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EXHIBIT 1
VOTING AND OPTION AGREEMENT
THIS VOTING AND OPTION AGREEMENT (this "Agreement") is entered
into as of August 29, 1997, by and among BTG, INC., a Virginia corporation
("Acquiror"), MICROS-TO-MAINFRAMES, INC., a New York corporation (the
"Company"), and the undersigned stockholders of the Company (each a
"Stockholder" and collectively, the "Stockholders").
WHEREAS, the Stockholders are the record and beneficial owners
of the number of shares of common stock, par value $.001 per share, of the
Company ("Company Common Stock") as set forth on Exhibit A hereto;
WHEREAS, Acquiror, BTG MERGER SUB, INC., a New York
corporation and a wholly-owned subsidiary of Acquiror ("Merger Sub"), and the
Company have entered into an Agreement and Plan of Merger (the "Merger
Agreement") dated as of the date hereof, which provides, among other things,
for the merger of the Company with and into Merger Sub or the merger of Merger
Sub with and into the Company (the "Merger") and the conversion and exchange of
Company Common Stock into shares of common stock of Acquiror, no par value
("Acquiror Common Stock"), and cash;
WHEREAS, to induce Acquiror to enter into the Merger Agreement
and to effect the Merger, the Stockholders and the Company have agreed to enter
into this Agreement; and
WHEREAS, all capitalized terms used herein and not otherwise
defined herein shall have the meanings given such terms in the Merger
Agreement.
NOW, THEREFORE, in consideration of the premises and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:
SECTION 1. DISPOSITION OF SHARES
Each Stockholder agrees that such Stockholder will not sell, transfer,
pledge, assign or otherwise encumber or dispose of, enter into any contract,
option or other agreement with respect to, the sale, transfer, pledge,
assignment or other encumbrance or disposition of any shares of the Company
Common Stock now owned or hereafter acquired beneficially or of record by such
Stockholder.
SECTION 2. VOTING
Each Stockholder agrees to vote all of the shares of Company Common
Stock now owned or hereafter acquired beneficially or of record by such
Stockholder (a) in favor of the Merger and the adoption of the Merger Agreement
and the transactions contemplated thereby (including any amendments or
modifications of the terms thereof approved by the board of directors of the
Company and by Acquiror) in connection with any meeting of, or solicitation of
consents from, the stockholders of the Company at which or in connection with
which the Merger and the Merger Agreement are submitted for the consideration
and vote of the stockholders of the Company; (b) against approval or adoption
of any extraordinary corporate transaction (other than the Merger, the Merger
Agreement or the transactions contemplated thereby) including, without
limitation, any transaction involving: (i) the sale or transfer of all or
substantially all of the common stock of the Company, whether by merger,
consolidation or other business combination; (ii) a sale or transfer of all or
substantially all of the assets of the Company and its subsidiaries, (iii) a
reorganization, recapitalization or liquidation of the Company and its
subsidiaries, or (iv) any charter or bylaw amendment creating any new class of
securities of the Company or otherwise affecting the rights of any class of
security as currently in effect; (c) against approval or adoption of
resolutions which would have the effect of preventing, delaying or otherwise
frustrating consummation of the Merger or otherwise preventing or
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materially delaying the Company from performing its obligations under the
Merger Agreement; and (d) against any action which would constitute a breach of
any provision of the Merger Agreement or this Agreement. To the extent
inconsistent with the foregoing provisions of this Section 2, each Stockholder
hereby revokes any and all previous proxies with respect to the shares of the
Company Common Stock owned beneficially or of record by such Stockholder. Each
Stockholder hereby waives any rights of appraisal or rights to dissent from the
Merger that such Stockholder may have.
SECTION 3. GRANT OF OPTIONS
(a) Subject to the terms and conditions set forth in this
Agreement, each Stockholder hereby irrevocably grants to Acquiror an option
(each an "Option") to purchase the Company Common Stock now owned or hereafter
acquired beneficially or of record by such Stockholder at a cash exercise price
of Five Dollars and Sixty-Two Cents ($5.62) per share, as adjusted upon the
declaration of any stock splits, dividends, recapitalizations or other
distributions or changes affecting the Company Common Stock (the "Option
Price").
(b) During the period prior to the termination of this
Agreement in accordance with its terms, Acquiror or its designee may exercise
any Option in whole but not in part, at any time (i) upon the occurrence of
(and during the thirty (30) day period following) a breach by a Stockholder of
any of such Stockholder's obligations under this Agreement or a breach by the
Company of its obligations under Section 7.9 of the Merger Agreement; (ii) any
person or group (A) other than Acquiror or its affiliates shall have acquired
or become the beneficial owners (within the meaning of Rule 13d-3 under the
Exchange Act) of more than twenty percent (20%) of the outstanding shares of
Company Common Stock, or (B) any person or group other than Acquiror or its
affiliates shall have been granted any option or right, conditional or
otherwise, to acquire more than twenty percent (20%) of the outstanding shares
of Company Common Stock; or (iii) any person other than Acquiror or its
affiliates shall have made a tender offer or exchange offer (or entered into an
agreement to make such a tender offer or exchange offer) for at least twenty
percent (20%) of the then outstanding shares of Company Common Stock.
(c) If Acquiror elects to exercise an Option at such time
as such Option is exercisable pursuant to Section 3(b), Acquiror shall deliver
written notice (the "Exercise Notice") to the Stockholder specifying Acquiror's
intention to exercise such Option, the total number of shares of Company Common
Stock that Acquiror wishes to purchase and a date and time for the closing of
such purchase (a "Closing"), which Closing shall not be less than three (3) nor
more than thirty (30) days after the later of (i) the date such Exercise Notice
is given and (ii) the expiration or termination of any applicable waiting
period under the HSR Act. All Closings under this Section 3 shall be held at
the principal executive offices of Acquiror or its counsel, or at such other
place as the Stockholder and Acquiror may agree.
(d) At each Closing hereunder, (i) Acquiror or its
designee will make payment to the Stockholder of the aggregate price for the
shares of Company Common Stock being so purchased by delivery of a certified
check, official bank check or wire transfer of funds pursuant to the
Stockholder's instructions payable to the Stockholder in an amount equal to the
product obtained by multiplying the Option Price by the number of shares of
Company Common Stock to be purchased, and (ii) upon receipt of such payment the
Stockholder will deliver to Acquiror or its designee a certificate or
certificates representing the number of validly issued, fully paid and
non-assessable shares of Company Common Stock so purchased, in the
denominations and registered in such names designated to the Stockholder in
writing by Acquiror.
SECTION 4. REPRESENTATIONS AND WARRANTIES OF STOCKHOLDERS
(a) Each Stockholder represents and warrants to Acquiror
as follows:
(i) The Stockholder has the necessary power and
authority to enter into this agreement and to perform the Stockholder's
obligations under this Agreement. This Agreement has been duly
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executed and delivered by the Stockholder and constitutes a legal, valid and
binding obligation of the Stockholder, enforceable in accordance with its
terms, except as such enforceability may be limited by bankruptcy and other
similar laws of general applicability relating to or affecting creditors'
rights generally and by the application of general principles of equity.
(ii) The execution and delivery of this Agreement
and the consummation of the transactions herein contemplated will not conflict
with or violate any law, regulation, court order, judgment or decree applicable
to the Stockholder or by which the property of the Stockholder is bound or
affected, or conflict with or result in any breach of or constitute a default
under any contract or agreement to which the Stockholder is a party or by which
the Stockholder or his properties are bound or affected, which conflict,
violation, breach or default would adversely affect the Stockholder's ability
to perform its obligations under this Agreement.
(iii) The number of shares set forth on Exhibit A
next to the Stockholder's name are the only shares of voting stock owned
beneficially or of record by Stockholder (the "Shares") and the Stockholder
holds no options, warrants, or other rights to acquire shares of any class of
capital stock of the Company, except as set forth on Exhibit A. The
Stockholder has the sole power respecting voting and transfer of the Shares.
The Shares and the certificates representing the Shares are now, and at all
times during the term hereof will be, owned beneficially and of record by the
Stockholder, free and clear of all liens, claims, security interests, proxies,
options, warrants or other rights, voting trusts or agreements, understandings
or arrangements or any other encumbrances whatsoever, except for any such
encumbrances arising under this Agreement.
SECTION 5. TERMINATION
This Agreement shall terminate on the earlier to occur of (a) the date
on which the Merger is consummated or (b) the date on which the Merger
Agreement is terminated; provided, however, that the provisions of Sections 1
and 2 hereof shall survive the termination of this Agreement for the thirty
(30) day period specified in Section 3(b) if Acquiror shall have the right to
exercise the Option as of the date of such termination; provided, further, that
nothing herein shall relieve any party for any breach of this Agreement if this
Agreement.
SECTION 6. ACCEPTANCE BY THE COMPANY
The Company, by the execution of this Agreement, accepts delivery of
this Agreement and agrees not to take any action inconsistent with the terms
and conditions herein. The Company shall make note of this Agreement in the
Company's corporate books and records.
SECTION 7. FURTHER ASSURANCES
Each Stockholder shall execute and deliver such additional instruments
and other documents and shall take such further actions as may be reasonably
necessary to effectuate, carry out and comply with all of such Stockholder's
obligations under this Agreement. Without limiting the generality of the
foregoing, none of the parties hereto shall enter into any agreement or
arrangement (or alter, amend or terminate any existing agreement or
arrangement) or transaction if such action would impair or interfere with the
ability of any party to effectuate, carry out and comply with all of the terms
of this Agreement.
SECTION 8. SPECIFIC PERFORMANCE
Each Stockholder acknowledges and agrees that Acquiror would be
irreparably damaged in the event any of the provisions of this Agreement were
not performed by such Stockholder in accordance with their specific terms or
were otherwise breached. It is accordingly agreed that Acquiror shall be
entitled to an injunction or injunctions
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to prevent breaches of the provisions of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the United States
or any state hereof having jurisdiction, in addition to any other remedy to
which Acquiror may be entitled at law or equity. Each Stockholder hereby
waives any objection to the imposition of such relief or to the posting of a
bond in connection therewith.
SECTION 9. GOVERNING LAW
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE PRINCIPLE OF
CONFLICTS OF LAW.
SECTION 10. PARTIES IN INTEREST
This Agreement shall be binding upon each of the parties hereto and
their respective successors and assigns. Subject to the preceding sentence
hereof, this Agreement shall be binding upon and inure solely to the benefit of
each party hereto, and nothing in this Agreement, express or implied, is
intended to or shall confer upon any other person or persons any rights,
benefits or remedies of any nature whatsoever under or by reason of this
Agreement.
SECTION 11. AMENDMENT
This Agreement shall not be amended, altered or modified except by an
instrument in writing duly executed and delivered on behalf of each of the
parties hereto.
SECTION 12. NOTICES
All notices and other communications given or made pursuant hereto
shall be in writing and shall be deemed to have been duly given or made as of
the date delivered, mailed or transmitted, and shall be effective upon receipt,
if delivered personally, mailed by registered or certified mail (postage
prepaid, return receipt requested) to the parties at the following addresses
(or at such other address for a party as shall be specified by like changes of
address) or sent by electronic transmission to the telecopier number specified
below:
If to any Stockholder:
The address set forth for such Stockholder on Exhibit A.
If to Acquiror:
BTG, Inc.
0000 Xxxxxxx Xxxxx Xxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxxxxx Xxx
Facsimile: (000) 000-0000
With a copy (which shall not constitute notice) to:
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Xxxxx & Xxxxxxx L.L.P.
000 Xxxxxxxxxx Xxxxxx, X.X.
Xxxxxxxxxx, X.X. 00000
Attention: Xxxxx X.X. Xxxxxx, Xx.
Facsimile: (000) 000-0000
If to the Company:
Micros-to-Mainframes, Inc.
000 Xxxxxxxxx Xxx
Xxxxxx Xxxxxxx, Xxx Xxxx 00000
Attention: Xxxxxx X. Xxxxxxx
Facsimile: (000) 000-0000
With a copy (which shall not constitute notice) to:
Snow Xxxxxx Xxxxxx P.C.
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx Xxxxxx
Facsimile: (000) 000-0000
SECTION 13. ENTIRE AGREEMENT; ASSIGNMENT
This Agreement (a) constitutes the entire agreement between the
parties hereby pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or
written, of the parties and (b) shall not be assigned by operation of law or
otherwise, except that this Agreement shall be binding upon the Stockholders
and their successors and assigns.
SECTION 14. HEADINGS
Section headings are included solely for convenience and are not
considered to be part of this Agreement and are not intended to be an accurate
description of the contents thereof.
SECTION 15. COUNTERPARTS
This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall become
effective when one or more counterparts have been signed by each of the parties
and delivered to the other parties, it being understood that all parties need
not sign the same counterpart.
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IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Voting and Option Agreement, or have caused this Voting and
Option Agreement to be duly executed and delivered on their behalf as of the
date first above written.
BTG, INC.
By: /s/ Xxxxxx X. Xxxxxxx
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Name: Xxxxxx X. Xxxxxxx
------------------------------------
Title: President and CEO
-----------------------------------
MICROS-TO-MAINFRAMES, INC.
By: /s/ Xxxxxx X. Xxxxxxx
--------------------------------------
Name: Xxxxxx X. Xxxxxxx
------------------------------------
Title: President and CEO
-----------------------------------
STOCKHOLDERS:
------------
/s/ Xxxxxx X. Xxxxxxx
-----------------------------------------
XXXXXX X. XXXXXXX
/s/ Xxxxxx X. Xxxxxx
-----------------------------------------
XXXXXX X. XXXXXX
/s/ Xxxxxx X. Xxxxx
-----------------------------------------
XXXXXX X. XXXXX
/s/ Xxxxx Xxxx
-----------------------------------------
XXXXX XXXX
/s/ Xxxxx X. Xxxx
-----------------------------------------
XXXXX X. XXXX
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EXHIBIT A
STOCKHOLDERS
NUMBER OF SHARES BENEFICIALLY
OWNED INCLUDING SHARES
SUBJECT TO OPTIONS, WARRANTS NUMBER OF SHARES SUBJECT TO
OR OTHER RIGHTS TO ACQUIRE OTHER OPTIONS, WARRANTS OR
NAME AND ADDRESS CAPITAL STOCK OF THE COMPANY RIGHTS TO ACQUIRE CAPITAL
EXERCISABLE WITHIN 60 DAYS STOCK OF THE COMPANY
-------------------------------------------------------------------------------------------------------------
1. Xxxxxx X. Xxxxxxx 1,158,625 1/ 30,000
c/o Micros-to-Mainframes, Inc.
000 Xxxxxxxxx Xxx
Xxxxxx Xxxxxxx, XX 00000
2. Xxxxxx X. Xxxxxx 1,157,500 2/ 30,000
c/o Micros-to-Mainframes, Inc.
000 Xxxxxxxxx Xxx
Xxxxxx Xxxxxxx, XX 00000
3. Xxxxxx X. Xxxxx 81,000 0
00 Xxxxx Xxxxx
Xxxxx Xxxx, XX 00000
4. Xxxxx Xxxx 20,065 10,000
c/o Micros-to-Mainframes, Inc.
000 Xxxxxxxxx Xxx
Xxxxxx Xxxxxxx, XX 00000
5. Xxxxx X. Xxxx 16,055 3/ 0
c/o Micros-to-Mainframes, Inc.
000 Xxxxxxxxx Xxx
Xxxxxx Xxxxxxx, XX 00000
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1/ Includes 1,125 shares held by the wife of Xx. Xxxxxxx. Also includes an
aggregate of 169,139 shares of Common Stock held in trust for Xx. Xxxxxxx'x
three children. Xx. Xxxxxxx disclaims beneficial ownership of all of such
shares.
2/ Includes an aggregate of 164,044 shares held in trust for Xx. Xxxxxx'x
two children. Xx. Xxxxxx disclaims beneficial ownership of all of such shares.
3/ Includes 1,000 shares held by the wife of Xx. Xxxx.
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EXHIBIT 2
AGREEMENT AND PLAN OF MERGER
BY AND AMONG
BTG, INC.
MICROS-TO-MAINFRAMES, INC.
AND
BTG MERGER SUB, INC.
DATED AS OF AUGUST 29, 1997
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TABLE OF CONTENTS
Page
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AGREEMENT AND PLAN OF MERGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
ARTICLE I THE MERGER . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
SECTION 1.1. The Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
SECTION 1.2. Effective Time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
SECTION 1.3. Effect of the Merger. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
SECTION 1.4. Certificate of Incorporation; Bylaws. . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 1.5. Directors and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 1.6. Closing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 1.7. Subsequent Actions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
ARTICLE II CONVERSION OF SECURITIES; EXCHANGE OF CERTIFICATES . . . . . . . . . . . . . . . . . . . 4
SECTION 2.1. Conversion of Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 2.2. Exchange of Certificates and Payment of Cash. . . . . . . . . . . . . . . . . . . . . . 7
SECTION 2.3. Company Options. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
SECTION 2.4. Stock Transfer Books. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
SECTION 2.5. Dissenting Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
SECTION 2.6 Tax Consequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY . . . . . . . . . . . . . . . . . . . . . 13
SECTION 3.1. Organization and Qualification; Subsidiaries. . . . . . . . . . . . . . . . . . . . . . 13
SECTION 3.2. Certificate of Incorporation and Bylaws. . . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION 3.3. Capitalization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
SECTION 3.4. Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SECTION 3.5. No Conflict; Required Filings and Consents. . . . . . . . . . . . . . . . . . . . . . . 16
SECTION 3.6. SEC Filings; Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 3.7. Absence of Certain Changes or Events. . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 3.8. Absence of Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 3.9. Licenses and Permits; Compliance with Laws. . . . . . . . . . . . . . . . . . . . . . . 18
SECTION 3.10. Taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 3.11. Intellectual Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SECTION 3.12. Company Material Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
SECTION 3.13. Employee Benefit Plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 3.14. Properties; Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
SECTION 3.15. Labor Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 3.16. Environmental Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 3.17. Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 3.18. Accounts Receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
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SECTION 3.19. Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 3.20. Undisclosed Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
SECTION 3.21. Real Property. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
SECTION 3.22. Board Approval; Vote Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
SECTION 3.23. Opinion of Financial Advisor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
SECTION 3.24. Brokers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
SECTION 3.25. Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ACQUIROR . . . . . . . . . . . . . . . . . . . . . . . 29
SECTION 4.1. Organization and Qualification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
SECTION 4.2. Organizational Documents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
SECTION 4.3. Capitalization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
SECTION 4.4. Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
SECTION 4.5. No Conflict; Required Filings and Consents. . . . . . . . . . . . . . . . . . . . . . . 30
SECTION 4.6. Absence of Litigation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SECTION 4.7. SEC Filings; Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
SECTION 4.8. Absence of Certain Changes or Events. . . . . . . . . . . . . . . . . . . . . . . . . . 32
SECTION 4.9. Board Approval; Vote Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
SECTION 4.10. Brokers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
SECTION 4.11. Acquiror Material Contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 4.12. Labor Relations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 4.13. Undisclosed Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 4.14. Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
ARTICLE V REPRESENTATIONS AND WARRANTIES OF MERGER SUB . . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 5.1. Organization and Qualification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 5.2. Certificate of Incorporation and Bylaws. . . . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 5.3. Authority. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 5.4. No Conflict; Required Filings and Consents. . . . . . . . . . . . . . . . . . . . . . . 35
SECTION 5.5. Vote Required. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
SECTION 5.6. Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
ARTICLE VI COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
SECTION 6.1. Affirmative Covenants of the Company. . . . . . . . . . . . . . . . . . . . . . . . . . 36
SECTION 6.2. Negative Covenants of the Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
SECTION 6.3. Affirmative Covenants of Acquiror. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
SECTION 6.4. Negative Covenants of Acquiror. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
ARTICLE VII ADDITIONAL AGREEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 7.1. Access and Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 7.2. Confidentiality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 7.3. Registration Statement; Proxy Statement. . . . . . . . . . . . . . . . . . . . . . . . . 40
SECTION 7.4. Stockholder Approval. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
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SECTION 7.5. Further Action; Reasonable Best Efforts. . . . . . . . . . . . . . . . . . . . . . . . . 42
SECTION 7.6. Public Announcements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
SECTION 7.7. Directors' and Officers' Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . 43
SECTION 7.8. HSR Act Matters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
SECTION 7.9. No Solicitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
SECTION 7.10. Affiliate Agreements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
ARTICLE VIII CLOSING CONDITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
SECTION 8.1. Conditions to Obligations of Acquiror, Merger Sub and the Company to Effect the Merger. 45
SECTION 8.2. Additional Conditions to Obligations of Acquiror. . . . . . . . . . . . . . . . . . . . 46
SECTION 8.3. Additional Conditions to Obligations of the Company. . . . . . . . . . . . . . . . . . . 48
ARTICLE IX TERMINATION, AMENDMENT AND WAIVER . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
SECTION 9.1. Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
SECTION 9.2. Effect of Termination. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
SECTION 9.3. Remedies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
SECTION 9.4. Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
SECTION 9.5. Waiver. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
ARTICLE X GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
SECTION 10.1. Nonsurvival of Representations, Warranties and Agreements. . . . . . . . . . . . . . . 51
SECTION 10.2. Notices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
SECTION 10.3. Certain Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
SECTION 10.4. Headings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
SECTION 10.5. Severability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
SECTION 10.6. Entire Agreement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
SECTION 10.7. Specific Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
SECTION 10.8. Assignment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
SECTION 10.9. Third Party Beneficiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
SECTION 10.10. Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
SECTION 10.11. Counterparts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
SECTION 10.12. Fees and Expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
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EXHIBITS
Exhibit A Form of Opinion of Snow Xxxxxx Xxxxxx P.C.
Exhibit B Form of Opinion of Xxxxx & Xxxxxxx L.L.P.
Exhibit C Form of Affiliate Agreement
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Index of Defined Terms
Section
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1993 Company Stock Option Plan . . . . . . . . . . . . . 2.3(a)
1993 Stock Option . . . . . . . . . . . . . . . . . . . . 2.3(a)
1996 Stock Option . . . . . . . . . . . . . . . . . . . . 2.3(b)
1996 Stock Option Plan . . . . . . . . . . . . . . . . . 2.3(b)
Acquiror . . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Acquiror Average Closing Price . . . . . . . . . . . . . 2.1(a)
Acquiror Balance Sheet . . . . . . . . . . . . . . . . . 4.13
Acquiror Common Stock . . . . . . . . . . . . . . . . . . 4.3
Acquiror Material Adverse Effect . . . . . . . . . . . . 4.1
Acquiror Material Contracts . . . . . . . . . . . . . . . 4.11
Acquiror Representatives . . . . . . . . . . . . . . . . 7.1
Acquiror SEC Reports . . . . . . . . . . . . . . . . . . 4.7(a)
Acquiror Subsidiaries . . . . . . . . . . . . . . . . . . 4.1
Acquisition Proposal . . . . . . . . . . . . . . . . . . 7.9(a)
affiliate . . . . . . . . . . . . . . . . . . . . . . . . 10.3(a)
Affiliate Agreements . . . . . . . . . . . . . . . . . . 7.10
Aggregate Share Amount . . . . . . . . . . . . . . . . . 2.1(b)(iv)
Aggregate Share Cap . . . . . . . . . . . . . . . . . . . 2.1(b)(iv)
Agreement . . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
benefit liabilities . . . . . . . . . . . . . . . . . . . 3.13(c)
beneficial owner . . . . . . . . . . . . . . . . . . . . 10.3(b)
Benefit Plans . . . . . . . . . . . . . . . . . . . . . . 3.13(a)
Blue Sky Laws . . . . . . . . . . . . . . . . . . . . . . 10.3(c)
business day . . . . . . . . . . . . . . . . . . . . . . 10.3(d)
Cash Conversion Number . . . . . . . . . . . . . . . . . 2.3(b)
Certificate of Merger . . . . . . . . . . . . . . . . . . 1.2
Certificates . . . . . . . . . . . . . . . . . . . . . . 2.2(b)
Closing . . . . . . . . . . . . . . . . . . . . . . . . . 1.6
Closing Date . . . . . . . . . . . . . . . . . . . . . . 1.6
Code . . . . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Commonly Controlled Entity . . . . . . . . . . . . . . . 3.13(a)
Company . . . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Company Balance Sheet . . . . . . . . . . . . . . . . . . 3.14
Company Common Stock . . . . . . . . . . . . . . . . . . 3.3(a)
Company Material Adverse Effect . . . . . . . . . . . . . 3.1(a)
Company Material Contracts . . . . . . . . . . . . . . . 3.12(a)
Company SEC Reports . . . . . . . . . . . . . . . . . . . 3.6(a)
Company Subsidiary and Company Subsidiaries . . . . . . . 3.1(a)
control, controlled by, under common control with . . . . 10.3(e)
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Determination Date . . . . . . . . . . . . . . . . . . . 2.1(a)
Dissenting Shares . . . . . . . . . . . . . . . . . . . . 2.5
Effective Time . . . . . . . . . . . . . . . . . . . . . 1.2
employee benefit plans . . . . . . . . . . . . . . . . . 3.13(a)
employee pension benefit plan . . . . . . . . . . . . . . 3.13(a)
Encumbrances . . . . . . . . . . . . . . . . . . . . . . 3.3(b)
Environmental Claim . . . . . . . . . . . . . . . . . . . 3.16(d)(i)
Environmental Laws . . . . . . . . . . . . . . . . . . . 3.16(d)(ii)
ERISA . . . . . . . . . . . . . . . . . . . . . . . . . . 3.13(a)
ERISA Plan . . . . . . . . . . . . . . . . . . . . . . . 3.13(a)
excess loss account . . . . . . . . . . . . . . . . . . . 3.10
Exchange Act . . . . . . . . . . . . . . . . . . . . . . 3.5(b)
Exchange Agent . . . . . . . . . . . . . . . . . . . . . 2.2(a)
Exchange Cash Consideration . . . . . . . . . . . . . . . 2.2(a)
Exchange Fund . . . . . . . . . . . . . . . . . . . . . . 2.2(a)
Forward Merger . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Governmental Entity . . . . . . . . . . . . . . . . . . . 3.5(b)
Hazardous Materials . . . . . . . . . . . . . . . . . . . 3.16(d)(iii)
HSR Act . . . . . . . . . . . . . . . . . . . . . . . . . 3.5(b)
Indemnified Party . . . . . . . . . . . . . . . . . . . . 7.7(b)
Intellectual Property . . . . . . . . . . . . . . . . . . 3.11(b)
intercompany transaction . . . . . . . . . . . . . . . . 3.10
Leased Real Property . . . . . . . . . . . . . . . . . . 3.21
Leases . . . . . . . . . . . . . . . . . . . . . . . . . 3.21
Maximum Amount . . . . . . . . . . . . . . . . . . . . . 7.7(a)
Merger . . . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Merger Consideration . . . . . . . . . . . . . . . . . . 2.2(b)
Merger Sub . . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Multiemployer Plan . . . . . . . . . . . . . . . . . . . 3.13(d)
NASD . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5(b)
NASDAQ . . . . . . . . . . . . . . . . . . . . . . . . . 2.1(a)
New York Law . . . . . . . . . . . . . . . . . . . . . . PREAMBLE
Outstanding Company Stock . . . . . . . . . . . . . . . . 2.1(a)
Permits . . . . . . . . . . . . . . . . . . . . . . . . . 3.9
Per Share Amount . . . . . . . . . . . . . . . . . . . . 2.1(a)
person . . . . . . . . . . . . . . . . . . . . . . . . . 10.3(f)
plan of reorganization . . . . . . . . . . . . . . . . . 2.6
Proxy Statement . . . . . . . . . . . . . . . . . . . . . 7.3(a)
qualified . . . . . . . . . . . . . . . . . . . . . . . . 3.13(b)
Registration Statement . . . . . . . . . . . . . . . . . 7.3(a)
Reverse Merger . . . . . . . . . . . . . . . . . . . . . PREAMBLE
SEC . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.6(a)
Securities Act . . . . . . . . . . . . . . . . . . . . . 3.6(a)
Stock Conversion Number . . . . . . . . . . . . . . . . . 2.3(b)
Stockholders' Meeting . . . . . . . . . . . . . . . . . . 7.4
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Subsidiary . . . . . . . . . . . . . . . . . . . . . . . 3.1(b)
Surviving Corporation . . . . . . . . . . . . . . . . . . 1.1
tax, taxable and taxes . . . . . . . . . . . . . . . . . 3.10
Termination Date . . . . . . . . . . . . . . . . . . . . 9.1(h)
Termination Fee . . . . . . . . . . . . . . . . . . . . . 9.3
unfunded current liability . . . . . . . . . . . . . . . 3.13(c)
Voting Agreement . . . . . . . . . . . . . . . . . . . . PREAMBLE
Voting Shareholders . . . . . . . . . . . . . . . . . . . PREAMBLE
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