ARTICLE I DEFINITIONS | 1 | |||
ARTICLE II THE ACQUISITION AND THE PURCHASE AND SALE OF THE SHEFFIELD ASSETS AND THE ICX ASSETS | 15 | |||
2.1 Sale and Purchase of Shares and the ICX Assets | 15 | |||
2.2 [Reserved.] | 15 | |||
2.3 [Reserved.] | 15 | |||
2.4 [Reserved.] | 15 | |||
2.5 [Reserved.] | 15 | |||
2.6 Delivery of Shares, ICX Bill of Sale and Purchase Price | 15 | |||
2.7 [Reserved.] | 15 | |||
2.8 [Reserved.] | 15 | |||
2.9 Purchase of Sheffield Assets | 15 | |||
2.10 Purchase Price Adjustment | 20 | |||
2.11 Offset | 21 | |||
2.12 Withholding Rights | 21 | |||
ARTICLE III CLOSING AND DELIVERIES | 22 | |||
3.1 Closing | 22 | |||
3.2 Further Assurances | 22 | |||
3.3 Transfer Taxes | 22 | |||
3.4 Deliveries by Timken | 22 | |||
3.5 Deliveries by Buyer | 24 | |||
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF TIMKEN | 25 | |||
4.1 Organization and Standing | 25 | |||
4.2 Authorization; Power | 25 | |||
4.3 Organizational Documents | 26 | |||
4.4 Capitalization | 26 | |||
4.5 Title | 27 | |||
4.6 Subsidiaries and Investments | 27 | |||
4.7 Delivery; No Conflict; Consents | 27 | |||
4.8 Financial Statements | 28 | |||
4.9 Tax Matters | 29 |
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4.10 Personal Property Assets | 30 | |||
4.11 Contracts | 31 | |||
4.12 Real Property | 33 | |||
4.13 Personal Property Leases | 35 | |||
4.14 Absence of Undisclosed Liabilities | 35 | |||
4.15 Absence of Changes | 35 | |||
4.16 Employment Matters | 38 | |||
4.17 Employee Benefits | 39 | |||
4.18 Litigation and Disputes | 42 | |||
4.19 Transactions with Affiliates | 43 | |||
4.20 Compliance with Laws; Permits | 43 | |||
4.21 Environmental Matters | 44 | |||
4.22 Insurance | 45 | |||
4.23 Bank Accounts; Powers of Attorney | 45 | |||
4.24 Customers and Suppliers | 46 | |||
4.25 Intellectual Property | 46 | |||
4.26 Inventory | 47 | |||
4.27 Books and Records | 47 | |||
4.28 Certain Business Practices | 47 | |||
4.29 [Reserved.] | 47 | |||
4.30 No Brokers | 48 | |||
4.31 Accounts and Notes Receivable | 48 | |||
4.32 Accounts and Notes Payable | 48 | |||
ARTICLE V REPRESENTATIONS AND WARRANTIES OF TIMKEN ALLOY | 48 | |||
5.1 Organization and Standing | 48 | |||
5.2 Authorization; Power | 48 | |||
5.3 Organizational Documents | 49 | |||
5.4 Title | 49 | |||
5.5 Delivery; No Conflict; Consents | 49 | |||
5.6 Employment Matters | 49 | |||
5.7 Contracts | 51 | |||
5.8 Litigation and Disputes | 51 | |||
5.9 Customers and Suppliers | 52 |
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5.10 Inventory | 52 | |||
5.11 Tax Matters | 52 | |||
ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER | 53 | |||
6.1 Investment Intent | 53 | |||
6.2 Organization and Standing; Power | 53 | |||
6.3 Authorization, Validity and Effect; Consents | 53 | |||
6.4 Legal Proceedings | 53 | |||
6.5 No Brokers | 53 | |||
6.6 Buyer’s Debt Financing | 54 | |||
6.7 Buyer’s Equity Financing | 54 | |||
6.8 Solvency | 54 | |||
6.9 No Other Representations and Warranties | 54 | |||
6.10 HSR Act | 54 | |||
ARTICLE VII COVENANTS AND AGREEMENTS | 54 | |||
7.1 Interim Operations of the Company and Timken Alloy | 54 | |||
7.2 Access to Information; Delivery of Financial Statements | 58 | |||
7.3 Cooperation; HSR Act Filings; Other Approvals, Filings and Consents | 59 | |||
7.4 Publicity | 60 | |||
7.5 Notice of Certain Events | 60 | |||
7.6 Tax Matters | 61 | |||
7.7 No Solicitation of Other Proposals | 65 | |||
7.8 Timken Brand | 66 | |||
7.9 Employee Arrangements | 67 | |||
7.10 Litigation Cooperation | 69 | |||
7.11 Buyer Financing | 70 | |||
7.12 Affiliate Obligations | 70 | |||
7.13 Certain Indebtedness | 70 | |||
7.14 Cooperation | 70 | |||
7.15 No Further Financial Obligations | 71 | |||
7.16 Sheetz Station Agreement | 71 | |||
7.17 TADB Employees | 71 | |||
7.18 Certain Transactions | 72 | |||
7.19 Subsequent Merger | 73 |
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ARTICLE VIII CONDITIONS TO CLOSING | 73 | |||
8.1 Conditions to Obligations of Timken and Buyer | 73 | |||
8.2 Additional Conditions to Obligation of Timken | 73 | |||
8.3 Additional Conditions to Obligation of Buyer | 74 | |||
ARTICLE IX INDEMNIFICATION AND SURVIVAL | 75 | |||
9.1 Certain Definitions | 75 | |||
9.2 Indemnification | 76 | |||
9.3 Limitations | 79 | |||
9.4 Assertion of Claims | 82 | |||
9.5 Defense of Third Party Claims | 82 | |||
9.6 Exclusive Remedy | 83 | |||
9.7 Survival of Representations, Warranties and Covenants | 84 | |||
9.8 Environmental Claims | 84 | |||
9.9 Insurance | 85 | |||
ARTICLE X TERMINATION OF AGREEMENT | 85 | |||
10.1 Termination | 85 | |||
10.2 Effect of Termination | 86 | |||
ARTICLE XI MISCELLANEOUS AND GENERAL | 86 | |||
11.1 Expenses | 86 | |||
11.2 Successors and Assigns | 87 | |||
11.3 Notices | 87 | |||
11.4 Complete Agreement | 88 | |||
11.5 Captions; References | 88 | |||
11.6 Amendment | 88 | |||
11.7 Waiver | 88 | |||
11.8 Governing Law | 88 | |||
11.9 Severability | 88 | |||
11.10 Mutual Drafting | 89 | |||
11.11 Consent to Jurisdiction and Service of Process | 89 | |||
11.12 Counterparts | 89 | |||
11.13 Specific Performance | 89 | |||
11.14 Waiver of Jury Trial | 89 |
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Acquisition Proposal, 1, 68
Acquisition Sub, 1
Actions, 1
Additional Sheffield Information, 2
Affiliate, 2
Agreement, 1, 2
Antitrust Laws, 2, 62
Assumed Plan, 2, 70
Back-Up Letter of Credit, 73
Bank Accounts, 2, 48
Business Day, 2
Buyer, 1, 2
Buyer Book Value Determination, 2, 18
Buyer Event of Indemnification, 2, 81
Buyer Indemnified Persons, 2, 78
Buyer Indemnifying Persons, 81
Buyer Pension Plan, 3, 69
Buyer Tax Act, 3, 80
Buyer’s Knowledge, 2
Buyer’s Welfare Plans, 3, 71
CBA, 3, 70
CERCLA, 3, 5
Closing, 3, 24
Closing Date, 3, 24
Closing Working Capital Statement, 3, 22
COBRA Coverage, 3, 43
Code, 3
Company, 1, 3
Company Assets, 3, 33
Company Employee Plans, 3, 42
CompanyIP, 3
Company Purchase Price, 3
Company Representatives, 3, 68
Confidentiality Agreement, 3, 60
Consents, 4
Consolidated Tax Returns, 4, 63
Contracts, 4, 33
Control, 4
Copyrights, 4
Current Assets, 4
Current Liabilities, 4
Data, 4, 49
Debt Commitment Letters, 4, 56
Deductible Amount, 4, 82
Deferred Closing, 4
Deferred Closing, 17
Deferred Closing Book Value, 4
Deferred Closing Date, 4
Disclosure Schedule, 5
Effective Date, 5, 24
Employee Plans, 5, 42
Environment, 5
Environmental Laws, 5
Environmental Permit, 5
Environmental Subcap, 5, 83
Equity Commitment Letters, 5, 56
ERISA, 5
ERISA Affiliate, 5
Estimated Deferred Closing Book Value, 18
Estimated Working Capital, 6, 22
Event of Indemnification, 6, 78
Excluded Representations, 6, 82
Final Book Value, 6, 18
Final Working Capital, 6, 23
Financial Statements, 6, 30
GAAP, 6
General Enforceability Exceptions, 6, 35
Governmental Authority, 6
Guarantees, 6, 73
Hazardous Substance, 6
HSR Act, 6
ICX Asset Purchase Price, 6
ICX Asset Sale, 6
ICX Assets, 7
ICX Bill of Sale, 7, 26
ICX Lease, 7
Income Tax Returns, 7, 64
Indebtedness, 7
Indemnified Persons, 7, 78
Indemnifying Person, 7, 78
Independent Auditor, 7, 22
Intellectual Property, 7
Interim Balance Sheet, 7, 30
Interim Balance Sheet Date, 7, 37
Interim Financial Statements, 7, 30
Investments, 7
IRS, 8, 14
KeyBanc Capital Markets, 8, 50
Knowledge, 8
Latrobe Hourly Plan, 8, 70
Latrobe VIP, 8, 70
Laws, 8
Leased Personal Property, 8, 37
Leased Real Property, 8
Lenders, 8
Letters of Credit, 8, 73
Liability, 8
License Agreement, 8, 34
Lien, 8
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Major Customer, 9
Major Supplier, 9
Material Adverse Effect, 9
Mezzanine Commitment Letter, 56
Names, 9, 69
Non-Competition Agreement, 9, 26
Non-Union Employees, 9
Notice of Claim, 9, 84
OH&R, 9
Option, 9
Orders, 9
Outside Date, 88
Owned Real Property, 9
Patents, 9
Permits, 10
Permitted Liens, 10
Person, 10
Personal Property Leases, 10, 37
Pre-Closing Financial Statements, 10, 61
Pre-Closing Workers Compensation Claims, 75
Prior Actions, 11, 45
Product Liability Subcap, 11, 83
Purchase Price, 11
Real Property, 11
Real Property Leases, 11, 35
Reimbursement Cap, 75
Related Agreements, 11
Release, 11
Release and Waiver Agreement, 11, 26
Required Consents, 11, 25
Retiring Non-Union Employees, 11, 69
Section 338 Allocation, 67
Section 338 Forms, 67
Section 338(h)(10) Election, 67
Seller Welfare Plans, 11, 71
Senior Debt Commitment Letter, 11, 56
Service Contracts, 12, 35
Shares, 1, 12
Sheetz Station Agreement, 12
Sheffield Asset Purchase Agreement, 12, 21
Sheffield Assets, 12
Sheffield Consignment Agreements, 12
Sheffield Information, 12
Sheffield Inventory, 12
Sheffield Lease, 12
Sheffield Purchase Orders, 12
Sheffield Purchase Price, 12
Sheffield Shortfall Amount, 12, 18
Sheffield Transaction, 12, 63
Software, 13
Straddle Period, 13, 64
Straddle Period Tax Returns, 13, 64
Subsidiaries, 13
Subsidiary Shares, 13, 29
Supply Agreements, 13, 26
Surplus Employees, 13
Survey, 13
Survival Date, 13, 86
TADB Employees, 13, 52
Tax Adjustment, 13, 68
Tax or Taxes, 13
Tax Proceeding, 14, 66
Tax Returns, 14
Termination Costs, 14
Third Party Claim, 14, 85
Timken, 1, 14
TimkenIndemnified Persons, 15
Timken Alloy, 1, 14
TimkenAlloy Agreements, 14, 51
TimkenAlloy Distribution Business, 14
Timken Cap, 14, 83
Timken Event of Indemnification, 14, 79
Timken Indemnified Persons, 78
Timken Indemnifying Persons, 15, 79
Title Commitment, 15
Title Company, 15
Title Policy, 15
Top Customer, 15
Top Supplier, 15
Trade Secrets, 15
Trademarks, 15
Transactions Costs, 15
Transfer Date, 15
Transfer Regulations, 16
Transfer Taxes, 16, 24
Transferring Employees, 16, 74
Transition Services Agreement, 16, 26
Union Employees, 16
VAT, 16, 20
VAT Records, 16, 20
WARN Act, 16
Working Capital, 16
Working Capital Target, 16
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Schedule 1.19 | Buyer’s Knowledge | |
Schedule 1.79 | Indebtedness | |
Schedule 1.90 | List of Knowledge Individuals | |
Schedule 1.95 | Leased Real Property | |
Schedule 1.113 | Owned Real Property | |
Schedule 1.142 | Sheffield Consignment Agreements | |
Schedule 3.4(i) | Consents | |
Schedule 6.6 | Debt Commitment Letters | |
Schedule 6.7 | Equity Commitment Letters | |
Schedule 7.1 | Interim Operations | |
Schedule 7.2(b) | Customer, Supplier and Licensor Contacts | |
Schedule 7.9(b)(i) | Assumed Plans | |
Schedule 7.12 | Affiliate Obligations | |
Schedule 7.13 | Certain Indebtedness | |
Schedule 7.15 | Guarantees and Letters of Credit | |
Schedule 9.1(d) | Losses | |
Schedule 9.2(a)(vii) | Identified Litigation | |
Schedule 9.2(a)(viii) | Known Environmental Matters |
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Section 4.1 | Organization and Standing | |
Section 4.3 | Directors and Officers | |
Section 4.4(a) | Capitalization | |
Section 4.4(c) | Capitalization | |
Section 4.6 | Subsidiaries and Investments | |
Section 4.7(a) | No Conflict | |
Section 4.7(b) | Consents | |
Section 4.8(d) | Working Capital Example | |
Section 4.9 | Tax Matters | |
Section 4.10 | Personal Property Assets | |
Section 4.11 | Contracts | |
Section 4.12(a) | Real Property | |
Section 4.12(d) | Real Property | |
Section 4.12(g) | Real Property | |
Section 4.12(h) | Real Property | |
Section 4.12(i) | Real Property | |
Section 4.12(k) | Real Property | |
Section 4.13 | Personal Property Leases | |
Section 4.14 | Absence of Undisclosed Liabilities | |
Section 4.15 | Absence of Changes | |
Section 4.16 | Employment Matters | |
Section 4.17(a) | Employee Benefits | |
Section 4.17(b) | Employee Benefits | |
Section 4.17(d) | Employee Benefits | |
Section 4.17(e) | Employee Benefits | |
Section 4.18 | Litigation and Disputes | |
Section 4.19 | Transactions with Affiliates | |
Section 4.20 | Compliance with Laws; Permits | |
Section 4.21 | Environmental Matters | |
Section 4.22 | Insurance | |
Section 4.23 | Bank Accounts; Powers of Attorney | |
Section 4.24 | Customers and Suppliers | |
Section 4.25(a) | Intellectual Property | |
Section 4.25(b) | Intellectual Property | |
Section 4.25(d) | Data | |
Section 4.26 | Inventory | |
Section 4.31 | Accounts and Notes Receivable | |
Section 5.3 | Organizational Documents of Timken Alloy | |
Section 5.5(a) | Delivery; No Conflicts; Consents of Timken Alloy | |
Section 5.5(b) | Delivery; No Conflicts; Consents of Timken Alloy | |
Section 5.6 | Employment Matters | |
Section 5.7 | Contracts | |
Section 5.8 | Litigation and Disputes | |
Section 5.9 | Customers and Suppliers of Timken Alloy | |
Section 6.3 | Authorization; Validity and Effect; Consents |
Exhibit A | [Reserved] | |
Exhibit B | Form of Opinion of Jones Day | |
Exhibit C-1 | Form of Supply Agreement re: Aerospace Material | |
Exhibit C-2 | Form of Supply Agreement re: Steel Material and Conversion | |
Exhibit C-3 | Form of Supply Agreement re: Rolling Mill Services | |
Exhibit D | Form of Transition Services Agreement | |
Exhibit E | Form of Non-Competition Agreement | |
Exhibit F | Form of Release and Waiver Agreement | |
Exhibit G | Title Commitments | |
Exhibit H | Surveys | |
Exhibit I | Form of Sheffield Lease | |
Exhibit J | Form of Sheffield Asset Purchase Agreement | |
Exhibit K | ICX Bill of Sale | |
Exhibit L | [Reserved] | |
Exhibit M | Form of Subordination Agreement |
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THE PURCHASE AND SALE OF THE SHEFFIELD ASSETS AND THE ICX ASSETS
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Section 2.9(i).
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One Cranberry Hill
750 Marrett Road, Suite 401
Lexington, MA 02421
Fax: (781) 891-9712
Attn: Steven E. Karol
One Financial Center
Boston, MA 02111
Fax: (617) 542-2241
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1835 Dueber Avenue, S.W.
Mail Code: GNE-14
Canton, OH 44706
Attn: Senior Vice President and General Counsel
Fax: (330) 471-4041
North Point
901 Lakeside Avenue
Cleveland, OH 44114
Attn: Lyle G. Ganske
Patrick J. Leddy
Fax: (216) 579-0212
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THE TIMKEN COMPANY | ||||||
By: | /s/ Glenn A. Eisenberg | |||||
Name: Glenn A. Eisenberg | ||||||
Title: Executive Vice President – Finance and | ||||||
Administration | ||||||
LATROBE STEEL COMPANY | ||||||
By: | /s/ Hans J. Sack | |||||
Name: Hans J. Sack | ||||||
Title: President | ||||||
For and on behalf of | ||||||
TIMKEN ALLOY STEEL EUROPE LIMITED | ||||||
/s/ Glenn A. Eisenberg | ||||||
Name: Glenn A. Eisenberg | ||||||
Title: Director | ||||||
TOOLROCK HOLDING, INC. | ||||||
By: | /s/ Stephen Kotler | |||||
Name: Stephen J. Kotler | ||||||
Title: Vice President and Treasurer | ||||||
TOOLROCK ACQUISITION LLC | ||||||
By: | /s/ Stephen Kotler | |||||
Name: Stephen J. Kotler | ||||||
Title: Vice President & Treasurer |