Exhibit
2.1
AGREEMENT AND PLAN OF
MERGER
THIS AGREEMENT AND PLAN OF MERGER dated as of
December 29, 2006 (this “ Agreement ”), by and
among Millennium Cell Inc., a Delaware corporation (“
Parent ”), M.C.E. Venture L.L.C., a Delaware limited
liability company and wholly-owned subsidiary of the Parent
(“ Merger Sub ”), and Gecko Energy Technologies,
Inc., a Delaware corporation (“ Target ”),
Ronald J. Kelley and Steven D. Pratt (each, a “ Selling
Stockholder ” and together, the “ Selling
Stockholders ”).
RECITALS
WHEREAS, Target is engaged in the business of
designing, manufacturing and developing planar fuel cells and has a
non-exclusive license to various patents and know-how in the field
of fuel cells;
WHEREAS, on February 15, 2006, Parent and Target
entered into a Joint Development Agreement (the “ JDA
”) whereby Parent and Target agreed to, among other things,
jointly develop planar fuel cell products and systems;
WHEREAS, in connection with the JDA, on February
15, 2006, Parent and Target entered into a Stock Purchase Agreement
(the “ SPA ”) pursuant to which Parent agreed to
purchase from Target, and Target agreed to sell to Parent, shares
of Target’s common stock, no par value per share (“
Target Common Stock ”);
WHEREAS, as of the date hereof, Parent
beneficially owns 10,675 shares of Target Common Stock,
representing approximately 34.8% of the outstanding shares of
Target Common Stock, all of which Parent acquired pursuant to the
SPA;
WHEREAS, as of the date hereof, the Selling
Stockholders collectively own an aggregate of 20,000 shares of
Target Common Stock, representing approximately 65.2% of the
outstanding shares of Target Common Stock;
WHEREAS, the respective Boards of Directors of
Parent and Target deem it advisable and in the best interests of
their respective stockholders for Parent to acquire Target by means
of a merger of Target with and into Merger Sub (the “
Merger ”);
WHEREAS, the parties intend that the Merger will
qualify, for federal income tax purposes, as a tax-free
reorganization within the meaning of Section 368(a)(1)(A) of the
Internal Revenue Code of 1986, as amended (the “ Code
”); and
WHEREAS, Parent, Target and each Selling
Stockholder desire to make certain representations, warranties and
agreements in connection with the Merger.
NOW, THEREFORE, in consideration of the mutual
covenants, representations, warranties, conditions and agreements
hereinafter set forth and of other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the
parties hereto do hereby agree as follows:
ARTICLE
I
THE
MERGER
Section 1.1 The Merger . In accordance with the provisions of this
Agreement, the Delaware General Corporation Law (the “
DGCL ”) and the Delaware Limited Liability Act
(“ DLLCA ”), at the Effective Time (as defined
below), Target shall be merged with and into Merger Sub, the
separate existence of Target shall thereupon cease, and the name of
Merger Sub, as the surviving entity in the Merger (“
Surviving Entity ”), shall be “Gecko Energy
Technologies, LLC.”
Section 1.2 Effective Time . Subject to the delivery at the Closing (as
defined in Section 6.1) of the documents referenced in Section 6.2
hereof, Merger Sub shall execute and file a Certificate of Merger,
substantially in the form attached hereto as Exhibit 1.2
(the “ Certificate of Merger ”), with the
Secretary of State of the State of Delaware. The effective time of
the Merger (the “ Effective Time ”) shall be the
time at which the Certificate of Merger is filed with the Secretary
of State of the State of Delaware or such later time as is
specified in the Certificate of Merger, which shall not be later
than 11:59 p.m., Eastern Standard Time, on the date
hereof.
Section 1.3 Effect of the Merger . As of the Effective Time, the Merger shall
have the effects specified in the DGCL and the DLLCA.
Section 1.4 Certificate of Formation . The Certificate of Formation of Merger Sub in
effect at the time of the Merger shall be the Certificate of
Formation of the Surviving Entity; provided , however
, that effective as of the Effective Time and by virtue of the
filing of the Certificate of Merger, the Certificate of Formation
of Merger Sub shall be amended to provide that the name of
Surviving Entity shall be “Gecko Energy Technologies,
LLC.”
Section 1.5 Limited Liability Company Agreement
. The limited liability company
agreement of Merger Sub in effect at the time of the Merger shall
be the limited liability company agreement of the Surviving Entity
until altered, amended or repealed, provided ,
however , that as of the Effective Time, such limited
liability company agreement shall be amended to provide that the
name of the Surviving Entity is “Gecko Energy Technologies,
LLC.”
Section 1.6 Officers . The officers of the Surviving Entity at the
Effective Time shall be the following individuals:
Ronald J.
Kelley President and Chief Executive
Officer
Steven D.
Pratt Secretary, Treasurer and Chief Operating
Officer
who shall
serve, in each case, until their successors shall have been
appointed. If at the Effective Time a vacancy shall exist in any of
the above listed offices of the Surviving Entity, such vacancy may
thereafter be filled in the manner provided by the limited
liability company agreement of the Surviving Entity.
Section 1.7 Conversion of Shares of Target Common
Stock . The manner and
basis of converting and exchanging the shares of Target Common
Stock in the Merger shall be as follows:
(a)
Shares of Target Common Stock
Owned by Parent . Each
share of Target Common Stock issued and outstanding immediately
prior to the Effective Time and beneficially owned by Parent shall,
by virtue of the Merger and without any action on the part of
Parent or Target, at and after the Effective Time, be cancelled,
retired and no longer issued and outstanding and no cash,
securities or other property shall be issued to Parent in exchange
therefor.
(b) Shares of Target Common Stock Owned by Selling
Stockholders . Each share
of Target Common Stock that is issued and outstanding immediately
prior to the Effective Time and beneficially owned by a Selling
Stockholder shall, by virtue of the Merger and without any action
on the part of Parent, Target or such Selling Stockholder, at and
after the Effective Time, be converted into the right to receive
100 shares of common stock of Parent, par value $0.001 per share
(“ Parent Common Stock ”). The shares of Parent
Common Stock issuable to the Selling Stockholders pursuant to this
Section 1.7(b) are referred to herein as the “
Merger Consideration .”
(c)
Membership Interests of Merger
Sub . All membership
interests of Merger Sub issued and outstanding at the Effective
Time shall continue to be membership interests of the Surviving
Entity so that at and after the Effective Time the Surviving Entity
shall continue to be a wholly-owned subsidiary of
Parent.
Section
1.8 Merger Consideration . At the Closing, each Selling Stockholder
shall surrender to Parent all certificates representing shares of
Target Common Stock beneficially owned by such Selling Stockholder
(together with the documents referenced in Section 6.2(c)
hereof) and, upon such surrender Parent shall execute and deliver
to its transfer agent written irrevocable instructions,
substantially in the form attached as Exhibit 1.8 hereto
(the “ Transfer Agent Instructions ”), to issue
to such Selling Stockholder a certificate representing the number
of shares of Parent Common Stock which such Selling Stockholder is
entitled to receive pursuant to Section 1.7(b) hereof, which
certificates shall be endorsed with the restrictive legends
described in Section 2.8 hereof.
Section 1.9 Stock Transfers; Lost, Stolen or Destroyed
Certificates . At or
after the Effective Time, there shall be no transfers on the stock
transfer books of Target of the shares of Target Common Stock that
were outstanding immediately prior to the Effective Time. In the
event that any certificate representing shares of Target Common
Stock beneficially owned by a Selling Stockholder prior to the
Effective Time shall have been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the Selling Stockholder
claiming such stock certificate to be lost, stolen or destroyed and
the posting by such Selling Stockholder of a bond in an amount and
upon terms as may be required by Parent as indemnity against any
claim that may be made against it with respect to such stock
certificate, Parent will issue to such Selling Stockholder a
certificate representing the number of shares of Parent Common
Stock which such Selling Stockholder is entitled to receive
pursuant to Section 1.7(b) hereof.
Section 1.10 Tax Characterization . The parties agree to treat the Merger for all
federal, state and local income tax purposes as a tax-free
reorganization within the meaning of Section 368(a)(1)(A) of the
Code. No party shall take any position (whether in audits, tax
returns or otherwise) that is inconsistent with such
characterization unless required to do so by any applicable tax
authority.
ARTICLE
II
REPRESENTATIONS AND
WARRANTIES OF SELLING STOCKHOLDERS
AS TO THEIR SHARES OF TARGET
COMMON STOCK
AND THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT
To induce Parent and Merger Sub to enter into
this Agreement, each of the Selling Stockholders severally
represents and warrants (a Selling Stockholder not having any
liability for a breach of any representation or warranty under this
Article II by the other Selling Stockholder) that:
Section 2.1 Ownership of Shares of Target Common Stock;
Power and Authority .
Each respective Selling Stockholder is the legal and beneficial
owner of the number of shares of Target Common Stock as follows:
Ronald J. Kelley - 10,000; Steven D. Pratt - 10,000. Such shares of
Target Common Stock are held by such Selling Stockholder free and
clear of all liens, encumbrances and adverse claims (other than
restrictions imposed by the Stockholders Agreement dated as of
February 15, 2006 by and among Target, Parent and each Selling
Stockholder (the “ Stockholders Agreement ”) and
by applicable securities laws) and have been duly and validly
issued and are fully paid, nonassessable and not subject to call.
Each Selling Stockholder has full power and authority to enter into
this Agreement and perform his obligations pursuant
hereto.
Section 2.2 No Conflicts . The execution, delivery and performance of
this Agreement by such Selling Stockholder do not and will not (a)
conflict with, violate or constitute a material breach of any
agreement, instrument or other contract by which such Selling
Stockholder is bound or any judgment, order, decree, law, statute,
regulation or other judicial or governmental restriction to which
such Selling Stockholder is subject or by which the shares of
Target Common Stock owned by such Selling Stockholder are subject;
(b) require the consent of, or any filing with or notice to,
any governmental authority or other third party; or (c) cause
the creation or imposition of any lien, encumbrance or other
adverse claim on the shares of Target Common Stock owned by such
Selling Stockholder or on any material assets of the Target. This
Agreement has been duly and validly executed and delivered by each
Selling Stockholder and constitutes the legal, valid and binding
obligation of such Selling Stockholder, enforceable against such
Selling Stockholder in accordance with its terms.
Section 2.3 No Litigation . There is not pending or threatened against
such Selling Stockholder any action, suit or proceeding before any
court, arbitrator or governmental or regulatory authority which
challenges or calls into question the authority of such Selling
Stockholder to enter into this Agreement or perform his obligations
hereunder or in which an adverse decision could materially and
adversely affect the transaction contemplated hereby.
Section 2.4 Access to Information . Each Selling Stockholder acknowledges that on
December 19, 2006, such Selling Stockholder was provided with the
following written information relating to the Parent: (a)
Parent’s Annual Report to Stockholders for the fiscal year
ended December 31, 2005, (b) Parent’s Annual Report on Form
10-K for the fiscal year ended December 31, 2005, as amended (the
“ Form 10-K ”), (c) Parent’s Definitive
Proxy Statement for Parent’s 2006 Annual Meeting of
Stockholders, (d) Parent’s Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2006, June 30, 2006 and September 30,
2006, (e) each of Parent’s Current Reports on Form 8-K filed
with the Securities and Exchange Commission (the “ SEC
”) since December 31, 2005 and (f) a description of the
Parent Common Stock to be issued to such Selling Stockholder as
Merger Consideration hereunder (the written information referenced
in (a) through (f), the “ Rule 502 Information
”). Each Selling Stockholder acknowledges that either he or,
if applicable, his Purchaser Representative (as defined in
Section 8.6 hereof) has carefully reviewed and understands
the Rule 502 Information (including, without limitation, the
information disclosed in the section of the Form 10-K entitled
“Risk Factors”) and that either he or, if applicable,
his Purchaser Representative has had a reasonable opportunity to
ask questions of and receive answers from a person or persons
acting on behalf of Parent concerning the business, financial
condition, results of operations and prospects of Parent and that
all such questions have been answered to the full satisfaction of
such Selling Stockholder.
Section 2.5 Knowledge and Experience . Each Selling Stockholder or, if applicable,
his Purchaser Representative, has such knowledge and experience in
financial and business matters so as to enable such Selling
Stockholder or, if applicable, his Purchaser Representative, to
utilize the Rule 502 Information to evaluate the merits and risks
of an investment in the Parent Common Stock and to make an informed
investment decision with respect thereto. Each Selling Stockholder
acknowledges that he is not relying on Parent or any of
Parent’s employees or agents with respect to the legal, tax,
economic and related considerations as to an investment in the
Parent Common Stock, and that such Selling Stockholder has relied
on the advice of, or has consulted with, only his own
advisors.
Section 2.6 Investment Purpose . Each Selling Stockholder hereby confirms that
the shares of Parent Common Stock that will be acquired by such
Selling Stockholder as Merger Consideration hereunder will be
acquired for investment for such Selling Stockholder’s own
account, not as nominee or agent, and not with a view to the resale
or distribution of any part thereof, and that such Selling
Stockholder has no present intention of selling, granting any
participation in, or otherwise distributing the same.
Section 2.7 Restricted Securities . Each Selling Stockholder understands that the
shares of Parent Common Stock that such Selling Stockholder will
acquire as Merger Consideration hereunder have not been, and will
not be, registered under the Securities Act of 1933, as amended
(the “ Securities Act ”) by reason of a specific
exemption from the registration provisions of the Securities Act
which depends upon, among other things, the bona fide nature of the
investment intent and the accuracy of such Selling
Stockholder’s representations as expressed herein. Each
Selling Stockholder understands that the shares of Parent Common
Stock that such Selling Stockholder will acquire as Merger
Consideration hereunder will be “restricted securities”
under applicable United States federal and state securities laws
and that, pursuant to these laws, such Selling Stockholder must
hold such shares of Parent Common Stock indefinitely unless they
are registered with the SEC and qualified by state authorities, or
an exemption from such registration and qualification requirements
is available. Each Selling Stockholder acknowledges that the Parent
has no obligation to register or qualify for resale the shares of
Parent Common Stock to be issued to such Selling Stockholder as
Merger Consideration hereunder and that if an exemption from such
registration is available, it will be subject to various
requirements and limitations including, but not limited to, the
time and manner of sale, the holding period, and on requirements
relating to the Parent which are outside of the control of such
Selling Stockholder, and which the Parent is under no obligation
and may not be able to satisfy. For the avoidance of doubt, each
Selling Stockholder acknowledges that the foregoing restrictions
and limitations relating to resale exemptions from registration
under the Securities Act are in addition to and not in limitation
of the covenant contained in Section 5.2 of this
Agreement.
2.8 Legends . Each Selling Stockholder understands that the
certificates representing the shares of Parent Common Stock to be
issued to such Selling Stockholder as Merger Consideration will be
endorsed with the following restrictive legends:
(a) “THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY
APPLICABLE STATE SECURITIES LAWS AND, ACCORDINGLY, MAY NOT BE
OFFERED, SOLD, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR
OTHERWISE DISPOSED OF EXCEPT (A) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, TO THE EXTENT
REQUIRED, ANY APPLICABLE STATE SECURITIES LAWS OR (B) UPON DELIVERY
OF AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE ISSUER THAT
AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS IS AVAILABLE.”
(b) “THE SECURITIES REPRESENTED BY THIS
CERTIFICATE MAY NOT BE OFFERED, SOLD, TRANSFERRED, ASSIGNED,
PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN ANY MANNER,
DIRECTLY OR INDIRECTLY, AT ANY TIME PRIOR TO DECEMBER 29, 2007
WITHOUT THE PRIOR WRITTEN CONSENT OF THE ISSUER.”
ARTICLE
III
REPRESENTATIONS AND
WARRANTIES OF THE TARGET
AND THE SELLING STOCKHOLDERS
AS TO THE TARGET
To induce Parent and Merger Sub to enter into
this Agreement, the Target and the Selling Stockholders, jointly
and severally, hereby represent and warrant that:
Section 3.1 Corporate Organization; Authorization and
Capitalization .
(a) Organization, Good Standing, Corporate Power and
Qualification . The
Target is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware and has all
requisite corporate power and authority to carry on its business as
presently conducted and as proposed to be conducted. The Target has
the requisite corporate power and authority to own and operate its
properties and assets. The Target is duly qualified to transact
business and is in good standing in each jurisdiction in which the
failure to so qualify would have a Material Adverse Effect (as
defined in Section 8.6 hereof).
(b) Corporate Power and Authorization
. The Target has all requisite legal
and corporate power and authority to enter into this Agreement and
each other Transaction Agreement to which it is a party and to
carry out and perform its obligations in accordance with the terms
hereof and thereof. The execution and delivery by Target of this
Agreement and each other Transaction Agreement to which Target is a
party and the consummation by the Target of the transactions
contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Target (including all
stockholder approvals) and no further action is required by the
Target. This Agreement and each other Transaction Agreement to
which Target is a party have been duly executed and delivered by
the Target and constitute valid and binding obligations of the
Target in accordance with their respective terms, except (i) as
limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general
application relating to or affecting the enforcement of
creditors’ rights generally and (b) as limited by laws
relating to the availability of specific performance, injunctive
relief, or other equitable remedies.
(c) Capitalization . The number of shares and type of all
authorized, issued and outstanding capital stock of the Target
(including any treasury shares) is set forth in Schedule
3.1(c) . Except as disclosed in Schedule 3.1(c) , no
securities of the Target are entitled to any preemptive right,
right of participation, right of first refusal, or similar right.
Except as disclosed in Schedule 3.1(c) , there are no
outstanding options, warrants, scrip rights to subscribe to, calls
or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exchangeable
for, or giving any person or entity (other than Parent) any right
to subscribe for or acquire, any shares of Target Common Stock, or
agreements, commitments, understandings or arrangements by which
the Target is or may become bound to issue additional shares of
Target Common Stock, or securities or rights convertible or
exchangeable into shares of Target Common Stock.
(d) No Agreements . There are no contracts or agreements to which
the Target or any Selling Stockholder is a party or otherwise bound
that govern or restrict the voting of the shares of Target Common
Stock owned by any Selling Stockholder, that grant to any person or
entity other than a Selling Stockholder, in his capacity as a
selling stockholder, any voting rights with respect to the Target,
or that govern or restrict the transfer of the shares of Target
Common Stock owned by any Selling Stockholder (other than the
Stockholders Agreement).
(e) No Corporate Proceedings . There are no pending corporate proceedings of
the Target for any dissolution or liquidation of the Target, or for
any merger or consolidation to which the Target would be party
other than as provided by this Agreement.
Section 3.2 Subsidiaries . The Target does not currently own or control,
and has never owned or controlled, directly or indirectly, any
interest in any other corporation, partnership, trust, joint
venture, limited liability company, association, or other business
entity. Except as contemplated by the JDA, the Target is not a
participant in any joint venture, teaming, partnership or similar
arrangement.
Section 3.3 No Conflicts . The execution and delivery of this Agreement
and the other Transaction Agreements to which the Target is a party
and the performance by the Target of its obligations hereunder and
thereunder do not and will not (a) conflict with or violate
the Target’s Certificate of Incorporation or Bylaws, in each
case as amended to date, (b) conflict with, violate or result
in any default under, or give rise to any right of termination,
cancellation, suspension, revocation, amendment or acceleration of,
any permit, license, mortgage, indenture, agreement, instrument or
other contract to which the Target is a party or by which the
Target or its property is bound, (c) violate any judgment,
order, decree, law, statute, regulation or other judicial or
governmental restriction to which the Target is subject or by which
any of the Target’s assets are bound, or (d) require the
consent of, permit or license from, or any filing with or notice
to, any governmental authority or other third party.
Section 3.4 Financial Statements . Except as set forth in Schedule 3.4 ,
the financial statements of the Target provided to Parent have been
prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis (“
GAAP ”) during the periods involved, except as may be
otherwise specified in such financial statements or in the notes
thereto, and such financial statements, and the information
contained therein fairly present the financial position of the
Target and its consolidated subsidiaries, if any, as of and for the
dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited financial
statements of the Target, to normal, immaterial, year-end audit
adjustments and the absence of footnotes.
Section 3.5 Material Changes . Since the date of the last financial
statements of Target provided to Parent, except as specifically
disclosed in Schedule 3.5 : (i) there has been no event,
occurrence or development that has had or could reasonably be
expected to result in a Material Adverse Effect, (ii) the Target
has not incurred any liabilities (contingent or otherwise) other
than: (A) trade payables and accrued expenses incurred in the
ordinary course of business consistent with past practice, (B)
liabilities not required to be reflected in the Target’s
financial statements pursuant to GAAP and (C) expenses in
connection with the negotiation and consummation of the
transactions contemplated by this Agreement, (iii) the Target has
not altered its method of accounting or the identity of its
auditors, if any, (iv) the Target has not declared, paid or issued
any dividend or distributed any cash or other property to its
stockholders or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock and (v) the
Target has not issued any equity securities to any officers,
directors or any Affiliate (as defined in Section 8.6
hereof) of Target.
Section 3.6 Intellectual Property . To the Target’s knowledge, the Target
has, or has rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names,
copyrights, licenses and other similar rights (collectively, the
“ Intellectual Property ”) that are necessary or
material for use in connection with the Target’s business and
which the failure to so have could have, or could reasonably be
expected to result in, a Material Adverse Effect. The Target has
not received a written notice that the Intellectual Property used
by the Target violates or infringes upon the rights of any person
or entity which if determined adversely to the Target would,
individually or in the aggregate, have a Material Adverse Effect.
All such Intellectual Property is enforceable and, to the
Target’s knowledge, there is no existing infringement by
another person or entity of any of the Intellectual Property.
Target hereby agrees to execute and deliver the IP Assignment
Agreement (as defined in Section 6.2(j)) no later than the
Effective Time to assign Target’s entire right, title, and
interest in the Intellectual Property to Merger Sub.
Section 3.7 Taxes . There are no federal, state, county, local or
foreign taxes due and payable by the Target which have not been
timely paid, whether or not assessed or disputed. There have been
no examinations or audits of any tax returns or reports of Target
by any applicable governmental authority. The Target has duly and
timely filed all federal, state, county, local and foreign tax
returns required to have been filed by it, all such tax returns or
reports are true, correct and complete in all material respects and
there are in effect no waivers of applicable statutes of
limitations with respect to taxes of Target for any year. The
provisions for taxes in the most recent balance sheet contained in
the financial statements of Target are sufficient as of such date
for the payment of any accrued and unpaid taxes of Target of any
nature and, since such date Target has not incurred any taxes other
than in the ordinary course of business. The Target has not been a
United States real property holding corporation as defined in
Section 897(c)(2) of the Code during the applicable period
specified in Section 897(c)(1)(A)(ii) of the Code. There are no
liens for taxes (other than taxes not yet due) upon any of the
assets of Target and Target is not responsible for the taxes of any
other person or entity under Treasury Regulation 1.1502-6 (or any
similar provision of state, local or foreign law), as transferee,
by contract, or otherwise. Target has withheld and paid all taxes
required to have been withheld and paid in connection with amounts
paid or owing to any employee, independent contractor, creditor,
stockholder, or other third party.
Section 3.8 Litigation . There is no claim, action, suit, proceeding,
arbitration, complaint, charge or investigation pending or, to the
Target’s knowledge, any threat thereof (a) against the Target
or any officer or director of the Target or (b) that questions the
validity of the transactions contemplated by this Agreement. There
is no action, suit, proceeding or investigation by the Target
pending or which the Target intends to initiate.
Section 3.9 Compliance . The Target (i) is not in default under or in
violation of (and no event has occurred that, with notice or lapse
of time or both, would result in a default by the Target under),
nor has the Target received written notice of a claim that it is in
default under or that it is in violation of, in any material
respect, any indenture, instrument, loan or credit agreement or any
other agreement to which it is a party or by which it or any of its
properties is bound (whether or not such default or violation has
been waived), (ii) is not in violation of any order of any court,
ar
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