ARTICLE I DEFINITIONS | 1 | |||
Section 1.1 Certain Definitions | 1 | |||
Section 1.2 Terms Generally | 14 | |||
ARTICLE II PURCHASE AND SALE OF THE INTERESTS | 15 | |||
Section 2.1 Purchase and Sale of the Interests | 15 | |||
Section 2.2 Closing | 15 | |||
Section 2.3 Purchase Price | 15 | |||
Section 2.4 Purchase Price Allocation | 19 | |||
Section 2.5 Closing Deliveries | 20 | |||
Section 2.6 Satisfaction of Conditions | 22 | |||
Section 2.7 Transfer Taxes | 22 | |||
Section 2.8 Proceedings | 22 | |||
ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY GROUP | 22 | |||
Section 3.1 Organization of the Company and the Company Group | 22 | |||
Section 3.2 Noncontravention | 23 | |||
Section 3.3 Subsidiaries of the Company; Capitalization | 23 | |||
Section 3.4 Government Authorizations | 23 | |||
Section 3.5 Financial Statements | 24 | |||
Section 3.6 Absence of Certain Changes | 24 | |||
Section 3.7 Tax Matters | 25 | |||
Section 3.8 Real Property | 28 | |||
Section 3.9 Intellectual Property | 29 | |||
Section 3.10 Environmental Matters | 30 | |||
Section 3.11 Contracts | 32 | |||
Section 3.12 Insurance | 34 | |||
Section 3.13 Litigation | 34 | |||
Section 3.14 Employee Matters | 35 | |||
Section 3.15 Legal Compliance | 40 | |||
Section 3.16 Permits | 40 | |||
Section 3.17 Export Controls Compliance | 41 | |||
Section 3.18 Brokers’ Fees | 41 | |||
Section 3.19 No Undisclosed Liabilities | 41 | |||
Section 3.20 Title to Tangible Assets | 41 | |||
Section 3.21 Accounts Receivables | 42 | |||
Section 3.22 Affiliate Transactions | 42 | |||
Section 3.23 Bank Accounts; Powers of Attorney | 42 | |||
Section 3.24 Books and Records | 42 | |||
Section 3.25 Internal Controls | 42 | |||
Section 3.26 No Gifts or Similar Benefits | 42 | |||
Section 3.27 Asbestos Matters | 42 | |||
Section 3.28 Solvency | 43 | |||
Section 3.29 Sufficiency and Condition of Assets | 43 | |||
Section 3.30 BAe Benefit; Non-Action | 43 | |||
Section 3.31 NO ADDITIONAL REPRESENTATIONS | 44 | |||
ARTICLE IV REPRESENTATIONS AND WARRANTIES REGARDING SSSL | 44 | |||
Section 4.1 Organization | 44 |
- i -
Section 4.2 Equity Interests; Capitalization | 44 | |||
Section 4.3 SSSL Taxes | 45 | |||
Section 4.4 SSSL Employees | 46 | |||
Section 4.5 SSSL Real Property | 46 | |||
Section 4.6 SSSL Intellectual Property | 46 | |||
ARTICLE V REPRESENTATIONS AND WARRANTIES REGARDING SELLERS | 47 | |||
Section 5.1 Organization | 47 | |||
Section 5.2 Authorization | 48 | |||
Section 5.3 Ownership of Interests | 48 | |||
Section 5.4 Noncontravention | 48 | |||
Section 5.5 Brokers’ Fees | 48 | |||
ARTICLE VI REPRESENTATIONS AND WARRANTIES REGARDING BUYER | 48 | |||
Section 6.1 Organization | 48 | |||
Section 6.2 Authorization | 48 | |||
Section 6.3 Financial Capacity; Solvency | 49 | |||
Section 6.4 Noncontravention | 49 | |||
Section 6.5 Government Authorizations | 49 | |||
Section 6.6 Litigation | 49 | |||
Section 6.7 Brokers’ Fees | 49 | |||
Section 6.8 Investment | 49 | |||
ARTICLE VII PRE-CLOSING COVENANTS | 50 | |||
Section 7.1 Conduct of the Company | 50 | |||
Section 7.2 Access to Information and Personnel | 52 | |||
Section 7.3 Commercially Reasonable Efforts | 53 | |||
Section 7.4 HSR Act Compliance; Government Approvals | 54 | |||
Section 7.5 Public Announcements | 55 | |||
Section 7.6 Notification of Certain Matters | 56 | |||
Section 7.7 Disclosure Schedule Updates | 56 | |||
Section 7.8 Exclusive Dealing | 56 | |||
Section 7.9 Inspection and Repair | 56 | |||
Section 7.10 Additional Voluntary Disclosures | 56 | |||
Section 7.11 Computer Software | 57 | |||
Section 7.12 Open Voluntary Disclosure | 57 | |||
ARTICLE VIII CONDITIONS TO CLOSING | 57 | |||
Section 8.1 Conditions Precedent to Obligations of Buyer and Sellers | 57 | |||
Section 8.2 Conditions Precedent to Obligation of Sellers | 57 | |||
Section 8.3 Conditions Precedent to Obligations of Buyer | 58 | |||
ARTICLE IX ADDITIONAL COVENANTS | 58 | |||
Section 9.1 Post-Closing Access; Preservation of Records | 58 | |||
Section 9.2 Further Assurances | 59 | |||
Section 9.3 Director and Officer Indemnification | 59 | |||
Section 9.4 Employee Matters | 59 | |||
Section 9.5 Taxes | 61 | |||
Section 9.6 Shareholder Consents | 64 | |||
Section 9.7 BAe Benefit; Non-Action | 64 |
- ii -
ARTICLE X INDEMNIFICATION | 64 | |||
Section 10.1 Indemnification by Sellers for Company Representations and Warranties and Covenants | 64 | |||
Section 10.2 Indemnification by Sellers for Seller Representations | 64 | |||
Section 10.3 Indemnification by Buyer | 65 | |||
Section 10.4 Survivability; Escrow; Limitations | 65 | |||
Section 10.5 Collateral Agreement and Escrow Agreement | 68 | |||
Section 10.6 Indemnification Procedures | 68 | |||
Section 10.7 Exclusive Remedy | 70 | |||
Section 10.8 Mitigation | 70 | |||
Section 10.9 Waiver of Damages | 70 | |||
Section 10.10 Buyer Acknowledgements | 70 | |||
Section 10.11 Release | 71 | |||
Section 10.12 Exchange Rate | 71 | |||
ARTICLE XI TERMINATION | 71 | |||
Section 11.1 Termination Events | 71 | |||
Section 11.2 Effect of Termination | 72 | |||
ARTICLE XII MISCELLANEOUS | 72 | |||
Section 12.1 Parties in Interest | 72 | |||
Section 12.2 Assignment | 72 | |||
Section 12.3 Notices | 72 | |||
Section 12.4 Amendments and Waivers | 73 | |||
Section 12.5 Exhibits and Disclosure Schedule; Schedule 1 | 73 | |||
Section 12.6 Headings | 74 | |||
Section 12.7 Construction | 74 | |||
Section 12.8 No Other Representations or Warranties | 74 | |||
Section 12.9 Sellers’ Representative | 74 | |||
Section 12.10 Entire Agreement | 75 | |||
Section 12.11 Severability | 75 | |||
Section 12.12 Expenses | 76 | |||
Section 12.13 Currency and Exchange Rates | 76 | |||
Section 12.14 Governing Law | 76 | |||
Section 12.15 Consent to Jurisdiction; Waiver of Jury Trial | 76 | |||
Section 12.16 Specific Performance | 77 | |||
Section 12.17 Counterparts | 77 | |||
Section 12.18 Agent for Service | 77 |
Schedule 1 — Sellers | ||||
Schedule 2 — Closing Net Working Capital and Closing Net Cash Schedule | ||||
Disclosure Schedule |
- iii -
- 2 -
- 3 -
- 4 -
- 5 -
- 6 -
- 7 -
- 8 -
- 9 -
- 10 -
- 11 -
- 12 -
- 13 -
- 14 -
- 15 -
- 16 -
- 17 -
- 18 -
- 19 -
- 20 -
- 21 -
- 22 -
- 23 -
- 24 -
- 25 -
- 26 -
- 27 -
- 28 -
- 29 -
- 30 -
- 31 -
- 32 -
- 33 -
- 34 -
- 35 -
- 36 -
- 37 -
- 38 -
- 39 -
- 40 -
- 41 -
- 42 -
- 43 -
- 44 -
- 45 -
- 46 -
- 47 -
- 48 -
- 49 -
- 50 -
- 51 -
- 52 -
- 53 -
- 54 -
- 55 -
- 56 -
- 57 -
- 58 -
- 59 -
- 60 -
- 61 -
- 62 -
- 63 -
- 64 -
- 65 -
- 66 -
- 67 -
- 68 -
- 69 -
- 70 -
- 71 -
If to the Sellers: | c/o J.F. Lehman & Company 450 Park Avenue New York, NY 10022 USA Attn.: Stephen L. Brooks / Victor C. Caruso Facsimile: +1212 634 1155 |
- 72 -
with copies to (which shall not constitute notice): | ||||
Jones Day 21 Tudor Street London EC4Y OOJ Attn.: Giles Elliott / Vica Irani Facsimile: +44 (0) 20 7039 5999 | ||||
If to Buyer: | Goodrich Corporation Four Coliseum Centre 2730 West Tyvola Road Charlotte, NC 28217 Attn.: Sally Geib, VP, Associate General Counsel Facsimile: +1.704.423.7011 | |||
with a copy to: | Squire, Sanders & Dempsey L.L.P. 4900 Key Tower 127 Public Square Cleveland, OH 44114 Attn.: Gordon S. Kaiser, Jr. Facsimile: +1.216.479.8780 |
- 73 -
- 74 -
- 75 -
- 76 -
- 77 -
- 78 -
AIS GLOBAL HOLDINGS LLC | ||||
By: | /s/ Tig H. Krekel | |||
Name: | Tig H. Krekel | |||
Title: | Chairman | |||
JFL-AIS PARTNERS, LLC | ||||
By: | /s/ Tig H. Krekel | |||
Name: | Tig H. Krekel | |||
Title: | Chairman |
MANAGEMENT SELLERS | ||||||||
/s/ Christopher Holmes | ||||||||
BY | ||||||||
Christopher Holmes | ||||||||
NAME | ||||||||
/s/ Lynn Rinaldi | ||||||||
WITNESS | ||||||||
Executed at: | ||||||||
Cheshire | City | CT | State | |||||
/s/ David Oldham | ||||||||
BY | ||||||||
David Oldham | ||||||||
NAME | ||||||||
/s/ Lynn Rinaldi | ||||||||
WITNESS | ||||||||
Executed at: | ||||||||
Cheshire | City | CT | State | |||||
/s/ Robert L. Nead | ||||||||
BY | ||||||||
Robert L. Nead | ||||||||
NAME | ||||||||
/s/ Lynn Rinaldi | ||||||||
WITNESS | ||||||||
Executed at: | ||||||||
Cheshire | City | CT | State | |||||
GOODRICH CORPORATION | ||||
By: | /s/ Joseph F. Andolino | |||
Name: | Joseph F. Andolino | |||
Title: | Vice President |
Disclosure Schedule
1. | Section 1.1: Disclosure Bundle Index |
2. | Section 3.1: Organization of the Company and the Company Group |
3. | Section 3.2: Noncontravention |
4. | Section 3.3(a): Subsidiaries |
5. | Section 3.3(b): Capitalization |
6. | Section 3.4: Government Authorizations |
7. | Section 3.5: Financial Statements |
8. | Section 3.6: Absence of Certain Changes |
9. | Section 3.7: Tax Matters |
10. | Section 3.8(a): Owned Real Property |
11. | Section 3.8(b): Leased Real Property |
12. | Section 3.8(e): UK Real Property – Contingent Liabilities |
13. | Section 3.9 (a): Intellectual Property |
14. | Section 3.9(b) – (i): Use of Company Intellectual Property |
15. | Section 3.10(a): Environmental Matters |
16. | Section 3.11(a) and (b): Material Contracts |
17. | Section 3.11(c) — (q): Government Material Contracts |
18. | Section 3.12: Insurance |
19. | Section 3.13: Litigation |
20. | Section 3.14(a): US Employee Matters |
21. | Section 3.14(b): UK Employee Matters |
22. | Section 3.14(c): UK Pensions |
23. | Section 3.15: Legal Compliance |
24. | Section 3.16: Permits |
25. | Section 3.17: Export Controls Compliance |
26. | Section 3.18: Brokers’ Fees |
27. | Section 3.19: No Undisclosed Liabilities |
28. | Section 3.20: Title to Tangible Assets |
29. | Section 3.21: Accounts Receivables |
30. | Section 3.22: Affiliate Transactions |
31. | Section 3.23: Bank Accounts; Powers of Attorney |
1
32. | Section 3.24: Books and Records |
33. | Section 3.25: Internal Controls |
34. | Section 3.26: No Gifts or Similar Benefits |
35. | Section 3.27: Asbestos Matters |
36. | Section 3.28: Solvency |
37. | Section 3.29(a): Sufficiency of Assets |
38. | Section 3.29(b): Condition of Assets |
39. | Section 3.30: BAe Benefit; Non-Action |
40. | Section 4.1: SSSL Organization |
41. | Section 4.2: SSSL Equity Interests; SSSL Capitalization |
42. | Section 4.3: SSSL Taxes |
43. | Section 4.4: SSSL Employees |
44. | Section 4.5: SSSL Real Property |
45. | Section 4.6: SSSL Intellectual Property |
46. | Section 5.1: Organization of Sellers |
47. | Section 5.2: Authorization of Sellers |
48. | Section 5.3: Ownership of Interests |
49. | Section 5.4: Noncontravention |
50. | Section 5.5: Brokers’ Fees |
51. | Section 7.1: Conduct of the Company |
52. | Section 7.2: Access to Information and Personnel |
53. | Section 7.9: Inspection and Repair |
54. | Section 9.4(a): US Employee Matters |
2