Opinion ID: 803329
Heading Depth: 2
Heading Rank: 2

Heading: Agreements Between Appellants and SKF

Text: On January 14, 2004, Appellants entered into an Option Agreement with SKF. The Option Agreement gave SKF an irrevocable option to purchase all, but not less than all, of the outstanding shares of [s]tock in Environamics. The parties also executed a Buy-Sell Agreement that made SKF the exclusive marketer and reseller of Environamics's pumps and related products; the BuySell Agreement also made Environamics the exclusive supplier of such products to SKF. SKF's option to buy Environamics was to last for fifteen months. In addition, the Option Agreement called for the parties to try in good faith to negotiate a nine-month extension if SKF could not reach a target of selling $10 million of Environamics products annually under the Buy-Sell Agreement. The Option Agreement had an exercise price of $9 million, to be adjusted for Environamics's outstanding debt and any remaining obligations between SKF and Environamics. SKF was also to pay Appellants a royalty of ten percent of SKF's gross profits on sales of Environamics products for a seven-year period. The Option Agreement contained a clause stating that it, combined with the Buy-Sell Agreement, constitutes the entire agreement and supersedes all prior agreements, conversations, understandings and negotiations, both written and oral, between the parties with respect to the subject matter hereof. The Option -4- Agreement also provided that it was governed by Pennsylvania law without regard to the laws that are applicable under conflicts of laws principles. The Buy-Sell Agreement contained a similar choice-of-law clause.