Common use of The Merger 1 Clause in Contracts

The Merger 1. Section 1.1 The Merger 1 Section 1.2 Effective Time 1 Section 1.3 Effect of the Merger 1 Section 1.4 Certificate of Incorporation; By-laws 2 Section 1.5 Directors and Officers 2 Section 2.1 Conversion of Securities 2 Section 2.2 Exchange of Certificates 3 Section 2.3 Dissenters’ Rights 6 Section 2.4 Stock Transfer Books 7 Section 2.5 Stock Options 7 Section 3.1 Organization and Qualification; Subsidiaries 8 Section 3.2 Certificate of Incorporation and By-laws 9 Section 3.3 Capitalization 9 Section 3.4 Authority 10 Section 3.5 No Conflict; Required Filings and Consents 11 Section 3.6 Permits; Compliance With Law 11 Section 3.7 SEC Filings; Financial Statements 12 Section 3.8 Disclosure Documents 13 Section 3.9 Absence of Certain Changes or Events 14 Section 3.10 Employee Benefit Plans 14 Section 3.11 Labor and Other Employment Matters 16 Section 3.12 Contracts 17 Section 3.13 Litigation 19 Section 3.14 Environmental Matters 19 Section 3.15 Intellectual Property; Software 20 Section 3.16 Taxes 23 Section 3.17 Properties and Assets 24 Section 3.18 Certain Business Relationships With Affiliates 24 Section 3.19 Opinion of Financial Advisor 24 Section 3.20 Vote Required 25 Section 3.21 Brokers 25 Section 4.1 Organization and Qualification; Subsidiaries 25 Section 4.2 Certificate of Incorporation and By-laws 25 Section 4.3 Capitalization 25 Section 4.4 Authority 26 Section 4.5 No Conflict; Required Filings and Consents 26 Section 4.6 Permits; Compliance with Laws 27 Section 4.7 SEC Filings; Financial Statements 27 Section 4.8 Disclosure Documents 28 Section 4.9 Absence of Certain Changes or Events 29 Section 4.10 Litigation 29 Section 4.11 Ownership of Merger Sub; No Prior Activities 29 Section 4.12 Vote Required 30 Section 4.13 Opinion of Financial Advisors 30 Section 4.14 Brokers 30 Section 4.15 Financing 30 Section 4.16 Tax Matters 30 Section 4.17 Company Stock 31 Section 5.1 Conduct of Business by the Company Pending the Closing 31 Section 5.2 Conduct of Business by Parent Pending the Closing 34 Section 5.3 Cooperation; Notice of Certain Changes 35 Section 5.4 Registration Statement; Proxy Statement 35 Section 5.5 Company Stockholders’ Meeting; Consent of Parent as Sole Stockholder of Merger Sub; Parent Stockholders’ Meeting 36 Section 5.6 Access to Information; Confidentiality 37 Section 5.7 Acquisition Proposals 37 Section 5.8 Appropriate Action; Consents; Filings 39 Section 5.9 Certain Notices 41 Section 5.10 Reasonable Best Efforts 41 Section 5.11 Public Announcements 42 Section 5.12 Stock Exchange Listing 42 Section 5.13 Employee Benefit Matters 42 Section 5.14 Indemnification of Directors and Officers 43 Section 5.15 Plan of Reorganization 44 Section 5.16 Affiliate Letters 45 Section 5.17 Standstill Agreements 45 Section 5.18 Letters of the Accountants 45

The Merger 1. Section 1.1 The Merger 1 1 Section 1.2 Effective Time 1 1 Section 1.3 Effect of the Merger 1 Section 1.4 Certificate of Incorporation; By-laws 2 Section 1.5 Directors and Officers 2 Section 2.1 Conversion of Securities 2 Section 2.2 Exchange of Certificates 3 Section 2.3 Dissenters’ Rights 6 Section 2.4 Stock Transfer Books 7 6 Section 2.5 Stock Options 6 Section 2.6 Adjustment to Merger Consideration 7 Section 2.7 Milestone Payment 10 Section 2.8 Milestone Payment Mechanism 11 Section 3.1 Organization and Qualification; Subsidiaries 8 Qualification 13 Section 3.2 Certificate of Incorporation and By-laws 9 laws; Corporate Books, Records, Statutory Books and Powers of Attorney 14 Section 3.3 Capitalization 9 15 Section 3.4 Authority 10 17 Section 3.5 No Conflict; Required Filings and Consents 11 19 Section 3.6 Permits; Compliance With Law 11 Law; Statutory Demand 19 Section 3.7 SEC Filings; Financial Statements 12 20 Section 3.8 Disclosure Documents 13 Liabilities; Insolvency; Accounts Receivable 21 Section 3.9 Absence of Certain Changes or Events 14 23 Section 3.10 Employee Benefit Plans 14 23 Section 3.11 Labor and Other Employment Matters 16 28 Section 3.12 Contracts 17 Contracts; Debt Instruments 30 Section 3.13 Litigation 19 33 Section 3.14 Environmental Matters 19 33 Section 3.15 Intellectual Property; Software 20 Property 34 Section 3.16 Taxes 23 40 Section 3.17 Properties and Assets 24 Insurance 45 Section 3.18 Certain Business Relationships With Affiliates 24 Title to Assets 45 Section 3.19 Opinion of Financial Advisor 24 Real Property; Equipment 46 Section 3.20 Products; Services 48 Section 3.21 Customers; Sales Orders; Suppliers 48 Section 3.22 Bank Accounts 49 Section 3.23 Related Party Transactions 49 Section 3.24 Vote Required 25 49 Section 3.21 3.25 Brokers 25 50 Section 3.26 Quasi-California Corporate Status 50 Section 3.27 Full Disclosure 50 Section 4.1 Organization and Qualification; Subsidiaries 25 50 Section 4.2 Certificate of Incorporation and By-laws 25 Authority 51 Section 4.3 Capitalization 25 Section 4.4 Authority 26 Section 4.5 No Conflict; Required Filings and Consents 26 51 Section 4.6 Permits; Compliance with Laws 27 4.4 Litigation 52 Section 4.7 SEC Filings; Financial Statements 27 Section 4.8 Disclosure Documents 28 Section 4.9 Absence of Certain Changes or Events 29 Section 4.10 Litigation 29 Section 4.11 4.5 Ownership of Merger Sub; No Prior Activities 29 52 Section 4.12 Vote Required 30 4.6 Brokers 52 Section 4.13 Opinion of Financial Advisors 30 Section 4.14 Brokers 30 Section 4.15 Financing 30 Section 4.16 Tax Matters 30 Section 4.17 Company Stock 31 4.7 Adequate Resources 52 Section 5.1 Conduct of Business by the Company Pending the Closing 31 53 Section 5.2 Conduct of Business by Parent Pending the Closing 34 Cooperation 56 Section 5.3 Cooperation; Notice Written Consent in Lieu of Certain Changes 35 Section 5.4 Registration Statement; Proxy Statement 35 Section 5.5 Company Stockholders’ Meeting; Consent of Parent as Sole Stockholder of Merger Sub; Parent Stockholders’ Meeting 36 56 Section 5.6 5.4 Access to Information; Confidentiality 37 57 Section 5.7 Acquisition Proposals 37 5.5 No Solicitation of Transactions 57 Section 5.8 5.6 Appropriate Action; Consents; Filings 39 58 Section 5.7 Certain Notices 60 Section 5.8 Public Announcements 60 Section 5.9 Payment of Certain Notices 41 Liabilities 60 Section 5.10 Reasonable Best Efforts 41 Restricted Stock Issuance and Option Grants 60 Section 5.11 Public Announcements 42 Section 5.12 Stock Exchange Listing 42 Section 5.13 Employee Benefit Matters 42 61 Section 5.14 5.12 Indemnification of Company Directors and Officers 43 Section 5.15 Plan of Reorganization 44 Section 5.16 Affiliate Letters 45 Section 5.17 Standstill Agreements 45 Section 5.18 Letters of the Accountants 4561

The Merger 1. Section 1.1 The Merger 1 1 Section 1.2 Effective Time 1 2 Section 1.3 Effect of the Merger 1 2 Section 1.4 Certificate of Incorporation; By-laws 2 Section 1.5 Directors and Officers 2 Section 2.1 Conversion of Securities 2 3 Section 2.2 Exchange of Certificates 3 Certificates. 7 Section 2.3 Stock Transfer Books 12 Section 2.4 Stock Options 13 Section 2.5 Dissenters’ Rights 6 15 Section 2.4 Stock Transfer Books 7 Section 2.5 Stock Options 7 2.6 Company Indebtedness 16 Section 3.1 Organization and Qualification; Subsidiaries 8 Good Standing 17 Section 3.2 Certificate of Incorporation and By-laws 9 Corporate Records 17 Section 3.3 Capitalization 9 Corporate Power and Authority 18 Section 3.4 Authority 10 Capitalization 18 Section 3.5 No Conflict; Required Filings and Consents 11 Subsidiaries 20 Section 3.6 Permits; Compliance With Law 11 No Violation 21 Section 3.7 SEC Filings; Financial Statements 12 Approvals 22 Section 3.8 Disclosure Documents 13 Financial Statements; No Undisclosed Liabilities 23 Section 3.9 Absence of Certain Changes or Events 14 25 Section 3.10 Leases of Personal Property and Real Property; Owned Real Property; Material Contracts; No Default 26 Section 3.11 Intellectual Property Matters 29 Section 3.12 Litigation 32 Section 3.13 Compliance with Laws; Permits 32 Section 3.14 Taxes 33 Section 3.15 Insurance 36 Section 3.16 Employee Benefit Plans 14 37 Section 3.11 3.17 Employees 41 Section 3.18 Personal Property; Assets 43 Section 3.19 Environmental Matters 43 Section 3.20 Customers 44 Section 3.21 Inventory 44 Section 3.22 Fees 45 Section 3.23 Related-Party Transactions 45 Section 3.24 Foreign Corrupt Practices Act 45 Section 3.25 Acquisitions 46 Section 3.26 International Trade Laws 46 Section 3.27 Disclosure Documents 47 Section 3.28 Labor and Other Employment Matters 16 47 Section 3.12 Contracts 17 3.29 Tax Treatment 48 Section 3.13 Litigation 19 Section 3.14 Environmental Matters 19 Section 3.15 Intellectual Property; Software 20 Section 3.16 Taxes 23 Section 3.17 Properties and Assets 24 Section 3.18 Certain Business Relationships With Affiliates 24 Section 3.19 Opinion of Financial Advisor 24 Section 3.20 3.30 Vote Required 25 49 Section 3.21 Brokers 25 3.31 Subsidies 49 Section 4.1 Organization and Qualification; Subsidiaries 25 Section 4.2 Certificate of Incorporation and By-laws 25 Section 4.3 Capitalization 25 Section 4.4 Authority 26 Section 4.5 No Conflict; Required Filings and Consents 26 Section 4.6 Permits; Compliance with Laws 27 Section 4.7 SEC Filings; Financial Statements 27 Section 4.8 Disclosure Documents 28 Section 4.9 Absence of Certain Changes or Events 29 Section 4.10 Litigation 29 Section 4.11 Ownership of Merger Sub; No Prior Activities 29 Section 4.12 Vote Required 30 Section 4.13 Opinion of Financial Advisors 30 Section 4.14 Brokers 30 Section 4.15 Financing 30 Section 4.16 Tax Matters 30 Section 4.17 Company Stock 31 Section 5.1 Conduct of Business by the Company Pending the Closing 31 Section 5.2 Conduct of Business by Parent Pending the Closing 34 Section 5.3 Cooperation; Notice of Certain Changes 35 Section 5.4 Registration Statement; Proxy Statement 35 Section 5.5 Company Stockholders’ Meeting; Consent of Parent as Sole Stockholder of Merger Sub; Parent Stockholders’ Meeting 36 Section 5.6 Access to Information; Confidentiality 37 Section 5.7 Acquisition Proposals 37 Section 5.8 Appropriate Action; Consents; Filings 39 Section 5.9 Certain Notices 41 Section 5.10 Reasonable Best Efforts 41 Section 5.11 Public Announcements 42 Section 5.12 Stock Exchange Listing 42 Section 5.13 Employee Benefit Matters 42 Section 5.14 Indemnification of Directors and Officers 43 Section 5.15 Plan of Reorganization 44 Section 5.16 Affiliate Letters 45 Section 5.17 Standstill Agreements 45 Section 5.18 Letters of the Accountants 4549

The Merger 1. Section 1.1 The Merger 1 Section 1.2 Closing Date 1 Section 1.3 Effective Time 1 Section 1.3 1.4 Effect of the Merger 1 2 Section 1.4 1.5 Certificate of Incorporation; By-laws 2 Section 1.5 1.6 Directors and Officers 2 Section Sectoin 2.1 Conversion of Securities 2 Section 2.2 Exchange of Certificates 3 5 Section 2.3 Dissenters’ Rights 6 8 Section 2.4 Stock Transfer Books 7 9 Section 2.5 Stock Options 7 9 Section 2.6 Closing Net Assets; Adjustment to Merger Consideration 10 Section 3.1 Organization and Qualification; No Subsidiaries 8 13 Section 3.2 Certificate of Incorporation and By-laws 9 laws; Corporate Books and Records 14 Section 3.3 Capitalization 9 14 Section 3.4 Authority 10 16 Section 3.5 No Conflict; Required Filings and Consents 11 17 Section 3.6 Permits; Compliance With Law 11 18 Section 3.7 SEC Filings; Financial Statements 12 18 Section 3.8 Disclosure Documents 13 Liabilities; Accounts Receivable 19 Section 3.9 Absence of Certain Changes or Events 14 20 Section 3.10 Employee Benefit Plans 14 20 Section 3.11 Labor and Other Employment Matters 16 23 Section 3.12 Contracts 17 Contracts; Debt Instruments 26 Section 3.13 Litigation 19 28 Section 3.14 Environmental Matters 19 29 Section 3.15 Intellectual Property; Software 20 Property 30 Section 3.16 Taxes 23 34 Section 3.17 Properties and Assets 24 Insurance 37 Section 3.18 Certain Business Relationships With Affiliates 24 Title to Assets 37 Section 3.19 Opinion of Financial Advisor 24 Real Property; Equipment 38 Section 3.20 Products; Services 39 Section 3.21 Customers; Sales Orders; Suppliers 40 Section 3.22 Bank Accounts 40 Section 3.23 Related Party Transactions 40 Section 3.24 Vote Required 25 41 Section 3.21 3.25 Brokers 25 41 Section 3.26 Quasi-California Corporate Status 41 Section 4.1 Organization and Qualification; Subsidiaries 25 41 Section 4.2 Certificate of Incorporation and By-laws 25 Authority 42 Section 4.3 Capitalization 25 Section 4.4 Authority 26 Section 4.5 No Conflict; Required Filings and Consents 26 42 Section 4.6 Permits; Compliance with Laws 27 4.4 Litigation 43 Section 4.7 SEC Filings; Financial Statements 27 Section 4.8 Disclosure Documents 28 Section 4.9 Absence of Certain Changes or Events 29 Section 4.10 Litigation 29 Section 4.11 4.5 Ownership of Merger Sub; No Prior Activities 29 43 Section 4.12 Vote Required 30 4.6 Brokers 43 Section 4.13 Opinion of Financial Advisors 30 Section 4.14 Brokers 30 Section 4.15 Financing 30 Section 4.16 Tax Matters 30 Section 4.17 Company Stock 31 4.7 Adequate Resources 44 Section 5.1 Conduct of Business by the Company Pending the Closing 31 44 Section 5.2 Conduct of Business by Parent Pending the Closing 34 Cooperation 47 Section 5.3 Cooperation; Notice Written Consent in Lieu of Certain Changes 35 Section 5.4 Registration Statement; Proxy Statement 35 Section 5.5 Company Stockholders’ Meeting; Consent of Parent as Sole Stockholder of Merger Sub; Parent Stockholders’ Meeting 36 48 Section 5.6 5.4 Access to Information; Confidentiality 37 48 Section 5.7 Acquisition Proposals 37 5.5 No Solicitation of Transactions 48 Section 5.8 5.6 Appropriate Action; Consents; Filings 39 49 Section 5.7 Certain Notices 51 Section 5.8 Public Announcements 51 Section 5.9 Payment of Certain Notices 41 Liabilities 51 Section 5.10 Reasonable Best Efforts 41 Section 5.11 Public Announcements 42 Section 5.12 Stock Exchange Listing 42 Section 5.13 Employee Benefit Matters 42 Section 5.14 Indemnification of Directors and Officers 43 Section 5.15 Plan of Reorganization 44 Section 5.16 Affiliate Letters 45 Section 5.17 Standstill Agreements 45 Section 5.18 Letters of the Accountants 45Transferred Employees, Etc 51