Chapter 23
Putting It
All TogetherTina L. Stark
Adjunct Professor of Law
Fordham University School of Law New York, New York
§ 23.04 A Proposed “Gen eral Provisions” Ar ticle
Page 646
Article X—GENER AL PROVISI ONS
[Communications Between the Parti es and with O thers]
Section X.01. No tices.
(a)
Requirement of a Writing; Permitted Methods of De livery.
Each party giving or making any notice, request, demand or
other communication (each, a “Notice”) pursuant to this
Agreement shall give the Notice in writing and use one of
the following methods of delivery, each of which for
purposes of this Agreement is a writing: personal delivery,
Registered or Certified Mail (in each case, return receipt
requested and postage prepaid), nationally recognized
overnight courier (with all fees prepaid), facsimile or e- mail.
(b)
Addressees and Addresses. Any party giving a Notice shall
address the Notice to the appropriate person at the
receiving party (the “Addressee”) at the address listed on
the signature page of this Agreement or to another
Addressee or another address as designated by a party in a
Notice pursuant to this Section.
(c)
Effectiveness of a Notice. Except as provided elsewhere in
this Agreement, a Notice is effective only if the party
giving the Notice has complied with subsections (a) and (b)
and if the Addressee has received the Notice.
Section X.02. Con fidentiality.
(a)
Obligation to Maintain Confidentiality. Except as
otherwise required by law, the party to whom disclosures
are made (the “Recipient”) shall not, and shall cause each
of its directors, officers, employees, agents, and
representatives (collectively, the “Representatives”) not to,
(i) disclose the Confidential Information (as defined in subsection (c)) to any person or entity other than the
Representatives of the Recipient that
(A) need to know the Confidential Information for the purposes contemplated by this Agreement; and
(B) agree to be bound by the provisions of this
Section;
or
(ii) use the Confidential Information for any purpose
other than the purposes this Agreement contemplates.
(b)
Return of Confident ial Information. Promptly upon the
written request of the Company, the Recipient shall, and
shall cause its Representatives to, return to the Company or
destroy all Confidential Information. If the Recipient
destroys the Confidential Information, it shall certify that it
has done so in writing and promptly deliver that certificate
to the Company.
(c)
Definition of Conf idential Informa tion.
(i) Definition. “Confidential Information” means
(A) all information relating to the Company or its business (whether provided in writing or
otherwise) that has been provided or shown to
the Recipient or any of its Representatives by or
on behalf of the Company or any of its
Representatives; and
(B) all notes, analyses, compilations, studies, and
other materials containing any information
described in subsection (c)(i)(A).
(ii) Exceptions. The term “Confidential Information”
excludes information that
(A) becomes generally publicly available other than
as a result of disclosure by Recipient or any of
its Representatives; or
(B) becomes available to the Recipient on a nonconfidential basis from a third party that is
not bound by a similar duty of confidentiality.
Section X.03. Announcem ents. Neither party may issue any press
release or make any announcement with respect to this Agreement
without the prior written consent of the other party. That party shall
not unreasonably withhold or delay its consent. Despite the
previous sentences of this Section, the parties (a) shall issue a joint press release in the form of Exhibit _____
immediately following the execution and delivery of this
Agreement; and
(b) are entitled to make any disclosures required by law.
[Determining Wha t Constitutes the Con tract]
Section X.04. Amend ments. The parties may amend this
Agreement only by a written agreement of the parties that identifies
itself as an amendment to this Agreement.
Section X.05. Waiv ers.
(a)
No Oral Waivers. The parties may any provision in waive
this Agreement only by a writing executed by the party or
parties against whom the waiver is sought to be enforced.
(b)
Effect of Failure, Delay or Course of Dealing. No failure
or delay
(i) in exercising any right or remedy, or
(ii) in requiring the satisfaction of any condition,
under this Agreement, and no act, omission or course of
dealing between the parties, operates as a waiver or
estoppel of any right, remedy or condition.
(c)
Each Waiver for a Specific Purpose. A waiver made in
writing on one occasion is effective only in that instance
and only for the purpose stated. A waiver once given is not
to be construed as a waiver on any future occasion or
against any other Person.
Page 649
Section X.06. Severabilit y. If any provision of this Agreement is
determined to be invalid, illegal or unenforceable, the remaining
provisions of this Agreement remain in full force, if the essential
terms and conditions of this Agreement for each party remain valid,
binding, and enforceable.
Section X.07. Merger. This Agreement constitutes the final
agreement between the parties. It is the complete and exclusive
expression of the parties’ agreement on the matters contained in this
Agreement. All prior and contemporaneous negotiations and
agreements between the parties on the matters contained in this
Agreement are expressly merged into and superseded by this
Agreement. The provisions of this Agreement may not be
explained, supplemented or qualified through evidence of trade
usage or a prior course of dealings. In entering into this Agreement,
neither party has relied upon any statement, representation,
warranty or agreement of the other party except for those expressly
contained in this Agreement. There are no conditions precedent to
the effectiveness of this Agreement, other than those expressly
stated in this Agreement.
Section X.08. Counterparts. The parties may execute this
Agreement in multiple counterparts, each of which constitutes an
original, and all of which, collectively, constitute only one
agreement. The signatures of all of the parties need not appear on
the same counterpart, and delivery of an executed counterpart
signature page by facsimile is as effective as executing and
delivering this Agreement in the presence of the other parties to this
Agreement. This Agreement is effective upon delivery of one
executed counterpart from each party to the other parties. In
proving this Agreement, a party must produce or account only for
the executed counterpart of the party to be charged.
[Financial and Ri sk Allocation Prov isions]
Section X.09. Indemnification. Party A shall indemnify and
defend Party B at all times after the date of this Agreement against
(a) any liability, loss, damages (including punitive damages), claim, settlement payment, cost and expense, interest,
award, judgment, diminution in value, fine, fee, and
penalty, or other charge, other than any Litigation Expenses
(as defined in subsection (b)), arising out of or relating to
[insert transaction specific information]; and
(b) any court filing fee, court cost, arbitration fee or cost,
witness fee, and each other fee and cost of investigating
and defending or asserting any claim for indemnification
under this Agreement, including, without limitation, in each
case, attorneys’ fees, other professionals’ fees, and
disbursements (collectively, “Litigation Expenses”).
Section X.10. Force Maj eure Event.
[Insert the follo wing definitions into the de finitions article.]
“Force Majeure Event” means any act or event, whether foreseen
or unforeseen, that meets all three of the following tests:
(a) The act or event prevents a party (the “Nonperforming Party”), in whole or in part, from
(i) performing its obligations under this Agreement; or(ii) satisfying any conditions to the obligations of the other party (the “Performing Party”) under this
Agreement.
(b) The act or event is beyond the reasonable control of and not
the fault of the Nonperforming Party.
(c) The Nonperforming Party has been unable to avoid or
overcome the act or event by the exercise of due diligence.
Despite the preceding definition of a Force Majeure Event, a Force
Majeure Event excludes economic hardship, changes in market
conditions, and insufficiency of funds.
“Nonperforming Party” has the meaning assigned in the definition of Force Majeure Event.
“Performing Party” has the meaning assigned in the definition of Force Majeure Event.
The following are the subsections of the Force Majeure Event
Section:
(a)
Suspension of Performan ce. If a Force Majeure Event
occurs, the Nonperforming Party is excused from
(i) whatever performance is prevented by the Force
Majeure Event to the extent prevented; and
(ii) satisfying whatever conditions precedent to the
Performing Party’s obligations that cannot be
satisfied, to the extent they cannot be satisfied.
Despite the preceding sentence, a Force Majeure Event
does not excuse any obligation by either the Performing
Party or the Nonperforming Party to make any payment
required under this Agreement.
(b)
Resumption of Performan ce. When the Nonperforming
Party is able to
(i) resume performance of its obligations under this Agreement, or
(ii) satisfy the conditions precedent to the Performing Party’s obligations,
it shall immediately give the Performing Party written
notice to that effect and shall resume performance under
this Agreement no later than two working days after the
notice is delivered.
(c)
Exclusive Remedy. The relief offered by this Force
Majeure provision is the exclusive remedy available to the
Nonperforming Party with respect to a Force Majeure
Event.
Section X.11. Transac tion Costs. Except as expressly provided in
this Agreement, each party shall pay its own fees and expenses
(including, without limitation, the fees and expenses of its agents,
representatives, attorneys, and accountants) incurred in connection
with the negotiation, drafting, execution, delivery, and performance
of this Agreement and the transactions it contemplates.
[Parties, Assigne es, and Third Party Beneficiaries ]
Section X.12. Assign ment and D elegation.
(a)
No Assignments. No party may assign any of its rights
under this Agreement, except with the prior written consent
of the other party. That party shall not unreasonably
withhold its consent. All assignments of rights are
prohibited under this subsection, whether they are
voluntary or involuntary, by merger, consolidation,
dissolution, operation of law or any other manner. For
purposes of this Section,
(i) a “change of control” is deemed an assignment of rights; and
(ii) “merger” refers to any merger in which a party
participates, regardless of whether it is the surviving
or disappearing corporation.
(b)
No Delegations. No party may delegate any performance
under this Agreement.
(c)
Ramifications of Purported Assignment or Delegation.
Any purported assignment of rights or delegation of
performance in violation of this Section is void.
Section X.13. Succe ssors and Assign s.
(a)
The Nonassigning Party’ s Performance Obligations. If
there is an assignment of rights, the nonassigning party is
deemed to have agreed to perform in favor of the assignee.
(b)
The Assignee’s Performan ce Obligations. If there is an
assignment of rights,
(i) a contemporaneous delegation is deemed to have occurred, and
(ii) the assignee is deemed to have assumed the assignor’s performance obligations in favor of the nonassigning party,
except if in either instance there is evidence to the contrary.
(c)
Assignability of Rights and Delegability of Perfor mance.
This Section does not address, directly or indirectly, whether
(i) rights under this Agreement are assignable; or (ii) performance under this Agreement is delegable.
Section [insert cross-reference to the assignment and
delegation provision] addresses these matters.
(d)
Definitions. For purposes of this Section,
(i) “assignment” means any assignment, whether voluntary or involuntary, by merger, consolidation,
dissolution, operation of law or any other manner;
(ii) “assignee” means any successor or assign of the assignor;
(iii) a “change of control” is deemed an assignment of rights; and
(iv) “merger” refers to any merger in which a party participates, regardless of whether it is the surviving
or disappearing corporation.
Section X.14. Third Party Beneficiaries. This Agreement does not
and is not intended to confer any rights or remedies upon any
Person other than the signatories.
[Interpretive Provi sions]
Section X.15. Number and Gender. Any reference in this
Agreement to the singular includes the plural where appropriate,
and any reference in this Agreement to the masculine gender
includes the feminine and neuter genders where appropriate.
Section X.16. Captions. The descriptive headings of the Articles,
Sections and subsections of this Agreement are for convenience
only, do not constitute a part of this Agreement, and do not affect
this Agreement’s construction or interpretation.
[Further Assuranc es]
Section X.17. Further Assurances. Each party and its officers and
directors shall use all commercially reasonable efforts to take, or
cause to be taken, all actions necessary or desirable to consummate
and make effective the transactions this Agreement contemplates.
After the Closing Date, each party and its officers and directors
shall use all commercially reasonable efforts to take, or cause to be
taken, all further actions necessary or desirable to carry out the
purposes of this Agreement.
[Dispute Resolu tion Provi sions]
Section X.18. Governin g Law. The laws of the State of
____________ (without giving effect to its conflict of laws
principles) govern all matters arising out of or relating to this
Agreement and the transactions it contemplates, including, without
limitation, its interpretation, construction, performance, and enforcement.9
Section X.19. Forum S election.
(a)
Designation of Forum. Any party bringing a legal action
or proceeding against any other party arising out of or
relating to this Agreement may bring the legal action or
proceeding in the United States District Court for the
[insert District location] District of [insert state name] or in
any court of the State of [insert state name] sitting in [insertcity name].
(b)
Waiver of Right to Contest Jurisdiction. Each party
waives, to the fullest extent permitted by law,
(i) any objection that it may now or later have to the laying of venue of any legal action or proceeding
arising out of or relating to this Agreement brought in
any court of the State of [insert state name] sitting in
[insert city name], or the United States District Court
for the [insert District location] District of [insert state name]; and
(ii) any claim that any action or proceeding brought in
any court specified in subsection (b)(i) has been
brought in an inconvenient forum.
(c)
Submission to Jurisdict ion. Each party to this Agreement
submits to the nonexclusive jurisdiction of
(i) the United States District Court for the [insert District
location] District of [insert state name] and its appellate courts, and
(ii) any court of the State of [insert state name] sitting in [insert city name] and its appellate courts,
for the purposes of all legal actions and proceedings arising
out of or relating to this Agreement.
(d)
Appointment of th e Process Agent. Party A irrevocably
(i) appoints [insert name of process agent] (the “Process Agent”) as its agent to receive service on behalf of
Party A and its property; and
(ii) authorizes and directs the Process Agent to accept
service on its behalf.
Party A shall pay all costs and expenses of the Process
Agent in connection with its service as Process Agent with
respect to this Agreement.
(e)
Service Upon the Process Agent. If process is to be served
pursuant to subsection (d), Party B shall serve that process
by mailing or delivering a copy of the process in care of the
Process Agent at [insert address of Process Agent] or any
other address as to which the Process Agent has given
notice to Party B.
(f)
Alternative Methods of Service of Process. Nothing set
forth in subsection (d) or subsection (e) affects the right to
serve process in any other manner permitted by law.
Section X.20. Arbitration. All controversies and claims arising
under or relating to this Agreement are to be resolved by arbitration
in accordance with the rules of the American Arbitration
Association before a panel of three arbitrators selected in
accordance with those rules. The arbitration is to be conducted in
________________. The arbitrators are to apply ___________ law,
without regard to its conflict of laws principles. Each party shall
submit to any court of competent jurisdiction for purposes of
enforcing any award, order or judgment. Any award, order or
judgment pursuant to the arbitration is final and may be entered and
enforced in any court of competent jurisdiction.
[Section X.21—Al ternative A]
Section X.21. Rights and Remedies Cum ulative. Any
enumeration of Party A’s rights and remedies set forth in this
Agreement is not intended to be exhaustive. Party A’s exercise of
any right or remedy under this Agreement does not preclude the
exercise of any other right or remedy. All of Party A’s rights and
remedies are cumulative and are in addition to any other right or
remedy set forth in this Agreement, any other agreement between
the parties, or which may now or subsequently exist at law or in
equity, by statute or otherwise.
[Section X.21—Al ternative B]
Section X.21. Exclusive Remedy. The rights and remedies
described in Section ____ are the exclusive remedy of either party
against the other arising out of or relating to this Agreement, except
(a) in the case of fraud, in which case the injured party has all rights and remedies available at law or in equity or by
statute or otherwise; and
(b) for the additional remedies specifically enumerated in Sections ______ and _______.
Section X.22. Waiver of Jury Trial. Each party knowingly,
voluntarily, and intentionally waives its right to a trial by jury
to the extent permitted by law in any action or other legal
proceeding arising out of or relating to this Agree ment and the
transactions it contemplates. This waiver applies to any actio n
or other legal proceeding , w hether sounding in contract, tort or
otherwise. Each party ackno wledges that it has received the
advice of compet ent counsel.