Exhibit 2.10
STOCK PURCHASE AGREEMENT
THIS STOCK
PURCHASE AGREEMENT, made as of the 2nd day of October, 2007, by and
among Rio Vista GO, LLC, an Oklahoma limited liability company or
its assigns (“ Buyer ”) and Rio Vista Energy
Partners L.P., a Delaware limited partnership (“ Rio
Vista ”), and Outback Production, Inc., a Nevada
corporation (“ Seller ”) and GO, LLC, an
Oklahoma limited liability company (the “ Company
”), and Gary Moores and Bill Wood (individually, a “
Shareholder ” and collective, the “
Shareholders ”).
RECITALS :
Seller owns
all of the issued and outstanding shares of membership interest
(the “ Membership Interests ”) of the Company,
as set forth on Schedule 3.1 ;
Buyer desires
to acquire the Membership Interest on the terms and conditions
hereinafter set forth.
Company is
engaged in the business of owning and operating an oil and gas
pipeline (the “ Business ”); and
A list of
defined terms appears in Section 17 of this
Agreement.
AGREEMENT:
NOW,
THEREFORE, in consideration of the premises and of the mutual
covenants hereinafter set forth, the parties hereto, intending to
be legally bound, hereby agree as follows:
1.
Acquisition of Membership Interest and Exchange of
Units.
1.1
Purchase Price . On the Closing Date, the Seller shall
convey, transfer and assign, upon the terms and conditions herein
set forth, to Buyer, free and clear of all liens, security
interests, pledges, claims and encumbrances of every kind, nature
and description, and Buyer shall accept from the Seller, all but
not less than all of the Membership Interests in exchange for a
total purchase price (the “ Purchase Price ”)
payable as follows:
1.1.1 Subject
to Section 1.1.2, at Closing, Buyer will pay Seller $3,000,000
in cash or other immediately available funds and will deliver to
Seller ninety-one thousand nine hundred nine-six (91,996) common
units of Rio Vista (the “Purchase Price Units”).
1.1.2 Upon
execution of this Agreement, Buyer will immediately pay Seller via
wire transfer a non-refundable deposit in cash or other immediately
available funds in the amount $400,000 (the “Deposit”).
In no event shall the Deposit be refundable to Buyer. The Deposit
shall be credited against the cash portion of the Purchase Price at
Closing, as shall any additional deposit paid to the Seller
pursuant to Section 10.1.
2.
Representations and Warranties of the Seller and the
Shareholders. As material inducement to Buyer to enter into
this Agreement and to close hereunder, the Seller and the
Shareholders hereby jointly and severally make the following
representations, warranties and agreements to and with Buyer:
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2.1 Due
Organization; Capitalization; and Articles, Bylaws and Records
.
2.1.1 Seller
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada. Company is a
limited liability company duly organized, validly existing and in
good standing under the laws of the State of Oklahoma and has the
full limited liability company power and authority to own its
properties, carry on its business as it is now being conducted and
perform its obligations under all Contracts, and is duly qualified
to do business as a foreign corporation in the jurisdictions
specified in Schedule 2.1 , which constitutes all the
jurisdictions in which such qualification is required.
2.1.2 The
issued and outstanding Membership Interests are as set forth in
Schedule 3.1. The Membership Interests are owned by the
Seller, free and clear of all liens, encumbrances, security
agreements, options, claims, charges and restrictions, all of which
outstanding shares are validly issued, fully paid and
non-assessable. There are no outstanding options, warrants, calls,
commitments or plans by the Seller to admit new members to the
Company; to make distributions to the Seller; or to purchase,
redeem, or retire any outstanding Membership Interest; nor are
there outstanding any securities or obligations that are
convertible into or exchangeable for a legal or beneficial interest
in the Company.
2.1.3 The
minute books and stock records of Company and its subsidiaries are
complete and accurate and all signatures included therein are the
genuine signatures of the persons indicated as signing. True,
correct and complete copies of Company’s and each
subsidiary’s minute books and stock records, including
Company’s and each subsidiary’s organizational
documents and all amendments to both, have been delivered to or
made available for inspection by the Buyer. The Company is not in
default under or in violation of any provision of its
organizational documents. The books of account, stock records,
minute books and other records of Company are accurate, up-to-date
and complete, and have been maintained in accordance with prudent
business practices.
2.1.4 The
Company has no subsidiaries.
2.1.5 The
Company is a Oklahoma limited liability company which was recently
converted from a corporation that conducted business under the name
GO, Inc. (The Company’s recent conversion, issuance of
Membership Interests and all other related corporate activities
incident thereto are hereby excluded from all representations and
warranties set forth below.)
2.2
Authority; Binding Nature of Agreements . Seller has the
absolute and unrestricted right, power and authority to enter into
and to perform its obligations under this Agreement and all other
agreements, certificates and instruments contemplated to be
executed and delivered by Seller in connection with this Agreement,
and the execution, delivery and performance by Seller of this
Agreement and such other agreements, certificates and instruments
have been duly authorized by all necessary action on the part of
Seller and its shareholders, board of directors and officers. Each
of this Agreement and such other agreements, certificates and
instruments constitutes, or upon execution and delivery will
constitute, the legal, valid and binding obligation of Seller,
enforceable against Seller in accordance with its terms, except as
enforceability may be limited by bankruptcy and other similar laws
affecting creditors rights.
2.3 Non
Contravention; Consents . Neither the execution and delivery of
this Agreement, nor the consummation or performance of any of the
transactions contemplated hereby, will directly or indirectly (with
or without notice or lapse of time):
2.3.1
contravene, conflict with or result in a violation of (a) any
of the provisions of Seller’s or Company’s
organizational documents, (b) any resolution adopted by
Company’s members or managers, or (c) any resolution
adopted by Seller’s shareholders or board of directors or any
committee thereof;
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2.3.2
contravene, conflict with or result in a violation of, or give any
Governmental Body or other Person the right to challenge any of the
transactions contemplated hereby or to exercise any remedy or
obtain any relief under, any Legal Requirement or any Order to
which Company or Seller, or any of the assets owned or used by
Company, is subject;
2.3.3 cause
Company to become subject to, or to become liable for the payment
of, any Tax;
2.3.4
contravene, conflict with or result in a violation of any of the
terms or requirements of, or give any Governmental Body the right
to revoke, withdraw, suspend, cancel, terminate or modify, any
Governmental Authorization that is held by Company or any of its
employees or that otherwise relates to Company’s business or
to any of the assets owned or used by Company;
2.3.5
contravene, conflict with or result in a violation or breach of, or
result in a default under, any provision of any of the
Contracts;
2.3.6 give
any Person the right to (a) declare a default or exercise any
remedy under any Contract, (b) accelerate the maturity or
performance of any Contract, or (c) cancel, terminate or
modify any Contract;
2.3.7 give
any Person the right to any payment by Company or give rise to any
acceleration or change in the award, grant, vesting or
determination of options, warrants, rights, severance payments or
other contingent obligations of any nature whatsoever of Company in
favor of any Person, in any such case as a result of the change in
control of Company or otherwise resulting from the transactions
contemplated hereby;
2.3.8
contravene, conflict with or result in a violation or breach of or
a default under any provision of, or give any Person the right to
declare a default under, any Contract to which Seller is a party or
by which Seller is bound; or
2.3.9 result
in the imposition or creation of any Encumbrance upon or with
respect to any asset owned or used by Company.
None of the
Company, Shareholders or Seller was, is or will be required to make
any filing with or give any notice to, or to obtain any consent or
approval from, any Person in connection with the execution and
delivery of the Agreement or the consummation or performance of any
of the transactions contemplated hereby.
2.4
Subsidiaries and Joint Ventures . Except as disclosed on
Schedule 2.4 , there is no Entity in which Company
owns, directly or indirectly, a controlling interest or a majority
of the outstanding shares or other equity interest issued by such
Entity, nor does Company own any other capital stock, security,
partnership interest or other interest of any kind, either direct
or indirect, in any Entity. Schedule 2.4 states the
jurisdiction of incorporation of each such subsidiary and the
jurisdictions in which it is qualified to do business as a foreign
entity. Each such subsidiary is qualified in all jurisdictions in
which such qualification is required.
2.5
Financial Statements .
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2.5.1 Company
has delivered to the Buyer the following financial statements and
notes, which are included in Schedule 2.5
(collectively, the “ Financial Statements
”):
(a) the
unaudited balance sheets of Company as of September 21, 2007
(the “ Unaudited Interim Balance Sheet ”), and
related unaudited statements of operations for the period from the
date of the audited balance sheet.
2.5.2 The
Financial Statements are complete and correct, in accordance with
the books and records of Company, present fairly and accurately the
consolidated financial position of Company as of the respective
dates thereof and the results of operations and changes in
shareholder’s equity and cash flows of Company for the
respective periods covered thereby, and have been prepared in
conformity with GAAP applied on a consistent basis, subject, in the
case of the unaudited financial statements, to normal recurring
year-end adjustments, the effect of which will not be material, and
the absence of notes. The Financial Statements do not contain any
items of special or nonrecurring income or any other income not
earned in the Ordinary Course of Business except as specified
therein. Company has delivered to or made available for inspection
by the Buyer true and correct copies of all correspondence sent by
all legal counsel for Company to the auditors which audited such
Financial Statements in response to letters from Company to such
counsel requesting that such counsel supply the auditors with
certain information regarding pending or threatened litigation,
unasserted claims and other matters relevant to the auditors’
audit of such financial statements.
2.6
Liabilities; Suppliers .
2.6.1 Company
has no Liabilities, except for:
(a) liabilities reflected as part of the Unaudited Interim
Balance Sheet;
(b) liabilities (of the type required to be reflected as
current liabilities on a balance sheet prepared in accordance with
GAAP) incurred by Company in the Ordinary Course of Business since
the date of Unaudited Interim Balance Sheet, none of which
individually or in the aggregate had or will have a material
adverse effect on the business of Company or its financial
condition, and
(c) Company’s obligations under the Contracts listed in
Schedule 2.6 .
2.6.2
Schedule 2.6 : (a) provides a materially accurate
and complete breakdown and aging of Company’s accounts
payable as of the date of Unaudited Interim Balance Sheet;
(b) provides a materially accurate and complete breakdown of
all customer deposits and other deposits held by Company as of the
date of Unaudited Interim Balance Sheet; and (c) provides a
materially accurate and complete breakdown of Company’s long
term debt as of the date of this Agreement. Except as disclosed in
Schedule 2.6 , neither Company nor Seller has any
notice of or reason to believe that any supplier of Company will
cease to be a supplier of Company after the Closing.
2.7 Absence
of Changes . Except as set forth in Schedule 2.7 ,
since the date of Unaudited Interim Balance Sheet through the date
of Closing:
2.7.1 there
has not been and will not be any material adverse change in
Company’s business, condition, assets, liabilities,
operations, financial performance, results of operations or
prospects, and no event has occurred that likely would have a
materially adverse effect on Company’s business, condition,
assets, liabilities, operations, financial performance, results of
operations or prospects;
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2.7.2 there
has not been and will not be any material loss, damage or
destruction to, or any interruption in the use of, any of
Company’s assets (whether or not covered by insurance);
2.7.3 Company
has not (i) declared, accrued, set aside or paid any dividend
or made any other distribution in respect of any shares of
Membership Interest, (ii) repurchased, redeemed or otherwise
reacquired any shares of Membership Interest or other securities,
or (iii) excluding payment of ordinary salaries or
reimbursement of expenses, transferred assets of any kind to any
Person, and will not do any of the foregoing from the date of this
Agreement through the Closing;
2.7.4 Company
has not sold or otherwise issued any shares of Membership Interest
or any other securities, and will not do any of the foregoing from
the date of this Agreement through the Closing;
2.7.5 Company
has not amended its organizational documents, failed to maintain
its corporate existence or powers or failed to maintain its
qualification as a foreign corporation in each jurisdiction where
it is so qualified and has not effected or been a party to any
Acquisition Transaction, recapitalization, reclassification of
shares, stock split, reverse stock split or similar transaction,
and will not do any of the foregoing from the date of this
Agreement through the Closing;
2.7.6 Company
has not purchased or otherwise acquired any asset from any other
Person, except for assets acquired by Company in the Ordinary
Course of Business, and will not do any of the foregoing from the
date of this Agreement through the Closing;
2.7.7 Company
has not leased or licensed any asset from any other Person except
for assets leased or licensed in the Ordinary Course of Business,
and will not do any of the foregoing from the date of this
Agreement through the Closing;
2.7.8 Company
has not made any individual capital expenditure, measured by
invoice amount, in excess of $50,000.00, and will not do any of the
foregoing from the date of this Agreement through the
Closing;
2.7.9 Company
has not sold or otherwise transferred, and has not leased or
licensed, any asset to any other Person except for products sold by
Company from its inventory or assets leased or licensed in the
Ordinary Course of Business, and will not do any of the foregoing
from the date of this Agreement through the Closing;
2.7.10
Company has not written off as uncollectible, or established any
extraordinary reserve with respect to, any account receivable or
other indebtedness, and will not do any of the foregoing from the
date of this Agreement through the Closing;
2.7.11
Company has not pledged or hypothecated any of its assets or
otherwise permitted any of its assets to become subject to any
Encumbrance, and will not do any of the foregoing from the date of
this Agreement through the Closing;
2.7.12
Company has not made any loan or advance to any other Person or
assumed or guaranteed any Liability of any other Person, and will
not do any of the foregoing from the date of this Agreement through
the Closing;
2.7.13
Company has not (a) established or adopted any Employee
Benefit Plan, or (b) paid any bonus or made any profit sharing
or similar payment to, or materially increased the amount of the
wages, salary, commissions, fringe benefits or other compensation
or remuneration payable to, any of its directors, officers or
employees, and will not do any of the foregoing from the date of
this Agreement through the Closing;
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2.7.14
Company has not entered into, and neither Company nor any of the
assets owned or used by Company has become bound by, any Contract,
other than Contracts entered in the Ordinary Course of Business;
and no Contract under which Company has or had any rights or
interest, has been amended or terminated, and will not do any of
the foregoing from the date of this Agreement through the
Closing;
2.7.15
Company has not incurred, assumed or otherwise become subject to
any Liability, other than Liabilities incurred by Company in the
Ordinary Course of Business, and will not do any of the foregoing
from the date of this Agreement through the Closing;
2.7.16
Company has not discharged any Encumbrance or discharged or paid
any indebtedness or other Liability, except any that (a) have
been incurred by Company since the date of Unaudited Interim
Balance Sheet in the Ordinary Course of Business, and (b) have
been discharged or paid in the Ordinary Course of Business, and
will not do any of the foregoing from the date of this Agreement
through the Closing;
2.7.17
Company has not forgiven any debt or otherwise released or waived
any right or claim, and will not do any of the foregoing from the
date of this Agreement through the Closing;
2.7.18
Company has not changed any of its methods of accounting or
accounting practices in any respect, and will not do any of the
foregoing from the date of this Agreement through the
Closing;
2.7.19
Company has not entered into any transaction or taken any other
action outside the Ordinary Course of Business, and will not do any
of the foregoing from the date of this Agreement through the
Closing;
2.7.20
Company has not made any payment, direct or indirect, of any
Liability before the same shall have become due in accordance with
its terms, and will not do any of the foregoing from the date of
this Agreement through the Closing;
2.7.21
Company has not entered into any agreements regarding any merger or
consolidation of or by Company with any other corporation or any
acquisition of all or any part of the stock, equity interest or the
business or assets of any other person, firm, association,
corporation or business organization, and will not do any of the
foregoing from the date of this Agreement through the
Closing;
2.7.22
Company has not entered into any agreement regarding the purchase
or lease of any property from any officer, director, employee or
shareholder of Company, or any member of his or her family or any
affiliate or associate of any such Person, and will not do any of
the foregoing from the date of this Agreement through the
Closing;
2.7.23 To the
Knowledge of Seller and each Shareholder, Company has not failed to
perform any of its obligations in any material respect or suffered
or permitted any default to exist under any Contract to which the
Company is a party or by which it or any of its property may be
bound or affected, and will not do any of the foregoing from the
date of this Agreement through the Closing;
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2.7.24
Company has not received any notice of termination, breach or
default with respect to any Contract to which the Company is a
party or by which it or any of its property may be bound or
affected. Should Company receive any such notice between the date
of this Agreement and the Closing, Shareholders shall immediately
forward such notice to Buyer;
2.7.25 There
have been no incidents involving any labor union organizing
activity, labor dispute, trouble, strike or threatened strike,
stoppage or other occurrence, event or condition of any similar
character, or material change in relations with its employees,
agents, customers or suppliers, and will not do any of the
foregoing from the date of this Agreement through the
Closing;
2.7.26
Company has not transferred or granted any rights in or entered
into any settlement regarding the Proprietary Assets, and will not
do any of the foregoing from the date of this Agreement through the
Closing;
2.7.27
Company has not terminated or closed any business operation of
Company, and will not do any of the foregoing from the date of this
Agreement through the Closing;
2.7.28
Company has used, and shall continue to use,its reasonable
commercial business efforts to preserve its business organization
intact, to keep available the services of its employees and to
preserve its relationships with its customers, suppliers and others
with whom it deals;
2.7.29
Company has not lost the services of any employee and has not
sustained a termination of its relationship with any customer,
supplier or other person with whom it deals and whose relationship
is material to Company, and no such termination is anticipated.
Should any such termination occur between the date of this
Agreement and the Closing, Shareholders shall immediately inform
Buyer of such termination;
2.7.30
Company has not instituted, settled or agreed to settle any
Proceeding before any Governmental Body relating to Company or any
of its property, and will not do any of the foregoing from the date
of this Agreement through the Closing;
2.7.31
Company has not failed to replenish its Inventories in a normal and
customary manner consistent with prior practice, or entered into
purchase commitments in excess of the normal, ordinary and usual
requirements of the business or at any price in excess of the then
current market price, or changed its selling, pricing, advertising
or personnel practices inconsistent with prior practice, and will
not do any of the foregoing from the date of this Agreement through
the Closing; and
2.7.32
Company has not agreed or committed (in writing or otherwise), to
take any of the actions referred to in Sections 2.7.3
through 2.7.31, and will not agree or commit to take any such
action between the date of this Agreement through Closing
.
2.8 Real
Estate .
2.8.1 Other
than the Oil and Gas Assets, the Company has no interest in any
real estate.
2.8.2 There
are no current property management, service, equipment, supply,
security, maintenance, construction or concession agreements with
respect to or affecting the Company, except as disclosed on
Schedule 2.8 .
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2.9 Title
to Assets . Except as set forth in Schedule 2.9 or
as noted in the Unaudited Interim Balance Sheet, Company owns, free
and clear of Encumbrances:
2.9.1 all
assets reflected on the Unaudited Interim Balance Sheet (except for
inventory sold by Company since the date of Unaudited Interim
Balance Sheet, in the Ordinary Course of Business);
2.9.2 all
assets acquired by Company since the date of Unaudited Interim
Balance Sheet (except for inventory sold by Company since the date
of Unaudited Interim Balance Sheet, in the Ordinary Course of
Business);
2.9.3 all
assets referred to in Schedules 2.10, 2.11 and 2.16 and all
of Company’s rights under Contracts; and
2.9.4 all
other assets reflected in Company’s current books and records
as being owned by Company.
2.10
Receivables; Major Customers .
2.10.1
Schedule 2.10 provides a materially accurate and
complete breakdown and aging of all accounts and notes receivable
and a list of all other receivables of Company as of the date of
Unaudited Interim Balance Sheet.
2.10.2 Except
as otherwise set forth in Schedule 2.10 , all existing
accounts receivable of Company (including those accounts receivable
reflected on the Unaudited Interim Balance Sheet that have not yet
been collected and those accounts receivable that have arisen since
the date of Unaudited Interim Balance Sheet and have not yet been
collected): (a) represent valid obligations of customers of
Company arising from bona fide transactions entered into in the
Ordinary Course of Business; and (b) are current and where
known collection problems exist, such problems have been disclosed.
No account debtor has any valid set-off, deduction or defense with
respect thereto and no account debtor has asserted any such
set-off, deduction or defense.
2.10.3 Except
as otherwise disclosed in Schedule 2.10 , neither
Company nor Seller has any notice of or reason to believe that any
customer of the Company will cease to be a customer of Company
after the Closing.
2.11
Equipment .
2.11.1
Schedule 2.11 consists of a Company capital equipment
and depreciation schedule, which describes historical cost and
depreciation information with respect to all of Company’s
capital equipment, furniture, fixtures, improvements and other
tangible personal property. Schedule 2.11 also
accurately identifies all material tangible personal property
leased to Company.
2.11.2 Each
material asset of Company: (a) is, to the Knowledge of Seller
and each Shareholder, free of defects and deficiencies and in
reasonably good condition and repair, consistent with its age and
intended use (ordinary wear and tear excepted); (b) to the
Knowledge of Seller and each Shareholder, complies in all material
respects and is being operated and otherwise used in compliance
with applicable Legal Requirements; (c) in the reasonable
business judgment of the Company and to the Knowledge of Seller and
each Shareholder, is adequate for the uses to which it is being
put; (d) in the reasonable business judgment of the Company
and to the Knowledge of Seller and each Shareholder, is adequate
for the conduct of Company’s business in the manner in which
such business is currently being conducted; (e) in the
reasonable business judgment of the Company and to the Knowledge of
Seller and each Shareholder, has been adequately maintained in
accordance with reasonable maintenance schedules; and (f) is
owned by Company free and clear of any Encumbrance.
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2.12
Products and Inventories .
2.12.1 To the
best of the Knowledge of Seller and each Shareholder, all products
held or intended for sale (“ Inventories ”) of
Company reflected in the Unaudited Interim Balance Sheet are
merchantable, and comply with all Legal Requirements. All
Inventories at the Closing will be owned by Company free and clear
of any Encumbrance.
2.12.2 The
values net of reserves at which the Inventories are carried on the
Unaudited Interim Balance Sheet reflect the normal and consistent
inventory valuation method of Company of valuing inventory all in
accordance with GAAP.
2.12.3 Except
as specifically disclosed in Schedule 2.12 , the
products previously sold or delivered by Company or to be sold or
delivered between the date hereof and the Closing will be
merchantable and comply with or will comply with all applicable
Legal Requirements.
2.12.4 The
handling and storage practices, composition and labeling for each
of Company’s products are in compliance with, and Company may
store, distribute and sell each of its products on and after the
Closing Date without violating any Legal Requirements.
2.13
Sufficiency of the Assets . As of the Closing Date, the
properties and assets owned or leased by Company will constitute
all the properties and assets currently used, and since the date of
Unaudited Interim Balance Sheet have been used, by Company in its
business, except for dispositions made in the Ordinary Course of
Business, and in the reasonable business judgment of the Company
are sufficient for the operation of its business on a basis
consistent with past practices.
2.14 Tax
Matters .
2.14.1 Except
as set forth in Schedule 2.14 , each Tax required to
have been paid, or claimed by any Governmental Body to be payable,
by Company (whether pursuant to any Tax Return or otherwise) has
been duly paid in full on a timely basis. Any Tax required to have
been withheld or collected by Company has been duly withheld and
collected, and (to the extent required) each such Tax has been paid
to the appropriate Governmental Body.
2.14.2
Schedule 2.14 accurately identifies all presently
unfiled Tax Returns required to be filed by or on behalf of Company
with any Governmental Body with respect to any taxable period
ending on or before the Closing Date (“ Company
Returns ”). All Company Returns (including monthly
payroll returns) (a) have been or will be filed when due, and
(b) have been, or will be when filed, accurately and
completely prepared in compliance with all applicable Legal
Requirements. All amounts shown on Company Returns to be due on or
before the Closing Date, and all amounts otherwise payable in
connection with Company Returns on or before the Closing Date, have
been or will be paid on or before the Closing Date. Company has
delivered or, as requested by Buyer prior to Closing, shall deliver
or make available for inspection to the Buyer accurate and complete
copies of Company Returns (other than monthly payroll returns)
filed by Company.
2.14.3 Except
as otherwise disclosed in Schedule 2.14 ,
Company’s liability for unpaid Taxes for all periods ending
on or before the date of the Unaudited Interim Balance Sheet does
not, in the aggregate, exceed the amount of the current estimated
offsetting credits and liability accruals for Taxes (excluding
reserves for deferred taxes) reported in the Unaudited Interim
Balance Sheet.
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2.14.4
Schedule 2.14 accurately identifies each examination or
audit of any Company Return that has been conducted by any
Governmental Body. Company has delivered to the Buyer accurate and
complete copies of all audit reports and similar documents (to
which Company has access) relating to Company Returns. Except as
set forth in Schedule 2.14 , no extension or waiver of
the limitation period applicable to any of Company Returns has been
granted (by Company or any other Person), and no such extension or
waiver has been requested from Company.
2.14.5 Except
as set forth in Schedule 2.14 , no claim or other
Proceeding is pending or, to the Knowledge of the Company and
Seller, has been threatened against or with respect, to Company or
Seller in respect of any Tax. There are no unsatisfied Liabilities
for Taxes (including Liabilities for interest, additions to Tax and
penalties thereon and related expenses) with respect to any notice
of deficiency or similar document received by Seller or Company.
Company has not been, and will not be, required to include any
adjustment in taxable income for any Tax period (or portion
thereof) pursuant to Section 481 or 263A of the Code or any
comparable provision under state or foreign Tax laws as a result of
transactions or events occurring, or accounting methods employed,
prior to the Closing.
2.14.6 There
is no agreement, plan, arrangement or other Contract covering any
employee or independent contractor or former employee or
independent contractor of Company that, individually or
collectively, could give rise directly or indirectly to the payment
of any amount that would not be deductible pursuant to
Section 280G or Section 162 of the Code.
2.14.7
Company is not, and has never been, a party to or bound by any Tax
indemnity agreement, Tax sharing agreement, Tax allocation
agreement or similar Contract.
2.14.8
Company is not a United States real property holding corporation
within the meaning of Section 897(c)(2) of the Code and has
not been a United States real property holding corporation within
the applicable period specified in Section 897(c)(1)(A)(ii) of
the Code.
2.14.9 Except
as set forth in Schedule 2.14 , Company has no net
operating losses or other Tax attributes presently subject to
limitation under Code Sections 382, 383 or 384 or the federal
consolidated return regulations.
2.14.10 All
Taxes required to be withheld from employees up to and through the
Closing Date will have been withheld and timely deposited prior to
the Closing.
2.14.11 To
the Knowledge of Seller and each Shareholder, the requirements of
Section 274 of the Code (disallowance of certain entertainment
and similar expenses) have been complied with in all material
respects.
2.14.12 To
the Knowledge of Seller and each Shareholder, no non-deductible
expenses have been deducted on the federal income Tax Return for
any year open to audit by the Internal Revenue Service.
2.14.13
Except as set forth in Schedule 2.14 , no Internal
Revenue Service or state, county or local Tax audit is currently in
progress.
2.14.14
Company has disclosed on its federal income Tax Returns all
positions taken therein that could give rise to a substantial
understatement penalty within the meaning of Code Section 6662.
Company has not participated in a “listed transaction”
within the meaning of Treasury Regulations
Section 1.6011-4(b)(2) (determining without regard to whether
such transaction is a “reportable transaction” under
such regulation).
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2.14.15 Since
its conversion to a limited liability company, Company has not made
any election to be treated, for federal or state Tax purposes, as
other than a partnership.
2.14.16 The
Company continues to maintain its interest in the Oil and Gas
Assets, which were acquired during the pre-conversion period when
the Company was formerly known as GO, Inc., an Oklahoma
corporation. Company represents and warrants that GO, Inc. paid any
and all applicable Oklahoma Sales Tax when GO, Inc. originally
acquired its interest in and to the Oil and Gas Assets, including
any and all tangible personal property associated therewith. To the
knowledge of Seller and Company, the continued ownership of the Oil
and Gas Assets, including any and all tangible personal property
associated therewith, by the Company as a result of its conversion
from GO, Inc. to GO, LLC is not an event subject to Oklahoma Sales
Tax.
2.15
Contracts .
2.15.1
Schedule 2.15 identifies each Contract of the Company.
Except as identified in Schedule 2.15 , all Contracts
are in writing. Company has delivered to the Buyer accurate and
complete copies of all written Contracts identified in
Schedule 2.15 , including all amendments thereto.
2.15.2 To the
Knowledge of Seller and each Shareholder, each Contract is valid
and in full force and effect, and is enforceable by Company in
accordance with its terms.
2.15.3 To the
Knowledge of Seller and each Shareholder, except as set forth in
Schedule 2.15 : (a) no Person acting for Company has
violated or breached, or declared or committed any default under,
any Contract; (b) no event has occurred, and no circumstance
or condition exists, that likely would (with or without notice or
lapse of time) (i) result in a violation or breach of any of
the provisions of any Contract, (ii) give any Person the right
to declare a default or exercise any remedy or hinder any Contract,
(iii) give any Person the right to accelerate the maturity or
performance of any Contract, or (iv) give any Person the right
to cancel, terminate or modify any Contract; and (c) Company
has not waived any of its rights under any Contract.
2.15.4 To the
Knowledge of Seller and each Shareholder, no Person against which
Company has or may acquire any rights under any Contract is
insolvent or unable to materially satisfy all of such
Person’s current and future monetary obligations and other
obligations and Liabilities to Company under any such
Contract.
2.15.5 Except
as otherwise set forth in Schedule 2.15 :
(a) Company has not guaranteed or otherwise agreed to insure
or become liable for, and has not pledged any of its assets to
secure, the performance or payment of any present obligation or
other Liability of any other Person except in the Ordinary Course
of Business; and (b) Company is not a party to or bound by
(i) any joint venture agreement, partnership agreement, profit
sharing agreement, royalty agreement, cost sharing agreement, loss
sharing agreement or similar Contract, or (ii) any Contract
that creates or grants to any Person, or provides for the creation
or grant of, any stock appreciation right, phantom stock right or
similar right or interest.
2.15.6 To the
Knowledge of Seller and each Shareholder, the performance of the
Contracts will not result in any violation of or failure to comply
with any Legal Requirement.
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2.15.7 Except
as identified in Schedule 2.15 , no Person is
renegotiating, or has the contractual right to renegotiate, any
amount paid or payable to Company under any Contract or any other
term or provision of any Contract.
2.15.8 The
Contracts identified in Schedule 2.15 collectively
constitute all of the Contracts necessary in the reasonable
business judgment of the Company to enable Company to conduct its
business in the general manner in which its business is currently
being conducted.
2.15.9 Except
as set forth in Schedule 2.15 : (a) to the
Knowledge of Seller and each Shareholder, the Contracts of Company,
including but not limited to those described in Schedule
2.15 , are legally valid, binding and enforceable agreements of
Company, except as enforceability may be limited by bankruptcy and
other similar laws affecting creditors rights, and, to the
Knowledge of Seller and each Shareholder, the other parties
thereto; Company is not and, to the Knowledge of Seller and each
Shareholder, no other party to any such Contract is in violation of
or in default under such Contracts and no event or circumstances
have occurred which constitute, or after notice or lapse of time or
both would constitute, a violation or default thereunder on the
part of Company or, to the Knowledge of Seller and each
Shareholder, any other party thereto or result in a right to
accelerate or loss of rights; and such Contracts will continue to
be binding in accordance with their terms after the Closing,
assuming any required consents listed in Schedule 2.15
are obtained; (b) to the Knowledge of Seller and each
Shareholder, Company has fulfilled all material obligations
required pursuant to each Contract to have been performed by it,
and Company and the Seller have no reason to believe that Company
will not be able to fulfill all of its obligations under the
Contracts which remain to be performed after the date hereof, and
(c) none of the payments required to be made under any
Contract has been prepaid by more than 30 days prior to the due
date of such payment thereunder and the estimated cost to complete
any Contract of Company, plus expenses incurred by them on that
Contract, is not presently anticipated to exceed the total Contract
price.
2.16
Proprietary Assets .
2.16.1
Attached as Schedule 2.16 is (a) a description of
all Proprietary Assets owned by, licensed to or used in the
business of Company together with a designation of ownership, and
(b) a listing of all Company agreements or arrangements which
affect the ownership or use of any Proprietary Asset. Except as
otherwise set forth in Schedule 2.16 , Company is the
owner of all right, title and interest in and to each such
Proprietary Asset free and clear of all Encumbrances or, to the
Knowledge of Seller and each Shareholder, has the right to use,
free and clear of royalties or any claims or rights of others, such
Proprietary Assets.
2.16.2 In its
business judgment, Company has taken reasonable business measures
and precautions necessary to protect the confidentiality and/or
value of each Company-owned Proprietary Asset identified or
required to be identified in Schedule 2.16 .
2.16.3
Company has not at any time received any notice or other
communication (in writing or otherwise) of any actual, alleged,
possible or potential infringement of any Proprietary Asset owned
or used by any other Person. To the best Knowledge of Seller and
each Shareholder, no other Person is infringing, and no Proprietary
Asset owned or used by any other Person infringes, any Proprietary
Asset owned by Company.
2.17
Proceedings; Orders .
2.17.1 Except
as set forth in Schedule 2.17 , there is no pending
Proceeding, and, to the Knowledge of Seller and each Shareholder,
no Person has threatened to commence any Proceeding: (a) that
involves Company or that otherwise relates to or likely would
affect Company’s business or any of the assets owned or used
by Company (whether or not Company is named as a party thereto); or
(b) that challenges, or that may have the effect of preventing,
delaying, making illegal or otherwise interfering with, any of the
transactions contemplated hereby.
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2.17.2 Except
as set forth in Schedule 2.17 , to the Knowledge of
Seller and each Shareholder, no event has occurred, and no claim,
dispute or other condition or circumstance exists, that likely
would directly or indirectly give rise to or serve as a basis for
the commencement of any such Proceeding.
2.17.3 Except
as set forth in Schedule 2.17 , within the last five
(5) years: (a) no Proceeding has been commenced by or
against Company, and (b) no Proceeding otherwise involving or
relating to Company has been pending or, to the Knowledge of Seller
and each Shareholder, threatened.
2.17.4 To the
extent requested by Buyer, Company has delivered or will deliver
prior to Closing to the Buyer materially accurate and complete
copies of all pleadings, correspondence and other written materials
to which Company has access that relate to the Proceedings
identified in Schedule 2.17 .
2.17.5 There
is no Order to which Company, or any of the assets owned or used by
Company, is subject, and Seller is not subject to any Order that
relates to Company’s business or to any of the assets owned
or used by Company.
2.17.6 No
officer or employee of Company is subject to any Order that
prohibits such officer or employee from engaging in or continuing
any conduct, activity or practice relating to Company’s
business.
2.17.7 There
is no current proposed Order that, if issued or otherwise put into
effect, (a) would have a materially adverse effect on
Company’s business, condition, assets, liabilities,
operations, financial performance, net income or prospects or on
the ability of Company or Seller to comply with or perform any
covenant or obligation under the Agreement, or (b) may have
the effect of preventing, delaying, making illegal or otherwise
interfering with any of the transactions contemplated hereby.
2.17.8 Except
as disclosed in Schedule 2.17 , each Proceeding listed
in Schedule 2.17 is fully covered by existing policies of
insurance.
2.17.9 Except
as disclosed in Schedule 2.17 , Company is not a party
to any Proceeding as a party plaintiff, nor is Company presently
contemplating the initiation of any such Proceeding.
2.18
Employee and Labor Matters .
2.18.1
Schedule 2.18 accurately sets forth, with respect to
each employee of Company (including any employee of Company who is
on a leave of absence or on layoff status): (a) the name of
such employee and the approximate date as of which such employee
was originally hired by Company; and (b) such employee’s
title and salary.
2.18.2 Except
as otherwise specifically described in Schedule 2.18 ,
there is no former employee of Company who is receiving or is
scheduled to receive (or whose spouse or other dependent is
receiving or is scheduled to receive) any benefits (whether from
Company or otherwise) relating to such former employee’s
employment with Company.
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2.18.3 Except
as otherwise set forth in Schedule 2.18 , Company is
not a party to or bound by, and has never been a party to or bound
by, any employment agreement or any union contract, collective
bargaining agreement or similar Contract.
2.18.4 Except
as otherwise set forth in Schedule 2.18 , the
employment of each of Company’s employees is terminable by
Company at will. Company has made available to the Buyer accurate
and complete copies of all employee manuals and handbooks,
disclosure materials, policy, statements and other materials
relating to the employment of the current and former employees of
Company.
2.18.5 To the
best of the Knowledge of Seller and each Shareholder: (a) no
employee of Company has expressed an intent to terminate his
employment with Company; (b) no employee of Company has
received an offer to join a business that likely would be
competitive with Company’s business; and (c) no employee
of Company is a party to or is bound by any confidentiality
agreement, noncompetition agreement or other Contract (with any
Person) that likely would have an adverse effect on (i) the
performance by such employee of any of his duties or
responsibilities as an employee of Company, or
(ii) Company’s business or operations.
2.18.6
Company is not engaged, and has never been engaged, in any unfair
labor practice of any nature. There has never been any slowdown,
work stoppage, labor dispute or union organizing activity, or any
similar activity or dispute, affecting Company or any of its
employees. There is not now pending, and to the Knowledge of Seller
and each Shareholder no Person has threatened to commence, any such
slowdown, work stoppage, labor dispute or union organizing activity
or any similar activity or dispute.
2.18.7 Except
as set forth in Schedule 2.18 , no present or former
employee of Company has any claim against Company (whether under a
Legal Requirement, any employee agreement or otherwise) on account
of or for (a) unaccrued overtime pay, other than overtime pay
for the current payroll period; (b) unaccrued wages or
salaries (excluding wages or salaries for the current payroll
period); (c) unaccrued vacations, time off or pay in lieu of
vacation or time off, other than vacation or time off (or pay in
lieu thereof) earned in respect of the current fiscal year, or
severance pay; (d) any violation of any Legal Requirement
relating to minimum wages or maximum hours of work; or
(e) breach of any fiduciary duty of Company or of any trustee
of any of Employee Benefit Plans.
2.18.8 Except
as set forth in Schedule 2.18 , no person or party
(including, but not limited to, Governmental Bodies) has made any
claim, and to the Knowledge of Seller and each Shareholder there is
no basis or grounds for any claim, against Company arising out of
any Legal Requirement relating to discrimination against employees
or any other employee practices, including retirement or labor
relations, equal employment opportunity or occupational, safety
and/or health standards.
2.19
Benefit Plans; ERISA .
2.19.1
Neither Company nor any ERISA Affiliate has ever established,
adopted, maintained, sponsored, contributed to, participated in any
Employee Benefit Plan or incurred any Liability with respect to any
Employee Benefit Plan. Neither Company nor any ERISA Affiliate has
ever provided or made available any fringe benefit, whether or not
the value of such benefit is includible in the recipient’s
gross income, as determined in accordance with Section 132 of
the Code or other applicable sections, or other similar material
benefit of any nature to any of its employees.
14
2.19.2
Company’s financial statement(s) reflect all of
Company’s employee benefit liabilities in a manner satisfying
the requirements set forth in FASB Statement Nos. 87, 106 and
112.
2.19.3
Company does not sponsor or participate in any plan or arrangement,
whether qualified or unqualified, providing for either shutdown
benefits or post-employment medical benefits.
2.20
Insurance .
2.20.1
Schedule 2.20 accurately sets forth, with respect to
each insurance policy maintained by or at the expense of, or for
the direct or indirect benefit of, Company: (a) the name of
the insurance carrier that issued such policy and the policy number
of such policy; (b) whether such policy is a “claims
made” or an “occurrences” policy; (c) a
description of the type of coverage provided by such policy and the
material terms of such policy (including all applicable coverage
limits, deductible amounts and co-insurance arrangements);
(d) the annual premium payable with respect to such policy;
and (e) a description of any claims pending, and any claims
that have been asserted in the past, with respect to such policy.
Schedule 2.20 also identifies (i) each pending
application for insurance that has been submitted by or on behalf
of Company, and (ii) each self-insurance or risk-sharing
arrangement affecting Company or any of its assets. Company has
made available for inspection by the Buyer accurate and complete
copies of all of the insurance policies identified in
Schedule 2.20 (including all renewals thereof and
endorsements thereto) and all of the pending applications
identified in Schedule 2.20 .
2.20.2 Each
of the policies identified in Schedule 2.20 is valid,
enforceable and in full force and effect, and has been issued by an
insurance carrier that, to the best of the Knowledge of Seller and
each Shareholder, is financially sound. All of the information
contained in the applications submitted in connection with said
policies was (at the times said applications were submitted)
materially accurate and complete, and all premiums and other
amounts owing with respect to said policies have been paid in full
on a timely basis.
2.20.3 Except
as set forth in Schedule 2.20 , there is no pending
claim under or based upon any of the policies identified in
Schedule 2.20 , and to the Knowledge of Seller and each
Shareholder no event has occurred, and no condition or circumstance
exists, that would likely (with or without notice or lapse of time)
directly or indirectly give rise to or serve as a basis for any
such claim.
2.20.4
Company has not received: (a) any notice or other
communication (in writing or otherwise) regarding the actual or
possible cancellation or invalidation of any of the policies
identified in Schedule 2.20 or regarding any actual or
possible material adjustment in the amount of the premiums payable
with respect to any of said policies; (b) any notice or other
communication (in writing or otherwise) regarding any actual or
possible refusal of coverage under, or any actual or possible
rejection of any claim under, any of the policies identified in
Schedule 2.20 ; or (c) any indication that the
issuer of any of the policies identified in
Schedule 2.20 may be unwilling or unable to perform any
of its obligations thereunder.
2.20.5 Except
as disclosed in Schedule 2.20 , there has been no
period during the past five (5) years which Company has not
maintained insurance coverage in amounts and against losses and
risks within its reasonable business judgement normal for
businesses similar to its business.
2.20.6
Company’s office and all Company facilities are insurable in
their present condition against fire and other casualty at standard
rates and neither Company nor Seller has been notified by any
insurance carrier or its agent that such facilities will require
improvements in order to maintain such insurance at standard
rates.
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2.21
Related Party Transactions . Except as set forth in
Schedule 2.21 and except for the transactions
contemplated by this Agreement, at Closing no Related Party has or
will have a claim against Company arising from a Related Party
Transaction.
2.22 Sale
of Products; Performance of Services . Except as set forth in
Schedule 2.22 , within the last five (5) years no
customer or other Person has ever asserted or threatened to assert
any material claim against Company (a) under or based upon any
product, service or warranty provided by or on behalf of Company;
or (b) under or based upon any other warranty relating to any
product sold by Company or any services performed by Company. To
the best of the Knowledge of Seller and each Shareholder, no event
has occurred, and no condition or circumstance exists, that likely
would (with or without notice or lapse of time) directly or
indirectly give rise to or serve as a basis for the assertion of
any such claim.
2.23 Bank
Accounts; Powers of Attorney .
2.23.1
Schedule 2.23 accurately sets forth, with respect to
each account maintained by or for the benefit of Company at any
bank or other financial institution: (a) the name and location
of the institution at which such account is maintained;
(b) the name in which such account is maintained and the
account number of such account; and (c) the names of all
individuals authorized to draw on or make withdrawals from such
account. Except as set forth in Schedule 2.23 , there are no
safe deposit boxes or similar arrangements maintained by or for the
benefit of Company.
2.23.2 Except
as set forth in Schedule 2.23 , Company has no general
or special powers of attorney outstanding (whether as grantor or
grantee thereof).
2.24
Compliance with Legal Requirements . Except as set forth in
Schedule 2.24 :
2.24.1
Company, to its and Seller’s Knowledge, is in compliance in
all material respects with each Legal Requirement that is
applicable to it or to the conduct of its business or the ownership
or use of any of its assets.
2.24.2 To
Company’s and Seller’s Knowledge, no event has
occurred, and no condition or circumstance exists, that likely
would (with or without notice or lapse of time) constitute or
result directly or indirectly in any violation by Company of, or a
failure on the part of Company to comply with, any Legal
Requirement.
2.24.3
Company has not received any notice or other communication (in
writing or otherwise) from any Governmental Body or any other
Person regarding (i) any actual, alleged, possible or
potential violation of, or failure to comply with, any Legal
Requirement; or (ii) any actual, alleged, possible or
potential obligation on the part of Company to undertake, or to
bear all or any portion of the cost of, any environmental cleanup
or any remedial, corrective or response action of any nature.
2.24.4 To
Company and Seller’s Knowledge, no Governmental Body has
proposed or is considering any Legal Requirement that, if adopted
or otherwise put into effect, would specifically affect Company and
either (i) may have an adverse effect on Company’s
business, condition, assets, liabilities, operations, financial
performance, results of operations or prospects or on the ability
of Company or the Seller to comply with or perform any covenant or
obligation under the Agreement; or (ii) may have the effect of
preventing, delaying, making illegal or otherwise interfering with
any of the transactions contemplated hereby.
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2.24.5
Without limiting the foregoing, to the Knowledge of Seller and each
Shareholder, Company has obtained and now holds all licenses,
permits, certificates and authorizations needed or required for the
current conduct of its business and the use of its properties and
the premises occupied by it. To the Knowledge of Seller and each
Shareholder, Company has properly filed all reports and other
documents required to be filed with any Governmental Body. All
licenses, permits, orders and approvals issued by any governmental
body or agency currently in effect and pertaining to the property,
assets or business of Company or any Subsidiary are disclosed on
Schedule 2.24 and, except as otherwise noted therein,
none of the items so listed will lapse or expire prior to
December 31, 2007.
2.25 The
Oil and Gas Assets .
2.25.1
Company has at least Defensible Title to all of the Oil and Gas
Assets. The Oil and Gas Assets (i) constitute all of the
assets, tangible and intangible, of any nature whatsoever necessary
to operate the business of its pipeline system in the manner
presently operated by Seller and (ii) include all of the
operating assets of Seller used or held for use in connection with
the operation of its pipeline system and its business.
2.25.2 Except
as otherwise set forth in Schedule 2.25 to the Knowledge of
Seller and each Shareholder, all wells included in the Oil and Gas
Assets have been drilled and (if completed) completed, operated and
produced in accordance with generally accepted oil and gas field
practices and in compliance in all material respects with
applicable oil and gas leases and applicable laws, rules and
regulations (excluding Environmental Laws). To the Knowledge of
Seller and each Shareholder, Company has complied, to the extent
compliance is required or appropriate as of the Effective Time,
with all plugging and abandonment obligations associated with wells
owned or operated by Company, including plugging, abandonment,
surface restoration, site clearance and disposal related waste
materials, in compliance with all applicable contractual
obligations and applicable rules and regulations of Governmental
Bodies having jurisdiction.
2.25.3 Except
as set forth on Schedule 2.25 , the Oil and Gas Assets
are subject to no contracts for the sale of oil or gas attributable
to periods after the Effective Time, other than agreements that
(i) are terminable by Company, without penalty, upon not more
than thirty (30) days’ notice, or (ii) provide for
prices based upon market value on a current monthly basis or upon
spot market price or published in an index commonly recognized by
experienced sellers and purchasers of oil or gas production.
Company is not under any obligation under any production sales
contract, take-or-pay clause, or any similar arrangement, to
deliver oil or gas from the Assets without receiving payment
reasonably contemporaneous to the time of or subsequent to
delivery. Company has not entered into and is not subject to any
obligation to deliver gas or oil in the future for which payment
has already been received ( e.g., a “forward”
sale contract).
2.25.4
Schedule 2.25 lists all material real property leaseholds and
site easements related to the Oil and Gas Assets and owned, held or
used by Seller, together with the respective lease agreement,
easement or other document creating those interests (the
“Site Leases and Easements”). Schedule 2.25 also
lists all pipeline rights-of-way, easements, servitudes, and
permits and licenses of a similar nature, owned, held or used by
Seller and the respective easement or other document creating those
interests (the “Rights-of-Way Agreements”).
2.25.5 All
operating agreements, farm-out or farm-in agreements, settlement
agreements and production sales contracts covering the Oil and Gas
Assets are identified on Schedule 2.25 attached hereto.
2.25.6 To the
Knowledge of Seller and each Shareholder, all material royalties,
rentals, and other payments due under the agreements covering the
Oil and Gas Assets have been properly and timely paid and all
conditions necessary to keep the agreements in full force have been
fully performed. No notices have been received by Company of any
claims to the contrary and to the Knowledge of Seller and each
Shareholder, all of the agreements covering the Oil and Gas Assets
are in full force and effect.
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2.25.7 All ad
valorem, sales, property, production, severance or similar taxes
based on or measured by the ownership of the Oil and Gas Assets or
the production of hydrocarbons or the receipt of proceeds have been
properly paid and all such taxes and assessments which become due
and payable prior to the Effective Time shall be properly paid by
the Company.
2.25.8 To the
knowledge of the Company and Seller, all material valid laws,
regulations, and orders of all governmental agencies having
jurisdiction over the Oil and Gas Assets have been and shall
continue to be complied with until Closing.
2.25.9 As of
the Effective Time there are no production or pipeline imbalances
with oil, gas or hydrocarbon purchasers or pipelines.
2.26
Environmental Matters .
2.26.1 Except
as disclosed in Schedule 2.26 , to the Knowledge of
Seller and each Shareholder, Company is in compliance in all
material respects with all applicable Environmental Laws. Except as
disclosed in Schedule 2.26 , Company has not received
any notice or other communication (in writing or otherwise) that
alleges that Company is not in compliance with any Environmental
Law, and there are no circumstances that likely would prevent or
interfere with Company’s compliance with any Environmental
Law in the future.
2.26.2 Except
as disclosed in Schedule 2.26 , Company (i) has
not disposed of, and has not received any notice from any person or
Entity alleging that Company has disposed of, any Hazardous
Material on any properties currently or previously owned by, leased
by or leased to or operated by Company and Company is unaware of
any Hazardous Material having ever been disposed of on such
properties or sites; and (ii) to the Knowledge of Seller and
each Shareholder, has not disposed of any Hazardous Material on
third party sites (or incurred any potential liability) for the
generation, treatment, storage or disposal, lawful or otherwise, of
Hazardous Material.
2.26.3 Except
as disclosed in Schedule 2.26 , to the Knowledge of
Seller and each Shareholder, there is not constructed, deposited,
stored, disposed, placed or located on any of real property
currently or previously owned by, leased by or leased to or
operated by Company or in any of Company’s fixed assets, any
(a) asbestos in any form which is friable; (b) urea
formaldehyde foam insulation; (c) transformers or other
equipment which contain dielectric fluid containing levels of
polychlorinated biphenyls in excess of fifty (50) parts per
million; (d) active or out-of-service above ground or
underground storage tanks or sites from which such storage tanks
have been removed; or (e) any Hazardous Material or any other
chemical, material, substance or other matter of any kind
whatsoever (other than customary office and cleaning supplies)
exposure to which is prohibited, limited or regulated by any
Environmental Law.
2.26.4 Except
as disclosed in Schedule 2.26 , neither Company nor
Seller is aware of any Environmental Law due to be imposed on the
business or assets of Company which will increase the cost of
complying with the Environmental Laws.
2.26.5
Schedule 2.26 sets forth a correct and complete list of
all of Governmental Authorizations issued by Governmental Bodies
pursuant to any Environmental Law, copies of which have been
delivered to the Buyer. To the Knowledge of Seller and each
Shareholder, the Governmental Authorizations listed on
Schedule 2.26 constitute all of the Governmental
Authorizations that are necessary to conduct the business of
Company in compliance with Environmental Law, are in full force and
effect, and all fees payable in connection therewith prior to the
Effective Time have been paid. To the Knowledge of Seller and each
Shareholder, neither the execution and delivery of this Agreement
nor any of the transactions contemplated herein will cause any of
the Governmental Authorizations to be invalidated, violated or
otherwise adversely affected.
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2.26.6
Company has delivered to or made available for inspection by the
Buyer copies of all: (a) applications, reports or other
materials submitted to any Governmental Body by Company in
compliance with Environmental Law; (b) to the Knowledge of
Seller and each Shareholder, records or manifests required to be
maintained by Company pursuant to Environmental Law;
(c) notices of violation, summonses, orders, complaints or
other documents received by Company relating to compliance with or
liability under Environmental Law or the discharge, emission or
release of any Hazardous Material at, affecting or in any way
relating to the Real Properties; and (d) records of analyses
of any environmental tests pertaining to the Real Proper
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