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HomeMy WebLinkAboutContracts & Agreements_176-2022ASSIGNMENT AND ASSUMPTION AGREEMENT OF NON-PROFESSIONAL SERVICES AGREEMENT FOR EQUIPMENT AND SUPPLIES THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this "Assignment") is made this 6th day of September 2022 ("Effective Date") among City of Redlands, a municipal corporation ("City"), Otto Environmental Systems North America, Inc., a Delaware corporation ("Assignor") and Duramax Holdings LLC, an Ohio Limited Liability Company doing business as Otto Environmental Systems ("Assignee"). WITNESETH: WHEREAS, the City and Assignor entered into a non-professional services agreement for equipment and supplies ("Agreement") dated September 7, 2021; and WHEREAS, Assignor and Assignee entered into an agreement dated November 19, 2021 for Assignee to acquire all or substantially all of the assets of Assignor; and WHEREAS, Section 8.2 of the Agreement describes the process for assignment of the rights, duties, and obligations under the Agreement, and specifies that a transfer requires the City's prior written consent of the City; and WHEREAS, the Assignee requested City to consent to the Agreement transfer; and WHEREAS, Assignee has demonstrated to the City's satisfaction that Assignee has the operational and financial ability to perform the terms of this Agreement; and WHEREAS, subject to City approval as provided in the Agreement, Assignor desires to convey and assign to Assignee, and Assignee desires and agrees to accept and assume all of the rights, duties, obligations, title and interest of Assignor with respect to the Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby aelmowledged, the Parties, intending to be bound hereby, agree as follows: 1. ASSIGNMENT. Assignor does hereby irrevocably convey, transfer and assign to Assignee, all of the rights, title, interest, duties and obligations of Assignor with respect to the Agreement (the "Assigned Interest"). 2. ASSUMPTION. Subject to the terms and conditions of this Assignment, Assignee hereby irrevocably accepts and assumes the Assigned Interest and from the Effective Date agrees to perform and be bound by all the terms, conditions and covenants of, and assumes the duties and obligations of Assignor with respect to, the Assigned Interest. 3. CITY APPROVAL OF ASSIGNMENT. Subject to the terms and conditions of this Assignment, the City hereby approves and consents to the assignment and assumption of the Agreement. L:\ca\Agreements\Dummax and Otto Environmental Assignment Agmement.doex.jn 4. REMEDIES OF ASSIGNOR. Assignor shall have the right to enforce the provisions of this Assignment and Assignee's obligations by any appropriate legal or equitable actions and remedies in the event of any delay, failure to perform or breach by Assignee under the provisions of this Assignment assumed by Assignee. 5. REMEDIES OF CITY. City shall have the right under the Agreement to enforce the provisions of this Assignment and the assumed obligations by any appropriate legal or equitable actions and remedies in the event of any delay, failure to perform or breach by Assignee under the provisions of this Assignment or the assumed obligations assumed by Assignee. 6. FURTHER ASSURANCES. Assignor and Assignee shall execute and deliver all such other and further documents and perform all such further acts that may be necessary to effectuate the terms and provisions of this Assignment. 7. SUCCESSORS AND ASSIGNS. This Assignment shall be binding on all successors and permitted assigns of the Parties and inure to the benefit of the respective successors and permitted assigns of the Parties. 8. NOTICES. Notices under this Assignment shall be sent in the manner as follows: To Assignor: Duramax Holdings LLC dba Otto Environmental Systems Attn: Robert Cheney Chief Commercial Officer Duramax Holdings dba: Otto Environmental Systems 12700 General Drive, Charlotte, NC 28273 Robert.Cheney@otto-usa.com Phone: 800-795-6886 Fax: 704-588-5250 To Assignee: Otto Environmental Systems North America, Inc. Attn: Michael Costello„ President and CEO 12700 General Drive Charlotte, North Carolina 28273 Michael.Costello@otto-usa.com To City: City Clerk City of Redlands 35 Cajon Street P.O. ox 3005 (mailing) Redlands, CA 92373 jdonaldson@cityofredlands.org Phone: (909) 798-7531 Fax: (909) 798-7535 9. HEADINGS. Section headings in this Assignment are for convenience only and are not intended to be used in interpreting or constraining the terms, covenants or conditions of this Assignment. 10. GOVERNING LAW. This Agreement shall be deemed made and prepared and shall be governed, construed and interpreted in accordance with the laws of the State of California, without reference to conflicts of laws rules. 11. NO AMENDMENT TO ASSIGNED AGREEMENT. Nothing contained herein shall change, alter or otherwise amend the terms of the Agreement, which shall remain in full force and effect, subject to the assignment, assumption and amendment of the Agreement as set forth herein. 12. SEVERABILITY. If any term or provision of this Agreement shall be held invalid or unenforceable, the remainder of this Agreement shall not be affected. 13. COUNTERPARTS. The Parties may execute this Agreement in one or more counterparts, which shall, in the aggregate, be signed by all the Parties; each counterpart shall be deemed an original instrument as against any Party who has signed it. Signatures delivered by facsimile or portable document format (.pdf) shall be deemed to be original signatures. [Signature Page Follows] IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by a duly authorized representative of each of the Parties as of the date first above written. DURAMAX HOLDINGS LLC a Limited Liability Company "ASSIGNOR" fkgllaliV�lgnetl hY Rohert W Uertey Robert W CheneyArtw°bertWChetaa°-�IelCumrtce al Ofiicn, eman�ohertt9vxrcygglt�u�a,aym, c=lli By. Aaie:lgi2.aB.18 ]55833 -0988 Name: Robert Cheney Title: Chief Commercial Officer OTTO ENVIRONMENTAL SYSTEMS NORTH AMERICA, INC. a Delaware corporation, "ASSIGNEE" 8igitallY signed b1' Robert W O�mey Robert W Cheney.. an-vbertwrnenry.00ua �3h,M US ial 081u�r,e,Wft b hm",e 011 o-us -hi ,mils By: Dale:202ZWsu lssa9a-Dana Name: Robert Cheney Title: Chief Commercial Officer THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT OF THE FOREGOING ASSIGNMENT AND ASSUMPTION AGREEMENT AND CONSENTS TO THE ASSIGNMENT CONTEMPLATED THEREUNDER: CITY OF DRE LANDS By: Paul T. Barich Mayor ATTEST: e e Donaldson, City Clerk