FORM OF TENDER AND SUPPORT AGREEMENT
Exhibit 99.1
EXECUTION COPY
FORM OF TENDER AND SUPPORT AGREEMENT
TENDER AND SUPPORT AGREEMENT (this “Agreement”), dated as of January 27, 2011, by and
among Verizon Communications Inc., a Delaware corporation (“Parent”), Verizon Holdings
Inc., a Delaware corporation (“Purchaser”), and ____________________
(“Stockholder”).
WHEREAS, concurrently with the execution of this Agreement, Terremark Worldwide, Inc., a
Delaware corporation (the “Company”), Parent and Purchaser are entering into an Agreement
and Plan of Merger of even date herewith (the “Merger Agreement”);
WHEREAS, capitalized terms used but not defined in this Agreement have the meanings ascribed
thereto in the Merger Agreement;
WHEREAS, as of the date hereof, Stockholder is the beneficial owner of _______________ shares
of common stock, $.001 par value, of the Company (such Shares, together with any other shares of
Company Common Stock acquired by Stockholder after the date hereof, being collectively referred to
herein as the “Stockholder Shares”); and
WHEREAS, as a condition to their willingness to enter into the Merger Agreement, Parent and
Purchaser have required that Stockholder enter into this Agreement and, in order to induce Parent
and Purchaser to enter into the Merger Agreement, Stockholder is willing to enter into this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements
contained herein, the parties hereto, intending to be legally bound hereby, agree as follows:
1. Agreements of Stockholder.
(a) Tender. Unless this Agreement shall have been terminated in accordance with its
terms, Stockholder shall (i) as promptly as practicable and in any event within ten (10) Business
Days of the commencement of the Offer and receipt of all documents or instruments delivered
pursuant to the terms of the Offer, validly tender (or cause to be tendered) all of the Stockholder
Shares into the Offer, pursuant to and in accordance with the terms of the Offer, and (ii) not
withdraw (or cause to be withdrawn) any Stockholder Shares from the Offer.
(b) Voting. From the date hereof until any termination of this Agreement in
accordance with its terms, at any meeting of the stockholders of the Company however called (or any
action by written consent in lieu of a meeting) or any adjournment thereof, Stockholder, to the
extent submitted to the holders of Company Common Stock for their approval as required by
applicable Law and/or the Company Charter Documents, shall vote all Stockholder Shares (or cause
them to be voted) or (as
appropriate) execute written consents in respect thereof, (i) for the adoption of the Merger
Agreement, unless a Company Adverse Recommendation Change has been made in respect of a Superior
Proposal (ii) against any action or agreement (including, without limitation, any amendment of any
agreement) that Stockholder knows would result in a
breach of any representation, warranty,
covenant, agreement or other obligation of the Company in the Merger Agreement, if such action or
agreement would result in the failure of any of the conditions set forth in Annex A to the Merger
Agreement or in the failure of any condition of Parent or Purchaser to consummate the Merger set
forth in Sections 6.2(a) or 6.2(b) of the Merger Agreement, (iii) against any Takeover Proposal and
(iv) against any agreement (including, without limitation, any amendment of any agreement),
amendment of the Company Charter Documents or other action that is intended or would reasonably be
expected to prevent, impede, interfere with, or delay, the consummation of the Offer or the Merger.
Any such vote shall be cast (or consent shall be given) by Stockholder in accordance with such
procedures relating thereto so as to ensure that it is duly counted, including for purposes of
determining that a quorum is present and for purposes of recording the results of such vote (or
consent).
(c) Voting. Stockholder shall retain at all times the right to vote all Stockholder
Shares in its sole discretion and without any other limitation on those matters other than those
set forth in this Section 1(b) that are at any time or from time to time presented for
consideration to the Company’s stockholders generally.
(d) Appraisal Rights. Stockholder hereby waives, and agrees not to exercise or
assert, any appraisal or similar rights under Section 262 of the DGCL or other applicable Law in
connection with the Transactions.
(e) Restriction on Transfer; Proxies; Non-Interference; etc. From the date hereof
until any termination of this Agreement in accordance with its terms, Stockholder shall not
directly or indirectly (i) sell, transfer (including by operation of law), give, pledge, encumber,
assign or otherwise dispose of (including, without limitation, any Constructive Disposition (as
hereinafter defined)), or enter into any contract, option or other arrangement or understanding
with respect to the sale, transfer, gift, pledge, encumbrance, assignment or other disposition of,
any Stockholder Shares (or any right, title or interest thereto or therein), (ii) deposit any
Stockholder Shares into a voting trust or grant any proxies or enter into a voting agreement, power
of attorney or voting trust with respect to any Stockholder Shares, (iii) take any action that
would make any representation or warranty of Stockholder set forth in this Agreement untrue or
incorrect in any material respect or have the effect of preventing, disabling or delaying
Stockholder from performing any of its obligations under this Agreement or (iv) agree (whether or
not in writing) to take any of the actions referred to in the foregoing clauses (i), (ii) or (iii)
of this Section 1(e). As used herein, the term “Constructive Disposition” means, with
respect to any Stockholder Shares, a short sale with respect to such security, entering into or
acquiring an offsetting derivative contract with respect to such security, entering into or
acquiring a futures or forward contract to deliver such security or entering into any other hedging
or other derivative transaction that has the effect of materially changing the economic benefits
and risks of ownership; provided, however,
that nothing in this Agreement shall restrict the ability of the Stockholder to engage in any
hedging, derivative or other transactions relating to, or to otherwise transfer, any securities of
any Person other than the Company.
(f) Publication. Stockholder consents to Parent and Purchaser publishing and
disclosing in the Offer Documents and the Proxy Statement Stockholder’s identity and ownership of
Company Common Stock and the nature of Stockholder’s commitments,
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arrangements and understandings
under this Agreement. Parent agrees to provide Stockholder reasonable advance opportunity to
review and comment on such disclosure. Stockholder shall not issue any press release or make any
other public statement with respect to this Agreement, the Merger Agreement or the Transactions
without the prior written consent of Parent, except for filings required under the Exchange Act
with respect to Stockholder’s beneficial ownership of Stockholder Shares and except as may be
required by applicable Law.
2. Representations and Warranties of Parent and Purchaser. Parent and Purchaser each
hereby jointly and severally represents and warrants to Stockholder as follows:
(a) Organization; Authority. Each of Parent and Purchaser is a corporation duly
organized, validly existing and in good standing under the Laws of the jurisdiction in which it is
incorporated. Each of Parent and Purchaser has all necessary corporate power and authority to
execute and deliver this Agreement, and to perform its respective obligations under this Agreement.
The execution, delivery and performance by Parent and Purchaser of this Agreement have been duly
authorized and approved by their respective Boards of Directors (and prior to the Effective Time
will be adopted by Parent as the sole stockholder of Purchaser), and no other corporate action on
the part of Parent and Purchaser is necessary to authorize the execution, delivery and performance
by Parent and Purchaser of this Agreement. This Agreement has been duly executed and delivered by
Parent and Purchaser and, assuming due authorization, execution and delivery hereof by the Company,
constitutes a legal, valid and binding obligation of each of Parent and Purchaser, enforceable
against each of them in accordance with its terms, subject to the Bankruptcy and Equity Exception.
3. Representations and Warranties of Stockholder. Stockholder hereby represents and
warrants to Parent and Purchaser as follows:
(a) Organization; Authority. Stockholder is a ______________________, duly organized,
validly existing under the laws of the ____________. Stockholder has all necessary power and
authority to execute and deliver this Agreement and to perform its obligations under this
Agreement. The execution, delivery and performance by Stockholder of this Agreement and the
transactions contemplated hereby have been duly authorized and approved by all necessary action on
the part of Stockholder and no further action on the part of Stockholder is necessary to authorize
the execution, delivery and performance by Stockholder of this Agreement. This Agreement has been
duly executed and delivered by
Stockholder and, assuming the due and valid authorization, execution and delivery hereof by
Parent and Purchaser, constitutes a valid and binding obligation of Stockholder, enforceable
against Stockholder in accordance with its terms, subject to the Bankruptcy and Equity Exception.
(b) Consents and Approvals; No Violations. No consents or approvals of, or filings,
declarations or registrations with, any Governmental Authority or third party are necessary for the
performance by Stockholder of its obligations under this Agreement, other than such other consents,
approvals, filings, declarations or registrations that, if not obtained, made or given, would not,
individually or in the aggregate, reasonably be expected to prevent or materially delay the
performance by Stockholder of any of its obligations under this Agreement and except for filings
required under the Exchange Act with respect to Stockholder’s beneficial
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ownership of Stockholder
Shares. Neither the execution and delivery of this Agreement by Stockholder, nor the performance
by Stockholder with its obligations under this Agreement, will (A) conflict with or violate any
provision of the organizational documents of Stockholder or (B) (x) violate any Law, judgment, writ
or injunction of any Governmental Authority applicable to Stockholder or any of its subsidiaries or
any of their respective properties or assets, or (y) violate, conflict with, result in the loss of
any material benefit under, constitute a default (or an event which, with notice or lapse of time,
or both, would constitute a default) under, result in the termination of or a right of termination
or cancellation under, accelerate the performance required by, or result in the creation of any
Lien upon any of the respective properties or assets of, Stockholder or any of its Affiliates
under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, deed of
trust, license, permit, lease, agreement or other instrument or obligation to which Stockholder or
any of its Affiliates is a party, or by which they or any of their respective properties or assets
may be bound or affected, except, in the case of clause (B), for such violations, conflicts,
losses, defaults, terminations, cancellations, accelerations or Liens as would not, individually or
in the aggregate, reasonably be expected to prevent or materially delay the performance by
Stockholder of any of its obligations under this Agreement.
(c) Ownership of Shares. Stockholder owns, beneficially, all of the Stockholder
Shares. Stockholder owns all of the Stockholder Shares free and clear of any proxy, voting
restriction, adverse claim or other Lien (other than proxies and restrictions in favor of Parent
and Purchaser pursuant to this Agreement and except for such transfer restrictions of general
applicability as may be provided under the Securities Act and the “blue sky” laws of the various
states of the United States). Without limiting the foregoing, except for proxies and restrictions
in favor of Parent and Purchaser pursuant to this Agreement, except as described in a Schedule 13D
or Schedule 13G filed with the SEC prior to the date hereof and except for such transfer
restrictions of general applicability as may be provided under the Securities Act and the “blue
sky” laws of the various states of the United States, Stockholder has sole voting power and sole
power of disposition with respect to all Stockholder Shares, with no restrictions on Stockholder’s
rights of voting or disposition pertaining thereto and no Person other than Stockholder
has any right to direct or approve the voting or disposition of any Stockholder Shares. As of
the date hereof, Stockholder does not own, beneficially or of record, any securities of the Company
other than the Stockholder Shares.
(d) Brokers. No broker, investment banker, financial advisor or other Person is
entitled to any broker’s, finder’s, financial advisor’s or other similar fee or commission that is
payable by the Company, Parent or any of their respective subsidiaries in connection with the
Transactions based upon arrangements made by or on behalf of Stockholder.
4. Termination. This Agreement shall terminate automatically without any further
action of the parties on the first to occur of (a) the termination of the Merger Agreement in
accordance with its terms and (b) the Effective Time or, if earlier, on the mutual written consent
of the parties hereto. Stockholder shall have the right to terminate this Agreement immediately
following (1) any decrease in consideration payable in the Offer or the Merger, (2) any change to
the form of consideration payable in the Offer or the Merger to include a non-publicly-traded
security, (3) the first anniversary of the date hereof and (4) any reduction of the Minimum
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Condition to less than 50% of the Shares then outstanding on a fully-diluted basis.
Notwithstanding the foregoing, (i) nothing herein shall relieve any party from liability for breach
of this Agreement and (ii) the provisions of this Section 4 and Section 5 of this Agreement, shall
survive any termination of this Agreement.
5. Miscellaneous.
(a) Action in Stockholder Capacity Only. The parties acknowledge that this Agreement
is entered into by Stockholder solely in its capacity as owner of the Stockholder Shares and that
nothing in this Agreement is intended to or shall in any way restrict or limit any director of the
Company from taking any action in his or her capacity as a director of the Company that is
necessary for him or her to comply with his or her fiduciary duties as a director of the Company,
including, without limitation, participating in his or her capacity as a director of the Company in
any discussions or negotiations in accordance with, and making any determinations or
recommendations in his or her capacity as a director with respect to Sections 5.2, 5.4, Article VI
and Article VII of the Merger Agreement, and no action taken by any individual in his or her
capacity as a director of the Company shall give rise to or be deemed a breach of this Agreement.
(b) Expenses. All costs and expenses incurred in connection with the transactions
contemplated by this Agreement shall be paid by the party incurring such costs and expenses.
(c) Additional Shares. Until any termination of this Agreement in accordance with its
terms, Stockholder shall promptly notify Parent of the number of Shares, if any, as to which
Stockholder acquires record or beneficial ownership after the date hereof. Any Shares as to which
Stockholder acquires record or beneficial ownership after the date hereof and prior to termination
of this Agreement shall be Stockholder
Shares for purposes of this Agreement. Without limiting the foregoing, in the event of any
stock split, stock dividend or other change in the capital structure of the Company affecting the
Company Common Stock, the number of Shares constituting Stockholder Shares shall be adjusted
appropriately and this Agreement and the obligations hereunder shall attach to any additional
shares of Company Common Stock or other voting securities of the Company issued to Stockholder in
connection therewith.
(d) Definition of “Beneficial Ownership”. For purposes of this Agreement, “beneficial
ownership” with respect to (or to “own beneficially”) any securities shall mean having “beneficial
ownership” of such securities (as determined pursuant to Rule 13d-3 under the Exchange Act),
including pursuant to any agreement, arrangement or understanding, whether or not in writing.
(e) Further Assurances. From time to time, at the request of Parent and without
further consideration, prior to the termination of this Agreement Stockholder shall execute and
deliver such additional documents and take all such further action as may be reasonably required to
consummate and make effective, in the most expeditious manner practicable, the transactions
contemplated by this Agreement.
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(f) Entire Agreement; No Third Party Beneficiaries. This Agreement constitutes the
entire agreement, and supersedes all prior agreements and understandings, both written and oral,
among the parties, or any of them, with respect to the subject matter hereof. This Agreement is
not intended to and shall not confer upon any Person other than the parties hereto any rights
hereunder.
(g) Assignment; Binding Effect. Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the parties hereto (whether by
operation of law or otherwise) without the prior written consent of the other parties, except that
Purchaser may assign its rights and interests hereunder to Parent or to any wholly-owned subsidiary
of Parent if such assignment would not cause a delay in the consummation of any of the
Transactions, provided that no such assignment shall relieve Purchaser of its obligations hereunder
if such assignee does not perform such obligations. Subject to the preceding sentence, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns. Any purported assignment not permitted under this
Section shall be null and void.
(h) Amendments; Waiver. This Agreement may not be amended or supplemented, except by
a written agreement executed by the parties hereto. Any party to this Agreement may (A) waive any
inaccuracies in the representations and warranties of any other party hereto or extend the time for
the performance of any of the obligations or acts of any other party hereto or (B) waive compliance
by the other party with any of the agreements contained herein. Notwithstanding the foregoing, no
failure or delay by Parent or Purchaser in exercising any right hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right hereunder. Any agreement on the part of a party
hereto to any such extension or waiver shall be valid only if set forth in an instrument in
writing signed on behalf of such party.
(i) Severability. If any term or other provision of this Agreement is determined by a
court of competent jurisdiction to be invalid, illegal or incapable of being enforced by any rule
of Law or public policy, all other terms, provisions and conditions of this Agreement shall
nevertheless remain in full force and effect. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible to the fullest extent permitted by applicable Law and public policy in an acceptable
manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.
(j) Counterparts. This Agreement may be executed in separate counterparts, each of
which shall be deemed to be an original but all of which taken together shall constitute one and
the same agreement. This Agreement shall become effective when each party hereto shall have
received counterparts hereof signed by the other parties hereto.
(k) Descriptive Headings. Headings of Sections and subsections of this Agreement are
for convenience of the parties only, and shall be given no substantive or interpretive effect
whatsoever.
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(l) Notices. All notices, requests and other communications to any party hereunder
shall be in writing (including facsimile transmission) and shall be given,
if to Parent or Purchaser, to:
Verizon Communications Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx, Esq.
Facsimile: (000) 000-0000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx, Esq.
Facsimile: (000) 000-0000
with a copy (which shall not constitute notice) to:
Weil, Gotshal & Xxxxxx LLP
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxxxxx
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxxxxx
Facsimile: (000) 000-0000
if to Stockholder, to:
_____________________
_____________________
_____________________
Attention: ____________
Facsimile: ____________
_____________________
_____________________
Attention: ____________
Facsimile: ____________
with a copy (which shall not constitute notice) to:
_____________________
_____________________
_____________________
Attention: ____________
Facsimile: ____________
_____________________
_____________________
Attention: ____________
Facsimile: ____________
or such other address or facsimile number as such party may hereafter specify for the purpose by
notice to the other parties hereto. All such notices, requests and other communications shall be
deemed received on the date of receipt by the recipient thereof if received prior to 5 P.M. in the
place of receipt and such day is a Business Day in the place of receipt. Otherwise, any such
notice, request or communication shall be deemed not to have been received until the next
succeeding Business Day in the place of receipt.
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(m) Governing Law; Enforcement; Jurisdiction; Waiver of Jury Trial.
(i) This Agreement shall be governed by, and construed in accordance with, the internal
procedural and substantive laws of the State of Delaware, without regard to the choice of law rules
thereof.
(ii) All actions and proceedings arising out of or relating to this Agreement shall be
exclusively heard and determined in the Chancery Court of the State of Delaware or any federal
court sitting in the State of Delaware, and the parties hereto hereby irrevocably submit to the
exclusive jurisdiction of such courts (and, in the case of appeals, appropriate appellate courts
therefrom) in any such action or proceeding and irrevocably waive the defense of an inconvenient
forum to the maintenance of any such action or proceeding. The consents to jurisdiction set forth
in this paragraph shall not constitute general consents to service of process in the State of
Delaware and shall have no effect for any purpose except as provided in this paragraph and shall
not be deemed to confer rights on any Person other than the parties hereto. The parties hereto
agree that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by
applicable Law.
(iii) Each of the parties hereto hereby irrevocably waives any and all rights to trial by jury
in any legal proceeding arising out of or related to this Agreement.
(iv) The parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties shall be entitled to seek and obtain
an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the
terms and provisions of this Agreement in the Chancery Court of the State of Delaware or any
federal court sitting in the State of Delaware, this being in addition to any other remedy to which
they are entitled at law or in equity.
[signature page follows]
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IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date
first above written.
| VERIZON COMMUNICATIONS INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
| VERIZON HOLDINGS INC. | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
Signature Page to Tender and Support Agreement
