asset acquisitions - Jackson Walker LLP

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3.14 TAXES .......................................................................................................................823.15 NO MATERIAL ADVERSE CHANGE............................................................................873.19 ABSENCE OF CERTAIN CHANGES AND EVENTS .........................................................943.25 INTELLECTUAL PROPERTY ASSETS...........................................................................963.32 SOLVENCY ..............................................................................................................1063.33 DISCLOSURE ...........................................................................................................1095. COVENANTS OF SELLER PRIOR TO CLOSING ....................................1115.1 ACCESS AND INVESTIGATION..................................................................................1115.2 OPERATION OF THE BUSINESS OF SELLER ..............................................................1145.3 NEGATIVE COVENANT ............................................................................................1165.4 REQUIRED APPROVALS...........................................................................................1175.5 NOTIFICATION ........................................................................................................1185.6 NO NEGOTIATION ...................................................................................................1195.7 BEST EFFORTS ........................................................................................................1205.8 INTERIM FINANCIAL STATEMENTS .........................................................................1205.9 CHANGE OF NAME ..................................................................................................1215.10 PAYMENT OF LIABILITIES.......................................................................................1217. CONDITIONS PRECEDENT TO BUYER'S OBLIGATION TO CLOSE1247.1 ACCURACY OF REPRESENTATIONS .........................................................................1257.2 SELLER’S PERFORMANCE .......................................................................................1307.3 CONSENTS...............................................................................................................1307.4 ADDITIONAL DOCUMENTS ......................................................................................1317.5 NO PROCEEDINGS ...................................................................................................1337.6 NO CONFLICT .........................................................................................................1357.9 GOVERNMENTAL AUTHORIZATIONS.......................................................................1367.10 ENVIRONMENTAL REPORT......................................................................................1367.11 WARN ACT NOTICE PERIODS AND EMPLOYEES......................................................1367.13 FINANCING..............................................................................................................1379. TERMINATION ......................................................................................................1389.1 TERMINATION EVENTS ...........................................................................................1389.2 EFFECT OF TERMINATION.......................................................................................14010. ADDITIONAL COVENANTS .........................................................................14210.1 EMPLOYEES AND EMPLOYEE BENEFITS..................................................................14210.2 PAYMENT OF ALL TAXES RESULTING FROM SALE OF ASSETS BY SELLER.............14510.3 PAYMENT OF OTHER RETAINED LIABILITIES.........................................................14610.4 RESTRICTIONS ON SELLER DISSOLUTION AND DISTRIBUTIONS.............................14610.8 NONCOMPETITION, NONSOLICITATION AND NONDISPARAGEMENT........................14810.11 FURTHER ASSURANCES.......................................................................................15011. INDEMNIFICATION; REMEDIES ..............................................................15111.1 SURVIVAL...............................................................................................................15111.2 INDEMNIFICATION AND REIMBURSEMENT BY SELLER AND SHAREHOLDERS .........15611.3 INDEMNIFICATION AND REIMBURSEMENT BY SELLER -- ENVIRONMENTAL MATTERS16111.4 INDEMNIFICATION AND REIMBURSEMENT BY BUYER .............................................16411.5 LIMITATIONS ON AMOUNT — SELLER AND SHAREHOLDERS.................................1653148166v1- 23 -
11.6 LIMITATIONS ON AMOUNT – BUYER.......................................................................16611.7 TIME LIMITATIONS.................................................................................................16711.8 RIGHT OF SET-OFF; ESCROW .................................................................................16811.9 THIRD PARTY CLAIMS............................................................................................17111.10 PROCEDURE FOR INDEMNIFICATION -- OTHER CLAIMS .....................................17411.11 INDEMNIFICATION IN CASE OF STRICT LIABILITY OR INDEMNITEE NEGLIGENCE17412. CONFIDENTIALITY.........................................................................................17712.1 DEFINITION OF CONFIDENTIAL INFORMATION.......................................................17812.2 RESTRICTED USE OF CONFIDENTIAL INFORMATION ..............................................17912.3 EXCEPTIONS............................................................................................................18012.4 LEGAL PROCEEDINGS.............................................................................................18012.5 RETURN OR DESTRUCTION OF CONFIDENTIAL INFORMATION................................18112.6 ATTORNEY-CLIENT PRIVILEGE ..............................................................................18113. GENERAL PROVISIONS ................................................................................18613.4 JURISDICTION; SERVICE OF PROCESS.....................................................................18613.5 ENFORCEMENT OF AGREEMENT.............................................................................19513.6 WAIVER; REMEDIES CUMULATIVE.........................................................................19613.7 ENTIRE AGREEMENT AND MODIFICATION..............................................................19713.8 DISCLOSURE LETTER..............................................................................................19813.13 GOVERNING LAW................................................................................................1993148166v1- 24 -
Page 1 and 2: ASSET ACQUISITIONS: A ROADMAP TO GE
Page 3 and 4: VIII. SELECTED ASSET PURCHASE AGREE
Page 5 and 6: (B) Introductory matters concerning
Page 7 and 8: on the deemed asset sale, since the
Page 9 and 10: administrative delays in addition t
Page 11 and 12: extended coverage for preclosing oc
Page 13 and 14: IV.SUCCESSOR LIABILITYA. Background
Page 15 and 16: much like a merger. The theory was
Page 17 and 18: essentially the same ingredients wh
Page 19 and 20: 2. Structure of TransactionIf a tra
Page 21 and 22: indemnification. A portion of the p
Page 23 and 24: differing interests in the transact
Page 25: C. Gap Between Signing and ClosingO
Page 29 and 30: AgreementThe parties, intending to
Page 31 and 32: “Breach” -- any breach of, or a
Page 33 and 34: use, voting (in the case of any sec
Page 35 and 36: “Ground Lease” -- any long-term
Page 37 and 38: “Order” -- any order, injunctio
Page 39 and 40: “Part” -- a part or section of
Page 41 and 42: “Seller Contact” -- as defined
Page 43 and 44: COMMENTClauses (v), (vii), (viii) a
Page 45 and 46: parties should always pay close att
Page 47 and 48: consulting services to customers as
Page 49 and 50: diligence analysis (which typically
Page 51 and 52: Course of Business prior to the Eff
Page 53 and 54: uyer to negotiate the indemnificati
Page 55 and 56: 2.5 ALLOCATIONThe Purchase Price sh
Page 57 and 58: satisfaction of some conditions may
Page 59 and 60: (iii) the Escrow Agreement, execute
Page 61 and 62: Once a certified check has been cer
Page 63 and 64: espect to the Real Property and Tan
Page 65 and 66: work papers and other documents and
Page 67 and 68: expressly provide for arbitration i
Page 69 and 70: Closing, the parties shall use Best
Page 71 and 72: Alternatively, the Buyer can elect
Page 73 and 74: 1980s and the Year 2000 representat
Page 75 and 76: (b) Except as set forth in Part 3.2
Page 77 and 78:
clause (iv) of Section 3.2(b), the
Page 79 and 80:
4. recorded agreements or declarati
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audit committee thereof during the
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166 (1991). The buyer is unlikely t
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the happening of which may bring in
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(iii) Consolidated Group. Seller (A
Page 89 and 90:
Certain provisions of Section 3.14
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the circumstances described above,
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was some variation from agreement t
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declared) occurring after the date
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and entering into a commercial deal
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3.25 INTELLECTUAL PROPERTY ASSETS(a
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(ii) All of the registered Copyrigh
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Section 3.25(d) requires disclosure
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the seller has many unregistered tr
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Copyrights: 17 U.S.C. §102(a) prov
Page 109 and 110:
The buyer should also investigate a
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forced to dispose of the assets or
Page 113 and 114:
supplement to the Disclosure Letter
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Property and Tangible Personal Prop
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The seller may want the contract to
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only a right to be conferred with,
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(including, for example, lenders) t
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Section 5.6 is not qualified by a
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offices, and the assets to be trans
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The last significant change in Revi
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Materiality Qualification in Sectio
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“brought down” to the Closing D
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materially inaccurate as of the clo
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indebtedness represented by such no
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Section 7.5 relates only to litigat
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A seller may take the position that
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Buyer shall have obtained on terms
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and (d) have no materiality test. T
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the part of the seller. In lieu of
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enefits and salary and wage structu
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to the sale of any property to the
Page 151 and 152:
prohibits the Buyer from making any
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for stock ownership in a public com
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investigation or assessment) conduc
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sue on the breach, under the common
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should be limited to situations in
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eaches of noncompetition agreements
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third party claims); Edward E. Gill
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allegedly arising from any Hazardou
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process or are to be anticipated fr
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If Buyer would have a claim for ind
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attorneys request that representati
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can, as a practical matter, withhol
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(c) Notwithstanding the foregoing,
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Environmental indemnification often
Page 179 and 180:
North Dakota, and Delaware require
Page 181 and 182:
Because Article 12 assumes that a c
Page 183 and 184:
Section 12.2(a) follows the same ge
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The Disclosing Party is not waiving
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Although the attorney-client privil
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changes hands, whether the attorney
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“Delaware courts have not hesitat
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In deciding whether a jury waiver c
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factors, particularly concern over
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parties shall share equally the fee
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compensated in all cases by monetar
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incorporated into) the terms of the
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(1) The law of the state chosen by
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disputes arising out of that contra
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1989). In Acushnet River, the Unite
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The Court then set forth the factor
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Citizens held itself out to the wor
Page 213 and 214:
Appendix BEXCERPTS FROM BYRON F. EG
Page 215 and 216:
corporation’s assets is not liabl
Page 217 and 218:
the injured party, and who can best
Page 219 and 220:
Over time, some courts have used le
Page 221 and 222:
5. retention of the same name;6. co
Page 223 and 224:
where strict tort liability for def
Page 225 and 226:
In Knapp, 55 in addition to the de
Page 227 and 228:
3. Labor, Employment & Benefits Cas
Page 229 and 230:
5. Contract CasesIn certain instanc
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4. Choice of LawIn transactions whe
Page 233 and 234:
Appendix DACQUISITION OF A DIVISION
Page 235 and 236:
schedule of payables at the date of
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2. Even if buyer’s counsel is com
Page 239 and 240:
name which is material to the value
Page 241 and 242:
EXAMPLE 1SAMPLE DESCRIPTION OF ASSE
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INTRODUCTION TO TRANSITIONAL SERVIC
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1.3 “Fully Allocated Cost” shal
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5. Force Majeure5.1 Seller shall no
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To Buyer:■12. Entire Agreement12.
Page 251 and 252:
SCHEDULE 1.2FIXED PRICE SERVICES PR
Page 253 and 254:
SCHEDULE 1.4HR SERVICESHR Services
Page 255 and 256:
Appendix EHypothetical Scenarios1.I
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— Section 3.29 (no Shareholder ow
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Note that, if Buyer elects to exerc
Page 261 and 262:
damages as a result of the Blocking
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down” certificate expressly state
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The failure to disclose the Blockin
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• Seller received no threat of li
Page 269 and 270:
2. If Buyer proceeds with the asset
Page 271 and 272:
neither strategically significant n
Page 273 and 274:
to the closing date, and Seller wil
Page 275 and 276:
11.2(a) and (f)) Seller may attempt
Page 277 and 278:
pursuant to Section 2.7(a)(ix) expr
Page 279 and 280:
Parent, Parent shall take all such
Page 281 and 282:
(b) The Company shall give prompt n
Page 283 and 284:
stockholders ratified the merger ag
Page 285 and 286:
available to us or our Representati
Page 287 and 288:
Section 5.08. Financial Statements.
Page 289 and 290:
capital contributions to or investm
Page 291 and 292:
The Disclosure Schedule further sta
Page 293 and 294:
construed in light of such disclosu
Page 295 and 296:
and (ii) did not contain any untrue
Page 297 and 298:
the Mergers shall be subject to the
Page 299 and 300:
discount. Enron claims that the onl
Page 301 and 302:
that the primary agencies who assig
Page 303 and 304:
Appendix JIN THE UNITED STATES COUR
Page 305 and 306:
Fina shall indemnify, defend and ho
Page 307 and 308:
. Application of Delaware lawFina h
Page 309 and 310:
provision was signed can the courts
Page 311 and 312:
The sophistication of the contracti
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