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EXHIBIT 10.18 MEMBERSHIP INTEREST PURCHASE AGREEMENT

LLC Membership Agreement

EXHIBIT 10.18 MEMBERSHIP INTEREST PURCHASE AGREEMENT | Document Parties: GECKO INVESTMENTS, LLC | WCA WASTE CORPORATION | WASTE CORPORATION OF MISSOURI, INC You are currently viewing:
This LLC Membership Agreement involves

GECKO INVESTMENTS, LLC | WCA WASTE CORPORATION | WASTE CORPORATION OF MISSOURI, INC

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Title: EXHIBIT 10.18 MEMBERSHIP INTEREST PURCHASE AGREEMENT
Governing Law: Texas     Date: 3/24/2005

EXHIBIT 10.18 MEMBERSHIP INTEREST PURCHASE AGREEMENT, Parties: gecko investments  llc , wca waste corporation , waste corporation of missouri  inc
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                                                                   EXHIBIT 10.18

 

*** Indicates material has been omitted pursuant to a Confidential Treatment

Request filed with the Securities and Exchange Commission. A complete copy of

this Agreement has been filed with the Securities and Exchange Commission.

--------------------------------------------------------------------------------

 

                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

                                      AMONG

 

                              WCA WASTE CORPORATION,

 

                      WASTE CORPORATION OF MISSOURI, INC.,

 

                             GECKO INVESTMENTS, LLC

 

                                       AND

 

                                   THE SELLERS

 

                                       1

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                                TABLE OF CONTENTS

 

<TABLE>

<S>                                                                                   <C>

1.   TRANSFER OF MEMBERSHIP INTERESTS............................................       5

    1.1     The Transfer.........................................................       5

    1.2     Continuation of the Company..........................................       5

    1.3     Termination of Membership Interests; Resignations....................       6

 

2.   CONSIDERATION...............................................................       6

    2.1     Purchase Price.......................................................       6

    2.2     Payment of Purchase Price............................................       8

    2.3     The Closing..........................................................       9

 

3.   REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLERS...............       9

    3.1     Due Organization.....................................................       9

    3.2     Authorization, Validity and Effect of Agreements.....................       9

    3.3     Membership Interests of the Company..................................      10

    3.4     Obligations to Issue or Sell Membership Interests....................      10

    3.5     Subsidiaries.........................................................      11

    3.6     Predecessor Status; etc..............................................      11

    3.7     Financial Statements.................................................      11

    3.8     Liabilities and Obligations..........................................      11

    3.9     Approvals............................................................      12

    3.10    Accounts and Notes Receivable........................................      12

    3.11    Permits and Intangibles..............................................      12

    3.12    Personal Property, Options and Leases................................      12

     3.13    Customers; Contracts and Commitments.................................      13

    3.14    Real Property........................................................      14

    3.15    Insurance............................................................      14

    3.16    Employment Matters...................................................      14

    3.17    Parachute Provisions.................................................      15

    3.18    Benefit Plans; ERISA Compliance......................................      15

    3.19    Conformity with Law..................................................      17

    3.20    Taxes................................................................      18

    3.21    Completeness.........................................................      21

    3.22    Government Contracts.................................................      21

    3.23    Absence of Changes...................................................      21

    3.24    Deposit Accounts; Powers of Attorney.................................      22

    3.25    Proprietary Rights...................................................      22

    3.26    Validity of Obligations..............................................      23

    3.27    Relations with Governments...........................................      23

    3.28    Conflicts of Interest................................................      23

    3.29    Environmental Matters................................................      24

    3.30    No Broker's or Finder's Fees.........................................      26

    3.31    Litigation...........................................................      26

    3.32    Disclosure...........................................................      26

</TABLE>

 

                                        2

 

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<TABLE>

<S>                                                                                   <C>

4.   REPRESENTATIONS OF BUYER PARTIES............................................      27

    4.1     Due Organization.....................................................      27

    4.2     Execution............................................................      27

    4.3     Conformity with Law..................................................      27

    4.4     No Broker's or Finder's Fees.........................................      27

    4.5     Access to Information; Counsel.......................................      27

 

5.   COVENANTS OF THE PARTIES....................................................      28

    5.1     Notices and Approvals................................................      28

    5.2     Access to Information................................................      28

    5.3     Copies of Agreements.................................................      28

    5.4     Records..............................................................      29

    5.5     Taxes................................................................      29

    5.6     Compliance with Laws.................................................      29

    5.7     Notice of Breach.....................................................      30

    5.8     Reasonable Efforts...................................................      30

    5.9     Notification.........................................................      30

     5.10    Injunctions..........................................................      30

    5.11    Audit................................................................      30

    5.12    Tax Returns..........................................................       30

    5.13    Cooperation and Transition...........................................      31

    5.14    Sellers' Investment Representations and Covenants....................      31

 

6.   NONCOMPETITION..............................................................      34

    6.1     Prohibited Activities................................................      34

    6.2     Damages..............................................................      36

    6.3     Independent Covenant.................................................      36

    6.4     Materiality and Enforceability.......................................      36

 

7.   SURVIVAL OF COVENANTS, REPRESENTATIONS AND WARRANTIES;

    INDEMNIFICATION.............................................................      36

    7.1     Survival of Covenants, Representations, and Warranties...............      36

    7.2     Indemnification by the Sellers.......................................      37

    7.3     Indemnification by the Buyer Parties.................................      37

    7.4     Notice and Defense of Third Party Claims.............................      38

    7.5     Payment and Interest.................................................      39

    7.6     NEGLIGENCE AND STRICT LIABILITY......................................      39

 

8.   BUYER PARTIES' CONDITIONS TO CLOSING........................................      40

    8.1     Representations and Warranties.......................................      40

    8.2     Compliance with Conditions...........................................      40

    8.3     Suit or Proceeding...................................................      40

    8.4     Consents and Approvals...............................................      40

    8.5     Material Adverse Change..............................................      41

    8.6     Assignment and Assumption Agreement..................................      41

    8.7     Resignations; Releases...............................................      41

    8.8     Permits and Licenses.................................................      41

</TABLE>

 

                                       3

 

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<TABLE>

<S>                                                                                   <C>

    8.9     Clearance Certificates...............................................      41

    8.10    Affidavit............................................................      41

    8.11    Satisfactory Completion of Due Diligence Investigation...............      41

 

9.   CONDITIONS TO SELLERS' OBLIGATION TO CLOSE..................................      42

    9.1     Representations and Warranties.......................................      42

    9.2     Compliance with Conditions...........................................      42

    9.3     Suit or Proceeding...................................................      42

 

10. CLOSING DELIVERIES..........................................................      42

    10.1    Deliveries by the Sellers............................................      42

    10.2    Deliveries by the Buyer Parties......................................      43

 

11. CERTAIN DEFINITIONS.........................................................      44

 

12. GENERAL.....................................................................      47

    12.1    Costs................................................................      47

    12.2    Entire Agreement.....................................................      47

    12.3    Counterparts.........................................................      48

    12.4    Notices..............................................................      48

    12.5    Modification or Waiver...............................................      48

    12.6    Binding Effect and Assignment........................................      49

    12.7    Governing Law; Venue.................................................      49

    12.8    Section Headings.....................................................      49

    12.9    Severability.........................................................       50

    12.10   Drafting.............................................................      50

    12.11   References...........................................................      50

    12.12   Calendar Days, Weeks, Months and Quarters............................      50

    12.13   Gender; Plural and Singular..........................................      50

    12.14   Cumulative Rights....................................................      50

    12.15   No Implied Covenants.................................................      50

    12.16   Indirect Action......................................................      50

    12.17   Attorneys' Fees......................................................      51

    12.18   Time of the Essence..................................................      51

</TABLE>

 

                                       4

 

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                     MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

      THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (this "Agreement") is made

effective the 11th day of January, 2005, between WCA Waste Corporation, a

Delaware corporation ("Parent"), Waste Corporation of Missouri, Inc., a Delaware

corporation and a wholly-owned subsidiary of Parent ("Buyer"), Gecko

Investments, LLC, an Ohio limited liability company (the "Company"), Andrew

Zelenkofske, Daniel J. Clark and Joseph E. LoConti (Zelenkofske, Clark and

LoConti, collectively, the "Sellers"). Parent and Buyer are sometimes referred

to herein individually as a "Buyer Party" and collectively as the "Buyer

Parties." The Company and the Sellers are sometimes referred to herein

individually as a "Seller Party" and collectively as the "Seller Parties." The

Seller Parties and the Buyer Parties are sometimes referred to herein

individually as a "Party" and collectively as the "Parties."

 

      WHEREAS, the Company is engaged in the business of owning and operating a

municipal solid waste landfill and hauling business in Pike County, Missouri

(the "Business"); and

 

      WHEREAS, Sellers are the owners of all the outstanding membership

interests of the Company; and

 

      WHEREAS, Sellers wish to sell and Buyer wishes to purchase all of the

issued and outstanding membership interests of the Company, in exchange for cash

and shares of common stock, $0.01 par value per share of Parent ("Parent Common

Stock"), upon the terms and subject to the conditions set forth herein;

 

      NOW, THEREFORE, in consideration of the premises and of the mutual

agreements set forth below, and for other good and valuable consideration, the

receipt and sufficiency of which are hereby acknowledged, the Parties hereto do

hereby agree as follows:

 

1.     TRANSFER OF MEMBERSHIP INTERESTS

 

      1.1    THE TRANSFER. On and subject to the terms and conditions contained

            in this Agreement, Sellers will sell, transfer, assign and deliver

            to Buyer, and Buyer will purchase, accept and receive from Sellers,

            in exchange for the aggregate consideration set forth in Section 2

            hereof, all of the Sellers' right, title and interest in and to all

            of the issued and outstanding membership interests in the Company

            (the "Membership Interests"), together with all of the rights,

            benefits, privileges and obligations of the Sellers in the

            Membership Interests.

 

      1.2    CONTINUATION OF THE COMPANY. The Parties acknowledge that Buyer will

            continue the business of the Company despite the termination of

            Sellers' membership interests therein and that the Company shall not

            be dissolved as a result. Sellers, in their capacity as managers and

            members of the Company, hereby consent to the transfer of the

            Membership Interests to Buyer pursuant to this Agreement and to

            Buyer's becoming the sole member of the Company thereby.

 

                                       5

 

<PAGE>

 

      1.3    TERMINATION OF MEMBERSHIP INTERESTS; RESIGNATIONS. Sellers hereby

            acknowledge and agree that, as a result of this transfer of the

             Membership Interests to Buyer, Sellers will cease to hold any

            membership interest in or be members of the Company. At the Closing,

            Sellers shall resign any positions held with the Company, including

            any positions as managing members, managers or officers of the

            Company, effective as of the Closing Date, and further agree that

            they shall not transact any further business or incur any further

            obligations on behalf of the Company, or hold themselves out as

            members, managing members, managers, officers, agents or

            representatives of the Company, from and after the Closing Date.

 

2.     CONSIDERATION

 

      2.1    PURCHASE PRICE. The aggregate price (the "Purchase Price") to be

            paid by the Buyer Parties to the Sellers for the Membership

            Interests, which the Parties hereby agree constitutes fair value for

            the Membership Interests, shall consist of the following:

 

            (a) Closing Consideration. At Closing, or, with respect to the

            Closing Stock Consideration, promptly following the Closing, the

            Buyer Parties shall pay and deliver to the Sellers:

 

                  (1) cash in an amount equal to Five Million, Five Hundred

                  Thousand Dollars ($5,500,000), less the total amount necessary

                  to fully pay and satisfy all of the debt, capital lease and

                  similar obligations of the Company at and as of the Closing

                  set forth on Schedule 2.1(a) hereto (as such amounts are set

                  forth in pay-off letters attached to Schedule 2.1(a)) (the

                  "Closing Cash Consideration");

 

                  (2) Four Hundred Twenty-Eight Thousand, Forty One (428,041)

                  shares of Parent Common Stock ("Closing Stock Consideration"),

                  which the Parties agree is equal to that number of shares of

                  Parent Common Stock determined by dividing Four Million, One

                  Hundred Fifty-Two Thousand Dollars ($4,152,000) by Nine

                  Dollars and Seventy Cents ($9.70), the average of the closing

                  prices per share of Parent Common Stock for the ten

                  consecutive trading days ending on November 29, 2004, as

                  reported by the Nasdaq Stock Market; and

 

                  (3) convertible notes of Parent in the forms attached hereto

                  as Exhibit A in the aggregate principal amount equal to One

                  Million, Five Hundred Thousand Dollars ($1,500,000), issued in

                  the names of the persons listed on Schedule 2.2(d) hereto, in

                  the amounts set forth on such schedule;

 

            (b) Stock Holdback. In addition to the amounts set forth in Section

            2.1(a) above, the Buyer Parties shall pay and deliver if, as and

            when specified in this Section 2.1(b), the following additional

            shares of Parent Common Stock (the "Stock Holdback"):

 

                                       6

 

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                  (1) 10,309 shares shall be retained and held back by the Buyer

                  Parties to reimburse and compensate the Buyer Parties and the

                  Company for any Losses related to the proposed Settlement

                  Agreement between the Company and the State of Missouri

                  (including any increase in the Company's or the Buyer Parties'

                  operating expenses resulting from covenants or conditions

                  imposed on the Company by the Settlement Agreement);

 

                  (2) 20,619 shares shall be retained and held back by the Buyer

                  Parties to reimburse and compensate the Buyer Parties and the

                  Company for any Losses related to the failure to obtain, or

                  any delay in obtaining, all necessary approvals, permits,

                  consents and licenses of governmental authorities for the

                  opening and operation of a landfill cell under construction at

                  the Company's landfill located in Pike County, Missouri,

                  including costs, including lost profits, associated with

                  closing down the landfill and/or transferring operations to a

                  temporary facility; and

 

                  (3) 51,546 shares shall be retained and held back by the Buyer

                  Parties to satisfy all amounts owing in respect of the Liens

                   (as defined in Section 3.14 hereof) on the Company's Real

                  Property (as defined in Section 3.14 hereof) reflected on

                  Schedule 2.1(b) attached hereto, and to pay any related costs

                  and expenses the Buyer Parties may incur in obtaining the full

                  release and removal from the applicable real property records

                  of all such Liens. The Parties acknowledge and agree that the

                  Sellers are jointly and severally obligated to obtain releases

                  of all such Liens and clear them from the real property

                  records applicable to the Company's Real Property and shall

                  use their respective best efforts to do so as soon as possible

                  following the Closing. Notwithstanding the foregoing, if

                  within ninety (90) days after the Closing the Sellers shall

                  not have provided the Buyer Parties with written evidence

                  satisfactory to the Buyer Parties in their reasonable

                  discretion that all of the Liens reflected on Schedule 2.1(b)

                  have been fully released and cleared from the real property

                  records applicable to the Company's Real Property, the Buyer

                  Parties may take all such actions as the Buyer Parties, in

                  their reasonable discretion, deem necessary to satisfy in full

                  and obtain releases of the Company and the Company's Real

                  Property from any and all such Liens then remaining of record,

                  and all of the obligations to which such Liens relate, as well

                  as all costs and expenses incurred by the Buyer Parties in

                   connection with satisfying and obtaining releases from such

                  Liens shall be satisfied first out of the Stock Holdback.

 

            (c) Release of Stock Holdback. With respect to the Losses,

            obligations, costs and expenses described in Sections 2.1(b)(1) and

            2.1(b)(2) above, and so as to reimburse and compensate Parent, Buyer

            and the Company for such amounts, the Parties agree that the Buyer

            Parties shall give written notice of such Losses, obligations, costs

            and expenses to the Sellers reasonably promptly following the

            accrual of such Losses, obligations, costs and expenses, and that

            the Buyer Parties

 

                                       7

 

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            shall be relieved of any obligation to deliver and be entitled to

            cancel, and Sellers shall forfeit any right to receive, that number

            of shares of the Stock Holdback with a market value (which, for

            purposes of this Section 2.1(c), shall be equal to the closing

            market price for shares of Parent Common Stock on the day on which

            the Buyer Parties deliver such written notice to the Sellers or, if

            such day is not a trading day, the next trading day immediately

            following such day) equal to such amounts (as reasonably estimated

            by the Buyer Parties). With respect to the Losses, obligations,

            costs and expenses described in Section 2.1(b)(3), and so as to

            reimburse and compensate Parent, Buyer and the Company for such

            amounts, the Parties agree that the Buyer Parties shall be relieved

            of any obligation to deliver and be entitled to cancel, and Sellers

             shall forfeit any right to receive, that number of shares of the

            Stock Holdback as set forth in clause (z) below. To the extent that

            the value of the shares of Parent Common Stock in the Stock Holdback

            are insufficient to pay such Losses or to fully pay, satisfy and

            reimburse such obligations, costs and expenses, any remaining

            amounts shall be paid by the Sellers. Shares of Parent Common Stock

            remaining of the Stock Holdback, if any, shall be paid to the

            Sellers according to the percentages or other formula set forth in

            Schedule 2.1(c) hereto as follows: (x) with respect to the shares

            held back pursuant to Section 2.1(b)(1) above, such shares shall be

            released to Sellers upon the entering of a final Settlement

            Agreement between the Company and the State of Missouri, (y) with

            respect to the shares held back pursuant to Section 2.1(b)(2) above,

            such shares shall be released to Sellers upon the opening and

            commencement of operations of the new landfill cell referenced above

            and (z) with respect to the shares held back pursuant to Section

            2.1(b)(3) above, Schedule 2.1(b) sets forth the number of shares to

            be released upon the satisfaction, release and clearance from the

            applicable real property records of each Lien reflected on Schedule

            2.1(b), as evidenced by the Buyer Parties' receipt of an endorsement

            issued under the title policy covering the Company's Real Property;

            provided, however, that neither the Buyer Parties nor the Company

            shall have any obligation to request such an endorsement or to

             release shares from the Stock Holdback more frequently than once a

            month. Notwithstanding the foregoing, the Sellers shall be

            responsible for and shall pay promptly when due all fines and

            assessments in connection with the Settlement Agreement referenced

            above.

 

      2.2    PAYMENT OF PURCHASE PRICE.

 

            (a) The Closing Cash Consideration (less such amounts necessary to

            fully pay and satisfy all debt, capital lease and similar

             obligations of the Company at Closing pursuant to Section 2.1(a)(1)

            above) shall be paid by wire transfer of immediately available funds

            to an account or accounts designated by the Sellers in the amounts

            set forth on Schedule 2.2 hereto.

 

            (b) At the Closing, the Buyer Parties shall pay, by wire transfer or

            other immediately available funds, the total amount necessary to

            fully pay and satisfy all debt, capital lease and similar

             obligations of the Company at Closing pursuant

 

                                       8

 

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            to Section 2.1(a)(1) above, which shall be paid out of the Closing

            Cash Consideration.

 

            (c) The portion of the Closing Stock Consideration payable to the

            Sellers pursuant to Section 2.1(a)(1) above and, if and when payable

            pursuant to Section 2.1(b)(2) above, the Stock Holdback (or portion

            thereof) shall be delivered to the Sellers in the amounts set forth

            on Schedule 2.2 hereto.

 

            (d) At the Closing, Parent shall execute and deliver the convertible

            notes of Parent pursuant to Section 2.1(a)(3).

 

      2.3    THE CLOSING. The closing of the transactions contemplated by this

            Agreement (the "Closing") shall take place at the offices of Parent

            located at One Riverway, Suite 1400, Houston, Texas 77056, at 10:00

            a.m., local time, on January 11, 2005, or at such other place or

            time as the Parties may mutually agree upon (the date that the

            Closing actually occurs being referred to as the "Closing Date").

 

3.     REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE SELLERS

 

      The Company and the Sellers make the following representations and

warranties jointly and severally and, unless the context clearly indicates

otherwise, all references to the "Seller Parties" in this Article 3 shall apply

to the Company and the Sellers, jointly and severally, as if each such entity

and person were specifically referenced herein. The Seller Parties represent and

warrant that all of the following representations and warranties are true as of

the date of this Agreement and shall be true as of the Closing:

 

      3.1    DUE ORGANIZATION. The Company is a limited liability company duly

            organized, validly existing and in good standing under the laws of

            its state of organization, and is duly authorized, qualified and

            licensed under all applicable laws, regulations, ordinances and

            orders of public authorities to carry on its business in the places

            and in the manner as now conducted or as proposed to be conducted.

            Copies of the Articles of Organization (certified by the Secretary

            of State of the Company's state of organization) and Operating

            Agreement (certified by the Secretary of the Company) of the

            Company, if any, and the organizational documents of each of the

             Company's subsidiaries, if any, are all attached hereto as Schedule

            3.1. The company records and minute books of the Company and the

            Company's subsidiaries, as heretofore made available to Parent, are

            correct and complete.

 

      3.2    AUTHORIZATION, VALIDITY AND EFFECT OF AGREEMENTS.

 

            (a) This Agreement (i) constitutes, and all agreements and documents

            contemplated hereby when executed and delivered pursuant hereto for

            value received will constitute, the valid and legally binding

            obligations of each of the Seller Parties enforceable in accordance

            with their terms, subject to (A) applicable bankruptcy, insolvency

            or other similar laws relating to creditor's rights generally and

            (B) general principles of equity, regardless of whether considered

            in a

 

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            proceeding in equity or at law, and (ii) has been duly authorized in

            accordance with the Ohio Limited Liability Company Act and the

            Articles of Organization and Operating Agreement of the Company.

 

            (b) The execution and delivery of this Agreement by each of the

            Seller Parties does not, and the consummation of the transactions

            contemplated hereby by the Seller Parties will not, (i) except as

            set forth on Schedule 3.2 hereof, require the consent, approval or

            authorization of, or declaration, filing or registration with, any

            governmental or regulatory authority or any third party; (ii) result

            in the breach of any term or provision of, or constitute a default

            under, or result in the acceleration of or entitle any party to

            accelerate (whether after the giving of notice or the lapse of time

            or both) any obligation under, or result in the creation or

            imposition of any Lien (as defined in Section 3.14) upon any part of

             the property of the Company pursuant to any provision of, any order,

            judgment, arbitration award, injunction, decree, indenture,

            mortgage, lease, license, lien, or other agreement or instrument to

            which the Company is a party or by which it is bound; or (iii)

            violate or conflict with any provision of the Articles of

            Organization or Operating Agreement of the Company as amended to the

            date hereof.

 

      3.3    MEMBERSHIP INTERESTS OF THE COMPANY. The authorized membership

            interests of the Company are shown on Schedule 3.3. All of the

            Company's issued and outstanding membership interests have been duly

            authorized and validly issued, are fully paid and nonassessable, are

            owned of record and beneficially by the Sellers in the amounts set

            forth in Schedule 3.3, and are free and clear of all liens,

            encumbrances and claims of every kind. All such membership interests

            were offered, issued, sold and delivered in compliance with all

            applicable state and federal laws concerning the issuance of

            securities. Further, none of such membership interests were issued

            in violation of the preemptive rights of any past or present member.

 

      3.4    OBLIGATIONS TO ISSUE OR SELL MEMBERSHIP INTERESTS. No right of first

            refusal, option, warrant, call, conversion right or commitment of

            any kind exists which obligates the Company to issue any of its

            authorized but unissued membership interests. In addition, there are

            no (a) outstanding securities or obligations which are convertible

            into or exchangeable for any membership interests or other

            securities of the Company or (b) contracts, arrangements or

            commitments, written or otherwise, under which the Company is or may

            become bound to sell or otherwise issue any membership interests or

            any other securities. Without limiting the generality of the

            foregoing, there is no valid basis upon which any person (other than

            the Sellers) may claim to be in any way the record or beneficial

            owner of, or to be entitled to acquire (of record or beneficially),

            any membership interest or other security of the Company, and no

            person has made or, to any Seller Party's respective knowledge,

            threatened to make any such claim. In addition, the Company has no

            obligation (contingent or otherwise) to purchase, redeem or

            otherwise acquire any of its membership interests or any interests

            therein or to pay any dividend or make any distribution in respect

             thereof.

 

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      3.5    SUBSIDIARIES. Except as set forth on Schedule 3.5, the Company (a)

            does not presently own, of record or beneficially, or control,

            directly or indirectly, any capital stock, securities convertible

            into capital stock or any other equity interest in any corporation,

            association or business entity; or (b) is not, directly or

            indirectly, a participant in any joint venture, partnership or other

            non-corporate entity.

 

      3.6    PREDECESSOR STATUS; ETC. Set forth on Schedule 3.6 is a list of all

            of the names of all predecessors of the Company, including the names

            of any entities from whom the Company previously acquired

            significant assets. Except as disclosed in Schedule 3.6, the Company

            has never been a subsidiary or division of another corporation nor

            been a part of an acquisition which was later rescinded.

 

      3.7    FINANCIAL STATEMENTS.

 

            (a) The Seller Parties have furnished to Parent (and copies of which

            are attached hereto as Schedule 3.7(a)): (i) the Company's balance

            sheet as of December 31, 2001, December 31, 2002 and December 31,

            2003; and (ii) the Company's statement of operations for the years

            ending December 31, 2001, December 31, 2002 and December 31, 2003.

            The financial statements referred to in this subsection are herein

             collectively referred to as the "Financial Statements."

 

            (b) The Seller Parties have furnished to Parent (and copies of which

            are attached hereto as Schedule 3.7(b)): (i) the Company's balance

            sheet as of November 30, 2004 (the "Balance Sheet Date"); and (ii)

            the Company's statement of operations for the period beginning

            January 1, 2004 and ending November 30, 2004. The financial

            statements referred to in this subsection are herein collectively

            referred to as the "Interim Financial Statements."

 

            (c) The Financial Statements and the Interim Financial Statements

            fully and fairly set forth the financial condition of the Business

            as of the dates indicated, and the results of its operations for the

            periods indicated, and are in accordance with generally accepted

            accounting principles consistently applied, except as otherwise

            stated therein or in any attachment to Schedules 3.7(a) and 3.7(b)

            attached hereto.

 

      3.8    LIABILITIES AND OBLIGATIONS. The Seller Parties have delivered to

            Parent on Schedule 3.8(a) an accurate list, as of the Closing Date,

            of all of the Company's liabilities of any kind, character and

            description, whether accrued, absolute, secured or unsecured,

            contingent or otherwise, together with, in the case of those

            liabilities which are not fixed, an estimate of the maximum amount

            which may be payable. For each such liability for which the amount

            is not fixed or is contested, the Seller Parties have provided a

            summary description of the liability. Schedule 3.8(b) lists all

             liabilities which shall be assumed by the Sellers at Closing (all

            such liabilities, together with all accounts payable of the Company

            as of the Closing and all liabilities not disclosed to the Buyer

            Parties on Schedule 3.8(a), if any, shall be referred to herein as

            the "Retained Liabilities").

 

                                      11

 

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      3.9    APPROVALS. Except as set forth on Schedule 3.9, no authorization,

            consent or approval of, or registration or filing with, any

            governmental authority or any other person is or was required to be

            obtained or made by any Seller Party in connection with the

            execution, delivery or performance of this Agreement. All

            authorizations, consents and approvals set forth on Schedule 3.9

            have been obtained, and all registrations and filings have been

            accomplished.

 

      3.10   ACCOUNTS AND NOTES RECEIVABLE. The Seller Parties have delivered to

            Parent on Schedule 3.10(a) an accurate list as of November 30, 2004

            and as of the Closing Date of the Company's accounts and notes

            receivable, including receivables from and advances to its

            employees, managers and members and amounts which are not reflected

            in the most recent available balance sheet. The Seller Parties shall

            provide Parent with an aging of all accounts and notes receivable

            showing amounts due in 30-day aging categories for the Company. Such

            accounts and notes receivable of the Company are collectible in the

            amounts shown on Schedule 3.10(a). Schedule 3.10(b) lists the

            accounts receivable which shall be assigned by the Company to the

            Sellers at Closing (all such assigned accounts receivable, if any,

            shall be referred to herein as the "Assigned Receivables").

 

      3.11   PERMITS AND INTANGIBLES. The Seller Parties have delivered to Parent

             on Schedule 3.11 an accurate list and summary description as of the

            Closing Date of all of the certificates of need, permits, titles

            (including motor vehicle titles and current registrations), fuel

            permits, licenses, orders, approvals, franchises, certificates,

            trademarks, trade names, patents, patent applications, copyrights

            and similar rights of approvals owned or held by the Company, all of

            which are now valid, in good standing and in full force and effect.

            Except as set forth on Schedule 3.11, such permits, titles, fuel

            permits, licenses, orders, approvals, franchises, certificates,

            trademarks, trade names, patents, patent applications, copyrights

            and similar rights of approvals are adequate for the operation of

            the Company's business, as presently constituted. Except as set

            forth on Schedule 3.11, the Seller Parties have delivered to Parent

            a description and copies as of the date of this Agreement, of all of

            the Company's material records, reports, notifications, certificates

            of need, permits, pending permit applications, engineering studies,

            environmental impact studies filed or submitted or required to be

            filed or submitted to governmental agencies, other governmental

            approvals or applications for approval and of all material

            notifications from such governmental agencies.

 

      3.12   PERSONAL PROPERTY, OPTIONS AND LEASES.

 

            (a) The Seller Parties have delivered to Parent on Schedule 3.12 an

            accurate list and a complete description as of the Balance Sheet

            Date of all of personal property, leases for equipment and real

            properties on which are situated buildings, warehouses, workshops,

            garages and other structures used in the operation of the Company's

            business, and any option or right of first refusal to purchase real

            property and including an indication as to which assets were

            formerly owned by business or personal Affiliates of the Company.

            All leases set forth on Schedule

 

                                      12

 

<PAGE>

 

            3.12 are in full force and effect and constitute legal, valid and

            binding agreements of the parties (and their successors) thereto in

            accordance with their respective terms, and no default by the

            Company or any other party thereto has occurred or is continuing

            thereunder. All fixed assets used by the Company in the operation of

            its business are either owned by the Company or leased under an

            agreement indicated on Schedule 3.12. The Seller Parties have also

            indicated on Schedule 3.12 a summary description of all of the

            Company's plans or projects involving the opening of new operations,

            expansion of any existing operations or the acquisition of any real

            or personal property or existing business, to which management of

            the Company has devoted any significant effort or expenditure in the

            two year period prior to the date of this Agreement, which if

             pursued by the Company would require additional expenditures of

            significant efforts or capital. Except as described on Schedule

            3.12, the Company owns all of the assets and properties it uses in

            its business. Except as described on Schedule 3.12, there are no

            liens, mortgages, charges, restrictions, pledges, security

            interests, options, leases, claims, easements, encroachments or

            encumbrances on any property or assets owned or used by the Company.

 

      3.13   CUSTOMERS; CONTRACTS AND COMMITMENTS.

 

            (a) Schedule 3.13(a) sets forth the names and addresses of all of

            the Company's customers as of the date hereof, and sets forth

            monthly billing information related to such customers. None of the

            customers, to the knowledge of the Seller Parties, intends to

            terminate or change significantly, its relationship as presently

            existing, and the Company has not received notice to such effect.

 

            (b) Schedule 3.13(b) sets forth a true and complete list of all of

            the Company's contracts, agreements and other instruments and

            arrangements (whether written or oral) to which the Company is a

             party or by which the Company is bound (the "Contracts"), including

            but not limited to: (i) arrangements relating to providing solid

            waste collection, transportation or disposal services to any person

            or entity; (ii) licenses, permits, insurance policies and other

            arrangements concerning or relating to real estate; (iii)

            employment, consulting, collective bargaining or other similar

            arrangements relating to or for the benefit of current, future or

            former employees, agents, and independent contractors or

            consultants; (iv) agreements and instruments relating to the

            borrowing of money or obtaining of or extension of credit, (v)

            brokerage or finder's agreements; (vi) contracts involving a sharing

            of profits or expenses; (vii) acquisition or divestiture agreements;

            (viii) service or operating agreements, manufacturer's

            representative agreements or distributorship agreements; (ix)

            arrangements limiting or restraining any Seller Party with respect

            to the Business from engaging or competing in any lines of business

            or with any person; (x) documents granting a power of attorney; and

            (xi) any other agreements or arrangements that are material to the

            future operation of the Company.

 

            (c) Except as set forth on Schedule 3.13(c): (i) this Agreement will

            not give rise to the right of any party to terminate or modify any

            contract or agreement, (ii) the

 

                                      13

 

<PAGE>

 

            Company is not a party to any contract, agreement or other

            instrument or commitment which, singly or in the aggregate

            materially and adversely affects or is likely to materially and

            adversely affect the Company's business, operations, properties,

            assets or condition (financial or otherwise); and (iii) the Company

             is not bound by or subject to (and none of its assets or properties

            is bound by or subject to) any arrangement with any labor union.

 

      3.14   REAL PROPERTY. Except as set forth on Schedule 3.14 attached hereto:

 

            (a) The Company owns good and marketable title to its real property

            described on Schedule 3.14 (the "Company's Real Property"), free and

            clear of any lien, mortgage, charge, restriction, pledge, security

            interest, option, lease, claim, easement, encroachment or

            encumbrance ("Lien"), other than the exceptions set forth in

            Schedule 3.14 (the "Permitted Exceptions"), and no person has an

            option to purchase all or any portion of such real property;

 

            (b) The Company's Real Property is not subject to any pending or

            threatened condemnation Proceedings against all or part thereof;

 

            (c) The Company has never granted any person or entity a lease,

            sublease, license, concession, or other right, written or oral, to

            use or occupy the Company's Real Property, nor has the Company ever

            entered into an option, right of first refusal, or other agreement

            that would permit any person or entity to purchase all or part of

            the Company's Real Property; and

 

            (d) The Company has never owned, occupied, or conducted operations

            on any lands, other than the Company's Real Property.

 

      3.15   INSURANCE. The Seller Parties have delivered to Parent on Schedule

            3.15 an accurate list of all of the Company's insurance policies, as

            well as an accurate list of: (a) all of its insurance loss runs and

            worker's compensation claims received for the past three (3) policy

            years; (b) all open claims; and (c) all known circumstances

            reasonably likely to result in a claim. Such insurance policies are

            currently in full force and effect and shall remain in full force

            and effect through the Closing Date. None of the Company's insurance

            has ever been canceled, and the Company has never been denied

            coverage.

 

      3.16   EMPLOYMENT MATTERS. Schedule 3.16 contains a list of all employees

            of the Company, including the annual compensation, hourly wages, and

            daily rate of pay for all such employees. The Company has paid in

            full to, or accrued as a current liability, all employees of the

             Company all wages, salaries, commissions on jobs finished, bonuses

            and other direct compensation for all services performed (including

            accrued vacation) by them prior to the Closing and all amounts

            required to be reimbursed to the employees, and none of the Buyer

            Parties or the Company will, by reason of anything done prior to the

            Closing, be liable to any employee for "severance pay" or any other

            payment. The Company is in material compliance with all federal,

            state, local and foreign laws and regulations

 

                                      14

 

<PAGE>

 

            respecting employment and employment practices, terms and conditions

            of employment and wages and hours.

 

      3.17   PARACHUTE PROVISIONS. The Seller Parties have delivered to Parent on

            Schedule 3.17 an accurate schedule showing all of the Company's

            employment agreements and any other agreements containing

            "parachute" provisions, and deferred compensation agreements (which

            shall be Retained Liabilities pursuant to Section 3.8), together

            with copies of such plans, agreements and any trusts related

            thereto, and classifications of employees covered thereby as of the

            Balance Sheet Date.

 

      3.18   BENEFIT PLANS; ERISA COMPLIANCE.

 

            (a) Schedule 3.18 contains a list of all "employee pension benefit

            plans" (as defined in Section 3(2) of Employee Retirement Income

            Security Act of 1974, as amended ("ERISA")) (sometimes referred to

            in this Section 3.18 as "Pension Plans"), "employee welfare benefit

            plans" (as defined in Section 3(1) of ERISA) (sometimes referred to

             in this Section 3.18 as "Welfare Plans") and all other Benefit

            Plans, as defined below, currently maintained in whole or in part,

            contributed to, or required to be contributed to by the Company for

            the benefit of any present or former officer, employee or director

            of the Company. For purposes of this Agreement, the term "Benefit

            Plan" shall mean any collective bargaining agreement or any bonus,

            pension, profit sharing, deferred compensation, incentive

            compensation, stock ownership, stock purchase, stock option, phantom

            stock, retirement, vacation, severance, disability, death benefit,

            hospitalization, medical, dependent care, cafeteria, employee

            assistance, scholarship or other plan, program, arrangement or

            understanding (whether or not legally binding) maintained in whole

            or in part, contributed to, or required to be contributed to by the

            Company for the benefit of any present or former officer, employee

            or director of the Company which is not a Pension Plan or Welfare

            Plan. The Seller Parties have delivered to Parent true, complete and

            correct copies of (a) each of the Company's Pension Plans, Welfare

            Plans and Benefit Plan (or, in the case of any unwritten Benefit

            Plans, descriptions thereof), (b) all material correspondence for

            the last three (3) years prior to the Closing Date with the IRS or

            the United States Department of Labor relating to plan

            qualification, filing of required forms, pending, contemplated or

            announced plan audits with respect to any such Pension Plan, Welfare

             Plan or Benefit Plan, if any and (c) all other information

            reasonably requested by Parent.

 

            (b) The Company does not maintain any Pension Plan or Benefit Plan

            intended to be a tax qualified plan described Section 401(a) of the

            Code, and no such plan is or has been subject to the minimum funding

            rules of Code Section 412 or ERISA Section 302, or the plan

            termination insurance provisions of Title IV of ERISA.

 

            (c) Each of the Pension Plans, Welfare Plans and Benefit Plans

            sponsored by, and each of the benefit plans formerly sponsored by,

            the Company: (i) has been in material compliance with all reporting

            and disclosure requirements of (A) Part 1 or Subtitle B of Title I

            of ERISA, if applicable, or (B) other applicable law, (ii)

 

                                      15

 

<PAGE>

 

            has had the appropriate required Form 5500 (or equivalent annual

            report) filed timely with the appropriate governmental entity for

            each year of its existence, (iii) has at all times complied with the

            bonding requirements of (A) Section 412 of ERISA, if applicable, or

            (B) other applicable law, (iv) has no issue pending (other than the

            payment of benefits in the normal course) nor any issue resolved

            adversely to the Company or any of its subsidiaries which may

            subject the Company or any of its subsidiaries to the payment of any

            material penalty, interest, tax or other obligation, nor is there

            any basis for any imposition of any such liability, and (v) has been

            maintained in all respects in material compliance with the

            applicable requirements of ERISA, the Code and other applicable law

            not otherwise covered hereunder so as not to give rise to any

            material liabilities to the Company.

 

            (d) There are no voluntary employee benefit associations maintained

            by the Company and intended to be exempt from federal income tax

            under Section 501(c)(9) of the Code.

 

            (e) Neither the execution of this Agreement nor the consummation of

            the transactions contemplated by this Agreement will give rise to

            any, or trigger any, change of control, severance or other similar

            provisions in any Pension Plan, Welfare Plan or Benefit Plan

            sponsored by the Company. The consummation of any transaction

            contemplated by this Agreement will not result in any: (i) payment

            (whether of severance pay or otherwise) becoming due from the

            Company to any of its officers, employees, former employees or

            directors or to the trustee under any "rabbi trust" or similar

            arrangement; (ii) benefit under any Benefit Plan of the Company

            being established or becoming accelerated, vested or payable; or

            (iii) payment or series of payments by the Company, directly or

            indirectly, to any person that would constitute a "parachute

            payment" within the meaning of Section 280G of the Code.

 

            (f) The Company does not provide any material post-retirement

             medical, health, disability or death protection coverage or

            contribute to or maintain any employee welfare benefit plan which

            provides for medical, health, disability or death benefit coverage

            following termination of employment by any officer, director or

            employee except as is required by Section 4980B(f) of the Code or

            other applicable statute, nor has the Company made any

            representations, agreements, covenants or commitments to provide

            that coverage.

 

            (g) With respect to any Welfare Plan of the Company, (i) each such

            Welfare Plan that is a group health plan, as such term is defined in

            Section 5000(b)(1) of the Code, complies in all material respects

            with any applicable requirements of Part 6 of Title I of ERISA and

            Section 4980B(f) of the Code and (ii) each such Welfare Plan

            (including any such plan covering retirees or other former

            employees) may be amended or terminated with respect to health

            benefits without material liability to the Company on or at any time

            after the Closing Date.

 

                                      16

 

<PAGE>

 

            (h) All contributions required by law or by a collective bargaining

            or other agreement to be made under any Pension Plan, Welfare Plan

            or Benefit Plan of the Company with respect to all periods through

            the Closing Date, including a pro rata share of contributions due

            for the current plan year, will have been made by such date or

            provided for by adequate reserves by the Company. No changes in

            contribution rates or benefit levels have been implemented or

            negotiated (but not yet implemented), with respect to any Pension

            Plan, Welfare Plan or Benefit Plan of the Company since the date on

            which the information provided in the attached Schedule has been

            provided, and no such changes are scheduled to occur.

 

            (i) The Company has not, nor will the Company have, any liability or

            obligation for taxes, penalties, contributions, losses, claims,

            damages, judgments, settlement costs, expenses, costs, or any other

            liability or liabilities of any nature whatsoever arising out of or

            in any manner relating to any Pension Plan, Welfare Plan or Benefit

            Plan (including but not limited to employee benefit plans such as

            foreign plans which are not subject to ERISA), that has been, or is,

            contributed to by any entity, whether or not incorporated, which is

            deemed to be under common control (as defined in Section 414 of the

             Code), with the Company.

 

      3.19   CONFORMITY WITH LAW.

 

            (a) The Company has complied with, and the Company is not in

            material default under, any law, rule, ordinance, ruling, directive,

            or regulation or under any order, award, judgment or decree of any

            court or federal, state, municipal or other governmental department,

            commission, board, bureau, agency or instrumentality having

            jurisdiction over the Company or any of its assets or businesses;

            there are no claims, actions, suits or Proceedings, pending or

            threatened, against or affecting the Company, at law or in equity,

            or before or by any federal, state, municipal or other governmental

            department, commission, board, bureau, agency or instrumentality

            having jurisdiction over the Company or its business; and no notice

            of any claim, action, suit or Proceeding, whether pending or

            threatened, has been received by the Company.

 

            (b) The Company has conducted and is conducting its business in

            material compliance with the requirements, standards, criteria and

            conditions set forth in applicable federal, state and local

            statutes, ordinances, permits, licenses, orders, approvals,

            variances, rules and regulations, including, without limitation, all

            such laws, rules, ordinances, decrees and orders relating to

            intellectual property protection, transportation, wage and hour,

            antitrust matters, consumer protection, currency exchange,

            environmental protection, equal employment opportunity, health and

            occupational safety, pension and employee benefit matters,

            securities and investor protection matters, labor and employment

            matters, and trading-with-the-enemy matters.

 

            (c) The Company has not received any notification of any asserted

            present or past unremedied failure by it to comply with any of such

            laws, rules, ordinances, decrees or orders.

 

                                      17

 

<PAGE>

 

      3.20   TAXES. Except as set forth in Schedule 3.20:

 

            (a) The Company has timely filed or, if not yet due, will timely

            file all Tax Returns required to be filed by it on or before the

            Closing Date and all such Tax Returns are or, in the case of Tax

            Returns not yet filed, will be, true, correct and complete in all

            material respects and the Company has paid when due all Taxes

            reported thereon or, in the case of Taxes not yet due, will pay such

            Taxes when due. All Taxes required to be paid by the Company

            (whether or not shown on any Tax Return) have been paid on a timely

            basis.

 

            (b) Copies of (i) any Tax examinations, (ii) extensions of statutory

            limitations, and (iii) the federal and local income Tax returns of

             the Company for the most recent three (3) Tax years (or such shorter

            period of time as the Company has existed) are attached as Schedule

            3.20.

 

            (c) The amounts shown as accruals for Taxes on the Interim Financial

             Statements delivered to Parent as a part of Schedule 3.7(b) are

            sufficient for the payment of all Taxes of the kinds indicated

            (including penalties and interest) for all fiscal periods ended on

            or before the Closing Date, the Company has reserved an amount

            sufficient to pay all such Taxes, and the working capital of the

            Company is sufficient to pay any such Tax applicable to it.

 

            (d) No extension of time has been requested or granted for the

            Company to file any Tax Return that has not yet been filed or to pay

            any Tax that has not yet been paid and the Company has not granted a

            power of attorney that remains outstanding with regard to any Tax

             matter.

 

            (e) The Company has complied in all respects with all applicable

            Laws, rules and regulations relating to withholding Taxes and

            information returns, including, without limitation, the withholding

             and reporting requirements under Sections 1441 through 1464, 3401

            through 3406, and 6041 through 6048 of the Code, as well as any

            similar provisions under any other laws, and has, within the time

            and manner prescribed by law, withheld from employee wages and other

            payments and paid over to the proper government body all amounts

            required to have been so withheld and paid.

 

            (f) There is no pending or, to the knowledge of the Company or any

            Seller, proposed Tax audit of the Company or any Seller with regard

            to Tax Matters relating to the Company.

 

            (g) The Parent has received copies of all material audit reports and

            correspondence between the Company, or any Seller with regard to Tax

            matters relating to the Company, and any Tax Authority issued or

            made during the last three (3) years. A complete summary of all oral

            communications between the Company or any Seller and any Tax

            Authority relating to any Tax audits of the Company during such

            years, including without limitation any Tax audit that is in

 

                                      18

 

<PAGE>

 

            progress or for which a still effective extension of the statute of

            limitations was granted.

 

            (h) The Company has not received within the last four (4) years

            notice of a Tax deficiency (or such shorter period of time as the

            Company has existed) and, to the knowledge of the Company, no Tax

            deficiency is pending or proposed, and no issue has been raised in

            any Tax audit which, by application of similar principles to any

            past, present or future period, would result in an adjustment to the

            amounts reported in a subsequent period.

 

            (i) There are no Liens, other than Permitted Exceptions, arising

            from or related to Taxes on or ending against the Company or any of

             its properties.

 

            (j) There are no presently outstanding waivers or extensions or

            requests for waiver or extension of the time within which a Tax

            deficiency may be asserted or assessed.

 

            (k) The Company has not changed any Tax accounting method during any

            of the seven (7) most recent Taxable years ending on or before the

            Closing Date, (or such shorter period of time as the Company has

            existed). The Company has not taken any action, whether or not

            required, that has resulted or will result in deferring a liability

            for Taxes of the Company from any taxable period ending on or before

            the Closing Date to any taxable period ending after such date,

            unless such action is in accordance with past practice.

 

            (l) The Company has never been required to include in income any

            adjustment pursuant to section 481 of the Code and no Tax Authority

            has ever made or proposed any such adjustment. The Company has never

            entered into a closing agreement, as described in section 7121 of

            the Code, or an advance pricing agreement or other agreement with a

            Tax Authority relating to Taxes.

 

            (m) The Company does not own any property that is tax-exempt use

            property within the meaning of section 168(h) of the Code, that is

            described in section 168(f)(8) of the Code as in effect prior to its

             amendment by the Tax Reform Act of 1986, that is tax-exempt bond

            financed property within the meaning of Section 168(g) of the Code

            or that is "limited use property" within the meaning of Rev. Proc.

            76-30.

 

             (n) None of the property of the Company directly or indirectly

            secures any debt the interest on which is tax exempt under section

            103(a) of the Code.

 

            (o) The Company is not a party to any arrangement to which sections

            162(m) or 280G of the Code could under any circumstances apply.

 

            (p) The Company is a partnership for federal income tax purposes,

            and has been a partnership for federal income tax purposes

            throughout its entire existence.

 

                                      19

 

<PAGE>

 

            (q) The Company is not now or has never been (i) an includable

            member, including a parent, of an "affiliated group" within the

            meaning of section 1504(a) of the Code or otherwise liable for the

            Taxes of a person other than itself pursuant to Treasury Regulation

            section 1.1502-6 or any similar provision of state, local or foreign

            law, whether or not as a transferee, a successor, by operation of

            law, by contract or otherwise, (ii) a member of any consolidated,

            combined or unitary Tax Return filing group, (iii) a party to any

            Tax sharing agreement, Tax indemnity agreement or similar agreement,

            arrangement or practice with respect to Taxes, including an

            agreement that obligates it to make any payment computed by

            reference to the Taxes, Taxable income or Tax losses of any other

            individual or entity, (iv) the owner of a more than 50% interest, by

            voting power or by value, in an entity treated as corporation for

            federal income tax purposes, or the (v) the owner of an interest in

            an entity that is or is treated as a Tax partnership, trust,

            regulated investment company as defined in section 851 of the Code,

            real estate investment trust as defined in section 856 of the Code

            or foreign personal holding company as defined in section 552(a) of

            the Code.

 

            (r) The Company has disclosed on its federal, state, local and

            foreign income Tax Returns all positions taken therein that could

            give rise to a penalty under section 6662 of the Code or any

            corresponding provision of state, local or foreign Tax law.

 

            (s) No unresolved claim, and to the knowledge of the Company, no

            claim has ever been made by a Tax Authority in a jurisdiction in

            which the Company does not pay Taxes or file Tax Returns that such

            entity is or may be subject to Tax in such jurisdiction.

 

            (t) The Company has never requested a private ruling from a Tax

            Authority on any matter.

 

            (u) The Company has retained all supporting and backup papers,

            receipts, spreadsheets and other information necessary for the

            preparation of all Tax Returns that have not yet been filed and the

            defense of Tax audits involving all Taxable periods either ended on

            or during the six (6) years prior to the Closing Date (or such

            shorter period of time as the Company has existed).

 

            (v) The Company has collected and remitted to the appropriate Tax

             Authorities all sales and use and similar Taxes required to have

            been collected and remitted on or prior to the Closing Date and has

            been furnished, and if required has filed, properly completed

            exemption certificates for all exempt transactions. The Company has

            maintained and has in its possession all records, supporting

            documents and exemption and resale certificates required by

            applicable sales Tax statutes and regulations to be retained in

            connection with the collection and remittance of sales and use and

            similar Taxes for all periods up to and including the Closing Date.

 

                                      20

 

<PAGE>

 

            Each reference to a provision in this Section 3.20 shall be treated

            for state, local and foreign Tax purposes as a reference to

            analogous or similar provisions of state and local law.

 

      3.21   COMPLETENESS. The certified copies of the Articles of Organization

            and Operating Agreement, both as amended to date, of the Company and

            the copies of all leases, instruments, agreements, licenses,

            permits, certificates or other documents which are included on

            schedules attached hereto or which have been delivered to Parent in

            connection with the transactions contemplated hereby are complete

            and correct; neither the Company nor any other Party hereto is in

            default thereunder; except as set forth in the schedules and

            documents attached to this Agreement, the rights and benefits of the

            Company thereunder will not be adversely affected by the

            transactions contemplated hereby; and the execution of this

            Agreement and the performance of the obligations hereunder will not

            violate or result in a breach or constitute a default under any of

            the terms or provisions thereof. None of such leases, instruments,

            agreements, contracts, licenses, permits, certificates or other

            documents requires notice to, or the consent or approval of, any

            governmental agency or other third party to any of the transactions

            contemplated hereby to remain in full force and effect or give rise

            to any right to termination, cancellation or acceleration or loss of

            any right or benefit hereunder.

 

      3.22   GOVERNMENT CONTRACTS. Except as set forth on Schedule 3.22, the

             Company is not now, and has never been, a party to any governmental

            contract subject to price redetermination or renegotiation.

 

      3.23   ABSENCE OF CHANGES. Except as set forth in Schedule 3.23, since the

            Balance Sheet Date, there has not been:

 

            (a) any material adverse change in the financial condition, assets,

            liabilities (contingent or otherwise), income or business of the

            Company;

 

            (b) any damage, destruction or loss (whether or not covered by

            insurance), change in zoning, or change in any law, rule,

            regulation, ordinance, or permit condition, materially adversely

            affecting the properties or business of the Company;

 

            (c) any change in the authorized or outstanding membership interests

            of the Company or any grant of any options, warrants, calls,

            conversion rights or commitments;

 

            (d) any declaration or payment of any dividend or distribution in

             respect of the membership interests or any direct or indirect

            redemption, purchase or other acquisition of any of the membership

            interests of the Company;

 

            (e) any bonus or any increase in the compensation, sales

            commissions, fringe benefits or fee arrangement payable or to become

            payable by the Company to any of its managers, managing members,

            officers, employees, consultants or agents or any change in the

            method by which sales commissions are calculated and paid;

 

                                      21

 

<PAGE>

 

            (f) any work interruptions, labor grievances or claims filed or, to

            any Seller Party's knowledge, any proposed law or regulation or any

            event or condition of any character, materially adversely affecting

            the business or future prospects of the Company;

 

            (g) any sale or transfer, or any agreement to sell or transfer, any

            assets, property or rights of the Company to any person;

 

            (h) any cancellation, or agreement to cancel, any indebtedness or

            other obligation owing to the Company;

 

            (i) any plan, agreement or arrangement granting any preferential

             rights to purchase or acquire any interest in the assets, property

            or rights of the Company or requiring consent of any party to the

            transfer and assignment of any such assets, property or rights;

 

            (j) any purchase or acquisition, or agreement, plan or arrangement

            to purchase or acquire, any property, rights or assets of the

            Company;

 

            (k) any waiver of any material rights or claims of the Company;

 

            (l) any breach, amendment or termination of any material contract,

            agreement, license, permit or other right to which the Company is a

            party; or

 

            (m) any transaction by the Company outside the ordinary course of

            its business.

 

      3.24   DEPOSIT ACCOUNTS; POWERS OF ATTORNEY.

 

            (a) The Company has delivered to Parent on Schedule 3.24 an accurate

            list as of the date of this Agreement, of:

 

                  (1) the name of each financial institution in which the

                  Company has accounts or safe deposit boxes;

 

                  (2) the names in which such accounts or boxes are held;

 

                  (3) the type of accounts; and

 

                  (4) the name of each person authorized to draw thereon or have

                  access thereto.

 

            (b) Schedule 3.24 also sets forth the name of each person,

            corporation, firm or other entity holding a general or special power

            of attorney from the Company or any of its subsidiaries and a

            description of the terms of such power. Each such power has been or

            will be canceled on or before the Closing Date.

 

      3.25   PROPRIETARY RIGHTS. Except as set forth on Schedule 3.25, the

            Company does not own or have any right or interest in any

            Intellectual Property, or any license or

 

                                      22

 

<PAGE>

 

            assignment with respect thereto. The Company has not granted to any

            third party a license or other authorization to use any Intellectual

            Property of the Company, and no third party owns any ownership

            interest in or holds any claim, lien or other encumbrance, on the

            Company's Intellectual Property. None of the Seller Parties has

            received any notification that the Company has infringed upon or is

            infringing upon, or has engaged in or is engaging in any

            unauthorized use or misappropriation of, any Intellectual Property

            owned by or belonging to any other person; and there is no pending

            or threatened claim, and no basis for the assertion of any claim,

            against the Company with respect to any such infringement,

            unauthorized use or misappropriation. The Company has not entered

            into any licensing agreements to use the Intellectual Property of

            third parties, and does not owe to any third parties royalties for

            the use of Intellectual Property.

 

      3.26   VALIDITY OF OBLIGATIONS. The execution and delivery of this

            Agreement by the Company and the performance of the transactions

            contemplated herein have been duly and validly authorized and

            approved by the managers and the members of the Company, and this

            Agreement has been duly and validly authorized by all necessary

            limited liability company action and is a legal, valid and binding

            obligation of the Company and each Seller.

 

      3.27   RELATIONS WITH GOVERNMENTS. Neither the Company, nor any member,

            manager, director, officer, agent, employee or other person acting

            on behalf of the Company, has used any funds of the Company for

            improper or unlawful contributions, payments, gifts or

            entertainment, or made any improper or unlawful expenditures

            relating to political activity to domestic or foreign government

            officials or others. The Company has adequate financial controls to

            prevent such improper or unlawful contributions, payments, gifts,

            entertainment or expenditures. Neither the Company, nor any member,

            manager, director, officer, agent, employee or other person acting

            on behalf of the Company, has accepted or received any improper or

            unlawful contributions, payments, gifts or expenditures. The Company

            has at all times complied, and is in compliance, in all material

            respects, with the Foreign Corrupt Practices Act and in all material

            respects with all foreign laws and regulations relating to

            prevention of corrupt practices.

 

      3.28   CONFLICTS OF INTEREST. Except as set forth on Schedule 3.28, neither

            (a) any past or present officer, manager or member of the Company,

            nor (b) any relative of any past or present officer, manager or

            member of the Company, nor (c) any corporation, partnership, trust

            or other entity of which any such past or present officer, manager

            or member of the Company has a direct or indirect interest or is a

            director, officer, member, manager, stockholder, partner or trustee,

            is or has ever been a party, directly or indirectly, to any

            transaction with the Company, including without limitation any

            agreement or other arrangement providing for the furnishing of

            services by or to the Company or the rental of any property from or

            to the Company, or otherwise requiring or contemplating any payments

            by or to the Company. Except as set forth on Schedule 3.28, neither

            any present officer, manager or member of the Company, nor any

             relative of any such officer, manager or member, owns directly or

            indirectly any interest in any corporation,

 

                                      23

 

<PAGE>

 

            firm, partnership, trust or other entity or business which is a

             competitor, potential competitor, customer, client or supplier of

            the Company or any related business. For purposes of this Section

            3.28, competitors shall include, without limitation, persons or

            entities engaged in waste transportation, recycling and/or disposal

            operations. The Sellers do not own any legal or equitable interest

            in, nor is any Seller the holder of liens on, any real property,

            equipment, fixtures, vehicles, Intellectual Property, contract

            rights, permits, licenses, accounts, general intangibles, or other

            assets utilized by the Company in the operation of its businesses.

            Except as set forth in Schedule 3.28, none of the Sellers has any

            claims against, or are owed any amounts (including, without

            limitation any bonuses, commissions, royalties, rentals or other

            payments) by, the Company. Except as set forth in Schedule 3.28, no

            Seller has incurred any liability, contingent or otherwise, to, nor

            is any Seller indebted to, the Company.

 

      3.29   ENVIRONMENTAL MATTERS. The Seller Parties have delivered to Parent

            all of the correspondence, agreements, notices or other documents

            related to the items set forth on Schedule 3.29. Schedule 3.29 also

            contains a list of all disposal sites used by the Business since its

            inception.

 

            Except as set forth in Schedule 3.29:

 

             (a) The Company and any property (whether real or personal) which is

            or was formerly leased, used, operated, owned or managed in whole or

            in part in any manner by the Company or any of its organizational

            predecessors (individually, any "Business Facility", and

            collectively, the "Business Facilities") and all operations of the

            Company and its Business Facilities, are in material compliance and

            have been in material compliance with all applicable Environmental

            Laws;

 

            (b) the Company and its Business Facilities have obtained and are in

            compliance with all permits, licenses, registrations, approvals and

            other authorizations (including all applications for all of the

            foregoing) required under any Environmental Law for the business of

            the Company as currently conducted (collectively, "Environmental

            Permits"), and Schedule 3.29 contains an accurate and complete

            listing of all of its Business Facilities and all of its

            Environmental Permits of the Company;

 

            (c) there is no past or present event, condition or circumstance

            that may interfere with the conduct of the Company's business in the

            manner now conducted relating to the Company's compliance with

            Environmental Laws or which constitutes a violation thereof, or

            which could have a material adverse effect upon th


 
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