MIDWAY HOME ENTERTAINMENT
INC.
100% OF THE ISSUED AND
OUTSTANDING SHARE CAPITAL
Dated as of August
5 , 2009
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Page
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2
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2
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ARTICLE II PURCHASE AND SALE
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5
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2.1 Purchase and Sale of Shares
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5
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5
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2.3 Payment of Purchase Price
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5
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ARTICLE III CLOSING AND TERMINATION
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5
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5
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5
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3.3 Deliveries by Purchaser
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6
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3.4 Termination of Agreement
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7
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3.5 Procedure Upon Termination
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7
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3.6 Effect of Termination
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8
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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF
SELLER
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8
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8
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8
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9
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9
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ARTICLE V REPRESENTATIONS AND WARRANTIES OF
PURCHASER
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9
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9
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9
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5.3 Conflicts; Consents of Third
Parties
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10
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10
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10
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10
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5.7 No Other Representations and
Warranties
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11
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ARTICLE Va NO OTHER REPRESENTATIONS AND
WARRANTIES
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11
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ARTICLE VI BANKRUPTCY COURT MATTERS
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11
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6.1 Bankruptcy Court Filings
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11
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12
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7.1 Conduct Pending Closing
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12
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7.2 Payment of Intercompany
Obligations
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12
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12
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7.4 Preservation of Records
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12
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13
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13
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-i-
TABLE OF
CONTENTS
(continued)
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Page
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7.7 Purchaser Covenants After Closing
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13
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13
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ARTICLE VIII CONDITIONS TO CLOSING
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14
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8.1 Conditions Precedent to Obligations of
Purchaser
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14
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8.2 Conditions Precedent to Obligations of
Seller
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15
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8.3 Conditions Precedent to Obligations of
Purchaser and Seller
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15
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8.4 Frustration of Closing Conditions
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15
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16
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9.1 No Survival of Representations and
Warranties
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16
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9.2 No Consequential Damages
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16
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ARTICLE X INDEMNIFICATION
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16
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10.1 Indemnification by Purchaser
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16
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10.2 Indemnification Procedures
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16
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ARTICLE XII MISCELLANEOUS
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17
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17
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12.2 Damages and Injunctive Relief
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17
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12.3 Submission to Jurisdiction; Consent to
Service of Process
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18
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12.4 Waiver of Right to Trial by Jury
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18
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12.5 Entire Agreement; Amendments and
Waivers
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18
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18
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19
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19
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12.9 Binding Effect; Assignment
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20
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20
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20
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12.12 Time of the Essence; Calculation of Time
Period
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20
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21
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21
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21
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12.16 Certain Terminology
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21
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21
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-ii-
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A
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Non-Affiliates
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3.1
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Form of Closing
Confirmation
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4.3
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Capitalization
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4.4
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Financial
Advisors-Seller
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7.2
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Agreement Resolving Intercompany
Obligations
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7.10
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Specification of Certain Desired
Books and Records
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-iii-
STOCK PURCHASE AGREEMENT , dated as of August 5, 2009
(this “ Agreement ”), by and
between Midway Home Entertainment Inc., a Delaware corporation
(“ Seller ”) and F+F Publishing
GmbH, a German limited liability company registered under the
commercial registry of the Local Court ( Amtsgericht ) of
Munich under reg. no. HRB 154344 (“
Purchaser ”). Capitalized terms used
herein are defined in Section 1.1 .
A. Seller
owns 100% of the issued and outstanding shares of Midway Games
GmbH, a limited liability company registered under the commercial
registry of the Local Court of Munich under reg. no. HRB 155321
(the “ Company ”);
B. On
February 12, 2009 (“ Petition Date
”), Seller, its parent Midway Games Inc. (“
Parent ”) and Parent’s other U.S.
Subsidiaries (collectively, the “
Debtors ”) concurrently commenced
chapter 11 cases as debtors-in-possession under Title 11 of the
United States Code, 11 U.S.C. §101 et seq. (the “
Bankruptcy Code ”), by filing their
voluntary petitions for relief under chapter 11 of the Bankruptcy
Code, before the United States Bankruptcy Court for the District of
Delaware (“ Bankruptcy Court ”).
Thereafter, the Bankruptcy Court entered its order that such cases
be administered jointly in the presently pending chapter 11 case
no. 10565-KG (“ Bankruptcy Case
”);
C. Pursuant
to Sections 1107(a) and 1108 of the Bankruptcy Code, the Debtors
continue to operate their business and manage their properties, and
administer their estate created by Section 541 of the Bankruptcy
Code on the Petition Date as debtors-in-possession (collectively,
or individually as the context may require, the “
Estate ”);
D. Seller
desires to sell to Purchaser, and Purchaser desires to purchase
from Sellers, pursuant to Sections 105 and 363 of the
Bankruptcy Code, all of the outstanding capital stock of the
Company.
E. Following
consultation with its financial advisors and reasonable due
diligence, the board of directors of Seller has determined that
subject to (i) sufficient notice of the proposed transaction
and (ii) approval of the transactions contemplated by this
Agreement by the Bankruptcy Court under Sections 105 and 363
of the Bankruptcy Code, it is, in light of the current
circumstances, in the best interests of the Estate and the
beneficiaries of such Estate to consummate the transactions
contemplated by this Agreement, upon the terms and conditions set
forth herein;
F. The
management ( Geschäftsführung ) of Purchaser has
determined that it is advisable and in the best interests of
Purchaser to consummate, and has approved, the transactions
contemplated by this Agreement, upon the terms and conditions set
forth herein; and
G. On
or before the expiration of two (2) Business Days after the
date hereof, Seller will file the Sale Motion in the Bankruptcy
Case requesting, inter alia, authorization to (i) enter into
this Agreement and (ii) sell and transfer the Shares to
Purchaser.
NOW , THEREFORE , in consideration of the premises
and the mutual covenants and agreements hereinafter contained, the
parties hereby agree as follows:
1.1 Certain Definitions . For purposes of this
Agreement, the following terms shall have the meanings specified in
this Section 1.1 :
“
Affiliate ” means, with respect to any
Person, any other Person that, directly or indirectly through one
or more intermediaries, controls, or is controlled by, or is under
common control with, such Person, and the term
“control” (including the terms “controlled
by” and “under common control with”) means the
possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person,
whether through ownership of voting securities, by contract or
otherwise; provided, however , that no Person listed on
Exhibit A hereto shall be deemed, for purposes
of this Agreement, to be an Affiliate of Seller (or its
Affiliates).
“
Agreement ” has the meaning ascribed to
it in the Preamble.
“Attorneys Fees” means an amount
equal to 100% of the fees of SKW Schwarz Rechtsanwälte
incurred in connection with the negotiation and consummation of
this Agreement, the Sale Transfer Agreement and any accessory
documents as notified (on a best estimate basis) sufficiently prior
to the Closing Date.
“
Attorneys Account ” shall be the
following bank account: Owner: SKW Schwarz Rechtsanwälte,
bank: Reuschel & Co., Munich, account no.: 100 985 0, IBAN: DE
50 700 303000 100 985 000, SWIFT: REUC DE MM, reference: “
50% of Attorneys Fees Sale Midway Games GmbH
”
“
Bankruptcy Case ” has the meaning
ascribed to it in the Recitals.
“
Bankruptcy Code ” has the meaning
ascribed to it in the Recitals.
“
Bankruptcy Court ” has the meaning
ascribed to it in the Recitals.
“
Business Day ” means any day of the year
on which national banking institutions in New York are open to the
public for conducting business and are not required or authorized
to close.
“
Closing ” has the meaning ascribed to it
in Section 3.1 .
“
Closing Date ” has the meaning ascribed
to it in Section 3.1 .
“ Closing Confirmation ” has the
meaning ascribed to it in Section 3.1
.
“
Company ” has the meaning ascribed to it
in the Recitals.
-2-
“
Contract ” means any written contract,
indenture, note, bond, lease or other agreement.
“
Damages ” means any and all losses,
damages, claims, demands, causes of action, suits or judgments of
any nature, costs and expenses (including reasonable fees and
expenses of attorneys).
“
Debtors ” has the meaning ascribed to it
in the Recitals.
“
Defense ” has the meaning ascribed to it
in Section 10.2(b) .
“
Effective Date ” means August 5,
2009, the date of this Agreement.
“
Estate ” has the meaning ascribed to it
in the Recitals.
“
Governmental Body ” means any government
or governmental or regulatory body thereof, or political
subdivision thereof, whether foreign, federal, state, or local, or
any agency, instrumentality or authority thereof, or any court or
arbitrator (public or private).
“
Indemnification Matter ” has the meaning
ascribed to it in Section 10.2 .
“
Indemnification Notice ” has the meaning
ascribed to it in Section 10.2(a) .
“ Intercompany Agreement ” has the
meaning ascribed to it in Section 7.2
.
“
Law ” means any federal, state, local or
foreign law, statute, code, ordinance, rule or
regulation.
“
Legal Proceeding ” means any judicial,
administrative or arbitral actions, suits, proceedings (public or
private) or claims or any proceedings by or before a Governmental
Body.
“
Liabilities ” means any direct or
indirect indebtedness, liability or obligation, known or unknown,
fixed or inchoate, liquidated or unliquidated, secured or
unsecured, accrued, absolute, contingent or otherwise.
“ Notarization Fees ” means an
amount equal to 100% of the statutory fees and out-of-pocket
expenses for the notarization of this Agreement and any accessory
documents required or useful for the consummation of this
Agreement.
“
Order ” means any order, injunction,
judgment, decree, ruling, writ, assessment or arbitration award of
a Governmental Body.
“
Parent ” has the meaning ascribed to it
in the Recitals.
“
Parties ” means the Seller and the
Purchaser.
“
Person ” means any individual,
corporation, limited liability company, partnership, firm, joint
venture, association, joint-stock company, trust, unincorporated
organization, Governmental Body or other entity.
-3-
“
Petition Date ” has the meaning ascribed
to it in the Recitals.
“
Purchase Price ” has the meaning
ascribed to it in Section 2.23 .
“
Purchaser ” has the meaning ascribed to
it in the Preamble.
“ Purchaser Account ” shall be the
following bank account: Owner: F+F Publishing GmbH, bank:
Kreissparkasse München Starnberg, account no.: 10 58 10 49,
IBAN: DE 197025 0150 0010 5810 49, SWIFT Code: BYLA DE M1KMS,
reference: “ 50% of notarization fee
”
“
Purchaser Documents ” has the meaning
ascribed to it in Section 5.2 .
“ Sale Hearing ” means the hearing
before the Bankruptcy Court to consider Seller’s motion for
entry of the Sale Order.
“
Sale Motion ” means the motion
(including such amendments and supplements as are acceptable to
Purchaser and Seller) of Seller seeking approval from the
Bankruptcy Court for entry of the Sale Order.
“
Sale Order ” shall be an Order or Orders
of the Bankruptcy Court approving this Agreement and all of the
respective terms and conditions hereof, and approving and
authorizing Seller to consummate the transactions contemplated
hereby.
“
SEC ” means the U.S. Securities and
Exchange Commission.
“
Seller ” has the meaning ascribed to it
in the Preamble.
“
Seller Documents ” has the meaning
ascribed to it in Section 4.2 .
“
Seller Indemnified Parties ” has the
meaning ascribed to it in Section 10.1(a)
.
“
Share Transfer Agreement ” has the meaning
ascribed to it in Section 3.2.(a) .
“
Shares ” means all shares (
Geschäftsanteile ) in the Company as set forth on
Schedule 4.3 .
“
Tax Authority ” means any
federal, state, local or foreign government, or agency,
instrumentality or employee thereof, charged with the
administration of any Law or regulation relating to
Taxes.
“
Taxes ” means (a) all federal,
state, local or foreign taxes, charges or other assessments,
including, without limitation, all net income, gross receipts,
capital, sales, use, ad valorem, value added, transfer, franchise,
profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance,
stamp, occupation, property and estimated taxes, and (b) all
interest, penalties, fines, additions to tax or additional amounts
imposed by any Tax Authority in connection with any item described
in clause (a).
“
Termination Date ” has the meaning
ascribed to it in Section 3.4(a) .
-4-
2.1 Purchase and Sale of Shares . On the terms and
subject to the conditions set forth in this Agreement, Seller
hereby sells to Purchaser and Purchaser hereby purchases from
Seller, the Shares.
2.2 Transfer of Shares . Becoming effective on the
Closing Date, the Seller shall transfer and assign to Purchaser and
Purchaser shall accept such transfer and assignment of, the Shares
as set forth in Share Transfer Agreement, subject to the Closing
Confirmation as defined in Section 3.1 below
being executed by both Parties. The Parties acknowledge that the
Closing shall occur only in the event that a final Order of the
Bankruptcy Court is entered approving the sale of the
Shares.
2.3 Purchase Price . The purchase price for the
Shares (the “ Purchase Price ”)
shall be One Euro ( €
1) payable by check issued to Seller
or in cash.
(a) Subject
to the satisfaction of the conditions set forth in Sections
3.2 , 3.3 , 8.1 ,
8.2 and 8.3 , hereof (or the waiver
thereof by the party entitled to waive that condition), the closing
of the purchase and sale of the Shares provided for in
ARTICLE II hereof (the “
Closing ”) shall take place, and
Purchaser and Seller shall consummate the purchase and sale
transaction contemplated hereby, at the offices of Blank Rome LLP
located at 405 Lexington Avenue, New York, New York at
10:00 a.m. (Eastern time) on the date designated by Seller
that is not more than two (2) Business Days following the
satisfaction or waiver of the conditions set forth in ARTICLE
VIII (other than conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or waiver
of such conditions), unless another place or places, time or date,
or both, or manner are agreed to in writing by the parties hereto.
The date on which the Closing shall be held is referred to in this
Agreement as the “ Closing Date .”
The Parties mutually undertake to duly execute and issue at the
Closing two counterparts of a joint confirmation stating the
Closing Date and stating that all deliveries by Seller and by
Purchaser under Section 3 of this Agreement have been made or
waived and that the Closing of the transactions contemplated in
this Agreement has been effected (“ Closing
Confirmation ”), essentially in the form as
attached on Exhibit 3.1 hereto.
(b) On
the Closing Date, a transfer deed under German law transferring the
Shares from Seller to Purchaser (“ Share Transfer
Agreement ”) shall be duly executed and notarized in
Germany by a German notary public ( Notar ).
3.2 Deliveries by Seller . At the Closing, Seller
shall deliver to Purchaser:
(a) a
copy of the duly executed and notarized Share Transfer
Agreement;
-5-
(b) the
officer’s certificates required to be delivered pursuant to
Sections 8.1(a) and 8.1(b)
;
(c) a
copy of the fully executed Intercompany Agreement and any ancillary
documents thereto;
(d) payment
by Seller to SKW Schwarz Rechtsanwälte onto the Attorneys
Account of an amount equal to 50% of the Attorneys Fees;
(e) payment
by Seller to Purchaser onto the Purchaser Account of an amount
equal to 50% of the Notarization Fees;
(f) a
duly executed copy of the Sale Order;
(g) the
minutes duly signed by the Seller, of a general shareholders
meeting of the Company including the following resolutions with
effect of the Closing Date: (i) revocation of the appointment
of Mr. Miguel Iribarren as managing director (
Geschäftsführer ) of the Company, (ii) revocation
of the appointment of Mr. Uwe Fürstenberg as holder of
general powers of representation ( Prokurist ) of the
Company, and (iii) appointment of Mr. Uwe
Fürstenberg as managing director (
Geschäftsführer ) with sole signature power and
released from the restrictions of section 181 of the German Civil
Code (prohibition of double representation and
self-contracting);
(h) three
duly executed original copies of the 12/31/2008 annual accounts for
the Company;
(i) a
letter by Mark Thomas and his relevant Affiliates confirming the
release of the pledge of the Shares and the discharge of the
Company and the Purchaser from all obligations and liability
related thereto;
(j) a
duly executed copy of the termination of the Abstract
Acknowledgement of Debt (Parallel Debt) Agreement as set forth
under the Intercompany Agreement; and
(k) such
other documents, instruments and certificates as Purchaser may
reasonably request.
3.3 Deliveries by Purchaser . At the Closing,
Purchaser shall deliver to Seller:
(b) the
officer’s certificate required to be delivered pursuant to
Sections 8.2(a) and 8.2(b)
;
(c) executed
copies of the acceptance and assumption by Purchaser of the MGG/MGL
Balance and the MGG/MHE Balance (both as defined in the
Intercompany Agreement) and payment for the same, all as specified
in the Intercompany Agreement; and
-6-
(d) such
other documents, instruments and certificates as Seller may
reasonably request.
3.4 Termination of Agreement . This Agreement may be
terminated prior to the Closing as follows:
(a) by
Purchaser or Seller in writing, if the Closing shall not have
occurred by the close of business on August 31, 2009 (the
“ Termination Date ”);
provided , however , that, if the Closing shall not
have occurred due to the failure of the Bankruptcy Court to enter
the Sale Order and if all other conditions to the respective
obligations of the parties to close hereunder that are capable of
being fulfilled by the Termination Date shall have been so
fulfilled or waived, then no party may terminate this Agreement
prior to September 30, 2009; provided, further , that
if the Closing shall not have occurred on or before the Termination
Date due to a material breach of any representations, warranties,
covenants or agreements contained in this Agreement by Purchaser or
Seller, then the breaching party may not terminate this Agreement
pursuant to this Section 3.4(a) ;
(b) by
mutual written consent of Seller and Purchaser;
(c) by
Purchaser, if any of the conditions to the obligations of Purchaser
set forth in Sections 8.1 and 8.3
shall have become incapable of fulfillment other than as a result
of a breach by Purchaser of any covenant or agreement contained in
this Agreement, and such condition is not waived by
Purchaser;
(d) by
Seller, if any condition to the obligations of Seller set forth in
Sections 8.2 and 8.3 shall have
become incapable of fulfillment other than as a result of a breach
by Seller of any covenant or agreement contained in this Agreement,
and such condition is not waived by Seller;
(e) by
Purchaser, if there shall be a breach by Seller of any
representation or warranty, or any covenant or agreement contained
in this Agreement which would result in a failure of a condition
set forth in Sections 8.1 or 8.3
and which breach cannot be cured or has not been cured by the
earlier of (i) twenty (20) Business Days after the giving
of written notice by Purchaser to Seller of such breach and
(ii) the Termination Date;
(f) by
Seller, if there shall be a breach by Purchaser of any
representation or warranty, or any covenant or agreement contained
in this Agreement which would result in a failure of a condition
set forth in Sections 8.2 or 8.3
and which breach cannot be cured or has not been cured by the
earlier of (i) twenty (20) Business Days after the giving
of written notice by Seller to Purchaser of such breach and
(ii) the Termination Date; or
(g) by
Seller or Purchaser if there shall be in effect a final
non-appealable Order of a Governmental Body of competent
jurisdiction restraining, enjoining or otherwise prohibiting the
consummation of the transactions contemplated hereby.
3.5 Procedure Upon Termination . In the event of
termination by Purchaser or Seller, or both, pursuant to
Section 3.4 hereof, written notice thereof shall
forthwith be given to the other party or parties, and this
Agreement shall terminate, and the purchase of the
Shares
-7-
hereunder shall
be abandoned, without further action by Purchaser or Seller. If
this Agreement is terminated as provided herein each party shall
redeliver to the party furnishing the same or destroy all
confidential non-public documents, work papers and other material
of any other party relating to the transactions contemplated
hereby, whether so obtained before or after the execution
hereof.
3.6 Effect of Termination . In the event that this
Agreement is validly terminated as provided herein, each of the
Parties shall be relieved of its duties and obligations arising
under this Agreement after the date of such termination and such
termination shall be without liability to Purchaser or Seller;
provided, however , that, if this Agreement is terminated
because of a breach of this Agreement by the non-terminating party
or because one or more of the conditions to the terminating
party’s obligations under this Agreement is not satisfied as
a result of the non-terminating party’s failure to comply
with its obligations under this Agreement, the terminating
party’s right to pursue all legal remedies will survive such
termination unimpaired.
REPRESENTATIONS AND WARRANTIES
OF SELLER
Seller
hereby represents and warrants to Purchaser that on the Closing
Date:
(a) The
Company is a limited liability company duly organized and existing
as such in accordance with applicable German Law. Except as
otherwise stipulated by this Agreement, the sole managing director
( Geschäftsführer ) of the Company is
Mr. Miguel Iribarren and its sole holder of general powers of
representation ( Prokurist ) is Mr. Uwe
Fürstenberg.
(b) Seller
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware.
4.2 Authority . Except for such authorization as is
required by the Bankruptcy Court (as hereinafter provided for),
Seller has all requisite corporate power, authority and legal
capacity to execute and deliver this Agreement and has all
requisite corporate power, authority and legal capacity to execute
and deliver each other agreement, document, or instrument or
certificate contemplated by this Agreement to which Seller is a
party or to be executed by Seller in connection with the
consummation of the transactions contemplated by this Agreement
(the “ Seller Documents ”), to
perform its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. The execution and
delivery of this Agreement and the Seller Documents and the
consummation of the transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate action on the
part of Seller. This Agreement has been, and each of the Seller
Documents will be at or prior to the Closing, duly and validly
executed and delivered by Seller and (assuming the due
authorization, execution and delivery by the other parties hereto
and thereto), the entry of the Sale Order, this Agreement
constitutes, and each of the Seller Documents when so executed and
delivered will constitute,
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legal, valid
and binding obligations of Seller enforceable against it in
accordance with their respective terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally, now or
hereafter in effect, and subject, as to enforceability, to general
principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in
equity).
4.3 Capitalization and Ownership . The Shares of the
Company are set forth on Schedule 4.3 . The
Shares constitute all of the shares or other ownership interests of
the Company and are owned by Seller free and clear of all liens,
pledges, mortgages and any other encumbrances or security
interest.
4.4 Financial Advisors . Except as set forth on
Schedule 4.4 , no Person has acted, directly or
indirectly, as a broker, finder or financial advisor for Seller or
the Company in connection with the transactions contemplated by
this Agreement and no Person engaged by Seller is entitled to any
fee or commission or like payment from Purchaser in respect
thereof.
REPRESENTATIONS AND WARRANTIES
OF PURCHASER
Purchaser
hereby represents and warrants to Seller that on the Closing
Date:
5.1 Corporate Existence . Purchaser is a limited
liability company ( Gesellschaft mit beschränkter Haftung
— GmbH ) duly organized, validly existing, and in good
standing under the laws of Germany.
5.2 Authority . Purchaser has full corporate power
and authority to execute and deliver this Agreement and each other
agreement, document, instrument or certificate contemplated by this
Agreement or to be executed by Purchaser in connection with the
consummation of the transactions contemplated hereby and thereby
(the “ Purchaser Documents ”), to
perform its obligations hereunder and thereunder and to consummate
the transactions contemplated hereby and thereby. The execution,
delivery and performance by Purchaser of this Agreement and each
Purchaser Document and the consummation of the transactions
contemplated hereby and thereby have been duly authorized by all
necessary corporate action on behalf of Purchaser. This Agreement
has been, and each Purchaser Document will be at or prior to the
Closing, duly and validly executed and delivered by Purchaser and
(assuming the due authorization, execution and delivery by the
other parties hereto and thereto) this Agreement constitutes, and
each Purchaser Document when so executed and delivered will
constitute, the legal, valid and binding obligations of Purchaser,
enforceable against Purchaser in accordance with their respective
terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting
creditors’ rights and remedies generally, now or hereafter in
effect, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought
in a proceeding at law or in equity).
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5.3 Conflicts; Consents of Third Parties .
(a) To
the knowledge of Purchaser, none of the execution and delivery by
Purchaser of this Agreement or the Purchaser Documents, the
consummation of the transactions contemplated hereby or thereby, or
the compliance by Purchaser with any of the provisions hereof or
thereof will conflict with, or result in any violation of or
default (with or without notice or lapse of time, or both) under,
or give rise to a right of termination or cancellation under any
provision of (i) the articles of association ( Satzung
) of Purchaser, (ii) any Contract or permit to which Purchaser
is a party or by which Purchaser or its properties or assets are
bound or (iii) any Order of any Governmental Body applicable
to Purchaser or by which any of the properties or assets of
Purchaser are bound or (iv) any applicable Law.
(b) To
the knowledge of Purchaser, no consent, waiver, approval, Order,
permit or authorization of, or declaration or filing with, or
notification to, any Person or Governmental Body is required on the
part of Purchaser in connection with the execution and delivery of
this Agreement or the Purchaser Documents, the compliance by
Purchaser with any of the provisions hereof or thereof, the
consummation of the transactions contemplated hereby or thereby or
the taking by Purchaser of any other action contemplated hereby or
thereby, or for Purchaser to purchase the Shares or operate the
Company’s business.
5.4 Financial Advisors . No Person has acted,
directly or indirectly, as a broker, finder or financial advisor
for Purchaser in connection with the transactions contemplated by
this Agreement and no Person engaged by Purchaser is entitled to
any fee or commission or like payment from Seller in respect
thereof.
5.5 Investment Intent . Purchaser is acquiring the
Shares solely for the purpose, as of the Closing Date, of
investment and not with a view (as of the Closing Date) to, or for
sale in connection with, any distribution thereof. Purchaser shall
not offer to sell or otherwise dispose of any of the Shares in
violation of any Law applicable to any such offer, sale or other
disposition. Purchaser acknowledges that (i) the Shares have
not been registered under the Securities Act of 1933, as amended,
or any state securities Laws and are being offered and sold in
reliance upon federal and state exemptions for transactions not
involving any public offering; (ii) there is no public market for
the Shares and there can be no assurance that a public market will
develop; and (iii) Purchaser must bear the economic risk of
its investment in the Shares for an indefinite period of
time.
5.6 Accredited Investor . Purchaser (i) is a
sophisticated investor with knowledge and experience in business
and financial matters and is to be able to evaluate the risks and
merits of its acquisition of the Company, and it is able
financially to bear the risks thereof, (ii) has had an
opportunity to discuss the Company’s business, management and
financial affairs with the Company’s management and ask
questions with respect thereto and (iii) has been provided
access to all available information about the Company requested by
Purchaser.
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NO OTHER REPRESENTATIONS AND
WARRANTIES
Notwithstanding
anything contained in this Agreement to the contrary, each Party
acknowledges and agrees that the other Party is not making any
representations or warranties whatsoever, express or implied,
beyond those expressly given by the other Party in ARTICLE
IV or ARTICLE V hereof, as applicable (as
modified by the Schedules hereto). Any claims a Party may have for
breach of representation or warranty shall be based solely on the
representations and warranties of the other Party set forth in
ARTICLE IV or ARTICLE V hereof, as
applicable (as modified by the Schedules hereto). Each Party
further represents that neither the other Party nor any of its
Affiliates nor any other Person has made any representation or
warranty, express or implied, as to the accuracy or completeness of
any information regarding the other Party, the Company, the other
Party’s and the Company’s respective businesses, their
assets or the transactions contemplated by this Agreement not
expressly set forth in this Agreement, neither Party, nor any of
its Affiliates or any other Person will have or be subject to any
liability to the Party or any other Person resulting from the
distribution to such Party or its representatives or such
Party’s use of, any such information, including any
confidential memoranda distributed on behalf of the other Party
relating to the Company, its business or assets or other
publications or data room information provided to each Party or its
representatives, or any other document or information in any form
provided to each Party or its representatives in connection with
the sale of the Shares and the transactions contemplated hereby.
Each Party acknowledges that it has conducted to its satisfaction,
its own independent investigation of the Company and, in making the
determination to proceed with the transactions contemplated by this
Agreement, each Party has relied on the results of its own
independent investigation.
6.1 Bankruptcy Court Filings . As promptly
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