Page | ||||
ARTICLE I | ||||
DEFINITIONS | ||||
1.1 Specific Definitions | 3 | |||
1.2 Interpretation | 10 | |||
ARTICLE II | ||||
SALE AND PURCHASE; CLOSING | ||||
2.1 Sale and Purchase of the Purchased Interests | 10 | |||
2.2 Purchase Price; Closing Deliveries | 11 | |||
2.3 Closing | 13 | |||
2.4 Directors | 13 | |||
2.5 Officers | 13 | |||
ARTICLE III | ||||
REPRESENTATIONS AND WARRANTIES OF SELLER | ||||
3.1 Organization | 14 | |||
3.2 Authorization | 14 | |||
3.3 Consents and Approvals | 14 | |||
3.4 Non-Contravention | 14 | |||
3.5 Litigation | 15 | |||
3.6 Brokers and Finders | 15 | |||
ARTICLE IV | ||||
REPRESENTATIONS AND WARRANTIES OF PURCHASER | ||||
4.1 Organization | 16 | |||
4.2 Authorization | 16 | |||
4.3 Consents and Approvals | 16 | |||
4.4 Non-Contravention | 17 | |||
4.5 Transferred Employees | 17 | |||
4.6 Litigation | 17 | |||
4.7 Conduct of Business | 18 | |||
4.8 Investment Status | 18 | |||
4.9 Brokers and Finders | 18 |
Page | ||||
ARTICLE V | ||||
ADDITIONAL AGREEMENTS | ||||
5.1 Conduct of Business | 19 | |||
5.2 Information and Access | 20 | |||
5.3 Confidentiality | 21 | |||
5.4 Further Action; Efforts | 23 | |||
5.5 Publicity | 25 | |||
5.6 Restrictions on Transfers | 25 | |||
5.7 Intercompany Arrangements | 25 | |||
5.8 Transition Services Agreement | 26 | |||
5.9 Transition | 26 | |||
5.10 Merger Agreement Matters | 27 | |||
5.11 Corporate Guarantees | 27 | |||
5.12 Seller Guarantee | 28 | |||
5.13 Seller Indemnification Cooperation | 28 | |||
5.14 Transfer of Employees | 28 | |||
5.15 Further Assurances | 29 | |||
5.16 Business Relationships | 30 | |||
5.17 Intellectual Property Matters | 30 | |||
5.18 Employment Matters | 31 | |||
ARTICLE VI | ||||
CONDITIONS | ||||
6.1 Conditions to Each Party’s Obligation to Effect the Sale | 32 | |||
6.2 Conditions to Obligations of Purchaser | 33 | |||
6.3 Conditions to Obligations of Seller | 33 | |||
ARTICLE VII | ||||
TERMINATION | ||||
7.1 Termination by Mutual Consent | 34 | |||
7.2 Termination by Either Purchaser or Seller | 34 | |||
7.3 Termination by Purchaser | 34 | |||
7.4 Termination by Seller | 35 | |||
7.5 Effect of Termination | 35 | |||
ARTICLE VIII | ||||
SURVIVAL AND INDEMNIFICATION | ||||
8.1 Survival | 35 | |||
8.2 Indemnification and Reimbursement of Seller Indemnified Persons | 35 |
ii
Page | ||||
8.3 Indemnification and Reimbursement of Purchaser Indemnified Persons | 36 | |||
8.4 Third-Party Claim Indemnification Procedures | 37 | |||
8.5 Defense and Indemnification for Third Party IP Infringement Claims | 38 | |||
8.6 Characterization of Indemnification Payments | 42 | |||
8.7 Indemnification Payments | 42 | |||
8.8 Limitation on Liability | 42 | |||
8.9 Specific Performance | 42 | |||
ARTICLE IX | ||||
TAX MATTERS | ||||
9.1 Tax Indemnification and Reimbursement of Seller Indemnified Persons | 42 | |||
9.2 Tax Indemnification and Reimbursement of Purchaser Indemnified Persons | 43 | |||
9.3 Tax Returns | 43 | |||
9.4 Tax Cooperation | 43 | |||
9.5 Treatment of Indemnification Payments | 44 | |||
9.6 Exclusivity | 44 | |||
ARTICLE X | ||||
MISCELLANEOUS AND GENERAL | ||||
10.1 Modification or Amendment | 44 | |||
10.2 Waiver of Conditions | 44 | |||
10.3 GOVERNING LAW; WAIVER OF JURY TRIAL | 44 | |||
10.4 Consent to Jurisdiction | 45 | |||
10.5 Notices | 45 | |||
10.6 Entire Agreement | 46 | |||
10.7 No Assignment or Benefit to Third Parties | 46 | |||
10.8 Severability | 46 | |||
10.9 Fulfillment of Obligation | 46 | |||
10.10 Further Assurances | 47 | |||
10.11 Expenses | 47 | |||
10.12 Counterparts | 47 |
iii
iv
Page | ||||
Accounts Receivable | 3 | |||
Action | 4 | |||
Affiliate | 4 | |||
Agreement | 1 | |||
Ancillary Agreements | 4 | |||
Antitrust Laws | 4 | |||
Assets | 4 | |||
Assigned Leases | 5 | |||
Assignment and Assumption of Lease Agreement (National Turnpike) | 4 | |||
Assignment and Assumption of Lease Agreement (Shepardsville) | 5 | |||
Beneficial ownership | 5 | |||
Books and Records | 5 | |||
Business Day | 5 | |||
Certificate | 5 | |||
Chosen Courts | 45 | |||
Claim Notice | 37 | |||
Closing | 13 | |||
Closing Date | 13 | |||
Code | 5 | |||
Consents | 14 | |||
Contract | 5 | |||
Contribution Agreement | 3 | |||
Conversion Plan | 26 | |||
Delayed Sale Entity | 13 | |||
Employees | 29 | |||
Facility Contracts | 27 | |||
Fanatics | 1 | |||
Fanatics Equity Interests | 1 | |||
Fanatics Merger Agreement | 5 | |||
Fixtures and Equipment | 5 | |||
GAAP | 5 | |||
Governmental Authorizations | 6 | |||
Governmental Consents | 23 | |||
Governmental Entity | 6 | |||
Governmental Order | 6 | |||
GSI | 1 | |||
GSI Inventory | 6 | |||
GSICS | 3 | |||
HSR Act | 6 | |||
Indemnified Person | 37 | |||
Indemnifying Person | 37 | |||
Intellectual Property | 6 |
v
Page | ||||
Intercompany Agreement | 3 | |||
Intercompany Arrangements | 6 | |||
Joinder Agreement | 3 | |||
Law | 6 | |||
Lender | 2 | |||
Liabilities | 7 | |||
Licensed Sports Business | 7 | |||
Licensed Sports Business Purchase Price | 11 | |||
Lien | 7 | |||
Loan Agreement | 2 | |||
Losses | 7 | |||
Merger | 1 | |||
Merger Agreement | 1 | |||
Merger Closing | 7 | |||
Merger Closing Date | 7 | |||
Merger Sub | 1 | |||
National Turnpike Facility | 4 | |||
National Turnpike Lease | 5 | |||
Non-Competition Agreement | 2 | |||
Non-Exclusive License | 7 | |||
Notice Period | 37 | |||
Organizational Documents | 7 | |||
Patent License Agreement | 3 | |||
Person | 8 | |||
Purchased Entities | 1 | |||
Purchased Entity Inventory | 8 | |||
Purchased Entity Related Liabilities | 8 | |||
Purchased Interests | 1 | |||
Purchaser | 1 | |||
Purchaser Basket Amount | 42 | |||
Purchaser Confidential Information | 21 | |||
Purchaser Disclosure Schedule | 8 | |||
Purchaser Indemnified Persons | 37 | |||
Related to the Excluded Business | 8 | |||
Related to the Purchased Entities Businesses | 8 | |||
Release Agreement | 3 | |||
Representatives | 21 | |||
Required Governmental Approvals | 14 | |||
Rubin Employment Agreement | 31 | |||
RueLaLa | 1 | |||
RueLaLa Common Stock | 1 | |||
RueLaLa Management Agreement | 2 | |||
RueLaLa Merger Agreement | 8 | |||
Ruelala Purchase Price | 11 | |||
RueLaLa Stockholders Agreement | 2 | |||
Sale | 1 |
vi
Page | ||||
SEC | 14 | |||
Seller | 1 | |||
Seller Confidential Information | 22 | |||
Seller Covered Liabilities | 8 | |||
Seller Created Liens | 9 | |||
Seller Disclosure Schedule | 9 | |||
Seller Excluded Affiliates | 9 | |||
Seller Indemnified Persons | 36 | |||
Shepardsville Lease | 5 | |||
Shepardsville Related Contracts | 36 | |||
Shepardsville Warehouse | 5 | |||
Shoprunner | 1 | |||
Shoprunner Common Stock | 1 | |||
Shoprunner Management Agreement | 2 | |||
Shoprunner Purchase Price | 11 | |||
Shoprunner Stockholders Agreement | 2 | |||
Subsidiary | 9 | |||
Tax | 9 | |||
Tax Return | 9 | |||
Taxable | 9 | |||
Taxes | 9 | |||
TeamStore | 1 | |||
TeamStore Common Stock | 1 | |||
TeamStore Excluded Current Liabilities | 9 | |||
Third-Party Claim | 37 | |||
Trademarks | 9 | |||
Transaction Agreements | 10 | |||
Transferred Employees | 28 | |||
Transferred IP Assets | 10 | |||
Transition Services Agreement | 26 | |||
U.S. Exchange Act | 8 | |||
U.S. Securities Act | 8 | |||
U.S. Securities Laws | 8 | |||
Unvested Equity Awards | 28 | |||
Value for the Unvested Equity Awards | 29 |
vii
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OF PURCHASER
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at a
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King of Prussia, PA 19406
Fax: (610) 491-7299
Attention: Michael Rubin
1870 Embarcadero Road
Palo Alto, CA 94303
Attention: John L. Savva
-45-
eBay Inc.
2145 Hamilton Avenue
San Jose, CA 95125
Fax: (408) 376-7517
-46-
-47-
NRG Commerce, LLC | ||||
By: | /s/ Michael G. Rubin | |||
Name: | Michael G. Rubin | |||
Title: | Managing Member | |||
eBAY INC. | ||||
By: | /s/ Robert H. Swan | |||
Name: | Robert H. Swan | |||
Title: | Chief Financial Officer | |||
-48-
Page | ||||
ARTICLE I | ||||
Definitions | ||||
Section 1.1 Definitions | 1 | |||
Section 1.2 Interpretation | 1 | |||
ARTICLE II | ||||
Board of Directors and Voting Provisions | ||||
Section 2.1 Size of the Board | 2 | |||
Section 2.2 Company Board Composition | 2 | |||
Section 2.3 Subsidiary Governing Body Composition | 3 | |||
Section 2.4 Failure to Designate a Board Member | 3 | |||
Section 2.5 Actions of Stockholders | 3 | |||
Section 2.6 Actions of the Company | 3 | |||
Section 2.7 No Liability for Election of Recommended Directors | 4 | |||
Section 2.8 Quorum | 4 | |||
Section 2.9 Observer Rights | 4 | |||
Section 2.10 Acknowledgment | 5 | |||
Section 2.11 Termination | 6 | |||
ARTICLE III | ||||
Related Party and Other Transactions | ||||
Section 3.1 Related Party Transactions | 6 | |||
Section 3.2 Compensation | 7 | |||
Section 3.3 Termination | 7 | |||
ARTICLE IV | ||||
Rights to Future Stock Issuances | ||||
Section 4.1 Preemptive Rights | 7 | |||
Section 4.2 Termination | 8 | |||
ARTICLE V | ||||
Right of First Refusal | ||||
Section 5.1 Right of First Refusal | 8 | |||
Section 5.2 Exempt Transfers | 10 | |||
Section 5.3 Termination | 10 |
i
Page | ||||
ARTICLE VI | ||||
Right of First Offer | ||||
Section 6.1 Right of First Offer | 11 | |||
Section 6.2 Exempt Transfers | 13 | |||
Section 6.3 Termination | 13 | |||
ARTICLE VII | ||||
Tag-Along Right | ||||
Section 7.1 Tag-Along Right; Actions to Be Taken | 13 | |||
Section 7.2 Termination | 14 | |||
ARTICLE VIII | ||||
Drag-Along Right | ||||
Section 8.1 Application of Drag-Along Rights | 14 | |||
Section 8.2 Exercise | 14 | |||
Section 8.3 Agreements | 15 | |||
Section 8.4 Termination | 16 | |||
ARTICLE IX | ||||
[Reserved] | ||||
Section 9.1 [Reserved] | 16 | |||
ARTICLE X | ||||
Information Rights | ||||
Section 10.1 Applicable Regulatory Compliance | 16 | |||
Section 10.2 Delivery of Financial Statements | 17 | |||
Section 10.3 Inspection | 18 | |||
Section 10.4 Termination | 18 | |||
ARTICLE XI | ||||
Registration Rights | ||||
Section 11.1 Demand Registration Rights | 18 | |||
Section 11.2 Piggyback Registration Rights | 20 | |||
Section 11.3 Offer Procedures | 21 | |||
Section 11.4 Expenses | 24 | |||
Section 11.5 Indemnification and Contribution | 25 | |||
ARTICLE XII | ||||
Representations and Warranties | ||||
Section 12.1 Power and Authority; Valid and Binding Obligations; No Conflict or Violation | 28 |
ii
Page | ||||
ARTICLE XIII | ||||
Additional Covenants | ||||
Section 13.1 Further Assurances | 28 | |||
Section 13.2 Specific Enforcement | 29 | |||
Section 13.3 Remedies Cumulative | 29 | |||
Section 13.4 Prohibited Transfer Void | 29 | |||
ARTICLE XIV | ||||
Miscellaneous | ||||
Section 14.1 Transfers | 29 | |||
Section 14.2 Assignment | 29 | |||
Section 14.3 Successors and Assigns | 29 | |||
Section 14.4 Governing Law | 30 | |||
Section 14.5 Counterparts | 30 | |||
Section 14.6 Notices | 30 | |||
Section 14.7 Effective Time; Consent Required to Amend, Terminate or Waive | 30 | |||
Section 14.8 Termination | 31 | |||
Section 14.9 Delays or Omissions | 31 | |||
Section 14.10 Severability | 31 | |||
Section 14.11 No Ownership Interest | 32 | |||
Section 14.12 Entire Agreement | 32 | |||
Section 14.13 Legend on Stock Certificates | 32 | |||
Section 14.14 Stock Splits, Stock Dividends, etc | 33 | |||
Section 14.15 Manner of Voting | 33 | |||
Section 14.16 Consent to Jurisdiction | 33 | |||
Section 14.17 WAIVER OF JURY TRIAL | 33 | |||
Section 14.18 Costs of Enforcement | 33 | |||
Section 14.19 Aggregation of Stock | 34 | |||
Section 14.20 Spousal Consent | 34 | |||
Section 14.21 No Presumption | 34 |
Exhibit A — Adoption Agreement
Exhibit B — Consent of Spouse
iii
Definitions
Board of Directors and Voting Provisions
2
3
4
5
Related Party and Other Transactions
6
Rights to Future Stock Issuances
7
Right of First Refusal
8
9
10
Right of First Offer
11
12
Tag-Along Right
13
Drag-Along Right
14
15
[Reserved]
Information Rights
16
17
Registration Rights
18
19
20
21
22
23
24
25
26
27
Representations and Warranties
Additional Covenants
28
Miscellaneous
29
30
31
32
33
34
RUELALA, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: Fax: Attention: NRG COMMERCE, LLC | ||||
By: | ||||
Name: | Michael G. Rubin | |||
Title: | Managing Member | |||
Address: Fax: Attention: EBAY DOMESTIC HOLDINGS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: Fax: Attention: | ||||
Annex A-1
Annex A-2
Annex A-3
Annex A-4
Annex A-5
Annex A-6
Annex A-7
Annex A-8
Exhibit A-1
HOLDER: |
By: |
Name and Title of Signatory |
Address: |
Facsimile Number: |
ACCEPTED AND AGREED: | ||||
RUELALA, INC. | ||||
By: | ||||
Title: | ||||
NRG COMMERCE, LLC | ||||
By: | ||||
Title: | ||||
EBAY DOMESTIC HOLDINGS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
[Insert signature blocks of any Other Holders] |
Exhibit A-2
Dated: | ||||
[Name of Other Holder’s Spouse, if any] |
Exhibit B-1
Page | ||||
ARTICLE I | ||||
Definitions | ||||
Section 1.1 Definitions | 1 | |||
Section 1.2 Interpretation | 1 | |||
ARTICLE II | ||||
Board of Directors and Voting Provisions | ||||
Section 2.1 Size of the Board | 2 | |||
Section 2.2 Company Board Composition | 2 | |||
Section 2.3 Subsidiary Governing Body Composition | 3 | |||
Section 2.4 Failure to Designate a Board Member | 3 | |||
Section 2.5 Actions of Stockholders | 3 | |||
Section 2.6 Actions of the Company | 3 | |||
Section 2.7 No Liability for Election of Recommended Directors | 4 | |||
Section 2.8 Quorum | 4 | |||
Section 2.9 Observer Rights | 4 | |||
Section 2.10 Acknowledgment | 5 | |||
Section 2.11 Termination | 6 | |||
ARTICLE III | ||||
Related Party and Other Transactions | ||||
Section 3.1 Related Party Transactions | 6 | |||
Section 3.2 Payments and Issuances | 7 | |||
Section 3.3 Termination | 7 | |||
ARTICLE IV | ||||
Rights to Future Stock Issuances | ||||
Section 4.1 Preemptive Rights | 7 | |||
Section 4.2 Termination | 8 | |||
ARTICLE V | ||||
Right of First Refusal | ||||
Section 5.1 Right of First Refusal | 8 | |||
Section 5.2 Exempt Transfers | 10 | |||
Section 5.3 Termination | 10 |
i
Page | ||||
ARTICLE VI | ||||
Right of First Offer | ||||
Section 6.1 Right of First Offer | 11 | |||
Section 6.2 Exempt Transfers | 13 | |||
Section 6.3 Termination | 13 | |||
ARTICLE VII | ||||
Tag-Along Right | ||||
Section 7.1 Tag-Along Right; Actions to Be Taken | 13 | |||
Section 7.2 Termination | 14 | |||
ARTICLE VIII | ||||
Drag-Along Right | ||||
Section 8.1 Application of Drag-Along Rights | 14 | |||
Section 8.2 Exercise | 14 | |||
Section 8.3 Agreements | 15 | |||
Section 8.4 Termination | 16 | |||
ARTICLE IX | ||||
[Reserved] | ||||
Section 9.1 [Reserved] | 16 | |||
ARTICLE X | ||||
Information Rights | ||||
Section 10.1 Applicable Regulatory Compliance | 16 | |||
Section 10.2 Delivery of Financial Statements | 17 | |||
Section 10.3 Inspection | 18 | |||
Section 10.4 Termination | 18 | |||
ARTICLE XI | ||||
Registration Rights | ||||
Section 11.1 Demand Registration Rights | 18 | |||
Section 11.2 Piggyback Registration Rights | 20 | |||
Section 11.3 Offer Procedures | 21 | |||
Section 11.4 Expenses | 24 | |||
Section 11.5 Indemnification and Contribution | 25 | |||
ARTICLE XII | ||||
Representations and Warranties | ||||
Section 12.1 Power and Authority; Valid and Binding Obligations; No Conflict or Violation | 28 |
ii
Page | ||||
ARTICLE XIII | ||||
Additional Covenants | ||||
Section 13.1 Further Assurances | 28 | |||
Section 13.2 Specific Enforcement | 29 | |||
Section 13.3 Remedies Cumulative | 29 | |||
Section 13.4 Prohibited Transfer Void | 29 | |||
ARTICLE XIV | ||||
Miscellaneous | ||||
Section 14.1 Transfers | 29 | |||
Section 14.2 Assignment | 29 | |||
Section 14.3 Successors and Assigns | 29 | |||
Section 14.4 Governing Law | 30 | |||
Section 14.5 Counterparts | 30 | |||
Section 14.6 Notices | 30 | |||
Section 14.7 Effective Time; Consent Required to Amend, Terminate or Waive | 30 | |||
Section 14.8 Termination | 31 | |||
Section 14.9 Delays or Omissions | 31 | |||
Section 14.10 Severability | 31 | |||
Section 14.11 No Ownership Interest | 32 | |||
Section 14.12 Entire Agreement | 32 | |||
Section 14.13 Legend on Stock Certificates | 32 | |||
Section 14.14 Stock Splits, Stock Dividends, etc | 33 | |||
Section 14.15 Manner of Voting | 33 | |||
Section 14.16 Consent to Jurisdiction | 33 | |||
Section 14.17 WAIVER OF JURY TRIAL | 33 | |||
Section 14.18 Costs of Enforcement | 33 | |||
Section 14.19 Aggregation of Stock | 34 | |||
Section 14.20 Spousal Consent | 34 | |||
Section 14.21 No Presumption | 34 | |||
Annex A — Definitions | ||||
Exhibit A — Adoption Agreement | ||||
Exhibit B — Consent of Spouse |
iii
Definitions
Board of Directors and Voting Provisions
2
3
4
5
Related Party and Other Transactions
6
Rights to Future Stock Issuances
7
Right of First Refusal
8
9
10
Right of First Offer
11
12
Tag-Along Right
13
Drag-Along Right
14
15
[Reserved]
Information Rights
16
17
Registration Rights
18
19
20
21
22
23
24
25
26
27
Representations and Warranties
Additional Covenants
28
Miscellaneous
29
30
31
32
33
34
SHOPRUNNER, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: Fax: Attention: | ||||
NRG COMMERCE, LLC | ||||
By: | ||||
Name: | Michael G. Rubin | |||
Title: | Managing Member | |||
Address: Fax: Attention: | ||||
EBAY DOMESTIC HOLDINGS, INC. | ||||
By: | ||||
Name: | ||||
Title: | ||||
Address: Fax: Attention: | ||||
Annex A-1
Annex A-2
Annex A-3
Annex A-4
Annex A-5
Annex A-6
Annex A-7
Annex A-8
Exhibit A-1
HOLDER: | ACCEPTED AND AGREED: | |
By: | SHOPRUNNER, INC. | |
Name and Title of Signatory | By: | |
Address: | Title: | |
Facsimile Number: | NRG COMMERCE, LLC | |
By: | ||
Title: | ||
EBAY DOMESTIC HOLDINGS, INC. | ||
By: | ||
Name: | ||
Title: | ||
[Insert signature blocks of any Other Holders] |
Exhibit A-2
Dated: | ||
[Name of Other Holder’s Spouse, if any] |
Exhibit B-1
as Borrower,
as Lender
Page | ||||
ARTICLE I | ||||
Definitions and Interpretation | ||||
Section 1.1 Definitions | 1 | |||
Section 1.2 Interpretation | 12 | |||
ARTICLE II | ||||
Loans | ||||
Section 2.1 Loans | 13 | |||
Section 2.2 Interest on the Loans | 13 | |||
Section 2.3 Maturity | 13 | |||
Section 2.4 Mandatory Prepayment | 14 | |||
Section 2.5 Optional Prepayment | 14 | |||
Section 2.6 Payments | 14 | |||
ARTICLE III | ||||
Representations and Warranties | ||||
Section 3.1 Due Organization | 15 | |||
Section 3.2 Authority | 15 | |||
Section 3.3 Binding Effect | 15 | |||
Section 3.4 No Consents | 15 | |||
Section 3.5 No Conflicts or Default | 15 | |||
Section 3.6 Investment Company Act | 16 | |||
Section 3.7 Liens | 16 | |||
Section 3.8 Debt | 16 | |||
Section 3.9 Compliance with Laws | 16 | |||
Section 3.10 Guarantors | 16 | |||
ARTICLE IV | ||||
Conditions Precedent | ||||
Section 4.1 Conditions Precedent | 16 | |||
ARTICLE V | ||||
Covenants | ||||
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Page | ||||
Section 5.1 Existence | 18 | |||
Section 5.2 Merger and Consolidation | 18 | |||
Section 5.3 Indebtedness | 19 | |||
Section 5.4 Transactions with Affiliates | 20 | |||
Section 5.5 Restricted Payments | 20 | |||
Section 5.6 Asset Sales | 21 | |||
Section 5.7 Books and Records | 21 | |||
Section 5.8 Financial Reporting; Other Documents | 21 | |||
Section 5.9 Compliance with Laws | 22 | |||
Section 5.10 Joinder | 22 | |||
ARTICLE VI | ||||
Subordination | ||||
Section 6.1 Subordination | 23 | |||
ARTICLE VII | ||||
The Guarantee | ||||
Section 7.1 The Guarantee | 23 | |||
Section 7.2 Obligations Unconditional | 24 | |||
Section 7.3 Reinstatement | 25 | |||
Section 7.4 Subrogation | 25 | |||
Section 7.5 Remedies | 25 | |||
Section 7.6 Instrument for the Payment of Money | 25 | |||
Section 7.7 Continuing Guarantee | 25 | |||
Section 7.8 General Limitation on Guarantee Obligations | 25 | |||
Section 7.9 Release of Guarantors | 26 | |||
Section 7.10 Right of Contribution | 26 | |||
ARTICLE VIII | ||||
Events of Default | ||||
Section 8.1 Events of Default | 26 | |||
ARTICLE IX | ||||
Miscellaneous | ||||
Section 9.1 Entire Understanding | 29 | |||
Section 9.2 Amendments and Waivers | 29 | |||
Section 9.3 Successors and Assigns | 29 | |||
Section 9.4 Severability | 29 | |||
Section 9.5 Notices | 29 |
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Page | ||||
Section 9.6 Governing Law; Waiver of Jury Trial | 30 | |||
Section 9.7 Consent to Jurisdiction | 30 | |||
Section 9.8 Counterparts; Facsimile Signatures | 31 | |||
Section 9.9 Third Party Beneficiaries | 31 |
Annex B — Limited Guarantee
Schedule I
Schedule 3.7 Existing Liens
Schedule 3.8 Existing Indebtedness
Schedule 5.4 Transactions with Affiliates
-iii-
(i) | a disposition by a Loan Party to another Loan Party (provided that, in the case of dispositions to RueLaLa or ShopRunner, the aggregate fair market value of all such assets shall not exceed $10 million to each); | ||
(ii) | merger, consolidation or the disposition of the assets of a Loan Party or a Subsidiary in accordance with Section 5.2; | ||
(iii) | a disposition of assets of a Loan Party or a Subsidiary (other than Equity Interests of any Loan Party or Subsidiary) or series of related dispositions of assets with a fair market value of less than $1 million (and not more than $10 million in the aggregate for all such transactions during the term of this Agreement); | ||
(iv) | dispositions of obsolete, worn-out or redundant equipment no longer used or useful in the business as then being conducted; | ||
(v) | trade-ins or exchanges of equipment or other fixed assets; | ||
(vi) | dispositions in the ordinary course of business for purposes of collection of past due accounts receivable or notes receivable; | ||
(vii) | a disposition of cash or temporary cash investments; | ||
(viii) | the creation of a Lien; | ||
(ix) | the sale of inventory, equipment, accounts receivable or other current assets held for sale in the ordinary course of business; |
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(x) | the lease or sublease of any Real Property or personal property in the ordinary course of business; | ||
(xi) | a sale or transfer of accounts receivable or related assets as part of a receivables, factoring or similar transaction where either (A) the proceeds are used for working capital purposes or (B) such transaction constitutes Indebtedness permitted pursuant toSection 5.3(b); | ||
(xii) | the grant in the ordinary course of business of any license, sub-license or covenant not to sue of Intellectual Property; | ||
(xiii) | a disposition of assets as a result of a Casualty Event; | ||
(xiv) | the surrender or waiver of contract rights or settlement, release or surrender of a contract, tort or litigation claim in the ordinary course of business; | ||
(xv) | an issuance or sale of any Equity Interests of a Loan Party or a Subsidiary (including its Equity Interests issued upon exercise of any warrant or option or warrants or options to purchase its Equity Interests) to officers, directors, consultants or employees of any Loan Party or any Subsidiary pursuant to management or employee stock or equity-based plans, awards, grants, incentive plans or other compensation; | ||
(xvi) | a sale, distribution or transfer of all or substantially all of the Equity Interests or property of RueLaLa or ShopRunner to the Investor or any Affiliate of the Investor;providedthat following such sale, distribution or transfer, RueLaLa and ShopRunner remain Guarantors; and | ||
(xvii) | an issuance of Equity Interests of RueLaLa or ShopRunner pursuant to one or more underwritten public offerings where the cash proceeds are received by the issuer of such Equity Interests (and if not RueLaLa or ShopRunner, respectively, contributed as capitol to such entities) and used for investment in the business of RueLaLa or ShopRunner, respectively. |
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1 | Note: The first interest payment date will be the first of those dates to occur at least three months after the Closing Date. |
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Agreement | Preamble | |
Borrower | Preamble | |
Chosen Courts | Section 9.7 | |
Event of Default | Section 8.1 | |
Guaranteed Obligations | Section 7.1 | |
Lender | Preamble | |
Loan | Section 2.1 | |
Maximum Amount | Section 7.1 | |
Merger | Recital | |
Merger Agreement | Recital | |
Merger Sub | Recital | |
Optional Prepayment Amount | Section 2.5 | |
Restricted Payments | Section 5.5 | |
Seller | Recital | |
Senior Debt Agreement | Section 5.8 |
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Stock Purchase | Recital | |
Stock Purchase Agreement | Recital | |
Transferred Guarantor | Section 7.9 |
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1870 Embarcadero Road
Palo Alto, CA 94303
Attention: John L. Savva
1950 University Avenue, Suite 500
East Palo Alto, CA 94303
Attention: Keith A. Flaum
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GSI Commerce, Inc., as Lender | ||||
By: | ||||
Name: | ||||
Title: | ||||
NRG Commerce, LLC, as Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
RueLaLa, Inc., as Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
ShopRunner, Inc., as Guarantor | ||||
By: | ||||
Name: | ||||
Title: |
TeamStore, Inc., as Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
Fanatics, LLC, as Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
[To add other Guarantors] |
Collateral and Subordination Terms
I. | Collateral Terms |
a. | Second priority perfected security interest in all assets of Loan Parties, and Equity Interests in Loan Parties (other than Equity Interests in the Borrower), subject to customary exceptions for permitted liens, foreign subsidiaries, immaterial real property, excluded accounts, security interests prohibited by law or agreement and other customary exceptions. | ||
b. | Customary Accounts Control Agreement that satisfies U.C.C. “control” requirements for purposes of perfection, but that allows (i) Borrower and the other Loan Parties to direct the management and operation of the accounts so long as no Event of Default has occurred and is continuing and (ii) customary exceptions for excluded accounts, such as tax, payroll, petty cash and employee benefits accounts. | ||
c. | Customary Pledge Agreement shall provide for the pledge and delivery of Equity Interests of Loan Parties other than the Borrower. | ||
d. | Loan Parties will make required filings and take such other steps required, or deemed reasonable in Lender’s good faith judgment, to perfect the security interests in the collateral. | ||
e. | Customary permitted liens, such as tax and government liens, liens required by law, existing liens, easements and rights-of-way, purchase money liens, judgment liens, conditional sale and title retention for sale of goods and bankers’ liens and rights of set off. | ||
f. | Collateral release provisions consistent with the terms of the Loan Agreement shall be included to which this Annex A is attached (the “Loan Agreement”). | ||
g. | Collateral pledged by the Limited Guarantors shall secure only and be limited to the obligations under the Limited Guarantees. | ||
h. | The Collateral Documents shall otherwise be in form and substance reasonably satisfactory to Lender and Borrower. |
II. | Intercreditor Terms | |
The following provisions are solely for the purpose of defining the relative rights of subordinated Lender, on the one hand, and the senior creditors under the Credit Facilities permitted under the Loan Agreement (the “Senior Lenders”), on the other hand, and shall not be deemed to create any rights or priorities in favor of any other Person, including, |
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without limitation, any Loan Party. The failure of any Loan Party to make any payment to any subordinated Lender due to the operation of these provisions shall not be construed as prohibiting the occurrence of a Default under the Loan Agreement. |
a. | Credit Facility (not to exceed the maximum permitted pursuant to Section 5.3(b) of the Loan Agreement) shall have a first priority perfected security interest in the collateral described above and the liens securing the Credit Facility will be senior to the liens securing the Loan. No secured party shall contest the priority, validity or enforceability of any lien held by or on behalf of any other secured party. | ||
b. | Loans shall be subordinate to prior payment in full of any Credit Facility and shall be subordinate to the Credit Facility in liquidation or dissolution. | ||
c. | 180 day standstill on Loan payments upon payment default or right to acceleration under Credit Facility (the “Standstill Period”). | ||
d. | Lender will not seek to or exercise remedies in respect of the collateral described above until after the end of the Standstill Period and in no event if the collateral agent for the Credit Agreement is diligently pursuing remedies with respect to the collateral. Lender shall otherwise have all rights and remedies as an unsecured creditor that is subordinate to the Credit Facilities. | ||
e. | The collateral agent for the Credit Facility shall have the right to exercise all remedies in respect of the collateral and Lender shall not object to or hinder remedies being exercised by the collateral agent for the Credit Agreement. | ||
f. | Lender shall not receive collateral or any proceeds of collateral in violation of the priorities described above. | ||
g. | Any payments made to Lender in violation of subordination and collateral priority provisions described above shall be paid over to the lenders under the Credit Facility and no subrogation rights will be available to the Lender until the Credit Facility is paid in full. | ||
h. | Customary notice provisions among Borrower, Lender and lenders under the Credit Facility. | ||
i. | Following an event of default of the Credit Facility, Lender shall have the right to buyout the Credit Facility under Section 5.3(b) at any time after the earlier of (A) the end of the Standstill Period and (B) acceleration of the Credit Facility, provided that the buyout right in (B) shall expire 90 days following such acceleration event. | ||
j. | The intercreditor agreement shall otherwise be in form and substance reasonably satisfactory to Lender, the Senior Lenders and Borrower. |
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By: | ||||
NAME: MICHAEL G. RUBIN | ||||
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