicles and other motor vehicles and
the attachments, accessories and materials handling equipment comprising the Rolling Stock are in
operating condition in all material respects, ordinary wear and tear excepted.
3.6 Real Property.
(a) Except for Permitted Encumbrances or as set forth on Schedule 3.6(a) or the
requirements listed in the Title Commitments, (i) Seller has good and marketable indefeasible fee
simple title to the Owned Real Property, and, at Closing, all of Seller’s right, title and interest
to the Owned Real Property shall be conveyed to Buyer, free and clear of all Encumbrances, subject
to Encumbrances created by Buyer.
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(b) Except for the Permitted Encumbrances, the Blanket Liens that will be released as provided
in Section 6.16, as set forth on Schedule 3.6(b) or for matters that would not,
individually or in the aggregate, reasonably be expected to have a Seller’s Material Adverse
Effect:
(i) There are no Proceedings pending and brought by or, to Seller’s Knowledge,
threatened by, any third party which would reasonably be expected to result in a material
change in the allowable uses of the Real Property;
(ii) Seller has not leased or otherwise granted a present or future right to possession
or occupancy or use of all or any part of the Owned Real Property;
(iii) There are no Real Estate Leases, outstanding material options, rights of first
offer or rights of first refusal to purchase, right to acquire or right to lease the Owned
Real Property or any portion thereof;
(iv) There are no material Proceedings (including condemnation or eminent domain
proceedings) pending or, to Seller’s Knowledge, threatened against all or any part of the
Real Property;
(v) Seller has not received any written notice of (A) any material violation of any
applicable zoning ordinance, building code, use or occupancy restriction, covenant,
condition or restriction of record or any other violation of Applicable Law relating to the
Real Property or the improvements thereon or (B) any material pending special assessments
affecting all or any part of the Real Property (except as shown on the Title Commitments);
and
(vi) To Seller’s Knowledge, there are no unrecorded material contracts, leases,
easements or other agreements, rights or claims of third parties affecting the use, title,
occupancy or development of the Owned Real Property.
3.7 Contracts.
(a) Listed on Schedule 3.7(a) is a complete and accurate list of each Material
Collection Contract.
(b) Except as set forth in Schedule 3.7(b), to Seller’s Knowledge, all Material
Collection Contracts are in full force and effect in all material respects and are valid, binding
and enforceable against Seller in accordance with their respective provisions. To Seller’s
Knowledge, Seller has not received any written notice that any Person intends or desires to modify,
waive, amend, rescind, release, cancel or terminate any Material Collection Contracts.
(c) Set forth on Schedule 3.7(c) is a complete list of names and addresses of all
disposal sites used currently or within the past three (3) years by Seller in connection with the
operation of the Assets.
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3.8 Taxes. Except as set forth on Schedule 3.8 or for matters that would not,
individually or in the aggregate, reasonably be expected to have a Seller’s Material Adverse
Effect, with respect to the Assets:
(a) Seller, either separately or as a member of an Affiliated Group, (i) has completed and
timely filed all Tax Returns required to be filed with any Tax authority for any Pre-Closing Period
and (ii) has paid (or have had paid on their behalf) all Taxes shown as due and payable thereon.
Such Tax Returns reflect in all material respects all Taxes due and payable with respect to the
periods covered by them. There is no Tax Return filed by Seller either separately or as a member
of an Affiliated Group, and there are no outstanding assessments or Taxes otherwise due, for any
Pre-Closing Period, that will result, on or after the Closing Date, in any Taxes or other
governmental charges upon the Assets or Buyer, whether as transferees of the transferred assets or
otherwise. There are no Encumbrances for Taxes on any of the Assets other than Encumbrances for
Taxes not yet due and payable.
(b) There is no actual, pending or, to Seller’s Knowledge, threatened claim, audit,
investigation, dispute or other proceeding concerning any Taxes of Seller that may result in a
material Encumbrance against any of the Assets after Closing.
3.9 Litigation. Except as set forth on Schedule 3.9 and except for
proceedings which would not reasonably be expected to result in a Seller’s Material Adverse Effect,
(a) there are no Proceedings pending or, to Seller’s Knowledge, threatened against Seller relating
to the Assets that would reasonably be expected to interfere with the consummation of the
Transactions, at law or in equity, before any federal, state or local court or regulatory agency or
other Governmental Authority, (b) there are no existing orders, judgments or decrees of any
Governmental Authority affecting any of the Assets and (c) there are no Proceedings pending or, to
Seller’s Knowledge, threatened, against Seller that could result in an Encumbrance on the Real
Property.
3.10 Events or Conditions Since July 1, 2009. Except for matters that would not
reasonably be expected to result in a
Seller’s Material Adverse Effect, since July 1, 2009, Seller has operated the Assets in the
ordinary course of business.
3.11 Environmental Compliance; Hazardous Materials.
(a) Except as set forth in Schedule 3.11(a) or for matters that would not,
individually or in the aggregate, reasonably be expected to have a Seller’s Material Adverse
Effect:
(i) To Seller’s Knowledge, the Assets are being operated in material compliance with
all Environmental Laws and Environmental Permits;
(ii) To Seller’s Knowledge, during the period that Seller has operated the Assets,
there have been no Releases of any Hazardous Materials into the environment or onto or under
any Owned Real Property in connection with the ownership or operation of the Assets, except
in material compliance with all Environmental Laws;
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(iii) No portion of the Owned Real Property is on a CERCLA, CERCLIS or RCRIS list or
the National Priorities List of Hazardous Waste Sites or any similar list or database
maintained by the states in which the Assets are located, Seller is not listed as, nor have
they been notified that any of them is a “potentially responsible person” with respect to
the Assets; and
(iv) No Encumbrances with respect to a Release have been imposed against or on any of
the Assets under CERCLA, any comparable state statute or other Applicable Law.
(b) Except as set forth in Schedule 3.11(b) or for matters that would not,
individually or in the aggregate, reasonably be expected to have a Seller’s Material Adverse
Effect, with respect to the Assets, no Seller has received any written notice or other written
communication from any Governmental Authority or unaffiliated third Person alleging or relating to
the investigation of any alleged (i) material violation of Environmental Law or (ii) material
liability or potential liability for any Release, other than, in each case, those that have been
fully resolved without further liability or obligation to Seller. There is no litigation nor any
demand, claim or notice of violation pending or, to Seller’s Knowledge, threatened against either
the Seller or the Assets relating to a violation or failure to comply with Environmental Law.
(c) Seller has obtained all material Environmental Permits required to operate the Assets
required as currently operated, and Schedule 3.11(c) contains a complete list of all such
Environmental Permits.
(d) The representations and warranties made in this Section 3.11 are the sole and
exclusive representations and warranties of Seller with respect to environmental matters.
3.12 Employment and Labor Matters.
(a) Except as set forth in Schedule 3.12(a), with respect to the Assets, Seller is not
a party to (a) any collective bargaining agreement, (b) any agreement respecting the employment of
any Offered Employee other than the Employment Contracts or (c) any agreement for the provision of
consulting or other professional services which is not cancelable without penalty on less than 30
days’ notice. Except as set forth in Schedule 3.12(a) or for matters that would not,
individually or in the aggregate, have a Seller’s Material Adverse Effect, to Seller’s Knowledge,
within the last 5 years, Seller has not experienced any material labor disputes, union organization
attempts or any work stoppage due to labor disagreements in connection with any of the Assets.
Except to the extent set forth in Schedule 3.12(a), to Seller’s Knowledge, with respect to
the Assets, (i) there is no unfair labor practice charge or complaint against Seller pending or, to
Seller’s Knowledge, threatened, (ii) there is no labor strike, dispute, request for representation,
slowdown or stoppage actually pending or, to Seller’s Knowledge, threatened against or affecting
Seller, (iii) no question concerning labor representation has been raised to Seller or, to Seller’s
Knowledge, is threatened respecting the Offered Employees, (iv) no grievance, nor any arbitration
proceedings arising out of or under collective bargaining agreements, is pending or, to Seller’s
Knowledge, threatened, (v) there are no administrative charges, court complaints or threatened
complaints against Seller concerning alleged employment discrimination or other employment related
matters pending or, to Seller’s Knowledge, threatened before the U.S. Equal Employment Opportunity
Commission, the U.S. Department of Labor or any other Governmental Authority and (vi) to Seller’s
Knowledge, Seller has complied with all applicable labor and employment laws in all material
respects.
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(b) Set forth on Schedule 6.10(a) is each Offered Employee’s (i) position, (ii) salary
or hourly wage rate and (iii) bonus and incentive compensation.
3.13 No Broker’s or Finder’s Fees. Except as set forth on Schedule 3.13, no
agent, broker, investment banker, finder, financial advisor or other Person is or will be entitled
to any brokerage commissions, finder’s fees or similar compensation in connection with the
Transactions based on any agreement, arrangement or understanding made by or on behalf of Seller or
any Affiliate thereof or to which Seller or any Affiliate thereof is subject.
3.14 Financial Information. The historical Collection Account revenue, as set forth
on the financial statements attached hereto as Schedule 3.14, has been recorded thereon in
accordance with generally accepted accounting principles, and such revenue statistics are accurate,
true and complete in all respects, except as would not have a Seller’s Material Adverse Effect.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF WSI AND BUYER
Except as set forth in the Buyer’s Disclosure Schedules, WSI and Buyer, jointly and severally,
make the following representations and warranties to Seller. For the purposes of this Article
IV, any item or matter disclosed by Buyer in any section or subsection of the Buyer’s
Disclosure Schedules will also be deemed to be disclosed in any other sections or subsections of
the Buyer’s Disclosure Schedules to the extent that it is reasonably apparent from the face of
such disclosure that such item or matter is applicable or relates to such other sections or
subsections. It is understood and agreed that the inclusion of any specific item in the Buyer’s
Disclosure Schedules is not intended to imply that such items so included or other items are or are
not material.
4.1 Organization and Qualification. Each of WSI and Buyer is duly organized, validly
existing and in good standing under the laws of the state of its organization or formation.
4.2 Authority; Binding Effect.
(a) Each of WSI and Buyer has full power and, subject to obtaining any required consents
hereunder, authority (including full corporate or other entity power and authority) to enter into
this Agreement and the Ancillary Agreements to which it is a party, to consummate the Transactions
and to perform its obligations under this Agreement and the Ancillary Agreements to which it is a
party.
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(b) The execution, delivery and performance of this Agreement and the Ancillary Agreements by
each of WSI and Buyer is within their respective corporate, limited liability company or
partnership rights, powers and authority and such actions have been approved by each such Person’s
board of directors, managers or general partners (as the case may be), and no other proceedings on
the part of either WSI or Buyer will be necessary to authorize the execution and delivery of this
Agreement and the Ancillary Agreements or the consummation by WSI and Buyer of the Transactions and
the performance of their obligations under this Agreement and the Ancillary Agreements to which
they are parties. This Agreement is, and the Ancillary Agreements to which the WSI and Buyer are
parties when executed and delivered will be (assuming the due authorization, execution and delivery
of each by Seller and RSG), the valid and legally binding agreement of each of WSI and Buyer,
enforceable against each such Person in accordance with their respective terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
creditors’ rights generally and the effects of general principles of equity.
4.3 Consents and Approvals; No Violation. Except as set forth in Schedule
4.3, the execution, delivery and performance of this Agreement and the Ancillary Agreements,
the consummation of the Transactions and the fulfillment of the terms of this Agreement and the
Ancillary Agreements by WSI and Buyer do not and will not:
(a) conflict with, or result in a breach or violation of, either Person’s Organizational
Documents;
(b) result in the creation or imposition of any Encumbrance on the Assets;
(c) (i) require WSI or Buyer to provide notice to, or obtain the consent or approval of, any
Governmental Authority or other third Person or (ii) constitute a material default under or give
rise to any material right of termination, cancellation or acceleration of, or
to a material loss of any benefit under, any contract, agreement, arrangement or instrument to
which either such Person is a party or by which either such Person or any of its properties or
assets may be bound; or
(d) conflict with, or result in a material breach of or default under any Applicable Law to
which either such Person is bound or its material assets are subject.
4.4 Litigation. There are no Proceedings pending or, to WSI’s or Buyer’s Knowledge,
threatened against WSI or Buyer that would reasonably be expected to have a Buyer’s Material
Adverse Effect or to otherwise interfere with the consummation of the Transactions, at law or in
equity, before any federal, state or local court, regulatory agency or other Governmental
Authority.
4.5 No Broker’s or Finder’s Fees. No agent, broker, investment banker, finder,
financial advisor or other Person is or will be entitled to any brokerage commissions, finder’s
fees or similar compensation in connection with the Transactions based on any agreement,
arrangement or understanding made by or on behalf of WSI or Buyer or any Affiliate thereof or to
which WSI or Buyer or any Affiliate thereof is subject.
4.6 Available Funds. As of the date of this Agreement, Buyer has immediate access to
sufficient funds to pay the full Purchase Price payable hereunder at the Closing. WSI will cause
Buyer to have, and Buyer will have, sufficient funds to pay the full Purchase Price payable
hereunder at the Closing.
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ARTICLE V
RESERVED
ARTICLE VI
ADDITIONAL AGREEMENTS
6.1 Reserved.
6.2 Access to Information.
(a) If, as a result of the purchase of the Assets and the completion of the Transactions, WSI
or Buyer is required, pursuant to Applicable Laws, to file audited financial statements with the
Securities and Exchange Commission, with respect to the Assets, for any period prior to the Closing
Date, then, subject to compliance with Applicable Laws, Seller shall afford to Buyer, at Buyer’s
expense, reasonable access during normal business hours to such books and records of Seller as WSI
or Buyer may reasonably require in connection with their efforts to prepare such financial
statements.
(b) Schedule 3.9 lists pending and/or threatened litigation against Seller relating to
the Assets. It is also understood that it is possible that additional disputes and/or litigation
may be threatened or brought against Seller or its Affiliates relating to the Assets. In order to
address any such disputes and/or litigation, Seller may, after the date hereof, need access to the
books and records relating to the ownership and operation of the Assets prior to the date hereof.
Subject to compliance with Applicable Laws, Buyer shall, in connection with any such litigation or
dispute afford to Seller and its applicable Affiliates, at Seller’s (or such Affiliate’s) expense,
reasonable access during normal business hours to such books and records. Further, for a period of
three years from the date hereof, and for additional periods, if provided with notice to such
effect by Seller, Buyer agrees not to destroy or otherwise dispose of any records of Seller
currently being transferred pursuant to the Transactions.
6.3 Title Insurance and Surveys.
(a) Buyer has received the title commitment (the “Title Commitment”) issued by the
Title Company for the issuance of an ALTA (or, where applicable, a TLTA) owner’s policy of title
insurance for each parcel of Owned Real Property (each, a “Title Policy”). The Title
Commitment is described on Schedule 6.3(a) and has been reviewed and approved by Buyer. The
cost of the base premium for the Title Policy shall be split equally by Buyer and Seller at the
Closing and any extra cost for any deletions, modifications or endorsements that may be required by
Buyer not contemplated herein shall be the cost of Buyer. Seller shall select the Title Company
and, at Closing, Seller and Buyer shall split equally the cost incurred in obtaining the initial
Title Commitment.
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(b) Buyer has received a survey of each parcel of Owned Real Property (the “Surveys”)
prepared by a registered land surveyor or engineer. The Surveys are described on Schedule
6.3(b) and have been reviewed and approved by Buyer. The cost of any update to the Surveys
shall be split equally by Buyer and Seller at the Closing.
(c) Any matters shown and disclosed in the Title Commitments and Surveys, including, without
limitation, any Encumbrances, encroachments, overlaps, boundary disputes or gaps shall, from and
after the date hereof, be deemed approved by Buyer and shall constitute Permitted Encumbrances
under this Agreement.
6.4 Prorations and Charges. All Taxes and assessments relating to the Owned Real
Property and any personal property or other ad valorem Taxes for any Tax year prior to the Tax year
in which the Closing occurs shall be paid in full by Seller on or before the Closing Date or an
amount sufficient to fully discharge the same shall be deposited in escrow with the Title Company
for payment to the relevant Tax authority. Real Property Taxes and any personal property or other
ad valorem Taxes for the current Tax year shall be prorated between Seller and Buyer as of the
Closing Date on a daily, pro-rata basis based upon the latest available estimates of the amount
thereof or the actual amount of such Taxes. In the event that the actual amount of any such Taxes
for an applicable Tax period is not known as of the Closing Date, the proration of such Taxes shall
be made based upon the latest available Tax figures, and when the actual Tax bills for such Taxes
for the applicable Tax period is received by either Buyer or Seller, such party shall provide
notice of its receipt and a copy of such bills to the other party and, if necessary, the parties
shall thereafter promptly make a cash
settlement based upon the actual Tax bills. Notwithstanding the foregoing, all prorations and
allocations contemplated by this Section 6.4 which are not completed at the time of the
Closing may be reflected in, and allocated in connection with, the calculations of the Actual
True-Up Amount and the Adjustment Amount.
6.5 Reserved.
6.6 Fees and Expenses.
(a) Except as otherwise provided in this Agreement, (i) WSI and Buyer will pay the aggregate
of all fees, expenses and disbursements of WSI and Buyer and their agents, representatives,
accountants and counsel incurred in connection with the subject matter of this Agreement and any
amendments to it and all other costs and expenses incurred in the performance and compliance with
all conditions to be performed by WSI and/or Buyer under this Agreement and (ii) Seller will pay
the aggregate of all fees, expenses and disbursements of Seller and their respective agents,
representatives, accountants and counsel incurred in connection with the subject matter of this
Agreement and any amendments to it and all other costs and expenses incurred in the performance and
compliance with all conditions to be performed by Seller under this Agreement, including, without
limitation, legal fees, investment banking and advisory fees, accounting fees and any other
out-of-pocket documented expenses (collectively, the “Seller’s Expenses”).
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(b) All transfer, documentary, sales (including any bulk sales), use, stamp, registration and
other Taxes and all conveyance fees, recording charges and other fees and charges (including any
penalties and interest) incurred in connection with the consummation of the Transactions, shall be
split equally by Buyer and Seller when due to the applicable Tax authority; provided, however, that
all transfer, documentary, stamp and other Taxes incurred in connection with any financing of Buyer
shall be the cost of Buyer. Buyer will, at its own expense, file all necessary Tax Returns and
other documentation with respect to all such Taxes, fees and charges, and, if required by
Applicable Law, the parties will, and will cause their Affiliates to, join in the execution of any
such Tax Returns and other documentation. Without limiting the generality of the foregoing, Buyer
shall bear the payment of all transfer and sales and use Taxes and title fees related to the
transfer of the Rolling Stock included in the Assets and incurred as a result of the Transactions.
(c) Except as may be otherwise provided in this Agreement, all costs of closing the sale and
purchase of the Real Property shall be borne as follows: (i) all costs of any kind associated with
any financing obtained by Buyer shall be borne by Buyer, including, without limitation, any
recording fees, documentary fees and/or stamp Taxes and (ii) all costs to obtain the Title
Commitments and all Title Policy premiums, fees and costs and all other closing costs related to
the sale and purchase of the Real Property shall be as set forth in Section 6.3 of this Agreement.
6.7 Reserved.
6.8 Public Announcements. The parties shall mutually agree on a form of press release
to be issued in connection with this Agreement
and the Transactions. Except as otherwise required by Applicable Law or the rules of the New
York Stock Exchange, the parties agree that no press release, written communication, public
announcement, statement or filing shall be issued or made by Seller, on the one hand, or WSI or
Buyer, on the other hand, containing information regarding this Agreement or the Transactions
(including the terms of the Transactions) without the prior written approval of both Seller and
Buyer, which approval may not be unreasonably withheld, conditioned or delayed. The parties shall
consult with each other concerning the means by which Seller’s employees, customers and suppliers
and others having dealings with Seller will be informed of the Transactions.
6.9 Reserved.
6.10 Employees and Employee Benefits.
(a) Effective as of the Closing Date, subject to Buyer’s customary pre-employment screening,
Buyer shall offer employment to the employees listed on Schedule 6.10(a) (each, an
“Offered Employee”) on comparable terms (position, salary or hourly wage rate, bonus,
health and welfare benefits, etc.) in effect immediately prior to Closing. For purposes of this
Agreement, any Offered Employee who is not actively at work on the Closing Date because of
vacation, holiday, personal leave, sick or medical leave, maternity, paternity or other
family-related leave, military leave, jury duty, bereavement leave or any other leave shall be
deemed an Offered Employee. Each Offered Employee who accepts Buyer’s offer of employment is
referred to as a “Transferred Employee.”
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(b) Seller shall retain sole responsibility for all (i) accrued payroll and bonuses and
accrued but unused vacation, sick or personal days of each Offered Employee as of the Closing Date
and (ii) obligations, claims, liabilities and commitments under Seller’s Benefit Plans and
compensation practices, including severance benefits, if any, payable to Offered Employees who are
not Transferred Employees as a result of the Transactions. Seller shall retain all liabilities and
obligations to Offered Employees and their eligible dependents in respect of health insurance
continuation coverage required by the Consolidated Omnibus Budget Reconciliation Act of 1985, the
Health Insurance Portability and Accountability Act of 1996 and similar state Applicable Law.
(c) Buyer agrees to use commercially reasonable efforts to cooperate with and assist Seller in
eliminating the need for Worker Adjustment and Retraining Notification Act and any similar state
Applicable Law (collectively, the “WARN Act”) notifications. If, notwithstanding Buyer’s
compliance with the preceding sentence of this Section 6.10(c), WARN Act notification is
nonetheless required, Seller agrees to provide any required notice under the WARN Act, and any
similar state Applicable Law, and to otherwise comply with any such Applicable Law with respect to
any “plant closing” or “mass layoff” (as defined in the WARN Act) or group termination or similar
event affecting Offered Employees occurring prior to or as a result of the consummation of the
Transactions. After the date hereof, Buyer shall be responsible for providing any required WARN
Act notice, and any similar notice under applicable state law.
(d) All Offered Employees who are employed by Buyer from and after the Closing shall be given
credit for their years of service with Seller in determining their
entitlement to Buyer’s severance and other length-of-service related employee benefits;
provided that Buyer agrees to pay to any Offered Employee who is terminated by Buyer within
90 days of the date hereof at least the amount of severance pay to which such Offered Employee
would have been entitled, pursuant to Seller’s severance guidelines attached hereto as Schedule
6.10(d), if such employee had been terminated by Seller on the date hereof. Buyer shall take
all actions reasonably necessary to ensure that all Transferred Employees are eligible to be
enrolled in all applicable Benefit Plans of Buyer effective as of the Closing and are enrolled as
soon as reasonably practicable following the Closing (but in no event later than November 1, 2009),
and shall take all actions reasonably necessary to ensure that, to the fullest extent permitted
under such Benefit Plans, any probationary or waiting periods, or eligibility requirements,
applicable under any such Benefit Plans are waived with respect to the Transferred Employees.
Notwithstanding the foregoing, Buyer shall take all actions reasonably necessary to ensure that all
Transferred Employees are enrolled in all applicable Benefit Plans of Buyer providing health,
medical and similar benefits (the “Medical Plans”) effective as of the Closing and shall
take all actions reasonably necessary to ensure that any probationary or waiting periods, or
eligibility requirements, applicable under any such Medical Plans are waived with respect to the
Transferred Employees.
6.11 Governmental Approvals. Each party shall (i) subject to Applicable Laws,
promptly notify the other party of any written communication to that party from the U.S. Department
of Justice (the “DOJ”), the Antitrust Division or any other Governmental Authority relating
to this Agreement and, subject to Applicable Laws, permit the other party to review in advance any
proposed written communication to any of the foregoing relating to this Agreement, (ii) to the
extent permitted by Applicable Laws, not agree to participate in any substantive meeting or
discussion with any Governmental Authority in respect of any filings, investigation or inquiry
concerning this Agreement or the Transactions unless it consults with the other party in advance
and, to the extent permitted by such Governmental Authority, gives the other party the opportunity
to attend and participate at any such meeting or discussion and (iii) to the extent permitted by
Applicable Laws, furnish the other party with copies of all correspondence, filings and
communications between them and their Affiliates and their respective representatives, on the one
hand, and any government or regulatory authority or members or their respective staffs, on the
other hand, with respect to this Agreement and the Transactions.
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6.12 Reserved.
6.13 Waiver of Bulk Sales Laws. Buyer and Seller hereby waive compliance with the
bulk-transfer provisions of the Uniform Commercial Code (or any similar law) in connection with the
Transactions.
6.14 Removal of Identification. Within (a) three (3) months after the Closing, Buyer
shall remove or otherwise conceal all visible usage of the Retained IP on all Assets (other than
the Containers) and (b) within six (6) months after the Closing, Buyer shall remove or otherwise
conceal all visible usage of the Retained IP on the Containers.
6.15 Further Assurances. From time to time on and after the Closing and without
further consideration except as provided in this Agreement, the parties shall each deliver or cause
to be delivered to any other party or parties, at such times and places as shall be reasonably
requested, such additional instruments as such other party or parties may reasonably request for
the purpose of carrying out this Agreement and the Transactions. Seller, also without further
consideration, agrees to cooperate with Buyer and to use Seller’s commercially reasonable efforts
to have its officers and employees cooperate on and after the Closing Date in furnishing to Buyer
or its advisors (a) information requested by Buyer with respect to the Assets and (b) information
and other assistance in connection with obtaining all necessary Permits (including Environmental
Permits) and approvals and in connection with any third-party actions, proceedings, arrangements or
disputes of any nature with respect to the Assets, provided, however, that these
obligations shall not apply to disputes among the parties and that Seller shall not be required to
expend any sum of money toward such efforts beyond commercially reasonable and typical overhead
expenditures and commercially reasonable outside counsel and adviser fees and costs. WSI and
Buyer, also without further consideration, agree to cooperate with Seller and to use their
commercially reasonable efforts to have their officers and employees cooperate on and after the
Closing Date in furnishing to Seller or its advisors information and other assistance (including
reasonable access to the Assets, including the Real Property) in connection with any third-party
actions, proceedings, arrangements or disputes of any nature with respect to the Assets,
provided, however, that this obligation shall not apply to disputes among the
parties, and Buyer shall not be required to expend any sum of money toward that end beyond
commercially reasonable and typical overhead expenditures and commercially reasonable outside
counsel and adviser fees and expenses.
6.16 Lien Releases. The Assets may be encumbered by blanket liens in favor of various
lenders to Seller and/or Seller’s Affiliates (the “Blanket Liens”), all of which liens will
be released concurrently with the Closing. Within 60 days after the Closing Date, Seller shall
deliver evidence to Buyer of the release of any security interests reflecting such Blanket Liens.
Seller shall use commercially reasonable efforts after the Closing to have the mortgages referenced
in Section 1.4(e) of this Agreement terminated as soon as is practicable following the
Closing.
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6.17 Replacement Performance Bonds. Within 30 days following the Closing, Buyer will
post replacement performance bonds, letters of credit and other financial assurances for the
performance bonds, letters of credit and other financial assurances of Seller set forth on
Schedule 6.17, and will promptly furnish to Seller a copy of each such replacement
performance bond, letter of credit or other financial assurance as it is issued. Buyer will (i)
reimburse or otherwise pay Seller for the costs, expenses and Liabilities incurred by Seller in
keeping any performance bonds, letters of credit or other financial assurances in place during such
30-day period following the Closing and (ii) pay Seller interest at 10% per annum on the face
amount of any performance bonds, letter of credit and other financial assurances not replaced
within such 30-day period until the same are replaced.
6.18 Restrictive Covenants. Seller, for itself and on behalf of its Affiliates,
covenants and agrees that for a period of three years from and after the Closing Date (the
“Non-Solicit Period”), neither Seller nor any of its Affiliates will (i) solicit any small
container municipal solid waste commercial collection business from any
Collection Accounts or (ii) solicit from any counterparty to a Government Contract, the waste
collection services previously provided by Seller under such Contract prior to the Closing Date,
provided, however, that the foregoing restrictions set forth in this Section
6.18 shall not prohibit Seller or any of its Affiliates from (a) responding to, or executing a
contract with, any customer solicited through a request for proposals or other bidding process
(whether public or private), (b) responding to inquiries or solicitations made by any customers
(including pricing inquiries) and providing waste collection services to the customers that are
derived as a result of such inquiries or solicitations, (c) soliciting or entering into any
National Account Contracts, so long as, with respect to any such National Account Contract, for the
remainder of the Non-Solicit Period such Person agrees to subcontract to Buyer the small container
municipal solid waste commercial collection business in the Market and/or (d) continuing to do
business with any current customers of Seller or any of its Affiliates at locations of Seller not
involved in the Assets.
6.19 Certain Other Matters. Seller, WSI and Buyer each hereby acknowledge and agree
as follows: (a) WSI and Buyer have conducted an independent investigation of the Assets and are
purchasing the Assets on an “as-is, where-is” basis, (b) except as expressly set forth in
Article III, Seller make no representations or warranties, express or implied, at law or in
equity, in respect of the Assets or otherwise in connection with this Agreement including, without
limitation, with respect to merchantability or fitness for any particular purpose, and any such
other representations or warranties are hereby expressly disclaimed, (c) except as expressly set
forth in Article III, neither WSI nor Buyer has relied on any representations or warranties
by or on behalf of Seller in connection with their execution of this Agreement or the consummation
of the Transactions contemplated hereby, and any such other representations or warranties shall not
be implied at law or in equity, (d) Seller shall have no Liability whatsoever for any information
provided, or not provided, as the case may be, by or on behalf of Seller in due diligence or
otherwise in connection with the execution of this Agreement, other than Liabilities expressly
resulting from breaches of specific provisions of this Agreement, (e) to the fullest extent
permitted by Applicable Laws, WSI and Buyer do hereby unconditionally waive and release Seller, and
its partners, beneficial owners, officers, directors, managers, shareholders, members and employees
from any present or future claims and liabilities of any nature arising from or relating to the
presence or alleged presence of Hazardous Materials in, on, at, from, under or about the Real
Property or any adjacent property, including, without limitation, any claims under or on account of
any Environmental Law, regardless of whether such Hazardous Materials are located in, on, at, from,
under or about the Real Property or any adjacent property prior to or after the date hereof, and
(f) WSI and Buyer do hereby covenant and agree to defend, indemnify and hold harmless Seller and
its partners, beneficial owners, officers, directors, managers, shareholders, members and employees
from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs or
expenses of whatever kind or nature, known or unknown, existing and future, including any action or
proceeding brought or threatened, or ordered by Governmental Authorities, relating to any Hazardous
Materials which have or may be placed, located or released on the Real Property. The terms and
provisions of this paragraph shall survive the Closing hereunder.
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6.20 Buyer’s and WSI’s Representative. In order to administer efficiently the rights
and obligations of WSI and Buyer under this Agreement, each of WSI and Buyer hereby designates and
appoints Buyer as such party’s
representative (the “Buyer’s Representative”) to serve as their agent and
attorney-in-fact for the limited purposes set forth in this Agreement. Each of WSI and Buyer
hereby appoints the Buyer’s Representative as such Person’s agent, proxy and attorney-in-fact, with
full power of substitution, for all purposes set forth in this Agreement, including the full power
and authority on such Person’s behalf: (i) to consummate the transactions contemplated by this
Agreement; (ii) to disburse any funds received hereunder to WSI and Buyer; (iii) to execute and
deliver on behalf of WSI and Buyer any amendment of or waiver under this Agreement, and to agree to
resolution of all Claims hereunder; (iv) to retain legal counsel and other professional services,
at the expense of WSI and Buyer, in connection with the performance by the Buyer’s Representative
of this Agreement including all actions taken on behalf of WSI and/or Buyer as Indemnifying Party
pursuant to Article IX; and (v) to do each and every act and exercise any and all rights
which such Persons are permitted or required to do or exercise under this Agreement and the other
agreements, documents and certificates executed in connection herewith. Each of WSI and Buyer
agrees that such agency and proxy are coupled with an interest, are therefore irrevocable without
the consent of the Buyer’s Representative and shall survive the bankruptcy or other incapacity of
WSI and/or Buyer. Each of WSI and Buyer hereby agrees that any amendment or waiver under this
Agreement, and any action taken on behalf of WSI and/or Buyer to enforce the rights of such Person
under this Agreement, and any action taken with respect to any claim subject to indemnification by
any such Person pursuant to Article IX (including any action taken to object to, defend,
compromise or agree to the payment of such claim), shall be effective if approved in writing by the
Buyer’s Representative, and that each and every action so taken shall be binding and conclusive on
each of WSI and Buyer, whether or not such Person had notice of, or approved, such amendment or
waiver.
6.21 Lockboxes and Cash Sweeps. During the 180-day period following Closing, at least
once during every ten (10) Business Days, Seller shall provide to Buyer through ACH payment, to an
account designed in writing by Buyer, cash collected by Seller or the Seller Companies that is due
to Buyer pursuant to Section 1.1(d): (i) paid or sent to Seller’s or any Seller Company’s
lock boxes; (ii) made through any “ez-pay” or other electronic or telephonic payment system of
Seller or the Seller Companies; or (iii) via automatic bank payment or electronic funds transfer.
Following such 180-day period, Seller shall provide any such further cash amounts received by
Seller to Buyer on a periodic basis as may be reasonably mutually agreed upon by Seller and Buyer.
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ARTICLE VII
RESERVED
ARTICLE VIII
RESERVED
ARTICLE IX
INDEMNIFICATION
9.1 Survival of Representations, Warranties and Covenants.
(a) The representations, warranties and covenants of WSI, Buyer and of Seller contained herein
shall survive the Closing as follows:
(i) The Seller’s Fundamental Representations and the Buyer’s Fundamental
Representations shall survive for 30 days past the date of expiration of the applicable
statute of limitations relating to the subject matter thereof;
(ii) All other representations and warranties of Seller shall survive Closing for a
period of twelve (12) months; and
(iii) Except as otherwise specifically provided herein, the covenants of Seller, WSI
and Buyer shall survive Closing without limitation as to time until such covenants shall
have been performed in full.
(b) Seller, on the one hand, and WSI and Buyer, on the other hand, shall not have any
liability under Sections 9.2 and 9.3, respectively, unless a claim for losses,
liabilities or damages for which indemnification is sought thereunder is asserted by the respective
party within the survival period set forth above, provided, however, that the
timely written assertion of any claim by any such party against the Seller, WSI or Buyer hereunder
with respect to the breach or alleged breach of any representation, warranty or covenant shall
extend the survival period with respect to such claim through the date such claim is conclusively
resolved.
9.2 Indemnification by Seller. Subject to the terms of Sections 9.4, 10.3 and
10.4, Seller shall, jointly and severally, indemnify, defend (as to Third-Party Claims only),
protect, and hold harmless WSI, Buyer and their respective Affiliates at all times from and after
the Closing Date from and against all Liabilities, whether equitable or legal, matured or
contingent, known or unknown, foreseen or unforeseen, ordinary or extraordinary or patent or
latent, incurred by Buyer as a result of or incident to (a) any breach of, misrepresentation in,
untruth in or inaccuracy in the representation and warranties made by Seller in Sections 3.1,
3.2, 3.3, 3.5(a), 3.6(a) and 3.13 of this Agreement (collectively, the “Seller’s
Fundamental Representations”), (b) the breach or nonperformance of any covenant or agreement of
Seller in this Agreement, (c) any Excluded Asset or (d) any Excluded Liability.
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9.3 Indemnification by WSI and Buyer. Subject to the terms of Sections 9.4, 10.3
and 10.4, WSI and Buyer shall, jointly and severally, indemnify, defend (as to Third-Party
Claims only), protect and hold harmless Seller and its Affiliates at all times from and after the
Closing Date from and against all Liabilities, whether equitable or legal, matured or contingent,
known or unknown, foreseen or unforeseen, ordinary or extraordinary, patent or latent, incurred by
Seller as a result of or incident to (a) any breach of, misrepresentation in, untruth in or
inaccuracy in the representation and warranties made by WSI and/or Buyer in Article IV of
this Agreement (collectively, the “Buyer’s Fundamental Representations”), (b) the breach or
nonperformance of any covenant or agreement of WSI and/or Buyer in this Agreement, (c) from and
after the Closing Date, any Asset or (d) any Assumed Liability.
9.4 Limitation on Liability.
(a) The indemnification obligations set forth in Article IX shall (a) apply only if a
Closing occurs, (b) apply only after the aggregate amount of claims for indemnification from the
Indemnifying Party under this Agreement exceeds two percent (2%) of the Purchase Price (the
“Deductible”), and thereafter the Indemnifying Party shall solely be liable for
indemnification obligations in excess of the Deductible; provided, however, that
only claims, or series of related claims, equal to or in excess of $50,000 shall apply toward the
Deductible and/or be indemnifiable after the Deductible has been exceeded.
(b) Notwithstanding anything in this Agreement to the contrary, the maximum aggregate
liability of Seller for Liabilities under Section 9.2 shall be fifteen percent (15%) of the
Purchase Price.
(c) Notwithstanding anything to the contrary contained in this Agreement, neither WSI nor
Buyer shall be entitled to any indemnification for Liabilities which are (i) included and/or
reflected in the final Actual True-Up Amount calculation pursuant to Section 2.2 or (ii)
related to any failure to obtain, or any decision by any party hereto not to obtain, any consent of
a third party to the assignment or subcontracting of any Contract which is included, or intended to
be included, among the Assets.
(d) Any indemnification payment due and owing by an Indemnifying Party to an Indemnified Party
pursuant to this Article IX shall be reduced by (i) any insurance, indemnity, or other
payments or recoveries of a like nature with respect thereto realized by an Indemnified Party (and
no right of subrogation shall accrue hereunder to any insurer) and (ii) the amount of any tax
benefit to the Indemnified Party (or any of its Affiliates) with respect to the matter for which
indemnification would otherwise be available hereunder (after giving effect to the tax effect of
receipt of the indemnification payments).
(e) In the event that an Indemnifying Party can establish that an Indemnified Party had actual
knowledge, on or before the Closing Date, of a breach or inaccuracy of a representation or warranty
of the Indemnifying Party upon which a claim for indemnification by the Indemnified Party is based,
then the Indemnifying Party shall have no liability for any Liability resulting from or arising out
of such claim.
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(f) Subject to the terms of Section 8.2, in no event shall any Indemnifying Party have
any Liability under this Agreement resulting from, arising out of, or relating to the breach of
inaccuracy of any representation and warranty for incidental, punitive, indirect or consequential
damages, except to the extent that such damages are owed or payable to a third party as a result of
or in relation to such breach.
9.5 Indemnification Procedure Between WSI, Buyer and Seller. Upon the occurrence of
any claim for which indemnification is believed to be due under this Agreement, the Indemnified
Party shall provide notice of such claim to the Indemnifying Party, stating in general terms the
circumstances giving rise to the claim, specifying the amount of the claim (or an estimate thereof)
and making a request for any payment then believed due (subject to the limitations in this
Agreement). Upon receipt of any such notice, both the Indemnified Party and the Indemnifying Party
shall use all reasonable efforts to cooperate and arrive at a mutually acceptable resolution of
such dispute within the next 30 days. If a resolution is not reached within such 30-day period,
either party may commence the dispute resolution procedures set forth in Article XIII. If
all or a portion of such claim amount is owed to the Indemnified Party, the Indemnifying Party
shall (subject to the terms of Section 9.4), within 10 days of such determination, pay the
Indemnified Party such amount owed in cash.
9.6 Procedure for Indemnification with Respect to Third-Party Claims.
(a) If any third Person shall notify an Indemnified Party with respect to any matter that may
give rise to a claim for indemnification against an Indemnifying Party (a “Third-Party
Claim”) or if any party who may make a claim for indemnification under this Agreement otherwise
becomes aware of any matter that may give rise to such a claim or wishes to make such a claim
(whether or not related to a Third-Party Claim), then the Indemnified Party shall promptly notify
each Indemnifying Party thereof in writing, provided, however, that no delay on the
part of the Indemnified Party in notifying any Indemnifying Party shall relieve the Indemnifying
Party from any obligation under this Agreement unless (and then solely to the extent) the
Indemnifying Party is prejudiced by such delay.
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(b) If an Indemnified Party gives notice to the Indemnifying Party pursuant to Section
9.6(a) of the assertion of a Third-Party Claim, the Indemnifying Party shall be entitled to
participate in the defense of such Third-Party Claim and, to the extent that it wishes (unless the
Indemnifying Party is also a Person against whom the Third-Party Claim is made joint representation
would be inappropriate due to conflicts of interest), to assume the defense of such Third-Party
Claim with counsel reasonably satisfactory to the Indemnified Party. Except with the prior written
consent of the Indemnified Party, no Indemnifying Party, in the defense of any such claim or
litigation, shall consent to entry of any judgment or order, interim or otherwise, or enter into
any settlement that provides for injunctive or other nonmonetary relief affecting the Indemnified
Party or that does not include as an unconditional term thereof the giving by each claimant or
plaintiff to such Indemnified Party of a release from all liability with respect to such claim or
litigation. In the event that the Indemnifying Party does not accept the defense of any matter as
above provided, the Indemnified Party shall have the full right to defend against any such claim or
demand and shall be entitled to settle or agree to pay in full such claim or demand.
In any event, the Indemnifying Party and the Indemnified Party shall cooperate in the defense
of any claim or litigation subject to this Article IX, and the records and personnel of
each shall be reasonably available to the other with respect to such defense. With respect to any
Third-Party Claim subject to indemnification under this Article IX, the parties agree to
cooperate in such a manner as to preserve in full (to the extent possible) the confidentiality of
all Confidential Information and the attorney-client and attorney work product privileges. In
connection therewith, each party agrees that (i) it will use its commercially reasonable efforts,
in respect of any Third-Party Claim in which it has assumed or participated in the defense, to
avoid production of Confidential Information (consistent with Applicable Law and rules of
procedure) and (ii) all communications between any party hereto and counsel responsible for or
participating in the defense of any Third-Party Claim shall, to the extent possible, be made so as
to preserve any applicable attorney-client or attorney work product privilege.
9.7 Tax Treatment of Payment. Unless otherwise required by Applicable Law or unless
Seller and Buyer otherwise mutually agree, any payment made under this Article IX shall be
treated as an adjustment to the Purchase Price.
9.8 RSG Limited Guaranty. Subject to the terms of this Section 9.8, RSG
guarantees the payment of any indemnification obligations of Seller pursuant to this Article
IX and agrees to be bound by this Agreement solely for such purposes. This guaranty is a
guaranty of payment only and not of performance. The ability of any Person to collect any amount
under this guaranty will be subject to the limitations set forth in this Article IX (and
otherwise in this Agreement) on such Person’s ability to seek indemnification under Article
IX.
ARTICLE X
NONDISCLOSURE
10.1 Nondisclosure by WSI and Buyer. WSI and Buyer recognize and acknowledge that, in
connection with the Transactions, Seller has provided to Buyer, and will provide to Buyer prior to
the Closing Date, Confidential Information of Seller, including lists of customers, operational
policies and pricing and cost policies that are valuable, special and unique assets of Seller.
Each of WSI and Buyer agree that they will not, except as may be required by law or valid legal
process, disclose such Confidential Information to any Person for any purpose or reason whatsoever,
except to authorized representatives of Buyer, unless such information is or becomes known to the
public generally through no fault of WSI or Buyer. The provisions of this Section 10.1
shall apply at all times prior to the Closing Date and for a period of one year following the
earlier of (i) the Closing Date and (ii) termination of this Agreement without a Closing having
occurred.
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10.2 Confidential Information. Neither Seller nor any of its Affiliates shall at any
time subsequent to the Closing, except as explicitly requested by WSI or Buyer or as otherwise
provided in this Agreement, use for any purpose or disclose to any Person any Confidential
Information relating primarily to the Assets or the Assumed Liabilities, all such information being
deemed to be transferred to Buyer under this Agreement. For purposes of this Agreement,
“Confidential Information” shall mean proprietary,
non-public information relating primarily to the Assets or the Assumed Liabilities. The
foregoing provisions shall not apply to any information which is or relates to an Excluded Asset or
to the Excluded Liabilities or which relates to Tax matters of Seller. Both Seller and Buyer shall
maintain a copy of Confidential Information that relates to both Assumed Liabilities and Excluded
Liabilities. If, at any time after the Closing, either party should discover that it is in
possession of any records and files containing the Confidential Information of the other party,
then the party making such discovery shall immediately turn such records and files over to the
other party, which shall upon request make available to the surrendering party any information
contained therein which is not Confidential Information. Seller and Buyer agree that they will not
assert a waiver of loss of confidential or privileged status of the information based upon such
possession or discovery.
10.3 Exclusivity of Remedies. Notwithstanding anything in this Agreement to the
contrary, Fraud Claims, and equitable or injunctive relief or claims for specific performance, as
applicable, in accordance with the terms of Section 10.4, following the Closing:
(a) The sole and exclusive remedies of the Seller and its Affiliates for (i) any breach or
inaccuracy of, or failure to perform, any representation, warranty, covenant or agreement of WSI or
Buyer contained in this Agreement, the Schedules attached hereto or any certificate delivered in
connection herewith (ii), and/or any other Liabilities incurred by Seller in connection with this
Agreement, shall be the indemnification provisions provided in Article IX; and
(b) The sole and exclusive remedies of WSI and Buyer and their respective Affiliates for (i)
any breach or inaccuracy of, or failure to perform, any representation, warranty, covenant or
agreement of Seller contained in this Agreement, the Schedules attached hereto or any certificated
delivered in connection herewith (ii), and/or any other Liabilities incurred by WSI and/or Buyer in
connection with this Agreement (including any Liabilities suffered by WSI or Buyer as a result of
the failure of the Transactions to be consummated), shall be the indemnification provisions
provided in Article IX.
10.4 Equitable Relief for Violations. The parties acknowledge that an irreparable
injury may result to the non-violating party and its business in the event of a breach by the
violating party of any provision in this Article X. The parties also acknowledge and agree
that the damages or injuries that a non-violating party sustains as a result of such a breach are
difficult to ascertain and money damages alone may not be an adequate remedy to a non-violating
party. The parties therefore expressly agree that if a controversy arises concerning the rights or
obligations of a party under this Article X, such rights or obligations shall be
enforceable by a court decree of specific performance and a non-violating party shall also be
entitled to any injunctive relief from the court pursuant to Article XIII necessary to
prevent or restrain any such breach. Such relief shall be granted without the necessity of a
showing of irreparable harm and without the posting of a bond or other security. Such relief,
however, shall be cumulative and non-exclusive and shall be in addition to any other remedy to
which the parties may be entitled in accordance with this Agreement.
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ARTICLE XI
DEFINITIONS
As used in this Agreement, the following capitalized terms shall have the meanings given to
them below:
“Accountant” means the meaning specified in Section 1.6.
“Accounts Receivable” means the meaning specified in Section 1.1(d).
“Actual True-Up Amount” has the meaning specified in Section 2.2(a)(i).
“Additional Vehicle Seller” has the meaning specified in Section 1.1(e).
“Adjustment Amount” has the meaning specified in Section 2.2(a)(ii).
“Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlled by, controlling or under common control with such Person. For purposes of
this definition, a Person shall be deemed to control another Person if such first Person directly
or indirectly owns or holds 10% or more of the ownership interest in such other Person.
“Affiliated Group” means an affiliated group as defined in Code Section 1504(a) or any
similar group defined under a similar provision of state or local Tax law.
“Agreement” has the meaning specified in the introductory paragraph of this Agreement.
“Ancillary Agreements” means the Deeds, the Xxxx of Sale, the Assignment and
Assumption Agreements, and the other documents and agreements delivered by the parties pursuant to
the terms of this Agreement.
“Antitrust Division” means the Antitrust Division of the United States Department of
Justice.
“Applicable Laws” means all federal, state, local and foreign statutes, laws, rules,
regulations, orders, ordinances (including zoning restrictions and land use requirements and
Environmental Laws and regulations) and all administrative and judicial judgments, rulings,
decisions and orders applicable to Seller, WSI, Buyer and/or the Assets.
“A/R Value” has the meaning specified in Section 2.2(a)(iii).
“Assets” has the meaning specified in Section 1.1.
“Assignment and Assumption Agreements” has the meaning specified in Section
2.4(e).
“Assumed Contracts” has the meaning specified in Section 1.1(c)(vii).
“Assumed Liabilities” has the meaning specified in Section 1.3.
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“Xxxx of Sale” means a general conveyance, assignment and xxxx of sale, providing for
the conveyance, sale, transfer and assignment to Buyer of all of the Assets (other than the Real
Property).
“Blanket Liens” has the meaning specified in Section 6.16.
“Business Day” means any day that is not a Saturday, a Sunday or any other day on
which banks are authorized or required by law to be closed in New York, New York.
“Buyer” has the meaning specified in the introductory paragraph of the Agreement.
“Buyer’s Fundamental Representations” has the meaning specified in Section
9.3.
“Buyer’s Assumption Agreements” means an assumption agreement providing for the
assumption by Buyer of the Assumed Liabilities.
“Buyer’s Disclosure Schedules” means the schedules to the specific Sections of the
Agreement delivered by Buyer to Seller.
“Buyer’s Material Adverse Effect” means, with respect to WSI and/or Buyer, an effect,
event or change which materially adversely affects the ability of WSI and/or Buyer to perform their
obligations hereunder and/or to otherwise consummate the Transactions and other transactions
contemplated hereby in accordance with the terms hereof.
“Buyer’s Representative” has the meaning specified in Section 6.20(b).
“CERCLA” means the Comprehensive Environmental Response, Compensation and Liability
Act of 1980.
“Closing” and “Closing Date” have the meanings specified in Section
2.3(a).
“Closing Purchase Price” has the meaning specified in Section 2.1.
“Code” means the Internal Revenue Code of 1986.
“Collection Accounts” has the meaning specified in Section 1.1(c)(i).
“Collection Contracts” has the meaning specified in Section 1.1(c)(i).
“Confidential Information” has the meaning specified in Section 10.2.
“Containers” has the meaning specified in Section 1.1(b).
“Contract” means any agreement, contract, arrangement, understanding, lease, note,
bond, mortgage, indenture, loan agreement, franchise agreement, covenant, employment agreement,
license, instrument, purchase and sales order, commitment, undertaking, obligation, or other
legally binding agreement, whether written or oral, and including all amendments thereto.
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“Customer Deposits” has the meaning specified in Section 1.3(b).
“Customer Issues” has the meaning specified in Section 1.7(a).
“Deductible” has the meaning specified in Section 9.4.
“Deed” means a special warranty deed in form and substance reasonably acceptable to
Buyer.
“Deferred Revenue” has the meaning specified in Section 1.3(b).
“DOJ” has the meanings specified in Section 6.11.
“Effective Time” has the meanings specified in Section 2.3(b).
“Employee Records” has the meaning specified in Section 1.1(e).
“Employment Contracts” has the meaning specified in Section 1.1(c)(vi).
“Encumbrances” means liens, security interests, encumbrances, adverse claims, leases,
rights of repurchase or purchase, rights of first refusal, pledges, voting trusts, equities and
other restrictions, limitations or conditions on transfer of any nature whatsoever.
“Environmental Laws” means all Applicable Laws relating to pollution or protection of
human health or the environment (including ambient air, surface water, ground water, land surface
or subsurface strata), including laws and regulations relating to workplace or worker safety and
health or emissions, discharges, Releases or threatened Releases of Hazardous Materials or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Materials.
“Environmental Permits” means any environmental permits, license approval, consent, or
authorization issued by a federal, state, or local government or regulatory entity to the extent
related to the Assets.
“Equipment” has the meaning specified in Section 1.1(b).
“Estimated True-Up Amount” has the meaning specified in Section 2.1.
“Estoppel Certificate” means an estoppel certificate from a Government Authority that
is party to a franchise or other governmental agreement, in form and substance reasonably
acceptable to Buyer, certifying as to matters reasonably requested by Buyer.
“Excluded Assets” has the meaning specified in Section 1.2.
“Excluded Liabilities” has the meaning specified in Section 1.4.
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“Fraud Claims” means indemnity claims based upon a willful, fraudulent or intentional
misrepresentation or concealment of any Party contained in this Agreement or Buyer’s Disclosure
Schedules or Seller’s Disclosure Schedules, as applicable.
“Government Contracts” has the meaning specified in Section 1.1(c)(ii).
“Governmental Authority” means the Antitrust Division, any State of the United States
of America, any local authority and any political subdivision of any of the foregoing, any
multi-national organization or body, any agency, department, commission, board, bureau, court or
other authority of any of the foregoing, or any quasi-governmental or private body exercising, or
purporting to exercise, any executive, legislative, judicial, administrative, police, regulatory or
taxing authority or power of any nature.
“Hazardous Materials” means any chemicals, pollutants, contaminants, wastes and toxic
substances, including: (A) the presence of which requires reporting, investigation, removal or
remediation under any Environmental Law; (B) that is defined as a “hazardous waste,” “hazardous
substance,” “hazardous material,” “pollutant” or “toxic substance” under any Environmental Law; (C)
that is toxic, explosive, corrosive, flammable, ignitable, infectious, radioactive, reactive,
carcinogenic, mutagenic or otherwise hazardous and is regulated as such under any Environmental
Law; or (D) that contains gasoline or any other petroleum product or byproduct, polychlorinated
biphenyls, asbestos and urea formaldehyde.
“Indemnified Party” means a party seeking indemnification under Article IX.
“Indemnifying Party” means a party from whom indemnification is sought under
Article IX.
“Inventory” has the meaning specified in Section 1.1(b).
“IP Rights” means all intangible rights and property, including all customer
information and symbols, trademarks, service marks, logos and trade names, but expressly excluding
the Retained IP.
“Knowledge”, whether capitalized or not, with respect to Seller means the actual,
subjective knowledge of the following persons, without any duty of inquiry on their part: Xxxx Call
and Xxxxxx Xxxx and, solely with respect to the representations and warranties set forth in
Sections 3.4(b), 3.5(c) and (d), 3.7, 3.9 and 3.11, the Regional Director of Engineering
and Environmental Management in the region where the Assets are located; and (b) with respect to
any Person other than Seller, means the actual, subjective knowledge, without any duty of inquiry,
of such Person.
“Liabilities” means any claims, obligations, damages, actions, suits, Proceedings,
demands, assessments, adjustments, penalties, losses, debts, costs and expenses and any other
liabilities of any kind or nature whatsoever (including court costs, reasonable attorneys’ and
expert witness fees and expenses, consulting fees and expenses of investigation), whether equitable
or legal, matured or contingent, known or unknown, foreseen or unforeseen, ordinary or
extraordinary, patent or latent, asserted or unasserted, liquidated or unliquidated, accrued or
unaccrued or due or to become due, and expressly including, without limitation, punitive
damages, consequential damages, treble damages and any damages as a result of or relating to a loss
of profits.
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“Markets” has the meaning specified in the Recitals.
“Material Collection Contract” means a Collection Contract from which a Seller billed
revenues for the twelve (12) months ended June 30, 2009 equal to or greater than $150,000.
“National Account Subcontract” has the meaning specified in Section 2.4(h).
“National Accounts” means customer accounts that involve a broader area than the area
served by the Assets and that are managed by Seller or by an Affiliate of Seller pursuant to a
national or regional account program.
“Neutral Auditor” has the meaning specified in Section 2.2(c).
“Non-Solicit Period” has the meaning set forth in Section 6.18.
“Offered Employee” has the meaning specified in Section 6.10(a).
“Office Equipment” has the meaning specified in Section 1.1(b).
“Operating Agreement” has the meaning specified in Section 1.5.
“Organizational Documents” means the certificates or articles of incorporation,
certificates of formation or articles of organization and the bylaws, LLC operating agreements or
partnership agreements, as applicable, of Seller.
“Owned Real Property” has the meaning specified in Section 1.1(a).
“Permits” means any permits, grants, filings, notices of intent, exemptions, licenses,
authorizations, registrations, franchises, consents, approvals and related applications of every
kind from or with any federal, state, local or foreign government or regulatory authorities or
industrial bodies, including all FCC radio licenses or call signs.
“Permitted Encumbrances” means: (i) zoning ordinances and regulations which do not
materially adversely affect Buyer’s use or marketability of the Owned Real Property for its current
uses; (ii) taxes and assessments, both general and special, which are a lien but are not yet due
and payable at the Closing Date and (iii) easements, encroachments, Encumbrances, covenants,
conditions, reservations, restrictions and other matters identified on the Title Commitments or
Surveys.
“Permitted Unlisted Contracts” has the meaning specified in Section
1.1(c)(viii).
“Person” means any individual, firm, partnership, association, trust, corporation,
joint venture, unincorporated organization, limited liability company, Governmental Authority or
other entity.
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“Pre-Closing Period” means any Tax period or portion thereof ending on or before the
Closing Date (including the portion of any Straddle Period ending on the Closing Date).
“Prepaid Assets” has the meaning set forth in Section 1.1(i).
“Proceedings” means any claim, investigation, litigation, action, suit or proceeding,
formal arbitration, informal arbitration or mediation, administrative, judicial or otherwise.
“Purchase Price” has the meaning specified in Section 2.1.
“Real Estate Leases” means real property-related leases, occupancy agreements,
licenses or similar agreements, and any amendments thereto.
“Real Property” has the meaning specified in Section 1.1(a).
“Records” has the meaning specified in Section 1.1(e).
“Registered Rolling Stock” has the meaning specified in Section 1.1(b).
“Release” means release, spill, leak, discharge, dispose of, pump, pour, emit, empty,
inject, xxxxx, dump or allow to escape into or through the environment.
“Required Consents” has the meaning specified in Section 3.3(c).
“Retained IP” means any and all symbols, trademarks, service marks, logos, trade names
and other IP Rights of Seller that are not listed on Schedule 1.1(g).
“Rolling Stock” has the meaning specified in Section 1.1(b).
“Rolling Stock Leases” has the meaning specified in Section 1.1(c)(iii).
“Seller” and “Seller” have the meanings specified in the introductory
paragraph of the Agreement.
“Seller Companies” has the meaning specified in Section 1.2(c).
“Seller’s Fundamental Representations” has the meaning specified in Section
9.2.
“Seller’s Disclosure Schedules” means the schedules to the specific Sections of the
Agreement delivered by Seller to Buyer, as supplemented pursuant to Section 6.9.
“Seller’s Expenses” has the meaning specified in Section 6.6(a).
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“Seller’s Material Adverse Effect” shall mean any effect, event or change that has a
material adverse effect on the business, results of operations or financial condition of the
Assets, taken as a whole, other than effects, events or changes arising out of or resulting from
(a) changes in conditions in the U.S. or global economy or capital or financial markets generally,
including changes in interest or exchange rates, (b) changes in general legal, regulatory,
political,
economic or business conditions or changes in generally accepted accounting principles that,
in each case, generally affect industries in which the Seller conducts business, (c) the
negotiation, execution, announcement or performance of this Agreement or the consummation of the
Transactions, including the impact thereof on relationships, contractual or otherwise, with
customers, suppliers, lenders, partners or employees, (d) acts of war, sabotage or terrorism, or
any escalation or worsening of any such acts of war, sabotage or terrorism threatened or underway
as of the date of this Agreement or (e) earthquakes, hurricanes or other natural disasters.
“Seller’s Representative” has the meaning specified in Section 6.20(a).
“Straddle Period” means any Tax period beginning before and ending after the Closing
Date.
“Surveys” has the meaning specified in Section 6.3(b).
“Tax” or “Taxes” means any federal, state, local, foreign, and other income,
gross receipts, sales, use, ad valorem, transfer, franchise, real property, profits, payroll,
withholding, unemployment, excise, customs, duties and other taxes, fees, assessments and charges
of any kind whatsoever, together with any interest and any penalties and additions to tax with
respect thereto.
“Tax Returns” means any report, statement, form, return or other document or
information required to be supplied to a taxing authority in connection with Taxes.
“Third-Party Claim” has the meaning specified in Section 9.6(a).
“Title Commitments” has the meaning specified in Section 6.3(a).
“Title Company” means First American Title Insurance Company.
“Title Policy” has the meaning specified in Section 6.3(a).
“Title Requirements” means those matters shown on Schedule B-1 of the Title
Commitments, excluding any survey exceptions.
“Transactions” means the purchase by Buyer of the Assets from Seller and the other
related transactions contemplated by this Agreement.
“Transferred Employee” has the meaning specified in Section 6.10(a).
“Transition Services Agreement” has the meaning specified in Section 2.4(g).
“WARN Act” has the meaning specified in Section 6.10(c).
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ARTICLE XII
GENERAL
12.1 Assignment; Binding Effect; Amendment. This Agreement and the rights of the
parties under it may not be assigned (except by operation of law) by Seller without the prior
written consent of Buyer or by WSI or Buyer without the prior written consent of the Seller. This
Agreement shall be binding upon and shall inure to the benefit of the parties and their successors
and permitted assigns. This Agreement may be modified or amended only by a written instrument
executed by all parties.
12.2 Entire Agreement. This Agreement, together with its exhibits and schedules, is
the final, complete and exclusive statement and expression of the agreement among the parties with
relation to the subject matter of this Agreement. This Agreement supersedes, and cannot be varied,
contradicted or supplemented by evidence of, any prior or contemporaneous discussions,
correspondence, or oral or written agreements of any kind.
12.3 Counterparts. This Agreement may be executed simultaneously in two or more
counterparts, each of which shall be deemed an original and all of which together shall constitute
but one and the same instrument.
12.4 Notices.
(a) All notices or other communications required or permitted hereunder shall be in writing
and shall be deemed given and effective the day personally delivered 1 day after being sent by
overnight courier, subject to signature verification, and 3 Business Days after the deposit in the
U.S. mail of a writing addressed as below and sent first class mail, registered or certified,
return receipt requested. Any party may change the address for notice by notifying the other
parties of such change in accordance with this Section 12.4.
(b) Notices to WSI and/or Buyer shall be addressed to Buyer at:
Waste Services of Florida, Inc. 1100 Xxxxxxxxxxxxx Xxxx, Xxxxx 000 Xxxxxxxxxx, Xxxxxxx X0X 0X0 Xttention: Xxxx X. Xxxxxx Tel.: (000) 000-0000 Fax: (000) 000-0000 Email: xxxxxxx@xxxxxxxxxxxxxxxx.xxx |
(c) Notices to Seller shall be addressed to them at:
Republic Services, Inc. 18000 X. Xxxxxx Xxx Xxxxxxx, Xxxxxxx 00000 Xel: (000) 000-0000 Fax: (000) 000-0000 Attention: Xxxxxxx Xxxxxxx, Xxxxx Xxxxx and Xxx Xxxxxx |
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with a copy (which shall not constitute notice) to:
Akerman Senterfitt Onx X.X. Xxxxx Xxxxxx, Xxxxx 0000 Xxxxx, Xxxxxxx 00000 Xel: (000) 000-0000 Fax: (000) 000-0000 Attention: Xxxxxxxx X. Xxxxx and Xxxxxx X. Xxxxxx |
12.5 No Waiver. No delay of or omission in the exercise of any right, power or remedy
accruing to any party as a result of any breach or default by any other party under this Agreement
shall impair any such right, power or remedy, nor shall any such delay or omission be construed as
a waiver of or acquiescence in any such breach or as a waiver of or acquiescence in any similar
breach or default occurring later; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach of default occurring before or after such waiver.
12.6 Captions. The headings of this Agreement are inserted for convenience only and
shall not constitute a part of this Agreement or be used to construe or interpret any of its
provisions.
12.7 No Third-Party Beneficiaries. Except for the provisions of Article IX
relating to indemnified parties, nothing contained in this Agreement is intended or shall confer
upon any other Person, including, without limitation, any union or employee or former employee of
Seller, any legal or equitable right, benefit or remedy of any nature whatsoever, including,
without limitation, any rights of employment for any specified period, under or by reason of this
Agreement.
12.8 Severability. In case any provision of this Agreement shall be deemed to be
invalid, illegal or unenforceable, such provision shall, to the extent possible, be modified in
such manner as to be valid, legal and enforceable but so as most nearly to retain the intent of the
parties. If such modification is not possible, such provision shall be severed from this
Agreement. In either case, the validity, legality and enforceability of the remaining provisions
of this Agreement shall not in any way be affected or impaired thereby.
12.9 Construction. The parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement shall be construed as if drafted jointly by the
parties and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement. Any reference to any federal,
state, local or foreign statute shall be deemed to refer to such statute as amended and to all
rules and regulations promulgated thereunder, unless the context requires otherwise. The word
“include” or “including” means include or including, without limitation. All references in this
Agreement to Articles, Sections, Exhibits and Schedules shall be deemed references to articles and
sections of, and exhibits and schedules to, this Agreement, respectively, unless the context shall
otherwise require.
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ARTICLE XIII
DISPUTE RESOLUTION
13.1 General. Except with respect to disputes regarding the Actual True-Up Amount
(which shall be governed by Section 2.2(c)), and except as provided in Article IX,
the parties agree that any disputes arising out of or related in any way to this Agreement,
including a breach of this Agreement, shall be brought exclusively in the state or federal courts
located in Miami-Dade County in the State of Florida. By execution and delivery of this Agreement,
with respect to any dispute, each of the parties knowingly, voluntarily and irrevocably (a)
consents, for itself and in respect of its property, to the exclusive jurisdiction of these courts,
(b) waives any immunity or objection, including any objection to personal jurisdiction or the
laying of venue or based on the grounds of forum non conveniens, which it may have from or to the
bringing of the dispute in such jurisdiction, (c) waives any personal service of any summons,
complaint or other process that may be made by any other means permitted by the State of Florida,
(d) waives any right to trial by jury, (e) agrees that any such dispute will be decided by court
trial without a jury, (f) understands that it is giving up valuable legal rights under this
Section 13.1, including the right to trial by jury, and that it voluntarily and knowingly
waives those rights and (g) agrees that any party to this Agreement may file an original
counterpart or a copy of this Section 13.1 with any court as written evidence of the
consents, waivers and agreements of the parties set forth in this Section 13.1.
13.2 Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Florida, without giving effect to any choice or conflict of
law provision or rule (whether of the State of Florida or of any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State of Florida.
13.3 Attorneys’ Fees. Should any litigation or proceeding be commenced under this
Agreement, the successful party in such litigation or proceeding shall be entitled to recover, in
addition to such other relief as the court may award, its reasonable attorneys’ fees, expert
witness fees, litigation related expenses and court or other costs incurred in such litigation or
proceeding. For purposes of this clause, the term “successful party” means the net winner of the
dispute, taking into account the claims pursued, the claims on which the pursuing party was
successful, the amount of money sought, the amount of money awarded and offsets or counterclaims
pursued (successfully or unsuccessfully) by the other party. If a written settlement offer is
rejected and the judgment or award finally obtained is equal to or more favorable to the offeror than an offer made in writing to settle, the offeror is deemed
to be the successful party from the date of the offer forward.
{Signatures appear on the following pages}
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.
WSI AND BUYER: WASTE SERVICES, INC. |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Executive Vice President & Secretary | |||
WASTE SERVICES OF FLORIDA, INC. |
||||
By: | /s/ Xxxx X. Xxxxxx | |||
Name: | Xxxx X. Xxxxxx | |||
Title: | Vice President & Secretary | |||
SELLER: REPUBLIC SERVICES OF FLORIDA, LIMITED PARTNERSHIP |
||||
By: | Republic Services of Florida GP, Inc. | |||
Its: | General Partner | |||
By: | /s/ Xxx Xxxxxx | |||
Name: | Xxx Xxxxxx | |||
Title: | Vice President | |||
Solely for the purpose of Section 9.8 of this Agreement: REPUBLIC SERVICES, INC. |
||||
By: | /s/ Xxx Xxxxxx | |||
Name: | Xxx Xxxxxx | |||
Title: | Vice President and Assistant Secretary | |||
S-1