Exhibit 2.1(a) |
AGREEMENT FOR THE SALE AND PURCHASE OF VENICE TOPCO LIMITED |
DATED 2 AUGUST 2013 |
THE INSTITUTIONAL SELLER AND THE SENIOR MANAGEMENT SELLERS AND THE OTHER SELLERS AND THE MANAGERS AND THE PURCHASER AND THE GUARANTOR |
1. | Definitions and Interpretation | 1 | ||
2. | Sale and Purchase | 11 | ||
3. | Consideration | 11 | ||
4. | Escrow Account and Conduct of Claims | 11 | ||
5. | Condition Precedent | 14 | ||
6. | Pre-Completion Undertakings | 15 | ||
7. | Completion | 19 | ||
8. | Post Completion | 20 | ||
9. | Warranties and Undertakings | 22 | ||
10. | Purchaser's Warranties and Undertakings | 23 | ||
11. | Guarantor's Warranties and Undertakings | 25 | ||
12. | Guarantee | 26 | ||
13. | Announcements and Confidentiality | 27 | ||
14. | Notices | 29 | ||
15. | Further Assurances | 31 | ||
16. | Post Completion Undertakings | 32 | ||
17. | Assignments | 33 | ||
18. | Payments | 33 | ||
19. | General | 34 | ||
20. | Whole Agreement | 36 | ||
21. | Institutional Seller Representative | 37 | ||
22. | Senior Management Representative | 37 | ||
23. | Governing Law and Jurisdiction | 38 |
1. | The Sellers | 38 | ||
Part 1 | The Institutional Seller | 38 | ||
Part 2 | The Senior Management Sellers | 39 | ||
Part 3 | Managers | 40 | ||
Part 4 | The Other Sellers | 41 | ||
2. | Company Details | 42 | ||
3. | Completion | 43 | ||
Part 1 | Sellers' Obligations | 43 | ||
Part 2 | Purchaser's Obligations | 44 | ||
4. | Limitations on Claims | 45 | ||
5. | Basis of Preparation of Completion Statement and Final Completion Statement | 48 | ||
6. | Pro Forma Completion Statement | 51 | ||
7. | Pro Forma Final Completion Statement | 52 | ||
8. | Independent Accountants | 54 | ||
Signatories | 56 |
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(1) | HSBC INVESTMENT BANK HOLDINGS PLC whose address is set out in Part 1 of Schedule 1 (The Sellers) (the Institutional Seller); |
(2) | THE PERSONS whose names and addresses are set out in Part 2 of Schedule 1 (The Sellers) (each a Senior Management Seller and together the Senior Management Sellers); |
(3) | THE PERSONS whose names and addresses are set out in Part 3 of Schedule 1 (The Sellers) (each a Manager and together the Managers); |
(4) | THE PERSONS whose names and addresses are set out in Part 4 of Schedule 1 (The Sellers) (each an Other Seller and together the Other Sellers, and together with the Institutional Seller and the Senior Management Sellers, the Sellers, and Seller shall be construed accordingly); |
(5) | ACTUANT ACQUISITIONS LIMITED (registered number 07633576) whose address is Unit 601 Axcess 10 Business Park, Bentley Road South, Darlaston, West Midlands WS10 8LQ, United Kingdom (the Purchaser); and |
(6) | ACTUANT CORPORATION whose address is N86 W12500 Westbrook Crossing, Menomonee Falls, Wisconsin 53051, United States (the Guarantor). |
(A) | The Sellers together own the entire issued share capital of Venice Topco Limited (the Company). Details of the Company are contained in Schedule 2 (Company Details). |
(B) | The Sellers wish to sell and the Purchaser wishes to purchase all the issued share capital of the Company free from any Encumbrances on the terms, and subject to the conditions, set out in this agreement. |
(C) | The Guarantor is the ultimate holding company of the Purchaser and wishes to guarantee all of the obligations of the Purchaser arising pursuant to this agreement. |
1. | DEFINITIONS AND INTERPRETATION |
1.1 | Definitions |
(a) | a nominee – the beneficial owner in respect of which the nominee is holding Shares or another nominee of the same beneficial owner; |
(b) | a corporation – its subsidiaries, its holding company and any other subsidiaries of that holding company; |
(c) | a fund managed professionally for investment purposes or any person managing the investments of such a fund and/or: |
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(i) | any other person or persons managing the investments of such funds or which are within the same wholly owned group as any person managing the investments of such funds or is or are a nominee or trustee for any of such persons; |
(ii) | a nominee holding assets for such fund; or |
(iii) | another fund which is controlled or managed by the same fund manager or by another member of the same wholly owned group as such fund manager or any nominee holding assets for any such other fund; |
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(a) | £42,000,000 15% subordinated redeemable loan notes due 2019 of Venice Fundco Limited issued to the Institutional Seller; and |
(b) | £3,500,000 loan agreement dated 15 November 2010 between, amongst others, the Institutional Seller as lender and Venice Fundco Limited as borrower; |
(a) | changes in stock markets, interest rates, exchange rates, commodity prices or other general economic conditions save where such changes have or are reasonably expected to have a disproportionate adverse effect on the Group taken as a whole; |
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(b) | changes in conditions generally affecting the oil services industry save where such changes have or are reasonably expected to have a disproportionate adverse effect on the Group taken as a whole; |
(c) | war or political unrest in any country or region save where such event has or is reasonably expected to have a disproportionate adverse effect on the Group taken as a whole; |
(d) | changes in laws or regulations save where such changes have or are reasonably expected to have a disproportionate adverse effect on the Group taken as a whole; or |
(e) | the disclosure of the identity of the Purchaser; |
(a) | any unpaid vendor's or supplier's lien arising in the ordinary course of the Business in order to secure amounts which are due for goods or services sold or supplied; and |
(b) | liens arising by operation of law, including a banker's lien; |
(a) | if the relevant day is a Business Day: |
(i) | the rate for deposits in £ for a period of three months which appears on Reuters Page "LIBOR01" as at 11am London time; or |
(ii) | the London Inter Bank Offered Rate for deposits in £ for a period of three months as quoted in the London Financial Times, if the rate is not available on Reuters Page "LIBOR01"; or |
(b) | if the relevant day is not a Business Day: |
(i) | the rate for deposits in £ for a period of three months which appears on Reuters Page "LIBOR01" as at 11am London time on the immediately preceding Business Day; or |
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(ii) | the London Inter Bank Offered Rate for deposits in £ for a period of three months as quoted in the London Financial Times on the immediately preceding Business Day, if the rate is not available on Reuters Page "LIBOR01"; |
(a) | a supply contract entered into in May 2010 between Viking and Songa comprising purchase orders TRYMAR1801778 and TRYMAR1801779; and |
(b) | a manufacturing contract entered into in May 2010 between Viking and Zibo comprising purchase orders 0000051 and 0000052; |
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(a) | HSBC M&A fees; |
(b) | KPMG Vendor Assist; |
(c) | KPMG Audit; |
(d) | E&Y Tax; |
(e) | Norton Rose LLP; |
(f) | KPMG Vendor Due Diligence; |
(g) | Merrill Corporation; |
(h) | Pinsent Masons LLP; |
(i) | Clayton Utz LLP; |
(j) | Schjodt; |
(k) | Wong Partnership; |
(l) | IHS fees; |
(m) | Directors’ & Officers’ Run-off Insurance; |
(n) | Alix Partners Payment; and |
(o) | any other third party professional advisory fees and expenses incurred by the Group at the Institutional Seller’s request in connection with the Transaction and which are unpaid (whether unbilled or the subject of an outstanding invoice); |
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1.2 | Statutes |
(a) | that enactment as amended, extended or applied by or under any other enactment (before, on or after the date of this agreement); |
(b) | any enactment which that enactment re-enacts (with or without modification); and |
(c) | any subordinate legislation (including regulations) made (before, on or after the date of this agreement) under that enactment, including (where applicable) that enactment as amended, extended or applied as described in subparagraph (a), or under any enactment which it re-enacts as described in subparagraph (b), |
1.3 | Interpretation |
(a) | words denoting persons include bodies corporate and unincorporated associations of persons; |
(b) | references to an individual include his estate and personal representatives; |
(c) | subject to clause 17 (Assignments), references to a party to this agreement include the successors or permitted assigns (immediate or otherwise) of that party; |
(d) | a person shall be deemed connected with another if that person is connected with that other within the meaning of sections 1122 and 1123 of the Corporation Tax Act 2010 other than sections 1122(4) and 1122(7), except that no Seller shall be connected with the Purchaser or any Group Company, nor shall any Seller be connected with any other Seller (or a connected person of another Seller) by virtue of the transactions contemplated by this agreement or being a holder of Shares in the Company; |
(e) | the words including and include shall mean including without limitation and include without limitation, respectively; |
(f) | the singular includes the plural (and vice versa); |
(g) | any reference importing a gender includes the other genders; |
(h) | any reference to a time of day is to London time; |
(i) | any reference to £ is to British Pounds Sterling; |
(j) | any reference to writing includes typing, printing, lithography, photography and facsimile but excludes any other form of Electronic Communication; |
(k) | any reference to a document is to that document as amended, varied or novated from time to time otherwise than in breach of this agreement or that document; |
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(l) | any reference to a company includes any company, corporation or other body corporate wheresoever incorporated; |
(m) | any reference to a company or firm includes any company or firm in succession to all, or substantially all, of the business of that company or firm; |
(n) | unless the contrary intention appears, a reference to a clause, sub-clause or schedule is a reference to a clause, sub-clause or schedule of or to this agreement. The schedules, and the recitals in the Background section, form part of this agreement; |
(o) | the headings do not affect its interpretation; |
(p) | if there is any conflict or inconsistency between a term in the body of this agreement and a term in any of the schedules, the term in the body of this agreement shall take precedence; |
(q) | the ejusdem generis rule does not apply. Accordingly, specific words indicating a type, class or category of thing shall not restrict the meaning of general words following such specific words, such as general words introduced by the word "other" or a similar expression. Similarly, general words followed by specific words shall not be restricted in meaning to the type, class or category of thing indicated by such specific words; |
(r) | a reference to any English legal term for any action, remedy, method or form of judicial proceeding, legal document, court or other legal concept or matter shall be deemed to include a reference to the corresponding or most similar legal term in any jurisdiction other than England, to the extent that such jurisdiction is relevant to the Transaction; and |
(s) | notices to be provided under clauses 6.1(c), 6.3 and 6.4 may be provided by email. |
2. | SALE AND PURCHASE |
2.1 | Sale and purchase |
2.2 | Encumbrances |
2.3 | No obligation to complete |
3. | CONSIDERATION |
3.1 | Apportionment |
3.2 | Reduction of Consideration |
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4. | ESCROW ACCOUNT AND CONDUCT OF CLAIMS |
4.1 | The Escrow Account shall be operated, and the Escrow Sum and interest accruing on it (or any part of it) shall be applied, in accordance with this clause and the provisions of the Escrow Agreement. On Completion, the Purchaser shall procure the payment of the Escrow Sum to the Escrow Account. |
4.2 | If HMRC delivers to the Company a notice of assessment alleging an underpayment of Class 1 national insurance contributions by reason of the Bayliss Shares being classed as “readily convertible assets” for the purposes of section 702 Income Tax (Earnings and Pensions) Act 2003 when they were acquired by William Bayliss (a Bayliss Claim), then if the Bayliss Claim becomes a Determined Claim before the Release Date, an amount equal thereto shall be paid to the Purchaser from the Escrow Account. |
4.3 | In clause 4.2 (Escrow Account and Conduct of Claims) above: |
(a) | a Determined Claim means a Bayliss Claim which is either: |
(i) | agreed by the Institutional Seller in writing (including, but not limited to, agreement on the quantum of the Bayliss Claim); or |
(ii) | adjudged final by any judgment or settlement order, that judgment or order being incapable of appeal or where the persons entitled to appeal have elected in writing not to appeal, or any time period for appeal has expired without the relevant right of appeal having been validly exercised, |
4.4 | The balance of the Escrow Sum after the payment of the aggregate of all outstanding Determined Liabilities under clause 4.2 (Escrow Account and Conduct of Claims) (if any) shall be released to the Sellers on 20 May 2014 (the Release Date). |
4.5 | If there has been a Bayliss Claim that has not become a Determined Claim on or before the Release Date, then the Escrow Amount will remain in the Escrow Account pending such Bayliss Claim becoming a Determined Claim in accordance with clause 4.3 (Escrow Account and Conduct of Claims). Within 10 Business Days of such Bayliss Claim becoming a Determined Claim, an amount equal to any Determined Liabities in respect of that Determined Claim shall be paid to the Purchaser from the Escrow Account and the balance of the Escrow Sum (if any) shall be released to the Sellers. |
4.6 | Any interest which accrues on the Escrow Sum (or any part of it) while in the Escrow Account shall follow the principal amount and shall be paid to the Sellers or the Purchaser (as the case may be) at the same time as payment of the corresponding principal. |
4.7 | Each Seller shall be entitled to that percentage set against its name in the column “Percentage of Consideration” in Schedule 1 (The Sellers) of any sum released to the Sellers from the Escrow Account under this clause 4 (Escrow Account and Conduct of Claims). |
4.8 | The Institutional Seller’s Representative shall prior to Completion promptly give or join in giving all such instructions as are necessary to procure the entry into of the Escrow Agreement and, after Completion the operation of the Escrow Account, and application of the Escrow Sum and interest accruing on it (or any part of it), in accordance with the provisions of this clause and the Escrow Agreement. |
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4.9 | The Purchaser shall procure that the fees and expenses of the Escrow Agent shall be borne by the Company. |
4.10 | If the Purchaser or any member of the Purchaser’s Group becomes aware of an assessment notice, letter, demand or other document issued or action taken by or on behalf of any tax authority or any form of return, computation, account, other document or self-assessment required by law from which it appears that a Group Company is subject to, or is sought to be made subject to, or will or might become subject to, any Tax liability (including but not limited to the imposition or withholding of or on account of any Tax or any amount in the nature of Tax) with respect to a Bayliss Claim (a Tax Matter), the Purchaser shall give notice to the Institutional Seller specifying that Tax Matter in reasonable detail as soon as reasonably practicable (and in any event within 10 Business Days) after it or the relevant member of the Purchaser’s Group (as the case may be) becomes aware of that Tax Matter. |
4.11 | The Institutional Seller may give notice to the Purchaser that it elects to assume the conduct of any dispute, compromise, defence or appeal of a Tax Matter (a Tax Dispute) within 15 Business Days of receiving notice of the Tax Matter pursuant to clause 4.10 on the following terms in which case: |
(a) | the Institutional Seller shall indemnify the Company against all liabilities, damages, costs and expenses that it may reasonably incur in taking any such action as the Institutional Seller may request pursuant to sub-paragraph (c) below (including any additional liability in respect of Taxation that arises as a result of any actions of the Institutional Seller, (save to the extent that such liability constitutes a Determined Liability), and third party costs and expenses); |
(b) | the Purchaser shall make and shall procure that the Company makes available to the Institutional Seller and its advisers such access to personnel and to relevant documents and records within the Purchaser’s or the Company’s power or control as the Institutional Seller may reasonably request for assessing, contesting, disputing, defending, appealing or compromising the Tax Dispute; |
(c) | the Purchaser shall procure that the Company takes such action to contest, dispute, defend, appeal or compromise the Tax Dispute as the Institutional Seller may reasonably request and does not make any admission of liability, agreement, settlement or compromise in relation to the Tax Dispute without the prior written approval of the Institutional Seller; |
(d) | the Institutional Seller shall keep the Purchaser informed of the progress of the Tax Dispute and provide the Purchaser with copies of all relevant documents and such other information in its possession as may be requested by the Purchaser (acting reasonably); |
(e) | the Institutional Seller shall be entitled at any stage and in its sole discretion (acting in good faith) to enter into a final settlement of any Tax Dispute; and |
(f) | notwithstanding sub-paragraph (c) above, the Purchaser and the Company shall not be obliged to comply with any request of the Institutional Seller which involves appealing, or otherwise taking any action in respect of, any Tax Dispute beyond the first appellate body (excluding the tax authority which has made the Tax Matter in question, the statutory pre-tribunal review and the tax chamber of the first-tier tribunal) unless the Institutional Seller (at its sole cost and expense) furnishes the Purchaser with the written opinion of tax counsel of at least ten years’ call who is experienced in the subject matter of the Tax Dispute to the effect that there is a reasonable prospect that the appeal in respect of the matter in question will succeed; and (ii) the Purchaser and the Company shall not be obliged to take any action in relation to a Tax Dispute where any tax authority alleges in writing (which allegation is not withdrawn) fraudulent conduct or conduct involving dishonesty has been committed in relation to such Tax Matter. |
4.12 | If: |
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(a) | within 15 Business Days of having given written notice to the Institutional Seller of a Tax Matter, the Purchaser does not receive from the Institutional Seller notification of an election under Clause 4.11; or |
(b) | any tax authority alleges in writing that fraudulent conduct or conduct involving dishonesty has been committed in relation to such Tax Matter, and such allegation is not withdrawn after the Institutional Seller has had a reasonable opportunity to challenge it, |
(a) | keeps the Institutional Seller reasonably informed of all matters relating to the Tax Matter and delivers to the Institutional Seller copies of all material correspondence relating to the Tax Matter; and |
(b) | obtains the prior written approval of the Institutional Seller (not to be unreasonably withheld or unreasonably delayed) to the content and sending of written communications relating to the Tax Matter to a tax authority. |
4.13 | The Purchaser will act in good faith in connection with any issue relating to or that could give rise to a Bayliss Claim and will not (save to the extent required by law or regulation) voluntarily communicate to HMRC any matter that could give rise to a Bayliss Claim. |
5. | CONDITION PRECEDENT |
5.1 | Conditions |
(a) | the Competition Approval being given (or deemed to be given) on or before the Longstop Date (the Completion Condition); and |
(b) | there being no court order in effect that restrains or prohibits the parties from completing the Transaction or which invalidates the Transaction (Court Order). |
5.2 | Satisfaction of the Completion Condition |
5.3 | Communications |
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5.4 | Assistance |
5.5 | Notification |
5.6 | Competition Approval |
5.7 | Failure to satisfy the Completion Condition |
(a) | except for this clause 5.7, and clauses 1 (Definitions and Interpretation), 13 (Announcements and Confidentiality), 14 (Notices), 19.2 to 19.13 (General), 20 (Whole Agreement), 21 (Institutional Seller Representative), 22 (Senior Management Representative) and 23 (Governing Law and Jurisdiction), all the provisions of this agreement shall lapse and cease to have effect; and |
(b) | neither the lapsing of those provisions nor their ceasing to have effect shall affect any accrued rights or liabilities of any party in respect of damages for non-performance of any obligation falling due for performance before such lapse and cessation. |
6. | PRE-COMPLETION UNDERTAKINGS |
6.1 | Senior Management Seller and Manager undertakings |
(a) | the Business is carried on in the ordinary course consistent with practice in the six months prior to the date of this agreement; |
(b) | all transactions between a Group Company and a Seller or any of their respective Affiliates or persons connected to them take place on arm's length terms; |
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(c) | subject to paragraph (d) below, no Group Company shall, without the prior written consent of the Purchaser (such consent not to be unreasonably withheld or delayed): |
(i) | increase, reduce or otherwise alter its share or loan capital or grant any option to subscribe for or acquire any of its share or loan capital or take any action in respect of any Shares convertible into any share or loan capital (other than to another Group Company); |
(ii) | adopt any material new accounting policies or practices or materially change any of its accounting policies and practices or its accounting reference date, in each case except as required by law or to comply with a new accounting standard; |
(iii) | (save for the leasing of chain, fibre, wire, buoyancy, anchors and associated support equipment and fittings in the ordinary course of business) sell, transfer, lease, license or dispose of, or grant any option to acquire, any material part of its business, undertaking or assets, whether by a single transaction or series of transactions, related or not, involving aggregate consideration, expenditure or liabilities in excess of £100,000, other than where the same results from an asset being lost or damaged beyond repair; |
(iv) | enter into a legally binding commitment to acquire (whether by purchase, subscription or otherwise), lease or license any business (whether by way of acquisition of business and assets or any interest in any body corporate that owns such business and assets); |
(v) | grant any Encumbrance over any of its assets (other than Permitted Security Interests); |
(vi) | borrow any monies or incur any indebtedness or other liability other than, in the ordinary course of trading, (A) trade credit or (B) drawing down under the External Facilities or (C) entering into finance leases; |
(vii) | incorporate a Subsidiary or liquidate or dissolve any Subsidiary or effect any hive-up or hive-down or any reorganisation of the business of a Group Company; |
(viii) | amend or vary any provision of, or enter into or offer to enter into, terminate (or give notice to terminate) or fail to enforce, any terms of employment or severance or post-employment (including in relation to benefits and pension fund commitments) with or of any Key Employee; |
(ix) | enter into or materially modify any agreement with any trade union or other employee representative body; |
(x) | (save for any cross-hire in which is effected in the ordinary course of business) enter into or terminate any contract, lease, license or arrangement: |
(A) | which will require capital expenditures by the Group that, when accumulated with all such capital expenditures incurred since the date of this agreement, will exceed £350,000 (in the aggregate); |
(B) | which is a joint venture, partnership or consortium agreement; or |
(C) | which has a term in excess of one year; |
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(xi) | give any guarantee, indemnity, counter indemnity, letter of credit or other agreement to secure an obligation of a Seller or any of its Affiliates; |
(xii) | settle any litigation where it could result in a payment by a Group Company exceeding £25,000, except for collection in the ordinary course of trading debts; |
(xiii) | cancel, or materially alter the level and extent of cover provided by, the policies of insurance as are in effect for the benefit of the Group immediately before the execution of this agreement; |
(xiv) | take any action as a result of which it would cease to possess or have access to its register of members (or equivalent); |
(xv) | make or revoke any tax election; |
(xvi) | make a material change to any collection practices, payment practices or other working capital practices; |
(xvii) | reduce the provision of five hundred and thirty two thousand seven hundred and sixty four British Pounds Sterling (£532,764) for the Songa Matter (save as a result of the payment by a Group Company in the ordinary course of any fee or expense incurred by it in connection with the Songa Matter, not exceeding in aggregate eighty thousand British Pounds Sterling (£80,000)) or settle any claim in connection with the Songa Matter, provided that the Senior Management Sellers shall notify the Purchaser as soon as practicable of any payments in connection with the Songa Matter and the resulting reduction in the provision; |
(xviii) | amend its articles of association; or |
(xix) | agree to do any of the actions referred to in sub-clauses 6.1(c)(i) to (xiv) above; |
(d) | paragraph (c) above shall not apply to the extent that any such action is: |
(i) | required to give effect to or to comply with this agreement; |
(ii) | required by law or applicable regulation; |
(iii) | undertaken in accordance with a contractual obligation entered into before the date of this agreement which has been disclosed to the Purchaser with sufficient detail to enable the Purchaser to identify the nature and scope of the matter disclosed (including the Senior Facilities Agreement and any agreement related to the External Facilities); |
(iv) | required to repay any outstanding principal or accrued interest under the External Facilities (and a Group Company may use available cash to repay any such amounts) or to otherwise discharge obligations under the External Facilities; or |
(v) | the Company declaring or paying any cash dividend or making any other cash distribution in respect of its profits, assets or reserves. |
6.2 | Several liability |
6.3 | Purchaser approval |
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6.4 | Institutional Seller Stamping |
(ii) | the Wandl Shares are duly registered in the name of the Institutional Seller in the Company’s register of members. |
6.5 | Institutional Seller undertaking |
6.6 | Material Adverse Change |
6.7 | Delivery by Institutional Seller |
(a) | the Completion Statement, together with copies of supporting documents relevant to the calculation of the Completion Amount including the Net Debt Estimate; and |
(b) | a notice specifying the: |
(i) | External Facilities Repayment Amount (supported by appropriate payoff letters); |
(ii) | amount of the Exit Bonuses; |
(iii) | amount of the Transaction Fees; and |
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(iv) | details of the account into which the Purchaser must pay the Completion Amount at Completion. |
7. | COMPLETION |
7.1 | Time and location |
(a) | Subject to the terms and conditions in this agreement, Completion shall take place at the offices of Allen & Overy LLP, One Bishops Square, London E1 6AD on the date that is selected by the Purchaser and is not earlier than three Business Days but no later than six Business Days following the day on which notification is given by the Purchaser in accordance with clause 5.5 that the Completion Condition is satisfied or such other date and at such other place as the Institutional Seller and the Purchaser may agree. |
(b) | The parties agree to use reasonable endeavours and co-operate in good faith with a view to a target Completion Date of 23 August 2013. |
7.2 | Completion obligations |
(a) | each of the Sellers shall observe and perform the provisions of Part 1 of Schedule 3 (Completion) to the extent applicable to them; and |
(b) | the Purchaser shall observe and perform the provisions of Part 2 of Schedule 3 (Completion). |
7.3 | Items held to order |
(a) | delivery of all documents and items required to be delivered at Completion in accordance with sub-clauses 7.2(a) and 7.2(b) (Completion obligations) and Schedule 3 (Completion) (or waiver of the delivery of them by the person entitled to receive the relevant document or item); and |
(b) | receipt of an electronic funds transfer to the bank account of the Institutional Seller's Solicitors of the Completion Amount, |
7.4 | Seller failure to complete |
(a) | not to complete the purchase of the Shares, in which case the provisions of clause 7.6 (Consequences of failure to complete) shall apply; or |
(b) | to fix a new time and date for Completion (being not more than 20 Business Days after the original date for Completion), in which case the provisions of clauses 7.2 (Completion obligations), 7.3 (Items held to order) and Schedule 3 (Completion) shall apply to Completion as so deferred but on the basis that such deferral may occur only once. |
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7.5 | Purchaser failure to complete |
(c) | not to complete the sale of the Shares, in which case the provisions of clause 7.6 (Consequences of failure to complete) shall apply; or |
(d) | to fix a new time and date for Completion (being not more than 20 Business Days after the original date for Completion) in which case the provisions of clauses 7.2 (Completion obligations), 7.3 (Items held to order) and Schedule 3 (Completion) shall apply to Completion as so deferred but on the basis that such deferral may occur only once. |
7.6 | Consequences of failure to complete |
(c) | except for clause 1 (Definitions and Interpretation), this sub-clause 7.6, and clauses 13 (Announcements and Confidentiality), 14 (Notices), 19.2 to 19.13 (General), 20 (Whole Agreement), 21 (Institutional Seller Representative), 22 (Senior Management Representative) and 23 (Governing Law and Jurisdiction), all the provisions of this agreement shall lapse and cease to have effect; and |
(d) | neither the lapsing of those provisions nor their ceasing to have effect shall affect any accrued rights or liabilities of any party in respect of damages for non-performance of any obligation falling due for performance before such lapse and cessation. |
8. | POST COMPLETION |
8.1 | Final Completion Statement |
8.2 | Objection Notice |
8.3 | Details required in the Objection Notice |
(c) | the specific items that are in dispute (the Disputed Amounts); and |
(d) | the adjustments which, in the Institutional Seller's opinion, ought to be made to the Final Completion Statement so that it complies with the provisions of this agreement. |
8.4 | Referral to an Independent Accountant |
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8.5 | Final Completion Statement binding |
(e) | deemed agreed (if the Institutional Seller does not issue an Objection Notice in accordance with clauses 8.2 (Objection Notice) and 8.3 (Details required in the Objection Notice)); |
(f) | agreed (if the parties are able to resolve any dispute); or |
(g) | determined (under clause 8.4 (Referral to an Independent Accountant)), |
8.6 | Payment of adjustment |
(a) | Once the Final Completion Statement is final and binding on the parties, then the payment due (if any) calculated in accordance with clause 8.7 (Adjustments) shall be paid by the Purchaser to the Institutional Seller or by the Institutional Seller to the Purchaser (as appropriate) within ten Business Days, together with Interest on such amount calculated from the Completion Date up to (but excluding) the date of payment and apportioned between the Sellers in proportion to their respective shareholdings as set out in the column "Percentage of Consideration" in Schedule 1 (The Sellers). |
(b) | The amounts (if any) payable by the Institutional Seller to the Purchaser or by the Purchaser to the Institutional Seller under sub-clause 8.6(a) shall be set off against each other so that only any balance payable shall be paid on the date on which a payment is to be made under sub-clause 8.6(a). |
8.7 | Adjustments |
(a) | If the Completion Amount set forth on the Final Completion Statement is in excess of the Completion Amount set forth on the Completion Statement, then the Purchaser shall pay the amount of such excess to the Institutional Seller in accordance with the provisions of clause 8.6 (Payment of adjustment). |
(b) | If the Completion Amount set forth on the Final Completion Statement is less than the Completion Amount set forth on the Completion Statement, then the Institutional Seller shall pay the amount of such deficiency to the Purchaser in accordance with the provisions of clause 8.6 (Payment of adjustment). |
(c) | The maximum positive adjustment in respect of working capital in favour of the Sellers under clause 8.6 (Payment of adjustment) and this clause 8.7 (Adjustments) is £100,000,000. |
8.8 | Access |
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9. | WARRANTIES AND UNDERTAKINGS |
9.1 | Warranties |
(c) | Ownership of the Shares |
(i) | The Shares set out in Schedule 1 (The Sellers) against his or its name are, as at the date of this agreement (other than the Wandl Shares), and will at Completion be, legally and beneficially owned by him or it. |
(ii) | There is, as at the date of this agreement (save in respect of any encumbrances in relation to the Junior Debt and Senior Debt), and will at Completion be, no Encumbrance on, over or affecting any of the Shares owned by such Seller and no person has, as at the date of this agreement, and will at Completion be, claimed to be entitled to any such Encumbrance. |
(d) | Capacity and consequences of sale |
(i) | It or he has the power, capacity and authority to execute and deliver this agreement and each of the other Transaction Documents to which it or he is or will be a party and to perform its or his obligations under each of them and has taken all action necessary to authorise such execution and delivery and the performance of such obligations. |
(ii) | This agreement constitutes legal, valid and binding obligations on it or him in accordance with its terms. Each of the other Transaction Documents to which it or he is or will be a party will, when executed, constitute legal, valid and binding obligations on it or him in accordance with its terms. |
(iii) | The entry by it or him into this agreement and, as applicable, into each of the other Transaction Documents to which it or he is or will be a party and the performance by it or him of its or his obligations under this agreement and each other Transaction Document does not and will not: |
(A) | conflict with or constitute a default under any provision of: |
I. | any agreement or instrument to which it, he or any person connected with it or him is a party; or |
II. | the constitutional documents of it or any person connected with it or him; or |
III. | any law, lien, lease, order, judgment, award, injunction, decree, ordinance or regulation or any other restriction of any kind or character by which it, he or any person connected with it or him is bound; or |
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(B) | result in the creation or imposition of any Encumbrance on any of the Shares owned by it or him. |
9.2 | The provisions of Schedule 4 (Limitations on Claims) shall apply to limit the liability of the Institutional Seller and the Other Sellers (as the case may be) under this agreement and no liability shall attach to the Institutional Seller or the Other Sellers in respect of any Claim in each case if, and to the extent that, any of the limitations set out in Schedule 4 (Limitations on Claims) applies, provided that the provisions of Schedule 4 (Limitations on Claims) shall not apply to any Claim against any Institutional Seller or Other Seller arising out of fraud on the part of that Institutional Seller or Other Seller. |
9.3 | The Warranties shall be deemed to be given by the Institutional Seller and the Other Sellers at the date of this agreement and again at Completion. |
10. | PURCHASER'S WARRANTIES AND UNDERTAKINGS |
(e) | the Purchaser has the power, capacity and authority to execute and deliver this agreement and each of the other Transaction Documents to which it is or will be a party and to perform its obligations under each of them and has taken all action necessary to authorise such execution and delivery and the performance of such obligations; |
(f) | this agreement constitutes, and each of the other Transaction Documents to which the Purchaser is or will be a party will, when executed, constitute legal, valid and binding obligations on the Purchaser in accordance with its terms; and |
(g) | the entry by the Purchaser into this agreement and, as applicable, into each of the other Transaction Documents to which it is or will be a party and the performance of the obligations of the Purchaser under this agreement and each other Transaction Document does not and will not conflict with or constitute a default under any provision of: |
(i) | any agreement or instrument to which the Purchaser or any person connected with the Purchaser is a party; |
(ii) | the constitutional documents of the Purchaser or any person connected with the Purchaser; or |
(iii) | any law, lien, lease, order, judgment, award, injunction, decree, ordinance or regulation or any other restriction of any kind or character by which the Purchaser or any person connected with the Purchaser is bound, subject to satisfaction of the Completion Condition. |
(h) | in connection with the entry into this agreement, the Transactions contemplated by this agreement, and/or any matter pertaining directly or indirectly to this agreement, including without limitation the negotiation of this agreement and the fulfilment of the Purchaser’s obligations hereunder, the Purchaser has not and each of its Affiliates, associated persons, agents or subcontractors as may be used in relation to the Purchaser’s fulfilment of obligations under this agreement (such persons being herein referred to as the Purchaser’s Associates) have not and the Purchaser undertakes for itself and on behalf of the Purchaser’s Associates that it or they shall not engage in or in any way induce the following conduct: making of payments or transfers of value, offers, promises or giving of any financial or other advantage, or requests, agreements to receive or acceptances of any financial or other advantage, either directly or indirectly, which have or may have the purpose or effect of public or commercial |
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11. | GUARANTOR'S WARRANTIES AND UNDERTAKINGS |
(e) | the Guarantor has the power, capacity and authority to execute and deliver this agreement and each of the other Transaction Documents to which it is or will be a party and to perform its obligations under each of them and has taken all action necessary to authorise such execution and delivery and the performance of such obligations; |
(f) | this agreement constitutes, and each of the other Transaction Documents to which the Guarantor is or will be a party will, when executed, constitute legal, valid and binding obligations on the Guarantor in accordance with its terms; and |
(g) | the entry by the Guarantor into this agreement and, as applicable, into each of the other Transaction Documents to which it is or will be a party and the performance of the obligations of the Guarantor under this agreement and each other Transaction Document does not and will not conflict with or constitute a default under any provision of: |
(i) | any agreement or instrument to which the Guarantor or any person connected with the Guarantor is a party; |
(ii) | the constitutional documents of the Guarantor or any person connected with the Guarantor; or |
(iii) | any law, lien, lease, order, judgment, award, injunction, decree, ordinance or regulation or any other restriction of any kind or character by which the Guarantor or any person connected with the Guarantor is bound, subject to satisfaction of the Completion Condition. |
12. | GUARANTEE |
12.1 | Guarantee |
(h) | guarantees to the Sellers and the Exit Bonus Payees the payment when due of all amounts payable by the Purchaser under or pursuant to this agreement; |
(i) | undertakes to ensure that the Purchaser will perform when due all its obligations under or pursuant to this agreement; |
(j) | agrees that if and each time that the Purchaser fails to make any payment when it is due under or pursuant to this agreement, the Guarantor must on demand (without requiring the Sellers or the Exit Bonus Payees first to take steps against the Purchaser or any other person) pay that amount to the Sellers and the Exit Bonus Payees as if it were the principal obligor in respect of that amount; and |
(k) | agrees as principal debtor and primary obligor to indemnify, on an after-Tax basis, the Sellers and the Exit Bonus Payees against all losses and damages sustained by any Seller, their respective Affiliates and the Exit Bonus Payees flowing from any non-payment or default of any kind by the Purchaser under or pursuant to this agreement or the unenforceability, invalidity or illegality of any of the Purchaser's obligations. |
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12.2 | Waiver of defences |
(c) | any time or indulgence granted to, or composition with, the Purchaser or any other person; |
(d) | the taking, variation, renewal or release of any right, guarantee, remedy or security from or against the Purchaser or any other person; |
(e) | neglecting to perfect or enforce this agreement against the Purchaser or any other person; |
(f) | any variation or change to the terms of this agreement; or |
(g) | any unenforceability or invalidity of any obligation of the Purchaser, so that this agreement shall be construed as if there were no such unenforceability or invalidity. |
12.3 | Subrogation |
12.4 | Costs |
13. | ANNOUNCEMENTS AND CONFIDENTIALITY |
13.1 | Restriction |
13.2 | Duration |
(d) | each of the parties shall treat as strictly confidential and not disclose or use any information received, held or obtained as a result of entering into this agreement or any of the Transaction Documents which relates to: |
(iv) | the provisions of this agreement or the Transaction Documents and any agreement entered into under them; or |
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(v) | the negotiations relating to this agreement (and any such other agreement); and |
(e) | each Seller shall, following Completion, treat as strictly confidential and not disclose or use: |
(i) | any information relating to the Group; or |
(ii) | any other information relating to the business, financial or other affairs (including future plans and targets) of the Purchaser's Group, |
13.3 | Exceptions for announcements and disclosure |
(c) | with the prior written approval of the Institutional Seller Representative, the Senior Management Representative and the Purchaser, which shall not be unreasonably withheld or delayed; |
(d) | to the extent required by law, to any court of competent jurisdiction, any stock exchange or any competent regulatory or supervisory body (including a taxation authority), provided that if a person is so required to make any announcement or to disclose any confidential information, the relevant party shall promptly notify the other parties, where practicable and lawful to do so, before the announcement is made or disclosure occurs (as the case may be) and shall co-operate with the other parties regarding the timing and content of such announcement or disclosure (as the case may be) or any action which the other parties may reasonably elect to take to challenge the validity of such requirement, including giving the Institutional Seller an opportunity to comment on the announcement. |
13.4 | Exceptions for disclosure only |
(a) | by any member of the Purchaser's Group for the time being or, after Completion, by any Group Company: |
(iv) | to the extent that the information is in or comes into the public domain otherwise than as a result of a breach of any undertaking or duty of confidentiality by any member of the Purchaser's Group for the time being or, after Completion, by any Group Company; |
(v) | to its professional advisers, auditors, investors or bankers but, before any disclosure to any such person, the Purchaser shall procure that such person is made aware of the terms of this clause 13.4 (Exceptions for disclosure only) and shall use its best endeavours to procure that such person adheres to those terms as if such person were bound by the relevant provisions of this clause 13.4 (Exceptions for disclosure only); |
(vi) | to a proposed purchaser of, or investor in, any member of the Purchaser's Group or their professional advisers, auditors or bankers but, before any disclosure to any such person, the Purchaser shall procure that such person is made aware of the terms of this clause 13.4 (Exceptions for disclosure only) and shall use its best endeavours to procure that such person adheres to those terms as if such person were bound by the relevant provisions of this clause 13 (Announcements and Confidentiality); or |
(vii) | to any provider of finance or potential provider of finance to the Purchaser's Group or any person connected with the Purchaser (or to their advisers, agents or representatives) |
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(b) | by the Institutional Seller to its Affiliates, or any fund, limited partnership or investment vehicle managed or advised by the Institutional Seller, or any actual or prospective investor in any such fund, limited partnership or investment vehicle, in each case on a confidential basis; or |
(c) | by any Seller or, on or before Completion, by any Group Company: |
(iii) | to the extent that the information is in or comes into the public domain otherwise than as a result of a breach of any undertaking or duty of confidentiality by any Seller or, on or before Completion, by any Group Company; |
(iv) | to its professional advisers, auditors or bankers but, before any disclosure to any such person, that Seller shall procure that such person is made aware of the terms of this clause 13.4 (Exceptions for disclosure only) and shall use its or his best endeavours to procure that such person adheres to those terms as if such person were bound by the relevant provisions of this clause 13.4 (Exceptions for disclosure only); or |
(v) | to any Tax authority. |
14. | NOTICES |
14.1 | Delivery |
(f) | if to the Institutional Seller, at the address specified against its name in this agreement, with a copy to: |
(g) | if to the Institutional Seller Representative, at: |
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(h) | if to a Senior Management Seller or a Manager, at the address specified against his or its name in this agreement, with a copy to: |
(i) | if to the Senior Management Representative, at: |
(j) | if to the Other Sellers, at the address specified against his or its name in this agreement, with a copy to: |
(k) | if to the Purchaser at: |
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(l) | if to the Guarantor at: |
14.2 | Time of delivery |
(e) | if delivered by hand, registered post or courier, at the time of delivery; |
(f) | if sent by post, on the second Business Day after it was put into the post; or |
(g) | if sent by fax, on the date of transmission, if transmitted before 3pm (local time in the country of destination) on any Business Day, and in any other case on the Business Day following the date of transmission. |
14.3 | Evidence of delivery |
14.4 | Service of process |
15. | FURTHER ASSURANCES |
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15.1 | Execution of documents |
15.2 | Shares held on trust |
16. | POST COMPLETION UNDERTAKINGS |
16.1 | Access |
16.2 | Payment of Exit Bonuses |
16.3 | Payment of Transaction Fees |
16.4 | Release of Institutional Seller Directors |
(a) | not bring or maintain and shall procure that no Group Company brings or maintains any claim whatsoever against any Institutional Seller Director for breach of director’s duties (including the duty to exercise reasonable care, skill and diligence) owed by any Institutional Director to any Group Company of which he was a director at any time in the period prior to Completion; and |
(b) | procure that each of the relevant Group Companies of which an Institutional Seller Director was a director at any time in the period prior to Completion shall, if requested by an Institutional Seller Director, waive, release and discharge the Institutional Seller Director in respect of any breach of director’s duties (including the duty to exercise reasonable care, skill and diligence) owed to the relevant Group Companies in the period prior to Completion, |
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17. | ASSIGNMENTS |
(a) | the Purchaser may assign (in whole or in part) the benefit of this agreement to any other member of the Purchaser's Group, provided that if such assignee ceases to be a member of the Purchaser's Group all benefits relating to this agreement assigned to such assignee shall be deemed automatically by that fact to be re-assigned to the Purchaser immediately before such cessation; and |
(b) | the Purchaser or any member of the Purchaser's Group may charge and/or assign the benefit of this agreement to any person providing debt financing and/or hedging facilities to the Purchaser or any member of the Purchaser's Group, or to any security agent or any person or persons acting as trustee, nominee or agent for any such person by way of security for the facilities being made or to be made available to the Purchaser or member of the Purchaser's Group and any such person, security agent, trustee, nominee or agent may also, in the event of enforcement of such security in accordance with its terms, assign the benefit of such obligations and rights to a purchaser or assignee who acquires the Company or all or part of its business from that person, security agent, trustee, nominee or agent (or any receiver appointed by any of them), |
18. | PAYMENTS |
18.1 | Accounts |
(a) | if that payment is to the Institutional Seller or any person connected with the Institutional Seller, the account of the Institutional Seller's Solicitors (details of which have been provided to the Purchaser's Solicitors) or such other account as the Institutional Seller Representative shall, not less than three Business Days before the date that payment is due, have specified for payments to the Institutional Seller by giving notice to the Purchaser for the purpose of that payment; |
(b) | if that payment is to any Senior Management Seller, Exit Bonus Payee or person connected with a Senior Management Seller or Exit Bonus Payee, the account of the Senior Management Sellers' Solicitors (details of which have been provided to the Purchaser's Solicitors) or such other account as the relevant Senior Management Seller or Exit Bonus Payee shall, not less than three Business Days before the date that payment is due, have specified for payments to him or it by giving notice to the Purchaser for the purpose of that payment; and |
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(c) | if that payment is to the Purchaser, such account of the Purchaser as the Purchaser shall, not less than three Business Days before the date that payment is due, have specified by giving notice to the Institutional Seller Representative and the Senior Management Representative for the purpose of that payment. |
18.2 | Payments by or to the Institutional Seller on behalf of the Sellers |
18.3 | Default interest |
18.4 | Withholdings and deductions |
18.5 | Gross up |
19. | GENERAL |
19.1 | Obligations continue post Completion |
19.2 | Several liability |
19.3 | All Sellers bound |
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19.4 | Time not of the essence |
(a) | time is expressly stated to be of the essence in relation to that obligation; or |
(b) | one party fails to perform an obligation by the time specified in this agreement and another party serves a notice on the defaulting party requiring it to perform the obligation by a specified time and stating that time is of the essence in relation to that obligation. |
19.5 | Costs |
19.6 | Transfer Taxes |
19.7 | Counterparts |
19.8 | Exercise of rights |
(a) | may be exercised as often as necessary; and |
(b) | may be waived only in writing and specifically. |
19.9 | No right to delay |
19.10 | Third party rights |
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19.11 | Successors |
19.12 | Amendments |
19.13 | Severability |
20. | WHOLE AGREEMENT |
20.1 | Whole agreement |
20.2 | No reliance |
(a) | acknowledges that in agreeing to enter into this agreement and the other Transaction Documents to which it is a party, it has not relied on any express or implied representation, warranty, collateral contract or other assurance made by or on behalf of any other party before the entering into of this agreement; and |
(b) | waives all rights and remedies which, but for this clause 20.2 (No reliance), might otherwise be available to it in respect of any such express or implied representation, warranty, collateral contract or other assurance. |
20.3 | No agency liability |
20.4 | No exclusion for fraud |
21. | INSTITUTIONAL SELLER REPRESENTATIVE |
21.1 | Functions |
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21.2 | No liability |
22. | SENIOR MANAGEMENT REPRESENTATIVE |
22.1 | Functions |
22.2 | No liability |
23. | GOVERNING LAW AND JURISDICTION |
23.1 | Governing law |
23.2 | Jurisdiction |
23.3 | Service of process |
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23.4 | Waiver of objection to English courts |
23.5 | Waiver of trial by jury |
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Name | Address | Type of Shares | Number of Shares | Percentage of Consideration |
HSBC Investment Bank Holdings plc | Level 23 8 Canada Square London E14 5HQ UK | A Ordinary Shares C Ordinary Shares Limited Participation Shares | 3,983,000 100,000 50,000 | 82.29% 2.07% 0 |
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Name | Address | Type of Shares | Number of Shares | Percentage of Consideration |
James Gaskell | Millbank Farmhouse Maryculter Aberdeen AB12 5FT, UK | C Ordinary Shares Limited Participation Shares | 75,000 37,500 | 1.55% 0 |
William John Bayliss | 7 Queen's Grove Aberdeen AB15 8HE, UK | C Ordinary Shares | 242,000 | 5% |
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Name | Address |
Adrian Bannister | 5 Queen's Grove Aberdeen AB15 8HE, UK |
Anthony Alexander | 38 Ashwood Grange Bridge of Don Aberdeen AB22 8XG, UK |
Christopher Chapman | Rosemount Milton of Arbuthnott Laurencekirk Aberdeenshire AB30 1PF, UK |
Christopher Forde | 35A Beatrice Street Doubleview Western Australia 6018, Australia |
Michael Main | 2 Kirkton Road Westhill Aberdeen AB32 6LF, UK |
Wolfgang Wandl | Melingsiden 34D 4056 Tananger Norway |
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Name | Address | Type of Shares | Number of Shares | Percentage of Consideration |
Inflexion Fund 2 Limited Partnership (acting through its general partner Inflexion Scottish Limited Partnership in turn acting through its general partner Inflexion General Partner Limited) | 9 Mandeville Place London W1U 3AY UK | B Ordinary Shares | 154,999 | 3.2% |
Inflexion Moorings Co-Investment A Limited Partnership (acting through its general partner Inflexion G.P. Limited) | 9 Mandeville Place London W1U 3AY UK | B Ordinary Shares | 145,001 | 3% |
Hugh Allan Webster | Sokak 298 No6 Camdibi Mah Marmaris Mugla 48700 Turkey | C Ordinary Shares Limited Participation Shares | 10,000 5,385 | 0.21% 0 |
Scott Allan Taylor | 26 Derberth Manor Kingswells Aberdeen AB15 8TZ UK | C Ordinary Shares Limited Participation Shares | 20,000 10,769 | 0.41% 0 |
Stephen John Curl | Rockyfield Thorns Lane Underbarrow Cumbria LA8 8BB UK | C Ordinary Shares Limited Participation Shares | 20,000 10,769 | 0.41% 0 |
LØP AS (Anne Lorup) | Ragnhildsgate 66 N-4044 Hafrsfjord Norway | C Ordinary Shares Limited Participation Shares | 15,000 8,077 | 0.31% 0 |
Moor-Tech AS (Petter Nilsen) | Lensmannskroken 19 4050 Sola Norway | C Ordinary Shares Limited Participation Shares | 75,000 37,500 | 1.55% 0 |
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Name | Venice Topco Limited |
Date of incorporation | June 3, 2009 |
Registered company number | 6,923,445 |
Registered office | 1 Park Row Leeds LS1 5AB UK |
Directors | William John Bayliss Anthony David Bernbaum Richard John Cole Donald William Featherstone Michael James Kershaw Patrick Martin Sixsmith |
Issued share capital | A Ordinary Shares: 3,983,000 B Ordinary Shares: 300,000 C Ordinary Shares: 557,000 Limited Participation Shares: 160,000 |
Shareholders | See Schedule 1 (The Sellers) |
Charges | 1. Security agreement (2010) – HSBC Investment Bank Holdings plc 2. Security agreement (2011) – HSBC Investment Bank Holdings plc 3. Bond and floating charge – HSBC Investment Bank Holdings plc 4. Debenture – DNB BANK ASA 5. Bond and floating charge – DNB BANK ASA |
Accounting reference date | 31 December |
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(a) | in respect of that Seller, a duly executed share transfer form or forms in favour of the Purchaser for the Shares held by such Seller; |
(b) | in respect of that Seller, the share certificates for the Shares held by it (or a lost certificate indemnity in a form reasonably satisfactory to the Purchaser); |
(c) | (in the case of the Institutional Seller) a notice from the Institutional Seller removing the Institutional Seller Directors under article 23(a) of the articles of association of the Company and clause 2.1 of the shareholders’ agreement of the Company (confirming that they have no claims against any Group Company); |
(d) | (in the case of the Institutional Seller) the duly executed Junior Deed of Release and the Senior Deed of Release; |
(e) | (in the case of the Institutional Seller) confirmation that it has applied the External Facilities Repayment Amount in full satisfaction of the External Facilities; and |
(f) | (in the case of the Institutional Seller) copies (duly executed by the Institutional Seller) of, in respect of each of James Gaskell and Adrian Bannister, the letter between him and the Institutional Seller, the Company and the Purchaser in respect of his Completion bonus. |
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(a) | electronically transfer to the bank account of the Institutional Seller's Solicitors the Completion Amount minus the Escrow Sum; |
(b) | procure the repayment by the Company of the External Facilities Repayment Amount; and |
(c) | electronically transfer to the Escrow Sum to the Escrow Account. |
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1. | Acknowledgement |
(a) | admits and acknowledges that it has not entered into this agreement in reliance upon any warranties, representations, covenants, undertakings, indemnities or other statements whatsoever other than those expressly set out in this agreement and the Purchaser acknowledges that the Institutional Seller and the Other Sellers have not given any other such warranties, representations, covenants, undertakings, indemnities or other statements and that no claim for any such matters may be brought against the Institutional Seller or the Other Sellers or any of them; |
(b) | agrees that (unless expressly stated otherwise) rescission or termination shall not be available as a remedy for any breach of this agreement and agrees not to claim that remedy; |
(c) | agrees that the damages payable by any Institutional Seller or Other Seller in respect of a Claim shall be calculated on a contractual basis and calculation of damages on a tortious or any other basis is hereby excluded; and |
(d) | the remedies or relief to which the Purchaser is entitled in respect of any Claim shall only be damages for breach of contract and/or an injunction against continuing or anticipated breach, and those for any tortious act of any Institutional Seller or Other Seller, including misrepresentation, negligence, other breach of duty or on any other basis, are hereby excluded. |
2. | Initial notice |
(a) | the Purchaser shall give notice to the Institutional Seller and Other Sellers in respect of all Claims specifying that fact, matter or circumstance in reasonable detail (including the Purchaser's estimate, on a without prejudice basis, of the amount of such Claim) as soon as reasonably practicable after it becomes aware of that fact, matter or circumstance. Neither the Institutional Seller or the Other Sellers shall be liable for any losses in respect of a Claim to the extent that they are increased, or are not reduced, as a result of any failure by the Purchaser to give notice as contemplated by this paragraph 2; |
(b) | the Purchaser shall (or shall procure that the Company or any other Group Company concerned shall) provide to the relevant Institutional Seller or Other Seller and their advisers reasonable access to premises and personnel and to relevant assets, documents and records within the Group Companies for the purposes of investigating the matter; and |
(c) | the relevant person or persons may take copies of the documents or records, and photograph the premises or assets, referred to in paragraph 2(b) of this schedule. |
3. | Time limit for notice |
4. | Time limit for commencing a Claim |
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5. | Financial limits |
6. | Payment of damages |
7. | Mitigation |
8. | Insurance |
9. | Contingent liabilities |
10. | Waiver of set-off rights |
11. | Remedy of breaches |
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12. | Consequential loss |
13. | No double recovery |
14. | No employee claims |
15. | Purchaser's knowledge |
(a) | is within the actual knowledge of Ted Wozniak as at the date of this agreement; |
(b) | to the extent that such fact, matter or circumstance concerns a financial matter, is within the actual knowledge of Tim Kolbeck as at the date of this agreement; |
(c) | to the extent that such fact, matter or circumstance concerns a health, safety, security or environmental matter, is within the actual knowledge of Tim Puylart as at the date of this agreement; or |
(d) | to the extent that such fact, matter or circumstance concerns a human resources or employment matter, is within the actual knowledge of Brad Davidson or Sheri Grissom as at the date of this agreement. |
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1. | GENERAL ACCOUNTING POLICIES |
1.1 | Purpose |
1.2 | Priority |
(a) | the specific accounting policies set out in paragraph 2 (Specific Accounting Policies) of this schedule; |
(b) | subject to paragraph 1.2(a), adopting the same basis of preparation as that used for, and in accordance with, the same accounting principles, policies, treatments, classifications, categorisations and practices as were applied to the Group in the preparation of the Management Accounts; and |
(c) | subject to paragraphs 1.2(a) and 1.2(b), in accordance with UK GAAP. |
2. | SPECIFIC ACCOUNTING POLICIES |
2.1 | No double counting |
2.2 | Going concern |
2.3 | Cut-off |
2.4 | Currency |
2.5 | Stock |
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2.6 | Sundry debtors |
2.7 | Sundry creditors |
2.8 | Exit Bonuses |
2.9 | Transaction Fees |
2.10 | Capex Prepayments and Capex Creditors |
(a) | Capex Prepayments (including prepayments in relation to any assets under construction) and Capex Creditors shall be excluded from the Final Working Capital (and Working Capital Estimate) and included in the Final Net Debt (and Net Debt Estimate). |
(b) | Any capex additions in relation to the Lundin Arrangements shall be treated as a reduction in Final Net Debt (and Net Debt Estimate). |
(c) | Any other assets which are capitalized on or after 30 June 2013 shall be treated as a reduction in Final Net Debt (and Net Debt Estimate). |
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2.11 | Corporation tax |
2.12 | Debt |
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Item | Reference | £ |
Enterprise Valuation | clause 1.1 (Definitions) | X |
Less: Net Debt Estimate | clause 1.1 (Definitions) | (X) |
Less: Exit Bonuses (grossed up to include the amount of employer national insurance contributions) | clause 1.1 (Definitions) and Schedule 5 (Basis of Preparation of Completion Statement and Final Completion Statement) | (X) |
Less: Transaction Fees | clause 1.1 (Definitions) | (X) |
Plus: Interim Working Capital Adjustment (if any) | clause 1.1 (Definitions) | X |
COMPLETION AMOUNT | X | |
Working Capital Estimate: | Schedule 5 (Basis of Preparation of Completion Statement and Final Completion Statement) | |
Stocks | X | |
Trade debtors | X | |
Sundry debtors | X | |
Trade creditors | (X) | |
Sundry creditors | (X) | |
Deferred income | (X) | |
Working Capital Estimate | X |
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Balance as at Effective Time | Final Net Debt | Final Working Capital | Other | |
Net tangible assets | X | X | X | |
Intangible assets | X | X | ||
Stock | X | X | X | |
Trade debtors | X | X | ||
Sundry debtors Deposits/Guarantees, Accrued Revenue, VAT/GST | X | X | X | X |
Cash | X | X | ||
Trade creditors | (X) | (X) | (X) | |
Corporation tax | X | X | ||
Sundry creditors, Songa Matter, Accruals, Payroll/Taxes | (X) | (X) | (X) | |
Loan finance − External | (X) | (X) | ||
Fair value of any interest rate hedges | (X) | |||
Deferred tax | (X) | (X) | ||
Deferred income | (X) | (X) | ||
TOTALS | X | (X) | X | X |
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Item | Reference | £ | £ |
Enterprise Valuation | clause 1.1 (Definitions) | X/(X) | |
Less: Final Net Debt | clause 1.1 (Definitions) | (X) | |
Less Exit Bonuses (grossed up to include the amount of employer national insurance contributions) | clause 1.1 (Definitions) and Schedule 5 (Basis of Preparation of Completion Statement and Final Completion Statement) | X | |
Less: Transaction Fees | clause 1.1 (Definitions) | X/(X) | |
Plus: Working Capital Adjustment under clause 8.6 (Payment of adjustment) and 8.7(Adjustments) | clause 1.1 (Definitions) | X/(X) | |
FINAL COMPLETION AMOUNT | |||
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1. | Purpose |
2. | Engagement |
3. | Initial written statement |
4. | Written response |
5. | Powers of the Independent Accountants |
(a) | be entitled to stipulate the time periods within which the Institutional Seller and the Purchaser shall prepare and submit the written statement and written comments referred to in paragraphs 3 (Initial written statement) and 4 (Written response) above (such time periods to be at least 14 days) and to disregard any written statement or comments not delivered to the Independent Accountants within the time periods so stipulated; |
(b) | be entitled to require such parties and their respective accountants to attend one or more meetings and to make enquiries of them about any matters which the Independent Accountants consider relevant; |
(c) | permit each such party to be present while oral submissions are being made by the other party; |
(d) | in the absence of agreement between the Institutional Seller and the Purchaser, be entitled to determine the procedure to be followed in undertaking their determination, insofar as the procedure is not set out herein; and |
(e) | be entitled to appoint advisers (including legal advisers) if required. |
6. | Assistance |
7. | Time |
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8. | Form of determination |
(a) | be limited to whether any arguments for the alteration to the Final Completion Statement put forward by the Purchaser are correct, and if so, what alterations should be made to correct any inaccuracy or error in the Final Completion Statement; |
(b) | be given in writing in the English language; and |
(c) | include the reasoning supporting the determination. |
9. | Determination final and binding |
10. | Role of Independent Accountants |
11. | Costs of the parties |
12. | Costs of the Independent Accountants |
13. | Retention of documents relating to dispute |
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