busted m&a deals headed for litigation - Jackson Walker LLP

5.2 OPERATION OF THE BUSINESS OF SELLER ................................................................ 123
5.3 NEGATIVE COVENANT................................................................................................ 126
5.4 REQUIRED APPROVALS .............................................................................................. 127
5.5 NOTIFICATION............................................................................................................ 128
5.6 NO NEGOTIATION....................................................................................................... 129
5.7 BEST EFFORTS............................................................................................................ 129
5.8 INTERIM FINANCIAL STATEMENTS............................................................................ 130
5.9 CHANGE OF NAME...................................................................................................... 130
5.10 PAYMENT OF LIABILITIES.......................................................................................... 131
7. CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO
CLOSE............................................................................................................................. 133
7.1 ACCURACY OF REPRESENTATIONS............................................................................ 135
7.2 SELLER’S PERFORMANCE .......................................................................................... 140
7.3 CONSENTS................................................................................................................... 140
7.4 ADDITIONAL DOCUMENTS ......................................................................................... 141
7.5 NO PROCEEDINGS....................................................................................................... 143
7.6 NO CONFLICT ............................................................................................................. 145
7.9 GOVERNMENTAL AUTHORIZATIONS ......................................................................... 146
7.10 ENVIRONMENTAL REPORT......................................................................................... 146
7.11 WARN ACT NOTICE PERIODS AND EMPLOYEES ....................................................... 146
7.13 FINANCING.................................................................................................................. 147
9. TERMINATION.......................................................................................................... 148
9.1 TERMINATION EVENTS............................................................................................... 148
9.2 EFFECT OF TERMINATION.......................................................................................... 150
10. ADDITIONAL COVENANTS............................................................................ 152
10.1 EMPLOYEES AND EMPLOYEE BENEFITS.................................................................... 152
10.2 PAYMENT OF ALL TAXES RESULTING FROM SALE OF ASSETS BY SELLER............. 155
10.3 PAYMENT OF OTHER RETAINED LIABILITIES........................................................... 156
10.4 RESTRICTIONS ON SELLER DISSOLUTION AND DISTRIBUTIONS.............................. 156
10.8 NONCOMPETITION, NONSOLICITATION AND NONDISPARAGEMENT ........................ 158
10.11 FURTHER ASSURANCES.......................................................................................... 160
11. INDEMNIFICATION; REMEDIES ................................................................ 161
11.1 SURVIVAL................................................................................................................... 161
11.2 INDEMNIFICATION AND REIMBURSEMENT BY SELLER AND SHAREHOLDERS ......... 166
11.3 INDEMNIFICATION AND REIMBURSEMENT BY SELLER -- ENVIRONMENTAL
MATTERS .................................................................................................................... 171
11.4 INDEMNIFICATION AND REIMBURSEMENT BY BUYER............................................... 174
11.5 LIMITATIONS ON AMOUNT — SELLER AND SHAREHOLDERS .................................. 175
11.6 LIMITATIONS ON AMOUNT – BUYER.......................................................................... 176
11.7 TIME LIMITATIONS .................................................................................................... 177
11.8 RIGHT OF SET-OFF; ESCROW..................................................................................... 178
11.9 THIRD PARTY CLAIMS ............................................................................................... 181
11.10 PROCEDURE FOR INDEMNIFICATION -- OTHER CLAIMS....................................... 184
11.11 INDEMNIFICATION IN CASE OF STRICT LIABILITY OR INDEMNITEE
NEGLIGENCE .......................................................................................................... 184
4032470v.1
- 23 -