ASSET PURCHASE AGREEMENT
`ASSET PURCHASE AGREEMENT
`
`DATED AS OF MARCH 12, 2008
`DATED AS OF MARCH 12, 2008
`
`BETWEEN
`BETWEEN
`
`FR ACQUISITION SUB, INC.,
`FR ACQUISITION SUB, INC.,
`
`THE SELLERS
`THE SELLERS
`
`AND
`
`THE HOLDERS OF THE SELLERS
`THE HOLDERS OF THE SELLERS
`SET FORTH ON EXHIBIT A HERETO
`SET FORTH ON EXHIBIT A HERETO
`
`Pet'rs Exhibit 1021
`John Crane v. Finalrod
`IPR2016-00232
`Page0000001
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`Petitioners' Exhibit 1021
`John Crane v. Finalrod
`IPR2016-01827
`Page 1 of 60
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`Table of Contents
`Table of Contents
`
` 1
`ARTICLE I
`Sale and Purchase ............................................................................................ I
`Sale and Purchase (cid:9)
`ARTICLE 1 (cid:9)
`Agreement to Sell and Purchase (cid:9)
` 1
`Agreement to Sen and Purchase ............................................................................ J
`1.1
`1.1 (cid:9)
`Assumption of Liabilities (cid:9)
`2
`Assumption of Liabilities ....................................................................................... 2
`1.2
`1.2 (cid:9)
`Purchase Price (cid:9)
`3
`Purchase Price ........................................................................................................ 3
`1.3
`1.3 (cid:9)
`Adjustment of Purchase Price (cid:9)
`4
`Adjustment of Purchase Price ................................................................................ 4
`1.4
`1.4 (cid:9)
`Net Tangible Assets Adjustment (cid:9)
`6
`Net Tangible Assets Adjustment ........................................................................... 6
`1.5
`1.5 (cid:9)
`Payment of Purchase Price (cid:9)
`8
`Payment of Purchase Price ..................................................................................... 8
`1.6
`1.6 (cid:9)
`Purchase Price Tax Allocation (cid:9)
`8
`Purchase Price Tax Allocation ............................................................................... 8
`1. 7
`1.7 (cid:9)
`Consent of Third Parties (cid:9)
`Consent of Third Parties ........................................................................................ 8
`1.8
`8
`1.8 (cid:9)
`Closing (cid:9)
`Closing ............................................................................................................. 9
`ARTICLE 2
`9
`ARTICLE 2 (cid:9)
`Closing (cid:9)
`9
`Closing ................................................................................................................... 9
`2.1
`2.1 (cid:9)
`Representations and Warranties of Sellers and the Sellers (cid:9)
`9
`Representations and Warranties of Sellers and the Sellers .............................. 9
`ARTICLE 3
`ARTICLE 3 (cid:9)
`Organization and Good Standing (cid:9)
`9
`Organization and Good Standing ........................................................................... 9
`3.1
`3.1 (cid:9)
`Subsidiaries of the Sellers (cid:9)
`Subsidiaries of the Se11ers .................................................................................... I 0
`3.2
` 10
`3.2 (cid:9)
`Authority and Enforceability (cid:9)
` 10
`Authority and Enforceability ............................................................................... 10
`3.3
`3.3 (cid:9)
`No Conflicts; Authorizations (cid:9)
` 10
`No Conflicts; Authorizations ............................................................................... l 0
`3.4
`3.4 (cid:9)
`Financial Statements ............................................................................................ 10
`3.5
`Financial Statements (cid:9)
`10
`3.5 (cid:9)
`Inventory (cid:9)
` 11
`3.6 (cid:9)
`Inventory .............................................................................................................. 11
`3.6
`Accounts Receivable (cid:9)
` 11
`Accounts Receivable ............................................................................................ 11
`3.7
`3.7 (cid:9)
`Taxes (cid:9)
`Taxes .................................................................................................................... ll
`3.8
` 11
`3.8 (cid:9)
`Compliance with Law (cid:9)
`Compliance with Law .......................................................................................... 12
`3.9 (cid:9)
`3.9
`12
`3.10 Authorizations (cid:9)
`3.10 Authorizations ...................................................................................................... 12
` 12
`3.11 Title to Personal Properties (cid:9)
`3 .ll Title to Personal Properties .................................................................................. 13
` 13
`3.12 Condition of Purchased Assets (cid:9)
`3. I 2 Condition of Purchased Assets ............................................................................ 13
` 13
`3.13 Real Property (cid:9)
`13
`3.13 Real Property ....................................................................................................... 13
`3.14 Intellectual Property (cid:9)
`3.14
`Intellectual Property ............................................................................................. 15
` 15
`3.15 Absence of Certain Changes or Events (cid:9)
`3.15 Absence of Certain Changes or Events ................................................................ 16
` 16
`3.16 Contracts (cid:9)
`3.16 Contracts .............................................................................................................. 17
` 17
`Litigation. (cid:9)
` 18
`3.17 Litigation .............................................................................................................. 18
`3.17 (cid:9)
`3.18 Employee Benefits. (cid:9)
` 19
`3.18 Employee Benefits ............................................................................................... 19
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`
`Table of Contents
`Table of Contents
`(continued)
`(continued)
`
`Lug
`
`20
`3.19 Labor and Employment Matters (cid:9)
`3.19 Labor and Employment Matters .......................................................................... 20
`20
`3.20 Employees (cid:9)
`3.20 Employees ............................................................................................................ 20
`21
`3.21 Environmental (cid:9)
`3.21 Environmental. ..................................................................................................... 21
`23
`3.22 Insurance. (cid:9)
`3.22
`Insurance .............................................................................................................. 23
`24
`3.23 Warranties. (cid:9)
`3.23 Warranties ............................................................................................................ 24
`24
`3.24 Suppliers and Customers (cid:9)
`3.24 Suppliers and Customers ...................................................................................... 24
`3.25 Brokers or Finders (cid:9)
`25
`3.25 Brokers or Finders ................................................................................................ 25
`3.26 Transaction with Affiliates (cid:9)
`25
`3.26 Transaction with Affiliates .................................................................................. 25
`25
`3.27 No Illegal Payments (cid:9)
`3.27 No Illegal Payments ............................................................................................. 25
`3.28 Completeness of Disclosure (cid:9)
`25
`3.28 Completeness of Disclosure ........................ : ................ : ....................................... 25
`Representations and Warranties of Buyer (cid:9)
`25
`ARTICLE 4
`Representations and Warranties of Buyer ...................................................... 25
`ARTICLE 4 (cid:9)
`Organization and Good Standing (cid:9)
`26
`4.1 (cid:9)
`4.1
`Organization and Good Standing ......................................................................... 26
`4.2 Authority (cid:9)
`26
`4.2
`Authority .............................................................................................................. 26
`26
`Brokers or Finders (cid:9)
`4.3
`Brokers or Finders ................................................................................................ 26
`4.3 (cid:9)
`Obligations of the Parties (cid:9)
`26
`ARTICLE 5
`Obligations of the Parties ............................................................................... 26
`ARTICLE 5 (cid:9)
`Conduct of Business (cid:9)
`5.1 (cid:9)
`26
`Conduct ofBusiness ............................................................................................ 26
`5.1
`Access to Information and Documents (cid:9)
`27
`5.2
`Access to Information and Documents ................................................................ 27
`5.2 (cid:9)
`5.3 Notice (cid:9)
`27
`5.3
`Notice ................................................................................................. ; ................. 27
`Regulatory and Other Approvals (cid:9)
`28
`5.4
`Regulatory and Other Approvals ......................................................................... 28
`5.4 (cid:9)
`No Solicitation of Transactions (cid:9)
`29
`5.5
`5.5 (cid:9)
`No Solicitation ofT ransactions ........................................................................... 29
`5.6 Noncompetition (cid:9)
`29
`5.6
`Noncompetition .................................................................................................... 29
`5.7 Nonsolicitation (cid:9)
`29
`5.7
`Nonsolicitation ..................................................................................................... 29
`5.8 Nondisparagement (cid:9)
`30
`5.8
`Nondisparagement ............................................................................................... 30
`5.9 (cid:9) Modification of Covenant (cid:9)
`30
`5.9 Modification of Covenant .................................................................................... 30
`5.10 Related Assets (cid:9)
`30
`5.10 Related Assets ...................................................................................................... 30
`5.11 Change of Name (cid:9)
`30
`5.11 Change ofNante .................................................................................................. 30
`5.12 Accounts Receivable (cid:9)
`30
`5.12 Accounts
`5.13 Employees (cid:9)
`31
`5.13 Employees ............................................................................................................ 31
`5.14 Tax Matters (cid:9)
`31
`5.14 Tax Matters .......................................................................................................... 31
`Publicity (cid:9)
` 33
`5.15 (cid:9)
`5.15 Publicity .............................................................................................................. .
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`Table of Contents
`Table of Contents
`(continued)
`(continued)
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`Page
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`5.16 Insurance (cid:9)
`Insurance .............................................................................................................. 3 3
`33
`5.16
`5.17 Inventory (cid:9)
`33
`Inventory .............................................................................................................. 3 3
`5.17
`5.18 Excluded Assets (cid:9)
`Excluded Assets ................................................................................................... 33
`33
`5.18
`5.19 Documentation and Company IP Transfer (cid:9)
`33
`Documentation and Company IP Transfer .......................................................... 33
`5.19
`5.20 Cooperation (cid:9)
`33
`Cooperation .......................................................................................................... 33
`5.20
`Conditions Precedent to Obligations of Buyer (cid:9)
`ARTICLE 6 (cid:9)
`34
`Conditions Precedent to Obligations of Buyer .............................................. 34
`ARTICLE6
`Accuracy of Representations and Warranties (cid:9)
`6.1 (cid:9)
`34
`Accuracy of Representations and Warranties ...................................................... 34
`6.1
`Compliance with Covenants (cid:9)
`6.2
`6.2 (cid:9)
`34
`Compliance vvith Covenants ................................................................................ 34
`6.3 (cid:9)
`No Contrary Order (cid:9)
`34
`No Contrary Order ............................................................................................... 34
`6.3
`6.4 Consents (cid:9)
`34
`Consents ............................................................................................................... 34
`6.4
`6.5 (cid:9)
`Closing Date Indebtedness; Release of Liens (cid:9)
`34
`6.5
`Closing Date Indebtedness; Release of Liens ...................................................... 34
`Employment Agreements (cid:9)
`6.6
`6.6 (cid:9)
`34
`Employment Agreements ..................................................................................... 34
`6.7 (cid:9)
`Opinion of Sellers' Counsel (cid:9)
`34
`Opinion of Sellers' Counsel ................................................................................. 34
`6.7
`Material Adverse Effect (cid:9)
`6.8 (cid:9)
`34
`6.8
`Material Adverse Effect ....................................................................................... 34
`6.9 (cid:9)
`Environmental Compliance (cid:9)
`34
`6.9
`Environmental Compliance ................................................................................. 34
`6.10 Closing (cid:9)
`35
`Closing ................................................................................................................. 35
`6.10
`ARTICLE 7 (cid:9)
`Conditions Precedent to the Obligations of sellers (cid:9)
`35
`ARTICLE 7
`Conditions Precedent to the Obligations of sellers ........................................ 3 5
`7.1 (cid:9)
`Accuracy of Representations and Warranties (cid:9)
`35
`Accuracy of Representations and W arr~ties ....................................................... 3 5
`7.1
`7.2 (cid:9)
`Compliance With Covenants (cid:9)
`35
`7.2
`Compliance With Covenants ............................................................................... 35
`7.3 (cid:9)
`No Contrary Order (cid:9)
`7.3
`36
`No Contrary Order ............................................................................................... 36
`7.4 Consents (cid:9)
`7.4
`36
`Consents ............................................................................................................... 36
`7.5 Closing (cid:9)
`36
`7.5
`Closing ................................................................................................................. 36
`ARTICLE 8 (cid:9)
`Sellers' Representative (cid:9)
`ARTICLE 8
`36
`Sellers' Representative ................................................................................... 36
`8.1 (cid:9)
`Appointment of Sellers' Representative (cid:9)
`36
`8.1
`Appointment of Sellers' Representative .............................................................. 36
`8.2 (cid:9)
`Reliance on Sellers' Representative (cid:9)
`Reliance on Sellers' Representative ..................................................................... 37
`37
`8.2
`ARTICLE 9 (cid:9)
`Indemnification (cid:9)
`37
`ARTICLE9
`Indemnification .............................................................................................. 37
`9.1 (cid:9)
`Indemnification by Sellers (cid:9)
`37
`9.1
`Indemnification by Sellers ................................................................................... 37
`9.2 (cid:9)
`General Indemnification by Buyer (cid:9)
`37
`Genera! Indemnification by Buyer ....................................................................... 37
`9.2
`9.3 (cid:9)
`Survival (cid:9)
`38
`Survival ................................................................................................................ 38
`9.3
`9.4 (cid:9)
`Certain Limitations (cid:9)
`38
`9.4
`Certain Limitations .............................................................................................. 38
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`38
`Indemnification Procedures (cid:9)
`9.5 (cid:9)
`Indemnification Procedures ................................................................................. 38
`9.5
`39
`Set-off for Buyer's Indemnification Claim (cid:9)
`9.6 (cid:9)
`Set-off for Buyer's Indemnification Claim .......................................................... 39
`9.6
`40
`Exceptions to Limitations (cid:9)
`9.7 (cid:9)
`Exceptions to Limitations .................................................................................... 40
`9.7
`40
`Termination (cid:9)
`ARTICLE 10 (cid:9)
`Termination .................................................................................................... 40
`ARTICLE 10
`40
`10.1 Termination of Agreement (cid:9)
`Termination of Agreement ................................................................................... 40
`10.1
`41
`10.2 Effect of Termination
`Effect of Termination ........................................................................................... 41
`10.2
`41
`Miscellaneous (cid:9)
`ARTICLE 11 (cid:9)
`Miscellaneous ................................................................................................ 41
`ARTICLE 11
`11.1 Guaranty (cid:9)
`41
`Guaranty ............................................................................................................... 41
`11.1
`41
`11.2 Notices (cid:9)
`Notices ................................................................................................................. 41
`11.2
`11.3 Schedules and Exhibits (cid:9)
`42
`Schedules and Exhibits ........................................................................................ 42
`11.3
`42
`11.4 Assignment; Successors in Interest (cid:9)
`1 1.4
`Assignment; Successors in Interest.. .................................................................... 42
`42
`11.5 Number; Gender (cid:9)
`Nwnber; Gender ................................................................................................... 42
`11.5
`11.6 Interpretation (cid:9)
`42
`Interpretation ........................................................................................................ 42
`11.6
`43
`11.7 Amendment; Waiver (cid:9)
`Amendment; Waiver ............................................................................................ 43
`11.7
`11.8 Controlling Law (cid:9)
`43
`11.8
`Controlling Law ................................................................................................... 43
`11.9 Mediation (cid:9)
`43
`11.9 Mediation ...................... ~ ...................................................................................... 43
`11.10 Consent to Jurisdiction, Etc (cid:9)
`43
`11.10 Consent to Jurisdiction, Etc ................................................................................. 43
`11.11 Waiver of Jury Trial (cid:9)
`44
`11.11 Waiver of Jury Trial. ............................................................................................ 44
`11.12 Severability (cid:9)
`44
`11.12 Severability ........................................................................................................... 44
`11.13 Counterparts; Effectiveness (cid:9)
`44
`11.13 Counterparts; Effectiveness ................................................................................. 44
`11.14 Enforcement of Certain Rights (cid:9)
`44
`11.14 Enforcement of Certain Rights ............................................................................ 44
`11.15 Waiver (cid:9)
`45
`11.15 Waiver .................................................................................................................. 45
`11.16 Integration (cid:9)
`45
`J 1.16 Integration ............................................................................................................ 4 5
`Defined Terms (cid:9)
`ARTICLE 12 (cid:9)
`45
`ARTICLE 12
`Defined Terms ............................................................................................... 45
`12.1 Certain Definitions (cid:9)
`45
`12.1 Certain Definitions ............................................................................................... 45
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`EXECUTION COPY
`EXECUTION COPY
`
`ASSET PURCHASE AGREEMENT
`ASSET PURCHASE AGREEMENT
`
`THIS ASSET PURCHASE AGREEMENT (this "Agreement"), is dated as of March 12, 2008,
`THIS ASSET PURCHASE AGREEMENT (this "Agreement"), is dated as of March 12, 2008,
`by and between FR Acquisition Sub, Inc., a Delaware corporation and a wholly-owned
`by and between FR Acquisition Sub, Inc., a Delaware corporation and a wholly-o\\ned
`subsidiary of the Parent (as defined below)(the "Buyer"), Upstream Energy Services, Inc., a
`subsidiary of the Parent (as defmed below)(the ''Buyer"), Upstream Energy Services, Inc., a
`Delaware corporation and a wholly-owned subsidiary of Smiths Specialty Engineering Group
`Delaware corporation and a wholly-owned subsidiary of Smiths Specialty Engineering Group
`Limited (the -Parent"), The Fiber Composite Company, Inc., d/b/a, Fiberod, Inc., a Texas
`Limited {the "Parent"), The Fiber Composite Company, Inc., d/b/a, Fiberod, Inc., a Texas
`corporation, FC Patent, Ltd., a Texas limited partnership; Fiberod Industries, LLC, a Texas
`corporation. FC Patent, Ltd., a Texas limited partnership; Fiberod Industries, LLC, a Texas
`limited liability corporation, and Fiberod Inc., a Texas corporation (each, a "Seller" and together,
`limited liability corporation, and Fiberod Inc., a Texas corporation {each, a "Seller" and together,
`the "Sellers") and the individuals set forth on Exhibit A hereto (the "Holders"). The Buyer and
`the "Sellers'') and the individuals set forth on Exhibit A hereto {the "Holders"). The Buyer and
`the Sellers are sometimes individually referred to herein as a "Party" and collectively as the
`the SeiJers are sometimes individually referred to herein as a ''Party" and collectively as the
`'Parties".
`"Parties".
`
`WHEREAS, the Sellers desire to sell the Purchased Assets and transfer the Assumed
`WHEREAS, the Sellers desire to sell the Purchased Assets and transfer the Assumed
`Liabilities to the Buyer and the Buyer desires to purchase the Purchased Assets and assume the
`Liabilities to the Buyer and the Buyer desires to purchase the Purchased Assets and assume the
`Assumed Liabilities from the Sellers upon the terms and subject to the conditions set forth in this
`Assumed Liabilities from the Sellers upon the terms and subject to the conditions set forth in this
`Agreement.
`Agreement.
`WHEREAS, the Holders own a majority of the outstanding capital stock of the Sellers
`WHEREAS, the Holders own a majority of the outstanding capital stock of the Sellers
`and are entering into this Agreement in order to give to Buyer, among other things, the benefit of
`and are entering into this Agreement in order to give to Buyer, among other things, the benefit of
`certain representation, warranties, covenants and contractual rights of indemnification upon
`certain representation, warranties, covenants and contractual rights of indemnification upon
`which the Buyer is relying in consummating the transactions described herein.
`which the Buyer is relying in consummating the transactions described herein.
`NOW, THEREFORE, in consideration of the foregoing premises and the respective
`NOW, THEREFORE, in consideration of the foregoing premises and the respective
`representations and warranties, covenants and agreements contained herein, the Parties hereto
`representations and warranties, covenants and agreements contained herein, the Parties hereto
`agree as follows:
`agree as follows:
`
`ARTICLE 1
`ARTICLE 1
`
`SALE AND PURCHASE.
`SALE A.l\JD PURCHASE.
`
`1.1
`1.1 (cid:9)
`
`Agreement to Sell and Purchase.
`Agreement to Sell and Purchase.
`
`1.1.1 At the Closing, Sellers shall grant, sell, convey, assign, transfer and
`1.1.1 At the Closing, Sellers shall grant, sell, convey, assign, transfer and
`deliver to Buyer, and Buyer shall purchase from Sellers, all right, title and interest of Sellers in
`deliver to Buyer, and Buyer shall purchase from Sellers, all right, title and interest of Sellers in
`and to all of the assets, properties, and rights of every kind, and description, real, personal and
`and to all of the assets, properties, and rights of every kind, and description. real, personal and
`mixed. tangible and intangible, wherever situated, constituting or used in connection with the
`mixed. tangible and intangible, wherever situated, constituting or used in connection with the
`Business on the Closing Date other than the Excluded Assets (collectively, the "Purchased
`Business on the Closing Date other than the Excluded Assets (collectively, the "Purchased
`Assets"). free and clear of all Encumbrances, including the following:
`Assets"), free and clear of aJI Encumbrances, including the follo'Wing:
`
`(a)
`{a)
`
`all Accounts Receivable and prepaid expenses;
`all Accounts Receivable and prepaid expenses;
`
`(b)
`all machinery, equipment, Inventory, work-in-process, office
`(b)
`all machinery, equipment, Inventory, work-in-process, office
`furniture, fixtures, automobiles, leasehold improvements, computers, tools, manufacturing,
`furniture, fixtures, automobiles, leasehold improvements, computers, tools, manufacturing,
`warehouse and office supplies and stationary;
`warehouse and office supplies and stationary;
`
`all information, files, books records, data, plans and recorded
`(c)
`all information, files, books records, data, plans and recorded
`(c)
`knowledge, including without limitation customer and supplier lists;
`knowledge, including without limitation customer and supplier lists;
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`(d)
`(d)
`
`all Confidential Information;
`all Confidential Information;
`
`all insurance, insurance proceeds and rights to receive insurance
`(e)
`all insurance, insurance proceeds and rights to receive insurance
`(e)
`proceeds, to the extent that the same relate to periods, events, conditions or other matters existing
`proceeds, to the extent that the same relate to periods, events, conditions or other matters existing
`or occurring prior to the Closing Date;
`or occurring prior to the Closing Date;
`
`(f)
`(f)
`
`all Company IP, including the name "Fiberod" and all similar
`all Company IP, including the name "Fiberod" and all similar
`
`names;
`names;
`
`Business;
`Business;
`
`(g)
`(g)
`
`all telephone numbers and facsimile numbers currently used in the
`all telephone numbers and facsimile numbers currently used in the
`
`all rights under any permits from any Governmental or Regulatory
`(h)
`all rights under any permits from any Governmental or Regulatory
`(h)
`Entity that have been issued or applied for;
`Entity that have been issued or applied for;
`
`all information, files, books, records, data, plans and recorded
`all information, files, books, records, data, plans and recorded
`(i)
`knowledge, with respect to customers, suppliers, employees and other aspects of the Business;
`knowledge, with respect to customers, suppliers, employees and other aspects of the Business;
`
`G)
`all rights under any Contracts (the "Assumed Contracts"
`(j)
`all
`rights under any Contracts (the "Assumed Contracts"),
`including those listed on Schedule 1.1.1(j);
`including those listed on Schedule 1 .1.1 (j );
`
`(k)
`(k)
`
`all Owned Real Property;
`aU Owned Real Property; and
`
`(l)
`(I)
`
`the business and operations of Sellers as a going concern.
`the business and operations of Sellers as a going concern.
`
`1.1.2 Notwithstanding the foregoing, the Purchased Assets shall not include an
`1.1.2 Not\\<ithstanding the foregoing, the Purchased Assets shall not include any
`of the following (the "Excluded Assets"):
`of the following (the "Excluded Assets"):
`
`(a)
`(a)
`
`all cash and cash equivalents of Seller;
`all cash and cash equivalents of Seller;
`
`(b)
`the corporate seals, Charter Documents, minute books, stock
`the corporate seals, Charter Documents, minute books, stock
`(b)
`books, Tax Returns. books of account or other records having to do with the formation of Sellers;
`books, Tax Returns. books of account or other records having to do with the formation of Sellers;
`
`(c)
`(c)
`
`all bank accounts of Sellers;
`all bank accounts of Sellers;
`
`(d)
`(d)
`under this Agreement; or
`under this Agreement; or
`
`(e)
`(e)
`related to the Business.
`related to the Business.
`
`the rights that accrue or will accrue to Sellers and the Holders
`the rights that accrue or will accrue to Sellers and the Holders
`
`the assets specified in Schedule 1.1.2(e) hereto, which are not
`the assets specified m Schedule 1.1.2{e) hereto, which are not
`
`1.2 (cid:9)
`1.2
`
`Assumption of Liabilities.
`Assumption of Liabilities.
`
`1.2.1 At the Closing, Buyer shall assume and agree to pay, discharge or
`1.2.1 At the Closing, Buyer shaH assume and agree to pay, discharge or
`perform, as applicable, only the following Liabilities of Sellers (the "Assumed Liabilities"):
`perform, as applicable. only the following Liabilities of Sellers (the
`
`(a) (cid:9)
`all trade payables relating to the Business accrued or reserved for
`trade payables relating to the Business accrued or reserved for
`(a)
`on the Balance Sheet or arising in the ordinary course of business since the date of the Balance
`on the Balance Sheet or arising in the ordinary course of business since the date of the Balance
`Sheet;
`
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`
`Page0000007
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`Page 7 of 60
`
`(cid:9)
`

`
`(b)
`(b)
`Assumed Contracts; and
`Assumed Contracts; and
`
`the post-Closing executory obligations of Sellers in respect of the
`the post-Closing executory obligations of Sellers in respect of the
`
`(c)
`(c)
`
`accruals for vacation and sick leave in an amount up to $150.000.
`accruals for vacation and sick leave in an amount up to $150.000.
`
`1.2.2 The Excluded Liabilities shall remain the sole responsibility of and shall
`1.2.2 The Excluded Liabilities shall remain the sole responsibility of and shall
`be retained, paid, performed and discharged by Sellers and the Holders, as applicable. The
`be retained, paid, performed and discharged by Sellers and the Holders, as applicable. The
`"Excluded Liabilities" shall mean every Liability of Sellers other than the Assumed Liabilities,
`··Excluded Liabilities" shall mean every Liability of Sellers other than the Assumed Liabilities,
`including any and all of the following:
`including any and all of the following:
`
`any Liability under any Contract relating to the period prior to the
`any Liability under any Contract relating to the period prior to the
`(a)
`(a)
`Closing Date except as provided in Section 1.2.1(a);
`Closing Date except as provided in Section 1.2.1 (a);
`
`
`any Tax payable with respect to the Business or the Purchased any Tax payable vvith respect to the Business or the Purchased
`(b)
`(b)
`Assets with respect to any period or portion thereof ending on or before the Closing Date
`Assets vvith respect to any period or portion thereof ending on or before the Closing Date
`(including the portion of a taxable year beginning before and ending after the Closing Date);
`(including the portion of a taxable year beginning before and ending after the Closing Date)~
`
`any Liabilities arising prior to the Closing Date or as a result of the
`(c)
`any Liabilities arising prior to the Closing Date or as a result of the
`(c)
`Closing for severance, bonuses or any other form of compensation to any employees;
`Closing for severance, bonuses or any other form of compensation to any employees;
`
`any Liabilities arising out of any default by Sellers of any
`(d)
`any Liabilities arising out of any default by Sellers of any
`(d)
`provision of any Contract occurring on or prior to the Closing;
`provision of any Contract occurring on or prior to the Closing;
`
`(e)
`(e)
`
`any Pre-Closing Environmental Liability;
`any Pre-Closing Environmental Liability;
`
`any product Liability or similar claim for injury to any Person or
`any product Liability or similar claim for injury to any Person or
`(f)
`(f)
`property, regardless of when made or asserted, that arises out of or is based upon any express or
`property, regardless of when made or asserted, that arises out of or is based upon any express or
`implied representation, warranty, agreement or guarantee made by Sellers on or prior to the
`implied representation, warranty, agreement or guarantee made by Sellers on or prior to the
`Closing, or that is imposed by operation of law in connection with any service performed or
`Closing, or that is imposed by operation of law in connection with any service performed or
`product sold or leased by or on behalf of Sellers on or prior to the Closing;
`product sold or leased by or on behalf of Sellers on or prior to the Closing;
`
`(g)
`(g)
`
`any Liabilities under any Benefit Plan;
`any Liabilities unde