Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract: (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act); (ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries); (iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company); (iv) that is a Government Contract; (v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000; (vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations; (vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole; (viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company); (ix) any hedging, swap, derivative, or similar Contract; (x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole; (xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole; (xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000; (xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024; (xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions); (xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or (xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries. (b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 3 contracts
Sources: Merger Agreement (Tzuo Tien), Merger Agreement (Zuora Inc), Merger Agreement (Slaa Ii (Gp), L.L.C.)
Material Contracts. (a) Except (i) as filed as exhibits set forth in Schedule 3.10 and after giving effect to the Company SEC DocumentsRestructuring Transactions, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as none of the date hereof, neither the Company nor any Subsidiary of the Company ELN Companies is a party to or is otherwise bound by any Contractof the following Contracts relating to the Business (collectively, the “Material Contracts”), other than the CCC Agreement, which shall be of no further effect with regards to the Purchased ELN Companies as of the Closing:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any lease or sublease of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers any lease or sublease of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements personal property providing for annual payments in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$50,000;
(iii) that is with any Contract for the ten purchase of goods, services, materials, supplies or equipment providing for either (10A) largest vendors annual payments in excess of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 $100,000 or (as determined based on cost B) aggregate payments in excess of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$250,000;
(iv) that is a Government Contractany distribution, sales, advertising or agency Contract providing for either (A) annual payments to or by an ELN Company in excess of $100,000 or (B) aggregate payments to or by an ELN Company in excess of $250,000;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000any Contract granting any Person “most favoured nation” status or “exclusivity” or similar rights;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of Contract with any Person Governmental Authority providing for aggregate consideration either (A) annual payments in excess of $5,000,000 by the Company 100,000 or any (B) aggregate payments in excess of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations$250,000;
(vii) containing (A) a covenant any Contract for any partnership, joint venture, strategic alliance or other provision limiting in similar arrangement;
(viii) any Contract providing for the settlement of any material respect the ability of the claim against any ELN Company or relating to the Business;
(ix) any Subsidiary Contract relating to the acquisition or divestiture of the Company to compete or engage in any line of business or assets (whether by merger, sale of equity, sale of assets or otherwise) (1) that have obligations remaining to compete with be performed or liabilities continuing after the date of this Agreement other than in the Ordinary Course of Business, or (2) that took place during the one year period prior to the Closing Date;
(x) any Contract granting any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or refusal, right of first offer or similar right that limits the ability of the Company to purchase or acquire any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of material assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation business of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the an ELN Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (any Contract requiring an ELN Company to make any advance, loan, extension of credit or a covenantcapital contribution to, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or investment in, any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholePerson;
(xii) that is any Contract (A) evidencing or guaranteeing any Indebtedness (including all loan agreements, notes, bonds, debentures, indentures or guarantees), or (B) creating or granting a Company Real Property Lease with remaining obligations in excess Lien on the Shares or any assets or properties of $1,000,000an ELN Company, other than Permitted Liens;
(xiii) that involves a material joint ventureany Contract between an ELN Company, profit sharingon the one hand, partnership or similar agreement from which and the Company Seller, any Affiliate of the Seller or any director, manager or officer of its Subsidiaries recognized revenues in excess of $1,000,000 during an ELN Company, on the fiscal year ended January 31, 2024other hand;
(xiv) any license, sublicense or royalty agreement relating to any Intellectual Property, other than standard end-user license agreements relating to any “shrink wrap,” “click wrap” or “off the shelf” software that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)generally commercially available;
(xv) any stockholders’ agreement, proxy, voting trust agreement Contract that limits or registration rights agreement purports to limit the ability of an ELN Company (or similar agreements, arrangements or commitments relating to any equity securities would limit the ability of the Company Purchaser after the Closing) (A) to engage in any line of business, (B) to compete with any Person, (C) to operate in any geographic area, (D) to Solicit or accept business from the customers of any of its Subsidiaries Person or relating (E) to disposition, voting Solicit for employment or dividends with respect to hire any equity securities of the Company or any of its SubsidiariesPerson; or
(xvi) any other Contract of a type that is with an affiliate not covered by the other clauses of this Section 3.10(a) that (A) is not terminable on not more than 60 days’ notice and without the payment of any penalty by, or any other Person that would be required material consequence to, applicable ELN Company or (B) is material to be disclosed under Item 404 the operation of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesBusiness.
(b) Each The Seller has made available to the Purchaser a true, complete and correct copy of each Material Contract made in writing, along with accurate written descriptions in all material respects of the type described above in Section 4.15(a)each Material Contract made orally, whether or not set forth in Section 4.15(a) of the Company Disclosure Scheduleincluding all amendments thereto, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of other than the Material Contracts listed in Schedule 3.10 which are subject to confidentiality agreements but for which the Seller has provided written summaries that accurately describe all material terms of such Material Contracts.
(Ac) Each Material Contract (i) is a legal, valid and binding on the Company or obligation of the applicable Subsidiary of the Company, as the case may be, ELN Company and, to the Knowledge of the CompanySeller, each the other party parties thereto, and (Bii) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity effect in accordance with its terms and (iiiii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary upon consummation of the Company hasContemplated Transactions, andwill continue in full force and effect without penalty or other adverse consequence, subject to obtaining the consents and approvals, giving the notices or taking the other actions referred to in Schedule 3.4(b). None of the ELN Companies, the Seller or, to the Knowledge of the CompanySeller, none any other party to any Material Contract is in breach of the other parties thereto haveor default under, violated in any provision ofmaterial respect, or committed has provided or failed to perform received any act written notice alleging any breach of or default under, and no in any material respect, any Material Contract. No event or condition exists, which has occurred that (with or without notice, notice lapse of time or both) would constitute a material breach of or material default under, the provisions of under any Material Contract, except Contract in each case for those violations, acts (any material respect by the applicable ELN Company or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanySeller, neither the Company nor by any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectparty thereto.
Appears in 3 contracts
Sources: Purchase Agreement (Quebecor Media Inc), Purchase Agreement (Postmedia Network Canada Corp.), Purchase Agreement (Postmedia Network Canada Corp.)
Material Contracts. (a) Except (iSection 4.10(a) as filed as exhibits to of the Company SEC DocumentsDisclosure Schedule sets forth a true, (ii) for this Agreement complete and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as correct list of each of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party to or by which the Company is bound by any Contract:and which have not been entirely fulfilled or performed (such Contracts, collectively, the “Material Contracts”):
(i) all Contracts that is a “material contract” (as such term is defined contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)Membership Units or other Equity of the Company;
(ii) any Contract that is with by its terms requires the ten (10) largest customers payment by or on behalf of the Company and its Subsidiaries during in excess of $100,000 per annum or the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to delivery by the Company of goods or its Subsidiaries)services with a fair market value in excess of $100,000 per annum or provides for the Company to receive payments in excess of $100,000 per annum;
(iii) that is with all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ten Ordinary Course of Business) or advance to (10) largest vendors other than travel and entertainment advances to the employees of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into extended in the ordinary course Ordinary Course of businessBusiness), and other similar Contracts that are ancillary or investment in, any Person or any agreement relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company)investment in excess of $25,000;
(iv) any Contract that is (i) requires the Company to purchase any product or service in excess of $100,000 from a Government Contractthird party or (ii) requires that the Company deal exclusively with a third party in connection with the sale or purchase of any product or service;
(v) evidencing any Contract that relates to an acquisition or divestiture of material assets that contains covenants, indemnities or other contractual obligations that could impose a capital expenditure for which future payments are required in excess of $5,000,000Liability that is material to the Company;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to Contract under which the Company has any outstanding Indebtedness or its Subsidiaries have material continuing obligationsevidencing an Encumbrance on any property or asset of the Company, other than a Permitted Encumbrance;
(vii) containing all Contracts under which any Person (Aother than the Company) has directly or indirectly guaranteed Indebtedness of the Company in excess of $50,000;
(viii) any bonds or Contracts of Guarantee in which the Company acts as a covenant surety or guarantor with respect to any obligation (fixed or contingent) of another Person;
(ix) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement;
(x) all Contracts involving any resolution or settlement of any actual or threatened Action under which the Company has any obligation or Liability that will continue after the Closing Date;
(xi) any Contract limiting or restraining the Company or any successor thereto from engaging or competing in any manner, in any location or in any business;
(xii) all Affiliate Contracts;
(xiii) any Company IP Agreements as well as any Contract under which the Company is a party providing for the license of or settlement with respect to any Intellectual Property including, without limitation, the Company’s Intellectual Property (other provision limiting than commercially available software and hardware) and any Intellectual Property license agreements under which the Company is currently a licensee;
(xiv) any Contract concerning the acquisition, disposition, occupancy, management or operation of any Real Property owned, leased or used by the Company;
(xv) all collective bargaining agreements entered into by the Company;
(xvi) any Contract providing that the Company indemnify any Person in an amount that would be material to the Company, other than any such agreement entered into in the Ordinary Course of Business;
(xvii) any Contracts with any Governmental Authority to which the Company is a party;
(xviii) any Contracts that limit, in any material respect respect, the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person or in any geographic areaarea or during any period of time;
(xix) all (i) employment agreements (excluding, other for certainty, any employees who are employed at will) and (ii) Contracts with independent contractors or consultants (or similar arrangements) to which the Company is a party and which are not cancellable without material penalty or without more than ninety (90) days’ notice; and
(xx) any customary employee non-solicitation Contract to purchase, lease or no-hire clauses otherwise acquire the right to own, use or lease any property or assets, including such Contracts entered into by an Affiliate of the Company, for an amount in excess of $100,000, individually (in the ordinary course case of businessa lease, per annum) or $150,000 in the aggregate (B) “most favored nation”in the case of a lease, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits for the ability entire term of the Company or lease, not including any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or option term); and
(Dxxi) a minimum purchase, minimum volume, “earnout” or any other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, Contract that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, operation of the business of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) not otherwise disclosed pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsSection 4.10(a);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract The Company is in material compliance with the terms and provisions of each Material Contract. The Company, and to the Knowledge of the type described above Company, the other party to any Material Contract is not in Section 4.15(a)breach or default under any of its terms. The Company has not received notice of any breach, whether default or not notice of termination by any Person under any Material Contract. A true, complete and correct copy of each written Material Contract has been provided to Purchaser and a description of each verbal Material Contract is set forth in Section 4.15(a4.10(a) of the Company Disclosure Schedule, .
(c) Each Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (Ai) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, thereto in accordance with its respective terms and (Bii) in full force and effect, except . Each Material Contract (ior description) as may be limited by bankruptcy, insolvency, moratorium sets forth the entire agreement and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and understanding (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary complete description of the Company hasmaterial terms, andas applicable), to the Knowledge of between the Company, none of on one hand, and the other parties thereto havethereto, violated any provision ofon the other hand, or committed or failed with respect to perform any act under, and no the subject matter thereof. No event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute an event of default under any Material Contract or result in a breach of termination thereof or default under, would cause or permit the provisions acceleration or other changes of any Material Contract, except in each case for those violations, acts (right or failures to act) and defaults which, individually obligation or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as loss of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the benefit thereunder. The Company has received written notice of no reason to believe any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has (A) canceled or otherwise terminatedwill not fulfill its obligations thereunder in all material respects, or threatened in writing to cancel or otherwise to terminate, its relationship with and the Company has not received any notice of termination or intent to terminate by any Subsidiary party to any Material Contract.
(as applicabled) The Company has no Liability for the deferred purchase price of property, goods or services, whether connected or not to the acquisition of any business (earn-out or other similar type of payments) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectnoncompetition agreement.
Appears in 3 contracts
Sources: Membership Interest Purchase Agreement (Planet 13 Holdings Inc.), Membership Interest Purchase Agreement (Planet 13 Holdings Inc.), Membership Interest Purchase Agreement (Planet 13 Holdings Inc.)
Material Contracts. (a) Except Section 4.13(a) of the Target Disclosure Letter, and with respect to clause (ixvi) as filed as exhibits below, Section 4.12 of the Target Disclosure Letter, sets forth an accurate and complete list of the following Contracts to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, which Target or any of its Subsidiaries is a party or by which any of them is bound as of the date hereofhereof (collectively, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:“Material Contracts”):
(i) that is a “material contract” (as such term is defined all Contracts which contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)capital stock or other equity interests of Target or any of its Subsidiaries;
(ii) that is with all Contracts relating to capital expenditures or other purchases of material, supplies, equipment (including all Contracts to purchase containers, trailers or portable offices) or other assets or properties in excess of $250,000 individually, or $500,000 in the ten aggregate on an annual basis;
(10iii) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 all Contracts involving a loan (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than accounts receivable in the ordinary course of business, ) or advance to (other than advances and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable allowances to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors employees of the Company Target and any of its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into extended in the ordinary course of business), and other similar Contracts that are ancillary or investment in, any Person or any Contract relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by investment, in each case, in excess of $100,000 individually or $500,000 in the Company)aggregate;
(iv) that is a Government Contractall Contracts involving Indebtedness of Target or any of its Subsidiaries;
(v) evidencing all Contracts with customers pursuant to which a capital expenditure for which future payments are required customer leases or otherwise has possession of a container, trailer or portable office to the extent such Contract evidences quarterly revenue in excess of $5,000,000500,000;
(vi) relating to the disposition all Contracts granting or acquisition of evidencing a Lien on any business, equity, material properties or all or substantially all of the assets of Target or any Person for aggregate consideration of its Subsidiaries, other than a Permitted Lien;
(vii) any management service, consulting, financial advisory or any other similar type Contract and any Contracts with any investment or commercial bank and involving an annual amount in excess of $5,000,000 by 250,000;
(viii) all Contracts limiting the Company ability of Target or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person and, to the Knowledge of Target, any Contracts that would limit the ability of Parent or any of its Affiliates to engage in any geographic area, line of business or to compete with any Person after the Effective Time;
(ix) all Contracts (other than this Agreement and any customary employee nonagreement or instrument entered into pursuant to this Agreement) with (A) any Affiliate of Target, or (B) any current or former officer or director of Target or any of its Subsidiaries, but not including any Contracts with any former officer or director of Target or any of its Subsidiaries to the extent that Target and such Subsidiaries do not have any ongoing Liabilities under such Contracts;
(x) all Contracts (including letters of intent) involving the future disposition or acquisition of material assets or properties (including acquisitions or dispositions of containers, trailers or portable offices for a purchase price in excess of $100,000), or any merger, consolidation or similar business combination transaction, whether or not enforceable;
(xi) all Contracts involving any material joint venture, partnership, strategic alliance, shareholders’ agreement, co-solicitation marketing, co-promotion, co-packaging, joint development or no-hire clauses similar arrangement;
(xii) all Contracts involving any material resolution or settlement of any actual or threatened litigation, arbitration, claim or other dispute and involving an amount in excess of $100,000 (other than payments, discharges or satisfactions of workers’ compensation, auto insurance and general liability insurance claims);
(xiii) all Contracts involving a confidentiality, standstill or similar agreement or arrangement other than confidentiality agreements entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits business which would not limit the ability of Parent and its Subsidiaries to receive such information after the Company Effective Time;
(xiv) all Contracts involving payments of $250,000 or more, individually, to or from Target or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee which are not cancelable by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company Target or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
without penalty on ninety (xiv90) that is a settlement, conciliation days or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)less notice;
(xv) any stockholders’ agreement, proxy, voting trust agreement material licenses of Intellectual Property to or registration rights agreement from Target or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries (except for licenses of mass-marketed or relating to disposition, voting or dividends with respect to shrink-wrap software available on non-discriminatory terms);
(xvi) any equity securities of the Company or any of its SubsidiariesReal Property Lease; or
(xvixvii) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among pursuant to which any amount may become due and payable as a result of the Company and its wholly-owned Subsidiariestransactions contemplated hereby, including without limitation, any change of control payments or severance arrangements.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in on Section 4.15(a4.13(a) of the Company Target Disclosure Schedule, is referred Letter other than the Real Property Leases (or required to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all be set forth on Section 4.13(a) of the Material Contracts are Target Disclosure Letter) is in full force and effect and there exists no (Ai) valid and binding on the Company material default or the applicable Subsidiary event of the Company, as the case may be, anddefault by Target or any of its Subsidiaries or, to the Knowledge of the CompanyTarget, each any other party theretoto any such Material Contract with respect to any material term or provision of any such Material Contract, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notto the Knowledge of Target, individually event, occurrence, condition or in act (including the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary consummation of the Company hastransactions contemplated hereby) which, andwith the giving of notice, the lapse of time or the happening of any other event or condition, would become a material default or event of default by Target or any of its Subsidiaries or, to the Knowledge of the CompanyTarget, none any other party thereto, with respect to any material term or provision of any such Material Contract. Target has made available to Parent true and complete copies, including all amendments, of each Contract set forth on Section 4.13(a) of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which Target Disclosure Letter.
(with or without notice, lapse of time or bothc) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge As of the Companydate hereof, neither Target has not made any indemnification claim under the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSponsor Merger Agreement.
Appears in 3 contracts
Sources: Merger Agreement (Mobile Mini Inc), Merger Agreement (Mobile Services Group Inc), Merger Agreement (Mobile Storage Group Inc)
Material Contracts. (a) Except (i) as set forth in the SEC Reports filed as exhibits prior to the Company SEC Documentsdate of this Agreement, (ii) for in Schedule 4.15 or otherwise expressly provided in this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereofAgreement, neither the Company nor any Subsidiary of the Company Subsidiaries is a party to or is bound by any Contractby:
(i) that is a “any "material contract” " (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC);
(ii) that is with any contract or agreement for the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 purchase or lease (as determined based on revenue received lessee) of materials or personal property from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders supplier or statements for the furnishing of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable services to the Company or its Subsidiaries);
(iii) any Subsidiary that involves or is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid likely to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which involve future aggregate payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its the Subsidiaries outside of the ordinary course of business pursuant to which the Company more than (x) $300,000 or its Subsidiaries have material continuing obligations(y) $100,000 in any year;
(viiiii) containing any contract or agreement for the sale, license or lease (Aas lessor) a covenant or other provision limiting in any material respect the ability of by the Company or any Subsidiary of services, materials, products, supplies or other assets, owned or leased by the Company or the Subsidiaries, that involves or is likely to compete or engage in any line of business or involve future aggregate payments to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its the Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties more than (x) $300,000 or (Dy) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, $100,000 in each case, that is material to the Company and its Subsidiaries, taken as a whole;any year
(viiiiv) any contract, agreement or instrument relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, money of the Company or any Subsidiary Subsidiary;
(v) any non-competition agreement or any other agreement or obligation which purports to limit in any respect the manner in which, or the localities in which, the business of the Company or the Subsidiaries may be conducted;
(vi) any agreement with any present or former affiliates of the Company;
(vii) any partnership, joint venture, strategic alliance or cooperation agreement (or any guarantee by the Company or of its Subsidiaries agreement similar to any of the obligations of foregoing);
(viii) any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and voting or other agreement governing how any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Shares shall be voted;
(ix) any hedging, swap, derivative, or similar Contractagreement with any shareholders of the Company;
(x) that is a license any agreement with any Managed Provider, including without limitation any such management agreement, employee lease agreement, billing services agreement, option agreement or evidence of indebtedness; or
(or a covenant, consent xi) any contract or other rights in agreement which would prohibit or to use Intellectual Property) granted by materially delay the Company consummation of the Merger or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant transactions contemplated by this Agreement. The foregoing contracts and agreements to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted are parties or are bound are collectively referred to customers in the ordinary course of business, and/or (C) that is otherwise material to the herein as "Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Contracts."
(b) Each Company Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and(or, to the Knowledge of the Companyextent a Subsidiary is a party, each other party thereto, such Subsidiary) and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any and each Subsidiary of the have performed, in all material respects, all obligations required to be performed by them to date under each Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults whichwhere such noncompliance, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. The Company has, or has caused to be, made available to Parent or its counsel true and complete copies of the Company Material Adverse Effect andContracts requested by same and any and all ancillary documents pertaining thereto (including, but not limited to, all amendments and waivers). Except as otherwise set forth in Schedule 4.15(b), each Company Material Contract will not cease to be legal, valid, binding, enforceable and in full force and effect on terms identical to those currently in effect as a result of February 1, 2021, the consummation of the transactions contemplated by this Agreement (except to the Knowledge extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, fraudulent transfer, moratorium or other laws relating to or affecting creditors' rights generally and by general principles of equity), nor will the Companyconsummation of such transactions constitute a breach or default under such lease or sublease or otherwise give the landlord a right to terminate such lease or sublease. Except as set forth in Schedule 4.15(b), neither the Company nor any Subsidiary knows of, or has given or received notice of, any violation or default under (nor, to the knowledge of the Company, does there exist any condition which with the passage of time or the giving of notice or both would result in such a violation or default under) any Company Material Contract.
(c) Except as disclosed in the SEC Reports filed prior to the date of this Agreement or in Schedule 4.15 or as expressly provided for in this Agreement, neither the Company nor any of the Subsidiaries is a party to any oral or written (i) employment or consulting agreement that cannot be terminated on thirty days' or less notice, (ii) agreement with any officer or other key employee of the Company has received written notice or any of the Subsidiaries the benefits of which are contingent or vest, or the terms of which are materially altered, upon the occurrence of a transaction involving the Company or any the Subsidiaries of the nature contemplated by this Agreement, the Subscription Agreement or the Voting Agreement, (iii) agreement with respect to any officer or other key employee of the Company or any of the Subsidiaries providing any term of employment or compensation guarantee or (iv) stock or stock purchase plan (other than the Option Plans), any of the benefits of which will be increased, or the vesting of the benefits of which will be accelerated, by the occurrence of any of the foregoing. To transactions contemplated by this Agreement, the Knowledge Subscription Agreement or the Voting Agreement or the value of any of the Company, since February 1, 2021, no counterparty to benefits of which will be calculated on the basis of any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effecttransactions.
Appears in 3 contracts
Sources: Agreement and Plan of Merger (Warburg Pincus Equity Partners Lp), Agreement and Plan of Merger (Hilltopper Holding Corp), Merger Agreement (Centennial Healthcare Corp)
Material Contracts. (a) Except (iSchedule 4.19(a) as filed as of the Company Disclosure Letter, together with the lists of exhibits to contained in the Company SEC DocumentsDocuments and Schedule 4.10(a) and 4.10(l) listing material Company Plans, (ii) for this Agreement sets forth a true and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contractof:
(i) that is a each “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of under the Exchange Act);
(ii) each contract that is provides for the acquisition, disposition, license, use, distribution or outsourcing of assets, services, rights or properties (other than Oil and Gas Properties) with respect to which the ten (10) largest customers of Company reasonably expects that the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements will make annual payments in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$100,000,000;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) each contract relating to the disposition or acquisition Indebtedness (including commitments with respect thereto) of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside (whether incurred, assumed, guaranteed or secured by any asset) in excess of $100,000,000, other than agreements solely between or among the Company and its Subsidiaries;
(iv) each contract for lease of personal property or real property (other than Oil and Gas Properties) involving payments in excess of $100,000,000 in any calendar year or over the life of the ordinary course contract that are not terminable without penalty or other liability to the Company (other than any ongoing obligation pursuant to such contract that is not caused by any such termination) within ninety (90) days, other than contracts related to drilling rigs;
(v) each contract that is a non-competition contract or other contract that (A) purports to limit in any material respect either the type of business pursuant to in which the Company or its Subsidiaries have material continuing obligations;
(viior, after the Effective Time, Parent or its Subsidiaries) containing (A) a covenant may engage or other provision limiting the manner or locations in which any of them may so engage in any business (including any contract containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision), (B) could require the disposition of any material respect the ability assets or line of business of the Company or any Subsidiary of its Subsidiaries (or, after the Company to compete Effective Time, Parent or engage in any line of business its Subsidiaries) or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal prohibits or right of first offer or similar right that limits the ability rights of the Company or any of its Subsidiaries to make, sell or distribute any products or services, or use, transfer or distribute, or enforce any of their rights with respect to, any of their material assets;
(vi) each contract involving the pending acquisition or sale of (or option to purchase or sell, transfer, pledge or otherwise dispose of assets, rights ) any assets or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company for which the aggregate consideration (or the fair market value of such consideration, if non-cash) payable to or from the Company or any of its Subsidiaries exceeds $100,000,000, other than contracts involving the acquisition or sale of (or option to purchase or sell) Hydrocarbons in the Ordinary Course;
(vii) each material partnership, joint venture or limited liability company agreement, other than with arrangements exclusively among the Company and/or its wholly owned Subsidiaries and other than any customary joint operating agreements, unit agreements or participation agreements affecting the Oil and Gas Properties of the Company;
(viii) each joint development agreement, exploration agreement, participation, farmout, farmin or program agreement or similar contract (A) requiring the Company or any of its SubsidiariesSubsidiaries to make expenditures from and after January 1, 2024, that would reasonably be expected to be in excess of $150,000,000 in the aggregate or (B) to which the Company or any of its Subsidiaries is a party and that includes a third-party investment or funding commitment greater than $150,000,000 (such contract in the case of this subclause (B), a “Development Agreement”), other than, in each case, customary joint operating agreements and continuous development obligations under Oil and Gas Leases;
(ix) any contract (A) that provides for the sale by the Company or any of its Subsidiaries of Hydrocarbons or water (1) in excess of 35,000 barrels of oil equivalent of Hydrocarbons or water per day over a period of one (1) month (calculated on a yearly average basis) or (2) for a term greater than ten (10) years or (B) pursuant to which the Company reasonably expects that it will receive or make aggregate payments under in excess of $150,000,000 in any of the next three (3) succeeding fiscal years or over the life of the contract that, in the case of the foregoing subclauses (A) or (B), (x) has a remaining term of greater than ninety (90) days and does not allow the Company or such Subsidiary to terminate it without penalty to the Company or such Subsidiary within ninety (90) days and (y) provides for a “take-or-pay” clause or any similar prepayment obligation and acreage dedication, minimum volume commitments or capacity reservation fees to a gathering, transportation or other arrangement downstream of the wellhead, that cover, guaranty or commit volumes;
(x) each collective bargaining agreement with a labor union to which the Company is a party or bound;
(xi) each agreement under which the Company or any of its Subsidiaries has advanced or loaned any amount of money to any of its officers, directors, employees or consultants, in each case with a principal amount in excess of $120,000;
(xii) each contract for any Company Related Party Transaction; or
(xiii) each agreement that contains any “most favored nation” or most favored customer provision, call or put option, preferential right or rights of first or last offer, negotiation or refusal to which the Company or any of its Subsidiaries or any of their respective Affiliates is subject and that is material to the business of the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness , except for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to any agreement in which the Company or any Subsidiary received licensing revenues such provision is solely for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities benefit of the Company or any of its Subsidiaries; or
, (xviB) is with an affiliate customary royalty pricing provisions in Oil and Gas Leases or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act(C) customary preferential rights in joint operating agreements, other than any Contract solely among the Company and its wholly-owned Subsidiariesunit agreements or participation agreements.
(b) Each Contract of Collectively, the type described above in Section 4.15(a), whether contracts set forth or not required to be set forth in Section 4.15(a4.19(a) are herein referred to as the “Company Contracts.” A complete and correct copy of each of the Company Disclosure ScheduleContracts has been made available to Parent. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Company Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termslegal, all of the Material Contracts are (A) valid valid, binding and binding enforceable in accordance with its terms on the Company or the applicable Subsidiary and each of the Company, as the case may be, its Subsidiaries that is a party thereto and, to the Knowledge knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) subject, as may be limited by bankruptcyto enforceability, insolvency, moratorium and other similar Applicable Law affecting creditorsto Creditors’ rights generally and by general principles of equity and (ii) Rights. Except as would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , neither the Company nor any Subsidiary of the its Subsidiaries is in breach or default under any Company has, andContract nor, to the Knowledge knowledge of the Company, none of the is any other parties thereto have, violated party to any provision of, such Company Contract in breach or committed or failed to perform any act underdefault thereunder, and no event or condition existshas occurred that, which (with or without notice, the lapse of time or the giving of notice or both) , would constitute a breach default thereunder by the Company or its Subsidiaries, or, to the knowledge of or default underthe Company, any other party thereto. There are no disputes pending or, to the provisions knowledge of the Company, threatened with respect to any Company Contract and neither the Company nor any of its Subsidiaries has received any written notice of the intention of any Material other party to any Company Contract to terminate for default, convenience or otherwise any Company Contract, except nor to the knowledge of the Company, is any such party threatening to do so, in each case for those violations, acts (except as has not had or failures would not reasonably be expected to act) and defaults whichhave, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 3 contracts
Sources: Merger Agreement (Conocophillips), Merger Agreement (Marathon Oil Corp), Merger Agreement (Marathon Oil Corp)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $400,000 or more;
(B) any Contract that is reasonably likely to require either (x) annual payments to or from the Company and its Subsidiaries of more than $15 million or (y) aggregate payments to or from the Company and its Subsidiaries of more than $75 million;
(C) other than with respect to any partnership that is wholly owned by the Company or any wholly owned Subsidiary of the Company, any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material to the Company or any of its Subsidiaries or in which the Company owns more than a “material contract” 15% voting or economic interest, or any interest valued at more than $10 million without regard to percentage voting or economic interest;
(D) any Contract (other than among direct or indirect wholly owned Subsidiaries of the Company) relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset) in excess of $5 million;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act;
(F) any non-competition Contract or other Contract that (I) purports to limit in any material respect either the type of business in which the Company or any of its Affiliates may engage or the manner or locations in which any of them may so engage in any business, (II) could require the disposition of any material assets or line of business of the Exchange ActCompany or any of its Affiliates, (III) grants “most favored nation” status that, following the Merger, would apply to the Company or any of its Affiliates or (IV) prohibits or limits in any material respect the right of the Company or any of its Affiliates to make, sell or distribute any products or services;
(G) any Contract to which the Company or any of its Subsidiaries is a party containing a standstill or similar agreement pursuant to which the Company or any of its Subsidiaries has agreed not to acquire assets or securities of the other party or any of its Affiliates;
(H) any material Contract relating to the license of Intellectual Property (other than licenses for commercial off-the-shelf or shrink wrap software that has not been modified or customized);
(iiI) that is with any Contract between the ten (10) largest customers Company or any of its Subsidiaries and any director or officer of the Company and its Subsidiaries during or any Person beneficially owning five percent or more of the fiscal year ended January 31outstanding Shares, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsother than compensation or severance arrangements, data processing agreements, purchase orders confidentiality agreements or statements of work or invoices indemnification agreements entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiJ) that is any Contract (other than Contracts with the ten (10customers) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure providing for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 indemnification by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or Person, except for any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, such Contract that is (x) not material to the Company and its Subsidiaries, taken as a whole;
, and (viiiy) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers entered into in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;; and
(xiK) any Contract that is contains a license (put, call or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if similar right pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) any Person or assets that is have a settlement, conciliation fair market value or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration purchase price of more than $1,000,000 after 5 million (the date of this Agreement or Contracts described in clauses (zA) that subjects through (K), together with all exhibits and schedules to such Contracts, being the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Material Contracts”);.
(xvii) any stockholders’ agreementSubject to applicable Law, proxy, voting trust a true and complete copy of each Material Contract has previously been made available to Parent and each such Contract is a valid and binding agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any one of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of its Subsidiaries nor, to the Company has received written notice knowledge of any of the foregoing. To the Knowledge management of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in default or otherwise terminated, or threatened breach in writing to cancel or otherwise to terminate, its relationship with any material respect under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 3 contracts
Sources: Merger Agreement (Banta Corp), Merger Agreement (Banta Corp), Merger Agreement (RR Donnelley & Sons Co)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofAgreement Date, neither the Company nor any Subsidiary of the Company is not a party to or is bound by any Contract:
(i) that is would be required to be filed by the Company as a “material contract” (as such term is defined in contract pursuant to Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding contains any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant competition or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right agreement that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose compete in any line of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiariesbusiness, in each caseany geographic area or with any person;
(iii) that creates any partnership, that is joint venture or similar entity with respect to any material to business of the Company and its Subsidiaries, taken as a whole;
(viiiiv) relating to that would, individually or evidencing indebtedness for borrowed moneyin the aggregate, debt securitiesprevent, warrants materially delay or other rights to acquire any debt securities, of the Company or any Subsidiary of materially impede the Company, or any guarantee by ’s ability to consummate the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Transactions;
(ix) any hedging, swap, derivative, or similar Contract;
(xv) that is a license (or a covenantan indenture, consent credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues agreement providing for the fiscal year ended January 31, 2024 indebtedness in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeintercompany agreements;
(xivi) that is a license written contract (or a covenant, consent or other rights in or to use Intellectual Propertythan this Agreement) for the sale of Third Party Rights granted to any of its assets after the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 Agreement Date in excess of $1,000,000, and/or other than in the ordinary course of business consistent with past practice;
(Cvii) that is otherwise material to under which the Company and its the Company’s Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership are expected to make annual expenditures or similar agreement from which the Company or any of its Subsidiaries recognized receive annual revenues in excess of $1,000,000 during the current or a subsequent fiscal year ended January 31, 2024year;
(xivviii) that is containing a settlementright of first refusal, conciliation right of first negotiation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require right of first offer in favor of a party other than the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Subsidiaries;
(xvix) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of that obligates the Company or any to file a registration statement under the Securities Act of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries1933 which filing has not yet been made; or
(xvix) that is with an affiliate interest rate, equity or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
swap or derivative instrument. Each such contract described in clauses (bi)-(x) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.”
Appears in 3 contracts
Sources: Merger Agreement (COV Delaware Corp), Merger Agreement (Ev3 Inc.), Merger Agreement (Covidien PLC)
Material Contracts. (a) Except for Contracts set forth in Section 3.11(a) of the Holdings Disclosure Schedule (i) as filed as exhibits collectively, the "Material Contracts"), neither Holdings (with respect to the Company SEC Documents, (iiBusiness) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Transferred Company is a party to or is bound by any Contractby:
(i) any Contract that is provides for payment to a “material contract” (as such term is defined Transferred Company for the performance of services in Item 601(b)(10) an amount in excess of Regulation S-K of the Exchange Act)$1,000,000 annually;
(ii) that is with any Contract to be performed relating to capital expenditures (other than those provided for in the ten (10) largest customers Capital Expenditure Plans of the Company and its Subsidiaries during Business for 1999) in excess of $500,000 in any calendar year, or in the fiscal year ended January 31aggregate require expenditures in excess of $2,000,000;
(iii) any Contract not entered into the ordinary course of business, 2024 requiring payments by or to the Transferred Companies in excess of $1,000,000;
(as determined based on revenue received from such customers during such time periodiv) any Contract which contains restrictions with respect to payment of dividends or any other distribution in respect of the capital stock of a Transferred Company;
(v) any Contract relating to indebtedness for borrowed money in an amount in excess of $1,000,000 (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into trade payables in the ordinary course of business, intercompany indebtedness and leases for telephones, copy machines, facsimile machines and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesoffice equipment);
(iiivi) that is with the ten any lease (10or sublease) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors Real Property requiring payments by the Company during such time periodTransferred Companies in an amount in excess of $1,000,000 annually;
(vii) any loan or advance to (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than advances to employees in the ordinary course of businessbusiness in amounts not exceeding $1,000,000 in the aggregate), or investment in (other than investments in any Transferred Company), any Person, or any Contract relating to the making of any such loan, advance or investment;
(viii) any guarantee in respect of any indebtedness or obligation of any Person in an amount in excess of $1,000,000 (other than in the ordinary course of business and other similar Contracts that are ancillary than with respect to Contracts pursuant to which cost any indebtedness or obligation of goods and services is paid or payable by the any Transferred Company);
(ivix) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect Contract limiting the ability of the Company or any Subsidiary of the Transferred Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (any material amendment, modification or a covenant, consent or other rights supplement in or to use Intellectual Property) granted by the Company or respect of any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesforegoing.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a3.12(b) of the Company Holdings Disclosure Schedule, : (i) there is referred to herein as a “no pending default under or breach of any Material Contract.” Except for Material Contracts that have expired Contract by Holdings or terminated by their terms, all of the Material Contracts are (A) valid and binding on the any Transferred Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition existshas occurred that, which (with or without notice, the lapse of time or the giving of notice or both) , would constitute a default thereunder by Holdings or any Transferred Company party thereto, in any such case in which such default, breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults whichevent, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEffect on the Business; and (ii) no party to any such Material Contract has given written notice to Holdings or any Transferred Company of, or made a written claim against Holdings or any Transferred Company with respect to, any breach or default thereunder, in any such case, in which such breach or default, individually or in the aggregate, would have a Material Adverse Effect on the Business.
Appears in 2 contracts
Sources: Agreement and Plan of Merger and Reorganization (Fah Co Inc), Merger Agreement (Avis Rent a Car Inc)
Material Contracts. (a) Except (i) as Except for this Agreement and except for Contracts filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansReports, as of the date hereof, neither the Company nor any Subsidiary none of the Company or its Subsidiaries is a party to or is bound by any Contractby:
(iA) any Contract that is a “material contract” (as such term is defined in would be required to be filed by the Company pursuant to Item 601(b)(10) 4 of Regulation Sthe Instructions to Exhibits of Form 20-K of F under the Exchange Act);
(iiB) that is with any Contract involving the ten (10) largest customers payment or receipt of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 amounts by the Company or any of its Subsidiaries outside Subsidiaries, or relating to indebtedness for borrowed money or any financial guaranty, of the ordinary course of business pursuant to which the Company or more than RMB 50,000,000 in any calendar year on its Subsidiaries have material continuing obligationsface;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) any Contract that contains a right of first refusal or right of first offer put, call or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024any Person or assets that have a fair market value or purchase price of more than RMB 30,000,000;
(xivD) that is a settlementany Contract relating to the formation, conciliation creation, operation, management or similar control of any joint venture;
(E) any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require between the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement and any director or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities executive officer of the Company or any of its Subsidiaries Person beneficially owning five percent or relating to disposition, voting or dividends with respect to any equity securities more of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be outstanding Shares required to be disclosed under pursuant to Item 404 7B or Item 19 of Regulation SForm 20-K promulgated F under the Exchange Act, ; and
(F) any non-competition Contract or other than Contract that limits or purports to limit in any Contract solely among material respect the type of business in which the Company and or its wholly-owned Subsidiaries.
(b) Each Contract of Subsidiaries may engage, the type described above in Section 4.15(a), whether of goods or not set forth in Section 4.15(a) of services which the Company Disclosure Scheduleor its Subsidiaries may manufacture, produce, import, export, offer for sale, sell or distribute or the manner or locations in which any of them may so engage in any business or use their assets. Each such Contract described in clauses (A) through (F) above and each such Contract that would be a Material Contract but for the exception of being filed as an exhibit to the Company Reports is referred to herein as a “Material Contract”.”
(ii) Except for as is not, individually or in the aggregate, a Material Contracts that have expired or terminated by their termsAdverse Effect, all (A) each of the Material Contracts are (A) is valid and binding on the Company or the applicable Subsidiary of the Companyits Subsidiaries, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium effect subject to the Bankruptcy and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity Equity Exception; and (iiB) as would not, individually there is no breach or in the aggregate, reasonably be expected to have a Company default under any Material Adverse Effect. Neither Contracts by the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, its Subsidiaries and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with thereunder by the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSubsidiaries.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (China GrenTech CORP LTD), Merger Agreement (China GrenTech CORP LTD)
Material Contracts. (a) Except (i) as for the Original Merger Agreement, the Contracts filed as exhibits to the Company SEC DocumentsReports, (ii) for this Agreement and the other agreements entered into Contracts listed in connection with Subsections (i) through (xxi) of Section 3.16(a) of the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereofOriginal Execution Date, neither the Company nor any Subsidiary none of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business pursuant business) or advance to which (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries extended in the ordinary course of business), or investment in, any person or any Contract relating to the making of any such loan, advance or investment for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of its Subsidiaries have material continuing obligationsof more than US$5,000,000;
(v) any Contract (including so called take-or-pay or keep-well agreements) under which any person (other than the Company or any of its Subsidiaries) has directly or indirectly guaranteed Indebtedness of the Company or any of its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) containing any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(Aviii) any Contract for the acquisition, disposition, sale, transfer or lease (including leases in connection with financing transactions) of properties or assets of the Company or any of its Subsidiaries that have a covenant fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other provision limiting dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person in any geographic area, industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract as a result of the Original Merger Agreement, this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any customary employee non-solicitation payment in excess of US$5,000,000 to be made by the Company or no-hire clauses entered into any of its Subsidiaries in any calendar year or (B) the ordinary course value of businessthe outstanding receivables due to the Company and its Subsidiaries under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right pledging of first refusal or right of first offer or similar right that limits the ability share capital of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) issuance of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which guarantee by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Subsidiaries;
(xivxvi) that is any Contract providing for (A) a settlementlicense, conciliation covenant not to s▇▇ or similar Contract (x) with other right granted by any Governmental Authority entered into since February 1, 2021, (y) which would require Third Party under any Intellectual Property to the Company or any of its Subsidiaries Subsidiaries, (B) a license, covenant not to pay consideration of more than $1,000,000 after the date of this Agreement s▇▇ or (z) that subjects other right granted by the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Third Party under any Intellectual Property, (other than ordinary course confidentiality requirements or restrictions);
(xvC) an indemnity of any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or relating to dispositionviolation of any Intellectual Property right, voting or dividends with respect (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any equity securities person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the ordinary course of business;
(xvii) any Contract granting rights in respect of exclusivity, “most favored nation” or similar rights;
(xviii) any Contract between or among the Company or any of its Subsidiaries; or, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xvixix) is each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the equity interests (each, an affiliate “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Person Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed under Item 404 if the Form 20-F were filed as of Regulation S-K promulgated under the Exchange ActOriginal Execution Date); or
(xxi) any other Contract which, other than any if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract solely among described in clauses (i) to (xxi) and each such Contract that would be a Material Contract if it had not been filed as an exhibit to the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, SEC Reports is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither : (i) each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Company nor any Subsidiary Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company has, and, to the Knowledge knowledge of the Company, none of the other parties thereto haveno counterparty, violated any provision is or is alleged to be in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts ; (or failures to activ) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, neither the Company nor no person intends to terminate any Subsidiary Material Contract; and (v) none of the Company has received written notice execution of the Original Merger Agreement, the execution of this Agreement or the consummation of any Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the foregoing. To the Knowledge rights of the Company, since February 1, 2021, no counterparty to any Group Company under any Material Contract Contract. The Company has (A) canceled furnished or otherwise terminatedmade available to Parent true and complete copies of all Material Contracts, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Zhang Ray Ruiping), Agreement and Plan of Merger (eHi Car Services LTD)
Material Contracts. (a) Except (iSet forth in Schedule 3.14(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansis a list, as of the date hereof, neither the Company nor any Subsidiary of each of the Company following Contracts to which SPPR or any of its Affiliates is a party related to the Contributed Assets or is by which any of the Contributed Assets are bound by any (each a “Material Contract:”):
(i) any Contract related to the Contributed Assets that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K would limit the right of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company Partnership or any of its Subsidiaries to sellengage in or compete in any geographical area;
(ii) any Contract for Debt to which any of the Contributed Assets are bound;
(iii) any Contract for capital expenditures or the acquisition or construction of fixed assets requiring the payment of an amount in excess of $250,000;
(iv) any Contract relating to the acquisition or disposition of any assets or properties (whether by merger, transferconsolidation, pledge recapitalization, share exchange, sale of stock, sale of assets or otherwise, and whether through proceedings in bankruptcy or otherwise) entered into in the past five years requiring the payment of an amount in excess of $250,000;
(v) any Contract under which SPPR is lessor or lessee of any Real Property;
(vi) any Contract containing any preferential rights to purchase or similar rights relating to the Contributed Assets (other than the Omnibus Agreement);
(vii) any Contract the primary purpose of which is to require SPPR or Western to indemnify or otherwise dispose make whole any Person with an indemnification or make whole obligation having or reasonably expected to have a value in excess of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole$250,000;
(viii) relating to any other Contract (other than any Contract granting any Permits, servitudes, easements or evidencing indebtedness for borrowed moneyrights-of-way) materially affecting the ownership, debt securities, warrants use or other rights to acquire any debt securities, operation of the Company Contributed Assets, the loss of which could, individually or any Subsidiary of in the Companyaggregate, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)have a Material Adverse Effect;
(ix) any hedging, swap, derivative, or similar ContractContract with any Governmental Authority (other than Permits);
(x) that is a license any Contract (or group of related Contracts with a covenantsingle counterparty or, consent or other rights to Western’s Knowledge, Affiliated counterparties) not described in or to use Intellectual Propertyclause (i) granted by the Company or any Subsidiary through (ix), that as of the Company date hereof, is reasonably expected to Company Intellectual Property (A) on provide for revenues or commitments in an exclusive basis, (B) pursuant to which the Company or amount greater than $250,000 during any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;calendar year; and
(xi) that is a license any interest rate, commodity or currency protection agreement (or a covenantincluding any swaps, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basiscollars, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership caps or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionshedging obligations);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of SPPR and Western has made available to the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) Partnership a correct and complete copy of the Company Disclosure Schedule, is referred to herein as a “each Material Contract.” . Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect, each Material Contract is legal, valid and binding on and enforceable against SPPR or its Affiliates, as the case may be, and to Western’s Knowledge, the counterparty thereto. Neither Each Material Contract is in full force and effect, and none of SPPR or its Affiliates, as the Company nor any Subsidiary of the Company hascase may be, andor, to the Knowledge of the CompanyWestern’s Knowledge, none of the other parties thereto haveany counterparty thereto, violated any provision of, is in breach or committed or failed to perform any act under, default thereunder and no event has occurred that upon receipt of notice or condition exists, which (with or without notice, lapse of time or both) both would constitute a any breach of or default under, the provisions of any Material Contractthereunder, except in each case for those violations, acts (such breaches or failures to act) and defaults whichas would not, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect. None of SPPR or its Affiliates has given or received from any third party any written notice of any action or intent to terminate or amend in any material respect any Material Contract.
Appears in 2 contracts
Sources: Contribution, Conveyance and Assumption Agreement (Northern Tier Energy LP), Contribution, Conveyance and Assumption Agreement
Material Contracts. (a) Except (iSchedule 4.19(a) as filed as of the Company Disclosure Letter, together with the lists of exhibits to contained in the Company SEC Documents, (ii) for this Agreement sets forth a true and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contractof:
(i) that is a each “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of under the Exchange Act);
(ii) each contract that is provides for the acquisition, disposition, license, use, distribution or outsourcing of assets, services, rights or properties (other than Oil and Gas Properties) with respect to which the ten (10) largest customers of Company reasonably expects that the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements will make annual payments in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)$100,000,000;
(iii) each contract that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is constitutes a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) commitment relating to Indebtedness or the disposition or acquisition deferred purchase price of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 property by the Company or any of its Subsidiaries outside (whether incurred, assumed, guaranteed or secured by any asset) in excess of $100,000,000, other than agreements solely between or among the Company and its Subsidiaries;
(iv) each contract for lease of personal property or real property (other than Oil and Gas Properties) involving payments in excess of $100,000,000 in any calendar year or over the life of the ordinary course contract that are not terminable without penalty or other liability to the Company (other than any ongoing obligation pursuant to such contract that is not caused by any such termination) within sixty (60) days, other than contracts related to drilling rigs;
(v) each contract that is a non-competition contract or other contract that (A) purports to limit in any material respect either the type of business pursuant to in which the Company or its Subsidiaries have material continuing obligations;
(viior, after the Effective Time, Parent or its Subsidiaries) containing (A) a covenant may engage or other provision limiting the manner or locations in which any of them may so engage in any business (including any contract containing any area of mutual interest, joint bidding area, joint acquisition area, or non-compete or similar type of provision), (B) could require the disposition of any material respect the ability assets or line of business of the Company or any Subsidiary of its Subsidiaries (or, after the Company to compete Effective Time, Parent or engage in any line of business its Subsidiaries) or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal prohibits or right of first offer or similar right that limits the ability rights of the Company or any of its Subsidiaries to make, sell or distribute any products or services, or use, transfer or distribute, or enforce any of their rights with respect to, any of their material assets;
(vi) each contract involving the pending acquisition or sale of (or option to purchase or sell, transfer, pledge or otherwise dispose ) any material amount of assets, rights the assets or properties of the Company, taken as a whole, other than contracts involving the acquisition or sale of (or option to purchase or sell) Hydrocarbons in the Ordinary Course;
(vii) each material partnership, joint venture or limited liability company agreement, other than any customary joint operating agreements, unit agreements or participation agreements affecting the Oil and Gas Properties of the Company;
(viii) each joint development agreement, exploration agreement, participation, farmout, farmin or program agreement or similar contract requiring the Company or any of its Subsidiaries to make expenditures from and after January 1, 2020 that would reasonably be expected to be in excess of $100,000,000 in the aggregate, other than customary joint operating agreements and continuous development obligations under Oil and Gas Leases;
(ix) any contract (A) that provides for the sale by the Company or any of its Subsidiaries of Hydrocarbons (1) in excess of 20,000 barrels of oil equivalent of Hydrocarbons per day over a period of one month (calculated on a yearly average basis) or (D2) for a minimum purchaseterm greater than ten (10) years or (B) which the Company reasonably expects that it will make aggregate payments in excess of $100,000,000 in any of the next three succeeding fiscal years or over the life of the contract that, in the case of (A) or (B), (x) has a remaining term of greater than sixty (60) days and does not allow the Company or such Subsidiary to terminate it without penalty to the Company or such Subsidiary within 60 days and (y) provides for a “take-or-pay” clause or any similar prepayment obligation and acreage dedication, minimum volumevolume commitments or capacity reservation fees to a gathering, transportation or other arrangement downstream of the wellhead, that cover, guaranty or commit volumes;
(x) each collective bargaining agreement to which the Company is a party or is subject;
(xi) each agreement under which the Company or any of its Subsidiaries has advanced or loaned any amount of money to any of its officers, directors, employees or consultants, in each case with a principal amount in excess of $120,000;
(xii) each contract for any Company Related Party Transaction; or
(xiii) each agreement that contains any “earnoutmost favored nation” or most favored customer provision, call or put option, preferential right or rights of first or last offer, negotiation or refusal, in each case other contingent, deferred or fixed payment obligation than those contained in (A) any agreement in which such provision is solely for the benefit of the Company and or any of its Subsidiaries, (B) customary royalty pricing provisions in each caseOil and Gas Leases or (C) customary preferential rights in joint operating agreements, that unit agreements or participation agreements affecting the business or the Oil and Gas Properties of the Company or any of its Subsidiaries, to which the Company or any of its Subsidiaries or any of their respective Affiliates is subject, and is material to the business of the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of Collectively, the type described above in Section 4.15(a), whether or not contracts set forth in Section 4.15(a4.19(a) are herein referred to as the “Company Contracts.” A complete and correct copy of each of the Company Disclosure ScheduleContracts has been made available to Parent. Except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect, each Company Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termslegal, all of the Material Contracts are (A) valid valid, binding and binding enforceable in accordance with its terms on the Company or the applicable Subsidiary and each of the Company, as the case may be, its Subsidiaries that is a party thereto and, to the Knowledge knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) subject, as may be limited by bankruptcyto enforceability, insolvency, moratorium and other similar Applicable Law affecting creditorsto Creditors’ rights generally and by general principles of equity and (ii) Rights. Except as would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , neither the Company nor any Subsidiary of the its Subsidiaries is in breach or default under any Company has, andContract nor, to the Knowledge knowledge of the Company, none of the is any other parties thereto have, violated party to any provision of, such Company Contract in breach or committed or failed to perform any act underdefault thereunder, and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach default thereunder by the Company or its Subsidiaries, or, to the knowledge of or default underthe Company, any other party thereto. There are no disputes pending or, to the provisions knowledge of the Company, threatened with respect to any Company Contract and neither the Company nor any of its Subsidiaries has received any written notice of the intention of any Material other party to any Company Contract to terminate for default, convenience or otherwise any Company Contract, except nor to the knowledge of the Company, is any such party threatening to do so, in each case for those violations, acts (except as has not had or failures would not reasonably be expected to act) and defaults whichhave, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Conocophillips), Merger Agreement (Concho Resources Inc)
Material Contracts. (a) Except (i) as This Agreement, the Company Benefit Plans, the Contracts filed with the SEC as exhibits to the Company Filed SEC Documents, and those Contracts listed in Section 4.19 of the Company Disclosure Letter (iisuch contracts, collectively, the “Company Material Contracts”) for this Agreement and constitute all of each of the other agreements entered into in connection with following Contracts, whether written or oral (without duplication), that the transactions contemplated hereby and (iii) for Company Employee Plans, or any of its Subsidiaries is a party to or bound by as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
: (i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
SEC) of the Company; (ii) that is any employment, severance or consulting Contract or offer letter with the ten (10) largest customers an employee or former employee, officer or director of the Company and its Subsidiaries during or any Subsidiary of the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements Company that will require the payment of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to amounts by the Company or its Subsidiaries);
any Subsidiary of the Company, as applicable, after the date hereof in excess of $200,000 per annum, other than those employment agreements, offer letters and/or employment contracts that are terminable at-will by the Company or a Subsidiary, as applicable, on no more than one month’s notice or the minimum required notice period under applicable law; (iii) that is any collective bargaining Contract, or any other agreement or work rule or practice with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31any labor union, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders labor organization or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
works council; (iv) that is a Government Contract;
(v) evidencing a any Contract for capital expenditure for expenditures or the acquisition or construction of fixed assets which requires aggregate future payments are required in excess of $5,000,000;
; (viv) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) Contract containing (A) a covenant or other provision limiting in any material respect the ability covenants of the Company or any Subsidiary of the Company to compete indemnify or engage hold harmless another Person or group of Persons, unless such indemnification or hold harmless obligation to such Person, or group of Persons, as the case may be, would not reasonably be expected to exceed a maximum of $2,000,000; (vi) any Contract that limits or purports to limit, in any line of business or to compete with any Person in any geographic areamaterial respect, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries or Affiliates (including, following the Merger, Parent or any of its Subsidiaries or Affiliates, including the Surviving Corporation) to sellengage in any line of business or compete with or obtain products, transfercommodities or services in any geographic area; (vii) any license, pledge royalty Contract or other Contract with respect to Intellectual Property which, pursuant to the terms thereof, requires payments by the Company or any Subsidiary of the Company in excess of $500,000 per annum; (viii) any Contract pursuant to which the Company or any Subsidiary of the Company has entered into a partnership or joint venture with any other Person; (ix) any indenture, mortgage, loan, guarantee or credit Contract under which the Company or any Subsidiary of the Company has outstanding indebtedness or any outstanding note, bond, indenture or other evidence of indebtedness for borrowed money or otherwise dispose or any guaranteed indebtedness for money borrowed by others, in each case, for or guaranteeing an amount in excess of assets$5,000,000, rights other than any such indebtedness between the Company (whether as creditor or properties debtor) and any wholly owned Subsidiary of the Company or between any wholly owned Subsidiaries of the Company; (x) any Contract under which the Company or any Subsidiary of the Company is (A) a lessee of real property, (B) a lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by a third Person, (C) a lessor of real property, or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation lessor of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of tangible personal property owned by the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance case which requires annual payments in excess of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
$500,000; (ixxi) any hedging, swap, derivative, or similar Contract;
(x) that is Contract other than a license (or a covenant, consent or other rights in or to use Intellectual Property) granted Company Benefit Plan which requires payments by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, 500,000 per annum containing “change of control” or similar provisions; (xii) all sole source or material limited source supply agreements; (xiii) any Contract (other than non-exclusive licenses granted to customers Contracts of the type described in the ordinary course of business, and/or subclauses (Ci) through (xii) above) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (involves aggregate payments by or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company 500,000 per annum; and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves any Contract the termination or breach of which, or the failure to obtain consent in connection with the transactions contemplated hereby in respect of which, would have or reasonably be expected to have, individually or in the aggregate, a material joint venture, profit sharing, partnership Company Material Adverse Effect. The Company has delivered or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries made available to pay consideration of more than $1,000,000 after Parent prior to the date of this Agreement or (z) that subjects the complete and correct copies of each Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities Material Contract listed in Section 4.19 of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesDisclosure Letter.
(b) (i) Each Company Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary and any of the Company, as the case may be, and, its Subsidiaries to the Knowledge of the Company, each other extent such Subsidiary is a party thereto, as applicable, and (B) in full force and effect, except (i) as may where the failure to be limited by bankruptcyvalid, insolvencybinding and in full force and effect, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, either individually or in the aggregate, would not have or reasonably be expected to have a Company Material Adverse Effect. Neither , (ii) the Company nor any Subsidiary and each of the its Subsidiaries has in all material respects performed all obligations required to be performed by it to date under each Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violationswhere such noncompliance, acts (or failures to act) and defaults which, either individually or in the aggregate, would not have or reasonably be expected to have a Company Material Adverse Effect andEffect, as of February 1, 2021, to the Knowledge of the Company, and (iii) neither the Company nor any Subsidiary of the Company its Subsidiaries has received written notice of any the existence of any, and to the knowledge of the foregoing. To Company there exits no, event or condition which constitutes, or, after notice or lapse of time or both, will constitute, a material default on the Knowledge part of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that its Subsidiaries under any such counterparty presently engages Company Material Contract, except where such default, either individually or in or presently conducts with the Company and its Subsidiaries other thanaggregate, in each case, as would not have or reasonably be expected to have a Company Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Thermo Fisher Scientific Inc.), Agreement and Plan of Merger (Dionex Corp /De)
Material Contracts. (a) Except (i) as for this Agreement, the Contracts filed as exhibits to the Company SEC DocumentsReports, (ii) for this Agreement and the other agreements entered into Contracts listed in connection with Subsections (i) through (xx) of Section 3.16(a) of the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither the Company nor any Subsidiary none of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business pursuant business) or advance to which (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries extended in the ordinary course of business), or investment in, any person or any Contract relating to the making of any such loan, advance or investment for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of its Subsidiaries have material continuing obligationsof more than US$5,000,000;
(v) any Contract (including so called take-or-pay or keep-well agreements) under which any person (other than the Company or any of its Subsidiaries) has directly or indirectly guaranteed Indebtedness of the Company or any of its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) containing any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(Aviii) any Contract for the acquisition, disposition, sale, transfer or lease (including leases in connection with financing transactions) of properties or assets of the Company or any of its Subsidiaries that have a covenant fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other provision limiting dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person in any geographic area, industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract as a result of this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any customary employee non-solicitation payment in excess of US$5,000,000 to be made by the Company or no-hire clauses entered into any of its Subsidiaries in any calendar year or (B) the ordinary course value of businessthe outstanding receivables due to the Company and its Subsidiaries under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right pledging of first refusal or right of first offer or similar right that limits the ability share capital of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) issuance of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which guarantee by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Subsidiaries;
(xivxvi) that is any Contract providing for (A) a settlementlicense, conciliation covenant not to s▇▇ or similar Contract (x) with other right granted by any Governmental Authority entered into since February 1, 2021, (y) which would require Third Party under any Intellectual Property to the Company or any of its Subsidiaries Subsidiaries, (B) a license, covenant not to pay consideration of more than $1,000,000 after the date of this Agreement s▇▇ or (z) that subjects other right granted by the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Third Party under any Intellectual Property, (other than ordinary course confidentiality requirements or restrictions);
(xvC) an indemnity of any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or relating to dispositionviolation of any Intellectual Property right, voting or dividends with respect (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any equity securities person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the ordinary course of business;
(xvii) any Contract granting rights in respect of exclusivity, “most favored nation” or similar rights;
(xviii) any Contract between or among the Company or any of its Subsidiaries; or, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xvixix) is each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the equity interests (each, an affiliate “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Person Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed under Item 404 if the Form 20-F were filed as of Regulation S-K promulgated under the Exchange Actdate hereof); or
(xxi) any other Contract which, other than any if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract solely among described in clauses (i) to (xxi) and each such Contract that would be a Material Contract if it had not been filed as an exhibit to the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, SEC Reports is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither : (i) each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Company nor any Subsidiary Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company has, and, to the Knowledge knowledge of the Company, none of the other parties thereto haveno counterparty, violated any provision is or is alleged to be in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts ; (or failures to activ) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, no person intends to terminate any Material Contract; and (v) neither the Company execution of this Agreement nor the consummation of any Subsidiary of the Company has received written notice of Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the foregoing. To the Knowledge rights of the Company, since February 1, 2021, no counterparty to any Group Company under any Material Contract Contract. The Company has (A) canceled furnished or otherwise terminatedmade available to Parent true and complete copies of all Material Contracts, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Zhang Ray Ruiping), Agreement and Plan of Merger (eHi Car Services LTD)
Material Contracts. (a) Except (i) Except as filed as exhibits to set forth in Schedule 5.1(j)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $15,000,000 or more;
(B) any agreement or agreements involving more than $5,000,000 individually or $10,000,000 in the aggregate to acquire (I) a License, or an interest in an entity holding a License, that is upon acquisition by the Company would become a “Communications License or (II) any interest in an entity that holds a License that upon acquisition of such entity by the Company would become a Foreign License;
(C) any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material contract” to the Company or any of its Subsidiaries or in which the Company or any of its Subsidiaries owns any interest valued at more than $10,000,000 without regard to percentage voting or economic interest (unless pursuant to such agreement or arrangement the Company and its Subsidiaries do not have a future funding obligation reasonably likely to require funding of more than $15,000,000 in the aggregate);
(D) any Contract (other than among direct or indirect wholly-owned Subsidiaries of the Company) relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset) in excess of $50,000,000;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(iiF) any non-competition Contract or other Contract that is with (I) purports to limit in any material respect either the ten type of business in which the Company or its Subsidiaries (10or, after the Effective Time, Parent or its Affiliates) largest customers may engage or the manner or locations in which any of them may so engage in any business or (II) could require the disposition of any material assets or line of business of the Company and or its Subsidiaries during or, after the fiscal year ended January 31Effective Time, 2024 Parent or its Affiliates;
(as determined based on revenue received from such customers during such time periodG) any Contract (excluding other than (I) a Contract with respect to compensation or similar arrangements not involving a director of the Company or one of the Section 16 Officers and (II) any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices Contract entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by between the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company and any director or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability officer of the Company or any Subsidiary Person beneficially owning, as of the Company to compete date hereof, five percent or engage in more of the outstanding Shares;
(H) any line of business or to compete with any Person in any geographic areaContract that contains a put, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer call or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) any Person or assets that is have a settlement, conciliation fair market value or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration purchase price of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);25,000,000; and
(xvI) any stockholders’ agreementother Contract or group of Contracts with a single counterparty that, proxy, voting trust agreement if terminated or registration rights agreement or similar agreements, arrangements or commitments relating subject to a default by any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notwould, individually or in the aggregate, reasonably be expected to have result in a Company Material Adverse Effect. Neither Effect (the Company nor any Subsidiary Contracts described in clauses (A) – (I), together with all exhibits and schedules to such Contracts, being the “Material Contracts”).
(ii) A true and complete copy of each Material Contract has previously been delivered or made available to Parent (subject to applicable confidentiality restrictions) and each such Contract is a valid and binding agreement of the Company hasor one of its Subsidiaries, and, to as the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act undercase may be, and no event or condition existsis in full force and effect, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of its Subsidiaries nor, to the knowledge of the Company has received written notice of any of the foregoing. To the Knowledge officers of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in material default or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with breach under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Merger Agreement (SBC Communications Inc), Merger Agreement (At&t Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.17 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Seller Disclosure Schedule sets forth as of the date hereof, neither the Company nor any Subsidiary of this Agreement a true and complete list of the Company following Contracts (other than purchase orders and invoices, Benefit Plans and Compensation Agreements) to which any of the Transferred Entities is a party to or is bound by any Contract:(the “Material Contracts”):
(i) that is a “material contract” (as such Contracts involving payments by the Transferred Entities of more than $250,000 per year or $2,000,000 over the term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Contract, or having a term of more than four (4) years and not terminable within 180 days;
(ii) that is with Contracts requiring the ten (10) largest customers Transferred Entities to provide more than $250,000 of services per year or $2,000,000 of services over the term of the Company Contract, or that are anticipated to generate, individually, revenue for any Transferred Entity of more than $1,000,000 in 2022 or 2023;
(iii) any Contract containing any future capital expenditure obligations of the Transferred Entities (or otherwise relating to the Business) in excess of $250,000;
(iv) Contracts evidencing Indebtedness for borrowed money of any Transferred Entity with a principal amount greater than $1,000,000;
(v) Contracts requiring any Transferred Entity to pay, perform, discharge or otherwise guarantee any Indebtedness of any other Person (other than a Transferred Entity) with a principal amount greater than $1,000,000;
(vi) any joint venture, partnership or other similar agreement involving co-investment between any Transferred Entity and its Subsidiaries during a third party;
(vii) Contracts for the fiscal year ended January 31sale, 2024 (as determined based on revenue received from such customers during such time period) (excluding transfer or other disposition of any non-disclosure agreementsassets of any Transferred Entity involving payments of more than $1,000,000, data processing agreements, purchase orders or statements other than sales of work or invoices entered into inventory in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)business consistent with past practice;
(iiiviii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) Contract relating to the acquisition or disposition or acquisition of any businessbusiness (whether by merger, equitysale of stock, sale of assets or otherwise) under which the Transferred Entities have a continuing obligation with respect to an “earn out,” contingent purchase price, or all similar contingent payment obligation that is reasonably expected to be $250,000 or substantially all of the assets of any Person for aggregate consideration greater in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;amount; and
(viiix) any Contract containing (A) a covenant covenants that would restrict or other provision limiting limit in any material respect the ability of the Company or any Subsidiary of Transferred Entities after the Company Closing to compete or engage in any line of business the Business or compete with respect to compete the Business with any Person or in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Sellers have made available to Purchaser true, correct and complete copies of each Material Contract and all amendments related thereto. Each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or obligation of the applicable Subsidiary of the Company, as the case may beTransferred Entities, and, to the Knowledge knowledge of the CompanySellers, of each other party counterparty thereto, and (B) is in full force and effect, and no Transferred Entity, or, to the knowledge of Sellers, other party thereto is in breach of, or in default under, any such Material Contract, and no event has occurred that with notice or lapse of time or both would constitute such a breach or default thereunder by any of the Transferred Entities, or, to the knowledge of Sellers, any other party thereto, except (i) as may for such failures to be limited by bankruptcyvalid, insolvencybinding or in full force and effect and such breaches, moratorium defaults or events that have not had and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Ambipar Emergency Response), Purchase and Sale Agreement (Ambipar Emergency Response)
Material Contracts. (a) Except (i) as filed as exhibits to Neither the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection nor any of its Subsidiaries is a party to any Contract required to have been filed with the transactions contemplated hereby and SEC by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act that has not been so filed.
(iiib) for Section 2.7(b) of the Company Employee PlansDisclosure Schedule lists, as of the date hereofof this Agreement, neither the following types of contracts and agreements to which the Company nor or any Subsidiary of its Subsidiaries is a party (such contracts and agreements as are required to be set forth on Section 2.7(b) of the Company is a party to or is bound by any Contract:Disclosure Schedule being the “Material Contracts”):
(i) that each contract and agreement (A) with consideration paid or payable to the Company or any of its Subsidiaries of more than $100,000, in the aggregate, and (B) with suppliers to the Company or any of its Subsidiaries for expenditures paid or payable by the Company or any of its Subsidiaries of more than $100,000, in the aggregate, in each case over the twelve (12)-month period ending December 31, 2022;
(ii) each Advisory Contract or other investment advisory, asset management or similar agreements entered into by the Company and its Subsidiaries, providing for revenues in excess of $100,000 per annum;
(iii) all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising contracts and agreements to which the Company or any of its Subsidiaries is a party that are material to the business of the Company;
(iv) all Service Agreements and management contracts, including any contracts involving the payment of royalties or other amounts calculated based upon the revenues or income of the Company or any of its Subsidiaries or income or revenues related to any Product of the Company or any of its Subsidiaries to which the Company or any of its Subsidiaries is a party;
(v) all Contracts providing for the development of any software or Intellectual Property Rights, independently or jointly, either by or for the Company or any of its Subsidiaries (other than employee invention assignment agreements and consulting agreements with authors on the Company’s or any of its Subsidiaries’ standard form of agreement);
(vi) all Contracts evidencing Indebtedness with a principal amount, or involving obligations, in excess of $100,000;
(vii) all partnership, joint venture, property management, profit sharing, carry interest or similar Contracts;
(viii) all Contracts with any Governmental Authority to which the Company or any of its Subsidiaries is a party, other than any Company Permits;
(ix) all Contracts that limit, or purport to limit, the ability of the Company or any of its Subsidiaries to compete in any line of business or with any person or entity or in any geographic area or during any period of time or to hire or retain any person;
(x) all Contracts that result in any person or entity holding a power of attorney from the Company or any of its Subsidiaries that relates to the Company and its Subsidiaries or their respective businesses;
(xi) all leases or master leases of personal property reasonably likely to result in annual payments of $50,000 or more in a twelve (12)-month period;
(xii) Contracts which involve the license or grant of rights to Company Owned IP by the Company or any of its Subsidiaries, but excluding any nonexclusive licenses (or sublicenses) of Company Owned IP granted to the Company’s clients in the ordinary course of business that are substantially in the same form as the Company’s or its Subsidiaries’ standard form Advisory Contracts as have been provided to Purchaser; and
(xiii) any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, contract that is material to the Company and its Subsidiaries, taken as a whole;.
(viiii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that Each Material Contract is a license (or a covenantlegal, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company valid and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities binding obligation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, party thereto and, to the Knowledge of the Company, each is enforceable in accordance with its terms against the other party parties thereto, there are no grounds for termination, rescission or repudiation of any Material Contract, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither neither the Company nor any Subsidiary of its Subsidiaries is in material breach or violation of, or material default under, any Material Contract nor has any Material Contract been canceled by the Company has, and, other party; (ii) to the Knowledge of the Company, none of the no other parties thereto have, violated any provision party is in material breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of any Material Contract; and (iii) the Company or any of its Subsidiaries have not received any written, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor oral claim of default under any Subsidiary of the such Material Contract. The Company has received written notice furnished or made available to Purchaser true and complete copies of all Material Contracts without redaction, including amendments thereto that are material in nature. The Company is not renegotiating or offering to renegotiate any of the foregoing. To the Knowledge of Contract with a Top Customer in a way that would be materially adverse to the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Second Tranche Stock Purchase Agreement (Siebert Financial Corp), Stock Purchase Agreement (Siebert Financial Corp)
Material Contracts. (a) Except (i) as filed as exhibits to set forth in Section 3.13 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither there are no Contracts included in the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
Purchased Assets (i) containing covenants that is limit or purport to limit the ability of a “material contract” (as such term is defined Seller or Transferred Entity to compete in Item 601(b)(10) any line of Regulation S-K business or with any Person, industry or geographical area or during any period of time, that relates to the Exchange Act);
Business; (ii) which expressly creates a partnership or joint venture or similar arrangement that is with relates to the ten (10) largest customers operation of the Company Business; (iii) for the sale or exclusive license of any material assets of the Business other than Inventory or Products or for the furnishing of services by a Seller or Transferred Entity other than in the ordinary course of business consistent with past practice; (iv) which is a collective bargaining agreement, employee association agreement or other agreement with any labor union, employee representative group, works council or similar collection of employees; (v) between or among a Seller or Transferred Entity, on the one hand, and its Subsidiaries during one or more Affiliates of a Seller (other than another Seller or Transferred Entity), on the other hand; (vi) under which the Business has made payments in excess of $2,000,000 in the last fiscal year ended January 31, 2024 or anticipate making payments in excess of $2,000,000 in the current fiscal year (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements invoices entered into in the ordinary course of work business and ordinary course trade payables and trade receivables negotiated on an arms’ length basis); (vii) involves the sale, development, use or license of any Intellectual Property that is primarily used in the conduct of and material to the Business other than non-exclusive licenses entered into in the ordinary course of business; (viii) under which the Business received payments in excess of $2,000,000 in the last fiscal year or anticipates receiving payments in excess of $2,000,000 in the current fiscal year (other than sales orders or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid ); or payable (ix) containing any “take-or-pay” or “requirements” provision requiring any Seller (relating to the Company Business) or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost any Transferred Entity to make a minimum payment for or purchase a minimum quantity of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreementsfrom third party suppliers irrespective of usage, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar except for Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
under this clause (ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in which require payments by or to use Intellectual Property) granted by the Company or any Subsidiary Business of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more less than $1,000,000 after the date of this Agreement or per annum. Each such contract described in clauses (zi)-(ix) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all ”
(b) As of the date hereof (i) Each Seller and Transferred Entity is not in material breach of or default under any Material Contracts are (A) valid and binding on the Company Contract to which such Seller or the applicable Subsidiary of the Company, as the case may be, Transferred Entity is a party and, to the Knowledge of the CompanyHoneywell, each no other party theretoto any Material Contract is in breach thereof or default thereunder, (ii) o the Knowledge of Honeywell, neither any Seller nor any Transferred Entity has received any written notice or claim of material default under any Material Contract or, as of the date of this Agreement, any written notice of an intention to terminate or challenge the validity or enforceability of any Material Contract and to the Knowledge of Honeywell, no such action is threatened, and (Biii) to the Knowledge of Honeywell, no event has occurred that, with or without notice or lapse of time or both, would result in full force a material breach or default under any Material Contract by Honeywell. Sellers have Made Available to Purchaser true and effectcomplete copies of each Material Contract, except including all material amendments, modifications, supplements, exhibits, schedules, addenda and restatements thereto and thereof. Sellers have not posted any surety bond or letter of credit with respect to the Business.
(ic) as may be limited by bankruptcy, insolvency, moratorium Each Material Contract is valid and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in binding on the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, applicable Seller and/or Transferred Entity and, to the Knowledge of the CompanySellers, none of on the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, subject to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEnforceability Exceptions.
Appears in 2 contracts
Sources: Stock and Asset Purchase Agreement (Honeywell International Inc), Stock and Asset Purchase Agreement (Be Aerospace Inc)
Material Contracts. (aExcept pursuant to an acquisition permitted by Section 4.1(d) Except (i) as filed as exhibits or to employment or compensation arrangements with directors and officers, the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businessshall not, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or shall not permit any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company to, enter into or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant amend or other provision limiting modify in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material manner materially adverse to the Company and its Subsidiaries taken as a whole;
whole (xii) that any contract or agreement (A) described in clause (i) and clause (ii) of the definition of “Company Contract”, (B) containing actual or contingent obligations of the Company or its Subsidiaries secured by a lien (other than Permitted Encumbrances) in excess of $15.0 million (except as otherwise permitted by Section 4.1(l)) (C) pursuant to which the Company or any of its Subsidiaries is a license (or a covenantburdened from continuing indemnification, consent “earn out” or other rights contingent payment obligations that in each case would reasonably be expected to result in payments in excess of $5.0 million (provided, that nothing in this clause (i)(C) shall prohibit entering into customer agreements and supply agreements in the ordinary course of business consistent with past practice) or to use Intellectual Property(D) of Third Party Rights granted to under which the Company or any Subsidiary of the Company (A) on is the landlord, tenant, subtenant or occupant with respect to real property that has an exclusive basisaggregate value, (B) on a non-exclusive basis, if pursuant or involves payment by or to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of more than $1,000,000 during the fiscal year ended January 3125.0 million or (ii) any supply or sales agreement that has an aggregate value, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require involves payment by or to the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement 75.0 million on an annual basis or (z) that subjects has an aggregate value, or involves payment by or to the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other of more than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ $150.0 million for the duration of the agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(aexcept for renewal(s), whether made following reasonable advance notice to Parent, on substantially similar terms of existing contracts or not set forth in Section 4.15(a) replacements of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding existing contracts with new counterparties on the Company or the applicable Subsidiary of the Company, as the case may be, and, substantially similar terms to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectexisting contract being replaced.
Appears in 2 contracts
Sources: Merger Agreement (Hexion Specialty Chemicals, Inc.), Merger Agreement (Huntsman International LLC)
Material Contracts. (a) Except (i) as filed as exhibits to As of the Company SEC Documentsdate of this Agreement, (ii) except for this Agreement and or the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Benefit Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or bound by: (A) any Contract relating to indebtedness for borrowed money or any financial guaranty in excess of $100,000; (B) any Contract that limits the ability of the Company or any of its Subsidiaries to compete in any business line or in any geographic area; (C) any Contract that involves any exchange traded, over-the-counter or other swap, cap, floor, collar, futures contract, forward contract, option or any other derivative financial instrument; (D) any Contract that involved expenditures or guaranteed receipts by the Company or any of its Subsidiaries of more than $2 million in the last fiscal year or is bound expected to involve expenditures or guaranteed receipts by the Company or any of its Subsidiaries of more than $2 million in the next fiscal year; (E) any Contract that involved, since January 1, 2004, the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets or capital stock or other equity interests of another person (other than acquisitions or dispositions of assets in the ordinary course of business, including acquisitions and dispositions of inventory); (F) any Contract that by its terms limits the payment of dividends or other distributions by the Company or any of its Subsidiaries; (G) any material joint venture or partnership Contract:
; (iH) any Contract that is purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material amount of assets or business; and (I) any Contract deemed to be a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC (all contracts of the type described in this Section 4.19(a) (being referred to herein as “Company Material Contracts”);.
(iib) that is with the ten (10Section 4.19(b) largest customers of the Company Disclosure Schedule sets forth a true and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors complete list of the Company Material Contracts. True, correct and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost complete copies have been made available to Parent of goods and services paid all Company Material Contracts to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during is a party; provided, however, that the fiscal year ended January 31Company need not provide to Parent any Company Material Contracts or portions thereof that contain confidentiality provisions or are otherwise subject to restrictions on disclosure including, 2024;without limitation, restrictions relating to security clearance.
(xivc) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require Neither the Company or nor any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities Subsidiary of the Company or any of its Subsidiaries or relating nor, to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary knowledge of the Company, any other party, is in material breach of or material default under the terms of any Contract that would qualify as a Company Material Contract pursuant to Section 4.19(a)(A), (C), (D), (G) or (I) (each, a “Specified Contract”). Except as would not reasonably be expected to have a Company Material Adverse Effect, neither the case may be, andCompany nor any Subsidiary of the Company nor, to the Knowledge knowledge of the Company, each any other party theretoparty, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles material breach of equity and (ii) or material default under the terms of any Company Material Contract that is not a Specified Contract. Except as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither be material to the Company nor any Subsidiary of the Company hasand its Subsidiaries, taken as a whole, each Specified Contract, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, as would not reasonably be expected to have a Company Material Adverse Effect Effect, each Company Material Contract that is not a Specified Contract or a Contract of the type referred to in Section 4.19(a)(B) or (H), is a valid and binding obligation of the Company or the Subsidiary of the Company which is party thereto and, as of February 1, 2021, to the Knowledge knowledge of the Company, neither of each other party thereto, and is in full force and effect, except that (i) such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws, now or hereafter in effect, relating to creditors’ rights generally and (ii) equitable remedies of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the Company nor any Subsidiary discretion of the Company has received written notice of court before which any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably proceeding therefor may be expected to have a Material Adverse Effectbrought.
Appears in 2 contracts
Sources: Merger Agreement (Stealth Acquisition Corp.), Merger Agreement (Safenet Inc)
Material Contracts. (a) Except Subsections (i) as filed as exhibits to through (x) of Section 3.16(a) of the Company SEC DocumentsDisclosure Schedule list the following types of Contracts, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor arrangements or understandings to which any Subsidiary of the Group Company is a party to or is bound by other than any Contract:
(i) such Contract that is a “material contract” Company Employee Plan or Company Employee Agreement (such Contracts as such term is defined are required to be set forth in Item 601(b)(10Section 3.16(a) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during Disclosure Schedule being the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business“Material Contracts”), and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability none of the Company or any of its Subsidiaries is a party to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (Dbound by any Material Contracts not listed in Section 3.16(a) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesDisclosure Schedule:
(i) each Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) each Contract that is expected, as of the date hereof, by the Company to involve consideration of more than US$500,000, in each casethe aggregate, that is material over the remaining term of such Contract;
(iii) all Contracts relating to any credit, loan or facility arrangement, guarantee or other security arrangement, or Indebtedness (whether or not incurred, assumed, guaranteed or secured by any asset of any Group Company) in excess of US$500,000, other than any such Contracts solely between any Group Companies;
(iv) all joint venture contracts, strategic cooperation or partnership arrangements, or other agreements involving a sharing of profits, losses, costs or liabilities by any Group Company;
(v) all Contracts relating to the purchase or sale of any shares or securities of, or other equity interests in, any Group Company and its Subsidiariesother than Company Equity Awards;
(vi) all Contracts that limit, taken as a wholeor purport to limit, in any material respect, the ability of any Group Company to compete in any line of business or with any person or entity or in any geographic area or during any period of time;
(vii) all Contracts involving any directors, executive officers or shareholders of the Company holding more than 5% of the share capital of the Company, required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act;
(viii) relating all Contracts providing for any change of control payment or similar payments to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, Third Party in excess of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);US$500,000; and
(ix) any hedgingall other Contracts, swap, derivative, whether or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers not made in the ordinary course of business, and/or (C) that is otherwise which are material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the any Group Company or any Subsidiary the conduct of its business, or the Company (A) on an exclusive basisabsence of which would, (B) on a non-exclusive basisindividually or in the aggregate, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is have a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Adverse Effect.
(b) Each Except as would not have a Company Material Adverse Effect, (i) each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on agreement, subject to the Bankruptcy and Equity Exception, and no Group Company is in material breach or violation of, or default under, any Material Contract, (ii) as of the applicable Subsidiary date hereof, no Group Company has received any notice of cancellation of any Material Contract from the other party; (iii) to the Knowledge of the Company, as of the case may bedate hereof, no other party is in material breach or violation of, or default under, any Material Contract; and (iv) as of the date hereof, no Group Company has received any written claim of material default under any such Material Contract and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles no fact or event exists that could give rise to any claim of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of under any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the . The Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship filed with the Company SEC or furnished or made available to Parent true and complete copies of all Material Contracts, including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Merger Agreement (Wang Benson Haibing), Merger Agreement (Taomee Holdings LTD)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documentsset forth on Schedule 2.19(a), (ii) for this Agreement licenses of, and the other agreements entered into with respect to, the items referred to in connection with the transactions contemplated hereby Section 2.17 and (iii) for Company Employee PlansLeases, as of the date hereofto which no representations or warranties are made other than as set forth in Section 2.9, neither the Company nor any Subsidiary of the Company is not a party to or is bound by by, nor are any Contractof its assets affected by, any:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) note, debenture, bond, equipment trust, letter of Regulation S-K credit, indenture loan or other agreement relating to Indebtedness, lending or investing of money or to the Exchange Act)mortgaging or pledging of any of its assets;
(ii) that is Contract with the ten a Governmental Authority;
(10iii) largest customers guaranty of the Company and its Subsidiaries during the fiscal year ended January 31Indebtedness, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than endorsements made for collection in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contractindemnification or other reimbursement obligations in excess of $100,000;
(v) evidencing a capital expenditure Contract for which future the purchase of materials, supplies, goods or services that involves or would reasonably be expected to involve (A) annual payments are required in excess by the Company of $5,000,000100,000 or more or (B) aggregate payments by the Company, of $250,000 or more;
(vi) relating to the disposition or acquisition of Contracts which prohibit it from freely engaging in any business, equity, or all or substantially all of the assets of activity in any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsgeographic region;
(vii) containing Contract (A) a covenant or other provision limiting in any material respect for the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee sale by the Company or of its Subsidiaries of the obligations of any Person (in each casematerials, excludingsupplies, for the avoidance of doubtgoods, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedgingservices, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent equipment or other rights in or to use Intellectual Property) granted assets, and that involves a specified annual minimum dollar sales amount by the Company of $100,000 or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basismore, or (B) pursuant to which the Company or any Subsidiary received licensing revenues for payments of more than $100,000 in the fiscal year ended January December 31, 2024 2008 or expects to receive payments of more than $100,000 in excess the years ending December 31, 2009 and December 31, 2010;
(viii) Contract that requires the Company to purchase its total requirements of $1,000,000any product or service from a third party or that contains "take or pay" provisions;
(ix) employment, consulting, termination or severance Contract, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) any such Contract that is otherwise material terminable at-will by the Company without liability to the Company and its Subsidiaries taken as a wholeCompany;
(x) partnership or joint venture Contract;
(xi) that is a license (distribution, dealer, representative or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesales agency Contract;
(xii) Contract for the lease of personal property that is a provides for payments to or by the Company Real Property Lease with remaining obligations in excess any one case of $1,000,000100,000 or more annually or $500,000 or more over the term of the lease;
(xiii) that involves a material joint venture, profit sharing, partnership Contract for any capital expenditure or similar agreement from which the Company or leasehold improvement in any of its Subsidiaries recognized revenues one case in excess of $1,000,000 during 100,000 or in the fiscal year ended January 31, 2024aggregate greater than $250,000;
(xiv) Contract that is a settlement, conciliation relates to the acquisition or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any disposition of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements business (whether by merger, sale of stock, sale of assets or restrictions (other than ordinary course confidentiality requirements or restrictionsotherwise);
(xv) Collective Bargaining Agreement or other Contract with any stockholders’ agreementlabor organization, proxy, voting trust agreement union or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiariesassociation; or
(xvi) is with an affiliate any other Contracts not described above which involve the payment to or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among by the Company and its wholly-owned Subsidiariesof $100,000 or more in any twelve consecutive month period.
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 2.19(b), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcyeach contract or commitment listed on Schedule 2.19(a) (the "Material Contracts") is valid, insolvency, moratorium binding and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and enforceable against the Company; (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or is not in material default under, the provisions of under any Material Contract, except in each case for those violationshas performed all material obligations under the Material Contracts required to be performed by it, acts and has not received any claim of default under any Material Contract; and (or failures to actiii) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company Seller has received written notice no knowledge of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty breach or anticipated breach by any other party to any Material Contract Contract.
(c) Seller has (A) canceled or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount Buyer true and complete copies of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Datameg Corp), Stock Purchase Agreement (Datameg Corp)
Material Contracts. (ai) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into set forth in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSchedule 8(d), as of the date hereofhereof Seller, neither with respect to the Company nor any Subsidiary of the Company Business, is a not party to or is otherwise bound by any Contractor subject to:
1) any written employment, severance or sales representative contract which contains an obligation (iexcluding commissions) that is a “material to pay more than $100,000 per year;
2) any written consulting contract” (as such term is defined in Item 601(b)(10;
3) of Regulation S-K any real property lease or equipment lease which constitutes part of the Exchange Act)Business or the Assets;
(ii4) that is any Contract containing any covenant limiting the freedom of Seller, with the ten (10) largest customers respect of the Company and its Subsidiaries during Business or the fiscal year ended January 31operations of the Business, 2024 (as determined based on revenue received from such customers during such time period) (excluding to engage in any non-disclosure agreements, data processing agreements, purchase orders line of business or statements of work or invoices entered into compete with any Person in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)any geographic area in any material respect;
(iii5) that is with any Contract in effect on the ten (10) largest vendors date of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) this Agreement relating to the disposition or acquisition of any business, equitythe assets of, or all any interest in, any business enterprise which relates to the Business other than in the Ordinary Course of Business;
6) any offset agreement entered into in connection with an international sales transaction and relating to any contract that imposes on the Business an obligation to perform that will continue in effect on or substantially all of after the assets Closing Date;
7) any Contract of any Person for kind that (i) requires a payment by any party in excess of, or a series of payments which in the aggregate consideration exceed, $100,000, (ii) has a term, or requires the performance of any obligations by any party over a period, in excess of $5,000,000 by the Company one year, or (iii) involves any of its Subsidiaries outside director, officer or stockholder of the ordinary course of business Seller;
8) any Contract pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability Seller on behalf of the Company Business has made or any Subsidiary of the Company to compete will make loans or engage in any line of business advances, or to compete with any Person in any geographic area, other than any customary employee non-solicitation has or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” will have incurred debts or similar provisions, (C) become a right of first refusal guarantor or right of first offer surety or similar right that limits the ability of the Company or any of pledged its Subsidiaries to sell, transfer, pledge credit on or otherwise dispose become responsible with respect to any undertaking of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiariesanother Person, in each case, that is material in an amount over $100,000 (except for the negotiation or collection of negotiable instruments in transactions in the Ordinary Course of Business);
9) any indenture, loan agreement, note, mortgage, security agreement, lease of real property or personal property or other Contract relating to the Company borrowing of funds, an extension of credit or financing for which the Business is obligated; or
10) any Contract involving a partnership, joint venture or other cooperative undertaking.
ii) Except as disclosed in Schedule 8(d), each contract disclosed in Schedule 8(d) is a legal, valid and binding obligation of Seller enforceable against Seller in accordance with its Subsidiariesterms (except as limited by applicable bankruptcy, taken as a whole;
(viii) insolvency, reorganization, moratorium or other laws now or hereafter in effect relating to or evidencing indebtedness for borrowed moneyaffecting creditors’ rights generally, debt securitiesincluding the effect of statutory and other laws regarding fraudulent conveyances and preferential transfers), warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends except with respect to liquidated damages owed by Seller and any equity securities of the Company delays or circumstances in connection therewith, Seller is not in default and has not failed to perform any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may beobligation thereunder, and, to the Knowledge of Seller, there does not exist any event, condition or omission which would constitute a material breach or material default (whether by lapse of time or notice or both) by any other Person, which would give rise to any right of termination. Except as disclosed in Schedule 8(d), as of the Company, each date of this Agreement Seller has not received any written notification from any other Person party thereto, and (Bto any of the Contracts disclosed in Schedule 8(d) in full force and effect, except of a claim of default by Seller. Seller has previously made available to Buyer (i) as may be limited by bankruptcytrue, insolvencyaccurate and complete copies of each document set forth on Schedule 8(d) (collectively, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity the “Identified Contracts”) and (ii) a written description of each oral arrangement so listed on Schedule 8(d). Except as would notset forth on Schedule 8(d), individually or all such Identified Contracts and arrangements have been entered into by Seller in the aggregateOrdinary Course of Business. Except for sales of assets in the Ordinary Course of Business and this Agreement, reasonably be expected to have a Company Material Adverse Effect. Neither the Company neither Seller nor any Subsidiary of its Affiliates has any Contract or arrangement with respect to the sale or other disposition of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, Business or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAssets.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Mastec Inc), Asset Purchase Agreement (Mastec Inc)
Material Contracts. (a) Except (ifor this Agreement, the Company Benefit Plans set forth on Section 3.9(a) as of the Company Disclosure Schedule and the agreements filed as exhibits to the Company SEC Documents, (ii) for this Agreement Documents and except as set forth on Section 3.20 of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC);
(ii) any Contract that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant imposes any express restriction on the right or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sellcompete with any other person or acquire or dispose of the securities of another person (other than any agreement related to a Company Takeover Proposal or that contains provisions prohibiting such disclosure), transfer(B) contains an exclusivity or “most favored nation” clause that restricts the business of the Company or any of its Subsidiaries in a material manner, other than those contained in the Company Oil and Gas Leases, or (C) contains any minimum volume commitment to which the Company reasonably expects that the Company and its Subsidiaries will be required to make annual payments in excess of $5 million or for longer than one year;
(iii) any mortgage, note, debenture, indenture, security agreement, guaranty, pledge or otherwise dispose other agreement or instrument evidencing indebtedness for borrowed money or any guarantee of such indebtedness of the Company or any of its Subsidiaries in an amount in excess of $30 million, except for any transactions among the Company and its wholly owned Subsidiaries or among the Company’s wholly owned Subsidiaries;
(iv) any Contract that provides for the acquisition, disposition, license, use, distribution or outsourcing of assets, services, rights or properties or (Dother than Company Oil and Gas Interests) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of with respect to which the Company reasonably expects that the Company and its SubsidiariesSubsidiaries will be required to make annual payments in excess of $30 million;
(v) any joint venture, partnership or limited liability company agreement or other similar Contract relating to the formation, creation, operation, management or control of any joint venture, partnership or limited liability company, other than (A) any such Contract solely between the Company and its Subsidiaries or among the Company’s Subsidiaries and (B) any customary joint operating agreements, unit agreements or participation agreements affecting the Company Oil and Gas Interests;
(vi) any Contract that obligates the Company or any of its Subsidiaries to make any loans, advances or capital contributions to, or investments in, any person other than (A) advances for expenses required under customary joint operating agreements, unit agreements, participation agreements and customary advances to operators of the Company Oil and Gas Interests not covered by a joint operating agreement, unit agreement or participation agreement, (B) any loan or capital contribution to, or investment in, the Company or one of its wholly owned Subsidiaries or (C) loans or advances to an officer, director or employee of the Company or any of its Subsidiaries that is less than $100,000 individually to such person and $500,000 in the aggregate;
(vii) any contract that provides for the sale by the Company or any of its Subsidiaries of Hydrocarbons (A)(1) in excess of 7,500 barrels of oil equivalent of Hydrocarbons per day over a period of one month (calculated on a yearly average basis) or (2) for a remaining term greater than ten years or (B) which the Company reasonably expects that it will make aggregate payments in excess of $5 million in any of the next three succeeding fiscal years or $10 million over the life of the contract that, in the case of (A) and (B), has a remaining term of greater than 91 days and does not allow the Company or such Subsidiary to terminate it without penalty to the Company or such Subsidiary within 91 days;
(viii) any agreement pursuant to which the Company or any of its Subsidiaries has paid amounts associated with any Production Burden in excess of $5 million during the immediately preceding fiscal year or with respect to which the Company reasonably expects that it will make payments associated with any Production Burden in any of the next three succeeding fiscal years that could, based on current projections, exceed $5 million per year;
(ix) any agreement which is a joint development agreement, exploration agreement or acreage dedication agreement (excluding, in respect of each caseof the foregoing, customary joint operating agreements) that either (A) is material to the operation of the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between B) would reasonably be expected to require the Company and any its Subsidiaries to make expenditures in excess of its wholly$15 million in the aggregate during the 12-owned Subsidiaries or between or among any wholly-owned Subsidiaries of month period following the Company);
(ix) any hedging, swap, derivative, or similar Contractdate hereof;
(x) any acquisition Contract that is a license (or a covenant, consent contains “earn out” or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property contingent payment obligations (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted asset retirement obligations and plugging and abandonment obligations or customary indemnification obligations), that would reasonably be expected to customers result in payments in respect of such “earn out” or payment obligations after the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which date hereof by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;15 million; and
(xivxi) that is a settlement, conciliation each contract for lease of personal property or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions real property (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company Oil and Gas Interests) involving payments in excess of $15 million in any calendar year or any aggregate payments in excess of its Subsidiaries $60 million that are not terminable without penalty or relating other liability to disposition, voting or dividends with respect to any equity securities of the Company or (other than any of its Subsidiaries; or
(xviongoing obligation pursuant to such contract that is not caused by any such termination) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Actwithin 60 days, other than any Contract solely among the Company and its wholly-owned Subsidiariescontracts related to drilling rigs.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Carrizo Oil & Gas Inc), Merger Agreement (Callon Petroleum Co)
Material Contracts. (a) Except (i) as filed as exhibits to Section 6.1(A)(t)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Allergan Disclosure Schedule sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each of the Company is a party to or is bound by following Contracts (other than any Contract:
(iAllergan Benefit Plan) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Allergan or any of its Subsidiaries outside is a party or by which it is bound (each such Contract required to be so listed, and each of the ordinary course following types of business Contracts (other than any Allergan Benefit Plan) described below to which Allergan or any of its Subsidiaries becomes a party or by which it otherwise becomes bound after the date of this Agreement, an “Allergan Material Contract”):
(A) each (i) acquisition or divestiture Contract (including any Contracts pursuant to which any member of the Company Allergan Group has transferred or its Subsidiaries have material continuing obligations;
agreed to transfer ownership of any Intellectual Property) and (viiii) containing license (Aincluding any in-license or out-license and any sublicense), collaboration agreement or similar or equivalent Contract, that, in the case of each of clauses (i) and (ii), (x) has a covenant maximum potential value (or which otherwise requires the receipt or making of payments) in excess of $100 million (including pursuant to any “earn-out,” contingent value rights, milestone payments, license fees, royalty payments, development costs or other provision limiting in any material respect the ability of the Company contingent payment or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessvalue obligations), (By) “most favored nation”, “exclusivity” or similar provisions, (C) a right involves the issuance of first refusal or right any Equity Securities of first offer or similar right that limits the ability of the Company Allergan or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after following the date of this Agreement or (z) grants to any Person (other than any member of the Allergan Group) any right of first refusal, right of first negotiation, right of first offer, option to purchase, option to license, or any other similar rights with respect to any Allergan Product or any material Intellectual Property of Allergan;
(B) any Contract with any Governmental Entity that subjects is material to Allergan and its Subsidiaries, taken as a whole, and involving or that would reasonably be expected to involve payments to or from any Governmental Entity in an amount having a maximum potential value in excess of $100 million;
(C) any Contract that (x) limits or purports to limit, in any material respect, the Company freedom of Allergan or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material ongoing requirements respect, the freedom of AbbVie or any of its Affiliates to take such actions after the Effective Time, (y) contains exclusivity or “most favored nation” obligations or restrictions (other than ordinary course confidentiality requirements that restrict or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating purport to any equity securities of the Company restrict Allergan or any of its Subsidiaries in any material respect or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time, (z) contains any other provisions materially restricting or purporting to materially restrict the ability of Allergan or any of its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, test or research any Allergan Products through third parties or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time;
(D) any Contract relating to dispositionthird party indebtedness for borrowed money in excess of $100 million (whether incurred, voting assumed, guaranteed or secured by any asset) of Allergan or any of its Subsidiaries;
(E) any Contract restricting Allergan or any of its Subsidiaries from (x) the payment of dividends (y) the making of distributions to shareholders or (z) the ability to repurchase or redeem Equity Securities;
(F) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other similar agreement, which is material to the Allergan Group, taken as a whole;
(G) any Contracts or other transactions with any (A) executive officer or director of Allergan, or (B) affiliate (as such term is defined in Rule 12b-2 promulgated under the Exchange Act) or “associates” (or members of any of their “immediate family”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Exchange Act) of any such executive officer, director or beneficial owner;
(H) any Contract involving the settlement of any Action or threatened Action (or series of related Actions) (A) which (x) will involve payments by Allergan or any of its Subsidiaries after the date hereof, or involved such payments, in excess of $100 million or (y) will impose, or imposed, materially burdensome monitoring or reporting obligations by Allergan or any of its Subsidiaries outside the ordinary course of business or material restrictions on Allergan or any Subsidiary of Allergan (or, following the Completion, on AbbVie or any Subsidiary of AbbVie) or (B) which impose material restrictions on the use of any material Intellectual Property other than, in the case of this clause (B), the granting of non-exclusive licenses or sublicenses or the granting of exclusive licenses in connection with the settlement of ANDA-related litigation in the ordinary course of business;
(I) any stockholders, investors rights, registration rights or similar agreements or arrangements with respect to any equity securities the Equity Securities of the Company Allergan or any of its Subsidiaries; orand
(xviJ) is with an affiliate or any other Person that would be Contract required to be disclosed under filed by Allergan pursuant to Item 404 601(b)(10) of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.K.
(bii) Each Contract All of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Allergan Material Contracts that have expired or terminated by their termsare, all of subject to the Material Contracts are Equitable Exceptions, (A) valid and binding on the Company obligations of Allergan or the applicable a Subsidiary of the Company, Allergan (as the case may be, ) and, to the Knowledge knowledge of Allergan, each of the Company, each other party parties thereto, and (B) in full force and effecteffect and enforceable in accordance with their respective terms against Allergan or its Subsidiaries (as the case may be) and, to the knowledge of Allergan, each of the other parties thereto, in each case of (A) and (B), except (i) for such Allergan Material Contracts that are terminated after the date of this Agreement in accordance with their respective terms, other than as may a result of a default or breach by Allergan or any of its Subsidiaries of any of the provisions thereof, and except where the failure to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally binding obligations and by general principles of equity in full force and (ii) as effect and enforceable has not had and would notnot reasonably be expected to have, individually or in the aggregate, an Allergan Material Adverse Effect. To the knowledge of Allergan, as of the date hereof, no Person is seeking to terminate or challenging the validity or enforceability of any Allergan Material Contract, except such terminations or challenges which have not had and would not reasonably be expected to have a Company have, individually or in the aggregate, an Allergan Material Adverse Effect. Neither the Company Allergan nor any Subsidiary of its Subsidiaries, nor, as of the Company has, anddate hereof, to the Knowledge knowledge of the CompanyAllergan, none any of the other parties thereto have, has violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach default under any provision of, and as of the date hereof neither Allergan nor any of its Subsidiaries has received written notice that it has violated or default defaulted under, the provisions of any Allergan Material Contract, except in each case for those violations, acts violations and defaults (or failures potential defaults) which have not had and would not reasonably be expected to act) and defaults whichhave, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a an Allergan Material Adverse Effect. Allergan has made available to AbbVie true and complete copies of each Allergan Material Contract as in effect as of the date hereof.
Appears in 2 contracts
Sources: Transaction Agreement (Allergan PLC), Transaction Agreement (AbbVie Inc.)
Material Contracts. (a) Except (ias set forth on Schedule 3.7(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company no Seller Party is a party to or bound by, and the Acquired Assets are not subject to, any of the following Contracts (in each case below, to the extent that the same relates primarily to, or is bound by any Contract:otherwise necessary to the operation of the Business, the Acquired Assets or the Assumed Liabilities):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any Contracts for the purchase or sale of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices Inventory entered into in the ordinary course of business, and other similar which either individually or in conjunction with Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businesssame party, and in connection with the same matter, relate to commitments in excess of $25,000 per annum (including any agreements requiring the payment of any royalties, milestones, minimum purchase payments or other similar Contracts that are ancillary to Contracts pursuant to which cost guarantees made by or on behalf of goods and services is paid or payable by the Company);
(ii) any Contracts relating to the purchase, lease or similar arrangement of any machinery, equipment, furniture, fixture or similar property having a value in excess of $25,000;
(iii) any Contracts with (A) any director, officer, employee or Affiliate of any Seller Party involving payments in excess of $5,000 per annum (or the equivalent amount in another currency), or (B) to the Knowledge of the Seller Parties, any Affiliate or family member of any of the foregoing involving payments in excess of $5,000 per annum;
(iv) any agreement with any independent contractor or similar Contract that (x) involves the payment or receipt of more than $25,000 per annum and (y) is a Government Contractnot terminable within thirty (30) days’ notice or less without penalty, liability or premium;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000any currently effective collective bargaining or union agreements with respect to its employees;
(vi) any agreement (A) restricting any Seller Party from engaging, participating, or competing with any other Person, in any line of business, market or geographic area, or to make use of any Intellectual Property Rights; (B) granting most favored nation pricing, exclusive sales, distribution, marketing or other exclusive rights, rights of first refusal or rights of first negotiation to any other Person; (C) otherwise limiting the right of any Seller Party to make, use, sell, offer for sale, import, or distribute any Acquired Technology or services related thereto; or (D) any agreement pursuant to which any Seller Party has granted exclusive rights with respect to the Acquired Technology, including any Intellectual Property Rights;
(vii) any agreement of guarantee, credit support, assumption or endorsement of, any indebtedness for borrowed money of other Persons;
(viii) any line of credit, standby financing, revolving credit or other similar financing arrangement of any sort that is secured by any Acquired Assets;
(ix) any agreement relating to any joint venture or partnership arrangement between any Seller Party, on the disposition one hand, and a third party, on the other hand;
(x) any leases for real property or acquisition personal property;
(xi) any distributorship, customer sales or leasing Contracts under which any Seller Party is currently providing or receiving products or services and involving more than $25,000 per annum; and
(xii) any Contract of indemnification or warranty, other than (A) under a Seller Party’s unmodified forms of standard customer/distribution agreements, the forms of which have been made available to the Purchaser or its counsel, or (B) warranties implied by Law;
(xiii) any business, equityContract pursuant to which any Seller Party has acquired or divested a business or entity, or all or substantially all of the assets of a business or entity, whether by way of merger, consolidation, purchase of stock, purchase or sale of assets, license or otherwise;
(xiv) any Person for aggregate consideration Contract with any Governmental Entity;
(xv) any confidentiality, secrecy or non-disclosure Contract in excess of $5,000,000 by the Company effect other than (A) any such Contract entered into with customers or any of its Subsidiaries outside of distributors in the ordinary course of business pursuant to a Seller Party’s standard unmodified form (a copy of which has been made available to the Purchaser or its counsel) and (B) any such Contract entered into in connection with a possible disposition by the Company or its Subsidiaries have material continuing obligationsof the Business, the terms of which prohibit the applicable Seller Party from disclosing the existence of such Contract, the parties thereto and/or the provisions thereof;
(viixvi) containing (A) any agreement pursuant to which rights of any third party are triggered or become exercisable, or under which any other consequence, result or effect arises, in connection with or as a covenant result of the execution of this Agreement or the consummation of the transactions contemplated hereunder, either alone or in combination with any other provision limiting in any material respect event, which trigger or exercise of rights, consequence, result or effect would materially impair the ability of the Company Purchaser to consummate the transactions hereunder or operate the Business after Closing; and
(xvii) any Subsidiary Contracts related to research or development with respect to Acquired Technology. The agreements, documents and instruments set forth on Schedule 3.7(a) of the Company Disclosure Schedule are collectively with the KNE Contracts referred to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) herein as “most favored nationMaterial Contracts”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or . Except as otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aSchedule 3.7(a) of the Company Disclosure Schedule, is referred true, complete and correct copies of each document or instrument constituting a Material Contract in its complete, current and up-to-date version and true, complete and correct written description of the material terms of any non-written Contract listed on Schedule 3.7(a) of the Company Disclosure Schedule (Material Contracts) have been made available to herein the Purchaser by virtue of having been posted on the electronic data room.
(b) Except as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsset forth on Schedule 3.7(b) of the Company Disclosure Schedule, all of the Material Contracts are (A) valid and valid, binding on the Company or the applicable Subsidiary of the Companyin accordance with their respective terms, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except and enforceable against (i) the Seller Party or KNE (as applicable) which are a party thereto, and (ii) to the Knowledge of the Seller Parties and KNE, each third party which is party thereto, in accordance with their respective terms, except, in each case, to the extent that enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium and or other similar Applicable Law Laws affecting the enforcement of creditors’ rights generally and by general principles of equity and (ii) as would notequity, individually regardless of whether such enforceability is considered in a proceeding at law or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary equity.
(c) Except as set forth on Schedule 3.7(c) of the Company hasDisclosure Schedule, and, to the Knowledge of the Company, none of the other parties thereto have, violated neither any provision of, Seller Party nor KNE is in default under or committed in breach or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions violation of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021Seller Parties, no counterparty other party is in default under or in breach or violation of any Material Contract.
(d) The agreements, documents and instruments set forth on Schedule 3.7(d) of the Company Disclosure Schedule are referred to herein as the “KNE Contracts”. Other than the KNE Contracts, KNE is not a party to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Asset Purchase Agreement (Spectranetics Corp), Asset Purchase Agreement (Kensey Nash Corp)
Material Contracts. (a) Except (i) as for the contracts described in or filed as exhibits an exhibit to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into Documents or set forth in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 3.13 or Section 3.18 of the date hereofCompany Disclosure Schedule (collectively, the “Material Contracts”), neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractof the following:
(i) that is a “material contract” (as such term is defined any contract or agreement entered into other than in Item 601(b)(10) the ordinary course of Regulation S-K business consistent with past practice for the acquisition of the Exchange Act)securities of or any material portion of the assets of any other Person or entity;
(ii) that is with any contract or agreement for the ten (10) largest customers purchase of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 100,000 which cannot be cancelled by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company without penalty or its Subsidiaries have material continuing obligationsfurther payment or without more than 45 days’ notice;
(viiiii) containing (A) a covenant any contract, agreement or instrument in excess of $100,000 that expires or may be renewed at the option of any Person other provision limiting in any material respect the ability of the than Company or any Subsidiary of its Subsidiaries so as to expire more than one year after the date of this Agreement;
(iv) any material contract with any independent contractor or consultant (or similar arrangement) which is not cancelable without penalty and without more than thirty (30) days’ notice;
(v) any trust indenture, mortgage, promissory note, loan agreement or other contract, agreement or instrument for the borrowing of money, any currency exchange, commodities or other hedging arrangement or any leasing transaction of the type required to be capitalized in accordance with GAAP, in each case, where Company or any of its Subsidiaries is a lender, borrower or guarantor;
(vi) any contract or agreement limiting the freedom of Company or any of its Subsidiaries or any of their respective employees to compete or engage in any line of business or to compete with any other Person;
(vii) any contract or agreement with any Affiliate of Company;
(viii) any agreement of guarantee, support, indemnification, assumption or endorsement of, or any similar commitment with respect to, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses those entered into in the ordinary course of business;
(ix) any material agreement which would be terminable other than by Company or its Subsidiaries or under which a payment obligation would arise or be accelerated, in each case as a result of the consummation of the transactions contemplated by this Agreement;
(Bx) “most favored nation”any material alliance, “exclusivity” cooperation, joint venture, stockholders’ partnership or similar provisionsagreement;
(xi) any broker, distributor, dealer, agency, sales promotion, market research, market consulting or advertising agreement involving in excess of $100,000 (Cother than software licenses entered into in the ordinary course of business);
(xii) a right any material research, development, sales representative, marketing or reseller agreement, or any service, support or maintenance agreement related to the business or technology of first refusal Company or any of its respective Subsidiaries;
(xiii) any material agreement, option or commitment or right with, or held by, any Third Party to acquire, use or have access to any assets or properties, or any interest therein, of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive software licenses granted to customers entered into in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024);
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements agreement that affects or restrictions (other than ordinary course confidentiality requirements relates to Company IP, including, without limitation, any material agreement pursuant to which any person or restrictions)entity is authorized to use or has an ownership or security interest in any Company IP;
(xv) any stockholders’ agreement, proxy, voting trust material contract or agreement which would require any consent or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities approval of a counterparty as a result of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities consummation of the Company or any of its Subsidiariestransactions contemplated by this Agreement; orand
(xvi) is with an affiliate or any other Person that contract the loss of which would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the have a Company and its wholly-owned SubsidiariesMaterial Adverse Effect.
(b) Each Contract Company and each of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that its Subsidiaries have expired or terminated by their terms, performed all of the obligations required to be performed by them and are entitled to all accrued benefits under, and are not alleged to be in default in respect of, each Material Contracts are (A) valid and binding on the Contract to which Company or the applicable any Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other is a party thereto, and (B) in full force and effector by which Company or any Subsidiary is bound, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither Each of the Company nor any Subsidiary Material Contracts is in full force and effect, without amendment (other than as disclosed in Section 3.13 of the Company hasDisclosure Schedule), andand there exists no default or event of default or event, occurrence, condition or act, with respect to Company or any of its Subsidiaries or, to the Knowledge knowledge of Company, with respect to any other contracting party, which, with the giving of notice, the lapse of the Company, none time or the happening of the any other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition existscondition, which (with would become a default or without notice, lapse event of time or both) would constitute a breach of or default under, the provisions of under any Material Contract, except in each case for those violationsexcept, acts (or failures to act) and defaults whichas would not, individually or in the aggregate, would not reasonably be expected material to Company. True, correct and complete copies of all Material Contracts have a Company Material Adverse Effect and, been furnished or made available to Parent or filed as of February 1, 2021, exhibits to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSEC Documents.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Palmsource Inc)
Material Contracts. (a) Except for this Agreement, the Company Employee Plans (i) including all Contracts thereunder), or as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSEC, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(i) that is (A) any Contract providing for or governing the formation, creation, operation, management or control of a “joint venture, strategic alliance, partnership or sharing of profits or revenue, in each case material contract” to the Company and its Subsidiaries, taken as a whole; or (as such term is defined B) except Contracts or purchase orders for expenditures to the extent accounted for or reflected in Item 601(b)(10the Company’s capital expenditure budget set forth in Section 4.13(a)(i) of Regulation Sthe Company Disclosure Letter (the “Capex Budget”), any Contract or non-K trade purchase order from service providers or suppliers obligating the Company or any of its Subsidiaries to make any capital investment or capital expenditure in excess of $1,000,000 over the Exchange Act)remaining life of such Contract or such purchase order;
(ii) any Contract or non-trade purchase orders from service providers or suppliers that requires payments by the Company or and of its Subsidiaries, or any Contract that requires payments to the Company or and of its Subsidiaries, in each case, in excess of $2,500,000 during the fiscal year ended August 31, 2024 (in each case, other than (A) Contracts or purchase orders for expenditures to the extent accounted for or reflected in the Capex Budget, or (B) Contracts or purchase orders for the acquisition or disposition of raw materials, natural gas, other inventory, supplies, equipment, services or products in the ordinary course of business);
(iii) any Contract pursuant to which (A) it grants to any other Person a license, covenant not to sue or similar right under any material Company IP, (B) any other Person grants to it a license, covenant not to sue or similar right under any material Intellectual Property used in the its business, or (C) it agrees to limit its use or enforcement of material Company IP in any material respect (including pursuant to any co-existence or similar agreement), but excluding, in each case of (A) through (C): any (1) non-exclusive licenses granted to it with respect to “off the shelf” Software or Software that is readily commercially available pursuant to a standard “shrink wrap” or other similar standardized license agreement that has a purchase price or annual license fee of less than $1,000,000; (2) non-exclusive licenses granted in the ordinary course of business to any customer for such customer’s end-use of Company Products, or non-exclusive licenses to or assignments from any employee, contractor, consultant, vendor or service provider, solely in connection with the ten provision or receipt of services by it or such parties; (103) largest customers open source Software licenses; and (4) non-exclusive licenses incidental to its sale or purchase of any product or service;
(iv) any Contract governing the development or ownership of any Intellectual Property, Software or Company Product developed by or jointly with any other Person at the request or direction of such other Person which Intellectual Property, Software or Company Product is material to the business of the Company and its Subsidiaries during the fiscal year ended January 31Subsidiaries, 2024 (as determined based on revenue received from such customers during such time period) (but excluding any non-disclosure agreementsemployment, data processing agreementsconsulting, purchase orders services or statements of work or invoices invention assignment agreements entered into in the ordinary course of businessbusiness with employees, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid contractors or payable consultants of the Company or its Subsidiaries, in each case, assigning all rights therein to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
any Contract entered into at any time since January 1, 2022: (viA) relating to the disposition or acquisition by it of any business, equity, product line or all or substantially all of the other material assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business (whether by merger, sale or purchase of assets, sale or purchase of stock or equity ownership interests or otherwise) (excluding, in any case, the acquisition or disposition of raw materials, natural gas, other inventory, supplies, equipment or products in the ordinary course of business or any utility Contract), including any put, call or similar right pursuant to which it could be required to purchase or sell any such business, product line or other material assets; or (B) pursuant to which it will acquire any interest, or will make an investment, (other than short term investments, including money market funds, bank deposits, commercial paper and other money market instruments as disclosed in the Company Balance Sheet or the notes thereto, incurred in the ordinary course of business) in any other Person (other than the Company and its Subsidiaries have Subsidiaries);
(vi) any Contract relating to the disposition or acquisition by it of any business, product line or other material assets of it or another Entity (whether by merger, sale or purchase of assets, sale or purchase of stock or equity ownership interests or otherwise) (A) entered into on or after January 1, 2020 with continuing obligationsmaterial indemnification obligations or (B) with any material remaining “earn out” or other contingent payment or consideration of it that has not been substantially satisfied prior to the date of this Agreement;
(vii) containing (A) a covenant or other provision limiting any Contract that by its terms limits in any material respect the ability of the Company or any Subsidiary and its Subsidiaries and, following the Closing, Parent and its Subsidiaries in their respective capacities as Affiliates of the Company or its Subsidiaries: (A) to compete or engage in any line of business or to compete with with, or provide any product or service to, any other Person or in any geographic area, other than any customary employee non-solicitation ; or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” to acquire any product or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company other asset or any of its Subsidiaries to sellservice from any Person, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” sell any product or other contingentasset to any other Person, deferred or fixed payment obligation of the Company transact business or deal in any other manner with any other Person;
(viii) any Contract that by its terms: (A) grants exclusive rights to market, sell or deliver any product and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
; (viiiB) relating contains any “most favored nation” or similar provision in favor of the counterparty for any product and that is material to the Company and its Subsidiaries, taken as a whole; (C) contains a right of first refusal, first offer or evidencing indebtedness for borrowed money, debt securities, warrants first negotiation or other rights any similar right with respect to acquire any debt securities, an asset of the Company or any Subsidiary of the Company, or any guarantee by and its Subsidiaries that is material to the Company and its Subsidiaries, taken as a whole; (D) obligates it to purchase a specified minimum amount of goods or of its Subsidiaries of the obligations of any Person (services, in each case, excluding, in excess of $1,000,000 (other than Contracts for the avoidance acquisition or disposition of doubtraw materials, intercompany loans between natural gas, other inventory, supplies, equipment or products in the ordinary course of business); or (E) that is material to the Company and its Subsidiaries, taken as a whole and provides for a “sole source” or similar relationship or contains any provision that requires the purchase of all or a material portion of its wholly-owned Subsidiaries or between or among requirements from any wholly-owned Subsidiaries of the Companythird party (other than utility Contracts);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or Contract relating to use Intellectual Property) granted by the Company or any Subsidiary Indebtedness of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 and its Subsidiaries in excess of $1,000,000, 1,000,000 over the remaining life of such Contract or creating a Lien (other than non-exclusive licenses granted to customers in the ordinary course a Permitted Lien) on any of business, and/or (C) its assets or properties that is otherwise material to the Company and its Subsidiaries Subsidiaries, taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract such Contracts solely among the Company and its wholly-owned Subsidiaries.;
(bx) any settlement or similar Contract arising out of a Legal Proceeding or threatened Legal Proceeding: that (A) materially restricts or imposes any material obligation on it and was entered into on or after January 1, 2020; (B) materially disrupts its business as currently conducted; or (C) would require it to pay consideration valued at more than $1,000,000 following the date of this Agreement and was entered into on or after January 1, 2020;
(xi) any material Contract with any Governmental Entity;
(xii) any Contract between or among it or its Subsidiary, on the one hand, and any directors, executive officers (as such term is defined in the Exchange Act) or any beneficial owner of five percent (5%) or more of the outstanding shares of any class of capital stock of it, or any Affiliate of the foregoing, on the other hand;
(xiii) any Contract that is a Collective Bargaining Agreement; or
(xiv) any other Contract (other than any other Material Contract), the termination of which would constitute a Company Material Adverse Effect. Each Contract of the type described above in this Section 4.15(a)4.13(a) or filed by the Company as a “material contract” pursuant to Item 601(b)(10) of Regulation S-K under the Securities Act, whether or not set forth in together with each lease listed on Section 4.15(a4.10(b) of the Company Disclosure ScheduleLetter, is referred to herein as a “Material Contract.” The Company has made available to Parent a true, correct and complete copy of each Material Contract existing as of the date hereof.
(b) Except for (i) as does not constitute a Company Material Contracts Adverse Effect or (ii) to the extent that have expired any Material Contract expires or terminated by their terminates after the date hereof in accordance with its terms, all of the each Material Contracts are (A) valid Contract is in full force and effect and is valid, binding on and enforceable in accordance with its terms against the Company or the applicable Subsidiary of the Companyits Subsidiary, as applicable, subject to the case may beEnforceability Exceptions and assuming the validity, binding nature and enforceability against the counterparty or counterparties thereto. Neither the Company nor any of its Subsidiaries has, and, to the Knowledge of the Company, each no other party theretoPerson has, violated or breached, or committed any default under, any Material Contract, and (B) neither the Company nor any of its Subsidiaries would, and, to the Knowledge of the Company, no other Person would, with or without notice or lapse of time, or both, be in full force and effectbreach or violation of, except (i) as may be limited by bankruptcyor default under, insolvencyany such Material Contract, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notwhere such violation, individually breach or in the aggregate, reasonably be expected to have default constitutes a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andits Subsidiaries has received any written notice regarding any actual or, to the Knowledge of the Company, none of the other parties thereto have, violated any provision threatened breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any such Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing intention to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Radius Recycling, Inc.), Agreement and Plan of Merger (Radius Recycling, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for Other than this Agreement and the other agreements entered into in connection with Company Agreement, Schedule 4.11(a) sets forth all of the transactions contemplated hereby and (iii) for Company Employee Plansfollowing Contracts to which any Contributed Entity is, or as of the date hereofClosing will be, neither the Company nor a party or by which any Subsidiary of the Company is a party to Midstream Assets are, or is as of the Closing will be, bound by any Contract:(collectively, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Commercial Agreements;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Real Property Lease;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure pipeline interconnection agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) any lease of personal property that requires or is a Government Contractreasonably expected to require, in accordance with its terms, payments from any Contributed Entity in excess of $50,000 in any twelve-month period;
(v) evidencing a capital expenditure for which future any Contract that requires or is reasonably expected to require, in accordance with its terms, payments are required to or from any Contributed Entity in excess of $5,000,00050,000 in any twelve-month period other than any Contract that is otherwise disclosed on Schedule 4.11(a);
(vi) relating to the disposition or acquisition Contracts with any Affiliates of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Contributed Entity (including Longwood) or any current or former officer or director of its Subsidiaries outside of Longwood, such Contributed Entity or their Affiliates, on the ordinary course of business pursuant to which one hand, and such Contributed Entity, on the Company or its Subsidiaries have material continuing obligationsother hand;
(vii) containing (A) a covenant or other provision limiting in any material respect Contracts that restrict the ability of the Company or any Subsidiary of the Company Contributed Entity to compete with any other Person or engage in any line of business or which materially limit or restrict the right or ability to compete with operate the Midstream Assets;
(viii) Contracts for (A) the purchase or sale of any Person in any geographic areamaterial assets, other than any customary employee non-solicitation including purchase orders for material equipment, or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”the sale of equity interests in any Contributed Entity (other than this Agreement) or the merger, “exclusivity” consolidation or similar provisionsreorganization of any Contributed Entity;
(ix) Contracts relating to any acquisition (after the date hereof) by any Contributed Entity of any operating business or the capital stock of any other Person, including any associated confidentiality agreements;
(Cx) Contracts relating to the incurrence, assumption or guarantee of Indebtedness, the making of any advances or loans or imposing a right Lien on any of first refusal the Midstream Assets;
(xi) Contracts relating to any partnership, strategic alliance or right joint venture or any sharing of first offer revenues, profits, losses, costs or similar right liabilities; and
(xii) Contracts that limits the ability include any obligation of the Company or any of its Subsidiaries Contributed Entity to sellmake payments, transfercontingent or otherwise, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation arising out of the Company prior acquisition or disposition of any asset or business.
(b) Longwood has made available to Five Point correct and its Subsidiariescomplete copies (or, in the case of the Commercial Agreements, execution versions) of (A) all written Material Contracts and (B) all Organizational Documents of each Contributed Entity, including, in each case, that is material to the Company and its Subsidiaries, taken all amendments thereto. Except as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) set forth on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(aSchedule 4.11(b)(i), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material there are no oral Contracts that have expired or terminated by their terms, all binding on any Contributed Entity. Each of the Material Contracts are (A) is, or as of the Closing will be, in full force and effect and is, or as of the Closing will be, the legal, valid and binding on obligation of the Company applicable Contributed Entity or the applicable Subsidiary Affiliate of the CompanyLongwood, as the case may beapplicable, and, to the Knowledge of the CompanyLongwood, each other party thereto, and (B) enforceable against it in full force and effectaccordance with its terms, except (i) as may be limited by subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar Applicable Law laws affecting creditors’ rights and remedies generally and by subject, as to enforceability, to general principles of equity and (ii) as would not, individually regardless of whether enforcement is sought in a proceeding at law or in the aggregateequity). No Contributed Entity is in breach of any Material Contract in any material respect, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andnor, to the Knowledge of the CompanyLongwood, none is any other party to any such Material Contract in breach thereof. Except as set forth on Schedule 4.11(b)(ii), no event has occurred, which after notice or lapse of the other parties thereto have, violated any provision oftime, or committed or failed to perform any act underboth, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a material breach of or other default under, the provisions of by any Contributed Entity under any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanyLongwood, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty other party to any such Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Subscription and Contribution Agreement, Subscription and Contribution Agreement (Matador Resources Co)
Material Contracts. (a) Except (i) as for this Agreement and the Contracts filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansReports, as of the date hereof, neither the Company nor any Subsidiary none of the Company or its Subsidiaries is a party to or is bound by any Contractby:
(i) any Contract that is a “material contract” (as such term is defined in required to be filed by the Company pursuant to Item 601(b)(10) 4 of Regulation Sthe Instructions to Exhibits of Form 20-K of F under the Exchange Act);
(ii) that is with any Contract involving the ten (10) largest customers payment or receipt of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 amounts by the Company or any of its Subsidiaries outside Subsidiaries, or relating to indebtedness for borrowed money or any financial guarantee, of the ordinary course of business pursuant to which the Company or more than US$3,500,000 in any calendar year on its Subsidiaries have material continuing obligationsface;
(viiiii) containing (A) any Contract that contains a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaput, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer call or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess could be required to purchase or sell, as applicable, any equity interests of $1,000,000 during the fiscal year ended January 31, 2024any Person or assets that have a fair market value or purchase price of more than US$100,000;
(xiviv) that is a settlementany Contract relating to the formation, conciliation creation, operation, management or similar control of any joint venture;
(v) any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require between the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement and any director or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities executive officer of the Company or any of its Subsidiaries Person beneficially owning five percent or relating to disposition, voting or dividends with respect to any equity securities more of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be outstanding Shares required to be disclosed under pursuant to Item 404 7B or Item 19 of Regulation SForm 20-K promulgated F under the Exchange Act, ; and
(vi) any non-competition Contract or other than Contract that limits or purports to limit in any Contract solely among material respect the type of business in which the Company and or its wholly-owned Subsidiaries.
(b) Each Contract of Subsidiaries may engage, the type described above in Section 4.15(a), whether of goods or not set forth in Section 4.15(a) of services which the Company Disclosure Scheduleor its Subsidiaries may manufacture, produce, import, export, offer for sale, sell or distribute or the manner or locations in which any of them may so engage in any business or use their assets. Each such Contract described in clauses (i) through (vi) above is referred to herein as a “Material Contract”.”
(b) Except for as would not have, individually or in the aggregate, a Material Contracts that have expired or terminated by their termsAdverse Effect, all (i) each of the Material Contracts are (A) is valid and binding on the Company or the applicable Subsidiary of the Companyits Subsidiaries, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium subject to the Bankruptcy and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity Equity Exception and (ii) as would not, individually there is no breach or in the aggregate, reasonably be expected to have a Company default under any Material Adverse Effect. Neither Contract by the Company nor or any Subsidiary of the Company has, and, its Subsidiaries and to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (has occurred that with or without notice, the lapse of time or both) the giving of notice or both would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with thereunder by the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSubsidiaries.
Appears in 2 contracts
Sources: Merger Agreement (New Horizon Capital Iii, L.P.), Merger Agreement (Exceed Co Ltd.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement, the Confidentiality Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that which is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)SEC) to the Company;
(ii) that is with which constitutes a contract or commitment relating to indebtedness for borrowed money or the ten deferred purchase price of property (10in either case, whether incurred, assumed, guaranteed or secured by any asset) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(viiii) relating which purports to the disposition limit or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting restrict in any material respect (A) the ability of the Company or any Subsidiary of its Subsidiaries to solicit customers or (B) the Company to compete or engage manner in any which, the line of business in which or to compete with the localities in which, all or any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability portion of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation business of the Company and its Subsidiaries, in each caseincluding, that is material to following consummation of the Company transactions contemplated by this Agreement, Parent and its Subsidiaries, taken as a wholecompetes or would compete;
(viiiiv) relating to which would prohibit or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, materially delay the consummation of the Company Offer, the Merger or any Subsidiary of the Company, other transactions contemplated hereby or any guarantee by otherwise materially impair the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary ability of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and perform its Subsidiaries taken as a wholeobligations hereunder;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (yv) which would require the Company or any of its Subsidiaries to pay consideration purchase or procure goods and/or services of more than $1,000,000 after 10,000,000 over the date remaining term of this Agreement such contract (“Supplier Long-Term Agreements”) or that is an agreement for the sale of goods to the Company’s top ten customers based on revenue for the twelve-month period ending on the Balance Sheet Date (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Customer Long-Term Agreements”);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Precision Castparts Corp), Merger Agreement (Titanium Metals Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Section 4.7 of the Company SEC Documents, (ii) for this Agreement and Disclosure Schedule sets forth a list of all of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Material Contracts as of the date hereof and, prior to the date hereof, neither the Company nor any Subsidiary has made available to Parent true copies of each Material Contract and summaries of all oral Company Contracts. For purposes of this Agreement, the Company is a party term “Material Contracts” shall mean with respect to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside Subsidiaries: (i) all Contracts required to be disclosed pursuant to Item 601(b)(10) of Regulation S K of the ordinary course SEC; and (ii) to the extent not included in the foregoing: (A) all Contracts for the future purchase or sale (in each case whether by merger, acquisition, purchase of business pursuant to an equity interest or otherwise) or lease of materials, supplies, merchandise, equipment or other personal property or assets which will involve consideration in excess of $500,000 in the aggregate or for the grant of any preferential right for any such future purchase, sale or lease; (B) all Contracts for the furnishing or receipt of services, the performance of which will involve consideration in excess of $500,000 in the aggregate; (C) all Contracts for the license of any Intellectual Property of the Company or its Subsidiaries have material continuing obligations;
to a third party entered into by the Company or its Subsidiaries; (viiD) containing (A) a covenant all mortgages, pledges, conditional sales contracts, security agreements, factoring agreements or other provision limiting similar agreements with respect to any assets of the Company which involve consideration in excess of $500,000 in the aggregate; (E) all non competition or similar Contracts which restrict in any material respect the ability geographic or operational scope of the Company or any Subsidiary business of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to , or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, the ability of the Company or any Subsidiary and its Subsidiaries, taken as a whole, to enter into new lines of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person business; (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ixF) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent all Contracts relating to borrowed money or other rights in indebtedness; (G) all material distribution, joint venture, partnership, marketing, development or to use Intellectual Propertyfranchise Contracts; (H) granted all Contracts by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues its Subsidiaries guarantee, endorse or otherwise become or are contingently liable for the fiscal year ended January 31debt, 2024 obligation or other liability of any other Person; (I) all Contracts which contain restrictions with respect to payment of dividends or any other distribution in excess respect of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or Company’s capital stock; (CJ) that is otherwise all Contracts which are material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) and which would require restrict the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement from disclosing any information concerning or (z) that subjects the Company or obtained from any of its Subsidiaries to any material ongoing requirements or restrictions other Person (other than ordinary course confidentiality requirements Contracts entered into in the Ordinary Course of Business or restrictions);
(xv) currently enforceable Contracts, to the extent any stockholders’ agreementdisclosure thereof is prohibited thereby, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities currently pending potential sale of all or a substantial portion of the Company whether such sale is pursuant to a merger or any of its Subsidiariesotherwise); or
(xviK) is with an affiliate or other Person that would be required all Contracts referred to in Section 4.8(a)(iii); (L) all Contracts to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) performed relating to capital expenditures of the Company Disclosure Scheduleand/or its Subsidiaries with a value in excess of $500,000 individually in any fiscal year; and (M) all material leases, is referred to herein as a “Material Contract.” Except for Material subleases, licenses and other Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, relating to the Knowledge leased real properties of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than(collectively, in each case, as would not reasonably be expected to have a Material Adverse Effectthe “Leases”).
Appears in 2 contracts
Sources: Merger Agreement (Silicon Storage Technology Inc), Merger Agreement (Microchip Technology Inc)
Material Contracts. (a) Except (i) as for the Original Merger Agreement, the Contracts filed as exhibits to the Company SEC DocumentsReports, (ii) for this Agreement and the other agreements entered into Contracts listed in connection with Subsections (i) through (xxi) of Section 3.16(a) of the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereofOriginal Execution Date, neither the Company nor any Subsidiary none of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business pursuant business) or advance to which (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries extended in the ordinary course of business), or investment in, any person or any Contract relating to the making of any such loan, advance or investment for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of its Subsidiaries have material continuing obligationsof more than US$5,000,000;
(v) any Contract (including so called take-or-pay or keep-well agreements) under which any person (other than the Company or any of its Subsidiaries) has directly or indirectly guaranteed Indebtedness of the Company or any of its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) containing any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(Aviii) any Contract for the acquisition, disposition, sale, transfer or lease (including leases in connection with financing transactions) of properties or assets of the Company or any of its Subsidiaries that have a covenant fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other provision limiting dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person in any geographic area, industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract as a result of the Original Merger Agreement, this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any customary employee non-solicitation payment in excess of US$5,000,000 to be made by the Company or no-hire clauses entered into any of its Subsidiaries in any calendar year or (B) the ordinary course value of businessthe outstanding receivables due to the Company and its Subsidiaries under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right pledging of first refusal or right of first offer or similar right that limits the ability share capital of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) issuance of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which guarantee by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Subsidiaries;
(xivxvi) that is any Contract providing for (A) a settlementlicense, conciliation covenant not to ▇▇▇ or similar Contract (x) with other right granted by any Governmental Authority entered into since February 1, 2021, (y) which would require Third Party under any Intellectual Property to the Company or any of its Subsidiaries Subsidiaries, (B) a license, covenant not to pay consideration of more than $1,000,000 after the date of this Agreement ▇▇▇ or (z) that subjects other right granted by the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Third Party under any Intellectual Property, (other than ordinary course confidentiality requirements or restrictions);
(xvC) an indemnity of any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or relating to dispositionviolation of any Intellectual Property right, voting or dividends with respect (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any equity securities person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the ordinary course of business;
(xvii) any Contract granting rights in respect of exclusivity, “most favored nation” or similar rights;
(xviii) any Contract between or among the Company or any of its Subsidiaries; or, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xvixix) is each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the equity interests (each, an affiliate “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Person Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed under Item 404 if the Form 20-F were filed as of Regulation S-K promulgated under the Exchange ActOriginal Execution Date); or
(xxi) any other Contract which, other than any if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract solely among described in clauses (i) to (xxi) and each such Contract that would be a Material Contract if it had not been filed as an exhibit to the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, SEC Reports is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither : (i) each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Company nor any Subsidiary Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company has, and, to the Knowledge knowledge of the Company, none of the other parties thereto haveno counterparty, violated any provision is or is alleged to be in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts ; (or failures to activ) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, neither the Company nor no person intends to terminate any Subsidiary Material Contract; and (v) none of the Company has received written notice execution of the Original Merger Agreement, the execution of this Agreement or the consummation of any Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the foregoing. To the Knowledge rights of the Company, since February 1, 2021, no counterparty to any Group Company under any Material Contract Contract. The Company has (A) canceled furnished or otherwise terminatedmade available to Parent true and complete copies of all Material Contracts, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Ocean Imagination L.P.), Agreement and Plan of Merger (Ctrip Investment Holding Ltd.)
Material Contracts. (a) Except (iSchedule 5.13(a) as filed as exhibits sets forth all of the following Contracts to which the Company SEC Documents, (ii) for this Agreement and or any of the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Subsidiaries is a party or by which any of them is bound as of the date of this Agreement (collectively and together with any Contracts entered into prior to the Closing in accordance with Section 8.2(b)(xiv) hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:“Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) Contracts with any Seller or any current officer, director or other Affiliate of Regulation S-K any Seller, the Company or any of the Exchange Act)Subsidiaries or any family member of any such Person;
(ii) that is Contracts with the ten (10) largest customers any labor union or association representing any employee of the Company or any of the Subsidiaries and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders written employment or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)severance agreement;
(iii) that is with Contracts for the ten (10) largest vendors sale of any material Assets of the Company and its or any of the Subsidiaries during (other than the fiscal year ended January 31, 2024 (as determined based on cost sale of finished goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into inventory in the ordinary course Ordinary Course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the CompanyBusiness);
(iv) that is a Government ContractContracts relating to any acquisition to be made by the Company or any of the Subsidiaries of any operating business or the capital stock of any other Person (or all or any material portion of the Assets of any business, business unit, facility or Person);
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) Contracts relating to the disposition incurrence of Indebtedness or acquisition the making of any business, equity, or all or substantially all of the assets of loans to any other Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of Subsidiaries;
(vi) Contracts which the ordinary course of business pursuant Company reasonably anticipates will involve the expenditure by or to which the Company or its Subsidiaries have material continuing obligationsof more than $250,000 in the aggregate or require performance by any party more than one year from the date hereof;
(vii) containing (A) any sale and leaseback agreement covering a covenant or other provision limiting in any material respect the ability of the Company Asset or any Subsidiary Contract governing any business arrangement of this nature involving a material Asset;
(viii) any Contract containing covenants limiting the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability freedom of the Company or any of its Subsidiaries to sell, transfer, pledge engage in any line of business or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire compete with any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)Person;
(ix) any hedgingmaterial distribution, swapfranchise, derivativelicense, sales, commission, consulting agency or similar Contractadvertising Contract which (A) involves annual payments, in excess of $50,000 or (B) is not cancelable on thirty (30) calendar days’ notice without payment or penalty;
(x) any licensing agreement or other Contract relating to Intellectual Property Rights that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary operation of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities business of the Company or any of its Subsidiaries as conducted as of the date of this Agreement;
(xi) any joint venture Contract, partnership agreement, limited liability company agreement or relating to dispositionother Contract (however named) involving a sharing of profits, voting losses, costs, or dividends liabilities by the Company or any of its Subsidiaries with any other Person;
(xii) any Contract providing for capital expenditures after the date hereof in an amount in excess of $100,000 individually or in the aggregate;
(xiii) any material written warranty, guaranty or other similar undertaking with respect to contractual performance extended by the Company or any equity securities of its Subsidiaries other than in the Ordinary Course of Business;
(xiv) any Contract with “take or pay” provisions, or “requirements” provisions committing a Person to provide the quantity of goods or services required by another Person which the Company reasonably anticipates will involve aggregate payments by or to the Company or any of its Subsidiaries of more than $500,000;
(xv) any Contract with any foreign sales agents;
(xvi) any Contract with a customer of the Company or any of its SubsidiariesSubsidiaries that provides for pay-on-scan payment terms; orand
(xvixvii) is with any material agency agreement including without limitation material export agency agreements. In addition to the Contracts described in clauses (i) – (xvii) above, the defined term “Material Contract” shall also include all unfulfilled purchase orders (or any series of related purchase orders) involving the purchase or sale of products or services by the Company having an affiliate aggregate value equal to or other Person that would greater than $500,000, which purchase orders shall not be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesdescribed or listed in Schedule 5.13(a).
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 5.13(b), whether neither the Company nor any Subsidiary is in material breach or not set forth in Section 4.15(a) violation of, or default under, any Material Contract, nor has the Company or any Subsidiary received any written notice of, nor does the Company have any Knowledge of, any default or event that with notice or lapse of time, or both, would constitute a default by the Company and the Subsidiaries under any Material Contract, nor, to the Knowledge of the Company Disclosure Scheduleor the Sellers, is referred any other party to herein as a “any Material Contract in breach of or default thereunder (other than in the case of purchase orders issued to the Company for the failure by any third party to pay any amount due and owing thereunder). No party to any of the Material Contracts has exercised any termination rights with respect thereto, and no party has given written notice of any material dispute with respect to any Material Contract.” Except for Material Contracts that have expired or terminated by their terms. The Company has made available to Purchaser true, correct and complete copies of all of the Material Contracts are Contracts, together with all amendments, modifications or supplements thereto. Except as set forth in Schedule 5.13(b), each Material Contract is in full force and effect (Aand will remain in full force and effect upon consummation of the transactions contemplated by this Agreement) and (i) is a valid and binding on agreement of the Company or the applicable Subsidiary of the Companywhich is a party thereto, as the case may be, and, enforceable against such Company or Subsidiary in accordance with its terms and (ii) to the Knowledge of the Company, is a valid agreement of each other party thereto, and (B) enforceable against such party in full force and effectaccordance with its terms, except (i) as in each case where enforceability may be limited by bankruptcy, insolvency, moratorium and insolvency or other similar Applicable Law laws affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, except where enforceability is subject to the Knowledge application of the Companyequitable principles or remedies. Except as specifically noted in Schedule 5.13(b), none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions consent of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has (A) canceled or otherwise terminated, or threatened is required in writing to cancel or otherwise to terminate, its relationship connection with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materiallyexecution, the amount delivery and performance of business that any such counterparty presently engages in or presently conducts with this Agreement by the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectthe Sellers or the consummation of the transactions contemplated by this Agreement.
Appears in 2 contracts
Sources: Stock Purchase Agreement (UCI Holdco, Inc.), Stock Purchase Agreement (United Components Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) except for any Company Real Property Leases, Company Employee PlansBenefit Plans and insurance policies or contracts pursuant to which any Group Company ceded or assumed insurance or reinsurance, as of the date hereofOriginal Agreement Date, neither the Company nor any Subsidiary of the no Group Company is a party to or is bound by any Contractany:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)agreements with Governmental Entities;
(ii) agreements that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders limit or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary purport to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect limit the ability of the Company or any Subsidiary of the Group Company to compete or engage in any line of business or to compete with any other Person or in any geographic areaarea or during any period of time;
(iii) joint venture, partnership, strategic alliance and business acquisition or divestiture agreements;
(iv) agreements to which an Affiliate of any Group Company is a party (other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the agreements solely among one Group Company and its Subsidiariesone or more other Group Companies);
(v) agreements relating to issuances of securities of any Group Company;
(vi) agreements or indentures relating to Indebtedness or undrawn letters of credit;
(vii) leases or agreements under which any Group Company is the lessee of or holds or operates any tangible property, in each caseowned by any other Person, that is material to except for any lease or agreement under which the Company and its Subsidiaries, taken as a wholeaggregate annual rental payments do not exceed $500,000;
(viii) relating leases or agreements under which any Group Company is the lessor of or permits any third party to hold or evidencing indebtedness operate any tangible property, owned or controlled by the Company, except for borrowed money, debt securities, warrants any lease or other rights agreement under which the aggregate annual rental payments do not exceed $500,000;
(ix) contracts that relates to acquire any debt securities, material disposition or acquisition of the Company assets or properties by any Subsidiary of the Group Company, or any merger, amalgamation or business combination with respect to any Group Company;
(x) material agreements containing most favored nations or most favored customer provisions or non-competition or non-solicitation covenants (other than employee non-competition and non-solicitation covenants);
(xi) contracts that provide for the guarantee by the Company or of its Subsidiaries of the obligations any liability of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the other than a Group Company);
(ixxii) any hedgingother contracts that involves the expenditure, swap, derivative, payment or similar Contract;
(x) that receipt of more than $500,000 in the aggregate and is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted not terminable by the Company without penalty on notice of 90 days or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000less;
(xiii) that involves a any material joint venture, profit sharing, partnership capital maintenance or similar agreement from agreements pursuant to which the any Group Company has agreed to contribute capital or surplus to any other Group Company or to any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;third party under specified circumstances and/or maintain such Group Company or third party’s capital or surplus at specified levels; and
(xiv) contracts that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries grant binding authority to any material ongoing requirements or restrictions insurance agent of a Group Company (other than ordinary course confidentiality requirements or restrictionscollectively, with subsections (i) through (xiii);
(xv) any stockholders’ agreement, proxyand together with Company Real Property Leases, voting trust agreement or registration rights agreement or similar agreementsCompany Employee Benefit Plans, arrangements or commitments relating to any equity securities of Group Company IP Agreements, Company Reinsurance Agreements and Company Agent Contracts, the “Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesMaterial Contracts”).
(b) The Company has provided to Parent correct and complete copies of all Company Material Contracts, including any amendments thereto. Each Company Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Group Company, as the case may be, in full force and effect and enforceable in accordance with its terms against such Group Company and, to the Knowledge knowledge of the Company, each other party thereto, and thereto (B) in full force and effect, except (i) as may be limited by subject to applicable bankruptcy, insolvency, reorganization, moratorium and or other similar Applicable Law Laws affecting generally the enforcement of creditors’ rights generally and by subject to general principles of equity and equity). During the past two (ii2) as would notyears, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Group Company has received written notice of any event or condition that constitutes, or, after notice or lapse of the foregoingtime or both, will constitute, any default under or any cancellation of any Company Material Contract, except for defaults that have not been or reasonably would not be expected to be material to any Group Company party to such Company Material Contract. To the Knowledge knowledge of the Company, since February 1there are no events or conditions which constitute, 2021or, after notice or lapse of time or both, will constitute, a default on the part of any party under any Company Material Contract or result in the termination of, or cause or permit the acceleration or other modification of any right or obligation or the loss of any benefit thereunder, and no Group Company or, to the knowledge of the Company, any third party has violated any provision of, or failed to perform any obligation required under the provisions of any Company Material Contract, except for defaults, violations or failures that have not been or reasonably would not be expected to be material to any Group Company party to such Company Material Contract. No Group Company that is party to any Company Material Contract and, to the knowledge of the Company, no counterparty to under any Company Material Contract has (A) canceled is insolvent or the subject of a rehabilitation, liquidation, conservatorship, receivership, bankruptcy or similar proceeding. Neither the execution of this Agreement nor the consummation of the transactions contemplated hereunder shall constitute a default under, give rise to cancellation rights under, or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with adversely affect any of the material rights of any Group Company or under any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 2 contracts
Sources: Agreement and Plan of Amalgamation, Agreement and Plan of Amalgamation (Enstar Group LTD)
Material Contracts. (a) Except (iSection 5.13(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Arch Disclosure Letter sets forth a correct and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, complete list as of the date hereof, neither the Company nor any Subsidiary hereof of all of the Company following types of Contracts used or held for use primarily in or related primarily to the operation or conduct of the Arch Business that are to be transferred to and assumed by the JV Entities as of the Closing Date and to which Arch or any of its Affiliates is a party or to which any of the Arch Contributed Assets or is bound by the Arch Transferred Subsidiaries are subject, in each case other than any Excluded Assets (each, an “Arch Material Contract:”):
(i) that any loan and credit agreement, Contract, note, debenture, bond, indenture, mortgage, security agreement, pledge or other similar agreement pursuant to which any material Indebtedness for borrowed money is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)outstanding or may be incurred;
(ii) that any Contract (other than any coal supply agreement, or purchase order or commitment to sell or offer to sell coal) with a remaining term of more than one year from the date hereof which is with expected to involve the ten (10) largest customers payment of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders an amount in excess of $10,000,000 or statements receipt of work or invoices entered into an amount in excess of $10,000,000 in the ordinary course aggregate over the remaining term of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)such Contract;
(iii) that is with the ten (10) largest vendors any joint venture, partnership or similar organizational Contract involving a sharing of profits or losses related to all or any portion of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Arch Business;
(iv) that is a Government Contractany Contract granting to any Person an option, right of first offer or right of first refusal to purchase or acquire any Arch Contributed Asset (other than purchase options for additional coal volumes);
(v) evidencing any Contract that (A) provides for exclusive rights for the benefit of any third party, (B) grants “most favored nation” status to any third party or (C) requires Arch or any of its Affiliates to provide any minimum level of service, in each case which (1) are, or in a capital expenditure for manner which future payments are required in excess is, material to the Arch Business taken as a whole and (2) may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of $5,000,000its Affiliates of any material penalty;
(vi) relating to any Contract that restricts in any material respect the disposition or acquisition ability of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company Arch or its Subsidiaries have material continuing obligations;
Affiliates (vii) containing (A) a covenant or other provision limiting could restrict in any material respect the ability of the Company or any Subsidiary of the Company JV Entities) to compete or engage in any line of business or to compete with any Person in any geographic areageographical area and which may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of its Affiliates of any material penalty;
(vii) any Contract with a remaining term of more than one year from the date hereof that could require the JV Entities to purchase all (or a specified portion of) their total requirements of any product or service from a third party or that contains “take or pay” provisions and which (A) is expected to involve the payment of an amount in excess of $10,000,000 in the aggregate during the fiscal year ending December 31, 2019 or any future fiscal year and (B) may not be terminated (including such restrictive provisions) by Arch or its Affiliates on less than 90 days’ notice without payment by Arch or any of its Affiliates of any material penalty;
(viii) any Contract relating to the disposition or acquisition by Arch or any of its Affiliates of any material business or any material amounts of assets (other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” with obligations remaining to be performed or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits Liabilities continuing after the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)date hereof;
(ix) any hedging, swap, derivativelease or agreement (including capital lease arrangements) under which Arch or any of its Affiliates is lessee of, or similar Contractholds or operates, any Tangible Personal Property for which the annual rental costs exceed $10,000,000;
(x) that is a license (any coal supply agreement, or a covenantpurchase order or commitment to sell or offer to sell coal, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, with a remaining term of more than three years from the date hereof or (B) pursuant to which the Company with remaining deliverable tonnage of (1) 10,000,000 tons from any mines located in Wyoming that are set forth on Schedule 1.1(a) or (2) 1,500,000 tons from any Subsidiary received licensing revenues for the fiscal year ended January 31mines located in Colorado that are set forth on Schedule 1.1(a);
(xi) any Contract involving swaps, 2024 in excess futures, derivatives or similar instruments, regardless of $1,000,000value, other than non-exclusive licenses granted to customers except such Contracts entered into as a hedging activity in the ordinary course of business, and/or (C) that is otherwise material to the Company business consistent with Arch’s past practice and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeinternal policy guidelines;
(xii) that any Contract pursuant to which a Governmental Authority is a Company Real Property Lease providing tax abatements or other similar economic incentives in connection with remaining obligations in excess of $1,000,000;the Arch Business; and
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) other Contract that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require material to the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesArch Business.
(b) Each Contract of the type described above Arch and its Affiliates have duly performed and complied in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “all material respects with their respective obligations under each Arch Material Contract.” Except for Material Contracts that have expired . None of Arch or terminated by their terms, all any of the Material Contracts are (A) valid and binding on the Company its Affiliates has received any notice of termination or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each default from any other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any such Arch Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021Arch, no counterparty other party to any such Arch Material Contract is in default of its obligations thereunder.
(c) Except as set forth on Section 5.13(c) of the Arch Disclosure Letter, Arch has (A) canceled or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount Peabody true and complete copies of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Arch Material Adverse EffectContract.
Appears in 2 contracts
Sources: Implementation Agreement (Arch Coal Inc), Implementation Agreement (Peabody Energy Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Section 6.1(A)(t)(i) of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Allergan Disclosure Schedule sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each of the Company is a party to or is bound by following Contracts (other than any Contract:
(iAllergan Benefit Plan) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Allergan or any of its Subsidiaries outside is a party or by which it is bound (each such Contract required to be so listed, and each of the ordinary course following types of business Contracts (other than any Allergan Benefit Plan) described below to which Allergan or any of its Subsidiaries becomes a party or by which it otherwise becomes bound after the date of this Agreement, an “Allergan Material Contract”):
(A) each (i) acquisition or divestiture Contract (including any Contracts pursuant to which any member of the Company Allergan Group has transferred or its Subsidiaries have material continuing obligations;
agreed to transfer ownership of any Intellectual Property) and (viiii) containing license (Aincluding any in-license or out-license and any sublicense), collaboration agreement or similar or equivalent Contract, that, in the case of each of clauses (i) and (ii), (x) has a covenant maximum potential value (or which otherwise requires the receipt or making of payments) in excess of $100 million (including pursuant to any “earn-out,” contingent value rights, milestone payments, license fees, royalty payments, development costs or other provision limiting in any material respect the ability of the Company contingent payment or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessvalue obligations), (By) “most favored nation”, “exclusivity” or similar provisions, (C) a right involves the issuance of first refusal or right any Equity Securities of first offer or similar right that limits the ability of the Company Allergan or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after following the date of this Agreement or (z) grants to any Person (other than any member of the Allergan Group) any right of first refusal, right of first negotiation, right of first offer, option to purchase, option to license, or any other similar rights with respect to any Allergan Product or any material Intellectual Property of Allergan;
(B) any Contract with any Governmental Entity that subjects is material to Allergan and its Subsidiaries, taken as a whole, and involving or that would reasonably be expected to involve payments to or from any Governmental Entity in an amount having a maximum potential value in excess of $100 million;
(C) any Contract that (x) limits or purports to limit, in any material respect, the Company freedom of Allergan or any of its Subsidiaries to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material ongoing requirements respect, the freedom of AbbVie or any of its Affiliates to take such actions after the Effective Time, (y) contains exclusivity or “most favored nation” obligations or restrictions (other than ordinary course confidentiality requirements that restrict or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating purport to any equity securities of the Company restrict Allergan or any of its Subsidiaries in any material respect or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time, (z) contains any other provisions materially restricting or purporting to materially restrict the ability of Allergan or any of its Subsidiaries to sell, market, distribute, promote, manufacture, develop, commercialize, test or research any Allergan Products through third parties or that would so limit or purport to limit AbbVie or any of its Affiliates after the Effective Time;
(D) any Contract relating to dispositionthird party indebtedness for borrowed money in excess of $100 million (whether incurred, voting assumed, guaranteed or dividends with respect to secured by any equity securities asset) of the Company Allergan or any of its Subsidiaries; or;
(xviE) is with an affiliate any Contract restricting Allergan or any of its Subsidiaries from (x) the payment of dividends (y) the making of distributions to shareholders or (z) the ability to repurchase or redeem Equity Securities;
(F) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization, research, development or other Person that would be required similar agreement, which is material to be disclosed under Item 404 the Allergan Group, taken as a whole;
(G) any Contracts or other transactions with any (A) executive officer or director of Regulation S-K Allergan, or (B) affiliate (as such term is defined in Rule 12b-2 promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.associates” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice members of any of the foregoing. To the Knowledge their “immediate family”) (as such terms are respectively defined in Rule 12b-2 and Rule 16a-1 of the Company, since February 1, 2021, no counterparty to any Material Contract has (AExchange Act) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in executive officer, director or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.beneficial owner;
Appears in 2 contracts
Sources: Transaction Agreement, Transaction Agreement
Material Contracts. Section 2.10 of the Company Disclosure Schedule is a correct and complete list of the following currently effective Company Contracts (each, a “Company Material Contract” and, collectively, “Company Material Contracts”):
(a) Except (i) as filed as exhibits to each Company Contract that constitutes the Company SEC Documents, (ii) for this Agreement Leases and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Ancillary Lease Documents;
(iib) that is with each Company Contract for the ten (10) largest customers purchase of the Company and its Subsidiaries during the fiscal year ended January 31materials, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementssupplies, data processing agreementsgoods, purchase orders services, equipment or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure assets for which future annual payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business of, or pursuant to which in the last year the Company or any of its Subsidiaries paid, in the aggregate, $500,000 or more;
(c) each Company Contract for the sale of materials, supplies, goods, services, equipment or other assets for annual payments to the Company of, or pursuant to which in the last year the Company or any of its Subsidiaries received, in the aggregate, $500,000 or more;
(d) each Company Contract that relates to any partnership, joint venture, strategic alliance or other similar Contract;
(e) each Company Contract relating to Indebtedness for borrowed money or the deferred purchase price of property (whether incurred, assumed, guaranteed or secured by any asset), except for Contracts relating to Indebtedness in an amount not exceeding $500,000 in the aggregate;
(f) each Company Contract that provides for any employment, severance, retention, transaction bonus, change in control, consulting or other similar agreement between: (i) the Company or any of its Subsidiaries, on the one hand, and (ii) any employee, director or other individual service provider of the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or Subsidiaries, on the other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areahand, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) such Contract that is terminable “most favored nation”, “exclusivityat will” or similar provisions, (C) a right without any obligation in excess of first refusal or right of first offer or similar right that limits $100,000 on the ability part of the Company or any of its Subsidiaries to sellmake any severance, transferbonus, pledge termination, change in control or otherwise dispose similar payment or to provide any other benefit with a value in excess of assets, rights or properties or $100,000 (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material than benefits required to the Company and its Subsidiaries, taken as a wholebe provided by applicable Law);
(viiig) relating to each Company Contract which by its terms limits in any respect (i) the localities in which all or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, significant portion of the business and operations of the Company or any Subsidiary Affiliate of the CompanyCompany (which will include Parent after the Effective Time), or any guarantee by (ii) the Company or right of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary Affiliate of the Company (Awhich will include Parent after the Effective Time) on an exclusive basisto compete with any Person;
(h) each Company Contract in respect of any Company Intellectual Property that provides for annual payments of, (B) on a non-exclusive basis, if or pursuant to which in the Company or any Subsidiary made payments during the fiscal last year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues paid or received, in excess of the aggregate, $1,000,000 during the fiscal year ended January 31, 2024500,000 or more;
(xivi) that is a settlementeach Company Contract containing any royalty, conciliation dividend or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require arrangement based on the revenues or profits of the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Subsidiaries;
(xvj) each Company Contract with any stockholders’ agreement, proxy, voting trust agreement Governmental Authority;
(k) each Company Contract with (a) an executive officer or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities director of the Company or any of its Subsidiaries or any of such executive officer’s or director’s immediate family members, (b) an owner of more than five percent (5%) of the voting power of the outstanding capital stock of the Company, or (c) to the Knowledge of the Company, any “related person” (within the meaning of Item 404 of Regulation S-K under the Securities Act) of any such officer, director or owner (other than the Company or any of its Subsidiaries);
(l) each Company Contract that gives rise to any material payment or benefit as a result of the performance of this Agreement or any of the other Contemplated Transactions;
(m) each Company Contract relating to dispositionthe acquisition or disposition of any material interest in, voting or dividends with respect to any equity securities material amount of, property or assets of the Company or any of its SubsidiariesSubsidiaries or for the grant to any Person of any preferential rights to purchase any of its assets, other than in the Ordinary Course of Business; or
(xvin) is with an affiliate any other each Company Contract (or other Person that would be required group of related agreements) the performance of which requires aggregate payments to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among or from the Company or any of its Subsidiaries in excess of $500,000. The Company has delivered or made available to Parent accurate and its wholly-owned Subsidiaries.
complete (bexcept for applicable redactions thereto) Each Contract copies of the type described above all Company Material Contracts, including all amendments thereto. There are no Company Material Contracts that are not in Section 4.15(a), whether or not written form. Except as set forth in on Section 4.15(a) 2.10 of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on neither the Company or the applicable nor any Subsidiary of the CompanyParent has, as the case may be, andnor, to the Knowledge of the Company, each any other party theretoto a Company Material Contract, and (B) has breached, violated or defaulted under, or received notice that it has breached, violated or defaulted under, any of the material terms or conditions of any Company Material Contract in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) such manner as would notpermit any other party to cancel or terminate any such Company Material Contract, individually which has had or in the aggregate, would reasonably be expected to have a Company Material Adverse Effect. Neither As to the Company nor any Subsidiary and its Subsidiaries, as of the date of this Agreement, each Company hasMaterial Contract is valid, andbinding, enforceable and in full force and effect, subject to: (i) Laws of general application relating to bankruptcy, insolvency and the Knowledge relief of debtors; and (ii) rules of Law governing specific performance, injunctive relief and other equitable remedies. The consummation of the Company, none Contemplated Transactions will not (either alone or upon the occurrence of additional acts or events) result in any material payment or payments becoming due from the other parties thereto have, violated Company or the Surviving Corporation to any provision of, Person under any Company Material Contract or committed give any Person the right to terminate or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, materially alter the provisions of any Company Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Merger Agreement (Emmaus Life Sciences, Inc.), Merger Agreement (MYnd Analytics, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Schedule 5.14 sets forth a correct list as of the date hereof, neither hereof of all of the Company nor Contracts of the following types to which any Subsidiary of the Company Entities is a party to or by which any of the Company Entities or their respective properties or assets is bound by any Contractor receives a benefit under:
(ia) that is all Contracts providing for a “merger, consolidation, acquisition or sale of all or a material contract” (to the Company Entities, taken as such term is defined in Item 601(b)(10a whole) of Regulation S-K portion of the Exchange Actassets of, or other extraordinary transaction in respect of, any Company Entity with or to any other Person, or any material capital investment in any Person, in each case entered into since January 1, 2017 or pursuant to which any Company Entity has any ongoing indemnification or other similar surviving obligations;
(b) any Contract (other than purchase orders or sales orders) entered into with a customer or supplier which involves the payment or receipt of an amount in excess of Five Million Dollars ($5,000,000) per annum (measured by the trailing (12) month period ending on the Interim Balance Sheet Date) and which cannot be terminated within ninety (90) days;
(c) for the purchase of materials, supplies, goods, services, equipment or other assets, which is with a Material Supplier (other than purchase orders);
(iid) that for the sale or license by a Company Entity of materials, supplies, goods, services, equipment or other assets, which is with the ten a Material Customer (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesthan sales orders);
(iiie) that is with the ten (101) largest vendors requires a Company Entity to purchase its total requirements of the Company and its Subsidiaries during the fiscal year ended January 31any product or service from a third party or that contains “take or pay” provisions, 2024 (as determined based on cost of goods and services paid 2) contains a “most-favored-nation” clause or similar term that provides preferential pricing or treatment to such vendors by the Company during such time periodany third party, (3) (excluding contains any non-disclosure agreements, data processing agreements, purchase orders competition or statements non-solicitation covenant by a Company Entity in favor of work another Person or invoices entered into in otherwise limits the ordinary course freedom of business, and other similar Contracts that are ancillary a Company Entity to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business in any area or to compete with (4) grants any Person in any geographic areaan option or a first refusal, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar preferential right to purchase or acquire any assets of any Company Entity;
(f) that limits is with a Governmental Authority;
(g) that is between a Company Entity, on the ability one hand, and any Related Party or EIS, on the other hand (each, an “Affiliate Agreement”);
(h) any credit agreement, loan agreement or indenture relating to Indebtedness of a Company Entity;
(i) any Contract under which the Company Entities have permitted any material asset to become encumbered by a Lien (other than a Permitted Lien);
(j) that provides for, directly or indirectly, the establishment or operation or a partnership or joint venture, or otherwise involves a sharing of profits, losses, costs or liabilities with any Person;
(k) pursuant to which a Company Entity effected any compromise or settlement of any Proceeding since the Interim Balance Sheet Date;
(l) the primary purposes of which is the indemnification of any other Person by a Company Entity;
(m) that provides for a retention, severance, change in control or sale bonus payment in excess of One Hundred Thousand Dollars ($100,000) (or would provide for such bonus subject to the satisfaction of any conditions or contingencies) and any Company Retention Bonus Agreements;
(n) (A) that is a written Contract for the employment of any Employee located outside of the Company United States (i) with annual base salary and target annual cash bonus in excess of $150,000; (ii) that is not terminable at will or any upon notice of its Subsidiaries sixty (60) days or less for a cost (exclusive of costs arising prior to sell, transfer, pledge or otherwise dispose termination) of assets, rights or properties less than $200,000; or (Diii) that would result in any payments to such person upon consummation or solely as a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation result of the Merger; (B) that is a written Contract for the employment of any Employee located in the United States (x) with an annual base salary in excess of $150,000; (y) that is not terminable at will; or (z) that would result in any payments to such individual upon the consummation or as a result of the Merger (either alone or in combination with another event);
(o) any Contract providing for a license to a Company and its SubsidiariesEntity of Company Licensed Intellectual Property (other than licenses of commercially available Software licensed under a click-wrap or shrink-wrap license or subscription agreement, in each case, that is material to on a non-exclusive basis and having an annual license, subscription or maintenance fee of $250,000 or less in the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyaggregate);
(ixp) any hedging, swap, derivativelease or agreement under which a Company Entity is lessee of, or similar Contractholds or operates any personal property owned by any other party, for which the annual rent exceeds $250,000;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (Bq) pursuant to which a Company Entity has made or may make a capital investment in, loan to, acquisition or divestiture of the Equity Interests or assets of, any Person, or the acquisition or divestiture of any business or third Person; and
(r) any Contract providing for a license by a Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess Entity of $1,000,000, Company Owned Intellectual Property to a third party (other than non-exclusive licenses granted to a Company Entity’s, resellers and end-user customers in connection with the sale, distribution or use of a Company Entity’s products and services in the ordinary course of business). The Company has provided to Purchaser a true and complete copy (or, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities oral Contract, a written summary of the Company material terms and conditions of such oral Contract) of each Contract set forth or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aon Schedule 5.14 (including all amendments, modifications, exhibits and schedules) of (collectively with the Company Disclosure ScheduleReal Property Leases, is referred to herein as a the “Material Contract.” Except for Contracts”). Each Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) Contract is in full force and effecteffect and constitutes a legal, except (i) as may be limited by bankruptcyvalid, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles binding obligation of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Entity, and to the Company’s Knowledge, the other party or parties thereto, enforceable against such Company Entity, and to the Company’s Knowledge, such other party or parties in accordance with its terms, subject to the Enforceability Limitations. The Company Entities have performed or complied with all material covenants and obligations under each Material Adverse Effect. Neither Contract, and neither the Company nor any Subsidiary of the Company has, andEntities nor, to the Knowledge of the Company’s Knowledge, none of the any other parties thereto have, violated any provision ofparty to a Material Contract is in, or committed is alleged to be in, material breach of or failed to perform any act underdefault under such Material Contract, and no nor has there occurred an event or condition exists, which (that with or without notice, lapse the passage of time or giving of notice (or both) would constitute such a material breach of or default underby a Company Entity or to the Company’s Knowledge, the provisions of any other party to such Material Contract, except in each case for those violations, acts (or failures . No party to act) and defaults which, individually or in the aggregate, would not reasonably be expected a Material Contract has provided notice to have a Company Material Adverse Effect and, as of February 1, 2021, Entity that it plans to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to terminate any Material Contract has (A) canceled or otherwise terminatedor, or threatened if in writing (or to cancel or otherwise to terminatethe Company’s Knowledge, oral), materially reduce its relationship business with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEntities.
Appears in 2 contracts
Sources: Merger Agreement (Zurn Water Solutions Corp), Merger Agreement (Zurn Water Solutions Corp)
Material Contracts. (a) Except (iSection 4.14(a) as filed as exhibits of the Purchaser Disclosure Schedule sets forth a list of each of the following Contracts to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planswhich, as of the date hereofof this Agreement, neither the Company nor Purchaser or any Subsidiary of the Company its Subsidiaries is a party to or is bound by any (each, a “Purchaser Material Contract:”):
(i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActSEC as determined as of the date of this Agreement);
(ii) that is with each Contract (A) not to (or otherwise restricting or limiting the ten (10) largest customers ability of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Purchaser or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(viito) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation area or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits to restrict the ability of the Company Purchaser or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, conduct business in each case, that is material to the Company and its Subsidiaries, taken as a wholeany geographic area;
(viiiiii) relating to each Contract (other than any Purchaser Benefit Plan) providing for or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company resulting in payments by Purchaser or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries that exceeded $250,000 in the calendar year ended December 31, 2023, or that is reasonably likely to require, during the remaining term of the obligations such Contract, annual payments by Purchaser or any of its Subsidiaries that exceed $250,000;
(iv) all Contracts granting to any Person an option or a first refusal, first offer, or similar preferential right to purchase or acquire any Purchaser Assets;
(v) all material Contracts (A) for the granting or receiving of a license, sublicense or franchise (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and including any of its wholly-owned Subsidiaries or between or among such Contracts relating to any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by providing for or resulting in payment over $250,000 per year or (B) under which any Person is obligated to pay or has the Company right to receive a royalty, license fee, franchise fee or any Subsidiary similar payment in which it is reasonably expected to pay or receive a royalty, license fee, franchise fee or similar payment over $250,000, in each case of the Company to Company Intellectual Property clause (A) on an exclusive basis, and (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000), other than agreements with employees, non-exclusive licenses granted to customers in the ordinary course of businessPurchaser’s or its Subsidiaries’ customers, and/or (C) and non-exclusive licenses to commercially available, off-the-shelf Software that is otherwise material to the Company and its Subsidiaries taken as a wholehave been granted on standardized, generally available terms;
(xivi) that is a license (or a covenantall partnerships, consent joint ventures, or other rights in similar agreements or to use Intellectual Propertyarrangements;
(vii) any agreement with any director, officer, or stockholder of Third Party Rights granted to the Company Purchaser or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) thereof that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed described under Item 404 of Regulation S-K promulgated under of the Exchange ActSEC in the Purchaser SEC Reports;
(viii) any agreement relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed, or secured by any asset), except any such agreement with an aggregate outstanding principal amount not exceeding $1,000,000;
(ix) any agreement for the disposition or acquisition by Purchaser or any of its Subsidiaries with material obligations of Purchaser or any of its Subsidiaries (other than confidentiality obligations) remaining to be performed, or material Liabilities of Purchaser or any Contract solely among of its Subsidiaries continuing, after the Company and its wholly-owned Subsidiariesdate of this Agreement, of any material business or any material amount of assets other than in the ordinary course of business;
(x) any agreement restricting or limiting the payment of dividends or the making of distributions to stockholders, including intercompany dividends or distributions other than such restrictions or limitations that are required by applicable Law; and
(xi) all material agreements with any Governmental Authority.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a4.14(b) of the Purchaser Disclosure Schedule sets forth all Contracts granting to any Person an option or a first refusal, first offer, or similar preferential right to purchase or acquire any material assets of Purchaser, a true and complete copy of which have been made available to the Company.
(c) A true and complete copy of each Purchaser Material Contract (including any related amendments) entered into before the date of this Agreement has been filed as an exhibit (by reference or otherwise) to the Purchaser Annual Report on Form 20-F for the fiscal year ended December 31, 2023, filed with the SEC on April 30, 2024, or disclosed by Purchaser in a subsequent Purchaser SEC Report or made available to the Company Disclosure Schedule, before the date of this Agreement. Each Purchaser Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company agreement of Purchaser or the its applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effectSubsidiary, except (i) as may where the failure to be limited by bankruptcy, insolvency, moratorium valid and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as binding would not, individually or in the aggregate, reasonably be expected to have a Company Purchaser Material Adverse Effect. Neither the Company nor any Except as would not be material to Purchaser, (i) neither Purchaser or such Subsidiary of the Company has, andnor, to the Knowledge of the CompanyPurchaser, none of the any other parties thereto haveparty, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a is in breach of or default under, the provisions of under any such Purchaser Material Contract, except in each case for those violations, acts (or failures to actii) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1the date of this Agreement, 2021, to the Knowledge there are no material disputes concerning any such Purchaser Material Contract and (iii) as of the Companydate of this Agreement, neither the Company nor no party under any Subsidiary of the Company Purchaser Material Contract has received given written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty its intent to any Material Contract has (A) canceled terminate or otherwise terminated, or threatened in writing seek a material amendment to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Purchaser Material Adverse EffectContract.
Appears in 2 contracts
Sources: Stock Purchase Agreement (Fusion Fuel Green PLC), Stock Purchase Agreement (Ilustrato Pictures International Inc.)
Material Contracts. (a) Except Other than (i) as filed as exhibits to the Company SEC DocumentsReal Property Leases, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and Company Plans, (iii) for Company Employee PlansContracts listed on Schedule 4.16(a) and 4.16(b) and (iv) Intellectual Property Licenses, Schedule 4.11(a) lists, as of the date hereof, neither all of the Company nor any Subsidiary of following executory contracts to which the Company is a party or by which its assets are bound (the "Material Contracts"):
(1) individual Contracts with customers with respect to which the Company billed more than $100,000 during 1999;
(2) any individual Contract which is an exclusive dealing, requirements or take or pay agreement involving expenditures in excess of $50,000 during 1998;
(3) Contracts not listed or required to be listed pursuant to Section 4.11(a)(2) which provide for aggregate future annual payments by the Company of more than $100,000, except for purchase orders or sales orders arising in the ordinary and usual course of business, in which case they are listed only if any party thereto is bound obligated to make payments pursuant thereto aggregating more than $200,000;
(4) Contracts which establish a partnership, joint venture, material agency or other similar arrangement;
(5) any Contract which relates to indebtedness for borrowed money in excess of $50,000 or the deferred purchase price of property (whether incurred, assumed, guaranteed or secured by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Actasset);
(ii6) any Contract which provides for future payments that is with the ten (10) largest customers are conditioned on or result from, in whole or in part, a change of control of the Company or a change of management of the Company;
(7) any Contract which relates to marketing, sales or advertising and its Subsidiaries during provides for aggregate future payments of more than $100,000;
(8) any Contract under which the fiscal year ended January 31Company has guaranteed the obligations of any Person, 2024 agreed to indemnify any Person (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business), and other similar Contracts that are ancillary or agreed to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)share Tax liability with any Person;
(iii9) that is with any Contract which relates to the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors acquisition by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all of the capital stock or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsanother Person;
(vii10) containing (A) a covenant or other provision limiting in any material respect Contract which restricts the ability of the Company or any Subsidiary right of the Company to compete or engage in any line of business or to compete way with any other Person, or which contains covenants pursuant to which any non-natural Person has agreed not to compete, or otherwise restricts a non-natural Person's ability to engage freely, in any geographic area, part of the Company Business;
(11) any Contract not disclosed herein or not otherwise required to be disclosed pursuant to this Schedule 4.11 which provides for annual payments in excess of $100,000 which extends more than a year from the date hereof and is not cancelable by the Company on 30 days' written notice without penalty;
(12) any Contract which provides for the sale or lease after the date hereof of any of the assets of the Company other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, ; and
(B13) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of any Contract which binds the Company to make payments to any director or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary former director of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 2 contracts
Sources: Purchase Agreement (Insilco Holding Co), Purchase Agreement (Insilco Corp/De/)
Material Contracts. (a) Except (i) as filed as exhibits to Section 5.1(j) of the Company SEC Documents, (ii) for this Agreement Disclosure Schedule sets forth a true and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereofof this Agreement, neither of each of the following types of Contracts (excluding (x) Benefit Plans and (y) Contracts among the Company nor and any Subsidiary wholly-owned Subsidiaries of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation Samong wholly-K owned Subsidiaries of the Exchange Act);
(iiCompany) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party as of the ordinary course date of business pursuant this Agreement (such type of Contracts, regardless when entered into, being herein referred to which as the “Material Contracts”) (it being understood that such Section 5.1(j) of the Company Disclosure Schedule may exclude Contracts filed as exhibits to any forms, statements, reports or documents filed or furnished to the SEC, but that such Contracts shall constitute Material Contracts to the extent that they would fall within any of clauses (A) through (I) below):
(A) each Contract or series of related Contracts requiring or reasonably likely to result in payment by the Company and any of its Subsidiaries of consideration in excess of $100,000,000 in any fiscal year;
(B) each Contract requiring or reasonably likely to result in payments to the Company and its Subsidiaries in excess of $100,000,000 in any fiscal year;
(C) each Contract or series of related Contracts evidencing Indebtedness of the Company or any of its Subsidiaries (other than intercompany Indebtedness owed by the Company or any wholly-owned Subsidiary) having an outstanding principal amount in excess of $100,000,000 individually and each Contract creating or resulting in the creation of any Encumbrance on any assets of the Company or any of its Subsidiaries securing Indebtedness in an amount in excess of $100,000,000 individually;
(D) each Contract with any Governmental Entity (including any subcontract with a prime contractor or other subcontractor who is a party to any such Contract) involving or reasonably likely to involve payments in excess of $150,000,000 per fiscal year;
(E) each Contract containing covenants binding upon the Company or its Subsidiaries have material continuing obligations;
that (viiI) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits expressly restricts the ability of the Company or any of its Subsidiaries to sell(or which, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation following the consummation of the Merger, would expressly restrict the ability of the Surviving Corporation or its Affiliates) to compete in any business or geographic area in a manner material to the Company (or the Surviving Corporation) and its Subsidiaries, taken as a whole or (II) grants “most favored nation” status in each case, that is a manner material to the Company and its Subsidiaries, taken as a whole, and that, following the Merger, would apply to Parent and its Subsidiaries;
(viiiF) relating each Contract: (I) pursuant to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights which a third party has granted to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries a commercial right to use, practice under or sublicense, or a covenant not to ▇▇▇ under, any Intellectual Property Rights that are material to the conduct of the obligations business of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and its Subsidiaries, taken as a whole, other than any non-exclusive license entered into the ordinary course of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
business for commercially available Intellectual Property Rights; (ixII) any hedging, swap, derivative, or similar Contract;
(x) that is pursuant to which a license (or a covenant, consent or other rights in or third party has granted to use Intellectual Property) granted by the Company or any Subsidiary of its Subsidiaries a commercial right to use any Germplasm or any other biological material used in the development of, or incorporated in, seed varieties, including microorganisms and plasmids (“Biological Materials”) that is material to the conduct of business of the Company to Company Intellectual Property and its Subsidiaries, taken as a whole; (A) on an exclusive basis, (BIII) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as has granted a whole;
(xi) that is third party a license (commercial right to use, practice under or sublicense, or a covenantcovenant not to ▇▇▇ under, consent any material Owned Intellectual Property (excluding, however, any licenses to growers, seed companies or other rights distributors under Contracts for which the material terms are substantially consistent with the terms provided in or to use Intellectual Property) a standard contract template of Third Party Rights granted to the Company or any a Subsidiary of the Company for the applicable crop and geographic area); (AIV) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) has granted a third party a right to develop any Germplasm or Biological Materials for commercial use that is material to the conduct of business of the Company and its Subsidiaries, taken as a settlement, conciliation whole; or similar Contract (xV) with any Governmental Authority entered into since February 1, 2021, (y) pursuant to which would require the Company or any of its Subsidiaries has granted a third party a current or contingent right (including options or rights of first refusal) to pay consideration acquire ownership of, or an exclusive license to, any material Owned Intellectual Property;
(G) each Contract between or among the Company or any of its Subsidiaries, on the one hand, and any director, officer, stockholder holding five (5) percent or more than $1,000,000 after of any class of outstanding equity securities of the date Company or, to the Company’s Knowledge, any Affiliate of this Agreement or such Person, on the other hand;
(zH) that subjects each Contract to which the Company or any of its Subsidiaries to is a party providing for any material ongoing requirements joint venture or restrictions (other than ordinary course confidentiality requirements or restrictions);material joint arrangement; and
(xvI) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person each Contract that would be required to be disclosed under filed as an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 404 601(b)(10) of Regulation S-K promulgated under the Exchange Securities Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein previously filed as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty an exhibit to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectReport.
Appears in 2 contracts
Sources: Merger Agreement, Merger Agreement (Monsanto Co /New/)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as set forth on Section 3.16 of the date hereofDisclosure Schedule, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contract:
any: (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
collective bargaining agreement or contract with any labor union; (ii) that bonus, pension, profit sharing, retirement or other form of deferred compensation plan; (iii) stock purchase, stock option, stock appreciation or similar plan; (iv) contract for the employment of any officer, individual employee or other person on a full-time or consulting basis involving an annual compensation commitment by the Company or a Subsidiary in excess of $200,000; (v) agreement or indenture relating to the borrowing of money in excess of $1,000,000 or to mortgaging, pledging or otherwise placing a Lien (other than a Permitted Lien (as defined herein)) on any material portion of the Company's assets; (vi) guaranty of any obligation for borrowed money in excess of $1,000,000; (vii) lease or agreement under which it is lessee of, or holds or operates any personal property owned by any other party, for which the annual rental exceeds $250,000, (viii) contract or group of related contracts with the ten same party for the purchase of inventories, supplies or services, under which the undelivered balance of such inventories, supplies or services has a selling price in excess of $1,000,000; (10ix) largest customers contract or group of related contracts with the same party for the sale of products or services under which the undelivered balance of such products or services has a sales price in excess of $1,000,000; (x) agreement pertaining to Intellectual Property (as hereinafter defined) including, license agreements or similar arrangements; or (xi) contract which prohibits or materially limits the Company or a Subsidiary in any material respect from freely engaging in business in the United States or anywhere else in the world (all such contracts and agreements, "Material Contracts"). The Company has provided or made available to ICS (i) true and complete copies of all written Material Contracts, or (ii) with respect to such Material Contracts that have not been reduced to writing, a written description thereof, each of which is listed on Section 3.16 of the Disclosure Schedule. Neither the Company and nor any of its Subsidiaries during is, or has received any notice or has any knowledge that any other party is, in default in any respect under any such Material Contract, except for those defaults which would not reasonably be likely, either individually or in the fiscal year ended January 31aggregate, 2024 to have a Material Adverse Effect with respect to the Company; and there has not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a material default. For purposes of this Agreement, "Permitted Liens" shall mean (as determined based on revenue received from such customers during such time periodi) Liens for Taxes (excluding any non-disclosure agreementsother than those pursuant to Section 412 of the Code) or governmental assessments, data processing agreementscharges or claims, purchase orders the payment of which is not yet due, or statements for Taxes, the validity of work which are being contested in good faith by appropriate proceedings; (ii) statutory Liens incurred in the ordinary course of business for sums not yet due or invoices entered into being contested in good faith; (iii) Liens relating to deposits made in the ordinary course of business, ; and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for Liens which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or do not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither aggregate materially interfere with or materially impair the Company nor any Subsidiary conduct of the Company hasBusiness as it is currently being conducted, andor the value, to the Knowledge marketability, use or ownership of the Company, none of the other parties thereto have, violated any provision of, or committed or failed asset to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectit attaches.
Appears in 2 contracts
Sources: Merger Agreement (Integrated Circuit Systems Inc), Merger Agreement (Microclock Inc)
Material Contracts. (a) Except (iSchedule 3.12(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansSeller Disclosure Letter sets forth, as of the date hereof, neither the Company nor any Subsidiary a list of all of the Company following Contracts that relate primarily to the Business or are necessary for the operation of the Business, in each case, to which a Seller or a Conveyed Entity is a party to party, or is bound by any Contract:
that has been entered into on behalf of the Business (i) collectively, together with each such Contract that is entered into after the date of this Agreement, the “Material Contracts”; and each a “material contract” Material Contract”), materially correct and complete copies of which (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices for Business Products entered into in the ordinary course of businessthe Business) have been made available to Purchaser:
(i) each equipment lease or other lease of personal property which entails annual rental payments in excess of $250,000 per annum or $500,000 in the aggregate;
(ii) each Contract for goods and/or services (including any intercompany Contracts) by and between any of the Sellers and/or the Conveyed Entities and/or any of their Affiliates (other than the Business) and/or any of the officers, directors or employees of either Seller or the Conveyed Entities and/or any of their Affiliates (other than the Business), on the one hand, and the Business, on the other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)hand;
(iii) that is with the ten each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee (10excluding items set forth in Schedule 3.15(b) largest vendors of the Company and its Subsidiaries during Seller Disclosure Letter) in respect of Indebtedness of the fiscal year ended January 31, 2024 (as determined based on cost Conveyed Entities or the Business in excess of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$250,000;
(iv) each customer, distribution, reseller or sales representative Contract expected to result in payment to the applicable Conveyed Entity or any other Person on behalf of the Business in excess of $1,000,000 per annum or that is a Government Contracthave resulted in such payments in excess of $2,000,000 in the aggregate over the last three years;
(v) evidencing each Contract with a capital expenditure for which future payments are required Governmental Authority expected to result in payment to a Conveyed Entity in excess of $5,000,000100,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all each Contract with vendors (including OEMs) of the assets of any Person for aggregate consideration Business expected to result in payment by the applicable Conveyed Entity in excess of $5,000,000 by 1,000,000 per annum or that have resulted in such payments in excess of $2,000,000 in the Company or any of its Subsidiaries outside of aggregate over the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationslast three years;
(vii) containing each Contract relating to capital expenditures and involving similar future payments in excess of $250,000 individually or $500,000 in the aggregate;
(Aviii) a covenant each Contract relating to the disposition of material assets of the Business or other provision limiting the acquisition or disposition of any assets or any interest in any material respect Person or business enterprise;
(ix) each Contract limiting the ability of any Conveyed Entity or the Company or any Subsidiary of the Company to compete or engage in any line of business or Business to compete with any Person in Person;
(x) each material joint venture Contract;
(xi) each Intellectual Property License;
(xii) each employment Contract, consulting Contract and severance agreement with any geographic areadirector, other than any customary officer or employee non-solicitation of either Seller or no-hire clauses entered into in its Affiliates, Tyco or its Affiliates or the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesConveyed Entities, in each case, that engaged primarily in the Business, which is material likely to the Company and its Subsidiaries, taken as a whole;
(viii) relating to involve payments by or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, on behalf of the Company Seller or any Subsidiary its Affiliates, Tyco or its Affiliates or the Conveyed Entities in excess of the Company$150,000 per year, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property including Contracts (A) on an exclusive basisto employ or terminate executive officers or other key personnel (including key engineering staff), (B) with such present or former officers or directors pursuant to which the Company Conveyed Entities or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or Business has current Liabilities or (C) that is will result in the payment by, or the creation of any Liability to pay on behalf of the Conveyed Entities, the Business or the Purchaser any severance, termination, “golden parachute,” or other similar payments to any such present or former employees following termination of employment or otherwise material as a result of the consummation of the transactions contemplated by Transaction Documents, provided that the information relating to the Company and its Subsidiaries taken foregoing shall be as a whole;
(xi) that is a license (or a covenant, consent or other rights of the date specified in or to use Intellectual PropertySchedule 3.12(a) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000Seller Disclosure Letter;
(xiii) that involves a material joint venture, profit sharing, partnership each collective bargaining Contract or similar agreement from which the Company Contract, including any Contract with any union, works council or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024similar labor entity;
(xiv) that is a settlement, conciliation each Contract of indemnification or similar Contract hold harmless agreement (x) including with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries respect to any material ongoing requirements director, officer or restrictions (other than ordinary course confidentiality requirements employee of either Seller or restrictionsits Affiliates, Tyco or its Affiliate or the Conveyed Entities, in each case, engaged primarily in the Business);
(xv) each power of attorney granted by any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities Conveyed Entity that is effective and outstanding as of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiariesdate hereof; orand
(xvi) is with an affiliate or each other Person that Contract, the loss of which would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiarieshave a Material Adverse Effect.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(aon Schedule 3.12(a) of the Company Seller Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsLetter, all notices, approvals and consents that were agreed by the parties to the Tyco Agreement to be given or obtained pursuant to that agreement have been properly given or obtained as required by each Material Contract in order to validly assign, transfer or convey each such Contract to Sellers or the Conveyed Entities. Except as set forth on Schedule 3.12(a) of the Seller Disclosure Letter, each Material Contracts are (A) Contract is in full force and effect and is a valid and binding on the Company or the applicable Subsidiary agreement of each of the CompanyConveyed Entities (or, as applicable, the case may be, Affiliate of the Conveyed Entities party thereto) and, to the Knowledge of the CompanySellers, each any other party theretoto any such Contract; and there exists no breach, and (B) in full force and effectviolation, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles default or event of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which default (with or without notice, lapse of time or both) would constitute by the applicable Seller or a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021Conveyed Entity or, to the Knowledge of the CompanySellers, neither the Company nor any Subsidiary of the Company has received written notice other party to any such Contract, with respect to any term or provision of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other thanContract, in each case, as which would not reasonably be expected to have a Material Adverse Effect.
(c) There are no warranty claims or other uninsured claims pending or, to the Knowledge of Sellers, threatened against any of the Sellers, the Conveyed Entities or the Business under any Contracts which might involve a material monetary Liability which is not reserved against in the Balance Sheet.
Appears in 2 contracts
Sources: Purchase Agreement (M/a-Com Technology Solutions Holdings, Inc.), Purchase Agreement (M/a-Com Technology Solutions Holdings, Inc.)
Material Contracts. (a) Except (iSchedule 5.3(a) as filed as exhibits to lists each of the Company SEC Documents, (ii) for this Agreement following contracts and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary Venture or of Marigold on behalf of the Company is a party to or is bound by any Contract:Venture (the “Material Contracts”):
(i) any service or supply of goods agreement, license agreement or technology agreement that is a “material contract” requires, in accordance with its terms, payments in excess of $500,000 in any twelve-month period and which may not be cancelled on thirty (as such term is defined in Item 601(b)(1030) of Regulation S-K of the Exchange Act)days’ prior notice or less;
(ii) agreements with Sellers or any Affiliates of Sellers or any current officer or director of Sellers or Marigold (other than agreements made in the ordinary course of business on terms generally available to similarly situated non-affiliated parties);
(iii) agreements that is with restrict the ten (10) largest customers ability of the Company and its Subsidiaries during Venture or Marigold to engage in any line of business, including restriction on the fiscal year ended January 31ability of Marigold to carry on mining, 2024 exploration or other activities in any location;
(as determined based iv) agreements with any labor union or association representing any Employee;
(v) agreements for the purchase or sale of any of the assets of the Venture other than in the ordinary course of business, for consideration in excess of $500,000;
(vi) agreements relating to any acquisition to be made on revenue received from such customers during such time periodbehalf of the Venture of any operating business or the capital stock of any other Person, in each case for consideration in excess of $500,000;
(vii) agreements relating to the incurrence of Indebtedness, or the making of any loans, with Persons other than Sellers or their Affiliates, in each case involving amounts in excess of $500,000;
(excluding viii) any non-disclosure agreementsagreement that would prohibit or restrict the transactions contemplated by this Agreement or under which the transactions contemplated by this Agreement would constitute a breach;
(ix) any joint venture agreements including, data processing agreementswithout limitation, purchase orders or statements of work or invoices the Operating Agreement; and
(x) any agreements that have not been entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company Venture (or in the applicable Subsidiary case of a Material Contract entered into by Marigold for the benefit of the CompanyVenture, as the case may be, and, to the Knowledge of the Company, each other party thereto, on Marigold) in accordance with its terms and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company Venture nor any Subsidiary of the Company hasMarigold, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision ofas applicable, or committed to Sellers’ Knowledge in each case, any other party thereto, is in breach of or failed default under (or is alleged to perform be in breach of or default under), or has provided or received any act undernotice of any intention to terminate, any Material Contract. To Sellers’ Knowledge, Marigold has not received any notice of breach of or default under any such contract that remains outstanding and no counterparty has alleged that any default exists that remains outstanding. Complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Buyer in the Data Room. To Sellers’ Knowledge, no event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute a breach an event of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to under any Material Contract has (A) canceled or otherwise terminated, result in a termination thereof or threatened in writing to cancel would cause or otherwise to terminate, its relationship with permit the Company acceleration or other changes of any Subsidiary (as applicable) right or (B) decreased materially obligation or threatened to decrease materially or limit materially, the amount loss of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectbenefit thereunder.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Silver Standard Resources Inc)
Material Contracts. (a) Except (i) as filed as exhibits Set forth on Schedule 4.12 is a true, correct and complete list of each of the following Contracts to which the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, or any of its Subsidiaries is a party or by which any of their respective properties or assets is bound as of the date hereofof this Agreement:
(a) Contracts relating to Company Debt or to mortgaging, neither pledging or otherwise placing a Lien on any material portion of any assets or property of the Company nor or any Subsidiary, other than Permitted Liens, including letters of credit, guaranties, indentures, swaps and similar agreements;
(b) Contracts relating to the acquisition (by merger, purchase of stock or assets or otherwise) by the Company or any Subsidiary of any operating business or material assets or the Company is a party to or is bound by capital stock of any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)other Person;
(iic) Contracts relating to the ownership of or investments in or disposition of any business or enterprise, including Contracts for investments in joint ventures, strategic alliances, cooperatives, partnerships, licensing arrangements or sharing of profits or proprietary information and minority equity investments;
(d) Contracts that is with require the ten acquisition of any material assets or properties (10including equity interests) largest customers of any other Person in excess of $500,000 or any Contract relating to prior acquisitions to the extent the Company and or any of its Subsidiaries during the fiscal year ended January 31still has any remaining right, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsobligation or liability thereunder, data processing agreements, except for purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiie) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost require the disposition of goods and services is paid any material assets or payable by the Company);
properties (ivincluding equity interests) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition 500,000 or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or any Contract relating to dispositionprior dispositions to the extent the Company or any of its Subsidiaries still has any remaining right, voting obligation or dividends liability thereunder, except for purchase orders entered into in the ordinary course of business;
(f) Contracts under which the Company or any of its Subsidiaries is lessee of, or holds or operates any property, real or personal, owned by any other party, for which the annual rent exceeds $500,000;
(g) Contracts under which the Company or any of its Subsidiaries is lessor of, or permits any third party to hold or operate any property, real or personal, for which the annual rent exceeds $500,000;
(h) Contracts or group of related Contracts with respect to any equity securities the same party for the purchase of products or services providing for payments by the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither in excess of $500,000 in any fiscal year that is not terminable without penalty upon less than thirty (30) days prior written notice by the Company nor any Subsidiary or its Subsidiaries, as applicable;
(i) Contracts or group of related Contracts with the same party providing for payments to the Company has, and, to the Knowledge or any of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults whichits Subsidiaries, individually or in the aggregate, would not reasonably be expected in excess of $500,000 in any fiscal year, except for purchase orders entered into in the ordinary course and leases or subleases of any Real Property;
(j) royalty Contracts, Intellectual Property Licenses or any other Contracts relating to have any Intellectual Property or Technology (excluding licenses pertaining to “off-the- shelf” commercially available Software used pursuant to shrink-wrap or click-through license agreements on reasonable terms for a Company Material Adverse Effect and, as license fee of February 1, 2021, to the Knowledge no more than $500,000).
(k) Contracts or series of the Company, neither related Contracts involving annual expenditures or receipts by the Company nor or any Subsidiary of more than $500,000 or providing for performance, regardless of amounts, over a period in excess of three (3) months after the date of such Contract, arrangement or commitment other than Real Property Leases;
(l) employment, severance or consulting Contracts, offers of employment or Contracts providing for change in control or other similar payments;
(m) warranties, indemnities or guaranties issued by the Company has received written notice or any Subsidiary (other than customary product warranties provided by the Company or any Subsidiary in the ordinary course of business);
(n) Contracts containing (i) covenants restricting the right of the Company or any Subsidiary to engage in any business activity or to compete with any business anywhere in the world, (ii) covenants not to solicit or hire any person with respect to employment or (iii) covenants of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has other Person (A) canceled or otherwise terminated, or threatened in writing not to cancel or otherwise to terminate, its relationship compete with the Company or any Subsidiary (as applicable) in any line of business or in any geographical area or (B) decreased materially not to solicit or threatened hire any person with respect to decrease materially employment;
(o) Contracts with a Governmental Entity or limit materially, with a Person known by the amount Company to be under contract with a Governmental Entity with respect to the subject matter of business that any such counterparty presently engages in or presently conducts the Contract with the Company and or any Subsidiary, as applicable;
(p) Contracts under which the Company or any Subsidiary has made advances or loans to any other Person;
(q) Contracts between the Company or any of its Subsidiaries and any referring physician, medical group, or a physician-owned entity that would be reasonably likely to involve payment to or from the Company or any of its Subsidiaries in excess of $100,000 and Contracts between the Company’s or any of its Subsidiaries’ medical director or program director that would be reasonably likely to involve payment to or from the Company or any of its Subsidiaries in excess of $25,000;
(r) any other thanmaterial Contracts not made in the ordinary course of business and consistent with past practice that would be reasonably likely to involve payment to or from the Company or any of its Subsidiaries in excess of $500,000; or
(s) outstanding offers or commitments to enter into any Contract of the nature described in subsections (a) through (r) of this Section 4.12. All such Contracts listed or required to be listed on Schedule 4.12 are referred to herein as “Material Contracts”. The Company has delivered to Parent prior to the date hereof, a true, correct and complete copy of all written Material Contracts (and a true, correct and complete description of all oral Material Contracts), together with all amendments, modifications and supplements thereto. Each of the Material Contracts is in each casefull force and effect and is a legal, valid and binding agreement of the Company or its Subsidiaries, as applicable, and is enforceable against the Company or its Subsidiaries, as applicable, and to the Company’s Knowledge, the other parties thereto, subject only to the General Enforceability Exceptions. Except as set forth on Schedule 4.12, neither the Company nor its Subsidiaries, as applicable, is in material breach or material default under any such Material Contract and no event has occurred which, with notice or lapse of time or both, would not reasonably be expected constitute such a breach or default by the Company or its Subsidiaries, as applicable, or, to have a the Company’s Knowledge, any other party thereto under such Material Adverse EffectContract.
Appears in 1 contract
Material Contracts. (a) Except (i) as for this Agreement, the Contracts filed as exhibits to the Company SEC DocumentsReports, (ii) for this Agreement and the other agreements entered into Contracts listed in connection with Subsections (i) through (xx) of Section 3.16(a) of the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule, as of the date hereof, neither the Company nor any Subsidiary none of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party to or bound by the following Contracts:
(i) any Contract that would be required to be filed by the Company pursuant to Item 4 of the Instructions to Exhibits of Form 20-F under the Exchange Act;
(ii) any Contract relating to the formation, creation, operation, management or control of any Subsidiary of the Company or any other partnership, joint venture, strategic collaboration, global affiliation or business cooperation, limited liability company or similar arrangement;
(iii) any Contract involving a loan (other than accounts receivable from trade debtors in the ordinary course of business pursuant business) or advance to which (other than travel and entertainment allowances to the employees of the Company and any of its Subsidiaries extended in the ordinary course of business), or investment in, any person or any Contract relating to the making of any such loan, advance or investment for more than US$5,000,000;
(iv) any Contract involving Indebtedness of the Company or any of its Subsidiaries have material continuing obligationsof more than US$5,000,000;
(v) any Contract (including so called take-or-pay or keep-well agreements) under which any person (other than the Company or any of its Subsidiaries) has directly or indirectly guaranteed Indebtedness of the Company or any of its Subsidiaries of more than US$5,000,000;
(vi) any Contract granting or evidencing a Lien on any properties or assets of the Company or any of its Subsidiaries with value of more than US$5,000,000, other than a Permitted Encumbrances;
(vii) containing any management service, consulting, financial advisory or any other similar type Contract and all Contracts with investment or commercial banks;
(Aviii) any Contract for the acquisition, disposition, sale, transfer or lease (including leases in connection with financing transactions) of properties or assets of the Company or any of its Subsidiaries that have a covenant fair market value or purchase price of more than US$5,000,000 (by merger, purchase or sale of assets or stock or otherwise) entered into since December 31, 2014 or, if prior to that date, have representations, warranties or indemnities that remain in effect or as to which claims are pending;
(ix) any Contracts involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other provision limiting dispute with amount in controversy greater than US$5,000,000;
(x) any Contract involving a standstill or similar arrangement;
(xi) any non-competition Contract or other Contract that purports to limit, curtail or restrict in any material respect the ability of the Company or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person in any geographic area, industry or line of business;
(xii) any Contract for the employment of any senior executive officer;
(xiii) any Contract that contains a put, call or similar right pursuant to which the Company or any of its Subsidiaries could be required to purchase or sell, as applicable, any equity interests of any person or assets that have a fair market value or purchase price of more than US$5,000,000;
(xiv) any Contract (other than Contracts granting Company Options, or Company RSs) giving the other party the right to terminate such Contract as a result of this Agreement or the consummation of the Transactions, including the Merger, where (A) such Contract requires any customary employee non-solicitation payment in excess of US$5,000,000 to be made by the Company or no-hire clauses entered into any of its Subsidiaries in any calendar year or (B) the ordinary course value of businessthe outstanding receivables due to the Company and its Subsidiaries under such Contract is in excess of US$5,000,000 in any calendar year;
(xv) any Contract that contains restrictions with respect to (A) payment of dividends or any distribution with respect to equity interests of the Company or any of its Subsidiaries, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right pledging of first refusal or right of first offer or similar right that limits the ability share capital of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) issuance of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which guarantee by the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Subsidiaries;
(xivxvi) that is any Contract providing for (A) a settlementlicense, conciliation covenant not to ▇▇▇ or similar Contract (x) with other right granted by any Governmental Authority entered into since February 1, 2021, (y) which would require Third Party under any Intellectual Property to the Company or any of its Subsidiaries Subsidiaries, (B) a license, covenant not to pay consideration of more than $1,000,000 after the date of this Agreement ▇▇▇ or (z) that subjects other right granted by the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Third Party under any Intellectual Property, (other than ordinary course confidentiality requirements or restrictions);
(xvC) an indemnity of any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of person by the Company or any of its Subsidiaries against any charge of infringement, misappropriation, unauthorized use or relating to dispositionviolation of any Intellectual Property right, voting or dividends with respect (D) any royalty, fee or other amount payable by the Company or any of its Subsidiaries to any equity securities person by reason of the ownership, use, sale or disposition of Intellectual Property, in each case of clauses (A) through (D), other than agreements for off-the-shelf Software and such Contracts that are not material to business of the Group Companies, taken as a whole, and in each case of clauses (C) and (D), other than Contracts entered into by the Company and its Subsidiaries in the ordinary course of business;
(xvii) any Contract granting rights in respect of exclusivity, “most favored nation” or similar rights;
(xviii) any Contract between or among the Company or any of its Subsidiaries; or, on the one hand, and any of their respective Affiliates (other than the Company or any of its Subsidiaries), on the other hand, that involves payments of more than US$5,000,000 in any one year;
(xvixix) is each Control Agreement and any other any Contract which (A) provides the Company with effective control over any of its Subsidiaries in respect of which it does not, directly or indirectly, own a majority of the equity interests (each, an affiliate “Operating Subsidiary”), (B) provides the Company or any of its Subsidiaries the right or option to purchase the equity interests in any Operating Subsidiary, or (C) transfers economic benefits from any Operating Subsidiary to any other Person Subsidiary of the Company;
(xx) any Contract between the Company or any of its Subsidiaries and any director or executive officer of the Company or any person beneficially owning five percent or more of the outstanding Shares required to be disclosed pursuant to Item 7B or Item 19 of Form 20-F under the Exchange Act (including those that would be required to be disclosed under Item 404 if the Form 20-F were filed as of Regulation S-K promulgated under the Exchange Actdate hereof); or
(xxi) any other Contract which, other than any if terminated, could reasonably be expected to result in a Company Material Adverse Effect. Each such Contract solely among described in clauses (i) to (xxi) and each such Contract that would be a Material Contract if it had not been filed as an exhibit to the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, SEC Reports is referred to herein as a “Material Contract.” ”
(b) Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither : (i) each Material Contract is a legal, valid and binding obligation of a Group Company, as applicable, in full force and effect and enforceable against such Group Company in accordance with its terms, subject to the Company nor any Subsidiary Bankruptcy and Equity Exception; (ii) to the knowledge of the Company, each Material Contract is a legal, valid and binding obligation of the counterparty thereto, in full force and effect and enforceable against such counterparty in accordance with its terms, subject to the Bankruptcy and Equity Exception; (iii) no Group Company has, and, to the Knowledge knowledge of the Company, none of the other parties thereto haveno counterparty, violated any provision is or is alleged to be in breach or violation of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts ; (or failures to activ) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge knowledge of the Company, no person intends to terminate any Material Contract; and (v) neither the Company execution of this Agreement nor the consummation of any Subsidiary of the Company has received written notice of Transaction shall constitute a default under, give rise to cancellation rights under, or otherwise adversely affect any of the foregoing. To the Knowledge rights of the Company, since February 1, 2021, no counterparty to any Group Company under any Material Contract Contract. The Company has (A) canceled furnished or otherwise terminatedmade available to Parent true and complete copies of all Material Contracts, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or including any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectamendments thereto.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits In Annex 6.14 hereto are disclosed true, complete and accurate copies of all material contracts, leases and agreements currently in force to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company which Verplast is a party to or is bound by any Contractincluding, but not limited to:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any agreement for the lease of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any nontenancy-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)rental agreement for real properties owned by Verplast;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid any agreement or amendment to such vendors by agreement under the Company during such time periodterms of which Verplast has created, incurred, assumed or guaranteed any liability for borrowed money in excess of Lire 30.000.000 (thirty million) (excluding including, without limitation, any non-disclosure agreements, data processing agreements, purchase orders term loan or statements of work other agreements with any bank or invoices entered into in the ordinary course of business, and any other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)financial institution;
(iv) that is any agreement under which Verplast has granted a Government Contractlien, pledge, security interest or other encumbrance upon any of its assets;
(v) evidencing any contract with external consultants for a capital expenditure for liability exceeding Lire 30.000.000 (thirty million) per year, including any bonus or deferred payment (other than oral retainers of professionals which future payments are required in excess of $5,000,000;can be terminated without notice); 15
(vi) relating to the disposition or acquisition of any businessguaranty, equitysuretyship, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsperformance bond and/or contribution agreements;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areadistribution, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessagency, (B) “most favored nation”marketing, “exclusivity” or similar provisionslicensing, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholesales representative and/or dealership agreements;
(viii) relating any loans or advances to or evidencing indebtedness for borrowed moneyany third party, debt securitiesincluding, warrants or other rights to acquire any debt securitieswithout limitation, the shareholders, directors and officers of the Company or any Subsidiary Verplast in excess of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Lire 30.000.000 (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companythirty million);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that collective bargaining agreement. With respect to each material agreement and each license relating to the Licensed Intellectual Property to which Verplast is a license party, except as otherwise disclosed in Annex 6.14: (or a covenanti) such agreement is in full force and effect and constitutes the legal, consent or valid and binding obligation for Verplast and the other rights parties thereto and it is enforceable in or accordance with its terms, (ii) to use Intellectual Property) granted by the Company or any Subsidiary best of the Company to Company Intellectual Property (A) on an exclusive basisSeller's knowledge, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken such agreement will not be terminated as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date result of this Agreement or the consummation of the transactions contemplated herein, (ziii) that subjects Verplast is not in default in any material respect under such agreement and no event has occurred which, with the Company passing of time, would become a default, and (iv) no other party is in default in any material respect under such agreement. No bonus or severance will become due and payable under any existing agreement between Verplast and any of its Subsidiaries to any material ongoing requirements employees as a result of this Agreement or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities the consummation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariestransactions contemplated herein.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Framework Agreement (Ico Inc)
Material Contracts. (a) Except (iSection 3.7(a) as filed as exhibits to of the Company SEC DocumentsDisclosure Schedules sets forth a true and complete list of the following Contracts, (ii) for other than this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansAncillary Documents, as of the date hereof, neither the Company nor any Subsidiary of the to which a Group Company is a party to or is bound by which any of its properties or assets may be bound, subject or affected (each a “Material Contract:”):
(i) that any agreement which creates or imposes a non-contingent forward Liability to a non-Group Company greater than $1,000,000;
(ii) any Contract for the sale of electricity, capacity, ancillary services, or renewable energy credits with a value greater than $250,000;
(iii) any Contract with (A) a Significant Customer, other than those that, if breached or terminated by a party thereto, would not individually or in the aggregate materially impact the financial condition or results of operations or business of a Group Company, or (B) a Significant Supplier involving the purchase or sale of any inventory, goods or services with a value greater than $250,000;
(iv) any Contract with a Governmental Entity in which such Governmental Entity is a customer of, or receiving services from, any Group Company;
(v) any Contract under which any Group Company is lessee of or holds or operates, in each case, any tangible property (other than real property), owned by any other Person (other than any Affiliates of the Company) in excess of $250,000;
(vi) any joint venture, profit-sharing, partnership, collaboration, co-promotion, commercialization or research or development Contract, in each case, which requires, or would reasonably be expected to require (based on any occurrence, development, activity or event contemplated by such Contract), aggregate payments to or from any Group Company in excess of $250,000 over the life of the Contract;
(vii) any Contract that (A) limits or purports to limit, in any material respect, the freedom of any Group Company to engage or compete in any line of business or with any Person or in any area or that would so limit or purport to limit, in any material respect, the operations of Pubco or any of its Affiliates after the Closing, (B) contains any exclusivity, “most favored nation” or similar provisions, obligations or restrictions or (C) contains any other provisions restricting or purporting to restrict the ability of any Group Company to sell, manufacture, develop, commercialize, test or research products, directly or indirectly through third parties, in any material contract” respect or that would so limit or purports to limit, in any material respect, Pubco or any of its Affiliates after the Closing;
(viii) any Contract with any Person (A) pursuant to which any Group Company (or Pubco or any of its Affiliates after the Closing) may be required to pay royalties or other contingent payments based on any research, development, sale, distribution or other similar occurrences, developments, activities or events or (B) under which any Group Company grants to any Person any right of first refusal, right of first negotiation, option to purchase, option to license or any other similar rights with respect to any material Company Product or any material Company Owned Intellectual Property;
(ix) any Contract for the disposition of any portion of the assets or business of any Group Company or for the acquisition by any Group Company of the assets other than equipment to be incorporated into a project in the ordinary course of business or business of any other Person involving consideration in excess of $500,000 (other than acquisitions or dispositions made in the ordinary course of business), or under which any Group Company has any continuing obligation with respect to an “earn-out”, contingent purchase price or other contingent or deferred payment obligation;
(x) any Contract that will be required to be filed with the Registration Statement under applicable SEC requirements or would otherwise be required to be filed by the Company as such term is defined in Item 601(b)(10an exhibit for a Form S-1 pursuant to Items 601(b)(1), (2), (4), (9) or (10) of Regulation S-K of under the Exchange Act);Securities Act as if the Company was the registrant; or
(iixi) that is with the ten (10) largest customers of the otherwise material to any Group Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
and not described in clauses (viii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
through (x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;above; and
(xii) that is a Company Real Property Lease with remaining obligations any commitment to enter into any Material Contract of the type described in excess of $1,000,000;
clauses (xiiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
through (xivxi) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictionsSection 3.7(a);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a)True, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all correct and complete copies of the Material Contracts are (Aincluding all material modifications, amendments and supplements thereto) have been delivered to or made available to TortoiseCorp III or its agents or representatives.
(c) Each Material Contract is valid and binding on the applicable Group Company or and, to the applicable Subsidiary knowledge of the Company, as the case may be, and, to the Knowledge of the Company, each other party counterparty thereto, and (B) is in full force and effect, except and the applicable Group Company and, to the knowledge of the Company, the counterparties thereto are not in material breach of, or default under, any Material Contract.
(d) Since the Lookback Date, (i) as may be limited by bankruptcyno Group Company has received any written or, insolvencyto the knowledge of the Company, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles oral claim or notice of equity material breach of or material default under any Material Contract and (ii) as would notno Significant Customer has exercised its buy-out option under any power purchase agreement or similar Contract.
(e) To the knowledge of the Company, no event has occurred which, individually or in the aggregatetogether with other events, would reasonably be expected to have result in a material breach of or a material default under any Material Contract by the applicable Group Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andor, to the Knowledge knowledge of the Company, none of the any other parties party thereto have(in each case, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, notice or lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect).
Appears in 1 contract
Sources: Business Combination Agreement (TortoiseEcofin Acquisition Corp. III)
Material Contracts. (a) Except (i) as filed as exhibits In Annex 6.14 hereto are disclosed true, complete and accurate copies of all material contracts, leases and agreements currently in force to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company which Verplast is a party to or is bound by any Contractincluding, but not limited to:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any agreement for the lease of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any nontenancy-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);rental agreement for real properties owned by Verplast; 55
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid any agreement or amendment to such vendors by agreement under the Company during such time periodterms of which Verplast has created, incurred, assumed or guaranteed any liability for borrowed money in excess of Lire 30.000.000 (thirty million) (excluding including, without limitation, any non-disclosure agreements, data processing agreements, purchase orders term loan or statements of work other agreements with any bank or invoices entered into in the ordinary course of business, and any other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)financial institution;
(iv) that is any agreement under which Verplast has granted a Government Contractlien, pledge, security interest or other encumbrance upon any of its assets;
(v) evidencing any contract with external consultants for a capital expenditure for liability exceeding Lire 30.000.000 (thirty million) per year, including any bonus or deferred payment (other than oral retainers of professionals which future payments are required in excess of $5,000,000can be terminated without notice);
(vi) relating to the disposition or acquisition of any businessguaranty, equitysuretyship, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsperformance bond and/or contribution agreements;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areadistribution, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessagency, (B) “most favored nation”marketing, “exclusivity” or similar provisionslicensing, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholesales representative and/or dealership agreements;
(viii) relating any loans or advances to or evidencing indebtedness for borrowed moneyany third party, debt securitiesincluding, warrants or other rights to acquire any debt securitieswithout limitation, the shareholders, directors and officers of the Company or any Subsidiary Verplast in excess of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Lire 30.000.000 (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companythirty million);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that collective bargaining agreement. With respect to each material agreement and each license relating to the Licensed Intellectual Property to which Verplast is a license party, except as otherwise disclosed in Annex 6.14: (or a covenanti) such agreement is in full force and effect and constitutes the legal, consent or valid and binding obligation for Verplast and the other rights parties thereto and it is enforceable in or accordance with its terms, (ii) to use Intellectual Property) granted by the Company or any Subsidiary best of the Company to Company Intellectual Property (A) on an exclusive basisSeller's knowledge, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken such agreement will not be terminated as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date result of this Agreement or the consummation of the transactions contemplated herein, (ziii) that subjects Verplast is not in default in any material respect under such agreement and no event has occurred which, with the Company passing of time, would become a default, and (iv) no other party is in default in any material respect under such agreement. No bonus or severance will become due and payable under any existing agreement between Verplast and any of its Subsidiaries to any material ongoing requirements employees as a result of this Agreement or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities the consummation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariestransactions contemplated herein.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Framework Agreement (Ico Inc)
Material Contracts. (a) Except (iSection 3.08(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule sets forth, as of the date hereofof this Agreement, neither the Company nor any Subsidiary each of the following Contracts, other than any Employee Plans, which have terms set forth in the below categories that are in effect as of the date hereof to which any Acquired Company is a party or otherwise bound (a Contract responsive to any of the following categories, or any other Contract that is bound by any with a Material Carrier or a Material Client, in each case together with all amendments and modifications thereto, being hereinafter referred to as a “Material Contract:”):
(i) that is any Contract governing a “material contract” (as such term is defined in Item 601(b)(10) of Regulation Spartnership, joint venture, minority interest or other similar arrangement involving co-K of investment between any Acquired Companies, on the Exchange Act)one hand, and one or more third parties, on the other hand;
(ii) any (1) Contract that is with purports to materially limit (A) the ten (10) largest customers right of the Company and its Subsidiaries during Acquired Companies to compete with any Person or in any lines of business or (B) the fiscal year ended January 31, 2024 (as determined based on revenue received from geographic area in which the Acquired Companies may so engage in such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and (2) Contract that obligates the Acquired Companies to purchase or otherwise obtain any material product or service exclusively from a single party for aggregate annual spend of greater than $1,000,000, (3) material Contract that contains a “most favored nation” or other similar Contracts term providing preferential pricing or treatment to a third party or (4) material Contract that are ancillary grants exclusive rights to Contracts pursuant license, market, sell or deliver any product or service of the Acquired Companies, or to which revenue is paid exclusively supply any product or payable service to the Company or its Subsidiaries)Acquired Companies;
(iii) that is with the ten any Contract (101) largest vendors under which any Acquired Company has outstanding Indebtedness for borrowed money (other than from or to another Acquired Company) or any financial guaranty thereof (whether incurred, assumed, guaranteed or secured by any asset) in an amount in excess of the $2,000,000 or (2) under which any Acquired Company and its Subsidiaries during the fiscal year ended January 31, 2024 has directly or indirectly guaranteed or assumed Indebtedness of any Person (as determined based on cost other than any Acquired Company) in an amount in excess of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$2,000,000;
(iv) any material Contract for annual consideration in excess of $1,000,000 pursuant to which any Acquired Company has granted to any Person, or has been granted, a license with respect to any Intellectual Property Rights, other than Contracts (1) where an Acquired Company has been granted a license to commercially available “off-the-shelf” software or hardware that is a Government Contracthave not been materially modified or modified beyond standard or commercially available customization or (2) in which grants of non-exclusive rights to use Intellectual Property Rights are incidental to and not material to performance under the agreement;
(v) evidencing a capital expenditure for which future payments are required any Contract (1) entered into in excess of $5,000,000;
the twelve (vi12) relating month period prior to the disposition date hereof for the acquisition or acquisition disposition, directly or indirectly, of any businessassets, equity, capital stock or all or substantially all of the assets other equity interests of any Person for aggregate initial consideration in excess of $5,000,000 or (2) that includes any continuing “earn out” or other similar contingent payment obligations outstanding on the part of the Company or any of its Subsidiaries in connection with acquisitions by the Company or any of its Subsidiaries outside of assets or capital stock or other equity interests of any Person for which the current accrual in the books and records of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsexceeds $2,500,000;
(viivi) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses Contract entered into in the ordinary course of businesslast twelve (12) months pursuant to which an Acquired Company agreed to settle, (B) “most favored nation”waive, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights compromise any actual or properties threatened (in writing) Proceeding or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the under which an Acquired Company and its Subsidiarieshas continuing material obligations, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in Contracts regarding settlements, waivers or compromises of Proceedings that involve the ordinary course payment of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (cash by or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company in an amount not exceeding $1,000,000;
(Avii) on an exclusive basisany Contract that contains a put, (B) on a non-exclusive basis, if call or similar right pursuant to which the Company Acquired Companies could be required to purchase or sell, as applicable, any equity interests of any Person or any Subsidiary made payments during assets of any Person;
(viii) any Contract that grants any rights of first refusal or rights of first offer to any Person with respect to any equity interests or material assets of an Acquired Company;
(ix) any Contract pursuant to which any Acquired Company is the fiscal year ended January 31lessee of, 2024 holds or uses, in each case, outside the ordinary course of business consistent with past practices, equipment or other tangible personal property owned by any third party for an annual rent in excess of $1,000,000;
(x) any Contract that obligates any Acquired Company to make any future advance, and/or loan, extension of credit or capital contribution to, or other investment in, any Person in an amount in excess of $1,000,000 individually and $3,000,000 in the aggregate;
(Cxi) any Contract that is otherwise material obligates any Acquired Company to make any future capital expenditure over any consecutive twelve (12) month period in an amount in excess of $1,000,000 individually and $3,000,000 in the Company and its Subsidiaries taken as a wholeaggregate;
(xii) any Contract that is a Company Real Property Lease with remaining obligations where annual base rent is in excess of $1,000,000;
(xiii) that involves any material Contract with a material joint venture, profit sharing, partnership or similar agreement from which the Governmental Authority (other than any Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;Permits); or
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesInterest Rate Swaps.
(b) Each Contract No Acquired Company is in breach of, or default under, the terms of any Material Contract, and no event has occurred that with notice or lapse of time or both would constitute a default of any obligations thereunder by any Acquired Company, and no Acquired Company has received written notice of any such default or event, or of any alleged default or of any termination or non-renewal of any Material Contract, except in each case where such breach, default, termination or non-renewal would not reasonably be expected to be, individually or in the type described above in Section 4.15(a)aggregate, whether or not set forth in Section 4.15(a) of material to the Company Disclosure ScheduleAcquired Companies, is referred to herein taken as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of whole. To the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary Knowledge of the Company, as of the case may bedate hereof, no other party to any Material Contract is in breach of or default under the terms of any Material Contract, and, to the Knowledge of the Company, as of the date hereof, no event has occurred that with notice or lapse of time or both would constitute a default of any obligations thereunder by any such other party, except in each case where such breach or default would not reasonably be expected to be, individually or in the aggregate, material to the Acquired Companies, taken as a whole. Except as would not reasonably be expected to be, individually or in the aggregate, material to the Acquired Companies, taken as a whole, assuming each Material Contract constitutes the legal, valid and binding agreement of the other party thereto, each Material Contract is a valid and (B) binding obligation of the Acquired Company which is party thereto, and is in full force and effect, except that (i) as such enforcement may be limited by subject to applicable bankruptcy, insolvency, examinership, fraudulent transfer, reorganization, moratorium and or other similar Applicable Law affecting Laws, now or hereafter in effect, relating to creditors’ rights generally and by general principles of equity and (ii) equitable remedies of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the discretion of the court before which any proceeding therefor may be brought. Except as would notnot reasonably be expected to be, individually or in the aggregate, reasonably be expected material to have the Acquired Companies, taken as a Company Material Adverse Effect. Neither the Company nor any Subsidiary whole, as of the Company hasdate hereof, andthere are no disputes pending or, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed threatened in writing with respect to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in . True and complete copies of each case for those violations, acts (or failures Material Contract have been made available to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, Parent prior to the Knowledge date of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectthis Agreement.
Appears in 1 contract
Sources: Merger Agreement (Aon PLC)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Schedule 4.11 sets forth all of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party to or by which the Company is bound by any Contract:or subject to as of the date of this Agreement (collectively, the "Material Contracts"):
(i) Contracts involving aggregate payments made from January 1, 2015 through September 30, 2015 of more than $500,000, or for which the Company is obligated to pay or entitled to receive more than $500,000 in any subsequent twelve (12) month period (A) for the purchase by the Company of (or that is grant a “material contract” right or option to the Company to purchase) any asset, equipment or property or provision of any service or (as such term is defined in Item 601(b)(10B) for the sale by the Company of Regulation S-K of (or that grant a right or option to any Third Party to purchase from the Exchange Act)Company) any asset, equipment or property;
(ii) Contracts between the Company and any customer for the provision of services by the Company involving aggregate payments made from January 1, 2015 through September 30, 2015 of more than $500,000, or for which the Company is obligated to pay or entitled to receive more than $500,000 in any subsequent twelve (12) month period;
(iii) Contracts under which the Company has created, incurred, assumed or guaranteed any outstanding Debt Obligations, or under which the Company has imposed or permitted to exist a Lien on any of its Properties;
(iv) outstanding futures, swap, collar, put, call, floor, cap, option or other similar Contracts that is with are intended to benefit from or reduce or eliminate the ten risk of any fluctuations in interest rates, foreign exchange rates or the price of commodities;
(10v) largest customers Contracts that (i) expressly limit the freedom of the Company and its Subsidiaries to compete in any line of business or conduct business in any geographic area or (ii) grant to another Person exclusive rights with respect to the sale of any goods or services or the operation of business in any territory;
(vi) partnership, joint venture or limited liability company agreements;
(vii) Contracts that require, subsequent to the date of this Agreement, aggregate capital expenditures in excess of $500,000 annually per Contract;
(viii) Government Contracts (x) involving annual payments to the Company during 2014, or expected payments to the fiscal year ended January 31Company in any subsequent calendar year, 2024 which exceed $2,000,000 per contract; or (as determined based on revenue received from such customers during such time periody) (excluding for subcontracts with another entity under a prime Contract held by the Company) that are also Material Contracts by virtue of Section 4.11(a)(i); provided, that in each case individual task orders are not listed separately;
(ix) Contracts that relate to the acquisition by the Company of any non-disclosure agreements, data processing agreements, purchase orders of the capital stock or statements substantial portion of work the assets of another Person;
(x) Contracts which provide for the sale or invoices lease after the date of this Agreement of a material amount of the assets of the Company (other than Contracts entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiixi) that is other than with respect to the ten (10) largest vendors Organizational Documents of the Company and its Subsidiaries during Company, Contracts providing for the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors indemnification by the Company during such time period) (excluding of any non-disclosure agreementscurrent or former director, data processing agreements, purchase orders officer or statements employee of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(ivxii) Contracts that is contain a Government Contract;"most favored nation" or "most favored customer" pricing or other similar provision in favor of a third party; or
(vxiii) evidencing a capital expenditure for Contracts under which future payments are required in excess of $5,000,000;the Company has agreed to share any Tax liability with any Person.
(vib) relating Seller has delivered or made available to the disposition or acquisition Purchaser true and correct copies of any businesseach Material Contract, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 other than Material Contracts that contain competitively sensitive information as determined by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company Seller and its Subsidiariesas indicated on Schedule 4.11, in each case, that is material which have been made available to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) ES Clean Team pursuant to which the Clean Team Agreement. The Company or has not received any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; written or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of Seller, oral notice of any default in any material respect or event that with notice or lapse of time, or both, would constitute a default in any material respect by the Company under any Material Contract. Each Material Contract is a valid and binding obligation of the Company, each other party thereto, and (B) in full force and effecteffect and enforceable in accordance with its terms, except (i) as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, arrangement, moratorium and or other similar Applicable Law Laws relating to or affecting creditors’ the rights generally and of creditors generally, or by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effectequitable principles. Neither the Company nor any Subsidiary of the Company has, andnor, to the Knowledge of Seller, any other party to any Material Contract, is in material breach or violation of or in material default under any Material Contract, nor, to the CompanyKnowledge of Seller, none of the other parties thereto have, violated has any provision of, event occurred or committed or failed to perform does any act under, and no event circumstance or condition existscurrently exist, which that (with or without notice, lapse of time or both) would constitute reasonably be expected to (A) result in a material breach or violation of or material default under, the provisions of under any Material Contract, except in each case for those violations, acts (B) give any party the right to cancel or failures to actaccelerate payments under or terminate or modify any Material Contract or (C) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor give any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has the right to seek damages or other material remedies.
(Ac) canceled The Company is not a party to any Contract with respect to the provision of services (i) that will result in any pricing that would violate Section 401.2456 of the Texas Health and Safety Code (without regard to any waiver or otherwise terminatedexception from the Texas Commission on Environmental Quality), or threatened (ii) that includes any fixed price payment provisions without regard to volume in writing to cancel or otherwise to terminate, its relationship with consideration for the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectCompany's services.
Appears in 1 contract
Sources: Purchase Agreement (Valhi Inc /De/)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the Contracts specifically identified in Schedule 2.20 of the Sellers’ Disclosure Letter, the Company is not a party to or bound by any of the following Contracts (each a “Material Contract”, it being understood that the use of the word “material” in this definition is not an admission that any of the individual contracts described below are in fact material to the business or operations of the Company):
(i) any distributor, original equipment manufacturer, reseller, value added reseller, sales, advertising, agency or manufacturer’s representative Contract;
(ii) any continuing Contract for the purchase, sale or license of materials, supplies, equipment, services, software, Intellectual Property or other agreements entered into assets involving in connection with the transactions contemplated hereby and case of any such Contract more than $10,000 over the life of the Contract;
(iii) any Contract that expires or may be renewed at the option of any Person other than the Company so as to expire more than one year after the Agreement Date;
(iv) any trust indenture, mortgage, promissory note, loan agreement or other Contract for Company Employee Plansthe borrowing of money, as any currency exchange, commodities or other hedging arrangement or any leasing transaction of the date hereof, neither type required to be capitalized in accordance with GAAP;
(v) any Contract for capital expenditures in excess of $10,000 in the aggregate;
(vi) any Contract limiting the freedom of the Company nor to engage or participate, or compete with any Subsidiary other Person, in any line of business, market or geographic area, or to make use of any Intellectual Property, or any Contract granting most favored nation pricing, exclusive sales, distribution, marketing or other exclusive rights, rights of refusal, rights of first negotiation or similar rights and/or terms to any Person, or any Contract otherwise limiting the right of the Company to sell, distribute or manufacture any products or services or to purchase or otherwise obtain any software, components, parts, subassemblies or services;
(vii) any Contract pursuant to which the Company is a lessor or lessee of any real property or any machinery, equipment, motor vehicles, office furniture, fixtures or other personal property involving in excess of $10,000 per annum;
(viii) any Contract (A) with any of its officers, directors, employees or stockholders or any member of their immediate families or (B) with any Person with whom the Company does not deal at arm’s length;
(ix) any Contract of guarantee, support, indemnification, assumption or endorsement of, or any similar commitment with respect to, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or indebtedness of any other Person;
(x) all licenses, sublicenses and other Contracts as to which the Company is a party and pursuant to or which any Person is bound by authorized to use any Contract:
Company IP Rights (i) that is a “material contract” (as such term is defined excepting nonexclusive licenses of Company Products to its customers in Item 601(b)(10) the ordinary course of Regulation S-K of the Exchange Actits business consistent with its past practices);
(iixi) other than “shrink wrap” and similar generally available commercial end-user licenses to software that is not redistributed with or used in the ten (10) largest customers development or provisions of the Company Products that have an individual acquisition cost of $5,000 or less, all licenses, sublicenses and other Contracts to which the Company is a party and pursuant to which the Company acquired or is authorized to use any Third Party Intellectual Property Rights (excepting nonexclusive licenses from its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into vendors in the ordinary course of business);
(xii) all licenses, sublicenses and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid the Company has agreed to any restriction on the right of the Company to use or payable enforce any Company-Owned IP Rights or pursuant to which the Company agrees to encumber, transfer or sell rights in any Company-Owned IP Rights;
(xiii) any Contract providing for the development of any software, content, technology or Intellectual Property, independently or jointly, by or for the Company;
(xiv) any Contract to license or authorize any third party to manufacture or reproduce any of the products, services, technology or Intellectual Property of the Company;
(xv) any Contracts relating to the mechanics of, or participation by, the Company in, or the affiliation of the Company with, any industry standards group or association;
(xvi) (A) any joint venture Contract, (B) any Contract that involves a sharing of revenues, profits, cash flows, expenses or losses with other Persons or (C) any Contract that involves the payment of royalties to any other Person;
(xvii) any agreement of indemnification or warranty or any Contract containing any support, maintenance or service obligation or cost on the part of the Company (other than under its Subsidiariesunmodified form of standard customer or distributor agreement, the form of which has been made available to counsel to Purchaser);
(iiixviii) that is with any Contract for the ten (10) largest vendors employment of any director, officer, employee or consultant of the Company and its Subsidiaries during or any other type of Contract with any officer, employee or consultant of the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors Company that is not immediately terminable by the Company during such time period) (excluding without cost or liability, including any non-disclosure agreementsContract requiring it to make a payment to any director, data processing agreementsofficer, purchase orders employee or statements consultant on account of work the Share Purchase, any transaction contemplated by this Agreement or invoices any Contract that is entered into in connection with this Agreement;
(xix) any Contract or plan (including any stock option, merger and/or stock bonus plan) relating to the ordinary course sale, issuance, grant, exercise, award, purchase, repurchase or redemption of businessany shares of Company Capital Stock or any other securities of the Company or any options, warrants, convertible notes or other rights to purchase or otherwise acquire any such shares of stock, other securities or options, warrants or other rights therefor, except for the repurchase rights disclosed on Schedule 2.4(a)-2 of the Sellers’ Disclosure Letter;
(xx) any Contract under which the Company provides any advice or services to any third party, including any consulting Contract, professional Contract or software implementation, deployment or development services Contract, or support services Contract (including, for each such contract, a description of the percentage of completion and other similar Contracts that are ancillary expected additional hours, resources and costs necessary to Contracts pursuant to which cost of goods and services is paid or payable by the Companycomplete such services);
(ivxxi) that is a Government Contractany Contract with any labor union or any collective bargaining agreement or similar contract with its employees;
(vxxii) evidencing a capital expenditure for which future payments are required any Contract with any investment banker, broker, advisor or similar party, or any accountant, legal counsel or other Person retained by the Company, in excess of $5,000,000connection with this Agreement and the transactions contemplated hereby;
(vixxiii) relating any Contract pursuant to which the disposition Company has acquired a business or acquisition of any business, equityentity, or all or substantially all of the assets of any Person for aggregate consideration in excess a business or entity, whether by way of $5,000,000 by the Company merger, consolidation, purchase of stock, purchase of assets, license or otherwise, or any of contract pursuant to which it has any ownership interest in any other Person (other than its Subsidiaries outside of subsidiaries);
(xxiv) any Contract with any Governmental Entity or any Company Authorization;
(xxv) any confidentiality, secrecy or non-disclosure Contract other than any such Contract entered into with customers and distributors in the ordinary course of business pursuant to the Company’s standard unmodified form (a copy of which has been provided to counsel to Purchaser);
(xxvi) any settlement agreement;
(xxvii) any Contract pursuant to which rights of any third party are triggered or become exercisable, or under which any other consequence, result or effect arises, in connection with or as a result of the execution of this Agreement or the consummation of the Share Purchase or other transactions contemplated hereunder, either alone or in combination with any other event; or
(xxviii) any other Contract or obligation not listed in clauses (i) through (xxiii) that individually had or has a value or payment obligation in excess of $10,000 over the life of the Contract or is otherwise material to the Company or its Subsidiaries have material continuing obligations;business, operations, financial condition, properties or assets.
(viib) containing Except as set forth on Schedule 2.20, all Material Contracts are in written form. The Company has performed in all respects all of the obligations required to be performed by it and is entitled to all benefits under, and has not received any written allegation of default in respect of, any Material Contract. Each of the Material Contracts is in full force and effect, subject only to the effect, if any, of applicable bankruptcy and other similar laws affecting the rights of creditors generally and rules of law governing specific performance, injunctive relief and other equitable remedies. There exists no default or event of default with respect to the Company or, to the Company’s knowledge, with respect to any other contracting party under any Material Contract. To the Company’s knowledge, there exists no other event, occurrence, condition or act with respect to the Company which would, with the giving of notice, the lapse of time or the happening of any other event or condition, reasonably be expected to (i) become a default or event of default under any Material Contract or (ii) give any third party (A) the right to declare a covenant default or other provision limiting in exercise any material respect the ability of the Company or remedy under any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessMaterial Contract, (B) “most favored nation”the right to a rebate, “exclusivity” chargeback, refund, credit, penalty or similar provisionschange in delivery Schedule under any Material Contract, (C) a the right to accelerate the maturity or performance of first refusal or right of first offer or similar right that limits the ability any obligation of the Company or any of its Subsidiaries to sellunder any Material Contract, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchasethe right to cancel, minimum volume, “earnout” terminate or modify any Material Contract. The Company has not received any written notice or other contingentcommunication regarding any actual or possible violation or breach of, deferred default under, or fixed payment obligation intention to cancel or modify any Material Contract. The Company does not have any liability for renegotiation of the Company government Contracts. True, correct and its Subsidiaries, in each case, that is material complete copies of all Material Contracts have been provided to Purchaser prior to the Company and its Subsidiaries, taken as a whole;Agreement Date.
(viiic) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire The Company has not entered into any debt securities, of the Company or Contract that restricts any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (area in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company can engage, participate or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) compete with any Governmental Authority entered into since February 1other Person, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person and that would be required to be disclosed under Item 404 of Regulation S-K promulgated under binding upon Purchaser after the Exchange ActClosing, other than including any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or restriction upon competing in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary area of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectlumbar total disc replacement products.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documentsset forth on Schedule 2.19(a), (ii) for this Agreement licenses of, and the other agreements entered into with respect to, the items referred to in connection with the transactions contemplated hereby Section 2.17 and (iii) for Company Employee PlansLeases, as of the date hereofto which no representations or warranties are made other than as set forth in Section 2.9, neither the Company nor any Subsidiary of the Company is not a party to or is bound by by, nor are any Contractof its assets affected by, any:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) note, debenture, bond, equipment trust, letter of Regulation S-K credit, indenture loan or other agreement relating to Indebtedness, lending or investing of money or to the Exchange Act)mortgaging or pledging of any of its assets;
(ii) that is Contract with the ten a Governmental Authority;
(10iii) largest customers guaranty of the Company and its Subsidiaries during the fiscal year ended January 31Indebtedness, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than endorsements made for collection in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contractindemnification or other reimbursement obligations in excess of $100,000;
(v) evidencing a capital expenditure Contract for which future the purchase of materials, supplies, goods or services that involves or would reasonably be expected to involve (A) annual payments are required in excess by the Company of $5,000,000100,000 or more or (B) aggregate payments by the Company, of $250,000 or more;
(vi) relating to the disposition or acquisition of Contracts which prohibit it from freely engaging in any business, equity, or all or substantially all of the assets of activity in any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsgeographic region;
(vii) containing Contract (A) a covenant or other provision limiting in any material respect for the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee sale by the Company or of its Subsidiaries of the obligations of any Person (in each casematerials, excludingsupplies, for the avoidance of doubtgoods, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedgingservices, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent equipment or other rights in or to use Intellectual Property) granted assets, and that involves a specified annual minimum dollar sales amount by the Company of $100,000 or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basismore, or (B) pursuant to which the Company or any Subsidiary received licensing revenues for payments of more than $100,000 in the fiscal year ended January December 31, 2024 2006 or expects to receive payments of more than $100,000 in excess the years ending December 31, 2007 and December 31, 2008;
(viii) Contract that requires the Company to purchase its total requirements of $1,000,000any product or service from a third party or that contains “take or pay” provisions;
(ix) employment, consulting, termination or severance Contract, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) any such Contract that is otherwise material terminable at-will by the Company without liability to the Company and its Subsidiaries taken as a wholeCompany;
(x) partnership or joint venture Contract;
(xi) that is a license (distribution, dealer, representative or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesales agency Contract;
(xii) Contract for the lease of personal property that is a provides for payments to or by the Company Real Property Lease with remaining obligations in excess any one case of $1,000,000100,000 or more annually or $500,000 or more over the term of the lease;
(xiii) that involves a material joint venture, profit sharing, partnership Contract for any capital expenditure or similar agreement from which the Company or leasehold improvement in any of its Subsidiaries recognized revenues one case in excess of $1,000,000 during 100,000 or in the fiscal year ended January 31, 2024aggregate greater than $250,000;
(xiv) Contract that is a settlement, conciliation relates to the acquisition or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any disposition of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements business (whether by merger, sale of stock, sale of assets or restrictions (other than ordinary course confidentiality requirements or restrictionsotherwise);
(xv) Collective Bargaining Agreement or other Contract with any stockholders’ agreementlabor organization, proxy, voting trust agreement union or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiariesassociation; or
(xvi) is with an affiliate any other Contracts not described above which involve the payment to or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among by the Company and its wholly-owned Subsidiariesof $100,000 or more in any twelve consecutive month period.
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 2.19(b), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcyeach contract or commitment listed on Schedule 2.19
(a) (the “Material Contracts”) is valid, insolvency, moratorium binding and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and enforceable against the Company; (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or is not in material default under, the provisions of under any Material Contract, except in each case for those violationshas performed all material obligations under the Material Contracts required to be performed by it, acts and has not received any claim of default under any Material Contract; and (or failures to actiii) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company Seller has received written notice no knowledge of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty breach or anticipated breach by any other party to any Material Contract Contract.
(c) Seller has (A) canceled or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount Buyer true and complete copies of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Sources: Stock Purchase Agreement (Pemco Aviation Group Inc)
Material Contracts. (a) Except (iSchedule 3.13(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement sets forth an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as complete list of the date hereof, neither the Company nor any Subsidiary of following Contracts to which the Company is a party and by which it is currently bound or pursuant to which the Company's business is subject or is bound in respect of which assets, rights or properties are held for use by the Company by any Contractother Person:
(i) that is a “material contract” (as such term is defined all Contracts which contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)capital stock or other equity interests of the Company;
(ii) that is with the ten all Contracts relating to capital expenditures or other purchases of material, supplies, equipment or other tangible assets or properties (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders for inventory or statements of work or invoices entered into supplies in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)business consistent with past practice) in excess of $20,000 individually;
(iii) that is with the ten all Contracts involving a loan (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than accounts receivable from trade debtors in the ordinary course of businessbusiness consistent with past practice) or advance to (other than travel and entertainment allowances to the employees of the Company extended in the ordinary course of business consistent with past practice), and other similar Contracts that are ancillary or investment in, any Person or any Contract relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company)investment;
(iv) that is a Government Contractall Contracts involving Indebtedness of the Company;
(v) evidencing a capital expenditure for all Contracts (including so called take-or-pay or keep-well agreements) under which future payments are required in excess any Person (other than the Company) has directly or indirectly guaranteed Indebtedness of $5,000,000the Company;
(vi) relating to the disposition all Contracts granting or acquisition of evidencing a Lien on any business, equity, properties or all or substantially all assets of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsCompany, other than a Permitted Lien;
(vii) containing all management service, consulting, financial advisory or any other similar type Contract and any Contracts with any investment or commercial bank;
(Aviii) a covenant or other provision all Contracts limiting in any material respect the ability of the Company or any Subsidiary of the Company its Affiliates to compete or engage in any line of business or to compete with any Person or to operate its business in any geographic area, ;
(ix) all Contracts (other than this Agreement and any customary employee non-solicitation agreement or no-hire clauses instrument entered into in pursuant to this Agreement) between the ordinary course of businessCompany and (A) Seller, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability any other Affiliate of the Company or any Affiliate of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties Seller (other than the Company) or (DB) a minimum purchaseany current or former officer, minimum volumedirector or shareholder of the Company, “earnout” Seller or any Affiliate of Seller;
(x) all Contracts (including letters of intent) involving the disposition or acquisition or the future disposition or acquisition of material assets or properties, or any merger, consolidation or similar business combination transaction, whether or not enforceable;
(xi) all Contracts involving any joint venture, partnership, strategic alliance, shareholders' agreement, co-marketing, co-promotion, co-packaging, joint development, distribution or similar arrangement;
(xii) all Contracts involving any material resolution or settlement of any actual or threatened litigation, arbitration, claim or other contingentdispute;
(xiii) all Contracts involving a standstill or similar arrangement;
(xiv) all Contracts involving leases or subleases of personal property, deferred or fixed payment obligation of including capital leases, to which the Company and its Subsidiaries, in each case, that is a party (as lessee or lessor);
(xv) all Contracts which are material to the Company and its Subsidiaries, taken as contain a whole"change in control" or similar provision;
(viiixvi) all Contracts relating to indemnification, whether the Company is the beneficiary or evidencing indebtedness the obligated party thereunder, including Contracts providing for borrowed money, debt securities, warrants indemnification of any Person with respect to Liabilities relating to any current or other rights to acquire any debt securities, former business;
(xvii) all Contracts which include an obligation of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of to indemnify any Person in connection with third party claims relating to infringement or misappropriation of Intellectual Property (unless capped in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries liability at or between or among any wholly-owned Subsidiaries of the Companybelow $25,000);
(ixxviii) any hedgingall customer Contracts (including but not limited to Contracts with respect to hosting services, swapsupport services, derivative, or similar Contractoutsourcing services and other information technology-related services) that individually account for more than $5,000 in sales of the Company on a monthly basis (other than the Contracts with the Company's CMS customers);
(xxix) that is a license all Contracts (or a covenantincluding but not limited to network connection agreements, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basisdata center agreements, (Bequipment leases and disaster recovery service agreements) pursuant to which the Company is provided equipment or any Subsidiary received licensing revenues services that are material to the operation of the Company's business and individually account for more than $25,000 in annual purchases of the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers Company;
(xx) all Contracts not made in the ordinary course of businessbusiness or under which the consequences of a default or termination could reasonably be expected to have, and/or (C) that is otherwise material individually or in the aggregate, a Material Adverse Effect with respect to the Company and its Subsidiaries taken as a wholeCompany;
(xixxi) all Contracts involving cash (or cash equivalents), property, services or other consideration valued at $10,000 or more which are not cancelable by the Company without penalty on thirty (30) days or less notice;
(xxii) all Contracts under which the Company has the right to use any Intellectual Property that is a license material to its business;
(or a covenant, consent or other rights in or to use Intellectual Propertyxxiii) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if all Contracts pursuant to which the Company grants any Person the exclusive right to use any Company Intellectual Property with respect to any line of business or any Subsidiary made payments during geographic area;
(xxiv) all other Contracts not covered by the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) above that is otherwise are material to the business of the Company and its Subsidiaries taken as a whole;; and
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xvxxv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends guaranty with respect to the Company's obligations or performance under any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesforegoing Contracts.
(b) Each Contract of the type described above in Section 4.15(aExcept as noted on Schedule 3.13(b), whether or not each Contract set forth in Section 4.15(aSchedule 3.13(a) of the Company Disclosure Schedule, (or required to be set forth in Schedule 3.13(a)) is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) legal valid and binding on obligation against the Company or and, to the applicable Subsidiary knowledge of Seller, each other party thereto, enforceable in accordance with its terms against the Company, as the case may be, and, to the Knowledge knowledge of the CompanySeller, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary each covenant of the Company has, and, to the Knowledge knowledge of Seller, of each other party thereto, required to have been performed has been fully performed in all material respects, and there exists no (i) default or event of default by the Company or, to the knowledge of Seller, any other party to any such Contract with respect to any material term or provision of any such Contract, or (ii) event, occurrence, condition or act (including the consummation of the Companytransactions contemplated hereby) which, none with the giving of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, the lapse of time or both) would constitute a breach of or default under, the provisions happening of any Material Contract, except in each case for those violations, acts (other event or failures to act) and defaults which, individually or in the aggregatecondition, would not reasonably be expected to have become a default or event of default by the Company Material Adverse Effect and, as of February 1, 2021or, to the Knowledge knowledge of the CompanySeller, neither the Company nor any Subsidiary of the Company has received written notice other party thereto, with respect to any material term or provision of any such Contract. Seller has delivered to Purchaser true and complete copies, including all material amendments, of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material each Contract has (A) canceled or otherwise terminated, or threatened set forth in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSchedule 3.13(a).
Appears in 1 contract
Material Contracts. (a) Except Section 4.09(a) of the Disclosure Schedules sets forth a true, complete and correct list of each of the following Contracts (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements than purchase orders entered into in connection with the transactions contemplated hereby and (iiiordinary course of business and, Contracts that by their terms may be terminated in the ordinary course of business upon less than 60 days’ notice without penalty or premium) for Company Employee Plans, as of the date hereof, neither the Company nor to which any Subsidiary of the Company is a party to or by which any Company is bound by any Contract:and which have not been entirely fulfilled or performed (such Contracts, collectively, the “Material Contracts”):
(i) all Contracts that is a “material contract” (as such term is defined contain restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)Membership Interests or other Equity of any of the Company nor its Subsidiaries;
(ii) any Contract that is with by its terms requires the ten (10) largest customers payment by or on behalf of any of the Company and or its Subsidiaries during in excess of $50,000 per annum or the fiscal year ended January 31delivery by any of the Company nor its Subsidiaries of goods or services with a fair market value in excess of $50,000 per annum or provides for any of the Company or its Subsidiaries to receive payments in excess of $50,000 per annum;
(iii) all Contracts involving a loan (other than accounts receivable owing from trade debtors in the ordinary course of business) or advance to (other than travel and entertainment advances to the employees of any of the Company or its Subsidiaries extended in the ordinary course of business), 2024 or investment in, any Person or any agreement relating to the making of any such loan, advance or investment;
(iv) any Contract that (i) requires any of the Company or its Subsidiaries to purchase any product or service in excess of $50,000 from a third party or (ii) requires that any of the Company or its Subsidiaries deal exclusively with a third party in connection with the sale or purchase of any product or service;
(v) any Contract that relates to an acquisition or divestiture of material assets that contains covenants, indemnities or other contractual obligations that could impose a Liability that is material to any of the Company or its Subsidiaries;
(vi) any Contract under which any of the Company or its Subsidiaries has any outstanding Debt or evidencing an Encumbrance on any property or asset of any of the Company or its Subsidiaries, other than a Permitted Encumbrance;
(vii) all Contracts under which any Person (other than the Company or its Subsidiaries) has directly or indirectly guaranteed Debt of any of the Company or its Subsidiaries;
(viii) any bonds or Contracts of Guarantee in which any of the Company or its Subsidiaries acts as determined based on revenue received a surety or guarantor with respect to any obligation (fixed or contingent) of another Person;
(ix) all Contracts involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement;
(x) all Contracts involving any resolution or settlement of any actual or threatened Action under which any of the Company or its Subsidiaries has any obligation or Liability that will continue after the Closing Date;
(xi) any Contract limiting or restraining any of the Company or its Subsidiaries or any successor thereto from engaging or competing in any manner, in any location or in any business;
(xii) all Affiliate Contracts;
(xiii) any Contract providing for the license of or settlement with respect to the Company or its Subsidiaries’ Intellectual Property (other than commercially available software and hardware), as well as Intellectual Property license agreements under which any of the Company or its Subsidiaries is currently a licensee;
(xiv) any Contract concerning the occupancy, management or operation of any Real Property owned, leased or used by any of the Company or its Subsidiaries;
(xv) all collective bargaining agreements entered into by any of the Company or its Subsidiaries; and
(xvi) any Contract providing that any of the Company or its Subsidiaries indemnify any Person in an amount that would be material to such customers during Company or Subsidiary, other than any such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices agreement entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);.
(iiib) that is with the ten (10) largest vendors Each of the Company and all of its Subsidiaries during is in material compliance with the fiscal year ended January 31, 2024 (as determined based on cost terms and provisions of goods and services paid each Material Contract. No party to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Material Contract is in breach or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or default under any of its Subsidiaries outside terms. Neither of the ordinary course of business pursuant to which the Company or nor its Subsidiaries have material continuing obligations;has received written notice of any breach, default or notice of termination by any Person under any Material Contract. A copy of each written Material Contract has been provided to the Parent and a description of each verbal Material Contract is set forth in Section 4.09(a) of the Disclosure Schedules.
(viic) containing Each Material Contract is (Ai) a covenant or other provision limiting in any material respect the ability valid and binding on each of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete accordance with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, respective terms and (Bii) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary None of the Company has, and, or its Subsidiaries is in breach of or default under (or is alleged to the Knowledge be in breach of the Company, none of the other parties thereto have, violated any provision ofor default under), or committed has provided, delivered, or failed received any notice of any intention to perform terminate, any act under, and no Material Contract. No event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute an event of default under any Material Contract or result in a breach of termination thereof or default under, would cause or permit the provisions acceleration or other changes of any Material Contract, except right or obligation or the loss of any benefit thereunder.
(d) Other than as set forth in each case for those violations, acts (or failures to actSection 4.09(d) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanyDisclosure Schedules, neither of the Company nor its Subsidiaries has any Subsidiary Liability for the deferred purchase price of property, goods or services, whether connected or not to the Company has received written notice acquisition of any business (earn-out or other similar type of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicablepayments) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectnoncompetition agreement.
Appears in 1 contract
Sources: Agreement and Plan of Merger and Reorganization (Green Thumb Industries Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.13 of the Company SEC DocumentsDisclosure Schedule sets forth a list of ------------ all of the following agreements, (ii) for this Agreement contracts and commitments, written or oral, to which the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, or any of its subsidiaries is a party or by which any of them or any of their respective properties is bound as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
this Agreement: (i) that is a “mortgages, indentures, security agreements and other material contract” (as such term is defined in Item 601(b)(10) agreements and instruments relating to the borrowing of Regulation S-K money by or extension of the Exchange Act);
(ii) that is with the ten (10) largest customers of credit to the Company or any of its subsidiaries (other than accounts payable, accrued expenses, customer advances and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into similar items in the ordinary course of business, and other similar Contracts business that are ancillary to Contracts pursuant to which revenue is paid might be deemed the extension of credit) or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 guarantee by the Company or any of its Subsidiaries outside subsidiaries of the ordinary course indebtedness of business pursuant to which any person where the amount of such borrowed money, credit extension or indebtedness exceeds $25,000 individually; (ii) employment agreements, consulting agreements and commitments with any officer, employee or member of the Company's or any of its subsidiaries' Board of Directors not cancelable by the Company or one of its Subsidiaries have material continuing obligations;
subsidiaries, as the case may be, on not more than 90 days' notice and without liability or financial obligation or which involve payments in excess of $25,000; (viiiii) containing (A) a covenant agreements, orders or other provision limiting in any material respect commitments not cancelable by the ability Company or one of its subsidiaries, as the case may be, on not more than 90 days' notice and without liability or financial obligation for the purchase by the Company or any Subsidiary one of its subsidiaries of supplies or finished products exceeding $50,000 per year; (iv) agreements or commitments for capital expenditures involving payments in excess of $25,000 for any single item or $100,000 in the Company aggregate; (v) agreements that restrict the Company's or any of its subsidiaries' ability to compete or engage in any business, any line of business or to compete with any Person in any geographic arearegion or would so limit the Company, other than any customary employee non-solicitation of its subsidiaries, or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company Surviving Corporation or any of its Subsidiaries subsidiaries after the Effective Time; (vi) except as contemplated in Section 2.9 with respect to sellCompany Options set forth in Section ------- 3.2(b) in the Company Disclosure Schedule, transferagreements or plans, pledge including any ------ stock option plan, stock appreciation right or otherwise dispose of assetsstock purchase plan, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation any of the Company benefits of which will be accelerated or the value of which will be calculated by the occurrence of any of the transactions contemplated by this Agreement, the Transaction Option Agreement or the Stockholders' Agreements; (vii) agreements, contracts and its Subsidiaries, commitments other than those described in each case, that is material to the Company foregoing clauses (i) through (vi) which in any case involve payments or receipts of more than $100,000 per year and its Subsidiaries, taken as a whole;
which are not cancelable on not more than 90 days' notice and without liability or financial obligation; (viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) agreements pursuant to which the Company or any Subsidiary received licensing revenues of its subsidiaries manufactures products for the fiscal year ended January 31, 2024 in excess of $1,000,000, sale by third parties (i.e. OEM or private labeling agreements); (ix) indemnification agreements or subrogation agreements other than non-exclusive those contemplated in the Company Charter Documents, licenses granted to customers entered into or warranties given in the ordinary course of business, and/or business and similar ordinary course of business undertakings; (Cx) that is otherwise material to the Company agreements with U.S. or foreign distributors; and its Subsidiaries taken as a whole;
(xi) that is a license (agreements, contracts and commitments which are currently effective and which have been, or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary as of the Company (A) on an exclusive basisdate of this Agreement will be, (B) on a non-exclusive basis, if pursuant required to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which be filed by the Company or any of its Subsidiaries recognized revenues subsidiaries with the SEC pursuant to the requirements of the Exchange Act and the rules and regulations thereunder (the items in excess of $1,000,000 during (i) through (xi) above being, collectively, the fiscal year ended January 31, 2024;"Material Contracts"). ------------------
(xivb) that The Company has heretofore furnished to Parent a complete and correct copy of each Material Contract (unless any such Material Contract has not been reduced to writing, in which case the Company has provided a complete and correct written description thereof). Each such Material Contract identified in Section 3.13 of the Company Disclosure Schedule is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities valid and binding ------------ obligation of the Company or any one of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Companysubsidiaries, as the case may be, andand is in full force and effect without amendment, except where not being a valid and binding obligation or in full force and effect without amendment would not have a Material Adverse Effect on the Company. The Company or one of its subsidiaries, as the case may be, has performed, and to the Knowledge Company's and each of the Companyits subsidiaries' knowledge, each other party theretoto any such Material Contract has performed, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default underall material respects, the provisions of any obligations required to be performed by it under the Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the CompanyContracts, neither the Company nor any Subsidiary of its subsidiaries is, and to the Company's and each of its subsidiaries' knowledge, no other party to any such Material Contract is (with or without lapse of time or the giving of notice, or both), in material breach or default thereunder, and to the Company's and each of its subsidiaries' knowledge no event has occurred which, after notice or the passage of time or both, would constitute a material default under any such Material Contract or impair the Company's or any of its subsidiaries' material rights under any Material Contract, or give to any person rights of termination, amendment, acceleration or cancellation of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Sources: Merger Agreement (Agfa Corp)
Material Contracts. (a) Except as disclosed in Section 6.15 of the Vaxcel Disclosure Memorandum or otherwise reflected in the Vaxcel Financial Statements, none of the Vaxcel Companies, nor any of their respective Assets, businesses, or operations, is a party to, or is bound or affected by, or receives benefits under, (i) as filed as exhibits any employment, severance, termination, consulting or retirement Contract providing for aggregate payments to the Company SEC Documentsany Person in any calendar year in excess of $10,000, (ii) for this Agreement any Contract relating to the borrowing of money by any Vaxcel Company or the guarantee by any Vaxcel Company of any such obligation (other than Contracts evidencing trade payables and Contracts relating to borrowings or guarantees made in the ordinary course of business), (iii) any Contract which prohibits or restricts any Vaxcel Company from engaging in any business activities in any geographic area, line of business or otherwise in competition with any other agreements Person, (iv) any Contract between or among Vaxcel Companies, (v) any Contract involving Intellectual Property (other than Contracts entered into in connection the ordinary course with customers and "shrink-wrap" software licenses), (vi) any Contract relating to the transactions contemplated hereby provision of data processing, network communication, or other technical services to or by any Vaxcel Company, and (iiivii) for Company Employee Plans, as any Contract relating to the purchase or sale of the date hereof, neither the Company nor any Subsidiary of the Company is a party to goods or is bound by any Contract:
services (i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices other than Contracts entered into in the ordinary course of business, business and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding involving payments under any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required individual Contract not in excess of $5,000,000;
20,000) (vitogether with all Contracts referred to in Sections 6.9 and 6.14(a), the "Vaxcel Contracts"). With respect to each Vaxcel Contract: (i) relating to the disposition Contract is in full force and effect; (ii) no Vaxcel Company is in Default thereunder; (iii) no Vaxcel Company has repudiated or acquisition waived any material provision of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
such Contract; and (viiiv) containing (A) a covenant or no other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries party to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any such Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andis, to the Knowledge of the CompanyVaxcel, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually Default in any respect or in the aggregate, reasonably be expected to have a Company Material Adverse Effecthas repudiated or waived any material provision thereunder. Neither the Company nor any Subsidiary All of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions indebtedness of any Material Contract, except in each case Vaxcel Company for those violations, acts (money borrowed is prepayable at any time by such Vaxcel Company without penalty or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectpremium.
Appears in 1 contract
Sources: Agreement and Plan of Merger and Contribution (Cytrx Corp)
Material Contracts. (a) Except (i) as filed as exhibits to set forth in Section 4.16 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter, as of the date hereof, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractany:
(i) that is a “material contract” " (as such term is defined in Item item 601(b)(10) of Regulation S-K of the Exchange ActSEC);
(ii) contract or instrument relating to Financial Indebtedness with a principal amount in excess of $1,000,000 or relating to any interest rate, currency or commodity derivatives or hedging transactions for which the aggregate exposure is reasonably expected to be in excess of $1,000,000;
(iii) contract to which the Company is a party that is with materially restricts the ten (10) largest customers Company from engaging or competing in any line of business or in any geographic area, or which would so restrict the Company following a change in control of the Company and its Subsidiaries during Company;
(iv) contract with any Governmental Authority currently in effect that generated annual revenues in excess of $1,000,000 in the most recently completed fiscal year ended January 31year;
(v) contract for the sale or purchase of any real property, 2024 (as determined based on revenue received from such customers during such time period) or for the sale or purchase of any tangible personal property (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into sales in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required an amount in excess of $5,000,0005,000,000 within the past five (5) years;
(vi) contract relating to settlement of any administrative or judicial proceedings within the past three (3) years that results in the payment of monetary damages in excess of $1,000,000, excluding payments made through insurance proceeds;
(vii) contract relating to any single or series of related capital expenditures by the Company or its Subsidiaries in excess of $3,000,000 within the past three (3) years;
(viii) joint venture agreement to which the Company or any of its Subsidiaries is a party and has an equity ownership interest;
(ix) contract (A) providing for the disposition or acquisition of any assets, business, equity, securities or all or substantially all otherwise outside the ordinary course of the assets of any Person for aggregate consideration in excess of $5,000,000 business by the Company or any of its Subsidiaries outside or for consideration in excess of the ordinary course of business $1,000,000, or (B) pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” has any ownership interest in any other person or other contingentbusiness enterprise, deferred or fixed payment obligation other than other Subsidiaries of the Company and its Subsidiaries, in each caseCompany, that is would reasonably be expected to be material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, case other than contracts for the avoidance transactions that have closed and non-binding letters of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contractintent following which there is no related activity thereto;
(x) that is a license (or a covenantlicense, consent sublicense, development agreement, or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from under which the Company or any of its Subsidiaries recognized revenues has granted or received any rights in excess any Intellectual Property Rights (other than non-exclusive licenses or other rights granted to suppliers and customers in connection with the sale or manufacture of $1,000,000 during Company products in the fiscal year ended January 31ordinary course of business), 2024;
in each case (xivA) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require are material to the business of the Company and its Subsidiaries; or any of its Subsidiaries to pay consideration (B) that require recurring payments of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (per year; in each case other than ordinary course confidentiality requirements or restrictions)licenses to commercial off-the-shelf software available for a fee of not more than $100,000;
(xvxi) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities contract with the ten largest customers and the ten largest suppliers of the Company Company, as measured by the dollar amount of purchases therefrom or any of its Subsidiaries or relating to dispositionthereby, voting or dividends with respect to any equity securities of during the Company or any of its Subsidiariesmost recently completed fiscal year; or
(xvixii) is contract in connection with an affiliate any acquisition or disposition entered into since January 1, 2011 pursuant to which the Company has any continuing "earn-out" or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) contingent payment obligations. Each Contract contract of the type described above in this Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, 4.16 is referred to herein as a “"Company Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all "
(b) Neither the Company nor any Subsidiary of the Company is or is alleged to be in breach of or default under the terms of any Company Material Contracts are (A) valid and binding on Contract where such breach or default would have, or would reasonably be expected to have, individually or in the aggregate, a Company or Material Adverse Effect. To the applicable Subsidiary Knowledge of the Company, as no other party to any Company Material Contract is in breach of or default under the case may beterms of any Company Material Contract where such breach or default would have, or would reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect. Each Company Material Contract is a valid and binding obligation of the Company and, to the Knowledge of the Company, each other party thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot have, and would not reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither ; provided that (i) such enforcement may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws, now or hereafter in effect, relating to creditors' rights generally and (ii) equitable remedies of specific performance and injunctive and other forms of equitable relief may be subject to equitable defenses and to the Company nor any Subsidiary discretion of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated court before which any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably proceeding therefor may be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectbrought.
Appears in 1 contract
Sources: Merger Agreement (Nortek Inc)
Material Contracts. (a) Except Schedule 3.13(a) sets forth a list that is correct and complete in all material respects of the following Transferred Contracts (including the Contracts required to be listed on Schedules 3.10(e), 3.13(a) and 3.23, the “Material Contracts”):
(i) as filed as exhibits any Contracts where (A) the performance remaining thereunder involves aggregate consideration to or by Seller in excess of $150,000 per annum or $500,000 over the Company SEC Documentslife of such Contract, (ii) for this Agreement and the other than “shrink wrap” or “click through” license agreements or other software license agreements entered into in connection with the transactions contemplated hereby Ordinary Course of Business and (iiiB) for Company Employee Planssuch agreement is not cancelable, as of the date hereofwithout material penalty, neither the Company nor any Subsidiary of the Company is a party to by Seller on 90 days’ or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)less notice;
(ii) that is any Contracts which restrict or limit the ability of Seller to compete in any line of business, with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders other Person or statements of work or invoices in any geographic area other than license agreements entered into in the ordinary course Ordinary Course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Business;
(iii) that is with pledges or security agreements or similar arrangements constituting a Lien upon the ten (10) largest vendors Transferred Assets and any settlement or similar agreement in respect of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Litigation;
(iv) that is any Contracts for the sale or purchase of personal property having a Government Contractvalue individually, with respect to all sales or purchases thereunder, in excess of $150,000, other than agreements with respect to sale of inventory entered into in the Ordinary Course of Business;
(v) evidencing any Contracts, for the sale or purchase of fixed assets or real estate having a capital expenditure for which future payments are required value individually, with respect to all sales or purchases thereunder, in excess of $5,000,000150,000;
(vi) any Contract relating to the acquisition or disposition or acquisition of any businessmaterial business of Seller (whether by merger, equityconsolidation or other business combination, sale of securities, sale of assets or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsotherwise);
(vii) containing any Contract concerning or consisting of (Ai) a covenant partnership, limited liability company or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessjoint venture agreement, (B) “most favored nation”, “exclusivity” or similar provisions, (Cii) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties sponsorship agreement or (Diii) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholecorporate licensing agreement;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the CompanyContract under which Seller is, or may become, obligated to incur any guarantee severance pay or special compensation obligations which would become payable by reason of, this Agreement or the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)transactions contemplated hereby;
(ix) any hedgingprofit sharing, swapstock option, derivativestock purchase, stock appreciation, deferred compensation, severance, or similar Contractother plan or arrangement for the benefit of the Seller’s current or former directors, managers, officers, employees, consultants and independent contracts (other than a Benefit Plan set forth on Schedule 3.11(a));
(x) that is a license (or a covenantany agency, consent sourcing, dealer, distributor, sales representative, marketing or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesimilar agreement;
(xi) any Contract that is a license (contains most favored customer pricing provisions, rights of return or a covenantgrants any exclusive rights, consent rights of first refusal, rights of first negotiation or other similar rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholePerson;
(xii) that is a Company any lease in respect of the Occupied Real Property Lease with remaining obligations in excess of $1,000,000;Property; and
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAuthority.
(b) Each Seller has delivered to Buyer true, accurate and complete copies of each Contract of the type described above in Section 4.15(arequired to be listed on Schedule 3.13(a), whether in each case, as amended or not set forth otherwise modified and in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the effect. All Material Contracts are (A) valid in full force and binding on the Company or the applicable Subsidiary of the Company, as the case may be, effect and enforceable against Seller and, to the Knowledge of the CompanySeller’s Knowledge, each other party thereto, and (B) in full force and effect, except (i) each case in accordance with the express terms thereof. Except as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andset forth on Schedule 3.13(b), to the Seller’s Knowledge in respect of the Companyany violation, none breach or event of default of the other parties thereto haveparty to the Contract, violated there does not exist under any provision ofMaterial Contract any material violation, breach or event of default, or committed alleged material violation, breach or failed to perform any act underevent of default, and no or event or condition existsthat, which (with after notice or without notice, lapse of time or both) , would constitute a material violation, breach or event of default thereunder on the part of Seller or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectAffiliates.
Appears in 1 contract
Material Contracts. (a) Except Schedule 4.21 sets forth a true and complete list of all Contracts and other instruments (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as exception of the date hereof, neither the Company nor any Subsidiary of the Company License Agreements listed on Schedule 4.19(b)) to which each Thane Entity is a party that are material to the business, operations, properties, prospects or is bound by financial condition of any Contractof them (collectively, the "Thane Commitments"), including without limitation:
(i) that is a “any material contract” (as such term is defined in Item 601(b)(10) agreement, Contract or commitment relating to the employment of Regulation S-K of the Exchange Act)any Person by any Thane Entity, or any bonus, deferred compensation, pension, profit sharing, Option, employee stock purchase, retirement or other employee benefit plan;
(ii) that is any material agreement, indenture or other instrument which contains restrictions with the ten respect to payment of dividends or any other distribution in respect of its capital stock;
(10iii) largest customers any agreement, Contract or commitment relating to capital expenditures in excess of the Company and its Subsidiaries during the $100,000 in any fiscal year ended January 31year;
(iv) any agreement to acquire, 2024 directly or indirectly, any equity interest in or assets of any other Person (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementsother than purchases of supplies, data processing agreementsinventory, purchase orders or statements of work or invoices entered into equipment in the ordinary course of business) whether or not the transactions contemplated thereby have been consummated, and other similar Contracts that are ancillary under which an Thane Entity continues to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)have any outstanding obligations;
(iiiv) that is with the ten any loan (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than accounts receivable from trade debtors arising in the ordinary course of business) or advance to (other than travel or entertainment advances to employees made in the ordinary course of business), and other similar Contracts that are ancillary or Investment in, any Person or any agreement, Contract or commitment relating to Contracts pursuant to which cost the making of goods and services is paid any such loan, advance or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000Investment;
(vi) any agreement relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration Indebtedness in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations100,000;
(vii) containing (A) a covenant any guarantee or other provision limiting contingent liability in respect of any Indebtedness or obligation of any other Person (other than the endorsement of negotiable instruments for collection in the ordinary course of business) in excess of $100,000;
(viii) any material respect management service, consulting, financial advisory or any other similar type Contract including, without limitation, any Contract with any investment or commercial bank;
(ix) any material agreement, Contract or commitment limiting the ability of the Company or any Subsidiary of the Company Thane Entity to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractPerson;
(x) that is a license (any agreement, Contract or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to commitment which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 involves payments in excess of $1,000,000100,000 in any calendar year and is not cancelable without penalty within thirty (30) days;
(xi) any agreement, Contract or commitment for the disposal of a material amount of assets or properties of any Thane Entity (other than non-exclusive licenses granted sales to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole);
(xii) that any agreement, Contract or commitment which is material to any Thane Entity and contain a Company Real Property Lease with remaining obligations "change in excess of $1,000,000control" or similar provision;
(xiii) that involves a any agreement, Contract or commitment relating to any material joint venture, profit sharingpartnership, partnership strategic alliance or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024arrangement;
(xiv) that is a settlementany material agreement, conciliation Contract or similar Contract (x) commitment with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Affiliate;
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends source code agreements with respect to any equity securities of the Company or any of its Subsidiariesthird parties; orand
(xvi) is with an affiliate any other material agreement, Contract or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariescommitment.
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the CompanySchedule 4.21, each other party thereto, and (B) Thane Commitment is in full force and effecteffect on the date hereof. No Thane Entity is in default in respect of any Thane Commitment, and no event has occurred which, with due notice or lapse of time or both, would constitute such a default, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would for any such defaults that could not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to To the Knowledge of the CompanyThane, none no other party to any of the other parties thereto have, violated any provision of, or committed or failed to perform any act underThane Commitments is in default in respect thereof, and no event has occurred which, with due notice or condition exists, which (with or without notice, lapse of time or both) , would constitute such a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectdefault.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Reliant Interactive Media Corp)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Section 3.13 of the date hereof, neither Disclosure Schedule lists the Company nor any Subsidiary of following agreements to which the Company is a party to or is bound by any Contractand which are in effect on the date hereof:
(i) that is any contract requiring a “material contract” (as such term is defined capital expenditure by the Company in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$5 million in any calendar year;
(ii) that is with the ten (10) largest customers of any contract requiring known or liquidated expenditures or payments by the Company and its Subsidiaries during the fiscal year ended January 31in excess of $5 million in any calendar year, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts than those that are ancillary to Contracts pursuant to which revenue is paid or payable to can be terminated without material penalty by the Company or its Subsidiaries)upon not more than 180 days’ notice;
(iii) that is with the ten (10) largest vendors of any contract under which the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid is obligated to such vendors by the Company during such time period) sell or lease personal property (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements sales of work or invoices entered into items of inventory in the ordinary course Ordinary Course of business, and other similar Contracts that are ancillary Business) to Contracts pursuant to which cost another Person having a value in excess of goods and services is paid or payable by the Company)$5 million in any calendar year;
(iv) any contract that is contains a Government Contractcovenant not to compete or restricts the rights of the Company to freely engage in business anywhere in the world;
(v) evidencing a capital expenditure any contract under which the Company has (A) created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) indebtedness for which future payments are required borrowed money in excess of $5,000,00025 million individually or in the aggregate, (B) granted a Lien on its assets, whether tangible or intangible, to secure such indebtedness for borrowed money in excess of $25 million individually or in the aggregate or (C) extended credit to any Person, in each case, in an amount in excess of $5 million of committed credit;
(vi) relating to the disposition any collective bargaining or acquisition of any business, equity, similar labor contracts or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsagreements;
(vii) containing (A) any contract establishing any joint venture, partnership or limited liability company involving a covenant or other provision limiting in any material respect the ability sharing of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete profits and losses with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholePerson;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of contract with any Governmental Authority under which the Company is required to pay more than $5 million in any calendar year or receives benefits of more than $5 million in any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)calendar year;
(ix) any hedgingcontract with any supplier under which the Company is obligated to purchase goods (other than capital expenditures) or services, swapincluding advertising, derivativemarketing or promotion of Company products, involving consideration in excess of $5 million in any calendar year (except with respect to purchase of items of inventory in the Ordinary Course of Business), or similar Contractthat is not terminable by the Company upon notice of 180 days or less;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary contract with any customer of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to under which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 is obligated to sell Company products in an amount in excess of $1,000,000, other than non-exclusive licenses granted to customers 5 million in the ordinary course of business, and/or (C) any calendar year or that is otherwise material to not terminable by the Company and its Subsidiaries taken as a wholeupon notice of 180 days or less;
(xi) that is a license (any contract or a covenant, consent or other rights in or to use Intellectual Property) series of Third Party Rights granted to related contracts for the Company or sale of any Subsidiary asset of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 involving consideration in excess of $1,000,0005 million individually, and/or (C) that is otherwise material or $10 million in the aggregate, except with respect to sales of items of inventory in the Company and its Subsidiaries taken as a wholeOrdinary Course of Business;
(xii) that any contract under which the Company is obligated to make any payment or which otherwise becomes due as a Company Real Property Lease with remaining obligations in excess result of $1,000,000the consummation of the transactions contemplated hereby (including all transaction bonuses, change of control payments, “stay” bonuses, “phantom” stock and similar payments);
(xiii) any contract that involves contains a material joint venture, profit sharing, partnership “take or pay” or other similar agreement from which terms involving the Company or any of its Subsidiaries recognized revenues expenditure in excess of $1,000,000 during 5 million or that is not terminable by the fiscal year ended January 31, 2024Company upon notice of 180 days of less;
(xiv) any contract obligating the Company to sell goods containing a “most favored nation” or other similar pricing terms involving consideration in excess of $5 million or that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require not terminable by the Company upon notice of 180 days or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)less;
(xv) any stockholders’ agreement, proxy, voting trust agreement contract containing a minimum sales or registration rights agreement volume requirement or similar agreements, arrangements providing for rebates in excess of $5 million or commitments relating to any equity securities of that is not terminable by the Company upon notice of 180 days or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; orless;
(xvi) is any material contract with an affiliate any present employee, contractor or other Person that would be required to be disclosed under Item 404 consultant of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company for employment, separation from employment, or to perform services; and
(xvii) to the Company’s Knowledge, any other agreement which is material to the operations and its wholly-owned Subsidiariesbusiness of the Company, taken as a whole, whether or not in the Ordinary Course of Business, the termination of which would have a Material Adverse Effect on the Company. All contracts set forth in Section 3.11, 3.13 and 3.16(a) of the Disclosure Schedule are referred to herein as “Material Contracts.”
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(a3.13 of the Disclosure Schedule, (i) each Material Contract is in full force and effect and is the legal, valid and binding obligation, subject to the Remedies Exception, of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of Company’s Knowledge, the Companyother parties thereto (the “Other Parties”), each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notneither the Company, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andnor, to the Knowledge Company’s Knowledge, any of the CompanyOther Parties to any Material Contract is in breach, none of the other parties thereto have, violated any provision of, violation or committed or failed to perform any act underdefault, and no event has occurred which with notice or condition exists, which (with or without notice, lapse of time or both) both would constitute a breach of breach, violation or default underby the Company or, to the provisions of Company’s Knowledge, any Other Party, or permit termination, modification, or acceleration by the Other Parties under such Material Contract, except in each case for those violationsbreaches, acts (violations or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectEffect on the Company.
Appears in 1 contract
Sources: Stock Purchase Agreement (Kapstone Paper & Packaging Corp)
Material Contracts. (a) Except Section 3.10(a) of the Seller Disclosure Letter sets forth a true and complete list of the Contracts with any party other than (x) Seller and its Affiliates or (y) except with respect to clauses (iii) and (iv) below, any original equipment manufacturer or supplier to the Business, that are (in each case) primarily related to the Acquired Business (provided, with respect to clause (i) as filed as exhibits below, solely to the Company SEC Documentsextent relating to an Assigned Contract and, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and respect to clauses (iii) and (iv) below, including with respect to any Contract with original equipment manufacturers or suppliers to the Business that relates to the Acquired Business) and that provide for Company Employee Plansany of the following, in each case, which are in effect as of the date hereof (such Contracts, together with any Contract which, had it been entered into prior to the date hereof, neither the Company nor any Subsidiary would have been required to be listed on Section 3.10(a) of the Company is a party to or is bound by any Contract:Seller Disclosure Letter, the “Material Contracts”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any covenant expressly prohibiting or materially restricting the ability of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company Seller or any of its Subsidiaries outside Affiliates to conduct the Acquired Business, limiting or purporting to limit Seller or any of its Affiliates, or which following the ordinary course Closing would limit or purport to limit Purchaser or any of its Affiliates, in each case, from engaging in any material line of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting competing in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaarea or during any period of time, providing for any exclusivity obligations, granting any exclusive rights to products or services, obligating the Acquired Business or any counterparty to purchase or obtain a minimum or specified amount (other than where such amount is less than $5,000,000 (or equivalent) per annum) of any customary employee non-solicitation product or no-hire clauses entered into in the ordinary course of businessservice, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a granting any right of first refusal or refusal, right of first offer or similar right that limits the ability with respect to any material assets of the Company Acquired Business;
(ii) any annual payment or any annual receipt of its Subsidiaries royalties or similar payments of more than $5,000,000 in the aggregate;
(iii) annual payments or consideration furnished (A) to sell, transfer, pledge or otherwise dispose the Acquired Business in excess of assets, rights or properties $5,000,000 or (DB) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation by the Business in excess of the Company and its Subsidiaries$50,000,000, in each case, that is material to in the Company and its Subsidiaries12-month period ended September 30, taken as a whole2016;
(viiiiv) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, Contract with any of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Material Counterparties (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company Seller and its Subsidiaries taken as a whole;
(xiAffiliates or the SHO Group) that is a license (providing for annual payments or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations consideration in excess of $1,000,000;
(xiiiv) that involves any grant of a right or license (A) by a third party in favor of Seller or any of its Affiliates to Acquired Business Intellectual Property, or (B) by Seller or any of its Affiliates in favor of any third party to Acquired Business Intellectual Property, in each case under a Contract involving annual payments in excess of $5,000,000; and
(vi) any material joint venture, profit sharingstrategic alliance, partnership or similar agreement from which the Company arrangement involving a sharing of profits or any expenses of its Subsidiaries recognized payments based on revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities profits of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAcquired Business.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (iSection 3.12(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary Seller Disclosure Schedules sets forth a correct and complete list of the following Contracts to which an Acquired Company is a party to or is bound by any Contract:(collectively, the “Material Contracts”):
(i) any Contract or form of Contract that is a “material contract” (as contract manufacturing agreement, and, in each case, such term is defined Contract, including any purchase orders under any such form of Contract, involves payments by any Acquired Company or other consideration between the parties with a value in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$2,500,000 per year;
(ii) creates (or governs the operation of) a joint venture, alliance or partnership that is material to the Acquired Companies taken as a whole;
(iii) any Contract that prohibits any Acquired Company from (A) engaging or competing in any material line of business, in any geographic location or with the ten any Person or (10B) largest customers selling any material products or services of or to any other Person or in any geographic region, in each case that cannot be cancelled by an Acquired Company without material penalty upon no more than ninety (90) days’ notice;
(iv) any Contract relating to (A) indebtedness of the Acquired Companies having an outstanding principal amount (or equivalent) in excess of $1,250,000 other than any such Contract solely among the Acquired Companies or (B) conditional sale arrangements, or the sale, securitization or servicing of loans or loan portfolios, in each case in connection with which the aggregate actual or contingent obligations of the Acquired Companies under such Contract are greater than $1,250,000;
(v) any Contract that obligates an Acquired Company and to provide a guarantee of the performance or payment of obligations of any third party (other than guarantees of payment of indebtedness) that would reasonably be expected to result in payments in excess of $500,000;
(vi) any Contract that is an acquisition agreement, stock purchase agreement, asset purchase agreement or other similar agreement entered into after January 1, 2010 pursuant to which any Acquired Company has made a material acquisition or disposition or pursuant to which such Acquired Company has continuing material indemnification, “earn-out” or other contingent payment obligations;
(vii) any Contract with any Governmental Body or any entity set forth on Section 3.12(a)(vii) of the Seller Disclosure Schedules that would reasonably be expected to result in payments in excess of $250,000;
(viii) any Contract pursuant to which any Acquired Company (A) receives a license to Intellectual Property from any other Person (other than Seller or any of its Subsidiaries during the fiscal year ended January 31Affiliates), 2024 (as determined based on revenue received from such customers during such time periodB) grants a license to any other Person (excluding other than Seller or any nonof its Affiliates) under any Company Intellectual Property or (C) is restricted in its right to use or register any material Company Intellectual Property, including co-disclosure existence agreements, data processing agreements, purchase orders in each case of the foregoing (A) through (C) that is material to the conduct or statements operation of work the business of the Acquired Companies (other than (1) licenses to commercially available software or invoices software-as-a-service agreements and (2) licenses or grants of rights ancillary to commercial agreements entered into in the ordinary course of businessbusiness (including with respect to manufacturing, customer, supply, distribution, retail and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure marketing agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar ContractContract that is a collective bargaining agreement;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues Contract for the fiscal year ended January 31purchase of materials, 2024 in excess of $1,000,000supplies, goods or services, other than non-exclusive licenses granted purchase contracts in respect of capital goods, that to customers in the ordinary course Sellers’ Knowledge requires total payments of business, and/or $250,000 or more that cannot be terminated on less than one hundred and twenty (C120) that is otherwise days’ notice without payment of any material to the Company and its Subsidiaries taken as a whole;penalty.
(xi) any Contract for the sale of products that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made Sellers’ Knowledge requires total payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or 5,000,000 or more that cannot be terminated on less than one hundred and twenty (C120) that is otherwise days’ notice without payment of any material to the Company and its Subsidiaries taken as a wholepenalty;
(xii) that is a Company Real Property Lease with remaining obligations in excess any Contracts between an Acquired Company, on the one hand, and any Seller or any of $1,000,000;its Affiliates (other than the Acquired Companies), on the other hand; and
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the any Material Acquired Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesLease.
(b) Each Sellers have made available to Buyer copies of each Material Contract which are correct and complete in all material respects (subject to any redaction reasonably deemed necessary or appropriate by Sellers of the type described above in Section 4.15(ainformation contained therein), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” . Except for Material Contracts matters that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have not had a Company Material Adverse Effect. Neither , (i) each Material Contract is in full force and effect and is a valid and binding agreement of an Acquired Company enforceable against an Acquired Company in accordance with its terms, except as such enforceability may be limited by the Enforceability Limitations and (ii) no Acquired Company nor any Subsidiary of the Company has, andnor, to the Knowledge of the CompanySellers’ Knowledge, none of the any other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty party to any Material Contract has (A) canceled is in material breach of or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or material default under any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to Section 4.11 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Letter sets forth, as of the date hereofof this Agreement, neither a list of each Contract (other than Benefit Plans, Government Contracts and Government Bids) primarily related to the Company nor Business or any Subsidiary of the Company Transferred Assets that is of the type set forth below (each, a “Material Contract”):
(a) a Contract (or group of related Contracts with respect to a single transaction or series of related transactions) that involves payments, performance or services or delivery of goods or materials to or by the Asset Seller of any amount or value in excess of, or reasonably expected to exceed, $100,000 in any twelve (12) month period and which, in each case, cannot be cancelled without penalty or without more than 30 days' notice;
(b) a Contract that is a party to joint venture agreement or is bound by similar agreement involving the sharing of profits and losses;
(c) a Contract that contains any Contract:
(i) that is a “material contractmost favored nation” (as such term is defined pricing in Item 601(b)(10) favor of Regulation S-K any customer of the Exchange Act);
Business in a manner material to the Business, (ii) that is with a provision expressly requiring the ten (10) largest customers of the Company and Buyer or its Subsidiaries during to purchase goods or services exclusively from another Person immediately following the fiscal year ended January 31Closing, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based express restriction on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company Buyer or any Subsidiary of the Company its Subsidiaries to compete or engage in any line of business or to compete with any Person or to provide services generally or in any market segment or any geographic areaarea immediately following the Closing or (iv) that require the Asset Seller or the Company to purchase or sell a stated portion of the requirements or outputs of the Business or that contain "take or pay" provisions;
(d) a Contract pursuant to which the Asset Seller (or, after the Closing, the Buyer and its Subsidiaries) has incurred or become liable for any Indebtedness owed to a Person other than any customary employee non-solicitation the Company or no-hire clauses entered into in an Affiliate of the ordinary course of business, Company and that is currently outstanding;
(B) “most favored nation”, “exclusivity” or similar provisions, (Ce) a Contract that provides for the indemnification of any Person or the assumption of any Tax, environmental or other Liability of any Person;
(f) any outstanding material settlement offers or other arrangements with respect to any current action related to the Transferred Assets or the Business;
(g) a Contract granting an option to acquire, sell, lease or license any material Transferred Asset or granting any right of first offer, right of first refusal or right of first offer negotiation in respect of any material Transferred Asset;
(h) a Contract or agreement with any labor union, labor organization, guild, or similar right that limits the ability of employee representative which is binding on the Company or any of its Subsidiaries to sellan Affiliate (each, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;Collective Bargaining Agreement”); and
(viiii) relating to any agreement or evidencing indebtedness offer letter, as applicable, for borrowed moneythe employment or engagement of any person on a full-time, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Companyparti-time, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person consulting basis (in each case, excludingincluding, for the avoidance of doubt, intercompany loans between any agreement with any independent contractors or consultants), agreement or offer letter, as applicable, providing severance benefits to any person employed or otherwise providing services to the Company Company, and any of its wholly-owned Subsidiaries agreement or between or among offer letter, as applicable, relating to loans to any wholly-owned Subsidiaries of the Company);
(ix) any hedgingofficer, swapmanager, derivativeemployee, contractor, consultant, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary service provider. Except as set forth on Section 4.11 of the Company to Company Intellectual Property (A) on an exclusive basisDisclosure Letter, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess as of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement Agreement, (i) each Material Contract is in full force and effect and (ii) as to each Material Contract, except for breaches or (z) defaults that subjects have been cured and for which the breaching or defaulting party has no Liability, there does not exist thereunder any material breach or default on the part of the Asset Seller or the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company’s Knowledge, each any other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andthere does not exist, to the Knowledge of the Company’s Knowledge, none of the other parties thereto haveany event, violated any provision of, occurrence or committed or failed to perform any act under, and no event or condition existscondition, which (with or without after notice, lapse passage of time or both) would constitute a or give rise to any such breach of or default under, thereunder or result in a termination thereof or would cause or permit the provisions acceleration or other changes of any Material Contract, except in each case for those violations, acts (right or failures to act) and defaults which, individually obligation or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice loss of any benefit thereunder. Complete and correct copies of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any each Material Contract has (Aincluding all modifications, amendments and supplements thereto and waivers thereunder) canceled or otherwise terminated, or threatened in writing have been made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectBuyer.
Appears in 1 contract
Sources: Sale Agreement (Emcore Corp)
Material Contracts. (a) Except (i) as filed as exhibits to Schedule 3.10 of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Seller Disclosure Letter sets forth as of the date hereof, neither the Company nor any Subsidiary hereof a list of the following Contracts that relate primarily to the Business to which a Seller Entity, Conveyed Company or any Affiliate of any thereof is a party (collectively, the “Material Contracts”), true and complete (in all material respects) copies of which Seller has made available to or is bound by any ContractPurchaser prior to the execution hereof:
(i) that is a “material contract” (as such term is defined each Equipment Lease which entails rental payments in Item 601(b)(10) excess of Regulation S-K of $100,000 per annum or $500,000 in the Exchange Act)aggregate;
(ii) that is with each Contract for goods and/or services between (a) any Seller Entity or Conveyed Company on the ten one hand, and any other Seller Entity, Conveyed Company or any Affiliate of any thereof, on the other hand or (10b) largest customers Seller and/or any of its Affiliates (other than the Conveyed Companies) or any of the Company and officers or directors of Seller and/or any of its Subsidiaries during Affiliates (other than the fiscal year ended January 31Conveyed Companies), 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of businessone hand, and any Seller Entity and/or Conveyed Company, on the other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)hand;
(iii) that is with the ten each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee (10excluding items set forth in Schedule 3.13(a) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost Seller Disclosure Letter) in respect of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements Indebtedness in excess of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)$100,000;
(iv) each customer Contract that resulted in payment in excess of $500,000 in the 2009 Fiscal Year or is a Government Contractexpected to result in payment in excess of $1,000,000 in the aggregate within Seller’s fiscal years 2010 and 2011, to the applicable Seller Entity or Conveyed Company, respectively;
(v) evidencing a capital expenditure for which future payments are required each outstanding Contract with vendors of the Business that resulted in payment in excess of $5,000,000500,000 in the 2009 Fiscal Year or is expected to result in payment in excess of $1,000,000 in the aggregate within Seller’s fiscal years 2010 and 2011 by the applicable Seller Entity or Conveyed Company, respectively;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision each Contract materially limiting in any material respect the ability of the Company applicable (A) Asset Selling Entity (or any Subsidiary of following the Company to compete or engage in any line of business or Closing, the Business) to compete with any Person in any geographic area, other than any customary employee non-solicitation connection with such entity’s conduct of the Business or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability Conveyed Company to compete with any Person in connection with such entity’s conduct of the Company Business;
(vii) each material Contract regarding the formation or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) participation in an equity joint venture with a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholethird party;
(viii) relating each Contract pursuant to which any Seller Entity or evidencing indebtedness Conveyed Company (as licensor or licensee) licenses any Intellectual Property material to the Business (excluding licenses for borrowed money, debt securities, warrants commercial off-the-shelf computer software that are generally available and which have an acquisition cost of $100,000 or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyless);
(ix) any hedging, swap, derivativecollective bargaining or other labor or union Contracts, or similar Contractany contract with any Business Employees;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary material sales representative contracts and material powers of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeattorney;
(xi) that is each outstanding purchase order from a license (or customer on the back-log report as of September 25, 2009 with a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a nonback-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 log amount in excess of $1,000,000, and/or 500,000 (C) that is otherwise material to the Company and its Subsidiaries taken as each a whole;“Material Purchase Order”); and
(xii) that any other Contract or purchase order that, to the Knowledge of Seller, is a Company Real Property Lease with remaining obligations in excess material to the operation of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or Business and does not fall into any of its Subsidiaries recognized revenues the categories above in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSection 3.10.
(b) Each Contract of the type described above Other than those identified in Section 4.15(a3.10(a)(xi) or any purchase order identified in Section 3.10(a)(xii), whether each Material Contract is in full force and effect.
(c) There exists no default or not set forth in Section 4.15(a) event of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated default by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, andAsset Selling Entity or Conveyed Company or, to the Knowledge of the CompanySeller, each any other party theretoto any such Contract or purchase order, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually with respect to any material term or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company Purchase Order or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages purchase order identified in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectSection 3.10(a)(xii).
Appears in 1 contract
Sources: Stock and Asset Purchase Agreement (Preformed Line Products Co)
Material Contracts. (aSchedule 3.11(a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement is an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereof, neither of all of the Company nor any Subsidiary following Contracts to which a member of the Company Group is a party (the “Material Contracts”), provided, that, unless otherwise expressly required to be set forth on Schedule 3.11(a) as set forth in clauses (i) through (xvi) below, the term “Material Contracts” shall not include any purchase or is bound sales orders (A) entered into in the Ordinary Course which remain open or outstanding as of the date hereof with existing payment obligations owed by or to the Company Group thereunder of less than $50,000 or (B) under which no obligations or payments of any Contractparty thereto remain outstanding as of the date hereof:
(i) Contracts evidencing Indebtedness for borrowed money owed by the Company Group or providing for any loan to any Person (other than a member of the Company Group or advances to Company Group Employees in the Ordinary Course) or guaranty by any member of the Company Group of any obligation for borrowed money of a third Person that is not a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K member of the Exchange Act)Company Group, in each case, with a principal amount in excess of $1,000,000, and Contracts (other than the Credit Agreement) that expressly limit the ability of any member of the Company Group to incur Indebtedness (including guaranties) or incur Liens;
(ii) that is with the ten (10) largest customers of the all Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Group Employment Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)provide for annual base compensation in excess of $100,000;
(iii) all Company Group IP Agreements that is with are material to the ten (10) largest vendors operation of the business of the Company and its Subsidiaries during the fiscal year ended January 31Group, 2024 (as determined based on cost of goods and services paid other than non-exclusive licenses for commercially available off-the-shelf software licensed to such vendors by the Company during such Group for a one-time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements annual fee of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)less than $50,000;
(iv) that Real Property Leases or leases of personal property under which the Company Group is a Government Contractthe lessee and is obligated to make payments in excess of $50,000 per annum;
(v) evidencing Contracts providing for any business acquisition or disposition or any other investment in, any Person (other than a capital expenditure for member of the Company Group, and other than investments in marketable securities or advances to Company Group Employees in the Ordinary Course excluding any Affiliate Arrangements) by the Company Group entered into at any time during the three (3) year period prior to the date of this Agreement or pursuant to which future payments are required any of the Company Group has ongoing obligations (including continuing economic obligations with respect to the payment of any amounts in excess respect of $5,000,000earn-outs, deferred purchase price or purchase price adjustments) or liabilities;;
(vi) relating to the disposition any labor or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationscollective bargaining agreements;
(vii) containing any joint venture or limited partnership agreements or similar agreements;
(viii) Contracts requiring capital expenditures in an amount in excess of $10,000 in any 12-month period;
(ix) Contracts with (A) a covenant Material Customer or other provision limiting (B) a Material Vendor;
(x) Contracts that (A) require any member of the Company Group to do business with the counterparty thereto on an exclusive basis or restricts or limits, in any material respect the ability respect, a member of the Company Group from owning, managing, soliciting or operating any Subsidiary of the Company to compete business or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessgeographical location, (B) “most favored nation”contain minimum payment obligations in excess of $50,000 per year or take-or-pay obligations or material performance guarantees requiring the Company Group to produce, “exclusivity” deliver or similar provisionshave available a minimum amount of goods, in each case, by any member of the Company Group (C) a grant any right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or third parties (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeReal Property Leases);
(xi) that is a license (Contracts, including any sale or a covenant, consent purchase orders in any amounts under which any payment or other rights in or to use Intellectual Property) obligations on the part of Third Party Rights granted to the Company or any Subsidiary either party remain outstanding as of the Company (A) on an exclusive basisdate hereof, (B) on a non-exclusive basis, if pursuant relating to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesteel purchases;
(xii) that is a any sale or purchase orders which remain open or outstanding as of the date hereof with payment obligations by or to the Company Real Property Lease with remaining obligations Group thereunder in excess of $1,000,00050,000 in the aggregate;
(xiii) Contracts that involves a material joint venture, profit sharing, partnership expressly limit or similar agreement from which purport to limit the payment of dividends or distributions in respect of the capital stock of any member of the Company Group, the pledging of the capital stock of any member of the Company Group or the incurrence of indebtedness for borrowed money or guarantees by any member of its Subsidiaries recognized revenues the Company Group or the ability of any member of the Company Group in excess any material respect to pledge, sell, transfer or otherwise dispose of $1,000,000 during the fiscal year ended January 31, 2024any material amount of assets or business;
(xiv) Contracts that is are with a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions)Authority;
(xv) any stockholders’ agreementContracts that reflect a settlement of any threatened or pending Litigation either (A) in excess of $50,000 and entered into since January 1, proxy, voting trust agreement 2018 or registration rights agreement (B) containing continuing obligations or similar agreements, arrangements or commitments relating to any equity securities of restrictions on the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its SubsidiariesGroup; orand
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesAffiliate Arrangement.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(iA) any lease of real or personal property providing for annual rentals of $300,000 or more;
(B) any Contract (other than purchase orders for goods purchased by the Company) that is reasonably likely to require either (x) annual payments to or from the Company and its Subsidiaries of more than $100,000 or (y) aggregate payments to or from the Company and its Subsidiaries of more than $100,000;
(C) other than with respect to any partnership that is wholly-owned by the Company or any wholly-owned Subsidiary of the Company, any partnership, joint venture or other similar agreement or arrangement relating to the formation, creation, operation, management or control of any partnership or joint venture material to the Company or any of its Subsidiaries or in which the Company owns a “material contract” voting or economic interest;
(D) any Contract (other than among direct or indirect wholly-owned Subsidiaries of the Company) relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred, assumed, guaranteed or secured by any asset) in excess of $100,000;
(E) any Contract required to be filed as such term is defined in an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K of under the Exchange Securities Act);
(iiF) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders competition Contract or statements of work or invoices entered into other Contract that (I) purports to limit in any material respect either the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course type of business pursuant to in which the Company or its Subsidiaries have material continuing obligations;
(viior, after the Effective Time, Parent or its Subsidiaries) containing (A) a covenant may engage or other provision limiting the manner or locations in which any of them may so engage in any business, (II) could require the disposition of any material respect the ability assets or line of business of the Company or any Subsidiary of its Subsidiaries or, after the Company to compete Effective Time, Parent or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessits Subsidiaries, (BIII) grants “most favored nation”nation”status that, “exclusivity” following the Merger, would apply to Parent and its Subsidiaries, including the Company and its Subsidiaries or similar provisions, (CIV) a right of first refusal prohibits or right of first offer or similar right that limits the ability right of the Company or any of its Subsidiaries to sellmake, sell or distribute any products or services or use, transfer, pledge license, distribute or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the enforce any Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeIntellectual Property rights;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ixG) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or Contract to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess is a party containing a standstill or similar agreement pursuant to which one party has agreed not to acquire assets or securities of $1,000,000 during the fiscal year ended January 31, 2024other party or any of its Affiliates;
(xivH) that is a settlement, conciliation or similar any Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require between the Company or any of its Subsidiaries to pay consideration and any director or officer of the Company or any Person beneficially owning five percent or more than $1,000,000 after of the date of this Agreement or outstanding Shares;
(zI) that subjects any Contract providing for indemnification by the Company or any of its Subsidiaries to of any material ongoing requirements or restrictions Person, except for (other than ordinary course confidentiality requirements or restrictions);
x) guarantees of franchisee obligations, and (xvy) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating such Contract that is (I) not material to any equity securities of the Company or any of its Subsidiaries and (II) entered into in the ordinary course of business;
(J) any Contract that contains a put, call or relating similar right pursuant to disposition, voting or dividends with respect to any equity securities of which the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would Subsidiaries could be required to be disclosed under Item 404 purchase or sell, as applicable, any equity interests of Regulation S-K promulgated under the Exchange Act, other any Person or assets that have a fair market value or purchase price of more than $100,000;
(K) any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on which the Company or the applicable Subsidiary any of its Subsidiaries is a party concerning Intellectual Property, including, without limitation, Contracts granting the Company, as the case may beany of its Subsidiaries, or any other Person rights to use any Company Intellectual Property; and
(L) any other Contract or group of related Contracts that, if terminated or subject to the Knowledge of the Company, each other a default by any party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notwould, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except result in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and(the Contracts described in clauses (A) – (L), together with all exhibits and schedules to such Contracts, being the “Material Contracts”).
(ii) A copy of each Material Contract has previously been delivered to Parent and each such Contract is a valid and binding agreement of the Company or one of its Subsidiaries, as of February 1the case may be, 2021and is in full force and effect, to the Knowledge of the Company, and neither the Company nor any Subsidiary of its Subsidiaries nor, to the Company has received written notice knowledge of any of executive officer or the foregoing. To the Knowledge general counsel of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled other party thereto is in default or otherwise terminated, or threatened breach in writing to cancel or otherwise to terminate, its relationship with any respect under the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount terms of business that any such counterparty presently engages in agreement, contract, plan, lease, arrangement or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectcommitment.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits In Annex 6.14 hereto are disclosed true, complete and accurate copies of all material contracts, leases and agreements currently in force to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company which Verplast is a party to or is bound by any Contractincluding, but not limited to:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) any agreement for the lease of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any nontenancy-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);rental agreement for real properties owned by Verplast; 35
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid any agreement or amendment to such vendors by agreement under the Company during such time periodterms of which Verplast has created, incurred, assumed or guaranteed any liability for borrowed money in excess of Lire 30.000.000 (thirty million) (excluding including, without limitation, any non-disclosure agreements, data processing agreements, purchase orders term loan or statements of work other agreements with any bank or invoices entered into in the ordinary course of business, and any other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)financial institution;
(iv) that is any agreement under which Verplast has granted a Government Contractlien, pledge, security interest or other encumbrance upon any of its assets;
(v) evidencing any contract with external consultants for a capital expenditure for liability exceeding Lire 30.000.000 (thirty million) per year, including any bonus or deferred payment (other than oral retainers of professionals which future payments are required in excess of $5,000,000can be terminated without notice);
(vi) relating to the disposition or acquisition of any businessguaranty, equitysuretyship, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsperformance bond and/or contribution agreements;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areadistribution, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessagency, (B) “most favored nation”marketing, “exclusivity” or similar provisionslicensing, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholesales representative and/or dealership agreements;
(viii) relating any loans or advances to or evidencing indebtedness for borrowed moneyany third party, debt securitiesincluding, warrants or other rights to acquire any debt securitieswithout limitation, the shareholders, directors and officers of the Company or any Subsidiary Verplast in excess of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person Lire 30.000.000 (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companythirty million);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that collective bargaining agreement. With respect to each material agreement and each license relating to the Licensed Intellectual Property to which Verplast is a license party, except as otherwise disclosed in Annex 6.14: (or a covenanti) such agreement is in full force and effect and constitutes the legal, consent or valid and binding obligation for Verplast and the other rights parties thereto and it is enforceable in or accordance with its terms, (ii) to use Intellectual Property) granted by the Company or any Subsidiary best of the Company to Company Intellectual Property (A) on an exclusive basisSeller's knowledge, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken such agreement will not be terminated as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date result of this Agreement or the consummation of the transactions contemplated herein, (ziii) that subjects Verplast is not in default in any material respect under such agreement and no event has occurred which, with the Company passing of time, would become a default, and (iv) no other party is in default in any material respect under such agreement. No bonus or severance will become due and payable under any existing agreement between Verplast and any of its Subsidiaries to any material ongoing requirements employees as a result of this Agreement or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities the consummation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariestransactions contemplated herein.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Framework Agreement (Ico Inc)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC DocumentsSchedule 4.11 sets forth an accurate, (ii) for this Agreement correct and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as complete list of the date hereof, neither the Company nor any Subsidiary of the Company contracts that any Selling Party is currently a party to or is bound by that apply exclusively to the operation of the Business and to which any Contractof the descriptions set forth below apply:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) All Contracts relating to the leasing of Regulation S-K of the Exchange Act)real property;
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a Any Contract for capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations expenditures in excess of $1,000,000;
(xiiiiii) that involves a material joint ventureAny Contract involving financing or borrowing of money, profit sharingany liability for borrowed money, partnership or similar agreement from which any obligation for the Company or any deferred purchase price of its Subsidiaries recognized revenues property in excess of $1,000,000 during the fiscal year ended January 31, 2024(excluding normal trade payables) or guaranteeing in any way any Contract in connection with any Person;
(xiviv) that is Any collective bargaining agreement or other Contract with a settlementlabor union, conciliation works council or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or labor organization that applies to any of its Subsidiaries to pay consideration the Prospective Employees;
(v) Any Contract with an agent or distributor that currently sells or distributes any of more the Products that resulted in sales of greater than $1,000,000 after of the Products in the 12-month period ending May 31, 2023;
(vi) Any Contract containing covenants restricting any Selling Party with respect to the Business from competing in any line of business or with any Person in any geographical area;
(vii) Any Contract related to the acquisition of a business or the equity of any other Entity in the five (5) years prior to the date of this Agreement or hereof;
(zviii) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions Any Selling Parties IP Contract (other than ordinary course confidentiality requirements licenses of off-the-shelf software that do not involve payments in excess of $250,000 annually for all licenses or restrictionsusers thereof);
(xvix) Any Contract that provides for the employment of any stockholders’ agreementProspective Employee that cannot be terminated at any time and for any reason by a Selling Party without liability to a Selling Party;
(x) Any Contract involving a joint venture, proxyaffiliation or joint development arrangement;
(xi) Any Contract with any Governmental Authority;
(xii) Any Contract which provides for payment or performance by either party thereto having an aggregate value of $3,500,000 or more on an annual basis, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to other than any equity securities of the Company Seller Benefit Plan or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is Contract with an affiliate agent or other Person distributor that would be is not required to be disclosed under Item 404 pursuant to Section 4.11(a)(v); and
(xiii) Any proposed arrangement of Regulation S-K promulgated under the Exchange Acta type that, other than if entered into, would be a Contract described in any Contract solely among the Company and its wholly-owned Subsidiariesof (i) through (xii) above.
(b) Each Contract Seller has delivered accurate, correct and complete copies of all Material Contracts, including all material modifications, amendments and supplements thereto and waivers thereunder (or written summaries of the type described above material terms thereof, if not in Section 4.15(awriting), whether or not subject to any redactions set forth therein.
(c) Each Material Contract is currently valid and in Section 4.15(a) of the Company Disclosure Schedulefull force and effect, is referred to herein as enforceable by a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, Selling Party and, to the Knowledge of the CompanySeller’s knowledge, each other party thereto, and in accordance with its terms, in each case, subject to the General Enforceability Exceptions.
(Bd) in full force and effect, except (i) Except as may be limited by bankruptcyset forth on Schedule 4.11(d), insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually no Selling Party is in default under or in the aggregatebreach of (or is alleged to be in default under or in breach of) any Material Contract or has provided or received any notice of any intention to terminate any Material Contract, reasonably and to Seller’s knowledge, no other party is in default under or in breach of (or is alleged to be expected in default under or in breach of) any Material Contract to have which it is a Company party or has provided or received notice of any intention to terminate any such Material Adverse EffectContract. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act underNo event has occurred, and no event circumstance or condition exists, which that might (with or without notice, notice or lapse of time time) (A) result in a violation or both) would constitute a breach of any material provision of any Material Contract or default under, (B) give any Person the provisions right to accelerate the maturity or performance of any Material Contract, except in each case for those violationsor to cancel, acts terminate or modify any Material Contract; and (or failures to actii) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company no Selling Party has waived any material right under any Material Adverse Effect and, as of February 1, 2021, to the Knowledge Contract.
(e) The performance of the Company, neither the Company nor Material Contracts will not result in any Subsidiary violation of the Company has received written notice of or failure by any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty Selling Party to comply with any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectLegal Requirement.
Appears in 1 contract
Material Contracts. (a) Except (i) Except for (x) Contracts (including all amendments and modifications thereto) as filed as exhibits to set forth in Section 5.1(n)(i) of the Company SEC Documents, Disclosure Schedule or (iiy) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansany Benefit Plan, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract (a Contract described by clauses (A) through (O) of this Section 5.1(n)(i), being hereinafter referred to as a “Material Contract:”):
(iA) that is reasonably expected to require annual payments to or from the Company and its Subsidiaries of more than $10 million;
(B) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(iiC) that contains any noncompete, nonsolicit or exclusivity provisions to which the Company or any of its Subsidiaries is subject that would, after the Effective Time, restrict the ability of Parent or any of its Subsidiaries (other than Cork or any of its Subsidiaries) to compete in any line of business or geographic area of at least five square miles;
(D) with a Top Supplier;
(E) that, to the Knowledge of the Company, is material to the Specific Business and is not otherwise included in the definition of Material Contract;
(F) that provides for or relates to the formation, creation, operation, management or control of any partnership, limited liability company, joint venture, collaboration or similar arrangement (in each case, other than with respect to wholly owned Subsidiaries of the Company);
(G) that is with the ten an indenture, credit agreement, loan agreement, security agreement, guarantee, note, mortgage or other agreement providing for or guaranteeing Indebtedness of any Person in excess of $1 million except for (10x) largest customers of any Contract solely among or between the Company and any of its wholly owned Subsidiaries during the fiscal year ended January 31or (y) any surety or performance bond, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders letter of credit or statements of work or invoices similar Contract entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiiH) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) includes a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries that is material to the Company or any of its Subsidiaries, taken as a whole;
(I) that is a Real Property Lease requiring an annual payment in excess of $100,000;
(J) pursuant to which (x) any license, covenant not to ▇▇▇, or other right is granted under any material Intellectual Property Rights exclusively owned by the Company or any of its Subsidiaries, (y) any Person has granted any license, covenant not to ▇▇▇, or other right under any Intellectual Property Rights to the Company or any of its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000their respective businesses, other than (1) non-exclusive licenses for off-the-shelf software that have been granted on standardized, generally available terms, and (2) non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xiK) that is a license (or a covenant, consent or other rights relates to any settlement of any Action in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 amount in excess of $1,000,00050,000 in the aggregate since December 31, and/or (C) that is otherwise material to the Company 2017, other than claims defended and its Subsidiaries taken as a wholesettled by insurance companies;
(xiiL) that is relates to the direct or indirect acquisition or disposition of any corporation, partnership or other business organization or the assets thereof (whether by merger, sale of stock, sale of assets or otherwise) in each case with a Company Real Property Lease with remaining obligations fair market value or purchase price in excess of $1,000,000500,000 entered into since December 31, 2015;
(xiiiM) that involves contains a material joint ventureput, profit sharingcall, partnership right of first refusal, right of first offer or similar agreement from right or obligation or any other obligation pursuant to which the Company or any of its Subsidiaries recognized revenues could be required to, directly or indirectly, purchase or sell, as applicable, any securities, capital stock or other interests, assets or business reasonably expected to result in payments with a value in excess of $1,000,000 during the fiscal year ended January 31, 2024500,000 in any 12 month period;
(xivN) that is contains a settlement, conciliation currently effective standstill or similar Contract agreement pursuant to which one party has agreed not to acquire assets or securities of the other party or any of its Affiliates; and
(xO) with any Governmental Authority entered into since February 1that prohibits the payment of dividends or distributions in respect of the capital stock, 2021membership interests, (y) which would require partnership interests or other equity interests of the Company or any of its Subsidiaries to pay consideration Subsidiaries, the pledging of more than $1,000,000 after the date of this Agreement capital stock, membership interests, partnership interests or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities interests of the Company or any of its Subsidiaries or relating the incurrence of Indebtedness by the Company or any of its Subsidiaries.
(ii) The Company has made available to dispositionParent prior to the date of this Agreement true, voting correct and complete copies of all written Material Contracts required to be identified in Section 5.1(n)(i) of the Company Disclosure Schedule, including all amendments thereto, as in effect as of the date of this Agreement.
(iii) As of the date of this Agreement, except as has not had, and would not reasonably be expected to have, individually or dividends with respect to any equity securities in the aggregate, a Material Adverse Effect, each Material Contract is a valid and binding agreement of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange ActSubsidiaries party thereto, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on enforceable against the Company or the applicable Subsidiary any of the Company, as the case may be, its Subsidiaries and, to the Knowledge of the Company, each other party theretothereto in accordance with its terms, and (B) is in full force and effect, except subject in each case to the Bankruptcy and Equity Exception (i) and subject to the termination or expiration of any such Material Contract after the date of this Agreement in accordance with its terms, other than as may a result of any breach or default by the Company or any of its Subsidiaries). Except as has not had, and would not reasonably be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notexpected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , neither the Company nor any Subsidiary of the Company hasits Subsidiaries, and, to the Knowledge of the Company, none as of the date of this Agreement, no other parties thereto haveparty thereto, violated is (or with or without notice or lapse of time would be) in default or breach under the terms of any provision of, or committed or failed to perform any act under, such Material Contract and no event or condition exists, which has occurred (with respect to defaults or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of breaches by any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021other party thereto, to the Knowledge of the Company, neither as of the date of this Agreement) that (with or without notice or lapse of time) will, or would reasonably be expected to, (A) constitute such a violation or breach, (B) give any Person the right to accelerate the maturity or performance of any Material Contract or (C) give any Person the right to cancel, terminate or modify in a manner adverse to the Company nor any Subsidiary Material Contract.
(iv) For the purposes of this Agreement, (A) “Affiliate” means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with a second Person, provided that (x) Parent and its Affiliates shall not be deemed to be Affiliates of the Company has received written notice and Subsidiaries of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and (y) the Company and Subsidiaries of the Company shall not be deemed to be Affiliates of Parent and its Subsidiaries other thanAffiliates, in each case, for any purpose hereunder; and (B) “Indebtedness” shall mean, with respect to any Person, without duplication, as would of the date of determination, (i) all obligations of such Person for borrowed money, including accrued and unpaid interest, and any prepayment fees or penalties, (ii) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (iii) all obligations of such Person issued or assumed as the deferred purchase price of property (including any potential future earn-out, purchase price adjustment, release of “holdback” or similar payment, but excluding obligations of such Person incurred in the ordinary course of business), (iv) all lease obligations of such Person capitalized on the books and records of such Person, (v) all Indebtedness of others secured by a Lien on property or assets owned or acquired by such Person, whether or not reasonably be expected the Indebtedness secured thereby have been assumed, (vi) net cash payment obligations of such Person under interest rate, currency, commodity or other derivatives or hedging transactions or similar arrangement (valued at the termination value thereof), (vii) all letters of credit or performance bonds issued for the account of such Person, to have the extent drawn upon, and (viii) all guarantees and keepwell arrangements of such Person of any Indebtedness of any other Person other than a Material Adverse Effectwholly owned Subsidiary of such Person; provided, however, that “Indebtedness” shall not include intercompany indebtedness, obligations, liabilities or undertakings (including any guarantees or arrangements having the economic effect of a guarantee) solely between or among Parent and any of its wholly owned Subsidiaries or solely between or among the Company and any of its wholly owned Subsidiaries (as applicable).
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement Schedule 3.6 contains a correct and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as complete list of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to following Contracts pursuant to which revenue is paid any Company has any rights or payable benefits or undertakes any obligations or liabilities (collectively with all Leases, the “Material Contracts”), true and correct copies of which Material Contracts have been made available to the Company Purchaser:
(a) all Contracts other than Leases that have a duration of more than two (2) years remaining and are not terminable without penalty upon ninety (90) days or its Subsidiaries)less prior written notice by any party;
(iiib) all Contracts that is with the ten require or could reasonably be expected to require any party thereto to pay $100,000 or more in any twelve (1012) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31month period, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work $500,000 or invoices entered into more in the ordinary course of businessaggregate;
(c) all employment (other than Europhil Standard Employment Letters and Dolex Envíos Standard Employment Letters), termination, collective bargaining, retention, change in control, compensation and bonus Contracts and plans, and all Contracts and plans providing for stock options or stock purchases, stock appreciation rights, pensions, severance payments (other than GPN Plans), deferred or incentive compensation, retirement payments or profit sharing, or other similar employee benefits with any current or (to the extent any Company has ongoing obligations under such Contracts) former employee, officer, director, shareholder or consultant of any Company;
(d) all Contracts that are ancillary contain any restrictive covenant or confidentiality agreement (other than agreements relating solely to Contracts pursuant information about a customer’s business or services provided to which cost of goods and services is paid or payable the customer by the Company);
(ive) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) all notes, bonds, indentures and other instruments and agreements evidencing, creating or otherwise relating to the disposition or acquisition obligations for Company Indebtedness and guarantees by a Company of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person other than another Company (other than guarantees by way of endorsement or negotiable instruments in each case, excluding, for the avoidance Ordinary Course of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the CompanyBusiness);
(ixf) all Contracts for capital expenditures under which any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with has remaining obligations in excess of $1,000,000100,000 each;
(xiiig) that involves a material joint venture, profit sharing, partnership or similar agreement from Contracts under which any Company is obligated to indemnify any Person other than agreements entered into in the Company or any Ordinary Course of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Business;
(xivh) that is a settlement, conciliation Contracts to loan money or similar Contract extend credit to any other Person;
(xi) Contracts constituting Affiliate Agreements;
(j) Contracts with banks or other Persons or financial institutions to which any Company transmits money for customers or uses for deposits other than customary Contracts entered into when opening or modifying accounts in the Ordinary Course of Business;
(k) Contracts with any Governmental Authority entered into since February 1, 2021, Correspondent (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Correspondent Contracts”);
(xvl) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments Contracts relating to the provision of any equity securities of the other services by a Company or any of its Subsidiaries or not relating to disposition, voting or dividends with respect to any equity securities the transmission of the Company or any of its Subsidiariesmoney; or
(xvim) is with an affiliate Contracts as to armored cars and coin and currency counting or other Person that would be required to be disclosed under Item 404 of Regulation Spick-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not up. Except as set forth in Section 4.15(aSchedule 3.6, (i) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid in full force and binding on the effect, no Company or the applicable Subsidiary of the Companyis in material Default under, as the case may be, and, and to the Knowledge of any Seller, no event has occurred which, with the passage of time or giving of notice or both, could reasonably be expected to result in any Company being in material Default under, any of the terms of the Material Contracts or could reasonably be expected to cause the acceleration of any material obligation of any Company, each give rise to any right or termination or cancellation by any party other than the Companies, nor do the Sellers have Knowledge of, and no Company has received notice of, or made a written claim with respect to, any Default by any other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, Material Contracts requires the provisions consent of any Material Contract, except other party thereto in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship connection with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effecttransactions contemplated by this Agreement.
Appears in 1 contract
Sources: Securities Purchase Agreement (Global Payments Inc)
Material Contracts. (a) Except (i) as filed as exhibits to Section 3.16 of the Company SEC DocumentsDisclosure Schedule sets forth a true, (ii) for this Agreement correct and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereof, neither of all currently active Contracts (or group of related Contracts) (other than purchase orders and invoices that are part of, issued under or supplemental to other Contracts required to be disclosed under this Section 3.16) to which the Company nor or any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(ia) that which is a “material contract” (as such term is defined in Item 601(b)(10) partnership, limited liability company, joint venture or similar agreement involving payments or commitments of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to capital by the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,0001,000,000 in the aggregate;
(vib) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by (i) under which the Company or any of its Subsidiaries outside has created, incurred, assumed or guaranteed Indebtedness; or (ii) that is an outstanding guarantee, letter of comfort, letter of assurance, keepwell, letter of credit, performance bond, assurance bond, surety agreement, indemnity agreement or any other from of assurance or guarantee or other obligation (a “Credit Support Obligation“);
(c) whereby the ordinary course Company or any of business pursuant its Subsidiaries has an obligation to make an investment in or loan to any Person;
(d) which are (i) collective bargaining agreements, or (ii) employment or consulting agreements providing for annual payments in excess of $150,000 per year (other than any Contract that is terminable within 90 days without the Company or its Subsidiaries have material continuing obligations;incurring any penalty, fee or other payment),
(viie) containing which are Contracts (Ai) a covenant for the development, purchase or the sale, supply or provision, of goods, steam, materials, energy, supplies or services, including operating, land management and resource management and repair and timber hauling or cutting; (ii) for the purchase or sale of any asset or securities in excess of $2,500,000; (iii) relating to franchise, brokerage, sales representation, distributorship, sales agency or other provision limiting in any material respect similar arrangements; (iv) with customers for the ability sale of goods and services; (v) for the purchase or lease of equipment or other personal property; or (vi) regarding shipping, transportation or storage of products of the Company or any Subsidiary of its Subsidiaries, in each of clauses (i), (iii), (iv), (v) and (vi) and with respect to each Contract, not capable of being fully performed or not terminable by the Company or its Subsidiaries without penalty or premium within a period of 90 calendar days and involving annual payments in excess of (A) $5,000,000, in the case of Contracts with customers and merchant distributors of the Company Company; (B) $10,000,000, in the case of Contracts with suppliers, including pulp and timber Contracts and Contracts regarding the purchase or sale of energy, steam, and power; and (C) $2,000,000 in the case of all other Contracts;
(f) which contain a covenant not to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits material restriction on the ability of the Company or any of its Subsidiaries or the Business (including, without limitation, Purchaser or any of its Affiliates from and after the Closing) to sell, transfer, pledge compete or otherwise dispose provide any products or services generally in any market segment or geographic area;
(g) with Seller or any of assets, rights or properties or its Affiliates (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of than the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ixh) any hedging, swap, derivativewhich contain indemnification rights or obligations, or similar Contract;
(x) credit support relating to such indemnification rights or obligations, that is a license (or a covenant, consent or other rights could reasonably be expected to result in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiiii) that involves a relating to the development, ownership, licensing or use of any Intellectual Property Rights material joint venture, profit sharing, partnership or similar agreement from which to the business of the Company and its Subsidiaries (excluding software commercially available on reasonable terms to the public generally with license, maintenance, support and other fees of less than $100,000 per year in the aggregate); and
(j) with employees containing severance payments, change of control payments, stay bonus, or any of its Subsidiaries recognized revenues other right to additional compensation or change in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation duties or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of job description triggered by this Agreement or (z) that subjects the transactions contemplated hereby. Each Contract required to be so listed on Section 3.16 of the Company or any Disclosure Schedule (each, a “Material Company Contract“) is, as of its Subsidiaries to any material ongoing requirements or restrictions the date hereof, (other than ordinary course confidentiality requirements or restrictions);
i) in full force and effect and is (xvii) any stockholders’ agreementa valid, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities binding and enforceable obligation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and (iii) to the Knowledge of the Seller, a valid, binding and enforceable obligation of each other party thereto, in the case of clauses (ii) and (iii), subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and general principles of equity. True, correct and complete copies of all Material Company Contracts described above and existing as of the date hereof have been made available to Purchaser prior to the date hereof. Neither the Company nor any of its Subsidiaries is in material breach of or default under any such Contract, and no event or circumstance has occurred that, with the giving of notice or the lapse of time or both, would constitute such a material breach or default and, to the Knowledge of the CompanySeller, each no other party thereto, and (B) to any such Contract is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually material breach thereof or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, default thereunder and no event or condition existscircumstance has occurred that, which (with the giving of notice or without notice, the lapse of time or both) , would constitute such a material breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectdefault.
Appears in 1 contract
Material Contracts. (a) Except Schedule 3.6(a) of the Company Disclosure Schedule lists each Contract, described in clauses (i) as filed as exhibits through (x) below to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor which any Subsidiary of the Company Acquired Entity is a party to or by which it is bound (other than Contracts which are by any Contract:their terms no longer in force or effect) (“Material Contracts”):
(i) that is each Contract with a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)Significant Customer or a Significant Supplier;
(ii) that is with each Contract requiring the ten (10) largest customers purchase or lease of capital equipment, personal property or fixed assets and payment by one or more of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements Acquired Entities of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)more than $100,000 thereunder;
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)each Contract evidencing Indebtedness;
(iv) that is a Government each material partnership, joint venture or other similar Contract;
(v) evidencing a capital expenditure for each Contract which future payments are required in excess of $5,000,000;
(vi) relating to the disposition prohibits or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect materially restricts the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or Acquired Entity to compete with any Person in the Business as it is conducted as of the Agreement Date;
(vi) each Contract with any geographic area, Person engaged as an independent contractor or consultant or on any other than any customary employee non-solicitation or noemployee basis;
(vii) each employment-hire clauses entered into in the ordinary course related Contract that provides for (A) a term of business, employment that is not terminable at will; (B) “most favored nation”, “exclusivity” or similar provisions, annual base salary that exceeds $150,000 per year; (C) severance pay or other fees or compensation upon a right of first refusal or right of first offer or similar right that limits the ability of the Company or termination for any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or reason; and/or (D) compensation or rights upon a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, change in each case, that is material to the Company and its Subsidiaries, taken as a wholecontrol;
(viii) relating to each Contract that provides for indemnification in favor of any employee, officer, agent, director or evidencing indebtedness for borrowed money, debt securities, warrants or member of any Acquired Entity (other rights to acquire any debt securities, than the Certificate of Incorporation and bylaws of the Company and the organizational documents, bylaws or any Subsidiary limited liability company agreements of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyother Acquired Entities);
(ix) any hedgingeach collective bargaining agreement, swapside letter agreement, derivativememoranda of understanding, assent agreement, or other similar Contract, with any Union;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or each Contract with any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeGovernmental Body;
(xi) that is a license each Contract granting to any Person (other than an Acquired Entity) an option or a covenantfirst-refusal, consent first-offer or similar preferential right to purchase or acquire any ownership interests or material assets of the Acquired Entities (other rights in or to use Intellectual Propertythan Contracts providing for the grant of Company Options set forth on Schedule 3.4(b) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeDisclosure Schedule);
(xii) that is each Contract involving (A) the sale or purchase of material assets or properties (other than in the Ordinary Course of Business), (B) the sale or purchase of capital stock of any Person (other than any Contract providing for the repurchase of capital stock of any Acquired Entity from any employee in connection with the termination of employment or cessation of services of such employee), or (C) a Company Real Property Lease with merger, consolidation, business combination or similar extraordinary transaction involving an Acquired Entity to the extent any of the Acquired Entities has any remaining obligations in excess of $1,000,000material right, obligation or liability thereunder;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or each Contract requiring any of its Subsidiaries recognized revenues in excess the Acquired Entities to dispose of $1,000,000 during any assets of the fiscal year ended January 31Acquired Entities material to the ongoing operation of the business of any of the Acquired Entities to the extent any of the Acquired Entities has any remaining material right, 2024obligation or liability thereunder;
(xiv) each Contract that is a settlement, conciliation settlement or similar Contract (x) with agreement under which any Governmental Authority entered into since February 1Acquired Entity has any ongoing obligations, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements limitations or restrictions (other than ordinary course confidentiality requirements or restrictions)receives any ongoing benefits or rights;
(xv) each Contract pursuant to which any stockholders’ agreement, Acquired Entity has granted a power of attorney or proxy, voting trust agreement whether limited or registration rights agreement general, revocable or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; orirrevocable;
(xvi) each Contract that contains any preferential pricing provisions, such as “most favored customer” or “most favored nation” provisions or similar or equivalent price or term protection clauses;
(xvii) each Contract that contains any earn-out or similar provision to the extent any of the Acquired Entities has any remaining material right, obligation or liability thereunder; and
(xviii) any other Contract that involves the payment or potential payment, pursuant to the terms of any such Contract, by any of the Acquired Entities to any third party of more than $250,000 to the extent such Contract is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesnot otherwise covered by Section 3.6(a)(i) through Section 3.6(a)(xvii).
(b) Each Contract True and correct copies of the type described above in Section 4.15(a), whether or not such Material Contracts have been made available to Parent. Except as set forth in Section 4.15(aon Schedule 3.6(b) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all each of the Material Contracts are is in full force and effect and no Acquired Entity has received written notice (Ai) that it is in Default as of the Agreement Date under any of the Material Contracts or (ii) of any cancellation or termination of any of the Material Contracts, and the Company has no Knowledge of any Default under any of the Material Contracts by the other parties thereto. Each Material Contract is a legal, valid and binding on the Company or the applicable Subsidiary enforceable obligation of the Company, as the case may be, Acquired Entity party thereto and, to the Knowledge of the Company, each Material Contract is a legal, valid and enforceable obligation of the other party parties thereto, and (B) in full force and effect, each case except (i) as enforcement may be limited by bankruptcy, insolvency, moratorium the Enforceability Exceptions. The Acquired Entities have performed in all material respects their respective obligations under and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and are entitled to all benefits in all material respects under all Material Contracts.
(iic) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would A Real Property Lease shall not constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (iSchedule 3.13(a) as filed as exhibits sets forth a true, correct and complete list of all contracts, commitments, licenses, agreements, obligations or arrangements, whether oral or written, formal or informal, to the which any Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company Party is a party (or intends to become a party) or to which any of its assets or properties is bound by any Contractbound:
(i) that under which any Company Party is a “material contract” (as such term indemnified for or against any liability in excess of $50,000 or under which any Company Party is defined or could be obligated to indemnify any Person in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$50,000;
(ii) that under which any Company Party leases personal property from or to third parties under Capital Leases which involve rental payments of at least $25,000 per annum or under operating leases which involve rental payments of at least $50,000;
(iii) for the purchase or sale of products or other personal property or for the furnishing or receipt of services (A) which calls for performance over a period of more than one (1) year, (B) which involves payments of more than the $50,000 in the aggregate or (C) in which any Company Party has agreed to purchase a minimum quantity of goods or services or has agreed to purchase goods or services exclusively from any Person;
(iv) (A) granting representation, marketing or distribution rights or (B) relating to Intellectual Property (including, without limitation, license, franchise or similar agreements);
(v) under which any Company Party has created, incurred, assumed or guaranteed (or may create, incur, assume or guarantee) Indebtedness in excess of $50,000;
(vi) establishing or maintaining any partnership, joint venture or strategic alliance;
(vii) under which there is with or may be imposed a security interest or other Lien on any of its assets, whether tangible or intangible, whose net book value or fair market value is in excess of $50,000 (other than the ten (10) largest customers security interests or Liens granted in favor of the Company Purchaser and its Subsidiaries during the fiscal year ended January 31, 2024 Bank);
(as determined based on revenue received from such customers during such time periodviii) (excluding concerning any confidentiality or non-disclosure solicitation obligations entered into outside the ordinary course of business;
(ix) under which any Company Party is restricted from carrying on its business or any part thereof, or from competing in any line of business or with any Person;
(x) with officers, directors, employees, consultants or independent contractors of any Company Party;
(xi) resulting in the creation of any Lien (including any lease notifications) other than a Permitted Lien;
(xii) involving any Affiliates of any Company Party;
(xiii) under which the consequences of a default or termination could have a Material Adverse Effect;
(xiv) under which any Company Party will (A) receive aggregate payments from customers, (B) make aggregate payments to vendors or other suppliers or (C) make or receive aggregate payments to or from any other Persons, in each case in excess of $50,000 per annum;
(xv) which are franchise agreements, data processing including but not limited to all master, area director and unit agreements, purchase orders or statements of work or invoices ; and
(xvi) not entered into in the ordinary course of business, business and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);not otherwise disclosed on Schedule 3.13
(iiia) that is with the ten (10) largest vendors in response to any of the Company and its Subsidiaries during foregoing clauses. All of the fiscal year ended January 31contracts, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure commitments, licenses, agreements, data processing agreements, purchase orders obligations or statements of work or invoices entered into arrangements described in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
clauses (ivi) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
through (xvi) is above, together with an affiliate the Bank Credit Documents, the Tender Offer Documents, the real property leases, subleases, licenses and other interests described in Section 3.24, whether entered into prior to, on or other Person that would be required after the Closing Date, and the Agreements with Officers, are collectively referred to be disclosed under Item 404 of Regulation S-K promulgated under herein as the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries"Material Contracts".
(b) Each Except as disclosed on Schedule 3.13(b), each Material Contract existing as of the type described above in Section 4.15(a)date hereof is a legal, whether or not set forth in Section 4.15(a) valid and binding obligation of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts Parties that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, on the one hand, and (B) the other parties thereto, on the other hand, enforceable against each of them in full force and effectaccordance with its terms, except (i) as enforcement may be limited by bankruptcy, insolvency, moratorium and other reorganization, moratorium, fraudulent transfer or conveyance or similar Applicable Law affecting laws relating to or limiting creditors’ ' rights generally or by equitable principles relating to enforceability, and is in full force and effect. The parties to each Material Contract existing as of the date hereof are in substantial compliance with the terms thereof, and no default or event of default by general principles of equity and (ii) as would notany Company Party or, individually or in to the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary best knowledge of the Company hasParties, andany other party thereto exists thereunder.
(c) Except as set forth on Schedule 3.13(c), no Company Party is a party to the Knowledge of the Companyany contract, none of the other parties thereto havecommitment, violated license, agreement, obligation or arrangement that restricts it from carrying on its business or any provision ofpart thereof, or committed or failed to perform from competing in any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount line of business that or with any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPerson.
Appears in 1 contract
Material Contracts. (a) Except (iSchedules 3.18(a)(i)-(xiv) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to Disclosure Schedules list each written or is bound by any Contract:
oral Contract (ix) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended since January 311, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant 2011 to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to is a party or (y) by which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or their respective properties or assets is currently bound with ongoing obligations (Dother than obligations solely as a result of ongoing confidentiality obligations) and identifies which subparagraph is applicable to such Contract (such contracts and agreements as described in this Section 3.18(a) being “Material Contracts”):
(i) any Contract (or group of related Contracts), other than employment Contracts, which is not terminable on less than ninety (90) days’ notice and that involves future obligations of the Company, its Subsidiaries or its employees in a minimum purchasedollar amount in excess of $50,000;
(ii) any employment Contract (A) providing annual compensation in excess of $100,000, minimum volume, “earnout” or other contingent, deferred (B) that it is not terminable at will on notice of thirty (30) days or fixed less without payment obligation of any severance;
(iii) any Contract that involves future obligations of the Company and its Subsidiariesin excess of $50,000 with sales agents, in each casesales representatives, that sales brokers or distributors;
(iv) any partnership, joint venture agreement, development, joint development or similar arrangement which is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xiv) that is a license (any Contract for the borrowing or a covenant, consent lending of money and any guaranty agreement or other rights in or to use Intellectual Propertyevidence of indebtedness, including Capitalized Lease Obligations;
(vi) any Contract granting any Person an Encumbrance on any of Third Party Rights granted to the material assets of the Company or any Subsidiary of its Subsidiaries;
(vii) any Contract involving a dollar amount in excess of $50,000 providing for the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant license of any Intellectual Property to which or from the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 of its Subsidiaries;
(viii) any Contract involving a dollar amount in excess of $1,000,000, and/or (C) that is otherwise material to 50,000 containing any provisions requiring the Company and its Subsidiaries taken as a wholeto indemnify any other party thereto;
(xiiix) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from any Contract pursuant to which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any current or future Affiliate of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements them is or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities would be restricted from conducting the business of the Company or any of its Subsidiaries or relating any current or future Affiliate of any of them in any material respect at any time, in any manner or at any place in the world, or the expansion thereof to dispositionother geographical areas, voting customers, suppliers or dividends lines of business, or that grants the other party or any third person “most favored nation” or similar status, except for the following insofar as they do not impose the foregoing restrictions on the Company’s or any of its Subsidiaries’ right to conduct or expand their business (and only restrict such right with respect to the other party or parties thereto) (A) the Company’s employment agreements in the form previously furnished to Acquiror, (B) the Company’s standard independent contractor agreements in the form previously furnished to Acquiror and (C) the Company’s standard separation statement for departing employees substantially in the form previously furnished to Acquiror;
(x) any equity securities Contract of any character (contingent or otherwise) pursuant to which any employee or consultant is or may be entitled to receive any payment based on the revenues, earnings or financial performance or assets of the Company or any of its Subsidiaries or calculated in accordance therewith;
(xi) any agency Contract whereby the Company purports to grant a right to market or sell its products or any agency Contract affecting the Company’s or any of its Subsidiaries’ exclusive right to develop, market or sell its products;
(xii) any Contract pertaining to any customer of the Company or any of its Subsidiaries which represents more than 5% of the Company’s revenues in any of the last three (3) fiscal years or any Contract with an independent warehouse used by the Company or any of its Subsidiaries which is material to the Company or its Subsidiaries;
(xiii) Contracts that contain unlimited indemnification obligations by the Company or any of its Subsidiaries or that does not contain a limitation on the Company's liability;
(xiv) Contracts with any Governmental Authority;
(xv) Any Contract that relates to the settlement of any Action or any legal proceeding;
(xvi) any Contract with material suppliers to the Company or any of its Subsidiaries; or
(xvixvii) is with an affiliate or any other Person Contract that would be required to be disclosed under Item 404 of Regulation S-K promulgated filed with the SEC as an exhibit to a registration statement on Form S-1 if the Company or such Subsidiary were registering securities under the Exchange Securities Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract The Company has made available to Acquiror true and complete copies of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for all Material Contracts that have expired or terminated by their terms, and all of the amendments thereto. Each Material Contracts are Contract (Ai) is valid and binding on the Company or the applicable Subsidiary, as the case may be, and, to the Knowledge of the Company, the counterparties thereto, and is in full force and effect, enforceable against the Company or its Subsidiaries, as the case may be, and, to the Knowledge of the Company, against all third parties, in each case in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law); and (ii) shall continue in full force and effect upon consummation of the transactions contemplated by this Agreement, enforceable against the Company or a Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party theretoagainst all third parties, and (B) in full force and effectaccordance with its terms, except (i) as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other or similar Applicable Law laws affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually regardless of whether considered in a proceeding in equity or in the aggregate, reasonably be expected to have a Company Material Adverse Effectat law). Neither the Company nor any Subsidiary None of the Company hasor any of its Subsidiaries is in breach of, andor default (with or without the giving of notice, with lapse of time or both) under, any Material Contract. To the Knowledge of the Company, no other party to any Material Contract is in default thereunder, nor, to the Knowledge of the Company, none of does any condition exist that with the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) both would constitute a breach of or default under, the provisions of by any Material Contractsuch other party thereunder, except in each case for those violations, acts (or failures to act) and such defaults whichas, individually or in the aggregate, would have not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company had and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect. No other party to any Material Contract has (i) notified the Company that such other party intends to cancel or otherwise terminate such Material Contract or (ii) since December 31, 2013, taken any action or threatened to take any action, with respect to seeking a repayment of amounts paid to the Company or any of its Subsidiaries pursuant to such Material Contract or a reduction in fees or other payments that will become due to the Company or any of its Subsidiaries pursuant to such Material Contract.
Appears in 1 contract
Material Contracts. (a) Except (iSection 2.12(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary Seller Disclosure Letter sets forth a correct and complete list of each of the Company following Transferred Contracts, except for any Benefit Plan, to which Seller or its Affiliates, in respect of the Business, or the Company, is a party to or is bound by any (each, a “Material Contract:”):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)any Lease;
(ii) each Contract (or group of related Contracts with respect to a single transaction or series of related transactions) that is with involves future payments, other residual Liability, performance or services or delivery of goods or materials to or by the ten (10) largest customers Business of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time any amount or value reasonably expected to exceed $2,000,000 in any future 12‑month period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten each Contract (10A) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost any third Person has granted any license or other right under any Intellectual Property Rights or IT Assets to Seller or its Affiliates that are material to the Business, other than Contracts (x) with annual fees of goods and less than $150,000 per annum (or $500,000 over the term of the license agreement if license fees are not determined on an annual basis), or (y) for off-the-shelf Software, IT Assets or information technology services is paid that are generally commercially available or payable by (B) material to the Company)Business pursuant to which any Transferred Intellectual Property or Transferred IT Assets are licensed to a third party, other than licenses granted in the Ordinary Course of Business, including in connection with the sale or licensing of products or services of the Business;
(iv) any partnership agreement, limited liability agreement and affiliation agreement, and any other Contract that is creates a Government Contractstrategic alliance, joint venture or similar arrangement;
(v) evidencing a capital expenditure for each Contract pursuant to which future payments are required the Company, Seller or any of its Affiliates in respect of the Business acquired another operating business and involving payment obligations in excess of $5,000,000500,000 under which the Business has ongoing rights or obligations;
(vi) relating to the disposition or acquisition of any businesseach Contract that contains a put, equitycall, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or refusal, right of first offer or similar right pursuant to which Seller or any of its Affiliates with respect to the Business could be required to, directly or indirectly, purchase or sell, as applicable, any securities, capital stock or other interests, assets or business of any Person reasonably expected to result in payments with a value in excess of $200,000 in any 12-month period;
(vii) each Contract that limits prohibits the ability payment of dividends or distributions in respect of the capital stock, membership interests, partnership interests or other equity interests of the Company, the pledging of the capital stock, membership interests, partnership interests or other equity interests of the Company or any the incurrence of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of indebtedness by the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeCompany;
(viii) relating to each Contract that (A) imposes a non-de minimis restriction on the geographies or evidencing indebtedness for borrowed moneybusinesses or activities in which the Business may operate or engage, debt securities(B) contains exclusivity obligations or similar restrictions binding on the Business or that would be binding on the Business after Closing, warrants (C) contains any “take or other rights to acquire any debt securities, of the Company pay,” “sole source” or any Subsidiary of the Company“requirements” obligations, or (D) pursuant to which the Business provides any guarantee by material pricing, discounts or benefits that change based on the Company pricing, discounts or of its Subsidiaries of the obligations of any Person (in each casebenefits offered to other customers, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)including agreements containing “most favored nation” provisions;
(ix) any hedging, swap, derivativeeach Contract creating indebtedness for borrowed money in amounts (A) in excess of $200,000 individually, or similar Contract(B) in excess of $500,000 in the aggregate or guaranteeing any such obligations in excess of such amounts;
(x) that is each Contract involving a license (or a covenant, consent or other rights in or to use Intellectual Property) granted remaining commitment by the Company or Business to pay any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 single capital expenditure in excess of $1,000,000, other than non-exclusive licenses granted to customers 200,000 or series of capital expenditures in excess of $500,000 in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;aggregate; and
(xi) that is each Contract directly with a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken Governmental Entity as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariescounterparty.
(b) Each Contract Seller has made available to Buyer true and complete copies of each Material Contract, in each case as amended or modified and in effect as of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Execution Date. Except for expirations, including any non-renewals, in the Ordinary Course of Business and in accordance with the terms of such Material Contracts that have expired Contract between the Execution Date and the Closing, each Material Contract is valid, binding and enforceable against Seller, its Affiliates or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the CompanySeller, each other party thereto, in accordance with its terms and (B) is in full force and effect. There is no actual or alleged breach or violation of, or default under, any such Material Contract by Seller, its Affiliates or the Company or, to the Knowledge of Seller, any counterparty thereto, and no event has occurred that, with the lapse of time or the giving of notice or both, would reasonably be expected to constitute a default thereunder by Seller, its Affiliates or the Company or would permit or cause the termination, acceleration or modification thereof, in each case, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effectbe material to the Business. Neither the Company nor any Subsidiary As of the Company has, and, to the Knowledge of the CompanyExecution Date, none of the other parties thereto have, violated Seller or its Affiliates has provided or received any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty intention to terminate any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Cornerstone Building Brands, Inc.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Schedule 4.19 lists as of the date hereof, neither the Company nor any Subsidiary Agreement Date each of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar following Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside is a party or which bind or affect their respective properties or assets (excluding (x) Licenses, all of which Contracts are disclosed on Schedule 4.15(i)):
(i) any Contract or group of related Contracts for the purchase or lease of services, products, materials, supplies, goods, equipment, or other assets providing for either (A) annual payments by the Company in excess of $5,000, including any and all purchase orders; or (B) give rise to anticipated receipts by the counterparty to the Contract of more than $5,000 in any calendar year, in each case that cannot be terminated on more than ninety (90) days’ notice without payment by the Company of a penalty in excess of $5,000;
(ii) any Contract involving the obligation of the ordinary course Company to sell products or services pursuant to which the aggregate payments to become due to the Company exceeds $5,000 annually;
(iii) any Contract relating to the acquisition or disposition of any material business (whether by merger, stock sale, asset sale, or otherwise) pursuant to which the Company or its Subsidiaries have has material continuing obligationsobligations following the date of this Agreement;
(iv) any Contract relating to any swap, forward, futures, warrant, option or other derivative transaction;
(v) any Contract appointing any agent to act on behalf of the Company or any power of attorney;
(vi) any option, license, franchise or similar Contract;
(vii) containing (A) a covenant any employment, severance, retention, change in control or other provision limiting in similar Contract with any material respect current or former director, officer or employee with the ability title of vice-president or higher of the Company in respect of which the Company has or could reasonably be expected to have ongoing payment obligations after the Closing Date;
(viii) any Contract with a Governmental Authority;
(ix) any Contract between the Company, on the one hand, and Seller or any Subsidiary of its Affiliates, on the Company to compete or engage in other hand;
(x) any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right Contract containing provisions that limits limit the ability of the Company or any of its Subsidiaries Affiliates (or which, following the consummation of the transactions contemplated hereby, could restrict the ability of Buyer or any of its Affiliates) to compete in any business or with any Person or in any geographic area, or to sell, transfersupply or distribute any of the Company’s services or products (including any non-compete, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volumeexclusivity, “earnoutmost-favored-nation” or other contingentsimilar requirements) or pursuant to which any benefit or right is required to be given or lost, deferred or fixed payment obligation any penalty or detriment is incurred, as a result of so competing or engaging; Pharma15 Corporation 17
(xi) any Contract that provides for or governs the formation, creation, operation, management or control of any strategic partnership, joint venture, joint development, or similar arrangement or partnership; and
(xii) any Contract that relates to Indebtedness having an outstanding principal amount in excess of $1,000 or conditional sale arrangements, the sale, securitization or servicing of loans or loan portfolios, in each case, in connection with which the aggregate actual contingent obligations of the Company and its Subsidiaries, in each case, that Subsidiaries under such Contract is material to the Company and its Subsidiaries, taken as a whole;greater than $1,000.
(viiib) relating The Company previously has made available to Buyer and Parent true, correct, and complete copies of all Contracts disclosed or evidencing indebtedness for borrowed moneyrequired to be disclosed on Schedule 4.19 (each, debt securitiesa “Material Contract”); in the case of any oral Material Contract, warrants or other rights to acquire any debt securities, Schedule 4.19 sets forth a full and accurate written summary of the material terms of such Contract. Each Material Contract is valid and binding on the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenantparty thereto and is in full force and effect and enforceable in accordance with its terms, consent or other rights in or to use Intellectual Property) of Third Party Rights granted subject to the Company Enforcement Limitations, and unless expired or any Subsidiary of the Company (A) on an exclusive basisterminated in accordance with its terms. The Company, (B) on a non-exclusive basisits Subsidiaries and, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company Knowledge of Sellers and its Subsidiaries taken as a whole;
(xii) that the Company, each other party to each Material Contract, have performed and complied with all obligations required to be performed or complied with by them under each Material Contract. There is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or no default under any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Material Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of by the Company or any of its Subsidiaries or relating to dispositionby any other party, voting and no event has occurred that with the lapse of time or dividends with respect to any equity securities the giving of either written or oral notice or both would constitute a default thereunder by the Company or any of its Subsidiaries; or
(xvi) is with an affiliate Subsidiaries or by any other Person that would be required party to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “each Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Stock Purchase Agreement (Radiopharm Theranostics LTD)
Material Contracts. (a) Except (iSchedule 4.6(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planssets forth a complete list, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the following Contracts (excluding any Employee Benefit Plan) to which a Group Company is a party to or is bound by any Contract:(the Contracts set forth on such Schedule, collectively, the “Material Contracts”):
(i) Contracts with the Group Companies’ vendors that is a “material contract” involved expenditures by the Group Companies of more than $100,000 for the twelve (as such term is defined in Item 601(b)(10) 12)-month period ended on December 31, 2015 or are reasonably expected to involve expenditures by the Group Companies of Regulation S-K of more than $100,000 for the Exchange Act)twelve (12)-month period commencing on January 1, 2016;
(ii) that is with Contracts relating to the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, Credit Arrangements and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Indebtedness with a principal amount outstanding greater than $250,000;
(iii) that is with Contracts prohibiting or restricting the ten (10) largest vendors ability of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Group Company or any of its Subsidiaries outside of the ordinary course of business pursuant Affiliates to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or engage any other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete service providers or engage in any line of business or to compete with any Person in any geographic geographical area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viiiiv) relating to joint venture Contracts, partnership agreements or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person limited liability company agreements with a third party (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-other than with respect to wholly owned Subsidiaries of the Company);
(v) Contracts pursuant to which any Group Company grants or receives a license to use any Group Company IP Rights (other than licenses for commercially-available software or involving annual payments to or from the Group Companies that do not exceed $150,000 per year);
(vi) Contracts that require any Group Company to dispose of or acquire any assets or properties valued in excess of $500,000 after the date hereof, or any merger or business combination with respect to any Group Company;
(vii) Contracts that constitute an interest rate cap, interest rate collar, interest rate swap or other contract or agreement relating to a hedging transaction;
(viii) Contracts that constitute an agreement under which any Group Company has purchased or sold real property and such Group Company has uncompleted financial obligations in excess of $250,000 or material obligations to indemnify a third party that have not expired;
(ix) Contracts that require any hedging, swap, derivativeGroup Company to make any re-prorations or adjustments to previously paid prorations with respect to any Owned Real Property that would reasonably be expected to result in the loss of future payments to, or similar Contractan obligation to make payments by, any such Group Company of more than $250,000;
(x) that is Contracts under which a license (or Person other than a covenant, consent or other rights in or Group Company provides property management services to use Intellectual Property) granted by the a Group Company or any Subsidiary of the under which a Group Company provides property management services to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, a Person other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeGroup Company;
(xi) Contracts that is constitute a license loan to any Person (or other than a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any wholly-owned Subsidiary of the Company) by any Group Company (A) on in an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 amount in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;250,000; or
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends Contracts with respect to any equity securities of the transactions between a Group Company or any of its Subsidiaries; or
(xvi) is with and an affiliate or other Person that would be Affiliate required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesset forth on Schedule 4.18.
(b) Each Contract of the type described above in Section 4.15(aExcept as set forth on Schedule 4.6(b), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, each Material Contract is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the applicable Group Company or the applicable Subsidiary of the Company, as the case may be, and enforceable in accordance with its terms against such Group Company and, to the Knowledge of the Company, each other party thereto, and thereto (B) in full force and effect, except (i) as may be limited by subject to applicable bankruptcy, insolvency, reorganization, moratorium and or other similar Applicable Law Laws affecting generally the enforcement of creditors’ rights generally and by subject to general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contractequity), except in each case for those violationswhere any such invalidity, acts (failure to be binding or failures to act) and defaults which, individually non-enforceability is not or in the aggregate, would not reasonably be expected to have be material to the Group Companies, taken as a Company Material Adverse Effect whole. Except as set forth on Schedule 4.6(b), each Group Company, and, as of February 1, 2021, to the Knowledge Company’s Knowledge, each of the Companyother parties thereto, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty performed all obligations required to any be performed by it under each Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that except where any such counterparty presently engages in non-performance is not or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to be material to the Group Companies, taken as a whole.
(c) No Group Company is a party or is subject, directly or indirectly, to any Tax Protection Agreement that will survive the Closing or that would require payments thereunder in connection with the consummation of the Merger and the other transactions contemplated hereunder. As used herein, a “Tax Protection Agreement” is an agreement that has as one of its purposes to permit a Person to take the position that such Person could defer federal taxable income that otherwise might have been recognized upon a Material Adverse Effecttransfer of property to a Group Company that is treated as a partnership for federal income tax purposes, and that (i) prohibits or restricts in any manner the disposition of any assets of a Group Company, (ii) requires that any Group Company maintain, put in place, or replace, indebtedness, whether or not secured by any Owned Real Property, or (iii) requires that any Group Company offer to any Person at any time the opportunity to guarantee or otherwise assume, directly or indirectly (including through a “deficit restoration obligation,” guarantee (including a “bottom dollar” guarantee), indemnification agreement or other similar arrangement (including a “bottom dollar” reimbursement agreement)), the risk of loss for federal income tax purposes for indebtedness or other liabilities of any Group Company.
(d) No Group Company has guaranteed the Indebtedness of any Person that is not a Group Company.
Appears in 1 contract
Material Contracts. (a) Except as disclosed on Schedule 5.6, Parent has delivered or made available to the Company an accurate list (attached hereto as Schedule 5.6), and true and complete copies, of all of the material contracts, leases and instruments to which Parent is a party or by which Parent or any of its material assets are bound, including, (i) as filed as exhibits to the Company SEC Documents, any Provider Contract; (ii) for this Agreement and the any loan agreement, promissory note, mortgage, security agreement, guaranty or other agreements documents entered into in connection therewith with the transactions contemplated hereby and respect to any Indebtedness; (iii) any contract or agreement for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreementsmaintenance, purchase orders or statements sale of work equipment or invoices entered into in capital assets that involves the ordinary course expenditure or receipt of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesmore than One Hundred Thousand Dollars ($100,000);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
; (iv) any lease of personal or real property where Parent is lessor or lessee that is a Government Contract;
involves the expenditure or receipt of more than Fifty Thousand Dollars ($50,000); (v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
any partnership agreement or joint venture agreement; (vi) relating to any license or other agreement involving Parent’s Intellectual Property that is material and necessary for the disposition or acquisition of any business, equity, or all or substantially all operation of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
Business; (vii) containing (A) a covenant any agreement with another Person limiting or other provision limiting in any material respect restricting the ability of the Company or any Subsidiary of the Company Parent to compete enter into or engage in any market or line of business or to compete with any Person in any geographic area, business; (viii) other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course Ordinary Course of businessBusiness, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right any contracts for the sale of first refusal or right of first offer or similar right any assets that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is would be material to the Company and its Subsidiaries, Parent taken as a whole;
(viii) relating whole or for the grant to or evidencing indebtedness for borrowed money, debt securities, warrants or other any Person of any preferential rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and purchase any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
their assets; (ix) any hedgingagreement relating to the acquisition by Parent of any material operating business or the material assets or capital stock of any other Person entered into since January 1, swap, derivative, or similar Contract;
2013; (x) that is a license any agreements under which Parent has made material advances or loans to any other Person (which shall not include advances or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers loans made in the ordinary course Ordinary Course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
Business); (xi) any material settlement since January 1, 2013 or similar contract resolving any litigation against or by Parent that is a license (or a covenant, consent or other rights in or creates reporting obligations to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
Governmental Authority; (xii) sales representative or sales or distribution contracts that is a Company Real Property Lease with remaining obligations in excess involve the expenditure or receipt of more than Twenty-Five Thousand Dollars ($1,000,000;
25,000); and (xiii) that involves a material joint venture, profit sharing, partnership any shareholders or similar voting agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with contract under which Parent has granted any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or Person any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements(collectively, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries“Parent Material Contracts”).
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, With respect to the Knowledge of the Company, each other party thereto, and Parent Material Contracts: (Bi) Each Parent Material Contract is in full force and effecteffect against Parent, except (i) as may be limited by bankruptcyhas not been terminated or canceled and no written notice of termination or cancellation has been given or received, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or Parent has not been advised in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of writing that the other parties party thereto have, violated intends to cancel any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Parent Material Contract, except in each case for those violationsand (iii) to Parent’s Knowledge, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company there are no outstanding disputes under any Parent Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContract.
Appears in 1 contract
Material Contracts. The Company has delivered or made available to Purchaser a true and complete copy of each written Contract that is of a type described below (collectively, the "COMPANY MATERIAL CONTRACTS"):
(a) Except any Contract for capital expenditures or the acquisition or construction of fixed assets in excess of $250,000.00 per annum;
(ib) as filed as exhibits any Contract for the purchase or lease of goods or services (including without limitation, equipment, materials, software, hardware, supplies, merchandise, parts or other property, assets or services), requiring aggregate future payments in excess of $250,000.00 per annum, other than standard inventory purchase orders executed in the ordinary course of business;
(c) any Contract relating to the Company SEC Documentsborrowing of money or guaranty of indebtedness;
(d) any collective bargaining or other arrangement with any labor union;
(e) any Contract granting a first refusal, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as first offer or similar preferential right to purchase or acquire any of the date hereofCompany's capital stock or assets;
(f) any Contract limiting, neither restricting or prohibiting the Company nor from conducting business anywhere in the United States or elsewhere in the world or any Subsidiary Contract limiting the freedom of the Company is a party to engage in any line of business or is bound by to compete with any other Person;
(g) any joint venture or partnership Contract:;
(h) any written employment Contract, severance agreement or other similar binding agreement or policy with any officer or employee; and
(i) any Contracts requiring future payments of $250,000.00 or more per annum which are not otherwise described in clauses (a) though (h) above. The Company has also delivered or made available to Purchaser a copy of the Company's form of independent contractor agreement. Each Company Material Contract is a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, subject only to bankruptcy, reorganization, receivership or other laws affecting creditors' rights generally and general principles of equity (whether applied in an action at law or in equity). The Company is in compliance with all obligations required to be performed by it under the Company Material Contracts, and the Company is not and, to the Knowledge of the Company, no other party to a Company Material Contract is, in breach or default thereunder in any material respect. Each Contract of the Company that is a “"material contract” (" as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of SEC has been filed in the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable SEC Reports prior to the date hereof. The Company is not a party to any written or its Subsidiaries);
(iii) that is oral customer contract with the ten (10) largest vendors revenues of the Company and its Subsidiaries during the fiscal over $150,000 per year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of requires the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities penalty upon termination of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariessuch contract.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Merger Agreement (Cd&l Inc)
Material Contracts. (a) Except (i) as filed as exhibits Schedule 3.15 to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as Disclosure Letter sets forth a list of all Contracts of each of the date hereof, neither the Company nor any Subsidiary of following types to which the Company is a party and under which the Company has any express obligations to or is bound by any ContractPerson continuing as of the date of this Agreement:
(i) that is a “material contract” any loan or security agreement relating to the borrowing or lending of money by the Company in excess of fifty thousand Dollars (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act$50,000);
(ii) that is with the ten (10) largest customers of any agreement pursuant to which the Company and is expressly committed to sell any of its Subsidiaries during the fiscal year ended January 31, 2024 assets or properties (as determined based on revenue received from such customers during such time periodother than inventory) to a Third Party for a sale price in excess of fifty thousand Dollars ($50,000) (excluding value added tax, sales tax or any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts taxes) in any one case or pursuant to which revenue is paid or payable to the Company has granted to a Third Party any option or preferential right to purchase any of its Subsidiariesassets or properties (other than inventory);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts guarantee pursuant to which cost the Company has expressly guaranteed the obligations of goods and services is paid or payable by the Company)a Third Party;
(iv) that any agreement pursuant to which the Company has expressly agreed not to engage in or not to compete with any Third Party in any line of business which is a Government Contractmaterial to the Company;
(v) evidencing a capital expenditure for which future payments are required in excess any agreement with the Seller or any of $5,000,000its Affiliates, irrespective of the content or value of such agreement;
(vi) all areas of mutual interests agreements, purchase or sale agreements (other than with respect to production of Hydrocarbons in the Ordinary Course), partnership agreements (other than tax partnerships), joint venture and exploration or development program agreements relating to the disposition Licences or acquisition of by which the Licences are bound;
(vii) all Hydrocarbons production sales or purchase, transportation, marketing, supply, exchange and processing agreements relating to the Licences other than such agreements that are terminable on upon not more than ninety (90) days’ notice without material penalty by the Company;
(viii) any business, equity, contracts or all or substantially all of agreements that could reasonably be expected to require capital expenditures by the assets of any Person for aggregate consideration Company in excess of one hundred thousand Dollars ($5,000,000 by 100,000) in any calendar year;
(ix) other than contracts governing the sale of Hydrocarbons, any contracts or agreements related to the Licences under which the Company has received in excess of one hundred thousand Dollars ($100,000) of revenues net of direct expenses in any calendar year;
(x) any contracts or agreements providing for a call upon, option to purchase or similar right under any agreements with respect to the Hydrocarbons from the Licences;
(xi) any contract or agreement with any labor union or employee association that relates to the Company’s employees (or any of its Subsidiaries outside them);
(xii) other than (x) this Agreement, (y) contracts or agreements governing the sale of Hydrocarbons or (z) the disposition in the Ordinary Course of equipment no longer suitable for Hydrocarbons field operation, any contract or agreement for, or that contemplates, the sale, exchange or transfer of any of the ordinary course Company’s Participating Interest;
(xiii) any unit agreement and any operating agreement applicable to any Licence; and
(xiv) any other agreement material to the Business of business the Company as presently conducted, made other than in the Ordinary Course of Business and pursuant to which the Company or its Subsidiaries have material continuing obligations;
is expressly committed to make future payments in excess of fifty thousand Dollars (vii$50,000) containing (Aexcluding value added tax, sales tax any other similar taxes) a covenant or other provision limiting in during any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company calendar year and its Subsidiaries, in each case, that which is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee not cancellable by the Company without material penalty upon one year’s notice or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basisless, (B) pursuant the foregoing Contracts being referred to which collectively as the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company “Material Contracts” and its Subsidiaries taken individually as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions“Material Contract”);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of Except as disclosed on Schedule 3.15(b) to the type described above in Section 4.15(a)Disclosure Letter, whether or except as would not set forth in Section 4.15(ahave a Material Adverse Effect:
(i) of the Company Disclosure Schedulehas not violated or breached, is referred to herein as a “Material Contract.” Except for or committed any default under such Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the CompanySeller, each no other party theretoto such Material Contract has violated or breached, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and or committed any default under a Material Contract;
(ii) as would notneither entering into, individually or in the aggregatenor compliance with, reasonably be expected to have a Company Material Adverse Effect. Neither nor completion of this Agreement by the Company nor any Subsidiary will result in a material breach of the Company has, andor, to the Knowledge of the CompanySeller, none permit a party thereto to terminate or vary, or result in any material Encumbrance, under any Material Contract;
(iii) the Company has not received or given written notice as of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse date of time or both) would constitute a breach of or this Agreement that the Company is in material default under, the provisions of under any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, which default remains unremedied as of February 1, 2021, to the Knowledge date hereof;
(iv) each of the Company, neither the Company nor any Subsidiary of Material Contracts is in full force and effect; and
(v) the Company has not received or given written notice of any as of the foregoing. To the Knowledge date of the Company, since February 1, 2021, no counterparty this Agreement that a party to any Material Contract has intends to exercise any right of cancellation, termination, acceleration or modification under any such Material Contract.
(Ac) canceled or otherwise terminated, or threatened in writing Prior to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materiallydate hereof, the amount Seller has furnished to the Purchaser a true and complete copy of business that any such counterparty presently engages in or presently conducts with the Company each Material Contract and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectall amendments thereto.
Appears in 1 contract
Material Contracts. (a) Except for (i) as filed as exhibits to this Agreement and the Company SEC DocumentsTransaction Agreements, (ii) for this Agreement and those agreements filed as an exhibit to the other agreements entered into in connection with the transactions contemplated hereby and SEC Reports or (iii) for Company Employee Planswhich individually or in the aggregate are not material to the Company's or any of the Subsidiaries' businesses, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company is Subsidiaries are a party to or is bound by any Contractby:
(ia) that is a “material contract” any trust indenture, mortgage, promissory note, loan agreement or other contract for the borrowing of money, any currency exchange, commodities or other hedging arrangement (as other than any such term is defined in Item 601(b)(10arrangement entered into for bona fide hedging purposes) of Regulation S-K or any leasing transaction of the Exchange Act)type required to be capitalized in accordance with Statement of Financial Accounting Standards No. 13 of the Financing Accounting Standards Board;
(iib) that is with any contract for capital expenditures in excess of two hundred fifty thousand dollars ($250,000) in the ten aggregate;
(10c) largest customers any contract limiting the freedom of the Company and its Subsidiaries during the fiscal year ended January 31to engage in any line of business, 2024 (as determined based on revenue received to acquire any material product or asset from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in other Person outside the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid sell any material product or payable to asset outside the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors ordinary course of the Company and its Subsidiaries during the fiscal year ended January 31business to, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding perform any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in material service outside the ordinary course of business, and or to compete with any other similar Contracts that are ancillary to Contracts Person;
(d) any contract pursuant to which cost the Company is a lessor of goods and services is paid real property or payable by of any machinery, equipment, motor vehicles, office furniture, fixtures or other personal tangible property involving in the Company)case of any such personal property contract more than one hundred thousand dollars ($100,000) over the life of the contract;
(ive) that is a Government Contractany material contract with any Person with whom the Company does not deal at arm's length;
(vf) evidencing a capital expenditure any contract which provides for which future payments are required in excess the indemnification of $5,000,000any officer, director, employee or agent;
(vig) relating to the disposition or acquisition any guarantee of indebtedness of any business, equity, other Person;
(h) any contract with or all or substantially all of the assets of commitment to any Person for aggregate consideration in excess of $5,000,000 by labor union;
(i) any contract between the Company or any of its the Subsidiaries outside and any Governmental Authority, where the amount of fees involved, or the ordinary course amount of business pursuant services to which the Company or its Subsidiaries have material continuing obligationsbe provided, exceeds five hundred thousand dollars ($500,000);
(viij) containing (A) a covenant any contract or other provision limiting in commitment for or relating to the employment of any material respect the ability officer, employee or consultant of the Company or any Subsidiary other type of contract or understanding with any officer, employee or consultant of the Company to compete that is not immediately terminable (or engage in any line of business terminable within thirty (30) days or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into less in the ordinary course case of business, (Bconsultants) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company without cost or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);other liability; and
(ixk) any hedging, swap, derivativejoint venture or partnership contract or other agreement which has involved, or similar Contract;
(x) that is reasonably expected to involve, a license (sharing of profits, expenses or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) losses with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesparty.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Securities Purchase Agreement (National Technical Systems Inc /Ca/)
Material Contracts. (a) Except (iSection 3.17(a) as filed as exhibits to of the Disclosure Schedule lists, under separate headings, each of the following contracts and agreements of ▇▇▇▇▇▇ Development, the Company SEC Documents, and ▇▇▇▇▇▇ UA that are in effect (ii) for this Agreement such contracts and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:being “Material Contracts”):
(i) all management contracts and contracts with independent contractors or consultants (or similar arrangements) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act)are not cancelable without penalty or further payment and without more than 30 days’ notice;
(ii) all leases with respect to the Leased Real Property;
(iii) all contracts and agreements that is (A) limit or purport to limit the ability of ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA to compete in any line of business or with any Person or in any geographic area or during any period of time, (B) creates or purports to create any exclusive relationship or arrangements, (C) grants any Person an option or a first-refusal, first-offer or similar preferential right, or (D) contains most-favored nations pricing or other most-favored nations terms;
(iv) all transportation agreements, services agreements and other agreements which have unexpired terms in excess of one year;
(v) all Personal Property Leases having an annual Liability in excess of $25,000;
(vi) all Related Party Agreements that are not terminated as of the Closing;
(vii) any contract or indenture relating to (A) Indebtedness, (B) placing any Encumbrance (other than Permitted Encumbrances) on any portion of the Assets, or (C) any guaranty of any obligation for borrowed money or other material guaranty;
(viii) any contract relating to the acquisition of assets (other than in the ordinary course of business) or any merger, purchase of stock or other acquisition of any share capital of any business enterprise or material assets or equity interests of any other Person;
(ix) any joint venture or partnership contract pursuant to which ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA holds any securities or other Equity Rights in another Person;
(x) any contract or group of related contracts with the ten (10) largest customers same party for the purchase of tangible products or services that provide for annual payments by ▇▇▇▇▇▇ Development, the Company and its Subsidiaries during the fiscal year ended January 31, 2024 or ▇▇▇▇▇▇ USA in excess of $25,000;
(as determined based on revenue received from such customers during such time periodxi) any contract with (excluding A) Major Customer or (B) Major Supplier;
(xii) any non-disclosure agreements, data processing agreements, purchase orders contract with a Governmental Authority (other than license agreements or statements of work or invoices Permits entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiixiii) any contract under which ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA has advanced or loaned any amount to any other Person;
(xiv) any guaranty of any obligation for borrowed money or other guaranty of any obligation;
(xv) any contract that involves commitments to make capital expenditures or which provide for the purchase of goods or services from any one Person under which the annual expenditures or the undelivered balance of such products or services has a purchase price in excess of $25,000;
(xvi) any contract relating to any settlement of any litigation that (A) was pending against ▇▇▇▇▇▇ Development, the Company or ▇▇▇▇▇▇ USA at any time during the last five years, or (B) that is with contains continuing, outstanding or ongoing commitments;
(xvii) any contract relating to the ten (10) largest vendors sale of any of the Company and its Subsidiaries during the fiscal year ended January 31Assets, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(ivxviii) Contracts (A) continuing over a period of more than one year from the date thereof or (B) with any agents, distributors or representatives, in each case that is a Government Contractare not terminable without penalty on 60 days’ notice or less;
(vxix) evidencing a capital expenditure for (A) employment agreements with key or executive employees or which future payments are required deviate in excess of $5,000,000any material respect from the Company’s standard employment agreement as made available to the Purchaser or (B) collective bargaining contracts or contracts with any labor organization, union or association;
(vixx) contracts providing for (A) accelerated vesting, material modification or the payment of any cash or other compensation or benefits upon the consummation of the transactions contemplated hereby or (B) retention, severance (beyond statutory severance), change in control or other similar payments;
(xxi) any contract relating to the disposition or acquisition licensing of IP Rights by any business, equity, or all or substantially all member of the assets ▇▇▇▇▇▇ Group to a third party or by a third party to any member of any Person for aggregate the ▇▇▇▇▇▇ Group, in each case involving consideration in excess of $5,000,000 by the Company or 25,000 per annum, and all other agreements affecting any of its Subsidiaries outside member of the ordinary course of business pursuant ▇▇▇▇▇▇ Group’s ability to which the Company use, commercially exploit or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in disclose any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its SubsidiariesIP Rights, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property than (A) on an exclusive basislicenses for commercially available, general purpose, non-customized computer software used by any member of the ▇▇▇▇▇▇ Group and having a license or subscription fee of less than $5,000 per annum or (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to license agreements entered into by any member of the ▇▇▇▇▇▇ Group with customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xixxii) all contracts providing for (A) indemnification (including with respect to IP Rights, employees and directors) or (B) any guaranty of third party obligations, in each case entered into outside the ordinary course of business; and
(xxiii) any contract not otherwise specified above that is a license (involves an annual commitment or a covenantannual payment to or from ▇▇▇▇▇▇ Development, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration ▇▇▇▇▇▇ USA of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries25,000 individually.
(b) Each Contract of the type described above Except as disclosed in Section 4.15(a), whether or not set forth in Section 4.15(a3.17(b) of the Company Disclosure Schedule, each Material Contract (i) is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on ▇▇▇▇▇▇ Development, the Company or the applicable Subsidiary of the Company▇▇▇▇▇▇ USA, as the case may beapplicable, and, to the Knowledge of the CompanySeller, each other party the counterparties thereto, and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) upon consummation of the transactions contemplated by this Agreement, except to the extent that any consents set forth in Section 3.03(c) of the Disclosure Schedule are not obtained, shall continue in full force and effect without penalty or other adverse consequence, and (iii) is not the subject of any pending, or to the Knowledge of the Seller, threatened, dispute. Except as would notdisclosed in Section 3.17(b) of the Disclosure Schedule, individually or in the aggregateneither ▇▇▇▇▇▇ Development, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has▇▇▇▇▇▇ USA, andnor, to the Knowledge of the CompanySeller, none any of the other parties thereto havethereto, violated any provision is in material breach of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or material default under, the provisions of any Material ContractContract to which it is a party (nor does there exist any condition that, except in each case for those violationsupon the passage of time, acts (the giving of notice or failures to act) and defaults which, individually or in the aggregateboth, would not reasonably be expected to have cause such a Company Material Adverse Effect andviolation or default by the Company, as of February 1▇▇▇▇▇▇ USA, 2021or, to the Knowledge of the CompanySeller’s Knowledge, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectparty thereto).
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansset forth on Schedule 2.14(a), as of the date hereof, neither the Company nor any Subsidiary no member of the Company Group is a party to or is bound any written Contract (other than such Contracts which may be terminated by any Contract:a member of the Company Group on up to ninety days’ notice):
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K relating to any written employment, consulting or similar arrangements requiring payment by any member of the Exchange Act)Company Group of base annual compensation in excess of $100,000;
(ii) that is with the ten (10) largest customers pursuant to which any member of the Company and its Subsidiaries during the fiscal year ended January 31Group has incurred any indebtedness for borrowed money, 2024 committed to incur indebtedness for borrowed money, or guaranteed indebtedness of any other Person (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements other than another member of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its SubsidiariesGroup);
(iii) that is with the ten (10) largest vendors by its terms grants an Encumbrance upon any material asset of the Company and Group;
(iv) that by its Subsidiaries during terms provides for the fiscal year ended January 31sale, 2024 (as determined based on cost assignment, license or other disposition of goods and services paid to such vendors by any material asset or right of any member of the Company during such time period) (excluding any non-disclosure agreementsGroup, data processing agreements, purchase orders or statements of work or invoices entered into other than in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing pursuant to which the Company Group (other than pursuant to a capital expenditure for which future payments are required Loan) (A) paid or reasonably expects to pay more than $100,000 in excess of the last fiscal year or (B) received or reasonably expects to receive more than $5,000,000500,000 in the last fiscal year;
(vi) relating to the disposition that by its terms contains any covenant or acquisition of provision currently in effect prohibiting any business, equity, or all or substantially all member of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting Group from engaging in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any material line of business or to compete competing in any material respect with any Person in any geographic area;
(vii) that is a partnership or joint venture agreement in which any member of the Company Group participates as a general partner or joint venturer;
(viii) pursuant to which any member of the Company Group has advanced or loaned any amount to any of its directors, other than any customary employee non-solicitation officers or no-hire clauses entered into in employees outside the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) with any hedgingshareholder, swapmember, derivative, director or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or officer of any Subsidiary member of the Company to Company Intellectual Property Group (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in an employment agreement or the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeStockholders’ Agreement);
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its SubsidiariesAuthority; or
(xvixi) is with an affiliate or other Person that would be required any outstanding written commitment to be disclosed under Item 404 enter into any agreement of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among type described in the Company and its wholly-owned Subsidiariesforegoing subsections of this Section 2.14(a).
(b) Each Contract of the type described above in Section 4.15(a), whether or not Except as set forth in Section 4.15(aSchedule 2.14(b), each Contract that is listed in Schedule 2.14(b) of the Company Disclosure Schedule(each, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms”) is in full force and effect and constitutes the legal, all of the Material Contracts are (A) valid and binding on obligation of the member of the Company or the applicable Subsidiary of the Company, as the case may be, Group party thereto and, to the Knowledge of the Company, each other party thereto, and (B) enforceable against such party in full force and effectaccordance with its terms, except (i) as may be limited by in each case subject to applicable bankruptcy, insolvency, reorganization, moratorium and other similar Applicable Law Laws affecting creditors’ rights generally and by general principles remedies generally. No member of equity and (ii) as the Company Group or, to the Knowledge of the Company, any other party to any Material Contract, is in breach of, or in default under, such Material Contract, except for such breaches or defaults which would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary As of the Company hasdate hereof, and, no party has given any written notice of termination or cancellation of any Material Contract or that it intends to the Knowledge of the Company, none of the other parties thereto have, violated any provision assert a breach of, or committed seek to terminate or failed to perform any act undercancel, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material ContractContract as a result of the transactions contemplated hereby, in each case, except in each case for those violationswhere such termination, acts (cancellation or failures to act) and defaults whichassertion would not, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (iSection 3.15(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Disclosure Schedule sets forth as of the date hereof, neither the Company nor any Subsidiary hereof a list of the Company following Contracts (excluding any intercompany Contracts among Seller and its Affiliates that are not Transferred Contracts) that primarily relate to the DCB Business and to which a member of the Covidien Group is a party party, true and correct copies of which Seller has made available to or is bound by any Purchaser (each, a “Material Transferred Contract:”):
(i) that each lease or other Contract under which a member of the Covidien Group is a “material contract” (as such term is defined lessee of, or holds or operates, any machinery, equipment, vehicle or other tangible personal property owned by a third party that requires rental payments in Item 601(b)(10) excess of Regulation S-K of $200,000 per annum or $500,000 in the Exchange Act)aggregate;
(ii) that each Contract with any DCB Employee requiring payments of base salary in excess of $150,000 per annum, other than any Contract which by its terms is with the ten (10) largest customers cancelable by a member of the Company Covidien Group with notice of not more than thirty (30) days (or such longer period as required by Law) and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders without cancellation penalties or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)severance payments;
(iii) each mortgage, indenture, security agreement, pledge, note, loan agreement or guarantee in respect of indebtedness for borrowed money or any agreement that is with the ten creates a material Encumbrance (10other than a Permitted Encumbrance) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)Purchased Asset;
(iv) that is a Government Contracteach customer Contract requiring payments to the Covidien Group with respect to DCB Products in excess of $100,000 per annum or $500,000 in the aggregate;
(v) evidencing a capital expenditure for which future each outstanding Contract with vendors requiring payments are required by the Covidien Group with respect to DCB Products in excess of $5,000,000100,000 per annum or $500,000 in the aggregate;
(vi) relating each Contract materially restricting the ability of Seller to the disposition engage in any business or acquisition of compete with any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;Person; and
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar venture Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any and material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesjoint product development Contract.
(b) Each Contract of the type described above Except as disclosed in Section 4.15(a), whether or not set forth in Section 4.15(a3.15(b) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their termsthe Knowledge of Seller, all each Transferred Contract set forth on Section 3.15(a) of the Material Contracts are (A) Disclosure Schedule is a valid and binding on the Company or the applicable Subsidiary obligation of a member of the CompanyCovidien Group, as enforceable against such member of the case may be, Covidien Group in accordance with its terms and, to the Knowledge of the CompanySeller, each other party thereto, and (B) in full force and effect, except (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium and other or similar Applicable Law Laws affecting creditors’ rights generally and or by general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law), and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary neither such member of the Company has, andCovidien Group nor, to the Knowledge of the CompanySeller, none of the any other parties thereto haveparty thereto, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a is in material breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that under any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectTransferred Contract.
Appears in 1 contract
Material Contracts. (a) Except (iSchedule 3.09(a) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as lists each of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers following Contracts of the Company and its Subsidiaries (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property listed or otherwise disclosed on Schedule 3.10(b) and all Company IP Agreements set forth on Schedule 3.12(b), being “Material Contracts”):
(i) Each Contract of the Company or any of its Subsidiaries providing for payments to the Company or any of its Subsidiaries or payments from the Company or any of its Subsidiaries of an aggregate amount in excess of $300,000 during the fiscal year ended January ending as of December 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)2021;
(iiiii) that is with the ten (10) largest vendors Each Contract of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 to which any Material Customer or Material Supplier is a party;
(as determined based on cost of goods and services paid to such vendors by iii) All Contracts that require the Company during such time period) (excluding or any non-disclosure agreements, data processing agreements, of its Subsidiaries to purchase orders its total requirements of any product or statements of work service from a third party or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid contain “take or payable by the Company)pay” provisions;
(iv) All Contracts that is a Government Contract;
(v) evidencing a capital expenditure provide for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 indemnification by the Company or any of its Subsidiaries outside of any Person (excluding, for the avoidance of doubt, the Company Charter Documents) or the assumption of any Tax, environmental or other Liability of any Person other than indemnification obligations provided entered into in the Company’s ordinary course of business pursuant business;
(v) All Contracts that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);
(vi) All employment agreements and Contracts with independent contractors or consultants (or similar arrangements) to which the Company or any of its Subsidiaries have is a party providing for annual compensation in excess of $100,000 and which are not cancellable without material continuing obligationspenalty or without more than sixty (60) days’ notice;
(vii) containing Except for Contracts relating to trade payables, all Contracts relating to indebtedness (Aincluding, without limitation, guarantees) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of its Subsidiaries;
(viii) All Contracts with any Governmental Authority to which the Company or any of its Subsidiaries is a party (“Government Contracts”);
(ix) All Contracts that limit or purport to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits limit the ability of the Company or any of its Subsidiaries to sell, transfer, pledge compete in any line of business or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of with any Person (or in each case, excluding, for the avoidance any geographic area or during any period of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contracttime;
(x) that is a license (or a covenant, consent or other rights in or Any Contracts to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess is a party that provide for any joint venture, partnership or similar co-venture arrangement (other than supplier agreements which provide for the sharing of $1,000,000 during the fiscal year ended January 31, 2024development cost);
(xivxi) that is a settlement, conciliation All collective bargaining agreements or similar Contract (x) Contracts with any Governmental Authority entered into since February 1, 2021, (y) Union to which would require the Company or any of its Subsidiaries is a party; and
(xii) Any other Contract that is material to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries and not previously disclosed pursuant to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesthis Section 3.09.
(b) Each Material Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Companyand its Subsidiaries, as the case may beapplicable, and, to the Knowledge of the Company, each other party thereto, in accordance with its terms and (B) is in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge None of the Company, none its Subsidiaries or, to the Company’s Knowledge, except as set forth on the Disclosure Schedules, any other party thereto, is in breach of the other parties thereto have, violated any provision ofor default under (or is alleged to be in breach of or default under), or committed has provided or failed received any notice of any intention to perform terminate, any act underMaterial Contract. To the Company’s Knowledge, and no event or condition existscircumstance has occurred that, which (with notice or without notice, lapse of time or both) , would constitute a breach an event of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to under any Material Contract has or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Complete and correct copies of each Material Contract (Aincluding all modifications, amendments and supplements thereto and waivers thereunder) canceled or otherwise terminated, or threatened in writing have been made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectParent.
Appears in 1 contract
Material Contracts. (a) Except Other than Contracts related to employee benefits, which are provided for in Section 3.13, Lease Agreements, Company Leases and Real Estate Contracts, which are provided for in Section 3.15, and Contracts related to Intellectual Property or IT Assets, which are provided for in Section 3.16, Schedule 3.17 sets forth a true and correct list of (i) as filed as exhibits all Assigned Contracts or Contracts to which any Company is a party that (A) involve the sale or purchase of goods or tangible assets and are reasonably likely to involve the payment or receipt of more than $500,000 per year, and (B) involve the sale or purchase of services or intangible assets and are reasonably likely to involve the payment or receipt of more than $250,000 per year; (ii) all partnership, joint venture or similar Contracts that are Assigned Contracts or to which a Company is party, in each case that involve the ownership or operation of any business with any other Person; (iii) all Assigned Contracts and any Contract to which a Company is party, in each case with a term of more than one year that cannot be cancelled by such Asset Seller or Company on less than 90 days’ notice without premium or penalty that are reasonably likely to involve the payment or receipt of more than $500,000 per year; (iv) all Contracts obligating any Company to loan any amounts to or make any investment or capital contribution in any Person; (v) all Contracts relating to the borrowing of money by any Company SEC Documentsor to mortgaging, pledging or otherwise placing a Lien (other than a Permitted Lien) on any portion of the Purchased Assets or on any portion of the assets of a Company; (vi) any guaranty of any Company of any obligation for borrowed money, letter of credit or other guaranty of an obligation in excess of $50,000, or in the aggregate in excess of $250,000; (vii) except for Contracts for the employment of Persons employed by the Chihuahua Sub, the Monclova Sub or the Saltillo Sub, the execution of which are required by the Laws of Mexico, all Contracts for the employment of any officer, individual employee or other Person with a Company on a full-time or consulting basis or, with respect to the Asset Sellers, with a Business Employee; (viii) all Contracts that contain any provision or covenant that prohibit or limit the ability of an Asset Seller or Company from engaging in any line of business, to compete with any Person or to carry on or expand the scope of the Business (or with respect to a Company, any business) in any geographic area; (ix) all Contracts that contain any provision or covenant that would, upon Closing, prohibit or materially limit the ability of Purchaser or any of its Affiliates to engage in any business activity or compete with any Person or prohibit or materially limit the ability of any Person to compete with Purchaser or any of its Affiliates; (x) all Contracts under which a Company or, with respect to or in connection with the Business, an Asset Seller is the lessee of, or holds or operates any personal property owned by any other Person, for which the annual rental exceeds $100,000; (xi) all Contracts under which an a Company or, with respect to or in connection with the Business, an Asset Seller is the lessor of, or permits any Person to hold or operate any property, real or personal, for which the annual rental exceeds $100,000; (xii) all Contracts relating to the Business or to which a Company is party with, or bids or proposals of the Business or a Company to, a Governmental Authority; (xiii) all Contracts providing for “earn-outs,” “performance guarantees” or other similar contingent payments by a Company; (xiv) all Contracts relating to the Business or with a Company that grant material exclusivity rights or “most favored nations” status to the counterparty thereof; (xv) all support agreements, insurance, surety bonds or other similar Contracts relating to the Business or with a Company; (xvi) all powers of attorney relating to the Business or granted by a Company; (xvii) all Contracts for the acquisition of all or any portion of a Person or all or substantially all of its assets or the disposition of any material assets of a Company, other than Contracts in which the applicable acquisition or disposition has been consummated and there are no obligations ongoing; (xviii) all Contracts with any foreign sales agent, foreign sales representative and any other third party involved in interacting with a Governmental Authority on behalf of an Asset Seller or Company; and (xix) all other Contracts to which any Asset Seller or any of its Affiliates (including the Companies) is a party and that is material to, and otherwise necessary for, the continued operation of the Business (such Contracts, together with the Contracts related to employee benefits, Lease Agreements, Company Leases, Real Estate Contracts and Contracts related to Intellectual Property or IT Assets, the “Material Contracts”).
(b) Seller has delivered or made available to Purchaser a correct and complete copy of each Material Contract, together with all amendments and supplements thereto. Notwithstanding any provision of this Section 3.17, Seller, the Asset Sellers and Companies will not be required to provide copies of Material Contracts and other documents and data to any person to whom such access would be in violation of any Export Control Laws.
(i) Each Material Contract is in full force and effect and is valid, binding and enforceable against the Asset Seller or the Affiliate (including the Companies) of the applicable Asset Seller that is party thereto and, to the Knowledge of Seller, against the other parties thereto in accordance with its terms, subject to the General Enforceability Exceptions, (ii) for this Agreement none of the Asset Sellers, any of its Affiliates (including any Company), or, to Seller’s Knowledge, any other Person is in material breach or violation of, or default under, any Material Contract, (iii) none of the Asset Sellers or any of its Affiliates (including any Company) has received any written notice of a default under or breach of any Material Contract; (iv) each of the Asset Sellers and its Affiliates (including Company) have performed all material obligations required to be performed by it under each Material Contract. None of the other agreements entered into Asset Sellers or any of its Affiliates (including any Company) (A) has received any written notice of termination, cancellation or non-renewal with respect to any Material Contract, or (B) has waived or released any of its material rights under any Material Contract. To the Knowledge of Seller, none of the counterparties to the Material Contracts (1) plans to terminate, cancel or not renew such Material Contract, and (2) no event or development has occurred, and no fact, circumstance or condition exists, that (with or without notice or lapse of time or both) could reasonably be expected to give any Person the right to receive or require a material rebate, chargeback, penalty or change in delivery schedule under any Material Contract or cancel, terminate or modify any Material Contract. None of the Asset Sellers or any of its Affiliates (including any Company) has made any misrepresentations or inaccurate certifications in connection with any bid or proposal to any Governmental Authority.
(d) The Contracts referenced as numbers 4, 5, 6, 7 and 8 on Schedule 1.01-5(b) (the transactions contemplated hereby “Intercompany Contracts”) contain terms, conditions, pricing and (iii) for Company Employee Plansagreements no less favorable to Seller than those terms, conditions, pricing and agreements contained in or otherwise governing the previous supply arrangements between the Business and the Seller’s other Affiliates that the Intercompany Contracts replaced as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) provided that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is Seller may, with the ten (10) largest customers consent of Purchaser, not to be unreasonably withheld, amend the Company Intercompany Contracts between the date hereof and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable Closing to the Company or its Subsidiaries);
(iiiextent necessary for this Section 3.17(d) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariestrue.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except Schedule 3.11 lists (without duplication), with respect to each of the Companies, all contracts and other agreements (or, in the case of oral contracts or agreements, summaries thereof) to which any of the Companies is a party or by, or to which, any of the Companies or any of their assets or properties is bound or subject (such contracts and agreements being "MATERIAL CONTRACTS") of the following types:
(i) as filed as exhibits any advertising, market research and other marketing agreements which contain firm commitments by any of the Companies to make annual payments in excess of $25,000 in any calendar year and which is not terminable on notice of ninety (90) days or less without the Company SEC Documents, payment of any termination fee or similar payment;
(ii) for this Agreement and the any employment, severance, non-competition, stock option agreement, restricted stock agreement, consulting or other agreements entered into in connection with any current or former stockholder, director, officer, sales associate, consultant or employee of any of the transactions contemplated hereby and (iii) for Company Employee PlansCompanies, under which any of the Companies has any material obligation as of the date hereof, neither the Company nor any Subsidiary of the Company is a party to or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding including any non-disclosure agreements, data processing agreements, purchase orders or statements competition agreements executed in favor of work or invoices entered into any of the Companies; in each case (other than independent contractor agreements with sales associates substantially in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiariesform attached hereto as Schedule 3.11(a)(ii);
). (iii) that is with the ten any agreements (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(viA) relating to the disposition Indebtedness, interest rate swap or acquisition of any businesshedging arrangements, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant sale and leaseback transactions or other provision limiting in any material respect similar financing transactions or (B) restricting the ability of the Company or any Subsidiary of the Company Companies to compete incur Indebtedness or engage in make any line of business loan or to compete with any Person in any geographic areaadvance or own, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessoperate, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assetsany assets owned by any of the Companies;
(iii) any agreements (A) relating to Indebtedness, rights interest rate swap or properties hedging arrangements, sale and leaseback transactions or other similar financing transactions or (DB) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation restricting the ability of any of the Company and its SubsidiariesCompanies to incur Indebtedness or make any loan or advance or own, operate, sell, transfer, pledge or otherwise dispose of any assets owned by any of the Companies;
(iv) any agreements with any Governmental Authority except those entered into in each case, that is the ordinary course of business which are not material to any of the Company Companies;
(v) any agreements relating to the purchasing of goods by, or the furnishing of services to, any of the Companies (A) requiring payments by the Companies in excess of $25,000 in any calendar year and its Subsidiaries(B) which are not terminable on notice of ninety (90) days or less without the payment of any termination fee or similar payment;
(vi) any contracts, taken as a wholeagreements and other arrangements for the furnishing of services by any of the Companies in exchange for payments in excess of $25,000 in any calendar year and which are not terminable on notice of ninety (90) days or less without the payment of any termination fee or similar payment;
(vii) any agreements (including settlement agreements and consent agreements) pursuant to which any of the Companies licenses the right to use any Intellectual Property to any Person or from any Person (other than off-the-shelf applications) or pursuant to which any Person has the right to acquire rights in Intellectual Property from any of the Companies;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, confidentiality agreements entered into by any of the Company or Companies during the period commencing two (2) years prior to the date of this Agreement pursuant to which any Subsidiary of the Company, or Companies was restricted from providing information to third parties and any guarantee by the Company or of its Subsidiaries agreements pursuant to which any of the obligations of Companies has agreed to provide any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and information regarding any of its wholly-owned Subsidiaries or between or among listings to any wholly-owned Subsidiaries of the Company)third party;
(ix) any hedgingshareholder, swap, derivative, voting trust or similar Contractagreements relating to the Business or any of the Companies to which any of the Companies or the Seller (or any Affiliate thereof) is a party and any joint venture, partnership or similar organizational documents or agreements to which any of the Companies is a party;
(x) that is a license (any agreements relating to the origination or a covenantbrokering of mortgage loans or relating to the provision of mortgage, consent escrow or title services by any of the Companies or relating to the purchase by any of the Companies of property pursuant to any guaranteed sales or other rights in or to use Intellectual Property) granted by the Company similar programs or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholesettlement services;
(xi) that is a license (or a covenant, consent or other rights in or any Leases and any lease agreement with respect to use Intellectual Property) of Third Party Rights granted to the Company or personal property which requires any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant Companies to which the Company or any Subsidiary made make annual payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or 25,000 and which is not terminable upon notice of ninety (C90) that is otherwise material to days or less without the Company and its Subsidiaries taken as a wholepayment of any termination fee or similar payment;
(xii) any agreements that is a Company Real Property Lease with remaining obligations limit or purport to limit the ability of any of the Companies or any transferee of the Shares to compete in excess any business or to acquire, own, operate, sell, transfer, pledge or otherwise dispose of $1,000,000any assets or hire or solicit for employment any person;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or all agreements between any of its Subsidiaries recognized revenues the Companies, on the one hand, and any current or former shareholder, director, officer or other Affiliate of any of the Companies, on the other hand; and
(xiv) all other agreements, contracts or commitments which cannot be terminated upon notice of ninety (90) days or less and will require payments by any of the Companies of an amount in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with 25,000 in any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariescalendar year.
(b) Each Material Contract of the type described above in Section 4.15(a)is a legal, whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company obligation of, and enforceable against, one or the applicable Subsidiary more of the Company, as the case may beCompanies, and, to the Knowledge knowledge of the CompanySeller, each the other party parties thereto, and (B) is in full force and effect, except (i) as may be limited by effect subject to bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and or other similar Applicable Law affecting laws relating to creditors’ ' rights generally and by to general principles of equity equity. The sales of the Shares and (ii) as would the Mortgage Shares pursuant to this Agreement will not, individually by themselves together with the transactions contemplated hereby and by the Related Agreements, give any Person the right to terminate or adversely modify any Material Contract. The Companies are not (and with the giving of notice or lapse of time would not be) in the aggregatematerial breach of, reasonably be expected to have a Company or default under, any Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, Contract and, to the Knowledge knowledge of the CompanySeller, none of the no other parties party thereto have, violated any provision is in breach of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge . None of the Company, neither the Company nor any Subsidiary of the Company Companies has received written notice of that any of party to a Material Contract intends to terminate such Material Contract prior to the foregoing. To the Knowledge of the Companytermination date specified therein, since February 1or that any other party is in material breach of, 2021or default under, no counterparty to any Material Contract has (A) canceled Contract. True and complete copies of all Material Contracts have been previously delivered or otherwise terminated, or threatened in writing made available to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectPurchaser.
Appears in 1 contract
Sources: Stock Purchase Agreement (St Joe Co)
Material Contracts. (aExcept for the Contracts described in Section 3.1(t) Except (iof the Disclosure Letter, the Leases, the Contracts listed in Section 3.1(x) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Disclosure Letter and the other agreements entered into Employment Contracts listed in connection with the transactions contemplated hereby and (iiiSection 3.1(ff)(viii) for Company Employee Plans, as of the date hereofDisclosure Letter (collectively, the “Material Contracts”), neither the Company Elite nor any Subsidiary of the Purchased Company is a party to or is bound by any Contractby:
(i) that is a “material contract” (as such term is defined any continuing Contract involving the performance of services, delivery of goods or materials, or payments to or by one or more of Elite and the Purchased Companies, of an amount or value in Item 601(b)(10) excess of Regulation S-K of the Exchange Act)$250,000;
(ii) any Contract involving payments to or by one or more of Elite and the Purchased Companies of an amount or value in excess of $250,000 per year that is expires less than a year after the date of this Agreement, or that cannot be terminated by Elite or a Purchased Company with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)less than 60 days’ notice;
(iii) that is with any trust indenture, mortgage, promissory note, loan agreement or other Contract for the ten (10) largest vendors borrowing of money, any currency exchange, interest rate, commodities or other hedging arrangement or any leasing transaction of the Company and its Subsidiaries during the fiscal year ended January 31type required to be capitalized in accordance with, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding or in accordance with any non-disclosure agreementspending amendments to, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)U.S. GAAP;
(iv) that is a Government Contractany agreement of guarantee, support, indemnification, assumption or endorsement of, or any similar commitment with respect to, the obligations, liabilities (whether accrued, absolute, contingent or otherwise) or Indebtedness of any other Person, other than standard indemnification and similar provisions in any Contract with customers, suppliers, insurers, payors or healthcare providers;
(v) evidencing employee leasing or contracting agreements or any Contract with a capital expenditure for which future payments are required in excess of $5,000,000professional employer organization;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all Contract in respect of the assets of any Person for aggregate consideration in excess of $5,000,000 Intellectual Property or Software owned by, licensed to or used by the Company Elite or any of its Subsidiaries outside of Purchased Company, in each case, other than (A) licenses for generally commercially available, off the ordinary course of business pursuant to which shelf software used by Elite or any Purchased Company; (B) agreements entered into by Elite or any Purchased Company with customers in the Company or its Subsidiaries have material continuing obligationsOrdinary Course; (C) non-exclusive licenses granted in the Ordinary Course;
(vii) containing (A) a covenant any Contract for payment or reimbursement for provision of health care services by an insurance or other provision limiting payor in any material respect the ability excess of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole$250,000 per year;
(viii) relating to or evidencing indebtedness any Contract for borrowed money, debt securities, warrants or other rights to acquire any debt securities, capital expenditures in excess of $250,000 in the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company)aggregate;
(ix) any hedgingconfidentiality, swapsecrecy, derivativenon-disclosure or exclusivity Contract or any Contract limiting the freedom of Elite or any Purchased Company to engage in any line of business, compete with any other Person, solicit any Persons for any purpose, or similar Contractotherwise to freely conduct its business;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) Contract pursuant to which the Company Elite or any Subsidiary received licensing revenues for the fiscal year ended January 31Purchased Company is a lessor of any machinery, 2024 equipment, motor vehicles, office furniture, fixtures or other personal property with a value in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole50,000;
(xi) that is a license (any distributor, sales, advertising, agency or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made manufacturer’s representative Contract with annual payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole250,000;
(xii) that is a Company Real Property Lease with remaining obligations in excess any Contract for the purchase of $1,000,000real property;
(xiii) any Contract with any Affiliate that involves a is not on arms-length terms; and
(xiv) any Contract that is material joint venture, profit sharing, partnership or similar agreement from which to the Company or any of its Subsidiaries recognized revenues Business with annual payments in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries250,000.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plansset forth on Schedule 3.11, as of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to any of the following agreements or is bound by contracts (excluding any Contract:Plan disclosed in Schedule 3.15):
(i) that is collective bargaining agreements or other contracts with any labor union, works council or other labor organization (each, a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange ActCBA”);
(ii) that is with stockholder agreements, investors’ rights agreements, voting agreements, voting trusts, right of first refusal and co-sale agreements, or registration rights agreements;
(iii) agreements under which the ten Company or one of its Subsidiaries has borrowed any money or issued any note, indenture or other evidence of indebtedness or guaranteed liabilities of others (10) largest customers of other than intercompany indebtedness for borrowed money solely among the Company and its Subsidiaries, guarantees of indebtedness for borrowed money of the Company or any of its Subsidiaries, endorsements for the purpose of collection or purchases of equipment or materials made under conditional sales agreements, in each case in the ordinary course of business), in each case, having an outstanding principal amount in excess of $500,000;
(iv) contracts for the purchase or sale of goods or services by or (solely with respect to subclause from any of the Company or its Subsidiaries under which the Company or any of its Subsidiaries expects to receive or pay in excess of $250,000 during the fiscal current calendar year;
(v) each Government Contract awarded to the Company with a period of performance that has not yet expired and for which it is estimated will generate total revenues in excess of $100,000 in any one (1) year ended January 31period (each, 2024 a “Material Government Contract”);
(vi) except as determined based set forth on revenue received Schedule 3.11(vii), contracts relating to any single or series of related capital expenditures by the Company pursuant to which any member of the Company Group has future financial obligations in excess of $250,000;
(vii) contracts under which the Company has made advances or loans to any other Person, except for advances of business expenses of up to $10,000 in the ordinary course of business;
(viii) contracts that restrict, limit or otherwise prohibit the Company from making dividends or distributions to its equityholders;
(ix) contracts granting any Person a material Lien on all or any part of the material assets of the Company or its Subsidiaries, other than Liens which will be released in full at or prior to the Closing and Permitted Liens;
(x) license of any material Intellectual Property (whether granted by or to the Company or any of its Subsidiaries), which license involves payments (by or to the Company or any of its Subsidiaries) in excess of $500,000 per annum and is not terminable by the Company or such customers during such time periodSubsidiary upon notice of sixty (60) days or less for a cost of $500,000 or less (excluding any non-disclosure agreementsother than licenses of commercially available, data processing agreements, purchase orders or statements of work or invoices off‑the‑shelf software and licenses entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iiixi) leases or other agreements under which it is lessee of, or holds or operates any personal property owned by any other party, for which the annual rental exceeds $500,000 that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors not terminable by the Company during or such time periodSubsidiary upon notice of sixty (60) (excluding any non-disclosure agreements, data processing agreements, purchase orders days or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which less for a cost of goods and services is paid $500,000 or payable by the Company)less;
(ivxii) leases or other agreements under which it is lessor of or permits any third party to hold or operate any property, real or personal, for which the annual rental exceeds $500,000 that is not terminable by the Company or such Subsidiary upon notice of sixty (60) days or less for a Government Contractcost of $500,000 or less;
(vxiii) evidencing a capital expenditure for which future payments are required agreement with any director, officer, employee or Contingent Worker that (A) involves aggregate annual compensation in excess of $5,000,000150,000 for such Person; (B) involves any severance, change of control, retention or similar type of payment; or (C) is not terminable by the Company upon less than thirty-one 31 days’ notice;
(vixiv) relating to the disposition agreement (excluding any purchase orders and change orders) with a Key Supplier or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligationsa Key Customer;
(viixv) containing agreements that purport to (A) a covenant limit, curtail or other provision limiting restrict in any material respect the ability of the Company or any Subsidiary of the Company to compete its Subsidiaries from freely engaging or engage competing in any geographical area, market or line of business anywhere in the world, (B) materially restrict the Persons to whom the Company, its Subsidiaries or any of its existing or future Affiliates, including Buyer, may sell products or deliver services, (C) materially restrict the Persons the Company, its Subsidiaries or Affiliates, including Buyer, may hire or solicit for hire, or (D) otherwise materially restrict the Company, its Subsidiaries or Affiliates, including Buyer, from engaging in any aspect of its business;
(xvi) agreements that grant to compete with any Person in any geographic area, other than Company, its Subsidiaries or any customary employee non-solicitation of its existing or no-hire clauses entered into in the ordinary course of businessfuture Affiliates any (A) exclusive license, supply, distribution or other rights, (B) “most favored nation”, “exclusivity” or similar provisionsrights, (C) a right rights of first refusal or right refusal, rights of first offer negotiation or similar right that limits rights or (D) exclusive rights to purchase any of the ability of Company’s or its Subsidiaries’ products or services;
(xvii) distributor, reseller, sales representative, marketing or advertising contracts;
(xviii) agreements relating to any acquisition or disposition by the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of any assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating any merger, consolidation or similar business combination transaction pursuant to disposition, voting or dividends with respect to any equity securities of which the Company or any of its Subsidiaries has (A) any unfulfilled obligation to pay any purchase price thereunder in excess of $500,000 or (B) any deferred purchase price, “earn‑out”, purchase price adjustment or similar contingent purchase price payment obligation;
(xix) agreements that involves any take‑or‑pay or requirements arrangement other than in the ordinary course of business;
(xx) agreements relating to any joint venture, partner or similar agreement, including any agreement involving a sharing of the profits, losses, costs or liability of the Company or its Subsidiaries with any other Person;
(xxi) agreements involving any resolution or settlement of any actual or threatened Proceeding involving the Company or its Subsidiaries with outstanding payment obligations of the Company or its Subsidiaries in excess of $100,000 or any material ongoing requirements or restrictions on the Company or its Subsidiaries;
(xxii) agreements that provide for any material price reductions, or any credit note or credit memorandum outside of the ordinary course of business; or
(xvixxiii) is with an affiliate or other Person that would be required agreement in writing to be disclosed under Item 404 enter into any of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiariesforegoing.
(b) Each Contract of the type described above agreements listed or required to be listed on Schedule 3.11 (the “Material Contracts”) and each of the Leases is in Section 4.15(a)full force and effect and is a valid, whether or not set forth in Section 4.15(a) binding and enforceable obligation of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may beits Subsidiaries, and, to the Knowledge knowledge of the Company, each of the other party parties thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of its Subsidiaries, as applicable, is in material default (with or without notice or lapse of time or both), or is alleged in writing by the Company hascounterparty thereto to have breached or to be in material default, under any Lease or any Material Contract, and, to the Knowledge knowledge of the Company, none of the other parties thereto have, violated any provision of, party to each Lease or committed or failed to perform any act under, and no event or condition exists, which each Material Contract is not in material default (with or without notice, notice or lapse of time time) thereunder. The Company has made available to Buyer complete and correct copies of all Material Contracts and all Leases, together with all modifications, amendments and supplements thereto. None of the Material Contracts or both) would constitute a breach any of the Leases has been cancelled or default under, the provisions of any Material Contract, otherwise terminated (except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, expirations pursuant to the Knowledge of terms thereof and terminations requested by the Company), and neither the Company nor any Subsidiary of the Company its Subsidiaries has received any written notice of from any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that Person regarding any such counterparty presently engages in cancellation or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effecttermination.
Appears in 1 contract
Material Contracts. (a) Except (iSection 4.10(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, Seller Disclosure Letter sets forth a list as of the date hereof, neither the Company nor any Subsidiary of this Agreement of each Contract to which the Company is a party to or by which it is bound by any Contractotherwise bound:
(i) that is a “material contract” for the purchase, sale or lease (whether as such term is defined in Item 601(b)(10lessor or lessee) of Regulation S-K of the Exchange Act)real property or any option to purchase or sell real property;
(ii) that is with for capital expenditures and purchase of associated materials of more than $50,000 for any project or series of related projects then ongoing (or groups of related Contracts therefor);
(iii) providing for the ten acquisition or disposition of any assets, in each case involving more than $25,000;
(10iv) largest customers related to the licensing of Third Party Intellectual Property, other than commercially available software licensed under a shrink-wrap or click-through license agreement, material to the operation of the Business as presently conducted;
(v) relating to Indebtedness of the Company;
(vi) limiting the ability of the Company to engage in any line of business or compete with any Person;
(vii) between the Company and any of the Company’s Affiliates or Affiliated Persons;
(viii) with any (i) current officer, manager or employee of the Company including agreements relating to the payment of Stay Bonuses or (ii) former officer, manager or employee of the Company for which the Company has continued obligations;
(ix) granting or evidencing a Lien (other than Permitted Encumbrances) on any assets owned by the Company and used in the Business;
(x) involving a loan or advance to, or investment in, any Person, other than in the ordinary course of business;
(xi) under which any Person guarantees Indebtedness of the Company;
(xii) that by its Subsidiaries during terms (A) calls for aggregate payments or receipt by the fiscal Company under such Contract of more than $25,000 on an annual basis or which Seller or the Company reasonably anticipates will involve the payment or receipt by the Company of more than $25,000 on an annual basis and (B)(1) extends beyond the one year ended January 31anniversary date of this Agreement, 2024 or (as determined based on revenue received from such customers during such time period2) cannot be terminated with less than 90 days’ notice; and
(excluding xiii) creating a joint venture, limited liability company or partnership with any non-disclosure agreements, data processing agreements, Person.
(b) Except for purchase orders or statements of work or invoices entered into in the ordinary course of business, copies of each Contract required to be listed in Section 4.10(a) of the Seller Disclosure Letter or each contract entered into after the date of this Agreement of the type described in Section 4.10(a)(each, a “Material Contract”) have been or, in the case of Material Contracts entered into after the date of this Agreement, will be made available to Buyer. Each Material Contract is valid and binding upon the Company and, to Seller’s Knowledge, on all other similar Contracts that are ancillary to Contracts pursuant to which revenue parties thereto in accordance with its terms. To Seller’s Knowledge, each Material Contract is paid or payable in full force and effect with regard to the Company Company, and there is no actual, alleged or its Subsidiaries);
(iii) that is with the ten (10) largest vendors threatened material breach or violation of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors or default by the Company during such time period) (excluding under any non-disclosure agreementsof the Material Contracts. To Seller’s Knowledge, data processing agreementsthere is no current or threatened breach, purchase orders violation of or statements default by any other Person under any of work or invoices entered into the Material Contracts. The Company is, as of the date of this Agreement, not renegotiating any of the Material Contracts, except in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Sources: Interest Purchase Agreement (Full House Resorts Inc)
Material Contracts. (aExcept as expressly disclosed in Section 1(h) Except (i) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansPerfection Certificate, as of the date hereof, neither the Company nor any Subsidiary of the Company Closing Date no Loan Party is (a) a party to any contract which has had or is bound by any Contract:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not could reasonably be expected to have a Material Adverse EffectEffect or (b) in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (x) any contract to which it is a party or by which any of its assets or properties is bound, which default, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or result in liabilities in excess of $200,000 or (y) any Material Contract. Except for the contracts and other agreements listed in Section 1(h) of the Perfection Certificate, no Loan Party is party, as of the Closing Date, to any (i) collective bargaining, works council, shop, enterprise or recognition agreement or other Contract with any Union, (ii) any employment agreement, (iii) contract relating to (A) Indebtedness, (B) the PPP Loan or (C) the mortgaging, pledging or otherwise placing of an Lien (other than Permitted Liens) on any Loan Party’s assets, (iv) lease or agreement under which it is the lessee of, or holds or operates any personal property owned by any other party, or lease or agreement under which it is the lessor of or permits any third party to hold or operate any Loan Party property, real or personal, (v) contract, other than purchase orders entered into in the Ordinary Course of Business, (A) with the twenty-five (25) customers and twenty-five (25) suppliers/vendors of the Loan Parties that have purchased from or sold to, as applicable, the Loan Parties the most products or services (based upon consideration received/paid by the Loan Parties) since January 1, 2019, (B) for the purchase or sale of materials, supplies, merchandise, equipment, parts or other property or services with other customers or suppliers requiring aggregate future payments in excess of $10,000, or (C) any guaranty of any obligation described in clauses (A) and (B), (vi) contract for capital expenditures or the acquisition or construction of fixed assets for the benefit and use of the Loan Parties, the performance of which involves unpaid commitments or liabilities in excess of $50,000, (vii) contract (A) for the acquisition (by merger or otherwise) of any business or securities of another Person or all or substantially all of the of the assets of another Person or (B) for the disposition of the assets or of any business enterprise of any Loan Party other than dispositions of inventory and products of the Loan Parties in the Ordinary Course of Business, in each case that is the source of any surviving rights, obligations or other provisions, (viii) license, sublicense, consent to use agreement, settlement, coexistence agreement, covenants not to ▇▇▇, permission or other contract pursuant to which a Loan Party grants rights to any third party or receives a grant of rights from any third party to use any Intellectual Property material to the operation of the business of a Loan Party, other than agreements relating to off-the-shelf commercially available software available for an annual or one time license fee of less than $10,000 in the aggregate, (ix) contract that requires a Loan Party to purchase its total requirements of any product or service from a third party or that contain “take or pay” provisions, (x) material broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting or advertising contract, (xi) contract with any Governmental Authority, (xii) contract that limits the ability of a Loan Party to compete in any line of business or with any Person or in any geographic area or during any period of time, (xiii) contract that provides for any joint venture, partnership or similar arrangement by the Company; or any other contract involving aggregate consideration in excess of $50,000 and which, in each case, cannot be cancelled by the Loan Party without penalty or without more than 90 days’ notice. (each such contract and agreement, described in the preceding clauses (i) to (xiii), a "Material Contract"). Each Material Contract listed on Schedule 7.18 is in full force and effect (except to the extent terminated after the Closing Date) and there are no events of defaults thereunder or any event which with notice or passage of time, or both, would constitute a material event of default thereunder.
Appears in 1 contract
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereof, except as set forth on Schedule 4.18 of the Company Disclosure Schedule or disclosed in the Recent Company SEC Documents, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(i) that is a “material contract” (as such term is defined any Contract which contains restrictions with respect to payment of dividends or any other distribution in Item 601(b)(10) of Regulation S-K respect of the Exchange Act)capital stock or other equity interests of the Company or any of its Subsidiaries;
(ii) that is with the ten any Contract relating to development, construction, capital expenditures or purchases of material, supplies, equipment or other assets or properties (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, other than purchase orders or statements of work or invoices entered into for such items in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future each case requiring aggregate payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside in excess of $2,000,000 during their remaining term following the Closing Date;
(iii) any Contract relating to (A) Indebtedness of the Company or any of its Subsidiaries in excess of $1,500,000, (B) any guarantee or assumption of other obligations or reimbursement of any maker of a letter of credit except for agreements entered into in the ordinary course of business pursuant consistent with past practice which agreements relate to obligations which do not exceed $1,500,000 in the Company or its Subsidiaries have material continuing obligationsaggregate for all such agreements;
(viiiv) containing (A) a covenant or other provision any Contract limiting in any material respect the ability of the Company or any Subsidiary of its Subsidiaries to engage in the Business or to compete in such Business with any Person;
(v) any confidentiality agreements entered into by the Company with a Third Party since January 1, 2004 relating to any actual or potential business combination, merger, sale of the Company, a sale or other divestiture in a single or series of related transactions of more than 25% of the Company’s capital stock, assets or operations, or any other transaction that would reasonably be expected to result in a change of control of the Company (each a “Third Party Confidentiality Agreement”);
(vi) any hedging agreement or other financial agreement or arrangement designed to compete protect the Company or engage its Subsidiaries against fluctuations in commodities prices or exchange rates;
(vii) any line Contract or executed binding letter of intent involving the future disposition or acquisition of assets or Properties, or any merger, consolidation or similar business combination transaction;
(viii) any Contract involving any joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, joint development or similar arrangement (other than Contracts with respect to compete with Indebtedness), in each case involving aggregate payments or obligations by the Company or any Person of its Subsidiaries in excess of $500,000;
(ix) any geographic areaContract involving any resolution or settlement of any actual or threatened litigation, arbitration, claim or other dispute which has not been fully performed, other than than, in each case, any customary employee non-solicitation or no-hire clauses such Contracts concerning the routine collection of debts entered into in the ordinary course of businessbusiness and other than, (B) “most favored nation”in each case, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of providing for payments under any such Contract by the Company or any of its Subsidiaries to sellin an amount less than $75,000;
(x) other than the Articles of Incorporation, transferthe By-Laws or applicable insurance policies, pledge or otherwise dispose any Contract providing for continuing indemnification of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation any of the Company and its SubsidiariesCompany’s directors, officers or employees (except, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viii) relating to for reimbursement of employment related costs or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers expenses in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholecourse);
(xi) that is a license (or a covenant, consent or other rights in or any management agreement to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues is a party as manager;
(xii) any guarantee of third party obligations by the Company or any of its Subsidiaries;
(xiii) any lease for real property in excess which the amount of payments which the Company is required to make on an annual basis exceeds $1,000,000 during the fiscal year ended January 31, 2024100,000;
(xiv) that is a settlementany Contract with an accounting firm, conciliation consultant or similar Contract (x) advisor related to compliance with any Governmental Authority Legal Requirements of the Securities and Exchange Commission or other jurisdictional equivalents thereto;
(xv) any Contract entered into since February 1, 2021, outside of the ordinary course of business (y) including any lease or sublease to which would require the Company or any of its Subsidiaries is party as lessor or tenant outside of the ordinary course of business) not disclosed pursuant to pay consideration of more than $1,000,000 after the date any other clause of this Agreement Section 4.18 or (z) that subjects involving payments or obligations in excess of $200,000 by the Company or any of its Subsidiaries which are not terminable by the Company or its Subsidiaries without penalty or premium on sixty days prior notice; The foregoing Contracts to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of which the Company or any of its Subsidiaries is a party or relating are bound are collectively referred to dispositionherein as the “Company Material Contracts.” Notwithstanding anything above, voting in the case of clauses (ii), (iii), (vi), (vii), (viii), (xi), and (xii), Company Material Contracts shall not include any Contract that (1) is terminable upon less than 60-days notice without penalty or dividends with respect premium, (2) will be fully satisfied at or prior to any equity securities of the Closing or (3) provides for aggregate payments by the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 Subsidiaries of Regulation S-K promulgated under less than $200,000 during the Exchange Act, other than any remaining term of such Contract solely among following the Company and its wholly-owned SubsidiariesClosing Date.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, its Subsidiaries are in breach or default and, to the Knowledge Company’s Knowledge, no other party to any of the Company, none of the other parties thereto have, violated any provision of, Company Material Contracts is in breach or committed or failed to perform any act under, default (and no event has occurred which with notice or condition exists, which (with or without notice, the lapse of time or both) both would constitute a breach default or violation) under any of or default under, the provisions of any Company Material ContractContracts, except in each case for those violations, acts (or failures to act) and such defaults which, individually or in the aggregate, would not be reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effect.
Appears in 1 contract
Material Contracts. (a) Except (ias set forth in Section 2.17(a)(i) as filed as exhibits to through Section 2.17(a)(xix) of the Disclosure Schedule, the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as is not a party to or otherwise bound by any of the date hereof, neither the Company nor any Subsidiary of following Contracts (with such Contracts to which the Company is a party to or is otherwise bound by any Contract:being referred to herein as the “Material Contracts”):
(i) any Contract (or group of related Contracts) that involved expenditures or guaranteed receipts by the Company of more than $10,000 the last fiscal year or is a “material contract” (as such term is defined expected to involve expenditures or guaranteed receipts by the Company of more than $10,000 in Item 601(b)(10) of Regulation S-K of the Exchange Act)current fiscal year;
(ii) that is any Contract with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders Top Customer or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)Top Supplier;
(iii) that is with any Contract relating to the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors acquisition or disposition by the Company during of any operating business or material assets, including any such time period) Contract under which the Company has any executory covenants or indemnification or other obligations or rights (excluding any non-disclosure agreements, data processing agreements, purchase orders including put or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Companycall options);
(iv) that (A) any Contract relating to indebtedness or providing for the creation of or granting any Lien upon any of the material properties or assets of the Company, (B) any Contract (1) relating to any loan or advance to any Person which is a Government Contractoutstanding as of the date hereof (other than immaterial advances to employees in the ordinary course of business consistent with past practice) or (2) obligating or committing the Company to make any such loans or advances, or (C) any Contract whereby the Company holds cash in escrow;
(v) evidencing a capital expenditure for which future payments are required in excess any Contract (A) relating to the issuance or sale of $5,000,000any Equity Interests of the Company by the Company to any Person; (B) relating to the acquisition, issuance, voting, registration, sale, or transfer of any Equity Interests of the Company; (C) providing any Person with any preemptive right, right of participation, right of maintenance or similar right with respect to any Equity Interests of the Company; or (D) providing the Company with any right of first refusal with respect to, or right to repurchase, redeem, put or call, any Equity Interests of the Company;
(vi) relating (A) any stockholder, common law or statutory partnership, joint venture, limited liability company, operating or similar entity governance Contract; (B) any Contract creating or purporting to create any partnership or joint venture or any sharing of profits or losses by the Company with any third party; or (C) any Contract that provides for “earn-outs” or other contingent payments by or to the disposition Company;
(vii) any Contract with any Governmental Authority;
(viii) any Contract (A) containing covenants restricting or acquisition purporting to restrict competition which, in either case, have, would have or purport to have the effect of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by prohibiting the Company or any of its Subsidiaries outside of Affiliates (including the ordinary course of Buyer and its Affiliates after the Closing) from engaging in any business pursuant to which the Company or its Subsidiaries have material continuing obligations;
activity in any product, product application, market or geographic area or other jurisdiction; (viiB) containing (A) a covenant covenants prohibiting or other provision limiting in any material respect the ability of the Company or any Subsidiary right of the Company to compete make, sell or engage distribute any products or services; (C) in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in which the ordinary course of business, (B) “most favored nation”, Company has granted “exclusivity” or that requires the Company to deal exclusively with, any customer, supplier, distributor, contractor or other Person; (D) that includes minimum purchase conditions or other similar provisionsrequirements; (E) containing a “most-favored-nation,” best pricing or other similar term or provision by which another party to such Contract or any other Person is, or could become, entitled to any benefit, right or privilege which, under the terms of such Contract, must be at least as favorable to such party as those offered to another Person; or (CF) containing any “non-solicitation” or “no-hire” provisions or covenants running in favor of another Person;
(ix) any Contract that contains a put, call, right of first refusal or right of first offer negotiation, right of first offer, redemption, repurchase or similar right that limits the ability of pursuant to which the Company would be required to, or any of its Subsidiaries to have the option or right to, purchase or sell, transferas applicable, pledge or otherwise dispose any Equity Interests, businesses, lines of assetsbusiness, rights or properties or (D) a minimum purchasedivisions, minimum volumejoint ventures, “earnout” partnerships or other contingent, deferred or fixed payment obligation assets of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a wholeany Person;
(viiix) relating any Contract involving a sales agent, representative, distributor, reseller, middleman, marketer, broker, franchisor or similar Person who is entitled to receive commissions, fees or evidencing indebtedness for borrowed money, debt securities, warrants markups related to the provision or other rights to acquire any debt securities, resale of the Company good or any Subsidiary services of the Company;
(xi) any Contract involving any settlement of any actual or threatened Action involving the Company;
(xii) any Contract for capital expenditures or the acquisition of materials, supplies or fixed assets, other than purchase orders for inventories or supplies in the ordinary course of business consistent with past practice;
(xiii) any Contract under which the Company is a lessee of, or holds or operates, any guarantee machinery, equipment, vehicle or other tangible personal property owned by a third party;
(xiv) any Contract pursuant to which the Company is granted a lease in, sublease in or of its Subsidiaries the right to use or occupy any real property, including each of the obligations of Leases;
(xv) any Person (in each caseContract that relates to employment, excludingcompensation, for the avoidance of doubt, intercompany loans severance or consulting between the Company and any of its wholly-owned Subsidiaries officer, employee, Contingent Worker or between or among any wholly-owned Subsidiaries agent of the Company)Company who is entitled to an annual compensation in excess of $10,000 per fiscal year or whose employment, service or engagement with the Company is not terminable at-will without penalty;
(ixxvi) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or Contract with respect to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company is a licensee or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, licensor (other than nonContracts relating to unmodified, commercially available off-exclusive the-shelf software, or licenses granted to customers in the ordinary course of business);
(xvii) any Contract that is a Related Party Contract;
(xviii) any Contract guaranteeing any material liability or obligation of a third Person (other than commercial indemnities, and/or warranties or other guarantees offered in the ordinary course of business); or
(Cxix) any Contract not listed in clauses (i) through (xviii) of this Section 2.17(a) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary business of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesCompany.
(b) The Company has furnished or otherwise made available to the Buyer complete and correct copies of each Material Contract, in each case as amended to and in effect on the date of this Agreement. Each Material Contract is valid, binding and enforceable as to the Company and is in full force and effect (other than due to ordinary expiration of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(aterm thereof) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each is valid, binding and enforceable as to the other party or parties thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a . The Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, andhas not received written or, to the Knowledge of the Company, none oral notice of the other parties thereto haveintention or desire of any party to terminate, violated cancel, not renew or modify any provision of, or committed or failed Material Contract in any material respect. The Company has in all material respects performed all obligations required to perform any act under, and be performed by it under each Material Contract to which it is a party. There is no event or condition exists, which (with or without notice, lapse of time or both) would constitute a material breach of or default under, the provisions of under any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in Contract by the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021or, to the Knowledge of the Company, neither any other party or parties thereto. No event has occurred that with or without the lapse of time or the giving of notice or both would constitute a material breach or default under any Material Contract by the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To or, to the Knowledge of the Company, since February 1any other party or parties thereto. The Company has not received any written or, 2021to the Knowledge of the Company, oral notice regarding any actual violation or breach of, or default under, any Material Contract. There have been no amendments, and there are no amendments contemplated or under discussion with any counterparty, with respect to any Material Contract in connection with COVID-19. No counterparty to any Material Contract has (A) canceled or otherwise terminateddelivered notice to the Company, or threatened in writing to cancel or otherwise to terminate, its relationship with and the Company has not received any notice, contact or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that communication from any such counterparty, requesting an amendment to such Material Contract or regarding such party’s inability to perform any portion of such Material Contract as a result of COVID-19, force majeure or otherwise. The Company has not delivered notice to or contacted any counterparty presently engages in to any Material Contract requesting an amendment to such Material Contract or presently conducts with regarding the inability of the Company and its Subsidiaries other thanto perform any portion of such Material Contract as a result of COVID-19, in each case, as would not reasonably be expected to have a Material Adverse Effectforce majeure or otherwise.
Appears in 1 contract
Material Contracts. (a) Except (iSection 4.17(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement Disclosure Schedule contains an accurate and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Planscomplete list, as of the date hereof, neither of the following Contracts (excluding Company nor any Subsidiary of Employee Benefit Plans) to which the Company is a party to or by which it is bound as of the date hereof (each such Contract, together with each Contract required to be filed by any Contract:
(i) that is the Company as a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);SEC) a “Material Contract”):
(iii) that is with each Contract (1) materially limiting the ten (10) largest customers freedom or right of the Company to engage in any line of business or compete with any other Person in any geographic area; (2) containing any “most favored nations” terms and its Subsidiaries during conditions (including with respect to pricing) or exclusivity obligations; (3) granting any right of first refusal, right of first offer, right of negotiation or similar right with respect to any material assets or business of the fiscal year ended January 31 Company or (4) containing any other term, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders condition or statements of work clause that individually or invoices entered into in the ordinary course of businessaggregate, and other similar Contracts that are ancillary limits or purports to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting limit in any material respect the ability of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic areaown, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of businessoperate, (B) “most favored nation”manufacture, “exclusivity” or similar provisionssell, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to selldistribute, transfer, pledge or otherwise dispose of assetsany material assets or business of the Company;
(ii) each Contract that provides for indemnification (or reimbursement or advancement of legal fees or expenses) of any current or former officer, rights director or properties employee of the Company;
(iii) each Lease under which the Company leases, subleases, licenses or sublicenses any real property (Dwhether as lessor or lessee);
(iv) a minimum purchaseeach Contract not otherwise disclosed pursuant to this Section 4.17(a) requiring payment by or to the Company of more than an aggregate of $500,000 for the year ended December 31, minimum volume2023;
(v) each Contract that constitutes any acquisition or divestiture Contract that contains representations, covenants, indemnities or other obligations (including “earnout” or other contingentcontingent payment obligations) that would reasonably be expected to result in the receipt or making of future payments in excess of $250,000;
(vi) each Contract for any joint venture, deferred partnership, strategic alliance, collaboration, material research or fixed payment obligation of material development project or similar arrangement;
(vii) each Contract relating to the Company and its Subsidiaries, in each case, Product that is material to the Company’s business and in each case that relates to the research, testing, clinical trial, development, commercialization, manufacture, marketing, importation, exportation, sale, distribution, or supply of the Company and its Subsidiaries, taken as a wholeProduct;
(viii) relating each Contract (other than trade debt or letters of credit incurred in the ordinary course of business consistent with past practice and the documentation executed in connection with the Bridge Loan) related to or evidencing indebtedness Indebtedness for borrowed money, debt securities, warrants money or other rights to acquire any debt securities, guarantees thereof or the granting of Liens over the property or assets of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Companyother than Permitted Liens);
(ix) each Contract under which the Company has, directly or indirectly, made any hedgingloan, swap, derivativeextension of credit or capital contribution to, or similar Contractother investment in, any Person (other than investments in marketable securities in the ordinary course of business consistent with past practice);
(x) that is each Contract containing a license (standstill or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary similar obligation of the Company to Company Intellectual Property a Third Party (A) on an exclusive basis, (B) pursuant to which other than any Contract entered into with other potential bidders in connection with the process involving the sale of the Company or any Subsidiary received licensing revenues for which by their terms will expire upon the fiscal year ended January 31, 2024 in excess public announcement of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeTransactions);
(xi) that is a license each Contract containing continuing obligations or interests involving (or a covenant, consent 1) “milestone” or other rights in similar contingent payments, including upon the achievement of regulatory or to use Intellectual Propertycommercial milestones or (2) payment of Third Party Rights granted to royalties or other amounts calculated based upon sales, revenue, income or similar measure of the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a wholeProduct;
(xii) that is a Company Real Property Lease with remaining obligations each Contract in excess respect of Indebtedness of $1,000,000250,000 or more;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or each Contract with any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024Governmental Authority;
(xiv) that is a settlement, conciliation or similar each Outbound IP License Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);and Inbound IP License Contract; and
(xv) any each stockholders’ agreement’, proxyinvestor rights, voting trust agreement or registration rights agreement rights, tax receivables or similar agreements, arrangements or commitments related Contract or any Contract relating to the exercise of any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends rights with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned SubsidiariesSecurities.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each other party thereto, and (B) in full force and effect, except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither , (i) each of the Material Contracts is legal, valid, binding and in full force and effect and is enforceable in accordance with its terms by the Company nor any Subsidiary of the Company has, and, to the Knowledge knowledge of the Company, none of each other party thereto, subject to the Bankruptcy and Equity Exception; (ii) the Company is not in default under any Material Contract, nor, to the knowledge of the other parties thereto haveCompany, violated does any provision ofcondition exist that, with notice or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) , would constitute a default thereunder by the Company; and (iii) to the knowledge of the Company, no other party to any Material Contract is in material default thereunder, nor does any condition exist that, with notice or lapse of time or both, would constitute a material default thereunder of such other party. As of the date hereof, the Company has not received or given any written notice of termination or cancellation under any Material Contract or received or given any written notice of breach of or default under, the provisions of in any material respect under any Material Contract, except in each case for those violations, acts (or failures which breach has not been cured. The Company has made available to act) Parent accurate and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as complete copies of February 1, 2021, to the Knowledge all of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse EffectContracts.
Appears in 1 contract
Material Contracts. (a) Except (iSection 4.19(a) as filed as exhibits to of the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansDisclosure Schedule sets forth, as of the date hereofof this Agreement, neither a correct and complete list of each of the following Contracts to which the Company nor or any Subsidiary of the Company its Subsidiaries is a party to party, or by which any of their respective properties or assets is bound by any Contractbound:
(i) that is a any “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of promulgated by the Exchange ActSEC) (other than any Company Benefit Plan);
(ii) any Contract that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in imposes any material respect restriction on the ability of the Company right or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge compete with any other Person or otherwise dispose of assets, rights solicit any client or properties or customer;
(Diii) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of any Contract that obligates the Company or its Subsidiaries to conduct business with any third party on a preferential or exclusive basis and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole;
(viiiiv) any Contract relating to Indebtedness (other than intercompany indebtedness owed by the Company or evidencing indebtedness for borrowed moneyany wholly owned Subsidiary to any other wholly owned Subsidiary, debt securities, warrants or other rights by any wholly owned Subsidiary to acquire any debt securities, the Company) of the Company or any Subsidiary of the Company, its Subsidiaries having an outstanding principal amount in excess of $5,000,000 or any guarantee by that grants a Lien (other than a Permitted Lien) on properties or assets of the Company or any of its Subsidiaries of the obligations of Subsidiaries;
(v) any Person Contract with respect to an interest, rate, currency or other swap or derivative transaction (in each case, excluding, for the avoidance of doubt, intercompany loans other than those between the Company and its Subsidiaries) with a fair value in excess of $5,000,000;
(vi) any Contract that grants any right of first refusal, right of first offer or similar right with respect to any material assets, rights or properties of the Company or its wholly-Subsidiaries;
(vii) any Contract entered into on or after January 1, 2019 that provides for the acquisition or disposition of any assets (other than acquisitions or dispositions of sale in the ordinary course of business) or business (whether by merger, sale of stock, sale of assets or otherwise) or capital stock or other equity interests of any Person, and with any outstanding obligations as of the date of this Agreement, in each case with a value in excess of $5,000,000;
(viii) any material joint venture, partnership or limited liability company agreement or other similar Contract relating to the formation, creation, operation, management or control of any material joint venture, partnership or limited liability company, other than any such Contract solely between the Company and its wholly owned Subsidiaries or between or among any wholly-the Company’s wholly owned Subsidiaries or any organizational documents of the Company)’s wholly owned Subsidiaries;
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) Contract pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues has continuing “earn-out” or similar obligations that could result in payments in excess of $1,000,000 during 5,000,000 in the fiscal year ended January 31aggregate;
(x) any Contract relating to Program Rights under which it would reasonably be expected that the Company and its Subsidiaries would make annual payments in excess of $4,000,000 per year;
(xi) any network affiliation Contract (or similar Contract) with ABC, 2024CBS, Fox, NBC, CW or MyNetworkTV;
(xii) any Contract that is a material Sharing Agreement and any related option agreement (other than those among the Company and its Subsidiaries);
(xiii) any Contract that is a channel sharing agreement with a third party or parties with respect to the sharing of spectrum for the operation of two (2) or more separately owned television stations;
(xiv) any Contract relating to retransmission or distribution by any MVPD that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require reported more than 25,000 paid subscribers to the Company or any of and its Subsidiaries for September 2021 with respect to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the at least one Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);Station; and
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is Contract with an affiliate or other Person that would be required to be disclosed under Item 404 404(a) of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among . All contracts of the types referred to in clauses (i) through (xv) above are referred to herein as “Company and its wholly-owned SubsidiariesMaterial Contracts.”
(b) Each Contract of Neither the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) Company nor any Subsidiary of the Company Disclosure Schedule, is referred to herein as a “in breach of or default in any respect under the terms of any Company Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, Contract and, to the Knowledge of the Company, each no other party theretoto any Company Material Contract is in breach of or default in any respect under the terms of any Company Material Contract, and (B) no event has occurred or not occurred through the Company’s or any of its Subsidiaries’ action or inaction or, to the Company’s Knowledge, through the action or inaction of any third party, that with notice or the lapse of time or both would constitute a breach of or default or result in full force and effectthe termination of or a right of termination or cancelation thereunder, accelerate the performance or obligations required thereby, or result in the loss of any benefit under the terms of any Company Material Contract, in each case except (i) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would notnot reasonably be expected to have, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision of, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) would constitute a breach of or default under, the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a Company Material Adverse Effect and, as of February 1, 2021, to the Knowledge of the Company, neither the Company nor any Subsidiary of the Company has received written notice of any of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any each Company Material Contract has (Ai) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with is a valid and binding obligation of the Company or any the Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company that is party thereto and its Subsidiaries of each other thanparty thereto, and (ii) is in full force and effect, subject to the Enforceability Exceptions, in each case, case except as would not reasonably be expected to have have, individually or in the aggregate, a Company Material Adverse Effect. There are no disputes pending or, to the Company’s Knowledge, threatened with respect to any Company Material Contract, and neither the Company nor any of its Subsidiaries has received any written notice of the intention of any other party to a Company Material Contract to terminate for default, convenience or otherwise any Company Material Contract, in each case except as would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.
Appears in 1 contract
Sources: Merger Agreement (Tegna Inc)
Material Contracts. (a) Except (i) as filed as exhibits Section 3(l)(i) of the Disclosure Schedule sets forth a list of all Material Contracts (x) by which Uniloy Italy is bound, (y) that is exclusively related to the Company SEC Documentsbusiness, or (iiz) for that is otherwise an Assigned Contract. For purposes of this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee PlansAgreement, as each of the date hereof, neither the Company nor any Subsidiary of the Company is following shall be deemed to constitute a party to or is bound by any “Material Contract”:
(iA) that is a “any contract relating to, and evidence of, indebtedness for borrowed money or the deferred purchase price of property (whether incurred, assumed, guaranteed or secured by any asset) in excess of Twenty Five Thousand Dollars ($25,000) or relating to any Lien on any material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K asset or property of the Exchange ActBusiness other than Permitted Liens;
(B) any contract pursuant to which a Seller Company has agreed to provide funds to or make any loan, capital contribution or other investment in, or assume, guarantee or act as a surety with respect to any Liability of, any Person;
(C) any contract that purports to limit, curtail or restrict the ability of a Seller Company in any material respect to compete in any geographic area or line of business, or to make sales to any Person in any manner;
(D) any executory contract for the sale or purchase of any real property, or for the sale or purchase of any goods or services in an amount in excess of One Hundred Thousand Dollars ($100,000);
(iiE) that is any employment, consulting or services contract with any employee or other Person requiring the ten payment of total annual compensation in excess of One Hundred Thousand Dollars (10$100,000) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries)per annum;
(iiiF) that is with the ten any reselling, sales, marketing, merchandising or distribution contract requiring payments in excess of One Hundred Thousand Dollars (10$100,000) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company)per annum;
(ivG) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) any joint venture or partnership, joint development, merger, asset or share purchase or divestiture contract relating to the disposition Business with currently outstanding rights or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(viiH) containing any contract relating to settlement of any administrative or judicial Proceedings since the date two years prior to the date hereof;
(AI) any contract with a covenant Governmental Body with currently outstanding rights or obligations in excess of One Hundred Thousand Dollars ($100,000) per annum;
(J) any contract relating to capital expenditures in excess of One Hundred Thousand Dollars ($100,000) or the acquisition or disposition of (x) any business (whether by stock or asset purchase, merger or otherwise) or (y) any other asset not in the Ordinary Course of Business entered into since the date two years prior to the date hereof;
(K) any Seller Companies IP Agreements;
(L) any Lease;
(M) any collective bargaining agreement or other provision limiting contract with a labor union, works council or other employee representative;
(N) any contract with a customer or supplier that involves the payment of money in any material respect the ability excess of one and five tenths percent (1.5%) of the Company or any Subsidiary Business’s net revenue for either of the Company to compete fiscal years ending December 31, 2017 or engage in December 31, 2018;
(O) any line contract that includes a power of business attorney or to compete with proxy, whether limited or general, revocable or irrevocable;
(P) any Person in contract that contains any geographic areapreferential pricing provisions, other than any customary employee non-solicitation such as “most favored customer” or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” provisions or similar provisions, or equivalent price or term protection clauses;
(CQ) a right of first refusal or right of first offer any contract that contains any earn-out or similar right that limits the ability provision;
(R) any lease or similar agreement under which any of the Company Seller Companies is lessee of, or holds or uses, any of its Subsidiaries to sellmachinery, transfer, pledge equipment or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” vehicle or other contingenttangible personal property;
(S) any contract requiring the future purchase of supplies, deferred equipment or fixed payment obligation materials by a Seller Company that has an aggregate continuing liability in excess of One Hundred Thousand Dollars ($100,000) per year;
(T) the Company and its Subsidiaries, in each case, India Transferred Contracts; and
(U) any other contract that is material to the Company and its Subsidiaries, Business taken as a whole;
(viii) relating to or evidencing indebtedness for borrowed money, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, or similar Contract;
(x) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basis, (B) pursuant to which the Company or any Subsidiary received licensing revenues for the fiscal year ended January 31, 2024 in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(bii) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all Seller has made available complete and correct copies of the Material Contracts are (A) to Buyer, including all modifications, amendments and supplements thereto. Each of the Material Contracts constitutes the valid and legally binding on the Company or obligation of the applicable Subsidiary of the Company, as the case may be, Seller Company and, to the Knowledge of the CompanySeller’s Knowledge, each other party thereto, enforceable in accordance with its terms (subject to any applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar Laws now or hereafter in effect relating to creditors’ rights generally or to general principles of equity, regardless of whether such enforceability is considered at equity or at Law), and (B) is in full force and effect, except (i. Except as set forth on Section 3(l)(ii) as may be limited by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and (ii) as would not, individually or in the aggregate, reasonably be expected to have a Company Material Adverse Effect. Neither the Company nor any Subsidiary of the Disclosure Schedule, there is no Breach or default under any Material Contract either by the applicable Seller Company has, andor, to Seller’s Knowledge, by any other party thereto, no event has occurred that with the Knowledge giving of notice, the Company, none lapse of the other parties thereto have, violated any provision oftime, or committed or failed to perform any act under, and no event or condition exists, which (with or without notice, lapse of time or both) both would constitute a breach of Breach or default under, thereunder by the provisions of any Material Contract, except in each case for those violations, acts (or failures to act) and defaults which, individually or in the aggregate, would not reasonably be expected to have a applicable Seller Company Material Adverse Effect and, as of February 1, 2021or, to Seller’s Knowledge, any other party, and the Knowledge of the Company, neither the Company nor any Subsidiary of the applicable Seller Company has not received any written notice of a claim of any of the foregoingsuch Breach or default. To the Knowledge of the Company, since February 1, 2021, no counterparty No party to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing to cancel or otherwise to terminate, its relationship with repudiated any provision of such Material Contract. Upon the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, consummation of the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other thanContemplated Transactions and, in respect of the Mexico Deferred Business and the India Deferred Business, upon consummation of the Mexico Deferred Closing and the India Deferred Closing, each caseof the Material Contracts will continue to be legal, as would not reasonably valid binding and enforceable in accordance with its terms and will continue to be expected in full force and effect without penalty (subject to have a Material Adverse Effectany applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar Laws now or hereafter in effect relating to creditors’ rights generally or to general principles of equity, regardless of whether such enforceability is considered at equity or at Law).
Appears in 1 contract
Sources: Asset and Share Purchase Agreement (Milacron Holdings Corp.)
Material Contracts. (a) Except (i) as filed as exhibits to the Company SEC Documents, (ii) for this Agreement and the other agreements entered into in connection with the transactions contemplated hereby and (iii) for Company Employee Plans, as As of the date hereofof this Agreement, neither the Company nor any Subsidiary of the Company its Subsidiaries is a party to or is bound by any Contractby:
(i) that is a “material contract” (as such term is defined in Item 601(b)(10) of Regulation S-K of the Exchange Act);
(ii) that is with the ten (10) largest customers of the Company and its Subsidiaries during the fiscal year ended January 31any limited liability company agreement, 2024 (as determined based on revenue received from such customers during such time period) (excluding any non-disclosure agreementspartnership, data processing agreements, purchase orders joint venture or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary agreement or arrangement with respect to Contracts pursuant to which revenue is paid or payable to the Company or its Subsidiaries);
(iii) that is with the ten (10) largest vendors of the Company and its Subsidiaries during the fiscal year ended January 31, 2024 (as determined based on cost of goods and services paid to such vendors by the Company during such time period) (excluding any non-disclosure agreements, data processing agreements, purchase orders or statements of work or invoices entered into in the ordinary course of business, and other similar Contracts that are ancillary to Contracts pursuant to which cost of goods and services is paid or payable by the Company);
(iv) that is a Government Contract;
(v) evidencing a capital expenditure for which future payments are required in excess of $5,000,000;
(vi) relating to the disposition or acquisition of any business, equity, or all or substantially all of the assets of any Person for aggregate consideration in excess of $5,000,000 by the Company or any of its Subsidiaries outside of the ordinary course of business pursuant to which the Company or its Subsidiaries have material continuing obligations;
(vii) containing (A) a covenant or other provision limiting in any material respect the ability business of the Company or any Subsidiary of the Company to compete or engage in any line of business or to compete with any Person in any geographic area, other than any customary employee non-solicitation or no-hire clauses entered into in the ordinary course of business, (B) “most favored nation”, “exclusivity” or similar provisions, (C) a right of first refusal or right of first offer or similar right that limits the ability of the Company or any of its Subsidiaries to sell, transfer, pledge or otherwise dispose of assets, rights or properties or (D) a minimum purchase, minimum volume, “earnout” or other contingent, deferred or fixed payment obligation of the Company and its Subsidiaries, in each case, that is material to the Company and its Subsidiaries, taken as a whole, other than any such limited liability company, partnership or joint venture that is a wholly-owned Subsidiary of the Company;
(ii) any Contract relating to or evidencing Indebtedness in an amount in excess of $500,000 individually, or $3,000,000 in the aggregate, other than equipment leases entered into in the ordinary course of business that do not exceed $15,000,000 in the aggregate;
(iii) any Contract filed or required to be filed as an exhibit to the Company’s Annual Report on Form 10-K pursuant to Item 601(b)(10) of Regulation S-K promulgated under the Exchange Act or disclosed or required to be disclosed by the Company in a Current Report on Form 8-K, other than Benefit Plans disclosed in Section 5.9 of the Company Disclosure Letter;
(iv) any Contract not terminable on less than ninety (90) days’ notice that purports to limit the right of the Company or its Subsidiaries or any Affiliate of the Company to engage or compete in any material line of business;
(v) any Contract entered into after February 28, 2011, or not yet consummated for the acquisition or disposition, directly or indirectly (by merger or otherwise), of all or substantially all the assets or capital stock or other equity interests of any Person for aggregate consideration under such Contract in excess of $1,000,000 individually, or $5,000,000 in the aggregate;
(vi) any acquisition Contract pursuant to which the Company or any of its Subsidiaries has continuing indemnification, “earn-out” or other contingent payment obligations that could reasonably be expected to exceed $500,000;
(vii) any Contract (A) pursuant to which the Company or its Subsidiaries sources all or a majority of a particular product that is material to the business of the Company and its Subsidiaries, taken as a whole, from one (1) Person and/or such Person’s Affiliates (i.e., a “sole-source” supply Contract) or (B) pursuant to which the Company or its Subsidiaries grants any one (1) Person and/or such Person’s Affiliates the exclusive right to be the sole acquiror of a Company Product;
(viii) relating to or evidencing indebtedness for borrowed moneyany Contract that is a material settlement, debt securities, warrants or other rights to acquire any debt securities, of the Company or any Subsidiary of the Company, or any guarantee by the Company or of its Subsidiaries of the obligations of any Person (in each case, excluding, for the avoidance of doubt, intercompany loans between the Company and any of its wholly-owned Subsidiaries or between or among any wholly-owned Subsidiaries of the Company);
(ix) any hedging, swap, derivative, conciliation or similar Contract;
agreement (xA) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) granted by the Company or with any Subsidiary of the Company to Company Intellectual Property (A) on an exclusive basisGovernmental Entity, (B) pursuant to which the Company or any Subsidiary received licensing revenues for of its Subsidiaries is obligated after the fiscal year ended January 31, 2024 date of this Agreement to pay consideration in excess of $1,000,000, other than non-exclusive licenses granted to customers in the ordinary course of business, and/or or (C) that is would otherwise material to materially limit the Company and its Subsidiaries taken as a whole;
(xi) that is a license (or a covenant, consent or other rights in or to use Intellectual Property) of Third Party Rights granted to the Company or any Subsidiary of the Company (A) on an exclusive basis, (B) on a non-exclusive basis, if pursuant to which the Company or any Subsidiary made payments during the fiscal year ended January 31, 2024 in excess of $1,000,000, and/or (C) that is otherwise material to the Company and its Subsidiaries taken as a whole;
(xii) that is a Company Real Property Lease with remaining obligations in excess of $1,000,000;
(xiii) that involves a material joint venture, profit sharing, partnership or similar agreement from which the Company or any of its Subsidiaries recognized revenues in excess of $1,000,000 during the fiscal year ended January 31, 2024;
(xiv) that is a settlement, conciliation or similar Contract (x) with any Governmental Authority entered into since February 1, 2021, (y) which would require the Company or any of its Subsidiaries to pay consideration of more than $1,000,000 after the date of this Agreement or (z) that subjects the Company or any of its Subsidiaries to any material ongoing requirements or restrictions (other than ordinary course confidentiality requirements or restrictions);
(xv) any stockholders’ agreement, proxy, voting trust agreement or registration rights agreement or similar agreements, arrangements or commitments relating to any equity securities operation of the Company or any of its Subsidiaries or relating to disposition, voting or dividends with respect to any equity securities of the Company or any of its Subsidiaries; (or
(xvi) is with an affiliate or other Person that would be required to be disclosed under Item 404 of Regulation S-K promulgated under the Exchange Act, other than any Contract solely among the Company and its wholly-owned Subsidiaries.
(b) Each Contract of the type described above in Section 4.15(a), whether or not set forth in Section 4.15(a) of the Company Disclosure Schedule, is referred to herein as a “Material Contract.” Except for Material Contracts that have expired or terminated by their terms, all of the Material Contracts are (A) valid and binding on the Company or the applicable Subsidiary of the Company, as the case may be, and, to the Knowledge of the Company, each Parent or any of its other party thereto, Affiliates from and (B) in full force and effect, except (iafter the Merger Closing) as may be limited currently operated;
(ix) any Contract that grants an exclusive license of any material Intellectual Property owned by bankruptcy, insolvency, moratorium and other similar Applicable Law affecting creditors’ rights generally and by general principles of equity and the Company or any Subsidiary to another Person;
(iix) as would notany Contract that, individually or in the aggregate, reasonably be expected would prevent, materially delay or materially impede the Company’s ability to have a Company Material Adverse Effect. Neither consummate the Company nor transactions contemplated by this Agreement; or
(xi) any Subsidiary Contracts containing minimum purchase conditions in excess of $100,000 or requirements or other terms that restrict or limit the purchasing relationships of the Company has, and, to the Knowledge of the Company, none of the other parties thereto have, violated any provision ofor its Subsidiaries, or committed any customer, licensee or failed lessee thereof (the Contracts described in clauses (i) - (xi), together with all exhibits, annexes, addenda and schedules to perform any act undersuch Contracts, and no event being the “Material Contracts”).
(b) Except as prohibited by applicable Law or condition existsapplicable contractual restrictions, which (with or without notice, lapse a copy of time or both) would constitute a breach of or default under, the provisions of any each Material Contract, except in each case for those violations, acts (or failures Contract that is not publicly available has previously been made available to act) and defaults which, individually or in the aggregate, Parent. Except as would not reasonably be expected to have a Company Material Adverse Effect and(i) each Material Contract is a valid and binding agreement of the Company or one of its Subsidiaries, as the case may be, and is in full force and effect and enforceable against the Company or such Subsidiary in accordance with its terms, subject to the Bankruptcy and Equity Exception, (ii) neither the Company nor any of February 1, 2021its Subsidiaries nor, to the Knowledge of the Company, any other party thereto is in default or breach in any material respect under the terms of any Material Contract, nor has the Company or any of its Subsidiaries received Knowledge of the existence of any event or condition which constitutes, or after notice or lapse of time or both, will constitute, a material default on the part of the Company or any Subsidiaries under any Material Contract, (iii) the Company and each of its Subsidiaries, and, to the Knowledge of the Company, any other party thereto, has performed in all material respects all obligations required to be performed by it under each Material Contract, and (iv) neither the Company nor any Subsidiary of the Company has received any written notice of any the termination or cancellation of the foregoing. To the Knowledge of the Company, since February 1, 2021, no counterparty to any Material Contract has (A) canceled or otherwise terminated, or threatened in writing prior to cancel or otherwise to terminate, the end of its relationship with the Company or any Subsidiary (as applicable) or (B) decreased materially or threatened to decrease materially or limit materially, the amount of business that any such counterparty presently engages in or presently conducts with the Company and its Subsidiaries other than, in each case, as would not reasonably be expected to have a Material Adverse Effectterm.
Appears in 1 contract
Sources: Merger Agreement (Immucor Inc)