FIRST AMENDMENT TO RIGHTS AGREEMENT
EXHIBIT 4.1
FIRST AMENDMENT TO RIGHTS AGREEMENT
AMENDMENT, dated as of January 21, 2008 (this “Amendment”), to that certain Rights
Agreement, dated as of May 6, 1998 (the “Rights Agreement”), between Ventana Medical
Systems, Inc., a Delaware corporation (the “Company”), and Xxxxx Fargo Bank, N.A. (as
successor to Norwest Bank Minnesota, N.A.), as rights agent (the “Rights Agent”).
WHEREAS, the Company, Roche Holdings, Inc., a Delaware corporation (“Purchaser”), and Rocket
Acquisition Corp., a Delaware corporation and an indirect wholly-owned subsidiary of Purchaser
(“Merger Subsidiary”), have proposed to enter into an Agreement and Plan of Merger (the
“Merger Agreement”) pursuant to which, among other things, (1) Merger Subsidiary will amend
its tender offer (the “Offer”) providing for the purchase of all of the issued and
outstanding shares of common stock of the Company, par value $0.001 per share (“Company Common
Stock”), together with the associated preferred stock purchase rights issued pursuant to the
Rights Agreement (“Company Rights”) for so long as such Company Rights are outstanding, for
cash, and (2) upon consummation of the Offer, Merger Subsidiary will merge with and into the
Company (the “Merger”), in each case, upon the terms and subject to the conditions set
forth in the Merger Agreement;
WHEREAS, the board of directors of the Company has voted to amend the Rights Agreement so that
(1) the execution of the Merger Agreement and the consummation of the transactions contemplated
thereby, including the Offer and the Merger, do not, and will not, result in the ability of any
person to exercise any Company Rights or enable or require such Company Rights to separate from the
shares of Company Common Stock to which they are attached or to be triggered or become exercisable
and (2) the Rights Agreement will expire immediately prior to the effective time of the Merger; and
WHEREAS, pursuant to Section 27(a) of the Rights Agreement, an appropriate officer of
the Company has delivered to the Rights Agent a certificate stating that this Amendment is in
compliance with the terms of Section 27 of the Rights Agreement and, pursuant to
Section 27(a) of the Rights Agreement, the Company has directed the Rights Agent to execute
this Amendment;
NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereto hereby agree as follows:
1. Definitions; Interpretation. All capitalized terms used herein, unless otherwise
defined herein, shall have the meanings given them in the Rights Agreement, and each reference in
the Rights Agreement to “this Agreement,” “hereof,” “herein,” “hereunder” or “hereby” and each
other similar reference shall be deemed to refer to the Rights Agreement as amended hereby.
2. Amendments to Section 1.
(a) The definition of “Acquiring Person” in Section 1(a) of the Rights Agreement is
hereby amended by adding the following to the end of such definition:
Notwithstanding anything in this Agreement that might otherwise be
deemed to the contrary, neither Purchaser, Merger Subsidiary, nor
any of either of their respective Affiliates or Associates shall be
deemed to be an Acquiring Person solely by reason or as a result of
(i) the approval, execution or delivery of the Merger Agreement,
including any amendment or supplement thereto, (ii) the public
announcement of such execution and delivery, (iii) the public
announcement or the amendment of the Offer or (iv) the consummation
of any of the transactions specifically contemplated by the Merger
Agreement (including the Offer and the Merger), each upon the terms
and subject to the conditions set forth in the Merger Agreement.
(b) The definition of “Distribution Date” in Section 1(l) of the Rights Agreement is
hereby amended by adding the following to the end of such definition:
Notwithstanding anything in this Agreement that might otherwise be
deemed to the contrary, no Distribution Date shall be deemed to have
occurred solely by reason or as a result of (i) the approval,
execution or delivery of the Merger Agreement, including any
amendment or supplement thereto, (ii) the public announcement of
such execution and delivery, (iii) the public announcement or the
amendment of the Offer or (iv) the consummation of any of the
transactions specifically contemplated by the Merger Agreement
(including the Offer and the Merger), each upon the terms and
subject to the conditions set forth in the Merger Agreement.
(c) The definition of “Expiration Date” in Section 1(q) of the Rights Agreement is
hereby amended and restated in its entirety as follows:
“Expiration Date” shall mean the earliest to occur of: (i)
the Close of Business on the Final Expiration Date, (ii) the
Redemption Date, (iii) the time at which the Board of Directors
orders the exchange of the Rights as provided in Section 24
hereof or (iv) the time immediately prior to the Effective Time (as
defined in the Merger Agreement).
(d) Section 1 of the Rights Agreement is hereby amended by adding the following
paragraphs after Section 1(s) but before Section 1(t):
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(s-1) “Merger” shall mean the merger of Merger Subsidiary
with and into the Company upon the terms and subject to the
conditions set forth in the Merger Agreement.
(s-2) “Merger Agreement” shall mean that certain Agreement
and Plan of Merger, dated as of January 21, 2008, among the Company,
Purchaser and Merger Subsidiary.
(e) Section 1 of the Rights Agreement is hereby amended by adding the following
paragraph after Section 1(t) but before Section 1(u):
(t-1) “Offer” shall have the meaning ascribed to such term
in the Merger Agreement.
(f) Section 1 of the Rights Agreement is hereby amended by adding the following
paragraph after Section 1(ee) but before Section 1(ff):
(ee-1) “Purchaser” shall mean Roche Holdings, Inc., a
Delaware corporation.
(ee-2) “Merger Subsidiary” shall mean Rocket Acquisition
Corp., a Delaware corporation and an indirect wholly-owned
subsidiary of Purchaser.
(g) The definition of “Triggering Event” in Section 1(qq) of the Rights Agreement is
hereby amended by deleting the period at the end of such definition and adding the following
to the end of such definition:
; provided that, if such Person is determined not have become an
Acquiring Person pursuant to Section 1(a) hereof, then no
Triggering Event shall be deemed to have occurred.
2. Amendment to Section 13. Section 13 of the Rights Agreement is hereby
amended by adding the following paragraph immediately following Section 13(f):
(g) Notwithstanding anything in this Agreement that might otherwise
be deemed to the contrary, the provisions of this Section 13
shall not be applicable to the Merger or the Offer.
3. Amendment to Exhibit B. Exhibit B to the Rights Agreement is hereby
amended by substituting the following in place of the first sentence of the first paragraph
thereof:
NOT EXERCISABLE AFTER THE EARLIEST OF (i) XXXXX 0, 0000, (xx) THE
DATE TERMINATED BY THE COMPANY, (iii) THE DATE THE COMPANY EXCHANGES
THE RIGHTS PURSUANT TO THE RIGHTS AGREEMENT OR (iv) THE
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TIME IMMEDIATELY PRIOR TO THE EFFECTIVE TIME (AS DEFINED IN THE
MERGER AGREEMENT).
4. Amendments to Exhibit C.
(a) Exhibit C to the Rights Agreement is hereby amended by substituting the
following in place of the paragraph captioned “Expiration of Rights:”
The Rights expire on the earliest of (a) Xxxxx 0, 0000, (x) exchange
or redemption of the Rights as described above or (c) the time
immediately prior to the Effective Time (as defined in that certain
Agreement and Plan of Merger, dated as of January 21, 2008 (the
“Merger Agreement”), among the Company, Roche Holdings, Inc.
(“Purchaser”) and Rocket Acquisition Corp. (“Merger Subsidiary”)).
(b) Exhibit C to the Rights Agreement is hereby amended by adding the following
immediately following the paragraph captioned “Taxes:”
Merger Agreement:
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Neither Purchaser, Merger Subsidiary, nor any of either of their respective affiliates or associates will be deemed to be an Acquiring Person, and no Distribution Date will be deemed to have occurred, solely by reason or as a result of (a) the approval, execution or delivery of the Merger Agreement, (b) the public announcement of such execution and delivery, (c) the public announcement or the amendment of the Offer (as defined in the Merger Agreement) or (d) the consummation of any of the transactions specifically contemplated by the Merger Agreement. |
5. Descriptive Headings. The descriptive headings of this Amendment have been
inserted for convenience only and shall not control or affect the meaning or construction of any of
the provisions of this Amendment.
6. Governing Law. This Amendment shall be deemed to be a contract made under the laws
of the State of Delaware and for all purposes shall be governed by and construed in accordance with
the laws of such state applicable to contracts made and performed entirely within such state.
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7. Counterparts. This Amendment may be executed in any number of counterparts; each
of such counterparts shall for all purposes be deemed to be an original; and all such counterparts
shall together constitute but one and the same instrument.
8. Other Terms Unchanged. Except as expressly set forth herein, this Amendment shall
not, by implication or otherwise, alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Rights Agreement, all of which
are ratified and affirmed in all respects and shall continue in full force and effect.
9. Severability. If any provision of this Amendment is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the provisions of this
Amendment shall remain in full force and effect and shall in no way be affected, impaired or
invalidated.
10. Effective Date. This Amendment shall become effective as of the date first above
written.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the day and year first above written.
| VENTANA MEDICAL SYSTEMS, INC. |
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| /s/ Xxxxxxxxxxx X. Xxxxxxx | ||||
| Xxxxxxxxxxx X. Xxxxxxx | ||||
| President and Chief Executive Officer | ||||
| XXXXX FARGO BANK, N.A., as Rights Agent |
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| /s/ Xxxxx Xxxxx | ||||
| Xxxxx Xxxxx | ||||
| Assistant Vice President | ||||
Amendment to Rights Agreement
