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Title: |
Acquisition Agreement |
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Entities: |
Clean Harbors Inc.; Clean Harbors, Inc.; McKinsey & Co.; Safety-Kleen Corp.; Milbank, Tweed, Hadley & McCloy; Skadden, Arps, Slate, Meagher & Flom LLP; Weil, Gotshal & Manges LLP; Safety-Kleen Corp.; safety kleen corp/ |
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Date: |
2002 |
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Size: |
Preview shows 18KB of 216KB total |
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Price: |
$85 |
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ID: |
#137814 |
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Start of Preview |
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ACQUISITION AGREEMENT
by and between
SAFETY-KLEEN SERVICES, INC.,
as Seller,
and
CLEAN HARBORS, INC.,
as Purchaser
Dated as of February 22, 2002
{PAGE}
{TABLE}
{CAPTION}
TABLE OF CONTENTS
{S} {C}
ARTICLE I
PURCHASE AND SALE ASSETS...................................................................2
Section 1.1. Acquired Assets..............................................................2
Section 1.2. Excluded Assets..............................................................6
Section 1.3. Assumed Liabilities..........................................................8
Section 1.4. Amounts Due Under Executory Contracts and Unexpired
Leases; Cure Costs.........................................................9
Section 1.5. Excluded Liabilities.........................................................9
Section 1.6. Purchase Price...............................................................9
Section 1.7. Purchase Price Adjustment...................................................10
Section 1.8. Allocation of Cash Purchase Price for Tax Purposes..........................13
ARTICLE II
THE CLOSING...............................................................................13
Section 2.1. Closing.....................................................................13
Section 2.2. Deliveries at Closing.......................................................14
ARTICLE III
REPRESENTATIONS AND WARRANTIES OF THE SELLER..............................................16
Section 3.1. Organization................................................................16
Section 3.2. Capitalization of Transferred Subs..........................................17
Section 3.3. Authority Relative to this Agreement and the Ancillary
Agreements................................................................17
Section 3.4. Consents and Approvals......................................................18
Section 3.5. Financial Information.......................................................18
Section 3.6. No Violations...............................................................18
Section 3.7. No Default; Compliance with Applicable Laws; Permits........................19
Section 3.8. Title to Property...........................................................19
Section 3.9. Conduct of Business.........................................................20
Section 3.10. No Undisclosed Liabilities.................................................20
Section 3.11. Taxes......................................................................20
Section 3.12. Real Property Leases.......................................................21
Section 3.13. Brokers....................................................................21
Section 3.14. Ability to Conduct Business................................................21
Section 3.15. Employee Benefit Plans.....................................................21
Section 3.16. Labor Relations and Employment.............................................23
Section 3.17. Litigation.................................................................23
Section 3.18. Principal Customers........................................................23
i
{PAGE}
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER...........................................23
Section 4.1. Organization................................................................23
Section 4.2. Authority Relative to this Agreement and the Ancillary
Agreements................................................................24
Section 4.3. Consents and Approvals......................................................24
Section 4.4. No Violations...............................................................24
Section 4.5. Brokers.....................................................................25
Section 4.6. Financing; Solvency.........................................................25
ARTICLE V
COVENANTS.................................................................................25
Section 5.1. Bankruptcy Actions..........................................................25
Section 5.2. Bidding Procedures..........................................................26
Section 5.3. Conduct of Business by the Seller Pending the Closing.......................34
Section 5.4. Access and Information......................................................35
Section 5.5. Approvals and Consents; Cooperation; Notification...........................36
Section 5.6. Additional Matters..........................................................37
Section 5.7. Employment of Business Employees............................................37
Section 5.8. No Implied Representations or Warranties; Due Diligence.....................39
Section 5.9. Books and Records...........................................................39
Section 5.10. Financial Assurance Matters................................................40
Section 5.11. Real Estate Due Diligence..................................................40
Section 5.12. Notification of Motion to Reject Certain Contracts;
Additional Executory Contracts and Unexpired Leases.......................42
Section 5.13. Additional Financial Information...........................................43
Section 5.14. SEC Request................................................................43
Section 5.15. Covenant Not to Compete; Non-Solicitation..................................43
Section 5.16. Investment Canada Act......................................................46
Section 5.17. Schedule Amendments........................................................46
Section 5.18. Non-Domestic and Non-Canadian Operations...................................46
ARTICLE VI
CONDITIONS PRECEDENT......................................................................46
Section 6.1. Conditions Precedent to Obligation of the Seller and
the Purchaser.............................................................46
Section 6.2. Conditions Precedent to Obligation of the Seller............................47
Section 6.3. Conditions Precedent to Obligation of the Purchaser.........................48
ARTICLE VII
TERMINATION, AMENDMENT, AND WAIVER........................................................49
Section 7.1. Termination Events..........................................................49
Section 7.2. Effect of Termination and Abandonment.......................................51
ii
{PAGE}
ARTICLE VIII
GENERAL PROVISIONS........................................................................52
Section 8.1. Indemnification.............................................................52
Section 8.2. Survival of Representations, Warranties, and Agreements.....................53
Section 8.3. Payment of Certain Taxes....................................................53
Section 8.4. Notices.....................................................................53
Section 8.5. Descriptive Headings; Rules of Construction.................................54
Section 8.6. Entire Agreement; Assignment................................................55
Section 8.7. Governing Law...............................................................55
Section 8.8. Expenses....................................................................55
Section 8.9. Amendment...................................................................55
Section 8.10. Waiver.....................................................................55
Section 8.11. Counterparts; Effectiveness................................................56
Section 8.12. Severability; Validity; Parties in Interest................................56
Section 8.13. Apportionment of Property Taxes............................................56
Section 8.14. No Section 338 Election....................................................56
Section 8.15. Taxes and Tax Returns......................................................56
Section 8.16. Tax Matters Involving Third Parties........................................57
ARTICLE IX
DEFINITIONS...............................................................................57
iii
{PAGE}
TABLE OF SCHEDULES
Schedule 1.1(a) Transferred Subs
Schedule 1.1(b)(i) Accounts Receivable
Schedule 1.1(b)(ii)(A) Customer Contracts
Schedule 1.1(b)(ii)(B) Vendor and Service Contracts
Schedule 1.1(b)(ii)(D) Other Contracts
Schedule 1.1(b)(iii) Tangible Personal Property
Schedule 1.1(b)(iv) Intellectual Property
Schedule 1.1(b)(v) Excluded Claims, Rights and Causes of Actions
Schedule 1.1(b)(vi)(A) Owned Real Property
Schedule 1.1(b)(vi)(B) Real Property Leases
Schedule 1.1(b)(vii) Licenses, Permits, Authorizations and Approvals
Schedule 1.1(b)(viii) Bank Accounts and Lockbox Arrangements
Schedule 1.1(b)(ix) Prepaid Items and Deposits
Schedule 1.1(b)(xi) Other Acquired Assets
Schedule 1.1(d) Domestic Transferred Subs
Schedule 1.2(h) Pinewood Subsidiaries
Schedule 1.2(l) Other Excluded Assets
Schedule 1.7(a) Initial Working Capital Statement
Schedule 1.8 Allocation of Purchase Price
Schedule 3.1 Organization
Schedule 3.4 Certain Required Consents and Approvals
Schedule 3.5 Financial Statements
Schedule 3.7 Certain Defaults
Schedule 3.13 Brokers
Schedule 3.15(a) Employee Benefit Plans
Schedule 3.16 Labor Relations
Schedule 3.17 Litigation
Schedule 5.3 Conduct of Business
Schedule 5.7(a)(i) Excluded Employees
Schedule 5.7(a)(ii) Purchaser Severance Policy
Schedule 5.10(i) Covered Facilities
Schedule 5.10(ii) Participating States
Schedule 5.10(iii) Parallel Action States
Schedule 5.11(b) Material Properties
Schedule 5.15 Covenant-Not-To-Compete
Schedule 9.1 Selling Subs
iv
{PAGE}
TABLE OF EXHIBITS
Exhibit A Form of Bill of Sale
Exhibit B Form of Assignment and Assumption Agreement
Exhibit C Form of Disposal Agreement
Exhibit D Form of Bidding Procedures Order
Exhibit E Form of Section 363/365 Order
{/TABLE}
v
{PAGE}
ACQUISITION AGREEMENT
THIS ACQUISITION AGREEMENT, dated as of February 22, 2002
(the "Agreement"), is made by and between Safety-Kleen Services, Inc., a
Delaware corporation (the "Seller"), and Clean Harbors, Inc., a
Massachusetts corporation (the "Purchaser"). Capitalized terms used herein
and not otherwise defined shall have the meanings set forth in Article IX.
WHEREAS, the Seller, through its Chemical Services
Division, is engaged in the business of providing hazardous and
non-hazardous waste collection, treatment and disposal services in the
United States and Canada through the operation of incinerators, landfills,
wastewater treatment facilities, service centers, deep injection wells and
other facilities all as more fully described in Safety-Kleen Corp.'s most
recent Form 10-K filed with the SEC (as currently conducted by the Chemical
Services Division, the "Business");
WHEREAS, on June 9, 2000 the Seller, along with certain
of its Affiliates, filed voluntary petitions (the "Petitions") for relief
commencing cases (collectively, the "Chapter 11 Case") under chapter 11 of
title 11 of the United States Code (the "Bankruptcy Code") in the United
States Bankruptcy Court for the District of Delaware (the "Bankruptcy
Court"); and
WHEREAS, the Purchaser and the Purchasing Subs desire to
purchase and acquire and the Seller and the Selling Subs desire to sell,
convey, assign and transfer, or cause to be sold, conveyed, assigned and
transferred, to the Purchaser and the Purchasing Subs, the Acquired Assets
and the Purchaser and the Purchasing Subs are willing to assume, and the
Seller and the Selling Subs desire to assign and delegate to the Purchaser
and the Purchasing Subs, the Assumed Liabilities, all in the manner and
subject to the terms and conditions set forth herein and in accordance with
Sections 105, 363, 365 and 1141 of the Bankruptcy Code (the sale and
purchase of the Acquired Assets and the assignment and assumption of the
Assumed Liabilities is referred to as the "Acquisition").
{PAGE}
NOW, THEREFORE, in consideration of the foregoing and the
respective representations, warranties, covenants, and agreements set forth
herein, the parties hereto agree as follows:
ARTICLE I
PURCHASE AND SALE ASSETS
Section 1.1. Acquired Assets. On the terms and subject to
the conditions set forth in this Agreement and subject to approval of the
Bankruptcy Court under Sections 105, 363, 365 and 1141 of the Bankruptcy
Code, at the Closing the Seller shall sell, assign, transfer, convey, and
deliver, and cause the Selling Subs to sell, assign, transfer, convey and
deliver to the Purchaser and the Purchasing Subs, free and clear of all
liens, claims, interests and encumbrances of any nature except for
Permitted Exceptions, and the Purchaser and the Purchasing Subs shall
purchase and accept from the Seller and the Selling Subs (collectively, the
assets set forth in Section 1.1(a), Section 1.1(b) and Section 1.1(c) are
referred to as "Acquired Assets"):
(a) all of the outstanding equity interests (the
"Interests") of the subsidiaries of the Seller set forth on Schedule 1.1(a)
(each a "Transferred Sub" and collectively the "Transferred Subs").
(b) all legal and beneficial right, title, and
interest of the Seller and of each Selling Sub in and to any and all assets
of every kind and description, whether tangible or intangible, real,
personal or mixed, wherever situated, owned, held or used by the Seller (or
any Selling Sub) or in which the Seller (or any Selling Sub) has any right,
title or interest that is owned, directly or indirectly, leased or
otherwise held primarily for use in the Business, except for the Excluded
Assets and except for any executory contracts and leases which are not
specifically listed on Schedules 1.1(b)(ii)(A), 1.1(b)(ii)(B),
1.1(b)(ii)(D) or 1.1(b)(vi)(B), and specifically including the following:
(i) all accounts receivable (which are
not excluded pursuant to Section 1.2(b)) arising out of the
operation of the Business existing on the date hereof including,
without limitation, those listed or described on Schedule
1.1(b)(i), or arising in the ordinary course under the Customer
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