Document:

Exhibit

10.10

 

STOCKHOLDER

COVENANT NOT TO COMPETE
AND OTHER POST-ASSET SALE

OBLIGATIONS

 

THIS AGREEMENT (“Agreement”) is made and entered into May 16,

2003 (the “Effective Date”),

by and between Green Light Acquisition Company, a Delaware corporation (the “Company”), and Basil

K. Vasiliou, a beneficiary of a stockholder (the “Stockholder”), in U.S. Traffic Corporation,

a Delaware corporation (“Seller”).

 

RECITALS

 

A.                                   The Stockholder which owns fifteen percent

(15%) of the outstanding capital stock of Seller.

 

B.                                     The Company intends to enter into an asset

purchase agreement of even date herewith (the “Asset Purchase Agreement”) whereby the

Company will acquire substantially all of the assets and good will of Seller

and its wholly-owned subsidiary, Myers/Nuart Electrical Products, Inc. (“Myers”) which are

defined in the Asset Purchase Agreement as the “Business”. Capitalized terms

which are not otherwise defined herein shall have the meanings ascribed to such

terms in the Asset Purchase Agreement.

 

C.                                     The Company’s willingness to enter into the

Asset Purchase Agreement is conditioned upon, among other things, its ability

to protect the value of the goodwill of the Business it is acquiring by virtue

of the Asset Purchase Agreement. The Company and the Stockholder acknowledge

that (i) the Stockholder’s entry into this Agreement is critical to the

Company’s ability to protect the value of the goodwill of the Business the

Company is acquiring in the Asset Purchase Agreement and (ii) the Stockholder’s

execution and delivery of this Agreement is a condition precedent to the

Company’s consummation of the acquisition contemplated by the Asset Purchase

Agreement.

 

D.                                    The Stockholder acknowledges that as a

significant stockholder in Seller, and an individual with significant

responsibilities in managing the businesses and operations of Seller and Myers,

he had regular access to various confidential and/or proprietary information

relating to the Business.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the

foregoing recitals, and the mutual agreements herein contained and other good

and valuable consideration, the receipt and sufficiency of which are hereby

mutually acknowledged, the parties hereby agree as follows:

 

1.                                      Non-Disclosure Covenant.

 

(a)                                  For

a period of five years after the Effective Date, the Stockholder shall not, and

shall cause his Affiliates not to either directly or indirectly, disclose to

any “unauthorized person” or use for the benefit of the Stockholder or any

person or entity other than the Company any knowledge or information which the

 

 

Stockholder

acquired while he was a Stockholder, employed by or otherwise affiliated with

Seller relating to (i) the financial, marketing, sales and business plans and

affairs, financial statements, analyses, forecasts and projections, books,

accounts, records, operating costs and expenses and other financial information

of Seller or Myers; (ii) internal management tools and systems, costing

policies and methods, pricing policies and methods and other methods of doing business

of Seller or Myers; (iii) customers, sales, customer requirements and usages,

distributor lists of Seller or Myers; (iv) agreements with customers, vendors,

independent contractors, employees and others of Seller or Myers; (v) existing

and future products or services and product development plans, designs,

analyses and reports of Seller or Myers; (vi) computer software and data bases

developed for Seller or Myers, trade secrets, research, records of research,

models, designs, drawings, technical data and reports of Seller or Myers; and

(vii) correspondence or other private or confidential matters, information or

data whether written, oral or electronic, which is proprietary to Seller and

not generally known to the public (individually and collectively “Confidential Information”),

without the Company’s prior written permission.

 

(b)                                 For purposes of this paragraph 1, the term “unauthorized person”  shall

mean any Person who is not (i) an officer or director of the Company or an

employee of the Company for whom the disclosure of the knowledge or information

referred to herein is necessary for his performance of his assigned duties;

(ii) an employee, officer or director of an Affiliate of the Company for whom

the disclosure of the knowledge or information referred to herein is necessary

for his performance of his assigned duties; or (iii) a person expressly

authorized by the Company to receive disclosure of such knowledge or

information.

 

(c)                                  The Company expressly acknowledges and

agrees that the term “Confidential Information” excludes information which is

(A) in the public domain or otherwise generally known to the trade; (B)

disclosed to third parties other than by reason of the Stockholder’s breach of

his confidentiality obligation hereunder; (C) learned of by the Stockholder

subsequent to the Closing Date from any other party not then under an

obligation of confidentiality to the Company or its Affiliates; or (D) solely

related to any portion of the Excluded Business.

 

2.                                      Restrictive Covenants.  The Stockholder agrees that

for a period of (x) five years after the Effective Date with respect to

subparagraphs (a), (b), and (d) and (y) three years after the Effective Date

(with respect to subparagraphs (c)), he will not, and he shall cause his

Affiliates not to, either alone or in conjunction with any other Person,

directly or indirectly:

 

(a)                                  own, manage, operate, provide financing to,

or join, control or participate in the ownership, management, operation or

control of, or provision of financing to, any business wherever located

(whether in corporate, proprietorship or partnership form or otherwise), if

such business is competitive with the

 

2

 

Business as currently conducted or as it has been conducted during the

twelve (12) month period prior to the Effective Date;

 

(b)                                 for the direct or indirect benefit of any

Person engaged in the business of manufacturing or selling products which are

competitive with the products manufactured or distributed on the date hereof by

the Business (a “Competitor”),

seek to procure orders from, or do business with, or procure directly or

indirectly with any other Person, or procure orders from or do business with,

any Person who or which has been a customer of the Business at any time during

the period of twelve (12) months prior to the Effective Date;

 

(c)                                  for the direct or indirect benefit of any

Competitor, engage, employ, solicit or contact with a view to the engagement or

employment by any Person, any Person who has been an employee, officer or

manager of Seller in the twelve (12) months prior to the Effective Date, in any

case if the employee, officer or manager either was, as a part of his or her

duties, privy to Confidential Information or know-how or would be in a position

to exploit the trade connections of the Business; provided, however,

that the Stockholder may solicit and/or employ any employee who is primarily

involved in the Myers Pedestal Business; or

 

(d)                                 seek to contract or interfere with or

otherwise engage in such a way as to adversely affect the Business as operated

on the date of this Agreement any Person who or which is a party to a

Contractual Obligation with the Business, or has otherwise been engaged to

manufacture, assemble, supply or deliver products, goods, materials or services

to the Business, at any time during the period of twelve (12) months prior to

the Effective Date;

 

provided, however, that ownership or

acquisition by the Stockholder, his Affiliates, Seller and the other

stockholders of Seller executing counterparts of this Agreement, of an

aggregate of less than five percent (5%) of the outstanding stock of any

publicly traded company or substantially similar to or which compete with the

Business shall not constitute a violation of this Section 2.

 

3.                                      Remedies.  The Stockholder and the

Company acknowledge and agree that, (i) they regard the restrictions contained

in Section 1 and Section 2 as reasonable and designed to provide the Company

with limited, legitimate and reasonable protection against subsequent

diminution of the value of Business attributable to any actions of the

Stockholder or any of his Affiliates contrary to such covenants, and (ii)

because the legal remedies of the Company may be inadequate in the event of a

breach of, or other failure to perform, any of the covenants and obligations

set forth in Sections 1 and 2, the Company may, in addition to obtaining any

other remedy or relief available to it (including, without limitation,

consequential and other damages at law), obtain specific enforcement of Section

1 and 2 and other equitable remedies.

 

4.                                      Enforceability.  If the final judgment of a

court of competent jurisdiction declares that any term or provision of Section

2 is invalid or unenforceable, the parties

 

3

 

agree that the court making the determination

of invalidity or unenforceability shall have the power to reduce the scope,

duration, or area of the term or provision, to delete specific words or

phrases, or to replace any invalid or unenforceable term or provision with a

term or provision that is valid and enforceable and that comes closest to

expressing the intention of the invalid or unenforceable term or provision, and

this Agreement shall be enforceable as so modified after the expiration of the

time within which the judgment may be appealed.

 

5.                                      Governing Law. This Agreement shall be subject to and

governed by the laws of the State of Illinois without regard to any choice of

law or conflicts of law rules or provisions (whether of the State of Illinois

or any other jurisdiction), irrespective of the fact that the Stockholder may

become a resident of a different state.

 

6.                                      Binding Effect. The Agreement shall be binding upon and

inure to the benefit of the Company, its successors and assigns, and the

Stockholder and his executors, administrators, personal representatives and

heirs.

 

7.                                      Complete Understanding. Except as set forth in the Asset Purchase

Agreement, counterparts of this Agreement executed by other stockholders of UST

and Affiliates, and that OEM Supply Agreement between the Company and Myers

Power Products, Inc. dated as of May 16, 2003, this Agreement constitutes the

complete understanding among the parties hereto with regard to the subject

matter hereof, and supersedes any and all prior agreements and understandings

relating to the subject matter hereof.

 

8.                                      Amendments. No change, modification or amendment of any

provision of this Agreement shall be valid unless made in writing and signed by

all of the parties hereto.

 

9.                                      Waiver. The waiver by the Company of a breach of

any provision of this Agreement by the Stockholder shall not operate or be

construed as a waiver of any subsequent breach by the Stockholder.

 

10.                               Venue, Jurisdiction, Etc. The Stockholder hereby agrees that any

suit, action or proceeding relating in any way to this Agreement may be brought

and enforced in the Circuit Court of Cook County, Illinois or in the District

Court of the United States of America for the Northern District of Illinois,

Eastern Division, and in either case the Stockholder hereby submits to the

jurisdiction of each such court. The Stockholder hereby waives and agrees not

to assert, by way of motion or otherwise, in any such suit, action or

proceeding, any claim that the Stockholder is not personally subject to the

jurisdiction of the above-named courts, that the suit, action or proceeding is

brought in an inconvenient forum or that the venue of the suit, action or

proceeding is improper. The Stockholder consents and agrees to service of

process or other legal summons for purpose of any such suit, action or

proceeding by registered mail addressed to the Stockholder at his or its

address listed in Section 11. 

Nothing contained herein shall affect the rights of the Company to bring

suit, action or proceeding in any other

 

4

 

appropriate jurisdiction. The Stockholder and

the Company do each hereby waive any right to trial by jury, he or it may have

concerning any matter relating to this Agreement.

 

11.                               Notice.  All

notices, requests demands, claims, and other communications hereunder will be

in writing.  Any notice, request,

demand, claim, or other communication hereunder shall be deemed duly given if

sent by telecopier (with written confirmation of receipt) (and a copy is

mailed, by registered or certified mail, return receipt requested, postage

prepaid), or if sent by a nationally recognized overnight delivery service

(with written confirmation of receipt in each case) addressed to the intended

recipient, as set forth below:

 

If to Stockholder:                            Basil K. Vasiliou

230 Park

Avenue

New York,

New York 10126

Facsimile:

(212) 486-4144

 

Copy to:                                                                          Altheimer & Gray

Suite 4000

10 S.

Wacker Drive

Chicago,

Illinois 60606

Attention:  David W. Schoenberg

Facsimile:  (312) 715-4987

 

If to Company:                                         Green Light Acquisition Company

One East

Wacker Drive

Chicago,

Illinois 60601

Attention:  Leslie J. Jezuit

Facsimile:  (312) 467-0197

 

Copy to:                                                                          Holland & Knight LLC

30th Floor

131 S.

Dearborn Street 

Chicago, IL

 60603

Attention:  Anne Hamblin Schiave

Facsimile:  (312) 578-6666

 

Any Party may send any notice, request,

demand, claim, or other communication hereunder to the intended recipient at

the address set forth above using any other means (including personal delivery,

expedited courier, messenger service, telecopy, telex, ordinary mail, or

electronic mail), but no such notice, request, demand, claim, or other

communication shall be deemed to have been duly given unless and until it

actually is received by the intended recipient.  Any Party may change the address to which notices, requests,

demands, claims, and other communications hereunder are to be delivered by

giving the other Parties notice in the manner herein set forth.

 

5

 

12.                               Severability. If any portion of this Agreement shall be

for any reason, invalid or unenforceable, the remaining portion or portions

shall nevertheless be valid, enforceable and carried into effect.

 

13.                               Headings. The headings of this Agreement are inserted

for convenience only and are not to be considered in the construction of the

provisions hereof.

 

14.                               Counterparts. This Agreement may be executed in one or

more counterparts, all of which, taken together, shall constitute one and the same

agreement.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to

be signed by its duly authorized officers and its corporate seal to be hereunto

affixed, and the Stockholder has hereunto set his hand on the day and year

first above written.

 

[Signature

page to follow]

 

6

 

	

  GREEN LIGHT ACQUISITION

  COMPANY

  	

   

  	

  STOCKHOLDER

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

  /s/ Leslie J. Jezuit

  	

   

  	

   

  	

    /s/ Basil K.

  Vasiliou

  	

   

  
	

   

  	

  Its:

  	

  President

  	

   

  	

   

  	

  Basil K. Vasiliou

  	

   

  

 

7

 

Exhibit 10.10

 

STOCKHOLDER COVENANT NOT TO COMPETE

AND OTHER POST-ASSET SALE OBLIGATIONS

 

THIS AGREEMENT (“Agreement”) is made and entered into

May 16, 2003 (the “Effective Date”), by and between Green Light

Acquisition Company, a Delaware corporation (the “Company”), and Raymond International WLL

(the “Stockholder”), a

stockholder in U.S. Traffic Corporation, a Delaware corporation (“Seller”).

 

RECITALS

 

A.                                   The Stockholder owns eighty-five percent

(85%) of the outstanding capital stock of Seller.

 

B.                                     The Company intends to enter into an asset

purchase agreement of even date herewith (the “Asset Purchase Agreement”) whereby the

Company will acquire substantially all of the assets and good will of Seller

and its wholly-owned subsidiary, Myers/Nuart Electrical Products, Inc. (“Myers”) which are

defined in the Asset Purchase Agreement as the “Business”. Capitalized terms

which are not otherwise defined herein shall have the meanings ascribed to such

terms in the Asset Purchase Agreement.

 

C.                                     The Company’s willingness to enter into the

Asset Purchase Agreement is conditioned upon, among other things, its ability

to protect the value of the goodwill of the Business it is acquiring by virtue

of the Asset Purchase Agreement. The Company and the Stockholder acknowledge

that (i) the Stockholder’s entry into this Agreement is critical to the

Company’s ability to protect the value of the goodwill of the Business the

Company is acquiring in the Asset Purchase Agreement and (ii) the Stockholder’s

execution and delivery of this Agreement is a condition precedent to the

Company’s consummation of the acquisition contemplated by the Asset Purchase

Agreement.

 

D.                                    The Stockholder acknowledges that, as a

significant stockholder in Seller, individuals affiliated with Stockholder have

had significant responsibilities in the managing the businesses and operations

of Seller and Myers, and have had regular access to various confidential and/or

proprietary information relating to the Business.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the

foregoing recitals, and the mutual agreements herein contained and other good

and valuable consideration, the receipt and sufficiency of which are hereby

mutually acknowledged, the parties hereby agree as follows:

 

1.                                      Non-Disclosure Covenant.

 

(a)                                  For a period of five years after the

Effective Date, the Stockholder shall not, and shall cause its Affiliates not

to either directly or indirectly, disclose to any “unauthorized person” or use

for the benefit of the Stockholder or any person or entity other than the

Company any knowledge or information which the

 

 

Stockholder acquired while it

was a Stockholder, employed by or otherwise affiliated with Seller relating to

(i) the financial, marketing, sales and business plans and affairs, financial

statements, analyses, forecasts and projections, books, accounts, records,

operating costs and expenses and other financial information of Seller or

Myers; (ii) internal management tools and systems, costing policies and

methods, pricing policies and methods and other methods of doing business of

Seller or Myers; (iii) customers, sales, customer requirements and usages,

distributor lists of Seller or Myers; (iv) agreements with customers, vendors,

independent contractors, employees and others of Seller or Myers; (v) existing

and future products or services and product development plans, designs,

analyses and reports of Seller or Myers; (vi) computer software and data bases

developed for Seller or Myers, trade secrets, research, records of research,

models, designs, drawings, technical data and reports of Seller or Myers; and

(vii) correspondence or other private or confidential matters, information or

data whether written, oral or electronic, which is proprietary to Seller and

not generally known to the public (individually and collectively “Confidential Information”),

without the Company’s prior written permission.

 

(b)                                 For purposes of this paragraph 1, the term “unauthorized person”  shall

mean any Person who is not (i) an officer or director of the Company or an

employee of the Company for whom the disclosure of the knowledge or information

referred to herein is necessary for his performance of his assigned duties;

(ii) an employee, officer or director of an Affiliate of the Company for whom the

disclosure of the knowledge or information referred to herein is necessary for

his performance of his assigned duties; or (iii) a person expressly authorized

by the Company to receive disclosure of such knowledge or information.

 

(c)                                  The Company expressly acknowledges and

agrees that the term “Confidential Information” excludes information which is

(A) in the public domain or otherwise generally known to the trade; (B)

disclosed to third parties other than by reason of the Stockholder’s breach of

his confidentiality obligation hereunder; (C) learned of by the Stockholder

subsequent to the Closing Date from any other party not then under an

obligation of confidentiality to the Company or its Affiliates; or (D) solely

related to any portion of the Excluded Business.

 

2.                                      Restrictive Covenants.  The Stockholder agrees that

for a period of (x) five years after the Effective Date with respect to

subparagraphs (a), (b), and (d) and (y) three years after the Effective Date

(with respect to subparagraphs (c)), it will not, and it shall cause its

Affiliates not to, either alone or in conjunction with any other Person,

directly or indirectly:

 

(a)                                  own, manage, operate, provide financing to,

or join, control or participate in the ownership, management, operation or control

of, or provision of financing to, any business wherever located (whether in

corporate, proprietorship or partnership form or otherwise), if such business

is competitive with the

 

2

 

Business as currently conducted

or as it has been conducted during the twelve (12) month period prior to the

Effective Date;

 

(b)                                 for the direct or indirect benefit of any

Person engaged in the business of manufacturing or selling products which are

competitive with the products manufactured or distributed on the date hereof by

the Business (a “Competitor”),

seek to procure orders from, or do business with, or procure directly or

indirectly with any other Person, or procure orders from or do business with,

any Person who or which has been a customer of the Business at any time during

the period of twelve (12) months prior to the Effective Date;

 

(c)                                  for the direct or indirect benefit of any

Competitor, engage, employ, solicit or contact with a view to the engagement or

employment by any Person, any Person who has been an employee, officer or

manager of Seller in the twelve (12) months prior to the Effective Date, in any

case if the employee, officer or manager either was, as a part of his or her

duties, privy to Confidential Information or know-how or would be in a position

to exploit the trade connections of the Business; provided, however,

that the Stockholder may solicit and/or employ any employee who is

primarily involved in the Myers Pedestal Business; or

 

(d)                                 seek to contract or interfere with or

otherwise engage in such a way as to adversely affect the Business as operated

on the date of this Agreement any Person who or which is a party to a

Contractual Obligation with the Business, or has otherwise been engaged to manufacture,

assemble, supply or deliver products, goods, materials or services to the

Business, at any time during the period of twelve (12) months prior to the

Effective Date;

 

provided, however, that ownership or

acquisition by the Stockholder, its Affiliates, Seller and the other

stockholders of Seller executing counterparts of this Agreement, of an

aggregate of less than five percent (5%) of the outstanding stock of any

publicly traded company or substantially similar to or which compete with the

Business shall not constitute a violation of this Section 2.

 

3.                                      Remedies.  The Stockholder and the

Company acknowledge and agree that, (i) they regard the restrictions contained

in Section 1 and Section 2 as reasonable and designed to provide the Company

with limited, legitimate and reasonable protection against subsequent

diminution of the value of Business attributable to any actions of the

Stockholder or any of its Affiliates contrary to such covenants, and (ii)

because the legal remedies of the Company may be inadequate in the event

of a breach of, or other failure to perform, any of the covenants and

obligations set forth in Sections 1 and 2, the Company may, in addition to

obtaining any other remedy or relief available to it (including, without

limitation, consequential and other damages at law), obtain specific

enforcement of Section 1 and 2 and other equitable remedies.

 

4.                                      Enforceability.  If the final judgment of a

court of competent jurisdiction declares that any term or provision of Section

2 is invalid or unenforceable, the parties

 

3

 

agree that the court making the determination

of invalidity or unenforceability shall have the power to reduce the scope,

duration, or area of the term or provision, to delete specific words or

phrases, or to replace any invalid or unenforceable term or provision with a

term or provision that is valid and enforceable and that comes closest to

expressing the intention of the invalid or unenforceable term or provision, and

this Agreement shall be enforceable as so modified after the expiration of the

time within which the judgment may be appealed.

 

5.                                      Governing Law. This Agreement shall be subject to and

governed by the laws of the State of Illinois without regard to any choice of

law or conflicts of law rules or provisions (whether of the State of Illinois

or any other jurisdiction), irrespective of the fact that the Stockholder

may become a resident of a different state.

 

6.                                      Binding Effect. The Agreement shall be binding upon and

inure to the benefit of the Company and the Stockholder, its successors and

assigns.

 

7.                                      Complete Understanding. Except as set forth in the Asset Purchase

Agreement, counterparts of this Agreement executed by other stockholders of UST

and Affiliates, and that OEM Supply Agreement between the Company and Myers

Power Products, Inc. dated as of May 16, 2003, this Agreement constitutes

the complete understanding among the parties hereto with regard to the subject

matter hereof, and supersedes any and all prior agreements and understandings

relating to the subject matter hereof.

 

8.                                      Amendments. No change, modification or amendment of any

provision of this Agreement shall be valid unless made in writing and signed by

all of the parties hereto.

 

9.                                      Waiver. The waiver by the Company of a breach of

any provision of this Agreement by the Stockholder shall not operate or be

construed as a waiver of any subsequent breach by the Stockholder.

 

10.                               Venue, Jurisdiction, Etc. The Stockholder hereby agrees that any

suit, action or proceeding relating in any way to this Agreement may be

brought and enforced in the Circuit Court of Cook County, Illinois or in the

District Court of the United States of America for the Northern District of

Illinois, Eastern Division, and in either case the Stockholder hereby submits

to the jurisdiction of each such court. The Stockholder hereby waives and

agrees not to assert, by way of motion or otherwise, in any such suit, action

or proceeding, any claim that the Stockholder is not personally subject to the

jurisdiction of the above-named courts, that the suit, action or proceeding is

brought in an inconvenient forum or that the venue of the suit, action or

proceeding is improper. The Stockholder consents and agrees to service of

process or other legal summons for purpose of any such suit, action or

proceeding by registered mail addressed to the Stockholder at his or its

address listed in Section 11. 

Nothing contained herein shall affect the rights of the Company to bring

suit, action or proceeding in any other appropriate jurisdiction. The

Stockholder and the Company do each hereby waive any right to trial by jury, he

or it may have concerning any matter relating to this Agreement.

 

4

 

11.                               Notice.  All

notices, requests demands, claims, and other communications hereunder will be

in writing.  Any notice, request,

demand, claim, or other communication hereunder shall be deemed duly given if

sent by telecopier (with written confirmation of receipt) (and a copy is

mailed, by registered or certified mail, return receipt requested, postage

prepaid), or if sent by a nationally recognized overnight delivery service

(with written confirmation of receipt in each case) addressed to the intended

recipient, as set forth below:

 

	

  If to Stockholder:

  	

   

  	

  Raymond International WLL

  
	

   

  	

   

  	

  c/o U.S. Traffic

  Corporation/Myers Power Products, Inc.

  
	

   

  	

   

  	

  2000 Highland Avenue

  
	

   

  	

   

  	

  Bethlehem, Pennsylvania 18020

  
	

   

  	

   

  	

  Attention:  Walter Rogers

  
	

   

  	

   

  	

  Facsimile: (610) 868-8686

  
	

   

  	

   

  	

   

  
	

  Copy to:

  	

   

  	

  Altheimer & Gray

  
	

   

  	

   

  	

  Suite 4000

  
	

   

  	

   

  	

  10 S. Wacker Drive

  
	

   

  	

   

  	

  Chicago, Illinois 60606

  
	

   

  	

   

  	

  Attention:  David W. Schoenberg

  
	

   

  	

   

  	

  Facsimile:  (312) 715-4987

  
	

   

  	

   

  	

   

  
	

  If to Company:

  	

   

  	

  Green Light Acquisition

  Company

  
	

   

  	

   

  	

  One East Wacker Drive

  
	

   

  	

   

  	

  Chicago, Illinois  60601

  
	

   

  	

   

  	

  Attention:  Leslie J. Jezuit

  
	

   

  	

   

  	

  Facsimile:  (312) 467-0197

  
	

   

  	

   

  	

   

  
	

  Copy to:

  	

   

  	

  Holland & Knight LLC

  
	

   

  	

   

  	

  30th Floor

  
	

   

  	

   

  	

  131 S. Dearborn Street

  
	

   

  	

   

  	

  Chicago, IL  60603

  
	

   

  	

   

  	

  Attention:  Anne Hamblin Schiave

  
	

   

  	

   

  	

  Facsimile:  (312) 578-6666

  

 

Any Party may send any notice, request,

demand, claim, or other communication hereunder to the intended recipient at

the address set forth above using any other means (including personal delivery,

expedited courier, messenger service, telecopy, telex, ordinary mail, or

electronic mail), but no such notice, request, demand, claim, or other

communication shall be deemed to have been duly given unless and until it

actually is received by the intended recipient.  Any Party may change the address to which notices, requests,

demands, claims, and other communications hereunder are to be delivered by

giving the other Parties notice in the manner herein set forth.

 

5

 

12.                               Severability. If any portion of this Agreement shall be

for any reason, invalid or unenforceable, the remaining portion or portions

shall nevertheless be valid, enforceable and carried into effect.

 

13.                               Headings. The headings of this Agreement are inserted

for convenience only and are not to be considered in the construction of the

provisions hereof.

 

14.                               Counterparts. This Agreement may be executed in one

or more counterparts, all of which, taken together, shall constitute one and

the same agreement.

 

[signature

page to follow]

 

6

 

IN

WITNESS WHEREOF, the Company has caused this Agreement

to be signed by its duly authorized officers and its corporate seal to be

hereunto affixed, and the Stockholder has hereunto set his hand on the day and

year first above written.

 

 

	

  GREEN LIGHT ACQUISITION COMPANY

  	

   

  	

  RAYMOND INTERNATIONAL WLL

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/

  Leslie J. Jezuit

  	

   

  	

  By:

  	

  /s/

  Leslie W. Rogers

  
	

   

  	

  Its:

  	

  President

  	

   

  	

   

  	

  Its:

  	

  Director

  
							

 

7Exhibit
10.11

 

OEM
SUPPLY AGREEMENT

 

This
OEM SUPPLY AGREEMENT (this “Agreement”) is made May 16, 2003 between GREEN
LIGHT ACQUISITION COMPANY (“Customer”), and MYERS POWER PRODUCTS, INC. (“Supplier”).  Customer and Supplier are each referred to
herein as a “Party”.

 

R E C I T A L S

 

A.            Customer has entered into an Asset
Purchase Agreement bearing the date hereof (the “Asset Purchase Agreement”), between
Customer, as Purchaser, and U.S. Traffic Corporation (“UST”) and Myers/Nuart Electrical Products,
Inc.  Supplier is a wholly owned
subsidiary of UST;

 

B.            Pursuant to the Asset Purchase
Agreement, Customer has purchased substantially all of the assets of the
Business, as such term is defined in the Asset Purchase Agreement (the “Business”);

 

C.            Customer wishes to retain Supplier
to manufacture certain Products, as defined herein, which are sold in the
conduct of the Business;

 

D.            The Parties have agreed that
Supplier will manufacture Products for Customer on the terms and conditions set
forth herein;

 

NOW,
THEREFORE, in consideration of the premises and mutual promises made herein,
the Parties agree as follows:

 

1.             Definitions.  For purposes of this Agreement, the
following terms have the specified meaning.

 

a.             “Cabinets” shall mean metal
battery cabinets, service pedestal cabinets and UPS cabinets, into which
Modules are installed or with which they are used.

 

b.             “Cabinet Prices” shall mean the respective unit prices
for Cabinets which are charged by Supplier to Customer from time to time.

 

c.             “Cost” means, with respect to Products, (i) if imported
by Supplier, the purchase price payable to the overseas supplier, not to exceed
$420 for the model PBM-1250 and $445 for the model PBM-2000, respectively, or
(ii) if manufactured by Supplier, its fully allocated cost, not to exceed the
prices payable to overseas suppliers, in each case plus freight and duties, if
any.  Each of the “not to exceed”
amounts set forth in this paragraph a shall be increased (but not decreased)
annually, on May 1 of each year, commencing May 1, 2004, by a
percentage equal to the percentage of increase of the Consumer Price Index for
All Urban Consumers (1982-84 = 100) (“Index”) for the United States as of the
preceding month over the level of the Index on March 1, 2003; provided
however, that if during either (x) the period commencing on the date
hereof and ending on April 30, 2004, (y) an annual period during the term
hereof

 

 

which commences on May 1, 2004 or an anniversary
of that date, the actual price charged by the overseas supplier for Modules is
less than the “not to exceed” price in effect for that period, there shall be
no adjustment pursuant to this sentence in respect of the next succeeding
annual period.

 

d.             “Modules” means the models PBM-1250 and PBM-2000 of the
PowerBackTM module.

 

e.             “Products” means (x) Modules and (y) Cabinets.  The term “Products” does not include the
power transfer switch, or the batteries or other components that are housed in
a Cabinet together with the Modules.

 

f.              “Protected Market” means any market for an
uninterruptible power supply within the highway transportation, traffic and
intelligent traffic systems industry, including all markets currently served by
Customer and the subsidiaries of Customer’s parent company as of the date
hereof, including railroad intersections and airport ground traffic control.

 

g.             “Term” means the period of time commencing on the date
hereof and ending on May 31, 2008.

 

2.             Purchase
and Sale.

 

a.             During the Term, on the terms contained herein, Supplier
agrees to sell to Customer, and, subject to Section 5 hereof, Customer agrees
to purchase from Supplier, all of Supplier’s requirements for Modules and
Cabinets.  Notwithstanding the
foregoing, Customer will not be obligated to purchase, and Supplier will not be
obligated to sell, more than 31,250 Modules during the Term.

 

b.             The purchase price of each Module shall be the Cost
thereof, plus $80.  No more frequently
than once a quarter and at its expense, Customer may inspect Supplier’s
books and records to confirm Supplier’s Cost.

 

c.             The purchase prices of Cabinets shall be the prices
charged by Supplier from time to time, which prices which shall be competitive
with those charged by other vendors selling similar products, based upon the
quantities ordered for the particular Cabinets, the times of delivery, the
specifications and other factors which influence the cost of Cabinets.

 

3.             Warranties
.  Supplier warrants to Customer that
all Products sold to Customer will: (i) be free of defects in materials and
workmanship; (ii) meet all design and UL criteria set forth on the drawings;
(iii) conform to the specifications therefor; and (iv) conform with all
applicable marking and labeling requirements. 
SUPPLIER MAKES NO OTHER WARRANTIES WITH RESPECT TO PRODUCTS, EXPRESS OR
IMPLIED, WRITTEN OR ORAL, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.  Customer shall promptly notify Supplier of any suspected breach
of Supplier’s warranties within a reasonable period of time following Customer’s
discovery thereof.  Products
may not be

 

2

 

returned by Customer
without written return material authorization from Supplier.  For a period of one year following
Supplier’s shipment thereof to Customer, Supplier shall, at its option, repair
or replace all Products which fail to conform to the warranties set forth in
this Section 3.

 

4.             Other
Requirements.

 

a.             Customer shall purchase Products from Supplier by
placing specific purchase orders therefor with Supplier.  Each purchase order shall specify the types
and quantities of Products to be purchased pursuant thereto, and shall set
forth the expected delivery dates thereof, which shall be not earlier than 15
days after the date on which such purchase order has been placed.

 

b.             Supplier will mark all Products sold to Customer with
unique serial numbers to facilitate identification of such Products.

 

c.             Supplier will maintain at least two months projected
inventory of Modules at its premises so as to assure delivery to Customer
within fifteen days.  Upon the
expiration of the Term, Customer will purchase all such Modules from Supplier
(but not in excess of two months’ projected supply), on the terms set forth
herein.

 

d.             Supplier will notify Customer within ten days of each
change in the Products.

 

e.             At least annually, Supplier will benchmark its Cost to
insure that Customer is receiving the benefit of improved productivity,
efficiency and technological changes.

 

f.              Customer shall provide Supplier with quarterly
forecasts of its projected purchases of Modules for such quarter, commencing
with the short quarter beginning on the date hereof and ending on July 31,
2003 (each, a “Forecast”).  Each
Forecast shall be delivered to Supplier not earlier than ten days prior to the
commencement of the quarter to which it relates, except that Customer shall
furnish the Forecast for the quarter beginning on the date hereof and ending on
July 31, 2003 within 15 days after the date hereof.  During any period covered by a Forecast,
Supplier may, but shall not be obligated to, furnish Modules in quantities in
excess of the forecasted amounts.

 

g.             Title and risk of loss to all Products shall pass to the
Customer upon delivery to the carrier by Supplier.  Supplier shall honor any shipping arrangements established by the
Customer, but in the absence of any such arrangements, Supplier shall be free
to establish whatever shipping arrangements it deems appropriate.

 

h.             All prices for Products are exclusive of sales or use
taxes, and freight, all of which shall be payable by the Customer.  All prices are f.o.b. Supplier’s place of
business.

 

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i.              Terms of payment for Products shall be net 30 days from
the related invoice dates.

 

j.              Any delivery dates which Supplier may quote are
estimates only, and shall not be deemed to constitute a guaranty of delivery on
a particular day.

 

k.             Notwithstanding the fact that the Customer
may submit purchase orders for Products, or that the Supplier may furnish
order acknowledgements or other documents, containing terms and conditions of
sale which vary from this Agreement, the terms of this Agreement shall control.

 

5.             Alternative
Sources.

 

a.             In the event Supplier cannot supply Customer with
Products in accordance with the provisions of this Agreement, Customer
may purchase Products from other sources until such time as Supplier can
resume supply of Products in accordance with the terms hereof.  Prior to any such purchase, Customer shall
give the Supplier not less than 10 days’ prior written notice of its intention
to make such a purchase; and if Supplier is able to fill Customer’s requirement
for Products within such period, Customer shall purchase such Products from
Supplier rather than an alternate source of supply.

 

b.             If at any time Customer believes that Supplier’s prices
for Cabinets are not competitive, Customer may solicit quotations from one
or more potential suppliers who would be prepared to fill orders for Cabinets
which Customer is then prepared to place, setting forth specifications, price,
quantity to be purchased, time and manner of delivery and all other relevant
factors affecting the price of such Cabinets. 
Customer shall furnish copies of such quotations to Supplier.  Supplier shall advise Customer within ten
days after receipt of such copies as to whether Supplier is prepared to meet
the quotation which is most favorable to Customer.  If Supplier is willing to meet such quotation, Customer shall purchase
the quantity of the Cabinets which are subject to such quotation from Supplier,
on the economic terms set forth in such quotation.  If Supplier is unwilling to meet such quotation, Customer
shall  have the right to purchase the
quantity of Cabinets covered by such quotations from the vendors who provided
such quotations.  Supplier’s failure to
advise Customer within said ten day period as to whether it is willing to meet
a quotation from another supplier shall be deemed to constitute an
unwillingness to meet such quotation.

 

4

 

6.             Engineering,
ISO.  During the
Term, Supplier will provide at its expense all required sustaining engineering
and product maintenance work for Modules at its facilities in Bethlehem,
Pennsylvania, and Customer will pay for any non-recurring engineering work
which it may request at rates established by Supplier in good faith.  All Modules shall be manufactured at a
facility that is ISO-certified, and Supplier shall provide Customer with
written evidence of such ISO certification, at Customer’s request.

 

7.             Competition.  During the Term, Supplier agrees that it
will refrain from selling, distributing or leasing Modules (by whatever name or
mark) within the Protected Market. 
During the Term, Customer will refrain from manufacturing Cabinets.

 

8.             Force
Majeure.  Supplier
shall not be liable for failure or delay in performance under this Agreement
due in whole or in part to causes such as an act of God, strike, lockout or
other labor dispute, civil commotion, sabotage, fire, flood, explosion, acts of
any government, shortages of material from other suppliers, inability to obtain
or delay in obtaining necessary equipment or governmental approvals, permits,
licenses or allocations, and any other causes which are not within the reasonable
control of Supplier, whether or not of the kind specifically enumerated above
(such causes being collectively referred to as events of “Force Majeure”).  Upon the occurrence of an event of Force
Majeure which hinders, delays or prevents the delivery of Products in
accordance with the terms of this Agreement, (x) Supplier shall allocate its
available supply, in a fair and equitable manner, among its customers,
including, at Supplier’s option, regular customers not then under contract, and
(y) to the extent Supplier is unable to fulfill Customer’s requirements for
Products pursuant to this Agreement, Customer shall be relieved of its
obligation to purchase such Products from Supplier hereunder.

 

9.             Remedies.  SUPPLIER’S EXCLUSIVE LIABILITY FOR THE BREACH
OF ANY OF ITS WARRANTIES WITH RESPECT TO DEFECTIVE OR NONCONFORMING PRODUCTS
SHALL BE AS SET FORTH IN SECTION 3. 
SUPPLIER’S LIABILITY FOR ANY LOSS OR DAMAGE ARISING OUT OF OR RESULTING
FROM OR IN ANY WAY CONNECTED WITH THIS AGREEMENT SHALL NOT EXCEED THE PURCHASE
PRICE OF THE PARTICULAR PRODUCT UPON WHICH SUCH LIABILITY IS BASED OR THE COST
OF REPLACEMENT THEREOF, WHICHEVER IS HIGHER, REGARDLESS OF WHETHER SUCH
LIABILITY ARISES IN CONTRACT (INCLUDING, BUT NOT LIMITED TO, FAILURE OR DELAY
IN PERFORMANCE OR DELIVERY DUE TO ANY CAUSE WHATSOEVER), TORT (INCLUDING,
WITHOUT LIMITATION, NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE.  IN NO EVENT SHALL SUPPLIER BE LIABLE FOR
LOSS OF PROFITS OR REVENUE OR FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL OR
PUNITIVE DAMAGES.  REGARDLESS OF ANY
PRIOR DEALINGS, ANY CLAIM BY CUSTOMER SHALL BE DEEMED WAIVED UNLESS PRESENTED
IN WRITING TO SUPPLIER WITHIN 60 DAYS FROM THE DATE OF DELIVERY TO CUSTOMER
(OR, IN THE CASE OF NONDELIVERY, 60 DAYS FROM THE DATE FIXED FOR DELIVERY).  WITH RESPECT TO CONFORMITY OF THE PRODUCT TO
APPLICABLE SPECIFICATIONS, THE 60 DAY CLAIM LIMITATION SHALL BE EXTENDED TO ONE
YEAR FROM THE DATE OF DELIVERY.

 

5

 

10.          Assignment
of Rights.  This
Agreement shall not confer any rights or remedies upon any person other than
the Parties, their respective successors and permitted assigns.  This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective
successors and permitted assigns.  No
Party may assign either this Agreement or any of its rights, interests, or
obligations hereunder without the prior written approval of the other Party;
provided, however, that (x) Customer may (i) assign any or all of its
rights and interests hereunder to one or more of its Affiliates and (ii)
designate one or more of its Affiliates to perform its obligations hereunder
(in any or all of which cases Customer nonetheless shall remain responsible for
the performance of all of its obligations hereunder).

 

11.          Headings.  The section headings contained in this
Agreement are inserted for convenience only and shall not affect in any way the
meaning or interpretation of this Agreement.

 

12.          Notices.  All notices, requests demands, claims, and other
communications hereunder will be in writing. 
Any notice, request, demand, claim, or other communication hereunder
shall be deemed duly given if sent by telecopier (with written confirmation of
receipt) (and a copy is mailed, by registered or certified mail, return receipt
requested, postage prepaid), or if sent by a nationally recognized overnight
delivery service (with written confirmation of receipt in each case) addressed
to the intended recipient, as set forth below:

 

	
  If to Supplier:

  	
   

  	
  Myers Power Products,
  Inc.

  
	
   

  	
   

  	
  2000 Highland Avenue

  
	
   

  	
   

  	
  Bethlehem, Pennsylvania
  18020

  
	
   

  	
   

  	
  Attention:  Walter Rogers

  
	
   

  	
   

  	
  Facsimile: (610)
  868-8686

  
	
   

  	
   

  	
   

  
	
  Copy to:

  	
   

  	
  Altheimer & Gray

  
	
   

  	
   

  	
  Suite 4000

  
	
   

  	
   

  	
  10 S. Wacker Drive

  
	
   

  	
   

  	
  Chicago, Illinois 60606

  
	
   

  	
   

  	
  Attention:  David W. Schoenberg

  
	
   

  	
   

  	
  Facsimile:  (312) 715-4987

  
	
   

  	
   

  	
   

  
	
  If to Customer:

  	
   

  	
  Green Light Acquisition
  Company

  
	
   

  	
   

  	
  One East Wacker Drive

  
	
   

  	
   

  	
  Chicago, Illinois  60601

  
	
   

  	
   

  	
  Attention:  Leslie J. Jezuit

  
	
   

  	
   

  	
  Facsimile:  (312) 467-0197

  

 

6

 

	
  Copy to:

  	
   

  	
  Holland & Knight
  LLC

  
	
   

  	
   

  	
  30th Floor

  
	
   

  	
   

  	
  131 S. Dearborn Street

  
	
   

  	
   

  	
  Chicago, Illinois  60603

  
	
   

  	
   

  	
  Attention:  Anne Hamblin Schiave

  
	
   

  	
   

  	
  Facsimile:  (312) 578-6666

  

 

Any Party may send
any notice, request, demand, claim, or other communication hereunder to the
intended recipient at the address set forth above using any other means
(including personal delivery, expedited courier, messenger service, telecopy,
telex, ordinary mail, or electronic mail), but no such notice, request, demand,
claim, or other communication shall be deemed to have been duly given unless
and until it actually is received by the intended recipient.  Any Party may change the address to
which notices, requests, demands, claims, and other communications hereunder
are to be delivered by giving the other Parties notice in the manner herein set
forth.

 

7

 

13.          Choice
of Law.  This
Agreement shall be governed by and construed in accordance with the substantive
laws of the State of Illinois without giving effect to any choice or conflict
of law provision or rule (whether of the State of Illinois or any other
jurisdiction) that would cause the application of the laws of any jurisdiction
other than the State of Illinois.

 

14.          Amendment.  No amendment of any provision of this
Agreement shall be valid unless the same shall be in writing and signed by
Customer and Supplier.  No waiver by any
Party of any default, misrepresentation, or breach of warranty or covenant
hereunder, whether intentional or not, shall be deemed to extend to any prior
or subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

 

15.          Severability.  Any term or provision of this Agreement that
is invalid or unenforceable in any circumstance in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions
hereof or the validity or enforceability of the offending term or provision in
any other circumstance or in any other jurisdiction.

 

16.          Venue.  This Agreement has been executed and
delivered in and shall be deemed to have been made in Chicago, Illinois.  Supplier and Customer each agrees to the
exclusive jurisdiction of any state or Federal court within the City of
Chicago, with respect to any claim or cause of action arising under or relating
to this Agreement, and waives personal service of any and all process upon it,
and consents that all services of process be made by registered or certified
mail, return receipt requested, directed to it at its address as set forth in
Section 12, and service so made shall be deemed to be completed when
received.  Supplier and Customer each
waives any objection based on forum  non  conveniens and
waives any objection to venue of any action instituted hereunder.  Nothing in this paragraph shall affect the
right of Supplier or Customer to serve legal process in any other manner
permitted by law.

 

[signature page to follow]

 

8

 

IN WITNESS WHEREOF, this
Agreement has been executed as of the date above written.

 

	
  GREEN LIGHT ACQUISITION COMPANY

  	
   

  	
  MYERS POWER PRODUCTS, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Leslie J. Jezuit

  	
   

  	
  By:

  	
  /s/ Diana Grootonk

  
	
  Its:

  	
  President

  	
   

  	
  Its:

  	
  Director

  

 

9

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