LTC 289-2009 Acquisition of Republic Services of Florida, LP, by Waste Services of Florida, Inc.t , ._ •
A ~ I 2i;G GCi 2,. %~ i l; ~ 50
OFFICE OF THE CITY MANAGER
NO. LTC # 289-2009 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager ~~~
/ 1
DATE: October 21, 2009 r li / ; .-~
SUBJECT. Acquisition of Republic Services of~ldrida, LP, by Waste Services of Florida,
Inc.
This Letter to Commission is to inform you that Republic Services of Florida, LP, currently
one of the five City licensed commercial solid waste franchisees, has executed an asset
purchase agreement with W aste Services of Florida, Inc., who is also a licensed franchisee.
The Asset Purchase Agreement dated October 5, 2009 is attached.
The current market share of the City's commercial solid waste is 6.42% for Republic
Services and 22.84% for Waste Services.
With this acquisition the number of franchise waste contractor will go from five to four. The
City Code states that "The City shall license not more than five franchise waste contractors".
In 1999, the City Commission approved renewal agreements with four franchise solid waste
contractors in exchange for not issuing a fifth license to fill a vacancy that had occurred. The
City was serviced by four franchise solid waste contractors until a fifth franchise agreement
was approved and signed in May 2009.
Should you have any questions, please do not hesitate to call me.
Attachment:
A. Asset Purchase Agreement
~I1FH6
Fltwork'•.$Al I:y1 j EA/PLOYEE FUL~FRS'•AIDA ORTIZ'•LTC'•naV~~ehion of Republic Svcs M FL.Ax
Attachment "A"
ExECt~~~lo'\ corgi
ASSET PURCHASE AGREENiF:NT
dated as of October 5, 2009
by and among
REPUBLIC SERVICES OF NLORIDA, LlA4ITED PARTNERSHIP,
REPUBLIC SERVICES, LVC. (solel}• for the purpose of Section 9.8),
WASTE SERVICES OF FLORIllA, INC.
and
WASTE SER~7CES. INC.
~Oi451;69 i:6)
F.XECLITIO\' COVI'
T.aBLr of coNTT~NTs
Page
ARTICLE T PURCHASE AND SALE OF ASSF.TS.....»».......» .......................... .............:1
1.1 Assels ......................................................................................................... ..............1
l ;? Excluded Asscts ..........................................•---........................................... ..............4
i.3 Assumed Liabilities ................................................................................... ..............5
1.4 Excluded Liabi]itics ................................................................................... .........°--•_
1.5 Non-Assigaunent of Certain Contracts ...................................................... ...............6
L(i Allocation of Purchase Price ..................................................................... ...............7
L7 Certain Custotner lasues' and Asset KeeoncIliations ................................. ...............7
ARTICLE Il PURCHASE PRICE Al~'D CLCISLNG ...............................»........... ....».........8
2.1 Purchase Price ........................................................................................... ...............8
2.2 Post-Closing Adluatment ......................°-...................---........................... ........-......£i
2.3 Closing ..................•---•--...................................................................---....... ...............9
2.4 Closing Deliveries by Sellcr .................°•--............................................... .............10
2.5 Closing llelivcrics by ~!lrSl and Buycr ...................................................... .............I l
ARTICLE II I REPRI?SF,NT.aTI01\S :4.N731!4'ARRANTIE:S OF SELLER ....... ......»»»..11
- 3.1 Organization and Qualiiicalion ................................................................. .............11
3.2 .Authorilu; Binding Effect ........................................................°---............ ...........-.12
3-3 Consents and Approvals; Nn Violation ................................................... ..............12
3.4 Compliance with Laws; Permita .............................................................. ..............13
3.5 Assets; Personas. I'roperty ........................................................................ ..............13
3.6
................................................................
Kcal Property .................. •--...... ..............13
3.7 Cortuac[s .................................................................................................. ..............14
3.8 Taxes ........................................................................................................ ..............I
3.9 Litigation .................................................................................................. .............. [
3.10 Events or Conditions Since July I , 2009 ................ ••• 1
3.] I Enviromnental Compliance; Hazardous Materials .................................. ..............IS
3.12 Employment. and Labor Matter.; .............................................................. ..............16
3.13 No Brokers' or Finder s Fces ................................................................... .............. ] 7
3.14 Financial lnfonnation .............................................°--.............................. ........---...17
ARTICLE I~' REPRESE~'T-A'I'lONS AND ~4'ARR,aNTIP:S OF Vi'SI A!Vll
BL'YER...» ...............».....................»»............................ »...............»»............17
4.1 Organization and QuaIificafion .............................................. ................................I
4.2 Authoriri'; Binding Effect ...................................................... ................................17
4.3 Consents and Appmeals; No Vio]ation ................................. ................................18
4.4 Litigation ................................................................................ ................................1 R
45 Vo Broker's or Finder's Fees .................................................. ................................ l8
4.6 .Svailablc Fwtds ..............................................•---................... ...-............................18
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ARTTCL;E V RF.SERVED..» ...............»..................»...............................:................. ..........19
ARTICLE VI ADDTTIUI~AL AGREEAIEN'1'5 .............»........._..»........................... .....•»"
6.1
Reserved .......................................................................................................
..........
19
6.2 Access to Information .................................................................................. ..........19
C.3 Title Insurance and Surveys ......................................................................... .........•t9
6.4 Prorations and Charges ................................................................................ ........?U
b.i R~servc~ ....................................................................................................... ..........20
6.6 Fee; and Expcnses ....................................................................................... ..........2(1
6.7 Reserved ....................................................................................................... ......... ~1
6.S Public Annaunccments ................................................................................ ..........31
G.9 Reserned ....................................................................................................... ..........'_1
6.10 Employees and Employee Benefits ............................................................ ...........21
6.I1 Governmental.Approvals ............................................................................ ..........?2
G.12 Restxvcd ...................................................................................................... .........-23
6.13 Waiver ofBulk Sales Laws ......................................................................... ..........:23
6.14 Removal of Idendfication ........................................................................... .......... ~3
6.I5 Further Assur:u~cc5 ...................................................................................... ...........23
6.16 Licn Releases .............................................................................................. ...........23
6.17 Replaccmcttt Performa„ce Bonds ............................................................... ...........24
6.I8 Restrictive Covcnants ................................................................................. .......... ~4
fi.l9 Certain Uther D4atters .............................................•---................................ ......--°•74
6.20 Buyer's and LVSI's Representativc ............................................................. ...........2~
(~ 21 Lockboxw and Crash Sweeps ...................................................................... ..........?5
ARTTCLE ~' Il I2ESERVED.....» ...............»..........................».................................... .....».....2G
ARTICLE ~7 iT RESERVED ..................................».................................................... ............2G
ARTi('LE T7C INDEIILNIP'ICATIU>\ .......» ...........................................»»............... ............2G
9.1 Survival of Representations, Warranties and CovcnanLs ........................... ........... ~6
9.2 [ndemnificationbvSeller ........................................................................... ...........26
9? Indetnnifica(ion by WSI and Buyer ........................................................... ...........'L7
9.4 Limitation on Liabi]itv° .........................................•°...................°----........ ............27
9.5 indemnification Procedure Between u'Sl, Buyer and Seller ..................... ............28
9.6 Procedure for lndcn,niilcation with Respect to "Third-Party Claims ......... ............28
9.7 Tax Treahnent of Pa~~rrent ......................................................................... ............29
9.8 IZSG Limit~l Guarar,ty' .............................................................................. ............'_9
ARTTCLE ~ NUNDISCLUSURE...........»» .............»...............»»..............».......... ............29
lU.l Nondisclosure by \~'SI and Buycr .............................................................. ............29
10:' Confidential tniormation ........................................................................... ............29
10.3 fixclusivity of Rc.~ncdies ............................................................................ ............30
IU.4 Equitable Relief ford'iolatioas .................................................................. ............30
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ARTICLE 7i1
ARTICLli7CiC GE!~GR4L ................................................................... ...................................38
]2.1 Assicnm:ut; Burding 1=ffect; .Amendment .......................... ...................................3R
.......................
12.2 Entire A~etxncnt .................. ....................... .................-............-....38
12.3 Counterparts ........................................................................ ..............................•---38
12.4 Notik,s ................................................................................ ...................................38
12.5 rio ~i'aiver ........................................................................... ...................................39
12.6 Captions .............................................................................. ...................................39
12.7 No Third-Party BeneGciaries .............................................. ..................................i9
..........................................
12.8 Severabifity ................ ...............
...................39
...............
12.9 Canstruction ....................................................................... ....................................39
ARTICLE a'CII DISPUTE R1rSOLOTION ......................................... ....................................40
13.1 General ............................................................................... ....................................40
132 Governing Law .................................................................. ...................................AO
13.3 Atwmcvs' Fees .................................................................. ....................................40
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ASSIr'C 1'UFtCHASE AGREEMENT
Titis ASSET PURCHASE AGREEMENT (the "A~reetnent") is executed and delivered
as of October 5, ?009, by and among l>;'ASTE SERVICES, INC., a Delaware corporation
("\\\\±SI") and WASTE SERVICES OF FLORIDA, TNC., a Delaware corporation ("Bu~~er"), on
the one hand, <wd REPUBLIC SEK\%ICES; [NC., a Delaware corporation {"RSG"} and
REPUBLIC SERVICES OE' FLORTDA. L.1MfTTED PARTNERSHIP, a Delaware linxited
partnership ("Seller'), on the other hand..411 capitalized Terms used in this Agreement shall have
the meanings ascxibed to them in Article XI of this Agreement. RSG is a part}• hereto solely for
the purpose of Section 9.R of this Agreement.
RECITALS
WHEREAS, Buyer desires to purchase and acquire certain designated Assets (as defined
in Section I.1) principal)}~ used or held #or use by Seller in umnection with the solid waste
urllection business in Miatni-Dade County, Florida (the `=Market"), subject to and in accordance
with tltc terms and conditions set firrth in this .Agreement; and
WHEREAS, Seller desires to sell the Assets to Buyer, subject to and in accordance with
the terms and conditions set forth in this Agreement:
NOS\', THERF,PORE, in consideraiion of the muftis) promisCS attd covenants in this
Agreement and other goad and valuable consideration, received to the full satisfaction of each of
the parties, Yhc parties agree as follows:
ARTICLE I
I'LiIZC11.4Sft .4ND S.4I,L OF ASSETS
}.l Assets. Cht the terms and subject to the conditions set forth in this Agreement, at
the Closing, Seller shall grant; cottvey, sell, transfer, deliver and assign to Buyer, artd Buyer shall
purchase from Seller: all of the right, Title and interest that Seller possesses and has the right to
transfer in and to the followvtg assets )Dental in the Mazket (wllectively; the "Assets'), but
excluding the Excluded Assets, free and clear of ail Encumbr:utces, except Permitted
Encumbrances and Blanket T.icns (which Blanket Liens shat[ be released by Seiler in accordance
with Section 6.16):
(a) The real property, improvements and fixtures owned by Seller which are
lisfui on Schedule 1.1.f al (such on'tted assets oi' Seller are referred to collectively as the "Uwned
Rzal_Pmncrty" or the "Real Pmncaty");
(b} The follott~ttg tangible personal property owned or leased by Scllcr as of
the Closing: (i) the automobiles, trucks, fork lifrs; construc,Kion vehiclc.~s and other motor vehicles
listed on Schedule 1.I(bl(ij, together with ali attachments and accessions thereto (collectively,
the "Rolline Stack") to the extent registered with any Crovemmental .Autharih (wllec,~ively; the
"Registered Rolling Stock"); {ii) fhc; number of containers and compactors located on-site with a
customer [hat relate to a Collection Account and listed nn Schedule l .l(b)(ii~; (iii) that number of
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additional containers and compactors stored on the Rea! Property and listed on
Schedule 1.1(b (iiil (a>llectively, together with the containers and compactors listed on
Schedule ].I(b) ii .the "Containers"); (iv) ail of the fanriture and africe equipment listed on
Schc~~iule 1.1(blfiv} (collectively, the "Office f: uipn~ent"); (v) all inventory of supplies, fuel.
parts, tires and maintenance accessories (collectively', the "Inventory"); and (vi) other tan~ble
assets listed on Schedule 1.1 (hj(i~~;
(c) Subject to Section 1.?. the following Contracts:
(i) All Contracts and other rights to provide small wntairter municipal
solid waste commercial and industrial calieeuon services to the active customers at the
locations on the service routes listed on Schedule l.l(c) it (collccticely, such customer
accounts are referred to herein as the "Collection Accounts", and the Contracts or other
rights to sen~ice the Callectinn Accomus are adlectively referred to herein as the
"Collection Contracts' ); and Schedule l.lfcl(il: (A) will be provided on the date hereof
to identify such CollecKion Accounts h}' customer numher and zip code and tv set forth,
with respect to each Collection Account, the scnrice t•eyuircments, container size and
standard montlil}' charge; and (Bi will lie updated within one (1) Business Day following
the Closine Datc to identify all customer information relating to the final Collection
Accounts transferred an the Closing Date, including customer name, services address.
bitting address, customer number, zip code, service requirements, c;antainer size and
standard monthly charge;
(ii) The Contracts with Governmental Authorities listed rnr Schedule
I .1 c ii (uillectively. the "Government Contracts");
(iii) The leases relating to the Rolling Stack listed on Schedule
1.1 c iii (cwlloetively, the "RuIlin~c Stawk Leases");
(iv) The leases relating to the machinery, heavy equipment and
materials handling equipment (in each case, other than Rolling Smckl (collectively, the
"~uinment") listed on Schedule 1.1 c iv ;
(v) The leases relating to the Office Equipment listed on Schedule
1.1 clb);
(vi) The employment arreetnettC.c listed on Schedule 1;1(cj_vi
(wllectively, the "Emuk>yment Contracts");
(vii) The a~ eemett[s relating m the Assets listed on Schedule
1.1 c vii ;and
(viii} 'those other Contracts of Scher na[ set forth on Schedule l.lfcl
solely to the extent (A) each such Contract relates primarily to the ownezship or operation
of the .Assets in the Market and requires by its terms annual expenditures after the
Closing in an amount lac than $25,000 and (B) such Contracts collectively do not
royuire by their terms expenditures otter the Closing of more dtan $100,000 (collectively,
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the "Permitted Unlisted C'ontracts." and together with all of cite Contracts des~7ibed in or
listed on the Schedules 1.1(c)(i)-(vii), collectively', the "Assorted Coutracis")
(notxvfthstanding anything herein to the contrary, an}' Contracts that are not listed on
Schedules 1.1(c)G)-(viii and do not constitute Permitted Unlisted Contracts will not be
included as Assumed Contractsl;
(dl All accounts receivable of Seller arising from the (.:ollection Accounts
which will be listed an Schedule _1_'1(d~, (collectively, the "Accounts Receivable"!, which
schedule will he delivered by Seller to Royer within 5 Business Days following the Closing
Date; provided, however, that Accounts Receivable shall exclude an}' utter-company acwunts
receivable and accounts receivable of Seller related to any National Accounts;
(e) All of the (i) operating records. customer records, maintenance files,
en<~ineering studies; plans and specifications of Seller to the extent related to any .Assets in the
Market (in whatever fnnnat the}' exist, whether in hard copy or electronic format) and (ii) to the
extent transferable under Applicable Law, human rcaourcxs records, ;ntployee personnel files
(including all employes benefit files and employee investigation files. ii' applicable) and related
files (collectively, the "Employee Records") related to employees of Seller hired by Buyer in
connection with the Transactions, but excluding arty such tiles, doctunents, books and records
that constitute Excluded Assets pursuant m Section 1 3 and excluding past a-mails that are aoi
part of such files; documents, books and records and that instead may he stor~l on servers or
netxvorks of Seller or otht,•rwise included in the Excluded Assets (wllectively, the "Records"l;
roxided; however, that Selhx may retain a copy of (.41 all Employee Records and (B) all other
records and files transferred to Buyer pursuant to this Agreement, including those needed to
comply with any regulations, investigations, audits, or inquiries or for ongoing matters relating to
the Excluded Assets, including all disputes aIId litigation matters;
(f) 't'he computer httrdware and software of Seller that is listed and described
on Schedule l.l~f ;
(g) Alt of the IP Rig}tts listed on Schedule l .l (>:);
(h) All Permits related to the ownership, operation; management or use of the
Assets in the Market that arc owaaecl b}', issuexl fu, or held by or othcnvise benefiting Seller and
transferable by their respective terns to Buyer;
(i) The crcxlits, deferred charges, prepaid expenses, deposits and other prepaid
assets, other than those related to Taxes (exupt for any prepaid sales Taxes and property'1'axes
relating to the fixed assets included within the Assets), of Seller principally related to the Assets
and listed and descn`hed on Schedule l.l(il (collectively, the "Prepaid Assets°); and
(j) All right, title and interest in and to the dedicated telephone and fax
numbers, post office boxes and telephone listings of Seller listed on Schedule 1__ ] ijl:
To the extent any Re~*istered Rolling Stock is oxxmed other than by Seller, Seller shall cause such
Registered Rolling Stock to be sold to Buyer at Closing h}' the cuticles holding title therzto
(colletafvely, the "?.dditional Vehicle Seller").
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1.2 Excluded Assets. Notwithstanding anything to the contrar} in Section 1.1 but
subject to Section 1_7, the parties agreti; that the Assets shall exclude any asset< of Seller that. are
not expressly desimtated as Assets pursuant to Seclion l.l, which excluded assets of Seller shall
remain the property of Selier and shall not be sold to Buyer or WSI at the Closing (collective)}•,
the "Excluded .Assets"), including, without limitation; tlu following Excluded Assets:
(a) The Purchase Price to be paid by Buyer to Seller pursuant to Seclion 2.1
Seller's other rights under this Agreement or any Andilar}' Agreement;
(b) All cash or cash equivalents on hand or held in any account of Seller
(including all chec~ng, savings. depository or other- accounts),. and a1 batil: accounts and escrow
accounts of Seller;
{c) All accounts receivable and notes receivable of Selier related to or arising
out of transactions between Seller, on the one hand, and an}• subsidiary or Affiliate of Seiler (any
such subsidiaries or Affiliates of Seller an collectively referred to as the "Selier Companies"),
on the other hand;
{d) All stock, m~-mbership interests, parhaership intereste or uth~z ownership
interests in Seller or any Seller Companies;
(e) Except ae otherwise pmvided in Section I.1(e), all corporate or o4tcr
etttity-level Records of Seller or Seller Companies, including, without limitation, corporate
charters, yualiticatiuns to conduct business as a foreign wtporation, atrrangements with
registered a;ents relating to ioreigu qualifications, taxpayer and other identification numbers,
seals, minute books, stuck transfer books. Tax Records, blank stock certificates and other
documents relating to the organization, maintenance and existerrce of Seller or any Seller
Cumpartics;
(f) $xcept as otherwise provided in Section l.l~, .nay Records of Seller to
the extent related to any bxcluded Assets or Excluded Liabilities {including, v,~ithout limitation,
files relating to Taxes and personnel Slcs);
(g) Ali rights oC Sella with respect to any proceedings, causes of action and
claims of suety natutc, kind and description, including. but. not limited to, all rights, claims,
Bens, rig}tts of setoff, offset or rewupmcnt, defenses, lawsuits, ,judgments and other Maims or
demands oi' any nature against third parties whcthet• liquidated ur uniiquidau:d, fixed or
contingent or otherwise;
(h) x111 rights under arty insurance poticics of Seller or auy Seller Compates.
including, without (imitation, an}' cash surrender t•alue under any such instu:utce policafs:
(i) .All claims for any refunds of Taxes and other govo~tnmental charges
ateributable to any period ending on or before the Clusntg Date;
(j) All assets held under any employee benefit plans maintainexl by or for the
Uenefit of Seller;
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(k) All prior title insurance policies and : ommitments, deeds and surveys
covering any Real Property issued to. on behalf of or for the benefit of Scilcr or any Seller
Companies: provided, however, that Seller agrees t<> provide atpies of the foregoing to the extent
in the possession and control of Seller;
(1) Any computer hardware and sofhvare owned or leased by, or licensed to,
Seller that is not Iisted on Schedule_1.1(ft (including, without limitation, all billing. route
management and other software programs in addition to basic operating systems);
(m) All rights, title and interest in any financial msponsibility, ftnancial
assurance or similar mechanisms;
(n} Such other assets of Seller that arc listed on Schedule I:?tnl; and
(o) The 1\ational Accounts.
13 Assumed Li•tbiliti.es. At the Closing. subject to Article L~, Buyer and WSI shall
jointly and severally assume from Seller, and shall agree to pay, perfornt and discharge what
due, the following Liabilities of Seller {the "Assumed Liabilities");
{aj .''Ll] Liabilities arising under or pursuant to the Assumed Contracts, the
Collection Accounts and tltc Rcal Propety;
(l+) All Tiabilities for the customer deposits (the "Customer I7r~sits'') and
deferred revenue obligations (the "Deferred Revenue") Iisted ou Schedule 13(b);
{cj Any and all. Liabilities relating to the Assets with respect to Emimnmental
Laws and Permits whether such Liabilities relate to periods preceding or folloca~ing the Closing,
including all closure/post-closure Liabilities with respect to the Assets (includings, such Permitsl
and all obligations under Appli<;able Laws {including Envimtunental La~a~s) to establish accruals
for such Liabilities:
(d) All Liabilities for Taxes relating to the Assets aanting on or after the
Closing Datc. ntcluding T~•txes relating to the Raal Propem {subject to the teens of Section 6.4};
(c) All Liabilities Iisted on Schedule 1.3(e);
(f) All other Liabilities which Buyer and/or l><'Sl expressh agree to assume
pursuant to this Agreement; andior
(g) Any other Liabilities (other than Excluded Liabilities) of any nature
whatsoever, whether legal or equitable, or matured or contingent, azising out of or in connection
with or related to the owttcrship, lease, operation, performance or use of tltc Assets after the
Closing Date.
1.4 Excluded Liabilities. At the Closing, subject to ,4riicle IX, neither Buyer nor ~~'SI
shall, by the execution and pcrfomrance of this Agrcetnent or othcnvise, assume, become
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responsible for or incur the following Liabilities of Se][er (collcc-tively, the "Excluded
l.iabilitics"j:
(a) 1•:xcept to the extent includes. in the Assumed I,iahiiities, any liabilities of
Seller or any Seller Companies for Taxes, whether or not accrued, assessed or currently due and
payable, including any Taxes arising from the use or the ownership of the AsscL~ for any Tax
period (or portion thereof) ending on or prior to the Closing Date;
(b) Subject to the terms of Section 6.6, any Liabilities of Seller firs expenses
incurred in connection with the sale of the Assets pursuant to this Agneement;
(c) Any inter-company payablc-s or receivables hehveen Seller and any Seller
Companies:
(d) Any Liabilities of Se1k7 or any Seder Companies sisitt~ out of• or in
cormec5on with or related to the ownership or use of the Assets on or prior to the Closing Date
That do not wnstitute Assumed Liabilities: and
(c) Any Liabilities arising under that cert~rin (i) Mortgage in the original
principal amount of $225,000.00 executed by Lawson Realty, Inc. in favor of Carlo Casagrande
dated June 17, 1988, recorded June'?l; 1988, in OtTicial Records Book l ~?22, T'uge 173:+ and
(ii) Mortgage in the original ptincipai amount of $225,UOU.00 executed i+y Lawson Realty; Tnc. in
favor of Carlo Casagrande dated June 17, 1958, recorded Jtme 21; 1988, in Official Records
Book 1.722, Page 1?35.
I.5 Non-Assienment of Cel1ain Contracts. Nom+ithsrtanding anything to the contrary
in this .4greetnent. to the extent that the assignment hereturder of any Assumed Contract shall
require the consent of any third party, neither this Agreement nor any action taken pursuant to its
provisions shall constitute an assignntcttt or an agreement to assign ii' such assignment or
agreement to assi~r would constitute a breach of such Assumed Contract or result in the loss or
material diminution thereof; provided, how•evcr, that Seller shall. at the request of Buyer, use
commercially reasonable efforts to obtain the consent of llie other party to such Assumed
ContracK to an assignment thereof in favor of Buyer; further mp videdr however. that iI any
Assumed Contract requires consent for asaitmment in favor of Buyer and such consent is not
obtained; Seller shall, to the extent requested by Buyer' and contracnrally permitted. u.Qe
commercially reasonable efforts to enter into an operating agreerncnt with Buyer affording Buyer
the rights, benefits and obligatioati under such .4ssumed Contract as if such a>nsent to
assi•s~unent had been obtained (each, an "Oneratina A~eement"). Its the event that the consettt
w assism any such Assumed Contract is obtained, such Assumed Contract thereupon shall be
immediateh assigned from SeIler to Buyer. Notwithstanding the foregoing, subject to Section
1_7, if such accommodation to the Seller under an Operating Agreement is not contractually
pcrn»tted, Seller shall not have any obligations to provide Buyer or ~YSI with the rigftts, benefits
or obligations under such Assumed C:antract following the C7osittg. Notwithstanding anvfhiag in
this Agreement to the contrary, in no event shall Seller be obligated to pay airy fees,
cxrnunissions or other compensation to obtain the cvnsettt of a third party for the assignment
heretmder of any .4ssmned Contract, and in no event shall Seller he Eiable for a»y losses or
LiabiIi[ics tvhic;h are the result of any failure to obtain, or any decision by any party' hereto not to
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ex>/ctrrto?v coPi•
obtain, any comsent of a third party to the assignment or subcontracting of any Contract which is
included, or intended to be included, among the Assets.
1.6 _Alloeation of Purchase Price. 'I'hc Purchase Price (including any !iubIlities That
azo considered to be an increase to the Purchase Price for fxleral income tax purposes) shall be
allocated among the Assets in a document prepazcd by Buyer in good faith and delivered w
Seller within sixty (60) days after' the Closing llate (and adjusted within sixty (60) days after the
Actual True-Up Amount is finallc detemvned purstr<3rtt to Section 2'). Such tlocation shall be
determined in acwrdance with the reyuirentents of Cvde Section 1060 and based on the fair
mazket value of the Assets as determined by arm's length negotiations. Tn the event that Seller
disputes in goad faith Buyer's allocation and such dispute is not resolved by agreement upon a
final Purchase Price allocation within ten {10) Business Days after delivery of Buyer's Purchase
Price allocation. such dispute shall be submitted to an independent acaiuntant mutually
agreeable to Seller and Buyer (the "Ac;coutttant"). The Accountant shall deliver its writfen
determination ~~7thin thirty {30j days of receipt. of the matter, and the Accountant's determination
shall ire final, bittdutg and conclusive vn the Parties for federal, state and local income tax
purposes in connection tivith the transactions contemplated hereby. The parties agree to file (or
cause tv he filed) li) all required ledcrai Dorms 8594, Asset Acquisition Statement under Section
10Ei0, and (ii) all other Tax Returns (including amended Tax Returns and claims for refund) in a
manner consistent with such allocation of the Purchase Price described in this Section 1.C. The
parties agree to refrain Crom taking any position that. is inwnsistent with such allocation, and to
use their commercially rcasvnable efforts to sustain such allocation in any subsequent Tat audit
or Tax dispute.
I.? Certain Customer Issues and Asset Recanciliations.
(a) Nonadthstanding anyllting to the wntran• in this Agreement, following the
date of this Agreement, Seller will use its commercially reasonable efforts to identify any
customer issues relating tv National Accouets (ewllectivel}~, "Customer Issues").
(b) 1f, at any time a[ler the Closing Date, either Seller crt Buyer determines in
gvod faith that any Contract (whether or not an Assumed Contract, and including any Contract
right related to a Collection Account) relates both to Yhc Assets and to assets, facilities or
customers of Seller or any' Affiliate of Seller that are not included in the Assets, the parties will
use their good faith efforts tv enter info aratgements, including subcontracting arrangements,
bificrcaGon arrangements, operating agreements and: or modifications of the applicable Contract,
to allocate reasonably and fairly the benefits and burdens thereof based vn the relationship of
such Contract to the Assets and such assets, facilities ar customers. IG at any time after the
Closing Uatc, either Seller or Buyer identifies any tangible personal property (whether or not
listed on the schedules hereto), Contract right or other asset that Seller or Buyer. as the case may
he, reasonably concludes in goad faith (i) was included in the conveyancea hereunder by Sclter
to Buyer, (ii} was not used or held in amnecfion with Ehe ownership or operation of the Assets.
and (iii) wz~s inadvertently conveyed in error b}' Seller to Buyer, the parties will use goad faith
efforts to cause such tangible personal property, Contract right or other asset to be rewnvcyed to
Seller or, if' such conveyance is not reasonably practicable, to enter into ather arran~emettts
affording Seller the benefit of such tangible persona] property or Conu-aci tight. If; at any time
after the Closing Date, Seller or Buyer identifies am' tangible personal property, Contract right
(owsossr:et -? -
FXECL"1'lON COPT
(whether or not listed on the schedules hereto) o. other asset that that Seller or Buyer, as the case
maybe, reasonably concludes in good faith (i) was not included in the conveyanecs hereunder by
Seller to Buyer. (ii) was used or held in connection with the ownership or operation o£ the
Assets; and (till was inadvertently omitted in error from the conveyazuzs hereunder by Seller to
Buyer, the parties will use good faith efforts to cause such tangible personal property, Contract
right or other asset to be conveyed to Buyer or, if such conveyance is not reasonably practicable,
to enter into other arrangements affording Buyer the benefit of such tan~'ble personal property or
Contract right. unless otherwise weed, neither Buyer nor Seller shall be entitled to any
additional compensation for az~y conveyances made ptusttant to this Section 1.7(61.
TN \4'I'fNESS \~'HERIOF, the panics have caused this Agreement to be duly executed
by their respective authori~xd officers as of the day and year first above ~~.~ritten.
~YSI ANI) BTJYER:
WASTI: SER\%1CES, INC
Bv: rc!h~anR. Cairns
Name: Ivan R. Cairna
Title: Executive Vice President R Sceretarv
WASTE SERVICES OF FLORIDA, INC.
By: !s! Ivan R. Cairns
Name: Ivan R. Caims ._
'title: Vice Yres~dent ~:. Sacretarv
S.F.LLER:
KEPUBLIC SERVICES OF FL.ORID.A, LIMITED
PARTNIrRSI-111'
By: Republic Services of Florida GP, Inc.
Its: General Partner
Bti: is+' Tim Benter
Name: Tim Benter
Title: Vice President
Solely for the purpose of Sectirnt 9.R of this
A~'eement:
REPUBLIC' SERVICES. IBC.
By: isi Tim Benter
Name: 'fim Benton
Title: Vice President and Assistrnt Stxxetart'