UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 11, 2008
AECOM TECHNOLOGY CORPORATION |
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(Exact name of Registrant as specified in its charter) |
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Delaware |
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1-33447 |
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61-1088522 |
(State or Other Jurisdiction |
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(Commission |
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(I.R.S. Employer |
of Incorporation) |
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File Number) |
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Identification No.) |
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555 South Flower Street, Suite 3700 |
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Registrants telephone number, including area code (213) 593-8000 |
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Not Applicable |
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(Former Name or Former Address, if Changed Since Last Report) |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |
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o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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o Pre-commencement communications pursuant to Rule 14d-(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. |
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Entry into a Material Definitive Agreement. |
On February 11, 2008, AECOM Technology Corporation ( AECOM) entered into a Purchase Agreement (the Purchase Agreement) to acquire substantially all of Earth Tech, Inc. (Earth Tech), a business unit of Tyco International Ltd. (Tyco), for approximately $510 million in cash. Earth Tech provides consulting, engineering, and design, build and operate (DBO) services to water/wastewater, environmental, transportation, and facilities clients globally.
In connection with the transaction contemplated by the Purchase Agreement, AECOM will replace Tyco International Finance S.A. (Seller) on existing parent company guaranties and third party support instruments, such as surety bonds and bank letters of credit, in respect of certain Earth Tech client projects.
After the closing of the Purchase Agreement, AECOM plans to divest certain portions of the Earth Tech business that are not in the consulting, engineering and DBO services areas, and do not otherwise align with AECOMs core business and strategic objectives, but no assurance can be given with respect to the amount, timing and terms of such divestitures. Certain portions of the Earth Tech business operated by Tyco are not being acquired by AECOM as part of this transaction.
The obligations of AECOM and Seller to complete the transactions contemplated by the Purchase Agreement are subject to certain customary closing conditions, including the following: (1) the expiration of any waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and receipt of applicable non-U.S. antitrust approvals; (2) accuracy in all material respects of each partys representations and warranties; (3) material compliance by each party with its obligations and covenants under the Agreement; and (4) the absence of any injunction, decree or order issued by a governmental entity prohibiting the completion of the transaction.
The foregoing description of the Purchase Agreement is qualified in its entirety by the actual terms of the Purchase Agreement, a copy of which is attached as Exhibit 2.1 hereto and is incorporated herein by reference. The Purchase Agreement has been attached to provide investors with information regarding its terms. It is not intended to provide any other factual information about AECOM, Tyco, Earth Tech or Seller or their respective businesses or operations. The assertions embodied in representations and warranties contained in the Purchase Agreement were made for purposes of the Purchase Agreement and are subject to qualifications and limitations agreed to by the respective parties in connection with negotiating the terms of the Purchase Agreement. Moreover, certain representations, warranties and covenants in the Purchase Agreement were used for the purpose of allocating risk among the parties thereto rather than establishing matters as facts. Accordingly, you should not rely on the representations, warranties and covenants in the Purchase Agreement as characterizations of the actual state of facts about AECOM, Tyco, Earth Tech or Seller or their respective businesses or operations.
AECOM issued a press release on February 12, 2008, announcing the execution of the Purchase Agreement. A copy of the press release is included as Exhibit 99.1 to this report.
Item 9.01 |
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Financial Statements and Exhibits. |
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(d) Exhibits |
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2.1 |
Purchase Agreement, dated as of February 11, 2008, by and among AECOM Technology Corporation, Tyco International Finance S.A. and certain other seller parties thereto* |
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99.1 |
Press Release, dated February 12, 2008, entitled AECOM to Acquire Earth Tech from Tyco. |
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* Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. AECOM undertakes to furnish supplementally copies of any of the omitted schedules upon request by the U.S. Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, AECOM has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized.
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AECOM TECHNOLOGY CORPORATION |
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Dated: February 12, 2008 |
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/s/ DAVID Y. GAN |
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David Y. Gan |
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Vice President, Assistant General Counsel |
EXHIBIT INDEX
Exhibit |
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2.1 |
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Purchase Agreement, dated as of February 11, 2008, by and among AECOM Technology Corporation, Tyco International Finance S.A. and certain other seller parties thereto* |
99.1 |
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Press Release, dated February 12, 2008, entitled AECOM to Acquire Earth Tech from Tyco. |
* Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K. AECOM undertakes to furnish supplementally copies of any of the omitted schedules upon request by the U.S. Securities and Exchange Commission.
Exhibit 2.1
PURCHASE AGREEMENT
BY AND AMONG
AECOM TECHNOLOGY CORPORATION,
AS PURCHASER,
TYCO INTERNATIONAL FINANCE S.A.,
AS A SELLER AND PARENT,
AND
THE OTHER SELLERS A PARTY HERETO
DATED AS OF FEBRUARY 11, 2008
TABLE OF CONTENTS
ARTICLE I CERTAIN DEFINITIONS |
1 |
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1.1 |
Certain Defined Terms |
1 |
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1.2 |
Interpretation |
20 |
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ARTICLE II PURCHASE AND SALE OF TARGET SHARES AND PURCHASED ASSETS |
20 |
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2.1 |
Target Shares and Purchased Assets to Be Sold and Purchased at the Closing |
20 |
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2.2 |
Assumption of Liabilities relating to Purchased Assets |
21 |
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2.3 |
Purchase Price |
21 |
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2.4 |
Closing |
21 |
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2.5 |
Closing Date |
21 |
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2.6 |
Purchase Price Adjustments |
21 |
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2.7 |
Allocation of Purchase Price |
26 |
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2.8 |
Withholding |
26 |
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ARTICLE III CONSENTS; INTERCOMPANY ACCOUNTS; CASH |
27 |
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3.1 |
Certain Provisions Regarding Assignments |
27 |
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3.2 |
Seller Settlement of Cash and Intercompany Accounts |
28 |
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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT |
28 |
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4.1 |
Incorporation and Authority of Parent |
28 |
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4.2 |
No Conflict |
29 |
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4.3 |
Consents and Governmental Approvals |
29 |
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4.4 |
Financial Statements |
29 |
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4.5 |
Financial Advisors |
30 |
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ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLERS |
30 |
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5.1 |
Incorporation and Authority of Sellers |
30 |
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5.2 |
Purchased Companies |
31 |
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5.3 |
Capitalization and Subsidiaries |
31 |
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5.4 |
No Conflict |
32 |
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5.5 |
Consents and Governmental Approvals |
32 |
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5.6 |
Litigation |
33 |
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5.7 |
Employee Benefits |
33 |
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5.8 |
Taxes |
36 |
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5.9 |
Absence of Changes |
39 |
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5.10 |
Title to Assets |
39 |
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5.11 |
Real Property |
39 |
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5.12 |
Intellectual Property |
40 |
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5.13 |
Contracts |
42 |
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5.14 |
Compliance With Laws |
44 |
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5.15 |
Insurance |
45 |
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5.16 |
Environmental Matters |
45 |
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5.17 |
Labor and Employment |
46 |
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5.18 |
Trade Practices |
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5.19 |
Government Contracts |
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ARTICLE VI NON-CONTROLLED ENTITY REPRESENTATIONS AND WARRANTIES OF SELLERS |
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6.1 |
Non-Controlled Entities |
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6.2 |
Capitalization and Subsidiaries |
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6.3 |
No Conflict |
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6.4 |
Litigation |
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6.5 |
Absence of Changes |
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6.6 |
Compliance With Laws |
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6.7 |
Environmental Matters |
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6.8 |
Labor and Employment |
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6.9 |
No Other Representations or Warranties |
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ARTICLE VII REPRESENTATIONS AND WARRANTIES OF PURCHASER |
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7.1 |
Incorporation and Authority of Purchaser |
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7.2 |
No Conflict |
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7.3 |
Consents and Approvals |
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7.4 |
Proceedings |
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7.5 |
Financial Advisors |
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7.6 |
Financial Capability |
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7.7 |
Solvency |
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ARTICLE VIII CERTAIN COVENANTS |
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8.1 |
Conduct of Business Prior to the Closing |
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8.2 |
Access to Information |
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8.3 |
Books and Records; Access; Assistance |
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8.4 |
Cooperation |
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8.5 |
Confidentiality |
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8.6 |
Employees |
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8.7 |
Employee Plans |
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8.8 |
Replacement Letters of Credit, Bank Guarantees and Surety Bonds |
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8.9 |
No Negotiation |
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8.10 |
Brokers |
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8.11 |
Further Assurances |
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8.12 |
Identified Claims |
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8.13 |
Collections of Accounts Receivable |
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8.14 |
Payments of Accounts Payable |
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ARTICLE IX TAX MATTERS |
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9.1 |
Tax Indemnification |
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9.2 |
Procedures Relating to Tax Indemnification |
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9.3 |
Tax Returns |
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9.4 |
Transaction Taxes |
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9.5 |
Records Retention |
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9.6 |
Exclusivity; Dispute Resolution |
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9.7 |
Tax Sharing Agreements |
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9.8 |
FIRPTA Certificate |
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9.9 |
Characterization of Indemnification Payments; Withholding |
76 |
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9.10 |
Closing of Tax Years; Straddle Period |
76 |
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9.11 |
Waiver of Loss Carrybacks |
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9.12 |
Section 338(h)(10) Election |
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9.13 |
Definitions |
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ARTICLE X CONDITIONS TO THE CLOSING |
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10.1 |
Conditions to Obligations of Parent and Sellers |
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10.2 |
Conditions to Obligations of Purchaser |
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ARTICLE XI DELIVERIES |
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11.1 |
Deliveries by Parent and Sellers |
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11.2 |
Deliveries by Purchaser |
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ARTICLE XII CERTAIN RESTRICTIONS |
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12.1 |
Non-Competition |
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12.2 |
Non-Solicitation |
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12.3 |
Specific Performance |
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12.4 |
Severability |
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12.5 |
Use of Trade Names and Trade Marks |
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ARTICLE XIII INDEMNIFICATION |
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13.1 |
Losses Defined |
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13.2 |
Indemnification by Parent and Sellers |
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13.3 |
Indemnification by Purchaser |
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13.4 |
Limitations on Indemnification |
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13.5 |
Procedures for Indemnification |
91 |
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ARTICLE XIV TERMINATION AND WAIVER |
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14.1 |
Termination |
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14.2 |
Effect of Termination |
94 |
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ARTICLE XV GENERAL PROVISIONS |
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15.1 |
Expenses |
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15.2 |
Notices |
94 |
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15.3 |
Severability |
95 |
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15.4 |
Entire Agreement |
95 |
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15.5 |
Assignment |
96 |
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15.6 |
No Third-Party Beneficiaries |
96 |
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15.7 |
Amendment |
96 |
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15.8 |
Governing Law |
96 |
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15.9 |
Public Announcements |
96 |
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15.10 |
Waiver of Jury Trial |
96 |
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15.11 |
Time Periods |
96 |
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15.12 |
Waiver |
97 |
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15.13 |
Execution of Agreement |
97 |
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PURCHASE AGREEMENT
This PURCHASE AGREEMENT (this Agreement) is made and entered into this 11th day of February, 2008 (the Effective Date), by and among AECOM Technology Corporation, a corporation organized under the laws of Delaware, having its registered office at 555 South Flower Street, Suite 3700, Los Angeles, California 90071 (Purchaser), on the one hand, and Tyco International Finance S.A., a company organized under the laws of Luxembourg, having its registered office at 29 Avenue de la Porte Neuve L2227 Luxembourg (TIFSA, a Seller and Parent), and each of the Persons set forth on the signature pages hereto, (each a Seller, and collectively with Parent, the Sellers), on the other hand.
WITNESSETH
WHEREAS, Parent and Sellers, directly and indirectly through various Subsidiaries, are engaged in the Business;
WHEREAS, each of the Sellers, other than Parent, is an Affiliate or a direct or indirect Subsidiary of Parent;
WHEREAS, Parent desires to sell, and cause the other Sellers to sell, to Purchaser (or one or more designees thereof), and Purchaser (or one or more designees thereof) desires to acquire, the Business through the purchase from Sellers of all of (i) the outstanding capital stock of the Purchased Companies owned by Sellers, (ii) the Australia GC&E Assets, and (iii) the German Assets (together with the Australia GC&E Assets, the Purchased Assets) on the terms and subject to the conditions of this Agreement; and
WHEREAS, Purchaser wishes to assume certain liabilities relating to the Business by assuming (i) the Assumed Australia GC&E Liabilities and (ii) the Assumed German Liabilities (together with the Assumed Australia GC&E Liabilities, the Assumed Liabilities) on the terms and subject to the conditions of this Agreement (collectively, the Transaction).
NOW, THEREFORE, in consideration of the mutual agreements and covenants hereinafter set forth, and for good and valuable consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
ARTICLE I
CERTAIN DEFINITIONS
1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings:
Accounting Firm has the meaning given in Section 2.6(e).
Accounts Receivable shall mean all accounts receivable, trade receivables, notes receivable and other receivables to the extent arising out of or with respect to the
Business and whether arising before or after the Closing Date, less adequate reserves for uncollectibility consistent with past practices.
Acquisition Transaction means any transaction with an unrelated Person involving: (a) the sale, license, disposition or acquisition of all or a substantial portion of the Business or Business Assets; (b) the issuance, disposition or acquisition of (i) any capital stock or other equity security of a Purchased Company (or any Subsidiary thereof), (ii) any option, call, warrant or right (whether or not immediately exercisable) to acquire any capital stock or other equity security of a Purchased Company (or any Subsidiary thereof), or (iii) any security, instrument or obligation that is convertible into or exchangeable for any capital stock or other equity security of a Purchased Company (or any Subsidiary thereof); or (c) any merger, consolidation, share exchange, business combination, reorganization, recapitalization or similar transaction involving a Purchased Company (or any Subsidiary thereof).
Affiliate means, with respect to a specified Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such specified Person.
Agreement has the meaning given in the Introductory Paragraph.
Ancillary Agreements means the Transition Services Agreement, the Bill of Sale, Assignment and Assumption Agreement and the Guaranty Indemnification Agreement.
Applicable Non-U.S. Antitrust Approvals means the necessary approvals, orders, permits or other Consents under any Competition Law in Canada and Mexico.
Assigned German Contracts means the Contracts and any ancillary agreements or Contracts related thereto set forth on Schedule 2.1(c).
Assumed Australia GC&E Liabilities means the Liabilities set forth on Schedule 2.2(a)(1).
Assumed German Liabilities means the Liabilities set forth on Schedule 2.2(a)(2).
Assumed Liabilities has the meaning set forth in the Whereas clauses.
Assumed Non-U.S. Business Benefit Plan has the meaning set forth in Section 5.7(l).
Assumed Plan Liabilities has the meaning set forth in Section 8.7(d).
Assumed Plans has the meaning set forth in Section 8.7(d).
Assumed U.S. Business Benefit Plan has the meaning set forth in Section 5.7(a).
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Australia Flow Control Business means the construction/project management, design-build, and operations and maintenance services business, serving the water and wastewater markets in Australia and New Zealand, that is operated by the Flow Control segment of Tyco International Ltd.
Australia GC&E Assets means the assets set forth on Schedule 2.1(b).
Australia GC&E Business means all of the business operations and activities conducted by Sellers (directly or indirectly) as the Earth Tech Global Consulting and Engineering business in Australia and New Zealand, which operates as a diversified, global infrastructure service provider offering consulting and engineering services in the water, wastewater, environmental, transportation and facilities markets. Notwithstanding the foregoing, the Australia GCE Business does not include any portion of Sellers Global Water Projects and Products Business.
Australia GWPP Business means Sellers Global Water Projects and Products business conducted in Australia and New Zealand, including the Australian DBFO Projects - - Coliban Water and Eastern Irrigation Scheme (Melbourne) and the New Zealand DBFO Project - Mangawhai.
Bank Guarantees means the bank guarantees listed on Schedule 5.13(b).
Base Permitted Proceeds means, (i) with respect to any of Parents fiscal quarters after September 28, 2007 in which the Closing does not occur, Two Million Dollars ($2,000,000) and (ii) with respect to any of Parents fiscal quarters in which the Closing occurs, the product of (A) Two Million Dollars ($2,000,000) multiplied by (B) a fraction, the numerator of which equals the number of calendar days having occurred between the first day of such fiscal quarter and the Closing Date, and the denominator of which equals the total number of calendar days in such fiscal quarter.
Base Purchase Price has the meaning given in Section 2.3.
Beverly Hills DBFO Assets has the meaning given in Section 2.6(b).
Bill of Sale, Assignment and Assumption Agreement means a bill of sale, assignment and assumption agreement evidencing the assignment, conveyance and transfer of the Purchased Assets and Assumed Liabilities from Sellers to Purchaser, in form and substance substantially in the form attached hereto as Exhibit A.
Brazil Business means all of the business operations and activities conducted by Sellers (directly or indirectly) through any of its Affiliates or Subsidiaries (including the Purchased Companies, their Subsidiaries or any Non-Controlled Entity) in Brazil prior to or after the Closing, including the operations and activities conducted through Earth Tech Brasil Ltda., Concessionaria de Aguas E Esgotos de Nova Friburgo Ltda., Saneamento de Jau Ltda., Aguas de Cajamar S/A, Sanear-Saneamento de Aracatuba S/A and Aguas de Esmeralda Ltda.
Brazil and German Services has the meaning given in Section 8.4(a).
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Business means all of the business operations and activities currently conducted by Sellers (directly or indirectly) as the Earth Tech business, involving and consisting of Sellers Global Consulting and Engineering business and Sellers Global Water Projects and Products business and collectively operating as a diversified, global infrastructure service provider offering consulting and engineering, construction/project management, design-build, and operations and maintenance services in the water, wastewater, environmental, transportation and facilities markets. Notwithstanding the foregoing, the Business does not include the Excluded Businesses or the Excluded Liabilities.
Business Assets has the meaning given in Section 5.10.
Business Benefit Plans means, collectively, the U.S. Business Benefit Plans and the Non-U.S. Business Benefit Plans.
Business Day means any day other than (i) any Saturday or Sunday or (ii) any other day on which banks located in New York, New York generally are closed or authorized by Law to be closed for business.
Business Debt means any Indebtedness of any Purchased Company (or any Subsidiary thereof), provided, however, that Business Debt shall not include (i) the Credit Facilities, (ii) the Earth Tech Intercompany Debt, (iii) Indebtedness incurred in the Ordinary Course for the trade of goods or services to the extent treated as current Liabilities for purposes of the Closing Working Capital calculation, (iv) any Indebtedness permitted to be incurred between signing and Closing in accordance with Section 8.1 or (v) any Letter of Credit, Bank Guarantee, Surety Bond or other guaranty set forth on Schedule 5.13(b).
Business Employee means, collectively, the U.S. Business Employees and the Non-U.S. Business Employees.
Business Plan means that certain budget and operating plan of the Business as adopted by Sellers (including the Purchased Companies) for the 2007 and 2008 fiscal years, as applicable.
Calculation Principles means GAAP, applied by Sellers in accordance with the accounting methods and procedures set forth in Schedule 1.1-A, subject to such exceptions as are set forth in Schedule 1.1-A.
Canadian Tax Documentation has the meaning given in Section 2.8(b).
Captive Insurance Carrier means (i) White Mountain Insurance Company, a Vermont corporation, or (ii) Mountainbran Limited, an entity formed under the laws of Ireland.
Change of Control Payments means, with respect to the Business or any Purchased Company (or any Subsidiary thereof) or any Non-Controlled Entity, any amounts that become payable by Purchaser or a Purchased Company (or any Subsidiary
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thereof) or any Non-Controlled Entity to any Business Employees, regardless of when due or payable, solely as a result of the execution and delivery of this Agreement or the consummation of the transaction contemplated hereby, including under any Business Benefit Plan (including, restricted stock grants and in-the-money stock options) or under any individual employment, severance or change-in-control Contract or otherwise (including any stay put or similar retention bonuses or percentage sharing arrangements); provided, however, Change of Control Payments shall not include (A) the Retention Payments or (B) any severance payment that becomes due and payable pursuant to a generally applicable severance plan in force and effect as of the Effective Date as a result of (i) Parents (at the written request of Purchaser) or (ii) Purchasers (or a Subsidiary thereof) termination of a Business Employees employment on or after the Closing Date.
Chinese DBFO Proceeds means any distribution or dividend that is actually received by a Seller or any Affiliate of a Seller from the Chinese DBFOs on or after December 28, 2007 and prior to the Closing Date.
Chinese DBFOs means the DBFO projects conducted by Qinhuangdao Pacific Water Company Limited, Guangzhou Xilang Wastewater Treatment Co. Ltd. and Tianjin Earth Tech Jieyuan Water Co., Ltd.
Claim means claim, demand, cause of action, chose in action, right of recovery or off-set, suit, litigation, proceeding, arbitration, hearing or investigation against any Person.
Closing has the meaning given in Section 2.4.
Closing Business Debt means any Business Debt outstanding as of the Closing.
Closing Date has the meaning given in Section 2.4.
Closing Payment has the meaning given in Section 2.6(b).
Closing Transaction Expenses means any Transaction Expenses due or otherwise owed as of the Closing.
Closing Working Capital means the working capital of the Business, as of the Closing Date and as determined in accordance with the Calculation Principles, and which shall be (i) the sum of all current assets of the Purchased Companies and their Subsidiaries acquired by Purchaser or its Subsidiaries (directly or indirectly through the acquisition of the Purchased Companies) pursuant to this Agreement, including in each case all cash and cash equivalents, Accounts Receivable, prepaid expenses and Inventory, minus (ii) the sum of all current liabilities of the Purchased Companies and their Subsidiaries (which, for the avoidance of doubt, shall not include any (A) Transaction Expense, (B) Business Debt, or (C) Change of Control Payment) assumed by Purchaser or its Subsidiaries (directly or indirectly through the acquisition of the Purchased Companies) pursuant to this Agreement.
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Code means the Internal Revenue Code of 1986 and any successor statute, as amended from time to time, in effect as of the date hereof.
Competing Person has the meaning given in Section 12.1(a).
Competition Laws shall mean any Laws relating to the regulation of monopolies or competition in any jurisdiction.
Competitive Activity has the meaning given in Section 12.1(a).
Confidential Information has the meaning given in Section 8.5(b).
Confidentiality Agreement means the Confidentiality Agreement, dated August 2, 2007, between Purchaser and Tyco International Management Company.
Consent means a consent, authorization or approval of a Person, a waiver by a Person or a filing or registration with a Person.
Contract means any written or oral, agreement, contract, license, lease, sales order, purchase order, indenture, guaranty, mortgage, note, bond, warrant, representation, indemnity, instrument, benefit plan, insurance policy, assignment, covenant, undertaking or commitment (including all amendments, supplements and modifications thereto).
control (including, with correlative meanings, the terms controlled by and under common control with) with respect to any Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.
Cost-Cap Project has the meaning given in Section 5.13(a).
Credit Facilities means the consolidated third party Indebtedness associated with Earth Tech Mexico, S.A. de C.V. and Qinhuangdao Pacific Water Co., to the extent that such consolidated third party Indebtedness does not exceed 168,173,000 Mexican Pesos and 24,900,000 Chinese Renminbi, respectively. For the avoidance of doubt, any amount of consolidated third party Indebtedness associated with Earth Tech Mexico, S.A. de C.V. and Qinhuangdao Pacific Water Co. in excess of 168,173,000 Mexican Pesos and 24,900,000 Chinese Renminbi, respectively, shall be included in Business Debt.
Dalriada means Dalriada Water Holdings Limited, its wholly owned subsidiary, Dalriada Water Limited, and Dalriada Water Services Limited.
Dalriada DBFO means the DBFO project conducted by Dalriada.
Dalriada DBFO Proceeds means any distribution or dividend that is actually received by a Seller or any Affiliate of a Seller from the Dalriada DBFO on or after December 28, 2007 and prior to the Closing Date.
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DBFO means design, build, finance and operate.
Deductible has the meaning given in Section 13.4(b).
Dollars or $ means U.S. dollars.
Dormant Entity means Grupo Rust International de Venezuela C.A.
Earth Tech Intercompany Debt means any Indebtedness held by a Purchased Company (or a Subsidiary thereof), on the one hand, and another Purchased Company (or a Subsidiary thereof) on the other hand.
Effective Date has the meaning given in the Introductory Paragraph.
Encumbrance means any pledge, lien (including a Tax lien), collateral assignment, security interest, hypothecation, charge or other Claim of a Person of any kind, mortgage, easement, option, deed of trust, title retention, conditional sale or other security arrangement, or any license, order or charge, or any adverse claim of title, ownership or use, or any agreement of any kind restricting transfer or use of real or personal property (including any restriction on the voting of any security, any restriction on the transfer of any security or other asset, any restriction on the receipt of any income derived from any asset, any restriction on the use of any asset and any restriction on the possession, exercise or transfer of any other attribute of ownership of any asset), but excluding any restrictions on transfer or assignment customarily imposed in a license to use Intellectual Property Rights.
Environment means the ambient air, surface water, ground water, land, surface or subsurface strata, wetlands, sediments, and other environmental medium and or natural resources and the workplace.
Environmental Law means any federal, state, local, foreign, European Union or other Law, statute, rule, ordinance or regulation or any common law, now or hereafter in effect, governing or relating to pollution or the protection, investigation or restoration of human health or the Environment, releases or threatened releases of Hazardous Substances, or otherwise relating to the manufacture, presence, processing, production, distribution, use, handling, generation, labeling, testing, treatment, storage, transportation, disposal or remediation of Hazardous Substances, including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42 U.S.C. § 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. § 6901 et seq.; the Federal Clean Air Act, 42 U.S.C. § 7401-7626; and the Federal Water Pollution Control Act and Federal Clean Water Act of 1977, as amended, 33 U.S.C. § 1251 et seq.
Equity Participations means, other than readily marketable securities listed on a nationally or internationally recognized exchange, (a) any share, quota, security, participation right and any other present or future right entitling the holder, absolutely or contingently (through the exercise of any subscription, conversion, exchange, option or
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similar right), to participate in the revenues, dividends or equity appreciation of another Person, including capital stock, membership interests, units, performance units, options, warrants, company appreciation rights, interests in phantom stock plans, restricted or contingent stock or profits interests, voting securities, stock appreciation rights or equivalents, stock loan purchase plans, convertible debentures or stock bonus plans and (b) commitments to issue any of the foregoing.
ERISA means the Employee Retirement Income Security Act of 1974, as amended.
ERISA Affiliate means any entity (whether or not incorporated) other than the Parent that, together with the Parent, is required to be treated as a single employer under Section 414(b), (c), (m) or (o) of the Code.
Escrow Agreement has the meaning given in Section 2.8(b).
Estimated Chinese DBFO Proceeds has the meaning given in Section 2.6(a).
Estimated Closing Business Debt has the meaning given in Section 2.6(a).
Estimated Closing Change of Control Payments has the meaning given in Section 2.6(a).
Estimated Closing Transaction Expenses has the meaning given in Section 2.6(a).
Estimated Closing Working Capital has the meaning given in Section 2.6(a).
Estimated Dalriada DBFO Proceeds has the meaning given in Section 2.6(a).
Estimated Project Contributions has the meaning given in Section 2.6(a).
Estimated Other DBFO Proceeds has the meaning given in Section 2.6(a).
ETEO means Empresa de Transmissao de Energia do Oeste Ltda.
Excluded Businesses means the business and assets of each of the Brazil Business, the Thai Business, ETEO, Water Technology Australia, the Australia Flow Control Business and the Australia GWPP Business.
Excluded Liabilities means any and all (a) Liabilities of Parent, Sellers or any Purchased Company, or Liabilities of any Subsidiary of any of the foregoing, that relate to the current or historical business (other than the current or historical operations and activities conducted by Sellers (directly or indirectly) as the Earth Tech business) of Parent or any of its respective Subsidiaries, except as specifically provided herein, (b) Liabilities of the Excluded Businesses, including Liabilities related to the closing or discontinuance of any of the Excluded Businesses, (c) any Liabilities related to any claim or notice of claim made by Parent, any Seller, any Purchased Company or any of their
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respective Subsidiaries to any of their respective Captive Insurance Carriers before the Closing, except to the extent set forth on Schedule 1.1-D, (d) all Liabilities relating to the Identified Claims, (e) all Liabilities relating to Business Debt, (f) all Liabilities relating to Transaction Expenses, (g) all Liabilities relating to Change of Control Payments, (h) all Liabilities relating to Business Benefit Plans unless expressly assumed by Purchaser hereunder or assumed by Purchaser by operation of Law, (i) all Tax Liabilities of the Dormant Entity accruing or arising prior to the Closing Date, (j) all Liabilities related to the German Business other than (1) the Liabilities of the business operated by MEVA Umwelltechnologic GmbH and its Subsidiaries and successors and (2) the Assumed German Liabilities, and (k) Liabilities arising out of or relating to the Retained German Contracts.
Excluded Sellers IP means the Intellectual Property Rights of a Seller, if any, set forth on Schedule 1.1-G that is currently used in the operation of the Business by Sellers but is not being transferred to Purchaser hereunder.
Final Allocation has the meaning given in Section 2.7.
Financial Statements has the meaning given in Section 4.4.
GAAP means United States generally accepted accounting principles, consistently applied throughout the specified period and in the immediately prior comparable period.
German Assets means the assets set forth on Schedule 2.1(c).
German Business means all of the business operations and activities conducted by Sellers (directly or indirectly) through Earth Tech Deutschland GmbH, Earth Tech Umwelttechnik GmbH and Earth Tech Klartechnik GmbH at the time of Closing but does not include the operations, activities, assets or liabilities exclusively related to the Retained German Contracts.
Government Contract means any material Contract related to the Business between any Seller or their Subsidiaries, including the Purchased Companies (or any Subsidiary thereof), and (i) any United States Federal Governmental Body, (ii) any prime contractor to any United States Federal Governmental Body or (iii) any contractor with respect to any contract described in clause (i) or (ii).
Governmental Approvals means all licenses, consents, permits, certificates, filings, registrations, notifications and other authorizations and approvals required to carry on the Business as conducted as of the date of this Agreement and as of the Closing Date under the applicable Laws of any Governmental Body.
Governmental Body means any federal, state, provincial, local or foreign government, including the European Union and the United States, or subdivision thereof, or any entity, body or authority exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to any federal, state, provincial, local, foreign or European Union government or any court, tribunal, or judicial or arbitral body.
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Governmental Order means any order, writ, judgment, award, ruling, subpoena, injunction, decree, consent decree, or stipulation entered by or with any Governmental Body.
Guaranty Indemnification Agreement shall mean the Guaranty Indemnification Agreement, in substantially the form as attached hereto as Exhibit B.
Hazardous Substances shall mean any pollutant, chemical, substance and any toxic, infectious, carcinogenic, reactive, corrosive, ignitable or flammable chemical, or chemical compound, or hazardous substance, material or waste, whether solid, liquid or gas, that is subject to regulation, control or remediation under any Environmental Laws, including without limitation, any quantity of asbestos in any form, urea, formaldehyde, PCBs, mold, lead, radon gas, crude oil or any fraction thereof, all forms of natural gas, petroleum products or by-products or derivatives.
HSR Act means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Identified Claims means all Claims and/or Losses, whether asserted presently or at any time hereafter, arising out of, or related to, any matters set forth on Schedule 8.12.
Indebtedness means with respect to a Purchased Company (or any Subsidiary thereof), (a) all indebtedness of such Purchased Company (or any Subsidiary thereof), whether or not contingent, for borrowed money, (b) all obligations of such Purchased Company (or any Subsidiary thereof) for the deferred purchase price of property or services, (c) all obligations of such Purchased Company (or any Subsidiary thereof) evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Purchased Company (or any Subsidiary thereof) (even though the rights and remedies of such Purchased Company (or any Subsidiary thereof) or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Purchased Company (or any Subsidiary thereof) as lessee under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all payment obligations, contingent or otherwise, of such Purchased Company (or any Subsidiary thereof) under acceptance, letter of credit or similar facilities, (g) all Indebtedness of others referred to in clauses (a) through (f) above guaranteed directly or indirectly in any manner by such Purchased Company (or any Subsidiary thereof) and (h) all Indebtedness referred to in clauses (a) through (f) above secured by any Encumbrance on assets or properties (including accounts and Contract rights) owned by such Purchased Company (or Subsidiary thereof), even though such Purchased Company (or any Subsidiary thereof) has not assumed or become liable for the payment of such Indebtedness.
Indemnification Allocation means, with respect to any NWE Loss or NWE Tax Obligation, an amount equal to the actual NWE Loss or NWE Tax Obligation suffered and incurred by Purchaser, the Purchased Company or the Subsidiary of a Purchased Company (as applicable) that directly owns the equity interest in such NWE, that is
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allocated to such equity owner of the NWE pursuant to any of the NWEs organizational documents or any other applicable Contract.
Indemnification Notice has the meaning given in Section 13.5(a).
Indemnified Party has the meaning given in Section 13.5(a).
Indemnifying Party has the meaning given in Section 13.5(a).
Initial Allocation has the meaning given in Section 2.7.
Intellectual Property Contracts means any Contract pursuant to which any of the Sellers and/or any of the Purchased Companies (or Subsidiaries of Sellers and/or any of the Purchased Companies) is a party or otherwise bound (i) granting such Sellers and/or any of the Purchased Companies (or Subsidiaries of Sellers and/or the Purchased Companies) rights to make, use, offer for sale, import or otherwise exploit any of the Licensed Sellers IP, (ii) granting any third party any rights to make, use, offer for sale, import or otherwise exploit any of the Owned Sellers IP, and/or (iii) restricting a right of Sellers and/or any of the Purchased Companies (or Subsidiaries of Sellers and/or any of the Purchased Companies) to make, use, offer for sale, import or otherwise exploit or register any Sellers IP. The term Intellectual Property Contracts does not include Contracts relating to the licensing, on standard terms, of generally available, off-the-shelf Software programs.
Intellectual Property Rights means (i) inventions, whether or not patentable, reduced to practice or made the subject of one or more pending patent applications, and all improvements thereto, (ii) patents and patent applications (including all renewals, reissues, divisions, continuations, continuations-in-part, extensions and reexaminations thereof) registered or applied for in the United States and all other nations throughout the world, including multinational patent applications, (iii) trademarks, service marks, trade dress, logos, slogans, trade names and corporate names (whether or not registered) in the United States and all other nations throughout the world, including all registrations and applications for registration or renewals of the foregoing and all goodwill associated therewith, (iv) copyrights and rights under copyrights (whether or not registered) and registrations and applications for registration or renewals thereof in the United States and all other nations throughout the world, including all renewals, extensions, reversions or restorations associated with such copyrights, now or hereafter provided by law, regardless of the medium of fixation or means of expression, including any copyrights in Software; (v) trade secrets and confidential business information (including pricing and cost information, and business and marketing plans and customer and supplier lists), technology and know-how (including manufacturing and production processes and techniques and research and development information), (vi) industrial designs (whether or not registered), (vii) rights in databases and data collections (including knowledge databases, customer lists and customer databases) in the United States and all other nations throughout the world, (viii) Internet domain name registrations, (ix) all rights in all of the foregoing provided by treaties, conventions and common law, (x) all rights to sue or recover and retain damages and costs and attorneys fees for past, present and
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future infringement or misappropriation of any of the foregoing, (xi) other proprietary or intellectual property rights now known or hereafter recognized in any jurisdiction, and (xii) all copies and tangible embodiments of any of the foregoing (in whatever form or medium).
Inventory means all inventory to the extent used or held for use or produced in the operation or conduct of the Business, wherever located, including raw materials, work-in-process, finished goods, spare parts and shop and production supplies.
Joint Venture or Joint Ventures means the contractual relationships set forth on Schedule 1.1-H.
Knowledge shall mean, when used with respect to (i) Parent or Sellers or any of their Subsidiaries, the actual knowledge, of the individuals, set forth on Schedule 1.1-B, and (ii) Purchaser or any of its Subsidiaries, the actual knowledge of the individuals, set forth on Schedule 1.1-C.
Law shall mean any law (including common law), statute, regulation, ordinance, rule, order, decree, judgment, consent decree, settlement agreement, governmental requirement or other binding directive issued, enacted, promulgated, entered into, agreed or imposed by any Governmental Body or Governmental Order.
Leased Real Property has the meaning given in Section 5.11.
Letters of Credit means the letters of credit listed on Schedule 5.13(b).
Liability or Liabilities means costs, expenses, payments, expenditures, losses, claims, debts, obligations, Indebtedness, commissions, duties, fees, salaries, performance or delivery penalties, warranty liabilities (whether implicit or explicit or whether granted orally or in writing) and other liabilities and obligations (whether pecuniary or not, including obligations to perform or forebear from performing acts or services), fines or penalties, whether accrued or fixed, absolute or contingent, matured or un-matured, determined or determinable, known or unknown, including those arising under any Law, action or Governmental Order, and those arising under any Contract.
License Agreement has the meaning given in Section 12.5(c).
Licensed Sellers IP means the Intellectual Property Rights used in the conduct of the Business as presently conducted that are owned by a third party and licensed to the Sellers or any of the Purchased Companies (or any Subsidiary thereof).
Licensor means Tyco International Services Holding GmbH.
Losses has the meaning given in Section 13.1.
Material Adverse Effect means any event, circumstance, change or effect that, individually or when considered with any other events, circumstances, changes or effects, is or could reasonably be expected to be materially adverse to the business, assets,
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liabilities, condition (financial or otherwise) or results of operations of the Business, taken as a whole, but in each case other than any change or effect relating to (i) business or economic conditions as a whole or the industries in which the Purchased Companies and their respective Subsidiaries operate, (ii) the engagement by the United States in hostilities whether or not pursuant to the declaration of a national emergency or war, or the occurrence of any military or terrorist attack upon the United States, or any of its territories, possessions, or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States, (iii) financial, banking or securities markets (including any disruption thereof and any decline in the price of any security or any market index), (iv) changes in United States generally accepted accounting principles, (v) changes in Law, rules, regulations, orders, or other binding directives issued by any governmental entity or (vi) the announcement of, or the taking of any action contemplated by, this Agreement and the other agreements contemplated hereby; provided, in the case of clauses (i), (ii), (iii), (iv) and (v) above, such changes or effects do not disproportionately effect the Business, taken as a whole, relative to other industry participants.
Material Contracts means the contracts set forth on Schedule 5.13(a).
Minimum Per Claim Amount has the meaning given in Section 13.4(b).
Misrepresentation Claims has the meaning given in Section 13.4(b).
Multiemployer Plans has the meaning given in Section 5.7(f).
Non-Competition Period has the meaning given in Section 12.1.
Non-Controlled Entity means any Person, other than a Joint Venture, in which the Purchaser is directly or indirectly pursuant to this Agreement acquiring an Equity Participation that is equal to, or less than, fifty percent (50%) of the total Equity Participations of such Person, each of which is set forth on Schedule 1.1-E.
Non-Solicitation Period has the meaning given in Section 12.2(a).
Non-U.S. Business Benefit Plan has the meaning given in Section 5.7(l).
Non-U.S. Business Employee means any employee of a Seller or its Subsidiaries whose primary place of employment is in a non-U.S. jurisdiction, and who works primarily in the Business.
Notification Letter means that certain letter agreement by and among Purchaser and Parent, dated as of the date hereof.
NWE means a non-wholly owned Purchased Company or Subsidiary of a Purchased Company.
NWE Loss means any Loss suffered or incurred by an NWE.
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NWE Tax Obligation means any obligation to pay or otherwise satisfy a Tax suffered or incurred by an NWE.
Ordinary Course means the operation of the Business in the ordinary course and consistent with past practices.
Other DBFO Proceeds means any equity distribution or dividends, if any, actually received by a Seller or any Affiliate of a Seller from the Other DBFOs between September 28, 2007 and the Closing Date.
Other DBFOs means any DBFO project other than the Chinese DBFOs and the Dalriada DBFO.
Owned Equity Participations has the meaning set forth in Section 6.2(b).
Owned Real Property has the meaning given in Section 5.11.
Owned Sellers IP means the Intellectual Property Rights used in the conduct of the Business as presently conducted that are owned by the Sellers or any of the Purchased Companies (or any Subsidiary thereof).
Parent has the meaning given in the Introductory Paragraph.
Parent Guaranties means the guarantees listed on Schedule 5.13(b).
Permit means any permit, license, approval, consent, registration, variance, certification, franchise, grant, authorization (including marketing and testing authorizations), concession, endorsement, or qualification granted by or obtained from any Governmental Body.
Permitted Encumbrances means (i) liens for current Taxes or other governmental charges not yet due and payable or the amount or validity of which is being contested in good faith by appropriate proceedings by a Seller or its Subsidiary; (ii) mechanics, carriers, workers, repairers and similar statutory liens arising or incurred in the ordinary course of business for amounts which are not delinquent and which are not, individually or in the aggregate, significant; (iii) zoning, entitlement, building and other land use regulations imposed by governmental agencies having jurisdiction over the Leased Real Property or Owned Real Property which are not violated by the current condition, use and operation of the Leased Real Property or Owned Real Property; (iv) covenants, conditions, restrictions, easements and other similar matters of record affecting title to the Leased Real Property or Owned Real Property which do not materially impair the occupancy or use of the Leased Real Property or Owned Real Property for the purposes for which it is currently used or proposed to be used in connection with the Business; (v) liens arising under workers compensation, unemployment insurance, social security, retirement and similar legislation; (vi) purchase money liens and liens securing rental payments under capital lease arrangements; (vii) liens of lessors and licensors arising under lease agreements or license arrangements; (viii) other liens that do not, individually or in the aggregate, materially impair the use,
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value or marketability of the property subject to such lien, (ix) liens arising under any of the Credit Facilities, (x) liens arising under any Indebtedness permitted to be incurred between signing and Closing in accordance with Section 8.1, and (xi) liens arising under any of the Earth Tech Intercompany Debt.
Permitted Proceeds means, with respect to each of Parents fiscal quarters (or portions thereof) occurring between September 28, 2007 and the Closing Date, (i) the Base Permitted Proceeds plus (ii) the aggregate amount of all Base Permitted Proceeds that were not received by Parent (directly or indirectly) in any fiscal quarter occurring after September 28, 2007.
Person means any natural person, firm, corporation, limited liability company, partnership, incorporated or unincorporated association, joint venture, joint stock company, Governmental Body, trust or any other entity of any kind.
Phoenix Claims means all litigation and Claims, whether asserted presently or at any time hereafter, including, without limitation, Earth Tech v. City of Phoenix, Earth Tech v. Malcolm Pirnie and City of Phoenix vs. Earth Tech, related to the Businesss transactions with the City of Phoenix, AZ (and any subcontractors and vendors retained in connection with such transactions), pertaining to the 91st Ave. Project.
Post-Closing Statement has the meaning given in Section 2.6(c).
Post-Closing Tax Period means (i) any Tax period beginning after the Closing Date and (ii) in the case of any Tax period which includes, but does not begin after, the Closing Date, the portion of such period following, but not including, the Closing Date.
Pre-Closing Tax Period means (i) any Tax period ending on or before the Closing Date and (ii) in the case of any Tax period which includes, but does not end on, the Closing Date, the portion of such period up to and including the Closing Date.
Prime Rate means the rate per annum published in the Wall Street Journal from time to time as the prime lending rate prevailing during any relevant period.
Proceeding has the meaning given in Section 5.6.
Project Contributions means any additional capital contributions made by Parent, or an Affiliate of Parent to (i) Dalriada or Querétaro or (ii), to the extent consented to by Purchaser, to any other DBFO related entity, in each case between the Effective Date and the Closing.
Prospective Acquirers has the meaning given in Section 8.5(c).
Purchase Price means the Base Purchase Price as adjusted pursuant to Section 2.6.
Purchased Assets has the meaning given in the Whereas clauses.
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Purchased Companies means the Persons set forth on Schedule 5.3(a).
Purchaser has the meaning given in the Introductory Paragraph.
Purchaser Cafeteria Plan has the meaning given in Section 8.7(e).
Purchaser Deferred Compensation Plan has the meaning given in Section 8.7(c).
Purchaser Indemnified Parties has the meaning given in Section 13.2.
Purchaser Savings Plan has the meaning given in Section 8.7(a).
Purchasers Pension Plan Trust has the meaning given in Section 8.7(b).
Purchaser Welfare Plan has the meaning given in Section 8.6(c).
Querétaro means the project involving the construction, start-up, operation, and maintenance of (i) a wastewater treatment plant and (ii) collectors, pumping stations and special crosses for a treated water system to Jurica, each located in the municipality of Querétaro, Mexico, by Promotora Ecológica San Pedro Mártir, S.A. de C.V., Earth Tech México, S.A. de C.V., and Servicios de Agua Trident, S.A. de C.V.
Real Property Leases has the meaning given in Section 5.11.
Reference Amount means Seventy Eight Million Two Hundred Sixty One Thousand Dollars ($78,261,000).
Registered IP means all United States, international and foreign Intellectual Property Rights within the Owned Sellers IP that have been recorded or registered in any applicable jurisdiction or is otherwise the subject of an application, certificate, filing, or registration issued by, filed with, or recorded by any Governmental Entity.
Replacement Letters of Credit, Bank Guarantees and Surety Bonds has the meaning given in Section 8.8.
Restricted Areas means any country in which the Business currently operates.
Retained Employees means all U.S. Business Employees and Non-U.S. Business Employees who are employed by Purchaser or the Purchased Companies and their Subsidiaries, immediately following the Closing Date.
Retained German Contracts means contracts undertaken by Earth Tech Deutschland GmbH, Earth Tech Umwelttechnik GmbH and Earth Tech Klartechnik GmbH that (i) are not Assigned German Contracts and (ii) do not relate to the performance of the Assigned German Contracts.
Retention Payments has the meaning given in Section 8.6(c).
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Review Period has the meaning given in Section 2.6(d).
Schedule or Schedules has the meaning given in the introductory paragraph to ARTICLE IV.
SEC means the United States Securities and Exchange Commission.
Section 338(h)(10) Election has the meaning given in Section 9.12.
Seller or Sellers has the meaning given in the Introductory Paragraph.
Seller Cafeteria Plan has the meaning given in Section 8.7(e).
Seller Deferred Compensation Plans has the meaning given in Section 8.7(c).
Seller Indemnified Parties has the meaning given in Section 13.3.
Seller Pension Plan means the Whitman and Howard Pension Plan.
Seller Savings Plans has the meaning given in Section 8.7(a).
Sellers IP means, collectively, the Licensed Sellers IP and the Owned Sellers IP.
Software means computer software, firmware, programs and databases in any form, including Internet web sites, web content and links, source code, executable code, tools, developers kits, utilities, graphical user interfaces, menus, images, icons, and forms, and all versions, updates, corrections, enhancements and modifications thereof, and all related documentation, developer notes, comments and annotations related thereto.
Straddle Period has the meaning given in Section 9.10.
Subsequent Financial Statements has the meaning given in Section 4.4.
Subsidiary or Subsidiaries means, with respect to any Person, any other Person of which (i) if a corporation, a majority of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, (ii) if a limited liability company, partnership, association or other business entity (other than a corporation), either the managing member or general partner or a majority of partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more other Subsidiaries of that Person or a combination thereof and for this purpose, a Person or Persons owns a majority ownership interest in such a business entity (other than a corporation) if such Person or Persons shall be allocated a majority of such business entitys gains or losses or shall be any managing director or general partner of
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such business entity (other than a corporation) or control any managing director or general partner of such business entity (other than a corporation) or (iii) is otherwise contractually entitled to direct and control. Notwithstanding anything to the contrary herein, for the purposes hereof, the term Subsidiary shall include all Subsidiaries of any Subsidiary, but the term Subsidiary shall not include any (A) Non-Controlled Entity or (B) Joint Venture.
Surety Bonds means the bonds listed on Schedule 5.13(b).
Surviving Representations has the meaning given in Section 13.4(a).
Target Shares means (i) all of the Equity Participations issued by each Purchased Company and held directly by any Seller and (ii) all of the Equity Participations issued by a direct or indirect Subsidiary of a Purchased Company and held directly by any Seller.
Tax or Taxes means all taxes of any kind whatsoever (whether payable directly or by withholding), including franchise, income, gross receipts, personal property, real property, ad valorem, value added, sales, use, documentary, stamp, intangible personal property, social security, wages, pension, withholding or other taxes, together with any interest and penalties, additions to tax or additional amounts with respect thereto imposed by any Tax Authority, duties, temporary or other import taxes, or penalties on unpaid or non-declared taxes.
Tax Authority means any Governmental Body, including social security administrators, or any agent thereof (third-party or otherwise), legally authorized to assess, lien, levy or otherwise collect, litigate or administer Taxes.
Tax Benefit has the meaning given in Section 13.1(b).
Tax Claim has the meaning given in Section 9.2.
Tax Indemnified Party has the meaning given in Section 9.2.
Tax Indemnifying Party has the meaning given in Section 9.2.
Tax Return means any report, return, document, declaration, payee statement or other information or filing required to be supplied to any Tax Authority with respect to Taxes.
Tax Sharing Agreements has the meaning given in Section 9.7.
Thai Business means all of the business operations and activities conducted by Sellers (directly or indirectly) through any of its Affiliates or Subsidiaries (including the Purchased Companies, their Subsidiaries or any Non-Controlled Entity) in Thailand and Turkey prior to or after the Closing, including those operations and activities conducted through Tyco Earth Tech (Thailand) Limited, Earth Tech Engineering (Thailand) Limited and Egcom Tara Co.
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Third Party Claim has the meaning given in Section 13.5(a).
TIFSA has the meaning set forth in the introduction.
Transaction has the meaning given in the Whereas clauses.
Transaction Expenses means any cost, expense, payment, expenditure or Liability of a Purchased Company (or any Subsidiary thereof) or for which Purchaser would otherwise become liable (including legal fees and expenses, accounting fees and expenses and financial advisory fees and expenses), whether incurred prior to the date of this Agreement, from the date of this Agreement through the Closing or at or after the Closing (even if the invoice for such fee or expense is not issued until after the Closing), that relates predominantly to the transactions contemplated hereby, but only to the extent performed at or prior to the Closing, including: (a) the participation in or response to the investigation, review and inquiry conducted by Sellers or any of their Affiliates and their agents, representatives and advisors with respect to the potential acquisition of the Business or a Purchased Company (or any Subsidiary thereof) (and the furnishing of information to Purchaser, its Affiliates or any other Person and their agents, representatives and advisors in connection with such investigation and review); (b) the negotiation, preparation, drafting, review, execution, delivery or performance of this Agreement and the Ancillary Agreements or any other certificate, opinion, Contract or other instrument or document delivered or to be delivered in connection with any of the transactions contemplated thereby; and (c) the preparation and submission of any filing or notice required to be made or given in connection with any of the transactions contemplated by this Agreement, or the obtaining of any consent, waiver or approval required to be obtained in connection with any of such transactions (provided that the Purchaser shall be solely responsible for the fees and costs related to the HSR Act and similar non-U.S. Laws).
Transaction Taxes has the meaning given in Section 9.4.
Transition Meetings means the meetings to occur as set forth on Schedule 1.1-F.
Transition Services Agreement shall mean the Transition Services Agreement, dated as of the Closing Date, between Parent and its Subsidiaries and Purchaser and/or one or more of its Subsidiaries, to be negotiated by the parties hereto between the Effective Date and the Closing Date as contemplated by Section 8.4(a).
Treasury Regulations means the federal income tax regulations, including any temporary or proposed regulations, promulgated under the Code, in effect as of the date hereof.
U.S. Business Benefit Plan has the meaning given in Section 5.7(a).
U.S. Business Employee shall mean any employee of a Seller or any of its Subsidiaries whose primary place of employment is in the U.S. and who works primarily in the Business.
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Undisputed Amounts has the meaning given in Section 2.6(d).
WARN Act means the Worker Adjustment and Retraining Notification Act of 1988, as amended, and any other similar Law.
Water Technology Australia means Water Technology Australia, a water and wastewater system provider offering construction/project management, design-build, and operations and maintenance services in Australia and New Zealand.
1.2 Interpretation. The headings contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement. In the event of a conflict between language or amounts contained in the body of the Agreement and language or amounts contained in the Exhibits or Schedules attached hereto, the language or amounts in the body of the Agreement shall control. The use of the masculine, feminine or neuter gender or the singular or plural form of words herein shall not limit any provision of this Agreement. The use of the terms including or include shall in all cases herein mean including, without limitation or include, without limitation, respectively. Reference to any Person includes such Persons successors and assigns to the extent such successors and assigns are permitted by the terms of any applicable agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity or individually. Reference to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof. Reference to any Law means such Law as amended, modified, codified, replaced or re-enacted, in whole or in part, including rules, regulations, enforcement procedures and any interpretations promulgated thereunder. Underscored references to Articles, Sections, Subsections or Schedules shall refer to those portions of this Agreement. The use of the terms hereunder, hereof, hereto and words of similar import shall refer to this Agreement as a whole and not to any particular Article, Section or clause of or Exhibit or Schedule to this Agreement. No specific representation, warranty or covenant contained herein shall limit the generality or applicability of a more general representation, warranty or covenant contained herein. A breach of or inaccuracy in any representation, warranty or covenant shall not be affected by the fact that any more general or less general representation, warranty or covenant was not also breached or inaccurate. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party.
2.1 Target Shares and Purchased Assets to Be Sold and Purchased at the Closing. On the terms and subject to the conditions of this Agreement, at the Closing, Parent shall cause each of the Sellers to sell, assign, transfer, convey and deliver to Purchaser (or one or more Affiliates of Purchaser designated by Purchaser in writing not less than ten (10) Business Days prior to Closing), and Purchaser and/or any such Affiliates shall purchase, acquire and receive from each Seller:
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2.2 Assumption of Liabilities relating to Purchased Assets.
2.3 Purchase Price. Purchaser agrees to pay Parent and Sellers at the Closing Five Hundred Ten Million Dollars (US $510,000,000) (the Base Purchase Price), subject to adjustment pursuant to Section 2.6(b), by delivery of immediately available funds. The Base Purchase Price shall be allocated in accordance with Section 2.7.
2.4 Closing. On the terms and subject to the conditions of this Agreement, the sale and purchase of the Target Shares and the Purchased Assets and all of the other closing deliveries required by Sections 11.1 and 11.2 shall take place at a closing at the offices of Kirkland & Ellis LLP located at 200 East Randolph Drive, Chicago, Illinois (the Closing). The date on which the Closing actually occurs shall be called the Closing Date as provided in Section 2.5.
2.5 Closing Date. The Closing Date shall be that date, occurring within three (3) Business Days after satisfaction or waiver of the conditions set forth in ARTICLE X, or at such later date as is otherwise selected by Parent and Purchaser.
2.6 Purchase Price Adjustments.
(9) The Base Purchase Price shall be reduced by an amount equal to the Estimated Chinese DBFO Proceeds, if any.
(10) The Base Purchase Price shall be reduced by an amount equal to the Estimated Dalriada DBFO Proceeds, if any.
(11) With respect to each of Parents fiscal quarters occurring between September 28, 2007 and the Closing Date, Parent shall be entitled to receive (directly or indirectly) Other DBFO Proceeds in an amount equal to the Permitted Proceeds. The Base Purchase Price shall be reduced by the amount, if any, that the Estimated Other DBFO Proceeds exceeds the aggregate amount of all Permitted Proceeds Parent is entitled to receive between September 28, 2007 and the Closing Date.
The Base Purchase Price, as adjusted pursuant to this Section 2.6(b), is the Closing Payment.
Permitted Proceeds Parent is entitled to receive between the Effective Date and the Closing Date), Parent shall pay the amount of such excess to Purchaser.
2.7 Allocation of Purchase Price. The Base Purchase Price and the Assumed Liabilities shall be allocated among the Target Shares and the Purchased Assets as set forth on Schedule 2.7 (the Initial Allocation). As soon as practicable after the determination of the Closing Working Capital, Closing Business Debt, Change of Control Payments, Closing Transaction Expenses, Project Contributions, Chinese DBFO Proceeds, Dalriada DBFO Proceeds and Other DBFO Proceeds, Parent and Purchaser shall adjust the Initial Allocation to reflect these items on a gross basis (as adjusted, and including any subsequent adjustments to the extent that indemnification payments are treated as purchase price adjustments, the Final Allocation). The Final Allocation, to the extent applicable, shall be prepared in accordance with Section 1060 of the Code. Parent and Purchaser shall negotiate in good faith to resolve any disputes regarding the Final Allocation. If Parent and Purchaser are unable to agree on the Final Allocation within thirty (30) calendar days after the determination of the Closing Working Capital, Closing Business Debt, Change of Control Payments, Closing Transaction Expenses, Project Contributions, Chinese DBFO Proceeds, Dalriada DBFO Proceeds and Other DBFO Proceeds, the parties shall submit any dispute for resolution to the Accounting Firm, which shall be directed to, within thirty (30) calendar days after such submission, determine and report to the parties upon such remaining disputes with respect to the Final Allocation, and such report shall be final, binding and conclusive on the parties hereto and shall constitute an arbitral award upon which a judgment may be entered in any court having jurisdiction thereof. The fees and disbursements of the Accounting Firm shall be shared equally by Parent and Sellers, on the one hand, and Purchaser, on the other hand. The Final Allocation shall be binding on the parties hereto and none of the parties shall take any position inconsistent with such allocation for Tax purposes.
2.8 Withholding.
(a) Except as provided in Section 2.8(b), all payments required to be made by Purchaser pursuant to this ARTICLE II shall be made net of any applicable withholding Tax in accordance with this Section 2.8(a). No later than five (5) Business Days (i) prior to the Closing Date and (ii) after the Closing Working Capital, Closing Business Debt, Change of Control Payments, Closing Transaction Expenses, Project Contributions, Chinese DBFO Proceeds, Dalriada DBFO Proceeds and Other DBFO Proceeds are finally determined in accordance with Section 2.6, Parent shall provide to Purchaser, with supporting documentation, the calculation of the amount of Tax, if any, to be withheld by Purchaser from the Base Purchase Price and any payment made by Purchaser to Parent pursuant to Section 2.6, respectively, and remitted to any Tax
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Authority. Any such withholding shall not be subject to a gross-up. Purchaser shall timely remit any such Tax to the applicable Tax Authority and, within five (5) Business Days of payment of any such withholding Tax pursuant to this Section 2.8(a), Purchaser shall deliver to Parent the original receipt or Tax Return related to such payment.
3.1 Certain Provisions Regarding Assignments.
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3.2 Seller Settlement of Cash and Intercompany Accounts.
Parent represents and warrants to Purchaser that the statements contained in this ARTICLE IV are correct and complete as of the date of this Agreement and as of the Closing Date, except as expressly set forth in the disclosure schedules delivered by Parent and Sellers to Purchaser on the date hereof (the Schedules). The information disclosed in any numbered part of the Schedules shall be deemed to relate to and to qualify only the particular representation or warranty set forth in the corresponding numbered Section in this Agreement; provided, however, any matter disclosed in a Schedule by Parent or Sellers shall be deemed to constitute disclosure against all other representations and warranties of Parent and Sellers to the extent it is reasonably apparent on the face of such disclosure that the matter disclosed is relevant to such other representations and warranties of Parent or Sellers.
4.1 Incorporation and Authority of Parent. Parent is an entity duly organized, validly existing and in good standing (to the extent such a concept exists in the jurisdiction of Parents formation) under the Laws of its jurisdiction of organization. Parent has all necessary power and authority to enter into this Agreement and the Ancillary Agreements, to the extent it will be a party thereto, to carry out and perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Parent of this Agreement and the Ancillary Agreements, to the extent it will be a party thereto, and the consummation by
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Parent of the transactions contemplated on its part hereby and thereby, have been duly and validly authorized by all necessary corporate action on the part of Parent and no other corporate action on the part of Parent, its board of directors or its stockholders is necessary to authorize this Agreement and the Ancillary Agreements, to the extent Parent will be a party thereto, and the consummation by Parent of the transactions contemplated on its part hereby and thereby. This Agreement has been duly executed and delivered by Parent, and the Ancillary Agreements will, at the Closing, be duly executed and delivered by Parent to the extent Parent is party thereto, and (assuming due authorization, execution and delivery by each other party thereto) this Agreement constitutes, and when executed and delivered by Parent, to the extent Parent is party thereto, the Ancillary Agreements will constitute, legal, valid and binding obligations of Parent enforceable against Parent in accordance with their terms, except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors rights and general principles of equity affecting the availability of specific performance and other equitable remedies (regardless of whether enforcement is sought in a proceeding at law or in equity). Except as set forth on Schedule 4.1, each Seller (other than Parent) is, directly or indirectly, a wholly owned Subsidiary of Parent.
4.2 No Conflict. The execution, delivery and performance by Parent of this Agreement and any Ancillary Agreement to which it is a party and the consummation of the transactions contemplated hereby and thereby does not and will not: (a) conflict with or violate the certificate of incorporation or bylaws (or similar organizational documents) of Parent; (b) conflict with or violate in any material respect any material Law, Permit, Governmental Order, concession, franchise or license applicable to Parent or any of the assets of the Business; or (c) result, in any material respect, in the violation or breach of, or constitute (with or without notice of lapse of time, or both) a material default (or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or material loss of any benefit) under, result in an Encumbrance (other than Permitted Encumbrances) under, any of the terms, conditions or provisions of any Material Contract.
4.3 Consents and Governmental Approvals. Except for those Consents and Governmental Approvals set forth on Schedule 4.3 that are obtained or made and in force at the Closing, the execution, delivery and performance by Parent of this Agreement and any Ancillary Agreement to which it is a party and the consummation of the transactions contemplated hereby and thereby does not and will not require any material Consent or Governmental Approval from or with any Person or any Governmental Body, except for compliance with the applicable requirements of the HSR Act or other applicable Competition Laws.
4.4 Financial Statements.
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4.5 Financial Advisors. Other than UBS Investment Bank, no Person has acted, directly or indirectly, as a broker, finder or financial advisor for Parent or any of its Subsidiaries (including any Purchased Company or any Subsidiary thereof) in connection with this Agreement or the transactions contemplated thereby and no Person is entitled to any fee or commission or like payment from Purchaser in respect thereof.
Each Seller represents and warrants to Purchaser that the statements contained in this ARTICLE V are true, correct and complete as of the date of this Agreement and as of the Closing Date, except as expressly set forth in the Schedules. The information disclosed in any numbered part of the Schedules shall be deemed to relate to and to qualify only the particular representation or warranty set forth in the corresponding numbered Section in this Agreement; provided, however, any matter disclosed in a Schedule by Parent or Sellers shall be deemed to constitute disclosure against all other representations and warranties of Parent and Sellers to the extent it is reasonably apparent on the face of such disclosure that the matter disclosed is relevant to such other representations and warranties of Parent or Sellers.
5.1 Incorporation and Authority of Sellers. Each Seller is an entity duly organized, validly existing and in good standing (to the extent such a concept exists in the jurisdiction of such entitys formation) under the Laws of its jurisdiction of organization. Each Seller is duly qualified to do business in each jurisdiction where the nature of its business or properties makes such qualification necessary, except where the failure to be
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so qualified would not, individually or in the aggregate, reasonably be expected to be material to the Business. Each Seller has all necessary power and authority to enter into this Agreement and the Ancillary Agreements, to the extent it will be a party thereto, to carry out and perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by such Seller of this Agreement and the Ancillary Agreements, to the extent it will be a party thereto, and the consummation by such Seller of the transactions contemplated on its part hereby and thereby, have been duly and validly authorized by all necessary corporate action on the part of such Seller and no other action on the part of such Seller is necessary to authorize this Agreement and the Ancillary Agreements, to the extent such Seller will be a party thereto, and the consummation by such Seller of the transactions contemplated on its part hereby and thereby. This Agreement has been duly executed and delivered by each Seller, and the Ancillary Agreements will, at the Closing, be duly executed and delivered by each such Seller to the extent it is party thereto, and (assuming due authorization, execution and delivery by each other party thereto) this Agreement constitutes, and when executed and delivered by each such Seller, to the extent it is party thereto, the Ancillary Agreements will constitute, legal, valid and binding obligations of such Seller, enforceable against such Seller in accordance with their terms, except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors rights and general principles of equity affecting the availability of specific performance and other equitable remedies (regardless of whether enforcement is sought in a proceeding at law or in equity). The Dormant Entity has not conducted any business for at least three (3) years and does not have any Liabilities.
5.2 Purchased Companies. Accurate and complete copies of the articles of incorporation and bylaws (or similar organizational instruments) of each Purchased Company have been delivered to Purchaser. No Purchased Company will be in default under or in violation of any provision of its articles of incorporation or bylaws (or similar organizational documents) at the Closing. Each Purchased Company is an entity duly organized, validly existing and (where such concept is applicable) in good standing under the Laws of its jurisdiction of organization. Each Purchased Company is duly qualified to do business in each jurisdiction where the nature of its business or properties makes such qualification necessary, except where the failure to be so qualified would not, individually or in the aggregate, reasonably be expected to be material to the Business. Except as set forth on Schedule 5.2, 5.3(a), 5.3(c), 1.1-E or 1.1-H, no Purchased Company or Subsidiary of a Purchased Company owns any Equity Participation in another Person.
5.3 Capitalization and Subsidiaries.
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5.4 No Conflict. The execution, delivery and performance of this Agreement and the Ancillary Agreements, by any Seller or any Purchased Company, to the extent that any such entity will be a party hereto or thereto, does not and will not: (a) conflict with or violate the articles of incorporation or bylaws (or similar organizational documents) of any Seller or any Purchased Company (or any of its Subsidiaries); (b) conflict with or violate, in any material respect, any material Law, Permit, Governmental Order, concession, franchise or license applicable to any Seller, any Purchased Company (or any of its Subsidiaries), any of their respective assets or any of the Business Assets; (c) result, in any material respect, in the violation or breach of, or constitute (with or without notice of lapse of time, or both) a material default (or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or material loss of any benefit) under, result in an Encumbrance (other than Permitted Encumbrances) under, any of the terms, conditions or provisions of any Material Contract to which any Purchased Company or any Subsidiary of a Purchased Company is a party; (d) result, in any material respect, in the creation of any Encumbrance on any of the Target Shares owned by any Seller other than the Permitted Encumbrances or (e) result in or give any Person any additional material right or entitlement (including any preemptive right, right of first refusal, right of first offer or similar right) under any of the terms, conditions or provisions of any Material Contract to which any Seller, Purchased Company or any Subsidiary of a Purchased Company is a party or to which any of the Business Assets are bound.
5.5 Consents and Governmental Approvals. Except for those Consents and Governmental Approvals set forth on Schedule 5.5, the execution, delivery and
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performance by each Seller of this Agreement and any Ancillary Agreement to which it is a party and the consummation of the transaction contemplated hereby and thereby does not and will not, require any material Consent or Governmental Approval from or with any Person or any Governmental Body, except for compliance with the applicable requirements of the HSR Act or other applicable Competition Laws.
5.6 Litigation. There is no material suit, action, investigation, arbitration, or proceeding (administrative or judicial) (Proceeding) pending or, to the Knowledge of Parent, threatened against or directly affecting any Purchased Company (or any of its Subsidiaries), the Business or the Business Assets thereof, or with respect to any Government Contract, by or before any Governmental Body. To the Knowledge of Parent, none of the Purchased Companies (or any of their Subsidiaries) or the Business Assets are subject to any material Governmental Order. No Purchased Company (or any Subsidiary thereof) has threatened or initiated the commencement of any material Proceeding against any other Person.
5.7 Employee Benefits.
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5.8 Taxes.
5.9 Absence of Changes. Since September 28, 2007, there has not been, and neither Sellers nor the Purchased Companies (including any Subsidiaries thereof) have taken any action that could reasonably expect to cause, a Material Adverse Effect and each Seller, Purchased Company and their Subsidiaries have conducted the Business in the Ordinary Course. Without limiting the generality of the foregoing, since September 28, 2007 and other than is Ordinary Course, there has not been and neither any Seller nor any Purchased Company (including any of their Subsidiaries) has taken, or otherwise committed to take, any action that would be prohibited by Section 8.1(b).
5.10 Title to Assets. The Purchased Companies will (directly or indirectly) have, as of the Closing Date, good and valid title to, or have a valid leasehold or licensed interest in, and possession of (as applicable) all of the material tangible and intangible properties and assets used by them primarily in connection with the Business (the Business Assets), free and clear of all Encumbrances, except for Permitted Encumbrances (it being understood that this representation and warranty shall not, as of the Closing Date, apply to any asset disposed of by Sellers or any of their Subsidiaries after the date of this Agreement in the Ordinary Course and not in violation of this Agreement).
5.11 Real Property.
5.12 Intellectual Property.
5.13 Contracts.
(i) any Contract relating to services or a project involving future payments in excess of $2,500,000 per annum or $5,000,000 in the aggregate;
(ii) except as set forth in the Notification Letter, any employment or consulting agreement or separate severance or change in control agreement (exclusive of generally applicable severance policies) with any Business Employee who was entitled to receive annual compensation of more than $200,000 during the 2007 calendar year or is projected to receive annual compensation of more than $200,000 during the 2008 calendar year;
(iii) (a) any non-DBFO guaranteed fixed price (Cost-Cap) environmental remediation Contract (a Cost-Cap Project) or (b) any Contract involving potential obligations over the remaining term of such Contract for process guaranties of a project greater than $5,000,000 in contract value (other than standard water and wastewater treatment process guarantees of any amount) or (c) any DBFO Contract in excess of $5,000,000 to which any Non-Controlled Entity is a party or otherwise has an interest;
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(iv) any Contract relating to Indebtedness (whether incurred, assumed, guaranteed or secured by any asset) in excess of $500,000;
(v) any material joint venture, partnership, limited liability company, stockholders agreement, voting agreement or other similar agreements or arrangements (including any agreement providing for joint research, development or marketing);
(vi) any Contracts or series of related Contracts, including any option Contract, relating to the acquisition or disposition of any business, a material amount of stock or assets of any other Person or any material real property (whether by merger, sale of stock, sale of assets or otherwise);
(vii) any Contract that limits the freedom of any Purchased Company or any Subsidiary to compete in any line of business or with any Person or in any area or that would so limit the freedom of Purchaser or its Affiliates or any Purchased Company or any Subsidiary after the Closing;
(viii) other than (a) Contracts entered into in the Ordinary Course by a Purchased Company (or Subsidiary thereof) pursuant to which the costs associated with such Contracts are passed through to a third party, including equipment purchases or subcontracts for goods or services or (b) as contemplated in the Business Plan, any Contract or series of related Contracts for the purchase of materials, supplies, goods, services, equipment or other assets providing for aggregate payments by any such Purchased Company or such Subsidiary over the remaining term of such agreement or related agreements of $1,000,000 or more;
(ix) any Contract relating to any interest rate, derivatives or hedging transaction;
(x) any material Contract granting any Person a right of first refusal, preemptive right, option, right of first offer, repurchase right, or any other similar right to acquire an Equity Participation from a Purchased Company (or Subsidiary thereof) in connection with or as a result of the transactions contemplated by this Agreement; or
(xi) any Contract involving potential obligations of any Person in excess of $2,500,000 over the remaining term of such agreement, under which (A) any Person has directly or indirectly guaranteed any Liabilities of any such Purchased Company or such Subsidiary or (B) any such Purchased Company such Subsidiary has directly or indirectly guaranteed any Liabilities of any other Person (in
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each case other than endorsements for the purpose of collection in the Ordinary Course).
5.14 Compliance With Laws.
5.15 Insurance. Schedule 5.15 contains an accurate and complete list of, all material policies of insurance maintained as of the date of this Agreement by or for the benefit of Sellers or any Purchased Company or any Subsidiary of a Purchased Company with respect to the Business or the employees, officers or directors of Sellers, a Purchased Company or a Subsidiary of a Purchased Company. To the Knowledge of Sellers, there is no claim by or with respect to any Purchased Company or Subsidiary of a Purchased Company pending under any of such policies as to which coverage has been questioned, denied or disputed by the underwriters of such policies or in respect of which such underwriters have reserved their rights. All premiums payable under such policies have been timely paid, and Sellers, the Purchased Companies and the Subsidiaries of the Purchased Companies have, otherwise complied fully with the terms and conditions of such policies. Such policies (or other policies providing substantially similar insurance coverage) have been in effect continuously since January 1, 2005 and remain in full force and effect. The Sellers do not know of any threatened termination of any of such policies.
5.16 Environmental Matters
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5.17 Labor and Employment. Except as set forth on Schedule 5.17, (with respect to the Business) (a) neither Sellers, the Purchased Companies nor any of their Subsidiaries are or have been a party to a collective bargaining agreement having provisions covering its employees or is currently negotiating such an agreement and, to the Knowledge of Sellers, no union is currently attempting to organize or otherwise represent any Business Employees, (b) no complaint against Sellers, the Purchased Companies or any of their Subsidiaries is currently pending or, to the Knowledge of Sellers, threatened before the National Labor Relations Board or the Equal Employment Opportunity Commission, or before any analogous entity in any country, (c) there are no labor strikes, requests for representation, slowdowns, or stoppages actually pending or, to the Knowledge of Sellers, threatened against Sellers, the Purchased Companies or any of their Subsidiaries, except as would not be material to the Business and (d) neither Sellers, the Purchased Companies nor any of their Subsidiaries have suffered an employment loss (as that term is defined in the WARN Act) in the ninety (90) day period prior to the date of this Agreement. To the Knowledge of Sellers, each Seller, the Purchased Companies and their Subsidiaries are in material compliance with all applicable material Laws respecting labor, employment, immigration, fair employment practices, workers compensation, occupational safety, and wages and hours.
5.18 Trade Practices. With respect to the Business, and to the Knowledge of Sellers, neither Sellers nor their Subsidiaries, including the Purchased Companies and their Subsidiaries, nor any director, officer or any employee or other Person acting on behalf of Sellers or any of Sellers Subsidiaries, including the Purchased Companies or their Subsidiaries, has, directly or indirectly, within the past two (2) years violated applicable Laws pertaining to the export or import of technical data, restrictive trade practices or boycotts.
5.19 Government Contracts.
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Each Seller represents and warrants to Purchaser that, to the Knowledge of Sellers, the statements contained in this ARTICLE VI are true, correct and complete with respect to the Business as of the date of this Agreement and as of the Closing Date, except as expressly set forth in the Schedules. The information disclosed in any numbered part of the Schedules shall be deemed to relate to and to qualify only the particular representation or warranty set forth in the corresponding numbered Section in this Agreement; provided, however, any matter disclosed in a Schedule by Parent or Sellers shall be deemed to constitute disclosure against all other representations and warranties of Parent and Sellers to the extent it is reasonably apparent on the face of such disclosure that the matter disclosed is relevant to such other representations and warranties of Parent or Sellers.
6.1 Non-Controlled Entities. Accurate and complete copies of the articles of incorporation and bylaws (or similar organizational instruments) of each Non-Controlled Entity have been delivered to Purchaser. No Non-Controlled Entity will be in default under or in violation of any provision of its articles of incorporation or bylaws (or similar organizational documents) at the Closing. Each Non-Controlled Entity is an entity duly organized, validly existing and (where such concept is applicable) in good standing under the Laws of its jurisdiction of organization. Each Non-Controlled Entity is duly qualified to do business in each jurisdiction where the nature of its business or properties makes such qualification necessary, except where the failure to be so qualified would not, individually or in the aggregate, reasonably be expected to be material to the Business.
6.2 Capitalization and Subsidiaries.
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6.3 No Conflict. The execution, delivery and performance of this Agreement and the Ancillary Agreements, by any Parent Seller or any Purchased Company, to the extent that any such Parent will be a party hereto or thereto, does not and will not: (a) conflict with or violate the articles of incorporation or bylaws (or similar organizational documents) of any Non-Controlled Entity; (b) conflict with or violate, in any material respect, any material Law, Permit, Governmental Order, concession, franchise or license applicable to any Non-Controlled Entity; (c) result, in any material respect, in the violation or breach of, or constitute (with or without notice of lapse of time, or both) a material default (or give rise to a right of termination, cancellation, modification or acceleration of any material obligation or material loss of any benefit) under, result in an Encumbrance (other than Permitted Encumbrances) under, any of the terms, conditions or provisions of any Material Contract to which any Non-Controlled Entity is a party; (d) result, in any material respect, in the creation of any Encumbrance on any of the Owned Equity Participations other than the Permitted Encumbrances or (e) result in or give any Person any additional material right or entitlement (including any preemptive right, right of first refusal, right of first offer or similar right) under any of the terms, conditions or provisions of any Material Contract to which any Non-Controlled Entity is a party.
6.4 Litigation. There is no material Proceeding pending, threatened against, or directly affecting any Non-Controlled Entity. None of the Non-Controlled Entities are subject to any material Governmental Order. No Non-Controlled Entity has threatened or initiated the commencement of any material Proceeding against any other Person.
6.5 Absence of Changes. Since September 28, 2007, the Non-Controlled Entities have not taken any action that could reasonably be expected to cause a Material Adverse Effect and the Non-Controlled Entities have conducted the Business (as it relates to such Non-Controlled Entities) in the Ordinary Course.
6.6 Compliance With Laws. Each Non-Controlled Entity is in compliance in all material respects with all Laws. Since January 1, 2006, no Non-Controlled Entity (i) has been subject to any Governmental Order with respect to any actual or alleged material non-compliance with applicable Law or (ii) received any notice or claim with respect to any actual or alleged material non-compliance with applicable Law. The Non-Controlled Entities hold all Permits that are required for the conduct in all material respects of the Business as now being conducted by such Non-Controlled Entities and (x) all such Permits are, and will be after the Closing, valid and in full force and effect and (y) no Proceedings are pending or threatened to revoke or modify any such Permit, and (z) no Non-Controlled Entity is in default under, and no condition exists that with notice or lapse of time or both would constitute a default under, any such Permit, except with
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respect to (x), (y) and (z), in each case as would not, individually or in the aggregate, reasonably be expected to be material to the Business taken as a whole. As of the Closing, the Non-Controlled Entities hold all material Permits that are required for the conduct of the Business as it is being conducted by such Non-Controlled Entities as of the date hereof and such Permits are valid and in full force and effect, except as would not be material to the Business taken as a whole.
6.7 Environmental Matters
6.8 Labor and Employment. Except as set forth on Schedule 6.8, with respect to the Business Employees (a) no Non-Controlled Entity is or has been a party to a collective bargaining agreement having provisions covering its employees or is currently negotiating such an agreement and no union is currently attempting to organize or otherwise represent any Business Employees, (b) there are no labor strikes, requests for representation, slowdowns, or stoppages actually pending or threatened against Non-Controlled Entity, except as would not be material to the Business and (c) no Non-Controlled Entity has suffered an employment loss (as that term is defined in the WARN Act) in the ninety (90) day period prior to the date of this Agreement. With respect to the Business Employees, the Non-Controlled Entities are in material compliance with all applicable material Laws respecting labor, employment, immigration, fair employment practices, workers compensation, occupational safety, and wages and hours.
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6.9 No Other Representations or Warranties. Except for the representations and warranties contained in ARTICLE IV, ARTICLE V and this ARTICLE VI, Purchaser acknowledges that none of Parent, Sellers and any person acting on behalf of Parent or Sellers makes any other express or implied representation or warranty with respect to Parent, Sellers or any of its or their Subsidiaries, the Business or with respect to any other information provided to Purchaser in connection with the transactions contemplated by this Agreement. Neither Parent, Sellers nor any other person will have or be subject to any Liability or indemnification obligation to Purchaser or any other person resulting from the distribution to Purchaser, or Purchasers use of, any such information, including any information, documents, projections, forecasts or other material made available to Purchaser in certain data rooms or in management presentations in expectation of the transactions contemplated by this Agreement, unless and then only to the extent that any such information is expressly included in a representation or warranty contained in ARTICLE IV, ARTICLE V or this ARTICLE VI of this Agreement or in the Schedules attached hereto.
Purchaser hereby represents and warrants to Parent and Sellers as follows:
7.1 Incorporation and Authority of Purchaser. Purchaser is a corporation duly incorporated, validly existing and in good standing under the Laws of Delaware and has all necessary corporate power and authority to enter into this Agreement and the Ancillary Agreements, to carry out and perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement and the Ancillary Agreements, and the consummation by Purchaser of the transactions contemplated on its part hereby and thereby, have been duly and validly authorized by all necessary corporate action on the part of Purchaser and no other corporate action on the part of Purchaser, its board of directors or its stockholders is necessary to authorize this Agreement and the Ancillary Agreements and the consummation by Purchaser of the transactions contemplated on its part hereby and thereby. This Agreement has been duly executed and delivered by Purchaser, and the Ancillary Agreements, will at the Closing be duly executed and delivered by Purchaser, and (assuming due authorization, execution and delivery by each other party thereto) this Agreement constitutes, and when executed and delivered by Purchaser, the Ancillary Agreements, will constitute, legal, valid and binding obligations of Purchaser enforceable against Purchaser in accordance with their terms, except as enforceability may be limited by bankruptcy Laws, other similar Laws affecting creditors rights and general principles of equity affecting the availability of specific performance and other equitable remedies.
7.2 No Conflict. The execution, delivery and performance by Purchaser of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby do not and will not: (a) violate or conflict with the articles of incorporation or bylaws (or similar organizational instruments) of Purchaser; (b) conflict with or violate any material Law, Permit, Governmental Order, concession,
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franchise or license applicable to Purchaser or any of its assets or properties; or (c) result in any material respect, in the violation or breach of, or constitute (with or without notice or lapse of time, or both) a material default under, or give to any Person any rights of termination, rescission, amendment, acceleration or cancellation of, or any right of Consent with respect to, any material note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise or other instrument relating to any material assets or properties to which Purchaser is a party or by which any of its material assets or properties is bound or affected.
7.3 Consents and Approvals. The execution and delivery of this Agreement by Purchaser does not, the execution and delivery by Purchaser of the Ancillary Agreements will not, and the performance by Purchaser of this Agreement and the Ancillary Agreements does not and will not, require any material Consent or Governmental Approval from or with any Person or any Governmental Body, except for compliance with the applicable requirements of the HSR Act or other applicable Competition.
7.4 Proceedings. There are no Proceedings pending or, to the Knowledge of Purchaser, threatened by or against or affecting Purchaser or any of its Affiliates; or any of their respective assets, with respect to this Agreement or the Ancillary Agreements, or the transactions contemplated hereby or thereby, and Purchaser has no Knowledge that there is a valid basis for any such Proceeding.
7.5 Financial Advisors. No Person has acted, directly or indirectly, as a broker, finder or financial advisor for Purchaser in connection with the transactions contemplated by this Agreement and the transactions contemplated thereby and no Person is entitled to any fee or commission or like payment from Parent in respect thereof.
7.6 Financial Capability. Purchaser (i) has, and at Closing shall have, sufficient financial resources available to pay the Purchase Price and any expenses incurred by Purchaser in connection with the transactions contemplated by this Agreement and (ii) has, and at Closing shall have, the resources and capabilities (financial or otherwise) to perform its obligations hereunder, including, its obligations under the Guaranty Indemnification Agreement. Purchaser acknowledges and agrees that its obligations under this Agreement are not subject to any condition regarding Purchasers ability to obtain financing for the consummation of the transactions contemplated by this Agreement.
7.7 Solvency. Immediately after giving effect to the transactions contemplated by this Agreement, Purchaser will be able to pay its debts as they become due and will own property which has a fair saleable value greater than the amounts required to pay its debts (including a reasonable estimate of the amount of all contingent Liabilities). Immediately after giving effect to the transactions contemplated by this Agreement, Purchaser will have adequate capital to carry on its businesses. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of Purchaser.
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8.1 Conduct of Business Prior to the Closing.
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8.3 Books and Records; Access; Assistance.
(a) For a period of six (6) years after the Closing Date, Parent and Purchaser shall preserve and retain all accounting, legal, auditing and other books and records (including any documents relating to any Proceedings arising out of or with respect to the operation or conduct of the Business, regardless of whether such Proceeding is initiated before or after the Closing) over which it has control to the extent relating to the conduct of the Business prior to the Closing Date (which shall include, for the avoidance doubt, all facts and circumstances occurring or existing prior to the Closing that may give rise to a Claim by any Person, even if such Claim is not made until after the Closing). Notwithstanding the foregoing, during such six-year period, either party may dispose of any such books and records which are offered to, but not accepted by, the other party.
8.4 Cooperation.
8.5 Confidentiality.
8.6 Employees.
8.7 Employee Plans.
(e) Purchaser shall have in effect as of the Closing Date, flexible spending reimbursement accounts under a cafeteria plan qualifying under Section 125 of the Code (the Purchaser Cafeteria Plan) that provide benefits to U.S. Business
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Employees who had flexible spending reimbursement accounts immediately prior to the Closing in the Tyco Flexible Spending Accounts Plan, a plan intended to qualify under Section 125 of the Code (the Seller Cafeteria Plan), and Purchaser agrees to cause the Purchaser Cafeteria Plan to accept a spin-off of the flexible spending reimbursement accounts from the Seller Cafeteria Plan and to honor and continue through the end of the calendar year in which the Closing Date occurs the elections made by each Transferred Employee under the Seller Cafeteria Plan in respect of the flexible spending reimbursement accounts that are in effect immediately prior to the Closing. As soon as administratively practicable following the Closing Date, (A) the Sellers shall transfer to the Purchaser Cafeteria Plan an amount equal to the net Purchaser Cafeteria Plan flexible spending account balances with respect to Transferred Employees, to the extent the aggregate amount of such account balances is greater than zero or (B) Purchaser shall transfer to the Sellers an amount equal to the net Purchaser Cafeteria Plan flexible spending account balances with respect to Transferred Employees, to the extent the aggregate amount of such account balances is less than zero. From and after the Closing Date, Purchaser shall assume and be solely responsible for all claims by Transferred Employees under the Seller Cafeteria Plan, whether incurred prior to, on or after the Closing Date, that have not been paid in full as of the Closing.
8.8 Replacement Letters of Credit, Bank Guarantees and Surety Bonds.
8.9 No Negotiation. From and after the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement, Parent shall not, and shall ensure that no Seller or Purchased Company (or any Subsidiary thereof) and no Representative or Affiliate of any Seller or Purchased Company (or any Subsidiary thereof) shall, directly or indirectly, except with respect to Prospective Acquirers: (a) solicit, facilitate or encourage the initiation of any inquiry, proposal or offer from any Person (other than Purchaser) relating to a possible Acquisition Transaction; (b) participate in any discussions or negotiations or enter into any agreement with, or provide any non-public information to, any Person (other than Purchaser) relating to or in connection with a possible Acquisition Transaction; or (c) encourage or accept any proposal or offer from any Person (other than Purchaser) relating to a possible Acquisition Transaction. Parent shall promptly (and in any event within 48 hours of receipt thereof) notify Purchaser in writing of any credible inquiry, proposal or offer relating to a possible Acquisition Transaction (including the identity of the Person making or submitting such inquiry, proposal or offer, and the terms thereof) that is
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received by Parent, Seller or Purchased Company (or any Subsidiary thereof) or any Representative or Affiliate of such.
8.10 Brokers. Regardless of whether the Closing shall occur, Parent shall indemnify Purchaser and its Subsidiaries (including, after the Closing, the Purchased Companies) against, and hold the Purchaser and its Subsidiaries (including, after the Closing, the Purchased Companies) harmless from, any and all Liability for any brokers or finders fees or other commissions arising with respect to brokers or finders retained or engaged by a Seller or any of its Subsidiaries in respect of the transactions contemplated by this Agreement, including, the fees of UBS Investment Bank, and (b) Purchaser shall indemnify Parent, Sellers and their respective Subsidiaries against, and hold Parent, Sellers and their respective Subsidiaries harmless from, any and all Liability for any brokers or finders fees or other commissions arising with respect to brokers or finders retained or engaged by Purchaser or any of its Subsidiaries in respect of the transactions contemplated by this Agreement.
8.11 Further Assurances. Each Seller shall (and shall cause its Subsidiaries to) from time to time after the Closing Date, at Purchasers request, execute and deliver, or cause to be executed and delivered, such further instruments of conveyance, assignment and transfer or other documents, and perform such further acts and obtain such further Consents, as Purchaser may reasonably require in order to fully effect the conveyance and transfer to Purchaser or its designees, or perfect Purchasers or its designees right, title and interest in, the Target Shares and the Purchased Assets, or to otherwise comply with the provisions of this Agreement and consummate the transactions contemplated by this Agreement and the Ancillary Agreements. In addition, each Seller shall take such action as is commercially reasonable to keep in full force and effect any Contract of the Business that cannot be or is otherwise not assigned to Purchaser or its Subsidiaries at the Closing and take such action as is commercially reasonable to provide for the benefit of Purchaser or its Subsidiaries any and all rights of such Seller under any such Contract.
8.12 Identified Claims. Notwithstanding anything to the contrary herein:
8.13 Collections of Accounts Receivable. To the extent not inconsistent with the terms of the Transition Services Agreement, subject to the terms and conditions of this Section 8.13, after the closing and on a daily basis, Purchaser shall promptly (but in no event later than ten (10) days after receipt thereof) deliver to Sellers any cash, checks or other property that Purchaser receives following the closing to the extent relating to the accounts receivable or the operations of an Excluded Business. After the closing and on a daily basis, Sellers shall promptly (but in no event later than ten (10) days after receipt thereof) deliver to Purchaser any cash, checks or other property that Sellers receive to the extent relating to the Business, Purchased Assets, Purchased Companies (including any Subsidiaries thereof) or the Non-Controlled Entities. Sellers, on the one hand, and Purchaser, on the other hand, will promptly deliver to the other a true copy of any notice of a dispute as to the validity or enforceability of any accounts receivable received from the debtor of such accounts receivable. Neither Sellers nor Purchaser shall agree to any settlement, discount or reduction of the accounts receivable belonging to the other. Neither Sellers nor Purchaser shall assign, pledge or grant a security interest in the accounts receivable of the other to any third party or claim a security interest or right in and to the accounts receivable, and payment of the accounts receivable shall not be subject to off-set. Sellers and Purchasers collection obligation under this Section 8.13 shall not include any obligation to bring suit, engage a collection agent or take any other legal action for the collection or sale (as the case may be) of the accounts receivable.
8.14 Payments of Accounts Payable. To the extent not inconsistent with the terms of the Transition Services Agreement, Purchaser, on the one hand, and Sellers, on the other hand, will promptly deliver to the other a true copy of any invoice, notice of accounts payable, or notice of a dispute as to the amount or terms of any accounts payable received from the creditor of such accounts payable to the extent such accounts payable is owned by the other party. Should either Purchaser or any Seller discover that it paid an accounts payable belonging to the other party, then Purchaser or Sellers, as applicable, shall provide written notice of such payment to the other party, and Sellers or Purchaser, as applicable, shall within five (5) business days of the receipt of such notice, pay to the party who paid its accounts payable by wire transfer of immediately available funds to the account designated by such party all amounts listed on such notice.
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9.1 Tax Indemnification.
9.2 Procedures Relating to Tax Indemnification.
Tax Indemnified Party (and its Affiliates) from and against any Liability for Taxes resulting from such settlement or compromise and such settlement or compromise does not result in any change in accounting method for Tax purposes that affects a Post-Closing Tax Period. If the Tax Indemnifying Party elects to control such Tax Claim, the Tax Indemnifying Party shall keep the Tax Indemnified Party informed as to the status of such proceedings (including by providing copies of all notices received from the relevant Tax Authority) and the Tax Indemnified Party shall have the right to attend (and, to the extent that the resolution of such Tax Claim could materially adversely affect the Liability of the Tax Indemnified Party for Taxes for which it is not indemnified pursuant to Section 9.1(a), participate in), using counsel of its own choosing and at its own expense, all proceedings (including meetings and conference calls) relating to any Tax Claim. If the Tax Indemnifying Party elects not to control any proceedings relating to a Tax Claim, the Tax Indemnified Party shall control such proceedings but shall not settle or compromise such Tax Claim without the Tax Indemnifying Partys prior written consent (which consent shall not be unreasonably withheld).
9.3 Tax Returns.
9.4 Transaction Taxes. Notwithstanding any other provision of this Agreement to the contrary, all transfer, documentary, sales, use, excise, stamp, registration and other such Taxes imposed by or payable to any jurisdiction or any Governmental Body (collectively, Transaction Taxes) arising from the transactions contemplated by any provision of this Agreement or in connection with any Ancillary Agreement shall be borne fifty percent (50%) by Purchaser and fifty percent (50%) by Sellers. Notwithstanding the foregoing, all value added taxes (including, but not limited to, VAT, GST and other similar taxes) shall be borne one hundred percent (100%) by the Purchaser. It is the understanding of the parties that the asset sale in Australia should qualify as a transfer of business and should not be subject to GST. However, should the Seller be liable to charge and account for GST it shall issue a valid GST invoice to the Purchaser. All necessary Tax Returns with respect to all such Transaction Taxes and value added taxes shall be filed by the party responsible for the filing of any such Tax Returns under applicable Law. For the avoidance of doubt, Transaction Taxes do not include income Taxes, and the Purchase Price set forth in Section 2.3 is exclusive of any Transaction Taxes and value added taxes payable.
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9.5 Records Retention. Each of Parent and Purchaser shall retain (or cause its applicable Subsidiaries to retain) all Tax Returns, schedules, and work papers and all material records and other documents relating thereto of the Purchased Companies with respect to any Pre-Closing Tax Period until the expiration of the later of (i) the seventh (7th) anniversary of the Closing Date or (ii) the date on which Taxes may no longer be assessed under the applicable statutes of limitation, including any waivers or extensions thereof. Thereafter, each of Parent and Purchaser shall not destroy or dispose of any such Tax Returns, schedules, or work papers or any other material records or other documents relating thereto without giving written notice to the other party of such pending destruction or disposal and offering such other party the right to copy such documents and information. Parent or Purchaser, as the case may be, shall be entitled to destroy or dispose of any such Tax Returns, schedules, and work papers and all material records and other documents relating thereto described in such notice if such other party fails to request copies thereof within ninety (90) days after receipt of the notice described in this Section 9.5.
9.6 Exclusivity; Dispute Resolution . Except with respect to Sections 13.1(b), 13.1(c), 13.1(d) and 13.4(a), this ARTICLE IX, and not ARTICLE XIII, shall govern the administration of all Tax Claims, the retention of Tax records, and the determination of, procedures for, and all other matters related to Taxes arising under this Agreement. Any dispute regarding Taxes arising under this ARTICLE IX shall be resolved in accordance with the procedures set forth in Section 2.6(e).
9.7 Tax Sharing Agreements . Sellers shall release or cause the release of each Purchased Company or Subsidiary thereof from any obligation under any existing agreement relating to the allocation or sharing of Taxes (the Tax Sharing Agreements) to which any Person (other than any other Purchased Company or Subsidiary thereof) is a party. For the avoidance of doubt, Sellers shall cause each Purchased Company and Subsidiary thereof to have no obligation under any Tax Sharing Agreement to any Person (other than another Purchased Company or Subsidiary thereof) for the payment of Taxes after the Closing.
9.8 FIRPTA Certificate. Prior to the Closing, the Sellers shall have delivered to Purchaser such forms and certificates, duly executed and acknowledged, in form and substance reasonably satisfactory to Purchaser, certifying that the purchase of the Target Shares and the Purchased Assets is exempt from withholding under Section 1445 of the Code.
9.9 Characterization of Indemnification Payments; Withholding. Unless otherwise required by Law, all payments made pursuant to ARTICLE IX or ARTICLE XIII hereof shall be treated for all Tax purposes as adjustments to the Purchase Price.
9.10 Closing of Tax Years; Straddle Period. To the extent permitted by Law, Sellers, the Purchased Companies, and/or Purchaser, as applicable, shall close each taxable period of each Purchased Company as of the close of the Closing Date. For purposes of this ARTICLE IX, in the case of any taxable period that includes (but does not end on) the Closing Date (a Straddle Period), the amount of any Taxes based on or
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measured by income or receipts of the Purchased Companies for the Pre-Closing Tax Period shall be determined based on an interim closing of the books as of the close of business on the Closing Date (and for such purpose, the taxable period of any partnership or other pass-through entity in which a Purchased Company holds a beneficial interest shall be deemed to terminate at such time) and the amount of other Taxes of the Purchased Companies for a Straddle Period that relates to the Pre-Closing Tax Period shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the number of days in the period ending on the Closing Date and the denominator of which is the number of days in such Straddle Period.
9.11 Waiver of Loss Carrybacks. To the extent permitted by Law, Purchaser shall, and shall cause its Affiliates to, relinquish pursuant to Treasury Regulation section 1.1502-21(b)(3)(ii)(B) (or any similar provision of state, local, or foreign Law), with respect to all net operating losses attributable to any Purchased Company or Subsidiary thereof, the portion of the carryback period for which such Purchased Company or Subsidiary was a member of a consolidated group of which Parent or any of its Affiliates is or was the common parent. To the extent that a Seller or its Subsidiary receives a refund or actually realizes a credit as a result of the carryback of a Tax asset of a Purchased Company or Subsidiary thereof arising in a Post-Closing Tax Period, such Seller or Subsidiary shall pay to Purchaser, within ten (10) Business Days after receipt of such refund or after the relevant Tax Return is filed that reflects such realization, the amount of such refund or credit (together with any interest received thereon and net of any Tax cost to such Seller or Subsidiary). At Purchasers expense, the Sellers shall, if reasonably requested by Purchaser, file for, or cause to be filed for, and use its reasonable best efforts to obtain and expedite the receipt of, any refund to which Purchaser is entitled to under this Section 9.11.
9.12 Section 338(h)(10) Election.
(a) At the request of Sellers, which request shall be made in writing no later than the Closing Date, Purchaser shall join with Sellers (or an appropriate Affiliate of a Seller) in making an election under Section 338(h)(10) of the Code and the Treasury Regulations thereunder, and any corresponding or similar elections under U.S. state or local Tax laws (collectively, the Section 338(h)(10) Election) with respect to the purchase and sale of any Target Shares hereunder. In the event that Sellers do not request that Purchaser join in making the Section 338(h)(10) Election, the remainder of the provisions of this Section 9.12 shall not apply
(b) Sellers shall be responsible for the preparation and filing of all forms and documents required in connection with the Section 338(h)(10) Election, subject to prior review and approval by Purchaser and the procedures set forth in this Section 9.12. For the purpose of making the Section 338(h)(10) Election, on or prior to the Closing Date, Purchaser shall execute two copies of Internal Revenue Service Form 8023 (or successor form) with respect to the sale of the applicable Target Shares. Purchaser shall execute (or cause to be executed) and deliver to Sellers such additional documents or forms as are reasonably requested to complete properly the Section 338(h)(10) Election at
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least thirty (30) days prior to the date such Section 338(h)(10) Election is required to be filed.
(c) As soon as practicable after the Closing, Sellers shall deliver to Purchaser an allocation of the purchase price for the Target Shares for which Sellers have exercised their rights under Section 9.12(a) (and any liabilities of the Purchased Company existing immediately after the Closing) for purposes of the Section 338(h)(10) Election. Sellers shall prepare the allocation in a manner consistent with the allocation method set forth in Treasury Regulation Section 1.338-6. Unless Purchaser notifies Sellers in writing that it disagrees with the allocation within ten (10) Business Days after receipt thereof, the allocation shall be conclusive and binding on Purchaser and Sellers. If Purchaser notifies Sellers in writing of its disagreement with the allocation within such ten (10) Business Day period, then Purchaser and Sellers shall attempt to resolve their differences with respect thereto within thirty (30) days after such Sellers receipt of Purchasers written notice of disagreement. Any dispute regarding the allocation not resolved by Purchaser and Sellers within such thirty (30) day period will be resolved by an Accounting Firm mutually acceptable to both parties or, in the absence of agreement, by an accounting firm of national reputation selected by lot after eliminating Sellers and Purchasers principal outside accountants and one additional firm designated as objectionable by each of Sellers and Purchaser. The determination by the Accounting Firm so selected of the allocation shall be conclusive and binding upon the parties. The fees and expenses of such accounting firm in acting under this Section 9.12(c) shall be shared equally by Purchaser and Sellers. Purchaser and Sellers shall file, and shall cause their Affiliates to file, all Tax Returns (and all statements, forms, and schedules in connection therewith) in a manner consistent with such allocation and with the Section 338(h)(10) Election and shall take no position contrary thereto unless required to do so under applicable Law
(d) To the extent permitted by U.S. state or local Tax Law, the principles and procedures of this Section 9.12 shall also apply with respect to a Section 338(h)(10) Election or equivalent or comparable provision under U.S. state or local Law.
9.13 Definitions. As used in this ARTICLE IX:
10.1 Conditions to Obligations of Parent and Sellers. The obligations of Parent and Sellers to consummate the transactions contemplated by this Agreement will be subject to the fulfillment (or written waiver by Parent), at or prior to the Closing Date, of each of the following conditions:
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(f) Transition Services Agreement. The form and substance of the Transition Services Agreement shall have been mutually agreed upon by Purchaser and Parent and/or the applicable Sellers (or its or their Subsidiaries), and Purchaser shall have delivered to Parent and/or such Sellers or such Subsidiaries a copy of the Transition Services Agreement, to the extent Purchaser or any of its Subsidiaries is to be a party thereto, duly executed by Purchaser or such Subsidiary (to the extent a party thereto), unless, with respect to the Transition Services Agreement, Parent or a Seller, as applicable, breached its obligation to negotiate the Transition Services Agreement in good faith and in accordance with Section 8.4(a), in which case the conditions set forth in this Section 10.1(f) shall be deemed waived with respect to such Transition Services Agreement.
(g) Guaranty Indemnification Agreement. Purchaser shall have delivered to Parent a copy of the Guaranty Indemnification Agreement, duly executed by Purchaser.
(h) Deliverables. Purchaser shall have delivered or caused to be delivered all closing deliveries set forth in Section 11.2.
(i) Absence of Proceedings. There shall be no Proceeding brought by any Governmental Body pending against any Seller, Purchaser or any of the Purchased Companies or any of their respective Affiliates (i) seeking to enjoin or make illegal, delay or otherwise restrain or prohibit the consummation of the transactions contemplated hereby, (ii) that would result in the transactions contemplated hereby being rescinded following consummation, (iii) seeking material damages in connection with the consummation of the transactions contemplated hereby; (iv) seeking to compel a Purchased Company, Seller, Purchaser or any of their Affiliates to dispose of or hold separate any material assets as a result of the Transactions; or (v) seeking to impose any criminal sanctions or Liability on a Purchased Company, Seller, Purchaser or any of their Affiliates in connection with the transactions contemplated hereby.
10.2 Conditions to Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated by this Agreement will be subject to the fulfillment (or written waiver by Purchaser), at or prior to the Closing Date, of each of the following conditions:
(a) Accuracy of Representations and Warranties. The representations and warranties of Parent and Sellers contained in this Agreement shall be true and correct in all material respects (disregarding all qualifications as to knowledge and materiality (including any qualifications as to Material Adverse Effect) contained in the text of the representation and warranty) as of the Closing Date as if made on and as of such date (other than representations and warranties which address matters only as of a certain date which shall be accurate as of such certain date), except for inaccuracies that, individually or in the aggregate, do not constitute and could not reasonably be expected to have a Material Adverse Effect.
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11.1 Deliveries by Parent and Sellers. At the Closing, Parent and Sellers shall deliver or cause to be delivered to Purchaser all of the following, and in the case of executed agreements, documents or instruments, in each case executed by a duly authorized representative of the party on such partys behalf:
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11.2 Deliveries by Purchaser. At the Closing, Purchaser shall deliver or cause to be delivered to Parent all of the following, and in the case of executed agreements, documents or instruments, in each case executed by a duly authorized representative of Purchaser (or its applicable designee) on Purchasers (or such designees) behalf:
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12.1 Non-Competition. Parent and each Seller agrees that, except with respect to the Restricted Areas in which the Excluded Businesses operate, from and after the date of this Agreement until three (3) years after the Closing Date (the Non-Competition Period) it shall not, and it shall cause its Subsidiaries not to, directly or indirectly, in the Restricted Areas:
Notwithstanding anything to the contrary in the foregoing, nothing in this Section 12.1 shall (i) prevent Parent, any Seller or any of their respective Subsidiaries from selling or divesting any or all of its assets or businesses to any Person that is not an Affiliate of Parent or a Seller, and such Person shall in no way be bound by the restrictions set forth in this Section 12.1 or (ii) prohibit Parent, any Seller or any of their respective Subsidiaries from acquiring the whole or any part of a Person which engages in any Competitive Activity in any of the Restricted Areas or the whole or any part of a business which includes any Competitive Activity in any of the Restricted Areas where such Competitive Activities of such Person or business represent less than twenty percent (20%) of the revenues or generated less than $200,000,000 of revenues within the last twelve (12) months for of such Person or business acquired as set out in the latest available annual financial statements of that Person or business.
12.2 Non-Solicitation.
12.3 Specific Performance. Parent, Sellers and Purchaser recognize and affirm that in the event of breach by it or any of its Subsidiaries of any of the provisions of this ARTICLE XII, money damages would be inadequate and the other party would have no adequate remedy at law. Accordingly, Parent, Sellers and Purchaser agree that the other party shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and the other partys obligations under this ARTICLE XII not only by an action or actions for damages, but also by an action or actions for specific performance, injunction and/or other equitable relief in order to enforce or prevent any violations (whether anticipatory, continuing or future) of the provisions of this ARTICLE XII. In the event of a breach or violation by Parent, a Seller or Purchaser of any of the provisions of this ARTICLE XII, the Non-Competition Period or Non-Solicitation Period, as applicable, shall be extended by a period equal to (i) the length of the breach or violation of this ARTICLE XII plus (ii) the length of any court proceedings necessary to stop such breach or violation. Parent, Sellers and Purchaser agree that the other party is not required to post a bond in order for the other party to secure an injunction.
12.4 Severability. If at any time any of the provisions of this ARTICLE XII shall be determined to be invalid or unenforceable by reason of being vague or unreasonable as to duration, area or scope of activity, or otherwise, then this ARTICLE XII shall be considered divisible (with the other provisions to remain in full force and effect) and the invalid or unenforceable provisions shall become and be deemed to be immediately amended to include only such time, area, scope of activity and other restrictions, as shall be determined to be reasonable and enforceable by the court or other body having jurisdiction over the matter, and Parent and each Seller expressly agrees that this Agreement, as so amended, shall be valid and binding as though any invalid or unenforceable provision had not been included herein. Without limiting the foregoing, if the length of the Non-Competition Period is determined to be unacceptable under
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applicable Law, the Non-Competition Period shall be modified as determined by a court or other agency of competent jurisdiction or statute, as applicable, to be of the maximum length permitted under applicable Law.
12.5 Use of Trade Names and Trade Marks
(a) Except as otherwise provided herein, after the Closing, Purchaser shall (and shall cause Purchasers Affiliates to) refrain from using any of the Excluded Sellers IP, and any other Intellectual Property Rights of Sellers or their Subsidiaries not specifically acquired hereunder (including by the acquisition of the Purchased Companies by Purchaser and its Subsidiaries). Without limiting the generality of the foregoing, Purchaser shall (and shall cause Purchasers Affiliates to) specifically refrain from using in any manner the name Tyco, or any variation, derivation, or translation thereof, or any name likely to cause confusion with or dilute such name. For the avoidance of doubt, nothing contained herein shall limit Purchaser from using the name Earth Tech.
(b) As soon as practical after the Closing, but in no event later than 45 days after the Closing Date, Purchaser shall (and shall cause Purchasers Affiliates to), to the extent commercially reasonable and practicable, remove or render illegible all references to the Tyco name, or any variation thereof or any related mark or logo, appearing on any sales, marketing and shipping materials, and any other goods purchased and acquired hereunder; provided that if such removal or rendering illegible would cause such sales, marketing and shipping materials or such other goods to become unusable, or is otherwise not commercially reasonable and practicable, Purchaser (or Purchasers Affiliates) shall be entitled to use such sales, marketing and shipping materials or such other goods in the ordinary course of Purchasers business for a period of three (3) consecutive months following the Closing Date without modifying such references. Any use of the Tyco name by Purchaser (or Purchasers Affiliates) pursuant to this Section 12.5(b) shall: (i) be in conformity with the practices of Sellers and their Subsidiaries as of the Closing Date, (ii) be in a manner that does not in any way harm or disparage Sellers or their Affiliates or the reputation or goodwill of the Tyco name, and (iii) be contingent on Purchaser (or Purchasers Affiliates) maintaining the quality of goods and services used in connection with the Tyco name at a standard at least as high as that of the goods and services offered and sold by Sellers and their Subsidiaries as of the Closing Date.
(c) Purchaser acknowledges and agrees that the Tyco name is not owned by Sellers, but is licensed to Tyco International Services Holding GmbH by Tyco International Services GmbH pursuant to that certain License Agreement, dated June 29, 2007, a copy of which has been provided to Purchaser (the License Agreement). Any use of the Tyco name by Purchaser (or Purchasers Affiliates) as permitted hereunder is expressly conditioned upon compliance by Purchaser (and Purchasers Affiliates) with the relevant provisions of that certain License Agreement applicable to Tyco International Services Holding GmbH. Notwithstanding anything to the contrary herein, and without expanding any right granted to Purchaser and its Affiliates in Section 12.5(b), in the event of a conflict between the terms of this Agreement (as such terms
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relate to Purchasers and its Affiliates use of the Tyco name) and the terms of the License Agreement, the terms of the License Agreement shall control.
(d) As soon as practical after the Closing, but in no event later than one-hundred and twenty (120) days after the Closing Date, Sellers shall (and shall cause their Subsidiaries to) take all required action, including the filing of an amendment to any certificates of incorporation, to change any name of Sellers or their Subsidiaries, if applicable, to a name that does not include the phrase Earth Tech, or a phrase confusingly similar thereto. During such one-hundred and twenty-day period, Sellers and their Subsidiaries shall be entitled to continue using any sales, marketing and shipping materials, and to sell off existing inventory of products, that bear the Earth Tech name. Any use of the Earth Tech name by Sellers or their Subsidiaries pursuant to this Section 12.5(d) shall: (i) be in conformity with the practices of Sellers and their Subsidiaries as of the Closing Date, (ii) be in a manner that does not in any way harm or disparage the reputation or goodwill of the Earth Tech name, and (iii) be contingent on Sellers and their Subsidiaries maintaining the quality of goods and services used in connection with the Earth Tech name at a standard at least as high as that of the goods and services offered and sold by Sellers and their Subsidiaries as of the Closing Date.
ARTICLE XIII
INDEMNIFICATION
13.1 Losses Defined.
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13.2 Indemnification by Parent and Sellers. Subject to the other terms, conditions and limitations of this Agreement (including the provisions of Sections 13.4 and 13.5), Parent and Sellers agree to jointly and severally indemnify Purchaser and its Subsidiaries (including the Purchased Companies and their Subsidiaries) (the Purchaser Indemnified Parties) against, and to hold the Purchaser Indemnified Parties harmless from, all Losses suffered or incurred by any of the Purchaser Indemnified Parties to the extent arising out of or related to:
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13.3 Indemnification by Purchaser. Purchaser agrees, subject to the other terms, conditions and limitations of this Agreement (including the provisions of Sections 13.4 and 13.5), to indemnify Parent, Sellers and their respective Subsidiaries (the Seller Indemnified Parties) against, and hold the Seller Indemnified Parties harmless from, all Losses suffered or incurred by any of the Seller Indemnified Parties to the extent arising out of or related to:
13.4 Limitations on Indemnification
13.5 Procedures for Indemnification.
ARTICLE XIV
TERMINATION AND WAIVER
14.1 Termination. This Agreement may be terminated:
14.2 Effect of Termination. In the event of termination in accordance with Section 14.1, this Agreement will forthwith become void and there will be no Liability on the part of any party hereto, except Sections 8.5, 8.10, this 14.2 and ARTICLE XV shall survive termination; provided, however, that nothing in this Section 14.2 shall relieve any party from Liability for Losses caused by breach of any of its representations, warranties, covenants or agreements set forth in this Agreement occurring prior to such termination.
ARTICLE XV
GENERAL PROVISIONS
15.1 Expenses. Except as otherwise specifically provided for in this Agreement, all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby will be paid by the party incurring such costs and expenses, whether or not the Closing will have occurred.
15.2 Notices. All notices, requests, claims, demands and other communications hereunder will be in writing and will be given or made (and will be deemed to have been duly given or made upon receipt) by delivery in person, by courier service, by confirmed telecopy (with a copy sent by another means specified herein), or by registered or certified mail (postage prepaid, return receipt requested) to the parties at the following addresses (or at such other address for a party as will be specified by like notice):
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Tyco International Finance S.A. |
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29, Avenue de la Porte-Neuve |
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L-2227 Luxembourg |
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Attn:Enrica Maccarini |
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Fax:352 266 37891 |
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with a copy to: |
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Tyco International Management Company |
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9 Roszel Road |
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Princeton, New Jersey 08540 |
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Mark Armstrong |
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Andrea Goodrich |
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Fax:609-720-4319 |
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with a copy to: |
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Kirkland & Ellis LLP |
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200 East Randolph Drive |
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Chicago, IL 60601 |
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R. Scott Falk, P.C. |
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R. Henry Kleeman |
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Fax:(312) 861-2200 |
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(b) If to Purchaser: |
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AECOM Technology Corporation |
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555 S. Flower Street, Suite 3700 |
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Los Angeles, CA 90071 |
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Attn: |
Eric Chen |
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Latham & Watkins LLP |
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Charles K. Ruck |
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David B. Allen |
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15.3 Severability. If any term or other provision of this Agreement is held invalid, illegal or incapable of being enforced by any rule of Law or public policy, all other terms and provisions of this Agreement will nevertheless remain in full force and effect and there shall be deemed substituted for the provision at issue a valid, legal and enforceable provision that effects the original intent of the parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
15.4 Entire Agreement. This Agreement and the Ancillary Agreements, together with the Confidentiality Agreement, constitute the entire agreement of the parties hereto with respect to the subject matter hereof and supersede all prior agreements and undertakings with respect to the subject matter hereof, both written and oral.
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15.5 Assignment. This Agreement shall not be assigned by any party without the prior written consent of the non-assigning parties, provided, however, that Parent, Sellers or Purchaser may, without obtaining the prior written consent of the other parties hereto, assign any of its rights, or delegate any of its obligations under this Agreement to any Affiliate or Subsidiary, provided that Parent, Sellers and Purchaser shall, in each case, remain obligated for the performance of their respective obligations under this Agreement.
15.6 No Third-Party Beneficiaries. Except as otherwise expressly provided in ARTICLE II or ARTICLE XIII, this Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
15.7 Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by each of the parties.
15.8 Governing Law. This Agreement will be governed by, and construed in accordance with, the Laws the state of New York, without regard to the principles of choice of Law or conflicts or Law of any jurisdiction.
15.9 Public Announcements. From and after the date hereof through (and including) the Closing Date, the timing and content of all press releases or other written public announcements regarding any aspect of this Agreement to the financial community, Governmental Bodies, employees or the general public by Purchaser, on the one hand, or Parent and Sellers, on the other hand, shall be subject to prior consultation with and the consent of the other (which shall not be unreasonably withheld or delayed); provided, however, that a party may, without the prior consent of any other party, issue such a press release or other similar public statement as may be required by applicable Law or any listing agreement with a securities exchange to which the disclosing party is a party, if the disclosing party has used all reasonable efforts to consult with the other and to obtain the others consent but has been unable to do so in a timely manner.
15.10 Waiver of Jury Trial. EACH PARTY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT, THE ANCILLARY AGREEMENTS OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN OR THEREIN, AND AGREES TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.
15.11 Time Periods. Unless specified otherwise, any action required hereunder to be taken within a certain number of days shall be taken within that number of calendar days (and not business days); provided, however, that if the last day for taking such action falls on a weekend or a holiday in the United States, the period during which such action may be taken shall be automatically extended to the next business day.
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15.12 Waiver. Each party to this Agreement may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties of the other parties contained herein or in any document delivered by the other party pursuant hereto or (c) waive compliance with any of the agreements of the other parties or conditions to such parties obligations contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to be bound thereby. Except where a specific period for action or inaction is provided herein, neither the failure nor any delay on the part of any party in exercising any right, power or privilege under this Agreement or the documents referred to in this Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any such right, power or privilege, nor any single or partial exercise of any such right, power or privilege, preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. The failure of a party to exercise any right conferred herein within the time required shall cause such right to terminate with respect to the transaction or circumstances giving rise to such right, but not to any such right arising as a result of any other transactions or circumstances
15.13 Execution of Agreement. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile or electronic mail transmission shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.
[SIGNATURE PAGE(S) FOLLOW]
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IN WITNESS WHEREOF, Parent, Sellers and Purchaser have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.
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PARENT: |
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TYCO INTERNATIONAL |
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SELLERS: |
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STRALEN
INVESTMENTS |
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TYCO
INTERNATIONAL |
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TYCO HOLDING XI
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TYCO
ASIA INVESTMENTS |
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[ Signature Page to Purchase Agreement ]
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KEYSTONE
FRANCE HOLDINGS |
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By: |
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TYCO
SERVICES MALAYSIA |
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EARTH TECH DEUTSCHLAND
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EARTH
TECH |
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EARTH
TECH KLARTECHNIK |
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EARTH
TECH ENGINEERING Pty |
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By: |
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[ Signature Page to Purchase Agreement ]
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EARTH TECH HOLDINGS, INC. |
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By: |
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Name: |
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Its: |
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EARTH TECH HOLDINGS TAC, INC. |
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By: |
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[ Signature Page to Purchase Agreement ]
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PURCHASER: |
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AECOM TECHNOLOGY |
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By: |
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[ Signature Page to Purchase Agreement ]
EXHIBIT A
BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT
This BILL OF SALE, ASSIGNMENT AND ASSUMPTION AGREEMENT (this Agreement), dated as of [ ], 2008, is made by and among Tyco International Finance S.A., a company organized under the laws of Luxembourg (Parent), Earth Tech Engineering Pty Limited, a company organized under the laws of Australia, Earth Tech Deutschland GmbH, a company organized under the laws of Germany, Earth Tech Umwelttechnik GmbH, a company organized under the laws of Germany, and Earth Tech Klartechnik GmbH, a company organized under the laws of Germany (each a Company, collectively, the Companies and the Companies together with Parent, Sellers) and AECOM Technology Corporation, a corporation organized under the laws of Delaware (Purchaser). Each of Sellers and Purchaser is a Party and collectively they are the Parties to this Agreement. Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Purchase Agreement.
WHEREAS, pursuant to that certain Purchase Agreement (the Purchase Agreement), dated as of February 11, 2008 by and among the Parties and certain affiliates of Sellers, Sellers have agreed to assign to Purchaser and Purchaser has agreed to assume from Sellers, for the consideration and upon the terms and conditions set forth in the Purchase Agreement, the Purchased Assets and Assumed Liabilities;
WHEREAS, Sellers desire to deliver to Purchaser such instruments of sale, transfer, conveyance, assignment and delivery as are required to vest in Purchaser all of Sellers right, title and interest in and to the Purchased Assets and Assumed Liabilities; and
WHEREAS, Purchaser desires to deliver to Sellers such instruments as are required in order to effectuate and evidence the assumption by Purchaser of the Purchased Assets and Assumed Liabilities.
NOW, THEREFORE, in accordance with the terms and conditions of the Purchase Agreement and in consideration of the mutual promises contained therein, and for other good and valuable consideration, the receipt and sufficiency of which Sellers and Purchaser each acknowledge, the Parties agree as follows:
1. Assignment of Purchased Assets. effective as of the closing, sellers hereby sell, grant, transfer, contribute, assign, convey and deliver to, and vest in purchaser and its successors and assigns, all right, title and interest, legal and equitable, in and to all of the purchased assets.
2. Assumption of Assumed Liabilities. upon the terms and subject to the conditions set forth in the purchase agreement, purchaser hereby assumes all of the assumed liabilities.
3. Non-Assignable Assets. nothing in this agreement, express or implied, is intended or shall be construed to constitute the conveyance, assignment, transfer or assumption of any purchased asset or assumed liability that by its terms or by operation of law cannot be conveyed, assigned, transferred or assumed without approval or consent, unless such approval or consent has been obtained on or prior to the date hereof. in the event such approval or consent has not been obtained on or prior to the date hereof, then any such purchased asset or assumed liability shall be conveyed, assigned, transferred and assumed as soon as such approval or consent has been obtained.
4. Conflicts. nothing in this agreement shall be deemed to supersede, enlarge or modify any of the provisions of the purchase agreement, all of which shall survive the execution and delivery of this agreement as provided in, and subject to the limitations set forth in, the purchase agreement. if any conflict exists between the terms of this agreement and the terms of the purchase agreement, the terms of the purchase agreement shall govern and control.
5. Further Assurances.
6. No Third Party Beneficiaries. This agreement shall not confer any rights or remedies upon any person other than purchaser and sellers and their respective successors and assigns.
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7. Governing Law; Waiver of Jury Trial. This agreement will be governed by, and construed in accordance with, the laws the state of new york, without regard to the principles of choice of law or conflicts or law of any jurisdiction. THE PARTIES HEREBY EXPRESSLY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY OR AGAINST ANY OF THEM RELATING TO THIS AGREEMENT.
8. Effective Date. This agreement shall be effective as of the closing.
9. Counterparts. This agreement may be executed in any number of counterparts (including by means of facsimile), each of which shall be deemed an original and all of which together shall constitute one and the same instrument.
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EXHIBIT A
IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Bill of Sale, Assignment and Assumption Agreement as of the date first above written.
PURCHASER
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AECOM TECHNOLOGY |
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EXHIBIT A
SELLERS
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TYCO INTERNATIONAL FINANCE S.A. |
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EARTH
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EARTH TECH DEUTSCHLAND GMBH |
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EARTH
TECH UMWELTTECHNIK |
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EXHIBIT B
GUARANTY INDEMNIFICATION AGREEMENT
This GUARANTY INDEMNIFICATION AGREEMENT (this Agreement) is made as of the day of , 2008, between TYCO INTERNATIONAL FINANCE S.A. (TIFSA), a company organized under the laws of Luxembourg, TYCO INTERNATIONAL LTD. (TIL), a company organized under the laws of Bermuda (TIFSA and TIL collectively, the Parent), and AECOM TECHNOLOGY CORPORATION, a Delaware corporation (Purchaser). Capitalized terms used herein have the meanings assigned to them in Section 1 below.
WHEREAS, pursuant to a Purchase Agreement dated as of February 11, 2008 by and among Purchaser, TIFSA and certain Subsidiaries and Affiliates of TIFSA, (the Purchase Agreement), Purchaser has agreed to acquire the Business from TIFSA and various Subsidiaries and Affiliates of TIFSA;
WHEREAS, following the closing of the transactions contemplated in the Purchase Agreement, Parent and Parents Subsidiaries may continue to be liable or contingently liable to third persons for the benefit of the Business pursuant to certain guarantees and related obligations; and
WHEREAS, as part of Purchasers consideration under the Purchase Agreement for the acquisition of the Business, Purchaser has agreed to indemnify Parent pursuant to the terms of this Agreement.
NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby enter into this Agreement.
Section 1. Definitions. As used in this Agreement the following terms shall have the following meanings (capitalized terms not otherwise defined herein shall have the respective meanings assigned to them in the Purchase Agreement):
Affiliate means, with respect to a specified Person, any other Person that directly or indirectly controls, is controlled by or is under common control with such specified Person.
Amount of Obligations shall mean the amount of the aggregate liability or contingent liability of Parent or any of Parents Subsidiaries under the Obligations. The Amount of Obligations, as of the date of this Agreement, is set forth on Schedules A-1 and A-2 hereto.
Assumed Obligation shall mean those guaranties (including bank guarantees) and indemnities, maintained by, on behalf or, or for the benefit of the Business, whereby Parent
or any Parent Subsidiary is obligated to pay, reimburse, or indemnify any Person who is not an Affiliate of Parent, as set forth on Schedule A-1 hereto.
Beneficiary means every beneficiary of an Obligation and every successor and permitted assign thereof.
Business Day means any day other than (i) any Saturday or Sunday or (ii) any other day on which banks located in New York, New York generally are closed or authorized by Law to be closed for business.
Certificate shall have the meaning set forth in Section 10(c).
Closing Date shall have the meaning assigned to it in the Purchase Agreement.
Default Rate shall have the meaning set forth in Section 28 below.
Event of Default shall have the meaning set forth in Section 12 below.
Interest Rate shall have the meaning set forth in Section 29 below.
Obligations shall mean the Assumed Obligations and the Retained Obligations.
Obligation Demand shall mean any demand made on Parent or any of Parents Subsidiaries for performance or payment under an Obligation by the obligee thereof.
Outstanding Amount of Obligations shall mean: (a) the Amount of Obligations minus (b) the sum of (i) the Amount of Obligations with respect to which all liability of Parent and Parents Subsidiaries, potential or actual, has been released, expired or otherwise terminated plus (ii) any amount by which any Obligation has been automatically reduced in accordance with the terms of such Obligation.
Parent shall have the meaning set forth in the preface above.
Parent Payment shall mean any payment whatsoever made by Parent or any Subsidiary of Parent with respect to any Obligation on or after the Closing Date in accordance with the terms of such Obligation to the Beneficiary thereof.
Person means any natural person, firm, corporation, limited liability company, partnership, incorporated or unincorporated association, joint venture, joint stock company, Governmental Body, trust or any other entity of any kind.
Prime Rate means the rate of interest per annum published by the Wall Street Journal from time to time as the prime lending rate.
Project means any design, engineering, construction or financing project that Parent or any of Parents Subsidiaries has undertaken, or is undertaking, in connection with the Business and that is either the subject of an Underlying Contract or an Obligation.
Purchase Agreement shall have the meaning set forth in the preface above.
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Purchaser shall have the meaning set forth in the preface above.
Reimbursement Demand shall mean a written notice from Parent to Purchaser of any amount due and payable by Purchaser to Parent pursuant to this Agreement.
Retained Obligation shall mean those guarantees (including bank guarantees) and indemnities maintained by , or on behalf of, or for the benefit of the Business (and which relate to completed or substantially completed projects) whereby Parent or any Parent Subsidiary or Affiliate is obligated to pay, reimburse or indemnify any Person who is not an Affiliate of Parent set forth on Schedule A-2 hereto.
Underlying Contract means each and every contract, agreement, undertaking or commitment, the performance or payment of which is secured by an Obligation.
Section 2. Reimbursement for Parent Payment.
Section 3. Unconditional Obligations of Purchaser. Purchasers obligations under this Agreement shall not be subject to any reduction, limitation, impairment or termination for any reason. Purchasers obligation under this Agreement shall be absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under all circumstances whatsoever, notwithstanding (a) any lack of validity or enforceability of the Underlying Contract, (b) any amendment or waiver of, or any consent to or departure from, all or any of the documents and agreements in connection with any Obligation, (c) the existence of any claim, set-off, defense or other right to which Purchaser thereof may have at any time against the Parent or any Parent Subsidiary or the Beneficiary, (d) any breach of contract or other dispute between Purchaser and the Beneficiary or any other Person, whether or not related to this Agreement, an Underlying Contract or any Obligation, or (e) any delay, extension of time, renewal, compromise or other indulgence granted or agreed to by Parent, with or without notice to or approval by Purchaser thereof.
Section 4. No Liability for Certain Acts. Neither Parent nor any of Parents Subsidiaries shall assume liability or responsibility for any of the following: (a) any acts or omissions of any Beneficiary or any Person purporting to act on behalf of the Beneficiary, (b) the form, validity, sufficiency, correctness, genuineness or legal effect of any demand, instrument, draft, document, certificate or other writing given to Parent or any Parent Subsidiary in
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connection with any Obligation, or of any signatures or endorsements thereon, (c) any payment by Parent or any Parent Subsidiary that does not comply with the terms and conditions of any Obligation, except where such variance from the terms and conditions of the Obligations arises solely from Parents or such Subsidiarys gross negligence or willful breach of the applicable Underlying Contract, (d) the failure of any Beneficiary to meet any obligation owed to Purchaser, (e) any act, omission, error, breach, negligence, gross negligence or misconduct of any Beneficiary and (f) any error, inaccuracy, omission, interruption or delay in transmission or delivery of any message, direction or correspondence. The occurrence of one or more of the contingencies referred to in this Section shall not affect, impair or prevent the vesting of any of Parents or such Subsidiarys rights or powers under this Agreement or the obligations of Purchaser to reimburse Parent for any Parent Payment under this Agreement.
Section 5. Indemnification. Purchaser agrees to indemnify and hold Parent and its Subsidiaries harmless from any damages, losses, liabilities, claims, penalties, judgments, costs and expenses paid, suffered or incurred by Parent or Parents Subsidiaries, including reasonable attorneys fees and expenses, arising out of, or in connection with
Section 6. Release of Parent. Until the termination and full release of each Assumed Obligation, Purchaser shall use its best efforts to cause Parent and its Subsidiaries to be released from all such Assumed Obligations, including through the substitution of such Obligations with replacement guarantees or obligations by Purchaser or Purchasers Subsidiaries; provided, however, that (i) Purchaser and its Subsidiaries shall not be required to amend, supplement or modify the Underlying Contract or take any action with respect to any Project and (ii) Parent and its Subsidiaries shall not be required to pay or commit to pay (or incur any obligation) other than nominal filing or application fees and the expenses of Parent and its Subsidiaries, except as otherwise required by law or the Underlying Contract or such Obligation. The parties also recognize and agree that Parent and its Subsidiaries may not be released from certain Assumed Obligations until their termination or expiration thereof. The parties recognize and acknowledge that Purchaser will use commercially reasonable efforts to replace the Assumed Obligations, but nothing contained herein or in the Purchase Agreement shall require Purchaser or its Subsidiaries to replace any Obligation.
Section 7. Parents Continuance of Obligations. From and after the Closing, neither Parent nor any of its Subsidiaries shall have any obligation to extend, renew or increase the principal amount of any Obligation or create or enter into any new or additional Obligations.
Section 8. Notice to Purchaser. Parent and Parents Subsidiaries shall give Purchaser written notice (i) ten (10) Business Days prior to making any payment under any Obligation or, (ii) if Parent or Parents Subsidiaries are required pursuant to the terms of the
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Obligation Demand to make such payment in fewer than ten (10) Business Days, as soon as practicable after receipt of such Obligation Demand.
Section 9. No Modification of Obligations, Projects or Underlying Contracts by Purchaser.
Section 10. Information Requirements.
Section 11. Limitation of Liability. Notwithstanding any other provision of this Agreement, in no event shall any party to this Agreement be liable, regardless of whether any claim is based on contract or tort, for any special or incidental damages to any other such party arising out of or in connection with this Agreement or any Obligation.
Section 12. Event of Default.
Section 13. Standby Letter of Credit. Following the occurrence of any Event of Default, Purchaser shall post a stand-by letter of credit in the form attached hereto as Schedule B in favor of Parent in an amount equal to $ . Such letter of credit shall give Parent the unconditional right to draw on the letter of credit in order to fulfill the reimbursement obligations of Purchaser hereunder (but only at the time and to the extent of a Parent Payment).The posting of such letter of credit shall not relieve Purchaser of its obligations hereunder. Purchaser shall be obligated to maintain the letter of credit until the unconditional release, expiration or termination of all Assumed Obligations. If the letter of credit is scheduled to expire and Purchaser does not obtain, at least thirty (30) days prior to the scheduled expiration date of the letter of credit, an irrevocable written commitment to renew the letter of credit or to issue a replacement letter of credit, Parent shall be entitled to draw an amount under the letter of credit equal to the Outstanding Amount of Assumed Obligations. Any amounts so drawn by Parent and not subsequently used to reimburse Parent from any Parent Payment shall be repaid to Purchaser upon the termination of this Agreement.
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Section 14. Subrogation. In the event of payment by or on behalf of Purchaser in connection with any Obligation, Purchaser shall be subrogated to and shall stand in the place of Parent or its Subsidiaries, as applicable, as to any rights of Parent or its Subsidiaries against any Beneficiary or other Person.
Section 15. Defense of Claims and Cooperation. Purchaser shall have the right to participate in the defense of all claims brought by any Beneficiary in connection with any Obligation. In the event that Purchaser (a) gives notice to Parent that it would be liable to Parent under the provisions hereof for indemnity if such claim is successful and (b) that it disputes and intends to defend such claim at its own cost and expense, and (c) that it will fully and promptly indemnify Parent against all expenses, costs, and other liabilities relating to such claim and, provided that Parent will not be required to incur any cost or expense with respect to the defense of such claim, then Purchaser, at its option, shall have the right to assume the defense thereof. Parent and Parents Subsidiaries agree to provide their reasonable cooperation with Purchaser in defense of such claims, including with respect to any defenses Parent or Parents Subsidiaries have against such claims and by making employees, information and documentation reasonably available; provided, however, that Parent and Parents Subsidiaries shall not be required to pay or commit to pay (or incur any obligation) other than nominal filing or application fees and the expenses of Parent or Parents Subsidiaries.
Section 16. Remedies. Parent shall be entitled to pursue any and all remedies available at law or in equity in connection with any failure by Purchaser to make any payment when due under this Agreement or any other breach of the terms of this Agreement (regardless of whether such failure or breach constitutes an Event of Default).
Section 17. Waiver. No delay, extension of time, renewal, compromise, or other indulgence which may occur or be granted by Parent under this Agreement from time to time shall impair Parents rights or powers under this Agreement. Parent shall not be deemed to have waived any of its rights under this Agreement, unless Parent shall have signed such a waiver in writing. No such written waiver shall be effective as to any transactions or events of default occurring subsequent to the date of such waiver unless expressly so provided therein.
Section 18. Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction, shall be, only as to such jurisdiction ineffective to the extent of such prohibition or unenforceability, but all of the remaining provisions of this Agreement shall remain valid.
Section 19. Assignment. This Agreement shall not be assigned by Purchaser without the prior written consent of Parent provided, however, Purchaser may, without obtaining the prior written consent of Parent or Parents Subsidiaries, assign any of its rights or delegate any of its obligations under this Agreement to any Affiliate or Subsidiary of Purchaser (so long as Purchaser remains obligated for the performance of its obligations under this Agreement).
Section 20. Waiver of Jury Trial. EACH PARTY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY DISPUTE IN CONNECTION WITH OR RELATING TO THIS AGREEMENT OR ANY MATTERS DESCRIBED OR CONTEMPLATED HEREIN AND
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AGREES TO TAKE ANY AND ALL ACTION NECESSARY OR APPROPRIATE TO EFFECT SUCH WAIVER.
Section 21. Governing Law. This Agreement will be governed by, and construed in accordance with, the laws the state of New York, without regard to the principles of choice of law or conflicts or law of any jurisdiction.
Section 22. Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule of strict construction shall be applied against any party. The word including shall mean including without limitation.
Section 23. Notice. All notices, requests, claims, demands and other communications hereunder will be in writing and will be given or made by delivery in person, by courier service, by confirmed telecopy (with a copy sent by other means specified herein), or by registered or certified mail (postage prepaid, return receipt requested). All such communications shall be deemed to have been received immediately, if hand delivered; when transmitted, if transmitted by facsimile or similar electronic transmission; two working days after being sent by recognized courier via overnight service; and three days after being postmarked, if mailed first class mail or certified mail, return receipt requested, with postage paid. All such communications shall be sent to the parties at the following addresses (or at such other address for a party as will be specified by like notice):
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Tyco International Finance S.A. |
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Kirkland & Ellis LLP |
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9 Roszel Road |
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200 East Randolph Drive |
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Princeton, NJ 08540 |
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Chicago, IL 60601 |
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Attention: |
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R. Scott Falk |
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R. Henry Kleeman |
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Telephone No.: (312) 861-2000 |
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Facsimile No.:(312) 861-2200 |
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If to Purchaser: |
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AECOM Technology Corporation |
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Latham & Watkins LLP |
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555 S. Flower Street, Suite 3700 |
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650 Town Center Drive, 20th Floor |
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Los Angeles, CA 90071 |
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Costa Mesa, CA 92626 |
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Attention: |
Eric Chen, Senior Vice President, |
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Charles K. Ruck |
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Corporate Finance and General |
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Steven B. Stokdyk |
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Counsel |
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Section 24. Entire Agreement. This Agreement and the Purchase Agreement constitute the entire agreement of Parent and Parents Subsidiaries, on the one hand, and Purchaser, on the other hand, with respect to the matters set forth herein, and
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supersede all prior agreements and undertakings with respect to the subject matter hereof, both written and oral.
Section 25. Amendment. This Agreement may not be amended or modified except by an instrument in writing signed by each of the parties.
Section 26. No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their Subsidiaries, Affiliates and permitted assigns, and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
Section 27. Execution of Agreement. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile or electronic mail transmission shall constitute effective execution and delivery of this Agreement as to the Parties and may be used in lieu of the original Agreement for all purposes.
Section 28. Headings. The Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.
Section 29. Interest. Notwithstanding anything to the contrary herein, interest shall accrue on all amounts owed to Parent pursuant to Section 2 at a rate per annum equal to the lesser of Prime Rate plus 2% per annum or the highest rate allowed by law (the Interest Rate) for the period commencing on the date on which a Parent Payment has been made and ending on the date that is five Business Days following Purchasers receipt of a Reimbursement Demand (the Due Date). During the period commencing on the day immediately following the Due Date until the date on which the Purchasers obligations to Parent have been paid in full, any amount owing to the Parent which was not paid on or by the Due Date shall accrue interest at a rate per annum equal to the lesser of 20% per annum or the highest rate allowed by law (the Default Rate).
Section 30. Relationship of the Parties. The parties hereto are independent contractors and neither party is an employee, partner or joint venturer of the other. Under no circumstances shall any of the employees of a party hereto be deemed to be employees of the other party for any purpose. Neither party shall have the right to bind the other to any agreement with a third party nor to represent itself as a partner or joint venturer of the other.
Section 31. Purchase Agreement. Nothing herein is intended to modify, limit or otherwise affect the representations, warranties, covenants, agreements and indemnifications contained in the Purchase Agreement, and such representations, warranties, covenants, agreements and indemnifications shall remain in full force and effect in accordance with the terms of the Purchase Agreement.
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Section 32. Termination. This Agreement will terminate when Parent and its Subsidiaries no longer have any obligations or liability, contingent or otherwise, under any Obligation.
Section 33. Time Periods. Unless specified otherwise, any action required hereunder to be taken within a certain number of days shall be taken within that number of calendar days (and not business days); provided, however, that if the last day for taking such action falls on a weekend or a holiday in the United States, the period during which such action may be taken shall be automatically extended to the next business day.
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IN WITNESS WHEREOF, the undersigned have executed and delivered this agreement as of the date first written.
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TYCO INTERNATIONAL LTD. |
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AECOM Technology Corporation |
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Exhibit C
ESCROW AGREEMENT
Made as of l, 2008
Between
AECOM TECHNOLOGY CORPORATION
(Purchaser)
and
TYCO INTERNATIONAL HOLDING S.A.R.L.
(Seller)
and
MCMILLAN BINCH MENDELSOHN LLP
(the Escrow Agent)
MCMILLAN BINCH LLP
TABLE OF CONTENTS
RECITALS |
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1 |
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Section 1 INTERPRETATION |
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1.1 |
Definitions. |
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1.2 |
Headings and Table of Contents. |
2 |
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1.3 |
References. |
2 |
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1.4 |
Number and Gender. |
2 |
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1.5 |
Time of Day. |
2 |
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1.6 |
Business Day. |
3 |
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1.7 |
Severability. |
3 |
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1.8 |
Schedules. |
3 |
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Section 2 APPOINTMENT |
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2.1 |
Appointment. |
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Section 3 PAYMENT INTO ESCROW AND ACKNOWLEDGEMENT |
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3.1 |
Withheld Amount. |
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3.2 |
Reduction of Withheld Amount. |
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3.3 |
Direction |
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Section 4 HOLDING OF ESCROW FUNDS |
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4.1 |
Escrow. |
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4.2 |
Investment of Withheld Amount. |
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Section 5 DISTRIBUTION OF ESCROW FUNDS |
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5.1 |
Distributions. |
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5.2 |
Directions. |
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Section 6 ESCROW AGENT |
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6.1 |
General. |
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6.2 |
Duties and Liabilities of Escrow Agent. |
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6.3 |
Disputes. |
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6.4 |
Resignation of Escrow Agent. |
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6.5 |
Removal of Escrow Agent. |
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6.6 |
Appointment of New Escrow Agent. |
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6.7 |
Failure to Appoint Replacement Agent. |
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6.8 |
New Escrow Agent. |
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6.9 |
No Agency. |
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6.10 |
Indemnity. |
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6.11 |
Discharge from Duties. |
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6.12 |
Expenses. |
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6.13 |
Waiver of Claims. |
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6.14 |
Consolidation of Escrow Agent. |
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Section 7 MISCELLANEOUS |
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7.1 |
Further Assurances. |
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7.2 |
Notices. |
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7.3 |
Time. |
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7.4 |
Governing Law. |
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7.5 |
Entire Agreement. |
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7.6 |
Severability. |
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7.7 |
Execution in Counterparts. |
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Schedule A Investment Direction |
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Schedule B Payment Direction |
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ESCROW AGREEMENT
This Agreement is made as of l, 2008, between
AECOM TECHNOLOGY CORPORATION, a corporation
formed under the laws of Delaware
(Purchaser)
and
TYCO INTERNATIONAL HOLDING
S.A.R.L., a corporation
formed under the laws of Luxembourg
(Seller)
and
MCMILLAN BINCH MENDELSOHN LLP, located in Toronto
(the Escrow Agent)
RECITALS
A. Seller and Purchaser are parties to a Purchase Agreement made as of February 11, 2008 (the Purchase Agreement) under which Purchaser acquired from Seller 10,488,650 shares in Earth Tech (Canada) Inc. (the Shares);
B. Purchaser has agreed pursuant to Section 2.8(b) of the Purchase Agreement to deliver any Withheld Amount to the Escrow Agent to be held and distributed by the Escrow Agent in accordance with this Agreement.
FOR VALUE RECEIVED, the parties agree as follows:
SECTION 1 INTERPRETATION
1.1 Definitions.
All capitalized terms defined in the Purchase Agreement that are not defined in this Agreement shall have the meaning ascribed to them in the Purchase Agreement. In this Agreement:
(1) Agreement means this escrow agreement, all attached schedules and any agreement or schedule supplementing or amending this agreement.
(2) Business Day means any day of the week other than a Saturday, Sunday or statutory or civic holiday observed in Toronto, Canada.
(3) Deadline means the 28th day after the last day of the month in which the Closing Date falls or such later date or event provided, in writing, by the Canada Revenue Agency prior to which no amount of the Purchase Price is required to be remitted under section 116(5) of the Income Tax Act (Canada).
(4) Purchase Agreement has the meaning ascribed thereto in the recitals.
(5) Shares has the meaning ascribed thereto in the recitals.
(6) Tax Act means the Income Tax Act (Canada), R.S.C. 1985, c.1 (5th Supp.), as amended.
(7) Tax Amount has the meaning given in Section 5.1(3).
(8) Transmission means any electronic means of sending messages, including telex or facsimile transmission, which produces a paper record.
(9) Withheld Amount means an amount withheld pursuant to Section 2.8(b) of the Purchase Agreement in respect of Canadian withholding Taxes subject to reduction under Section 3.2 of this Agreement.
1.2 Headings and Table of Contents.
The division of this Agreement into sections, the insertion of headings and the provision of a table of contents are for convenience of reference only and do not affect the construction or interpretation of this Agreement.
1.3 References.
Unless otherwise specified, all references in this Agreement to Recitals, Sections and Schedules are to the recitals to, sections of, and schedules to, this Agreement, respectively.
1.4 Number and Gender.
Unless otherwise specified, words importing the singular include the plural and vice versa and words importing gender include all genders. The term including shall be interpreted to mean including without limitation.
1.5 Time of Day.
Unless otherwise specified, references to time of day or date mean local time or date in Toronto, Canada.
1.6 Business Day.
If, under this Agreement, any payment is to be made or any other action taken, on a day which is not a Business Day, that payment is to be made, and that other action is to be taken, as applicable, on the next day that is a Business Day.
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1.7 Severability.
If any provision of this Agreement is or becomes illegal, invalid or unenforceable in any jurisdiction, the illegality, invalidity or unenforceability of that provision will not affect:
(a) the legality, validity or enforceability of the remaining provisions of this Agreement; or
(b) the legality, validity or enforceability of that provision in any other jurisdiction.
1.8 Schedules.
The following Schedules are attached to and form part of this Agreement:
Schedule A Investment Direction
Schedule B Payment Direction
SECTION 2 APPOINTMENT
2.1 Appointment.
Seller and Purchaser hereby appoint the Escrow Agent to act, and the Escrow Agent agrees to act, as escrow agent in accordance with the terms and conditions of this Agreement.
SECTION 3 PAYMENT INTO ESCROW AND ACKNOWLEDGEMENT
3.1 Withheld Amount.
Purchaser herewith delivers to the Escrow Agent, and the Escrow Agent hereby acknowledges receipt of US$l payable to McMillan Binch Mendelsohn LLP, in trust. Seller and Purchaser confirm that such amount represents the Withheld Amount, subject to adjustment pursuant to Section 2.6 of the Purchase Agreement, and such amount and any additional Withheld Amount is to be dealt with by the Escrow Agent pursuant to this Agreement.
3.2 Reduction of Withheld Amount.
If, following the determination of the Final Allocation as referenced in Section 2.7 of the Purchase Agreement, US$l represents over 25% of the Purchase Price allocable to the acquisition of the shares of Earth Tech (Canada) Inc.:
(a) Seller and Purchaser shall promptly direct the Escrow Agent, by written direction executed by Seller and Purchaser substantially in the form attached hereto as Schedule B, to pay the excess amount to the Seller;
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(b) following receipt of the direction referenced in (a), the Escrow Agent shall pay the excess amount to the Seller to the extent that the amount has not otherwise been distributed pursuant to Section 5.1 of this Agreement; and
(c) the Withheld Amount shall, for the purposes of this Agreement, be reduced accordingly.
3.3 Direction
The direction referred to in Section 3.2, from Seller and Purchaser to the Escrow Agent, shall not unreasonably be withheld by either Seller or Purchaser.
SECTION 4 HOLDING OF ESCROW FUNDS
4.1 Escrow.
The Withheld Amount, together with any interest earned thereon or other proceeds therefrom, shall be held in trust by the Escrow Agent in accordance with this Agreement.
4.2 Investment of Withheld Amount.
The Escrow Agent shall deposit the Withheld Amount together with any interest earned thereon in an interest bearing trust account or any other account as provided for herein. The Escrow Agent shall invest the Withheld Amount as directed by Seller and Purchaser, such directions to be substantially in the form of Schedule A. The Escrow Agent: (i) makes no representation as to the income, profit, yield or return available or to be earned upon the Withheld Amount, or as to the certainty of return of principal of amounts invested in accordance with the terms hereof; and (ii) shall bear no liability for any failure to achieve the maximum possible or desired yield or return from the Withheld Amount or for loss of principal of amounts invested in accordance with the terms hereof. Seller shall pay all income and other taxes applicable or exigible on any interest or other income it receives on the Withheld Amount.
SECTION 5 DISTRIBUTION OF ESCROW FUNDS
5.1 Distributions.
(1) If, prior to the Deadline, Seller delivers to the Escrow Agent:
(a) a photocopy of a certificate issued by the Minister of National Revenue under section 116(2) of the Tax Act in respect of the disposition of the Shares to Purchaser, together with a direction from Seller and Purchaser to the Escrow Agent, executed by Seller and Purchaser substantially in the form attached hereto as Schedule B, the Escrow Agent shall promptly pay to Seller the Withheld Amount less the amount, if any, by which the portion of the Base Purchase Price allocable to the Shares exceeds the amount specified in such certificate as the
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certificate limit, multiplied by the percentage specified in section 116(5) of the Tax Act, or
(b) a photocopy of a certificate issued by the Minister of National Revenue under section 116(4) of the Tax Act in respect of the disposition of the Shares to Purchaser, together with a direction from Seller and Purchaser to the Escrow Agent, executed by Seller and Purchaser substantially in the form attached hereto as Schedule B, the Escrow Agent shall promptly pay the Withheld Amount (net of any payments previously made by the Escrow Agent under Section 5.1(1)(a)) to Seller.
(2) If, prior to the Deadline, Seller does not deliver to the Escrow Agent,
(a) a photocopy of a certificate issued by the Minister of National Revenue under section 116(2) of the Tax Act in respect of the disposition of the Shares to Purchaser specifying a certificate limit equal or greater than the portion of the Base Purchase Price allocable to the Shares, or
(b) a photocopy of a certificate issued by the Minister of National Revenue under section 116(4) of the Tax Act in respect of the disposition of the Shares to Purchaser,
the Escrow Agent shall, upon receiving a direction from Seller and Purchaser to the Escrow Agent, executed by Seller and Purchaser substantially in the form attached hereto as Schedule B, release from the Withheld Amount to Purchaser the amount required to be remitted pursuant to section 116(5) of the Tax Act by Purchaser to the Receiver General of Canada (and the amount so remitted shall be credited to Purchaser as a payment to Seller on account of the Purchase Price) and the Escrow Agent shall pay to Seller any remaining portion of the Withheld Amount.
(3) If, following the Closing Date, the Canada Revenue Agency indicates that either a certificate under section 116(2) of the Tax Act with a certificate limit in an amount which is not less than the portion of the Base Purchase Price allocable to the Shares or a certificate under section 116(4) of the Tax Act will be issued in respect of the disposition of the Shares by Seller to Purchaser upon the payment of an amount (the Tax Amount) that does not exceed the Withheld Amount, then the Escrow Agent shall, upon receiving a direction from Seller and Purchaser to the Escrow Agent, executed by Seller and Purchaser substantially in the form attached hereto as Schedule B, remit the Tax Amount to the Receiver General for Canada as payment of the Tax Amount (and the amount so remitted will be credited to Purchaser as payment on account of the amount owing to Seller in respect of the Purchase Price). Upon delivery by Seller (with a copy thereof to Purchaser) of a photocopy of such certificate issued under either section 116(2) or 116(4) together with wire transfer instructions, the Escrow Agent shall release to Seller in accordance with such wire transfer instructions the Withheld Amount less the Tax Amount. If, prior to the Deadline, Seller shall fail to deliver a photocopy of such certificate issued under either section 116(2) or 116(4), the Escrow Agent shall, upon receiving a direction from Seller and Purchaser to the Escrow Agent, executed by Seller and Purchaser
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substantially in the form attached hereto as Schedule B, release the Withheld Amount less the Tax Amount to the Receiver General of Canada (and the amount so remitted shall be credited to Purchaser as a payment to Seller on account of the Purchase Price).
(4) The directions, referred to in subsections (1) and (2) of this Section, from Seller and Purchaser to the Escrow Agent, shall not unreasonably be withheld by either Seller or Purchaser.
(5) All interest and other income earned on the Withheld Amount shall be paid to Seller, net of any withholding taxes, upon the disposal of all of the Withheld Amount in accordance with the provisions of this Agreement.
(6) Sections 5.1(1) to (5) shall apply mutatis mutandis to any additional amount withheld by Purchaser on any additional payment made pursuant to Section 2.6 of the Purchase Agreement that is allocable to the acquisition of the shares of Earth Tech (Canada) Inc. beyond the Initial Allocation as referenced in Section 2.7 of the Purchase Agreement. For greater certainty, the definition of Deadline in this Agreement in respect of such additional withheld amount shall be read as if the Closing Date is the date that such additional payment is made.
5.2 Directions.
The Escrow Agent shall have no obligation to make any determination as to the validity of any direction.
SECTION 6 ESCROW AGENT
6.1 General.
The Escrow Agent agrees to hold and deal with the Withheld Amount in accordance with this Agreement.
6.2 Duties and Liabilities of Escrow Agent.
(1) Liability. The Escrow Agent shall not be liable or answerable for anything whatsoever in connection with this Agreement or any instrument or agreement required hereunder, including enforcement of this Agreement or any such instrument or agreement, except for its own wilful misconduct or gross negligence, and the Escrow Agent shall not have any duty or obligation other than those expressly provided herein. Notwithstanding anything contained herein or elsewhere to the contrary, the Escrow Agent shall not have any liability to Seller or Purchaser in respect of the deposit or investment of the Withheld Amount in accordance with this Agreement, including without limitation, the nature of the deposit or investment, the income or interest received in connection therewith and the term to maturity thereof.
(2) Other Agreements. The Escrow Agent shall only be bound to act as set forth in this Agreement and the Escrow Agent shall not be bound in any way by any agreement or contract between Seller and Purchaser (whether or not such Escrow Agent has any knowledge thereof), including the Purchase Agreement.
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(3) Directions and Court Orders. The Escrow Agent shall comply with such notices, directions and instructions as are provided for in this Agreement and any order, judgement or decree of any court of competent jurisdiction. If any part or all of the Withheld Amount held in escrow by the Escrow Agent is at any time attached or seized under any court order or in case any judicial order, judgement or decree shall be made affecting this Agreement or any part hereof then, in any such event, the Escrow Agent is authorized to rely upon and comply with such order, judgement or decree, and in the case of such compliance, the Escrow Agent shall not be liable by reason thereof to Seller or Purchaser or to any other person even if thereafter any such order, judgement or decree is reversed, modified, annulled, set aside or vacated. The Escrow Agent is not bound to enquire into the authority of any person signing any certificates, instructions, directions or orders hereunder.
(4) Reliance on Experts. The Escrow Agent may employ such counsel of its choosing as it may reasonably deem necessary for the proper discharge of its duties hereunder. The Escrow Agent may, in relation to its obligations hereunder, act on the opinion, advice or information obtained from such counsel, but shall not be bound to act upon such opinion, advice or information and shall not be held responsible for any loss occasioned for so acting or not so acting, as the case may be, except if such loss results from the wilful misconduct or gross negligence of the Escrow Agent. The Escrow Agent may employ such assistance as may be reasonably necessary to properly discharge its duties.
(5) Other Reliance. The Escrow Agent shall be entitled to rely upon any instrument or agreement required hereunder and upon statements and communications received jointly from Seller and Purchaser (or from any other person) believed by it to be authentic, and shall not be liable for any action taken or omitted in good faith on such reliance.
6.3 Disputes.
Should any controversy arise with respect to the Escrow Agents duties hereunder or under any other matter related to this Agreement, the Escrow Agent may, at the expense of the other parties, apply to a Judge of a court of competent jurisdiction to determine the rights of the parties. The Escrow Agent shall be entitled to refrain from taking any action contemplated by this Agreement in the event that it becomes aware of any disagreement between the parties hereto as to any facts or as to the happening of any contemplated event precedent to such action. Purchaser and Seller further agree to pursue any redress or recourse in connection with such a dispute, without making the Escrow Agent a party to same.
6.4 Resignation of Escrow Agent.
The Escrow Agent may resign at any time by giving fifteen (15) days notice in writing to Seller and Purchaser.
6.5 Removal of Escrow Agent.
Seller and Purchaser, acting jointly, may at any time remove such Escrow Agent from its role as Escrow Agent hereunder on seven days written notice to that Escrow Agent.
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6.6 Appointment of New Escrow Agent.
If the Escrow Agent gives notice of resignation under Section 6.4 or is removed under Section 6.5, Seller and Purchaser shall jointly appoint a new escrow agent.
6.7 Failure to Appoint Replacement Agent.
Upon the effective date of resignation or removal of an Escrow Agent pursuant to Section 6.4 or 6.5, as the case may be, if a successor Escrow Agent has not been appointed, then on notice to Seller and Purchaser, the Escrow Agent may apply to a court of competent jurisdiction for the appointment of a successor Escrow Agent; failing such application to such court within 30 days from the effective date of such resignation or removal, the Escrow Agent, on notice to Seller and Purchaser, may deposit the Withheld Amount (or provide control thereof if invested)
and all related records and documents with a court of competent jurisdiction pending the appointment of a successor Escrow Agent, and the duties and obligation of such Escrow Agent hereunder shall thereupon cease.
6.8 New Escrow Agent.
Any new escrow agent shall agree in writing to be bound by this Agreement and thereupon shall be vested with the same powers and rights and shall be subject to the same duties and obligations as if it had executed this Agreement as the Escrow Agent and, unless otherwise directed in writing jointly by Seller and Purchaser, and upon satisfaction of all of its fees and expenses, the former Escrow Agent shall cause to be delivered the Withheld Amount (or control thereof if invested) and all related records and documents to the new Escrow Agent, execute all such transfers and other documents and do all such other acts and things as the new Escrow Agent may reasonably request for the purpose of giving effect thereto.
6.9 No Agency.
Seller and Purchaser acknowledge that the Escrow Agent is acting solely as depositary at their request and for their convenience and, notwithstanding anything to the contrary herein contained, the Escrow Agent shall not be deemed to be the agent of Seller or Purchaser except as otherwise expressly provided herein.
6.10 Indemnity.
(1) Seller and Purchaser agree to indemnify and hold harmless the Escrow Agent from and against any and all liabilities, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursement, including legal or adviser fees and disbursements of whatever kind and nature (collectively, Losses) which may at any time be imposed on, incurred by or asserted against the Escrow Agent, whether groundless or otherwise, arising from or out of any act, omission or error of the Escrow Agent made in the conduct of its duties hereunder; provided that Seller or Purchaser shall not be required to indemnify the Escrow Agent against Losses arising out of and from the gross negligence or wilful misconduct of the Escrow Agent or any agent employed by the Escrow Agent in carrying out its obligations hereunder. IN NO EVENT SHALL THE
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ESCROW AGENT BE LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (i) DAMAGES OR EXPENSES ARISING OUT OF THE SERVICES PROVIDED HEREUNDER, OTHER THAN DAMAGES WHICH RESULT FROM THE ESCROW AGENTS FAILURE TO ACT IN ACCORDANCE WITH THE STANDARDS SET FORTH IN THIS AGREEMENT, OR (ii) SPECIAL OR CONSEQUENTIAL DAMAGES, EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. This provision shall survive the resignation or removal of the Escrow Agent or the termination of this Agreement.
6.11 Discharge from Duties.
(1) Disposal of Funds. Upon disposing of all of the Withheld Amount in accordance with the provisions of this Agreement, the Escrow Agent shall be relieved and discharged from all claims and liabilities relating to the Withheld Amount and the Escrow Agent shall not be subject to any claims made by or on behalf of any party hereto except claims relating to the negligence or wilful misconduct of the Escrow Agent or any agent employed by the Escrow Agent in carrying out its obligations hereunder.
(2) Removal on Resignation. Upon resigning or being removed pursuant to Section 6.4 or 6.5, the Escrow Agent shall distribute the Withheld Amount and any interest or other income earned thereon to the new escrow agent appointed pursuant to Section 6.6 and the Escrow Agent shall, upon such distribution, be discharged from all further duties and obligations hereunder and shall not be subject to any claims made by or on behalf of any party hereto except claims relating to the negligence or wilful misconduct of the Escrow Agent or any agent employed by the Escrow Agent in carrying out its obligations hereunder.
6.12 Expenses.
The reasonable fees and expenses of the Escrow Agent shall be borne by Seller. The Escrow Agent shall have, and is hereby granted, a prior lien upon any property, cash, or assets of the Escrow Fund, with respect to its unpaid fees and non-reimbursed expenses, superior to the interests of any other persons or entities. The Escrow Agent shall be entitled and is hereby granted the right to set off and deduct any unpaid fees and/or non-reimbursed expenses from amounts on deposit in the Escrow Fund.
6.13 Waiver of Claims.
Each party hereto waives any claims or demands against the Escrow Agent and its principals with respect to all acts taken by such Escrow Agent in conformance with this Agreement. The Escrow Agent shall not have any duty to take any action other than as specifically provided for in this Agreement. The Escrow Agent shall not have any liability for any non-action if such action has been restrained by any order of any court or administrative agency or if, in its sole discretion, it determines that any such action would violate any law or governmental regulation.
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6.14 Consolidation of Escrow Agent.
Any banking association, corporation, partnership or other entity into which the Escrow Agent may be merged, converted or with which the Escrow Agent may be consolidated, shall succeed to all the Escrow Agents rights, obligations and immunities hereunder without the
execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding.
SECTION 7 MISCELLANEOUS
7.1 Further Assurances.
Seller and Purchaser shall from time to take or cause to be taken such action and execute and deliver (or cause to be executed and delivered) such documents and further assurances as may, in the reasonable opinion of counsel for the other parties, be necessary or advisable to give effect to this Agreement.
7.2 Notices.
Any notice, demand or other communication (in this Section, a notice) required or permitted to be given or made hereunder shall be in writing and shall be sufficiently given or made if:
(1) delivered in person during normal business hours of the recipient on a Business Day and left with the recipient, for notices delivered to individuals, or a receptionist or other responsible employee of the recipient at the relevant address set forth below;
(2) except during any period of actual or imminent interruption of postal services due to strike, lockout or other cause, sent by registered mail; or
(3) sent by Transmission, charges prepaid and confirmed by registered mail as provided in Subsection (2), as follows:
if to Seller:
Tyco
International Holding S.a.r.l.
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Attention: ·
Fax: ·
if to Purchaser:
AECOM
Technology Corporation
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Attention: ·
Fax: ·
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if to the Escrow Agent:
McMillan Binch Mendelsohn LLP
BCE Place, Suite 4400
Bay Wellington Tower, 181 Bay Street
Toronto, Ontario, Canada M5J 2T3
Attention: Ryan Morris
Tel: 416.865.7180
Fax: 416.865.7048
Any notice so given shall be deemed to have been given and to have been received on the day of delivery, if so delivered, on the third Business Day (excluding each day during which there exists any interruption of postal services due to strike, lockout or other cause) following the mailing thereof, if so mailed, and on the day that notice was sent by Transmission, provided such day is a Business Day and the message is delivered during business hours on the same Business Day and if not, during business hours on the first Business Day thereafter. Addresses for notice may be changed by giving notice in accordance with this Section.
7.3 Time.
Time shall be of the essence of this Agreement.
7.4 Governing Law.
This Agreement shall be governed by and interpreted in accordance with the laws of the Province of Ontario, Canada.
7.5 Entire Agreement.
This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations and understandings. No provision may be amended or waived except in writing.
7.6 Severability.
Any provision of this Agreement which is invalid or unenforceable shall not affect any other provision and shall, so long as the general intentions of the parties hereto are preserved, be deemed to be severable.
7.7 Execution in Counterparts.
This Agreement may be executed and delivered in any number of counterparts, each of which when executed and delivered is an original but all of which taken together constitute one and the same instrument. A partys transmission by facsimile of a copy of this Agreement duly executed by that party shall constitute effective delivery by that party of an executed copy of this
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Agreement to the party receiving the transmission. A party that has delivered this Agreement by facsimile shall forthwith deliver an originally executed copy to the other party or parties.
The parties have executed this Agreement.
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Schedule A Investment Direction
Form of Direction with respect to
Investment of Withheld Amount
TO: McMillan Binch Mendelsohn LLP
DATE: ·
RE: Investment of Withheld Amount held by
the Escrow Agent pursuant to an Escrow Agreement made between AECOM Technology
Corporation, Tyco International Holding S.a.r.l. and McMillan Binch Mendelsohn LLP and
dated as of ·, 2008 (the Escrow Agreement)
This direction is given pursuant to Section 4.2 of the Escrow Agreement. Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Escrow Agreement.
The undersigned hereby jointly authorize and direct the Escrow Agent to invest the following Withheld Amount as follows as soon as is practicable:
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and this shall be your good, sufficient and irrevocable authority to do so.
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A-1
Schedule B Payment Direction
Form of Direction with respect to
Disbursement of Withheld Amount
TO: McMillan Binch Mendelsohn LLP
RE: Escrow Agreement made between AECOM
Technology Corporation, Tyco International Holding S.a.r.l. and McMillan Binch
Mendelsohn LLP and dated as of ·, 2008 (the Escrow
Agreement)
This direction is given pursuant to Section 5.1 of the Escrow Agreement. Capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Escrow Agreement.
You are hereby irrevocably authorized and directed to pay out of the Withheld Amount the sum of $ (1) to (2) on (3), all in accordance with the detailed instructions attached hereto as Appendix I(4) in respect of the (5) account, and this shall be your good, sufficient and irrevocable authority to do so.
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(1) Insert amount (inclusive of interest, if any).
(2) Insert name of payee.
(3) Insert date of distribution. Three Business Days notice must be given.
(4) Appendix to contain account, wire transfer, method of payment instructions etc., as appropriate.
(5) Insert name of account.
Appendix I Account Particulars
In Respect of US$· of the Escrow Fund:
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B-2
Exhibit 99.1
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News Release |
AECOM to acquire Earth Tech from Tyco
Strengthens AECOM in infrastructure and environmental markets, expands global footprint
LOS ANGELES (Feb. 12, 2008) AECOM Technology Corporation (NYSE: ACM), a leading provider of professional technical and management support services for government and commercial clients around the world, announced today that it has signed a definitive agreement to acquire Earth Tech, Inc., a business unit of Tyco International Ltd. (NYSE: TYC).
Earth Tech provides consulting; engineering; and design, build and operate (DBO) services to water/wastewater, environmental, transportation, and facilities clients globally. Earth Tech had revenue of $1.3 billion in its fiscal year 2007 and employs 7,000 people around the world.
The all-cash $510-milllion transaction will combine two world-class professional technical services companies significantly strengthening AECOM in its key end markets. We expect that this transaction will generate shareholder returns above our cost of capital, said John M. Dionisio, AECOM president and chief executive officer.
After closing, AECOM plans to divest certain Earth Tech operations that are not in the consulting, engineering and DBO services areas, and do not otherwise align with AECOMs core business and strategic objectives. AECOM is in the process of finalizing the Earth Tech assets to divest. AECOM preliminarily estimates that presently-contemplated divestitures could yield proceeds of $175 to $200 million.
Dionisio noted the strategic significance of this acquisition. By adding Earth Tech to AECOM, we immediately strengthen our position in our core water and wastewater markets. We also bolster our environmental, facilities, and transportation businesses, while further expanding AECOMs global footprint, particularly in the Americas, U.K./Europe, and Australia/Asia.
For many years, we have partnered with Earth Tech on projects, Dionisio said. We know each other very well, and we know the high quality of the work that our respective companies perform. Based on this experience, our management teams have a strong mutual respect for each other and we look forward to a smooth, seamless and successful transition.
more
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Externally, this merger strengthens our ability to win mega infrastructure assignments, environmentally smart projects and outsourcing by federal agencies, Dionisio added. Internally, Earth Techs addition to AECOM provides tremendous benefits to employees of both firms opportunities for professional growth and development, and greater opportunities for people to work on important projects.
Alan P. Krusi, Earth Tech president and chief executive officer, echoed Dionisios sentiment. This is an exciting time for Earth Tech, our employees and our clients. We are combining two leading companies with outstanding reputations in the global infrastructure market.
Michael S. Burke, AECOM executive vice president, chief corporate officer and chief financial officer, noted that this transaction advances AECOMs strategy and is consistent with its business model of pursuing a healthy balance of organic and acquisitive growth. We have a proven track record of successfully integrating acquisitions, and we are confident that we can leverage our integration expertise to seamlessly combine Earth Techs operations with ours, said Burke.
AECOM expects the transaction to be slightly accretive to cash earnings per share (EPS) in its fiscal year 2008. On a GAAP basis, the transaction is expected to be slightly dilutive to EPS in fiscal year 2008 and accretive in fiscal year 2009. This transaction is not included in AECOMs revised fiscal year 2008 guidance announced earlier today.
The transaction, which is subject to customary closing conditions, regulatory approvals and expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, is expected to close during the third fiscal quarter for AECOM.
AECOM will discuss this transaction and other company developments in its earnings conference call today.
About AECOM
AECOM (NYSE: ACM) is a global provider of professional technical and management support services to a broad range of markets, including transportation, facilities, environmental and energy. With more than 33,000 employees around the world, AECOM is a leader in all of the key markets that it serves. AECOM provides a blend of global reach, local knowledge, innovation and technical excellence in delivering solutions that enhance and sustain the worlds built, natural and social environments. AECOM serves clients in more than 60 countries and had revenue of $4.2 billion during fiscal year 2007. More information on AECOM and its services can be found at www.aecom.com.
About Earth Tech
Earth Tech Inc. is a global provider of a full suite of engineering, construction and operations services to the international water/wastewater, environmental, transportation, and facilities markets. A business unit of Tyco International Ltd., Earth Tech employs some 7,000 talented people, delivering services to customers in 15 countries. Founded in 1970, Earth Tech is headquartered in Long Beach, Calif. More information on Earth Tech can be found at www.earthtech.com.
Forward-Looking Statements
Forward-Looking Statements: All statements in this press release other than statements of historical fact are forward-looking statements for purposes of federal and state securities laws, including any statements of the plans, strategies and objectives for future operations and any statements regarding future economic conditions or performance, statements relating to the timing of and satisfaction of conditions of the acquisition, whether any of the anticipated benefits of the acquisition will be realized, including future competitive positioning and business synergies, future expectations that the acquisition will be accretive to GAAP and cash earnings per share and expectations regarding integration of the acquired business and the amount, timing and terms of divestitures of acquired assets. Actual results could differ materially from those projected or assumed in any of our forward-looking statements. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in our annual report on Form 10-K for the fiscal year ended Sept. 30, 2007, and our other reports filed with the Securities and Exchange Commission. We do not intend, and undertake no obligation, to update any forward-looking statement.
CONTACT: |
AECOM Technology Corporation |
Paul Gennaro, 212-973-3167 |
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SVP & Chief Communications Officer |
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paul.gennaro@aecom.com |
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