ACQUISITION SUPPORT AGREEMENT
Exhibit
19
ACQUISITION
SUPPORT AGREEMENT, dated as of February 18, 2011 (this
“Agreement”),
by and among Xxxxxxxxx Acquisition Company, a Delaware corporation (“SAC”), Leeward
Capital, L.P., a California limited partnership (the “Leeward Capital”),
and Leeward Investments, LLC, a California limited liability company and the
general partner of Leeward Capital (“Leeward Investments”
and together with Leeward Capital, the “Leeward
Parties”). Capitalized terms used herein and not otherwise
defined shall have the meanings set forth in Section 5(l) hereof.
A. SAC
is willing, subject to certain conditions, to propose a transaction (the “Acquisition”) to the
board of directors (the “Board”) of SonomaWest
Holdings, Inc., a Delaware corporation (the “Company”), in which
it would acquire all of the outstanding shares of the Company’s common stock,
par value $0.0001 per share (the “Common Stock”), not
owned by SAC or its Affiliates, in exchange for $8.90
in cash for each share of Common Stock (the “Acquisition
Price”). SAC is presently contemplating that the Acquisition
will be structured as a tender offer to acquire all of the outstanding shares of
Common Stock not owned by SAC or its Affiliates in exchange for per share cash
consideration of not less than the Acquisition Price (the “Offer”), followed, if
after the closing of the Offer SAC directly or indirectly owns at least 90% but
less than 100% of the outstanding shares of Common Stock, by a “short-form”
merger of the Company with SAC or one of its Affiliates in which holders of
shares of Common Stock that did not participate in the Offer would receive the
same per share consideration paid in the Offer.
B. As
of the date of this Agreement, the Leeward Parties are the beneficial owners of
93,571 shares of Common Stock (together with any shares of Common Stock acquired
by the Leeward Parties or any of their Affiliates after the execution of this
Agreement, whether upon the exercise of options, conversion of convertible
securities or otherwise, the “Leeward
Shares”).
C. As
a condition to SAC’s willingness to proceed with proposing the Acquisition to
the Board and in consideration of the time and legal and other expenses
necessary to submit the proposal to the Board in good faith and in compliance
with Applicable Law, SAC requires that the Leeward Parties agree, and pursuant
to the terms and conditions of this Agreement the Leeward Parties agree, to
(i) tender in the Offer (and not withdraw) all of the Leeward Shares
(whether acquired prior to or after the execution of this Agreement) if the
Acquisition is effectuated through the Offer, (ii) support, to the extent
provided in this Agreement, any Alternative SAC Acquisition Proposal through
which the Acquisition is effectuated if the Acquisition is not effectuated
through the Offer and (iii) take the other actions described in this
Agreement.
In
consideration of the premises and for other good and valuable consideration
given to each party, the receipt of which is hereby acknowledged, and intending
to be legally bound, the parties agree as follows:
1. Agreements to Propose
Acquisition and to Tender; Support of Alternative SAC Acquisition
Proposal.
(a) Agreement to Propose
Acquisition. Subject to the terms of this Agreement, SAC
agrees that prior to 5:00 p.m. New York City time on the first Business Day
following the date of this Agreement, SAC shall deliver a letter to the Board of
the Company indicating its intent to pursue an Acquisition and describing the
terms of the proposed Acquisition, which shall include per share cash
consideration of not less than the Acquisition Price, and such other terms and
conditions as are not inconsistent with this Agreement. If the
Acquisition is to be effectuated through the Offer, SAC may condition the
consummation of the Offer and the acceptance of the tendered shares of Common
Stock on, along with other customary conditions, the participation of the
holders of a designated minimum percentage of the outstanding shares of Common
Stock not owned by SAC or any of its Affiliates.
(b) Agreement to Tender and not
Withdraw. If the Acquisition is effectuated through the Offer,
subject to the terms of this Agreement, the Leeward Parties agree that as
promptly as practicable after the commencement of the Offer, and in any event no
later than the tenth Business Day following the commencement of the Offer, the
Leeward Parties shall tender into the Offer all of the Leeward Shares in
accordance with the terms of the definitive Offer documents, free and clear of
all Liens. If the Leeward Parties acquire any Leeward Shares after
making such tender (or any subsequent tender), the Leeward Parties shall tender
into the Offer such Leeward Shares on the date that the Leeward Parties acquire
such Leeward Shares. The Leeward Parties agree that once Leeward
Shares are tendered into the Offer, the Leeward Parties shall not withdraw the
tender of such Leeward Shares unless the Offer shall have been terminated or
shall have expired without any shares of Common Stock having been accepted for
payment, in each case, in accordance with the terms of the definitive Offer
documents.
(c) Support of Alternative SAC
Acquisition Proposal. To the extent that the Acquisition is
not effectuated through the Offer but through an Alternative SAC Acquisition
Proposal, the Leeward Parties agree to vote or provide a written consent in
respect of all of the Leeward Shares in connection with any meeting of the
stockholders of the Company (and at every adjournment or postponement thereof)
duly called and sought for the purpose of approving any Alternative SAC
Acquisition Proposal, or any action by written consent in lieu of a meeting of
stockholders of the Company duly requested in respect of any Alternative SAC
Acquisition Proposal, in favor of the adoption of all applicable SAC Acquisition
Agreements, the approval of the Alternative SAC Acquisition Proposal and the
other transactions contemplated by the SAC Acquisition Agreements and the
approval of any other matter that is required to be approved by the stockholders
of the Company in order to effect the transactions contemplated by the SAC
Acquisition Agreements. To the extent that the Acquisition is not
effectuated through the Offer, the Leeward Parties agree to vote or provide a
written consent in respect of all of the Leeward Shares in connection with any
meeting of the stockholders of the Company (and at every adjournment or
postponement thereof) duly called and sought for the purpose of approving any of
the matters described in the following clauses (i) through (iii), or any action
by written consent in lieu of a meeting of stockholders of the Company duly
requested in respect of any of the matters described in the following clauses
(i) through (iii), against (i) any proposal seeking approval of any agreement or
arrangement constituting or related to any Third Party Acquisition Proposal,
(ii) any proposal seeking approval of any liquidation, dissolution,
recapitalization, extraordinary dividend or other significant corporate
reorganization of the Company except in furtherance of an Alternative SAC
Acquisition Proposal and (iii) any proposal seeking approval of any other
action, proposal or agreement that would (A) result in any of the conditions to
the Offer not being fulfilled or satisfied or (B) reasonably be expected to
interfere with or delay the consummation of the Offer or any Alternative SAC
Acquisition Proposal or the other transactions contemplated by any related SAC
Acquisition Agreement. The Leeward Parties shall execute any
documents which are necessary or appropriate in order to effectuate the
foregoing. The Leeward Parties shall retain at all times the right to
vote the Leeward Shares in their sole discretion and without any other
limitation on those matters other than those set forth in this Section 1(c) that
are at any time or from time to time presented for consideration to the
Company’s stockholders generally. In the event that any meeting of
the stockholders of the Company is held and if the Acquisition is not
effectuated through the Offer, the Leeward Parties shall appear at such meeting
or otherwise cause the Leeward Shares to be counted as present thereat for
purposes of establishing a quorum.
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(d) Grant of
Proxy. In furtherance of the foregoing, the Leeward Parties
hereby irrevocably grant to, and appoint, until the termination of this
Agreement, SAC and any person or persons designated in writing by SAC, and each
of them individually, as the Leeward Parties’ proxy and attorney-in-fact (with
full power of substitution), for and in the name, place and stead of the Leeward
Parties, to vote all of the Leeward Shares, or grant a written consent in
respect of the Leeward Shares, or execute and deliver a proxy to vote or grant a
written consent in respect of the Leeward Shares, on the matters and in the
manner specified in Section 1(c) of this Agreement (but not on any other
matters, other than motions to adjourn and other matters incident to the conduct
of any meeting of stockholders that are in furtherance of the actions specified
in Section 1(c)). The Leeward Parties hereby further affirm that the
irrevocable proxy granted in this Section 1(d) is coupled with an interest and
may under no circumstances be revoked. Such irrevocable proxy is
executed and intended to be irrevocable in accordance with the provisions of
Section 212 of the Delaware General Corporation Law until the termination of
this Agreement in accordance with its terms.
(e) No Obligation to Pursue or
Effectuate an Acquisition. The Leeward Parties expressly
acknowledge and agree that except for the obligation to propose an Acquisition
to the Board under Section 1(a), none of SAC or any of its Affiliates is
under any obligation to pursue or effectuate an Acquisition, including the Offer
or any Alternative SAC Acquisition Proposal, or to enter into any SAC
Acquisition Agreement, and that this Agreement does not give rise to any such
obligation.
2. Representations and
Warranties of the Leeward Parties. The Leeward Parties hereby
jointly and severally represent and warrant to SAC as follows:
(a) Power; Due Authorization;
Binding Agreement. The Leeward Parties have full legal
capacity, power and authority to execute and deliver this Agreement, to perform
their obligations under this Agreement, and to consummate the transactions
contemplated by this Agreement. This Agreement has been duly and
validly executed and delivered by the Leeward Parties and, except for withdrawal
rights that may be required by U.S. federal securities laws, constitutes a valid
and binding agreement of the Leeward Parties, enforceable against the Leeward
Parties in accordance with its terms.
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(b) Ownership of Leeward
Shares. On the date of this Agreement, the Leeward Shares are
owned beneficially by the Leeward Parties and include all of the Leeward Shares
owned beneficially by the Leeward Parties or any of their Affiliates, free and
clear of any Liens that would prevent the Leeward Parties from tendering its
shares in accordance with this Agreement or complying with its other obligations
under this Agreement. Subject to the provisions of Section 1(d)
hereof, as of the date of this Agreement, the Leeward Parties have, and, if the
Acquisition is effectuated through the Offer, as of immediately prior to the
expiration of the Offer, the Leeward Parties will have sole dispositive power
with respect to the Leeward Shares and will be entitled to dispose of the
Leeward Shares. Subject to the provisions of Section 1(d) hereof, as
of the date of this Agreement, the Leeward Parties have, and, if the Acquisition
is not effectuated through the Offer, as of the record date for, and as of
immediately prior to the start of, any meeting of the stockholders of the
Company (and at every adjournment or postponement thereof) duly called and
sought for the purpose of approving an Alternative SAC Acquisition Proposal, the
Leeward Parties will have sole voting power with respect to the Leeward Shares
and will be able to vote the Leeward Shares in favor of such Alternative SAC
Acquisition Proposal.
(c) No
Conflicts. The execution and delivery of this Agreement by the
Leeward Parties does not, and the performance of the terms of this Agreement by
the Leeward Parties will not, (i) require the Leeward Parties to obtain the
consent or approval of, or make any filing with or notification to, any
Governmental Authority (other than any required filing under the U.S. federal
securities laws), (ii) require the consent or approval of any other Person
pursuant to any agreement, obligation or instrument binding on the Leeward
Parties or its properties and assets, (iii) except for withdrawal rights
that may be required by the U.S. federal securities laws, conflict with or
violate any law, rule, regulation, order, judgment or decree applicable to the
Leeward Parties or pursuant to which any of its properties or assets are bound
or (iv) violate any other agreement to which the Leeward Parties are a
party, including any voting agreement, stockholders agreement, proxy or voting
trust. The Leeward Shares are not, with respect to the voting or
transfer of such Leeward Shares, subject to any other agreement, including any
voting agreement, stockholders agreement, proxy or voting trust.
(d) Acknowledgment. The
Leeward Parties understand and acknowledge that SAC is proposing the Acquisition
in reliance upon, and that if SAC subsequently commences the Offer or pursues an
Alternative SAC Acquisition Proposal, it will do so in reliance upon, the
Leeward Parties’ execution, delivery and performance of this
Agreement.
3. Representations and
Warranties of SAC. SAC hereby represents and warrants to the
Leeward Parties as follows:
(a) Power; Due Authorization;
Binding Agreement. SAC is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of
organization. SAC has full corporate power and authority to execute
and deliver this Agreement, and, subject to fulfillment of the conditions set
forth in this Agreement, to perform its obligations under this Agreement, and to
consummate the transactions contemplated by this Agreement. This
Agreement has been duly and validly executed and delivered by SAC and
constitutes a valid and binding agreement of SAC.
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(b) Ownership of Common
Stock. On the date of this Agreement, SAC and its Affiliates
beneficially own 602,353 shares of the Common Stock (excluding the Leeward
Shares).
(c) No
Conflicts. The execution and delivery of this Agreement by SAC
does not, and the performance of the terms of this Agreement by SAC will not,
(i) require SAC to obtain the consent or approval of, or make any filing
with or notification to, any Governmental Authority (other than any required
filing under the U.S. federal securities laws), (ii) require the consent or
approval of any other Person pursuant to any agreement, obligation or instrument
binding on SAC or its properties and assets, (iii) except as may otherwise
be required by the U.S. federal securities laws, conflict with or violate any
law, rule, regulation, order, judgment or decree applicable to SAC or pursuant
to which any of its assets are bound or (iv) violate any other agreement to
which SAC is a party.
(d) Acknowledgment. SAC
understands and acknowledges that the Leeward Parties are entering into this
Agreement in reliance upon SAC’s execution, delivery and performance of this
Agreement.
4. Certain
Covenants.
(a) Restriction on
Transfer. From the date of this Agreement and until the
termination of this Agreement in accordance with its terms, except any action
contemplated by Section 1, the Leeward Parties shall not, directly or
indirectly (i) sell, transfer, pledge, encumber, assign or otherwise
dispose of, or enter into any contract, option or other arrangement or
understanding with respect to the sale, transfer, pledge, encumbrance,
assignment or other disposition of, or limitation on the voting rights of, any
of the Leeward Shares (any such action, a “Transfer”); provided that nothing
in this Agreement shall prohibit the exercise by the Leeward Parties of any
options to purchase Leeward Shares, or (ii), (A) grant any proxies or
powers of attorney, deposit any Leeward Shares into a voting trust or enter into
a voting agreement with respect to any Leeward Shares or (B) commit or
agree to take any of the foregoing actions.
(b) Restriction on Certain
Actions. From the date of this Agreement and until the
termination of this Agreement in accordance with its terms, no party shall,
directly or indirectly, (i) take any action that would cause any
representation or warranty of such party contained in this Agreement to become
untrue or incorrect or have the effect of preventing or disabling such party
from performing its obligations under this Agreement or (ii) commit or
agree to take any of the foregoing actions.
(c) Additional Leeward
Shares. The Leeward Parties hereby agree, during the term of
this Agreement, to promptly notify SAC of any new Leeward Shares acquired by the
Leeward Parties or any of their Affiliates, if any, after the execution of this
Agreement. Any such shares shall be subject to the terms of this
Agreement as though owned by the Leeward Parties on the date of this
Agreement.
(d) Dissenter’s
Rights. The Leeward Parties agree not to exercise, nor to
cause the exercise of, any dissenter’s or appraisal right in respect of the
Leeward Shares which may arise in connection with any Alternative SAC
Acquisition Proposal.
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(e) Disclosure
Documents. SAC, on the one hand, and the Leeward Parties, on
the other hand, shall (i) consult with each other prior to issuing any press
releases or otherwise making public announcements with respect to this Agreement
or referring to the other party and prior to making any filings with any third
party and/or any Governmental Authority with respect to this Agreement or
referring to the other party (it being understood and agreed that (A) the
foregoing shall also apply to such portions of non-public communications that
are required to be subsequently filed with, or referred to in, any such filing
with a third party or a Governmental Authority, and (B) once the parties
have agreed upon and used a description of this Agreement in any such disclosure
document, the parties need not consult with each other prior to using the same
description in subsequent disclosure documents) and (ii) provide to the other
party any information reasonably related to the foregoing that the other party
may reasonably require for the preparation of any such disclosure documents, in
each case except as prohibited by Applicable Law. Each party is
responsible for the material accuracy of the information regarding such party in
any such disclosure document and agrees to notify the other party as promptly as
practicable of any required corrections with respect to any written information
supplied by it specifically for use in any such disclosure document, if and to
the extent such party becomes aware that any such information shall have become
false or misleading in any material respect.
(f) Further
Assurances. From time to time, at the request of SAC and
without further consideration, the Leeward Parties shall execute and deliver
such additional documents and take all such further action as may be necessary
or desirable to consummate and make effective the transactions contemplated by
this Agreement.
(g) Voting of Shares by SAC and
Its Affiliates. If any proposal is submitted to the
stockholders of the Company for their vote or consent and the Leeward Parties
have an obligation to vote or consent either for or against such proposal in
accordance with Section 1(c), SAC shall, and shall cause its Affiliates to,
similarly vote or consent for or against (as the case may be) such proposal all
shares of Common Stock beneficially owned by them and entitled to vote or
consent with respect to such proposal.
5. Miscellaneous.
(a) Termination of this
Agreement.
(i) This
Agreement shall terminate on May 31, 2011 if the Offer has not been
commenced or if no SAC Acquisition Agreements have been entered into by 5:00
p.m., New York City time, on such date. If the Offer has been
commenced or if a SAC Acquisition Agreement has been entered into prior to 5:00
p.m., New York City time, on May 31, 2011, this Agreement shall terminate
on September 30, 2011; provided, however, that if at
September 30, 2011 SAC or the Company is diligently responding to comments
received from the Staff of the Securities and Exchange Commission (the “SEC”) relating to the
Offer or an Alternative SAC Acquisition Proposal, this Agreement shall terminate
on the earlier of (A) the fortieth Business Day after SAC or the Company shall
have made a filing with the SEC definitively responding to all such comments and
(B) December 31, 2011.
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(ii) In
addition to, and without limiting, Section 5(a)(i), this Agreement may be
terminated (A) by the mutual written consent of SAC and the Leeward Parties; (B)
by SAC if there has been a breach in any material respect of any representation,
warranty, covenant or agreement made by the Leeward Parties; (C) by the
Leeward Parties if there has been a breach in any material respect of any
representation, warranty, covenant or agreement made by SAC; (D) by either SAC,
on the one hand, or the Leeward Parties, on the other hand, if the Offer has
been commenced and is subsequently terminated or expires without any shares of
Common Stock having been accepted for payment, and SAC has confirmed to the
Leeward Parties in writing that SAC does not intend to pursue the Acquisition
through an Alternative SAC Acquisition Proposal; or (E) by either SAC, on the
one hand, or the Leeward Parties, on the other hand, if an SAC Acquisition
Agreement previously entered into by SAC or one or more of its Affiliates is
terminated in accordance with its terms.
(b) Effect of
Termination. In the event of termination of this Agreement
pursuant to Section 5(a), this Agreement shall become void and of no effect
with no liability on the part of any party; provided, however, no such
termination shall relieve any party from any liability for any breach of this
Agreement occurring prior to such termination.
(c) Entire Agreement;
Amendments. This Agreement constitutes the entire agreement
among the parties with respect to the subject matter of this Agreement and
supersedes all other prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter of this
Agreement. Nothing in this Agreement, express or implied, is intended
to or shall confer upon any other person any right, benefit or remedy of any
nature whatsoever under or by reason of this Agreement. This
Agreement may not be modified, amended, altered or supplemented, except upon the
execution and delivery of a written agreement executed by each of the parties to
this Agreement.
(d) Notices. All
notices, requests and other communications to any party shall be in writing and
shall be deemed given if delivered personally, facsimiled (which is confirmed)
or sent by overnight courier (providing proof of delivery) to the parties at the
following addresses:
If to
SAC, to:
Xxxxxxxxx
Acquisition Company
000 Xxxx
Xxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
Attention: Xxxxx
X. Xxxxxxxxx
Facsimile: (000)
000-0000
with a
copy (which shall not constitute notice) to:
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Xxxxx
Xxxxxx & Xxxxxx LLP
0000
Xxxxxxxxxxx Xxxxxx, Xxxxx 000
Xxxxxx,
Xxxxxxxx 00000
Attention: Xxxxxx
X. Xxxxxx, Esq.
Facsimile: (000)
000-0000
If to the
Leeward Parties, to:
Leeward
Investments, LLC
0000 Xxx
Xxxxxxx Xxxxx Xxxx, Xxxxx 000
Xxxxxxxxx,
Xxxxxxxxxx 00000
Attention: Xxxx
X. Xxxxxx
Facsimile: (000)
000-0000
with a
copy (which shall not constitute notice) to:
DLA Piper
LLP (US)
0000
Xxxxxxxxxx Xxxxxx
Xxxx Xxxx
Xxxx, Xxxxxxxxxx 00000
Attention: Xxxxx
Xxxxxx, Esq.
Facsimile: (000)
000-0000
or such
other address or facsimile number as such party may hereafter specify by like
notice to the other parties. All such notices, requests and other
communications shall be deemed received on the date of receipt by the recipient
if received prior to 5:00 p.m., New York City time, 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.
(e) Governing
Law. This agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, regardless of the Applicable
Law that might otherwise govern under applicable principles of conflicts of
laws.
(f) Expenses. All
expenses incurred by SAC in connection with or related to the authorization,
preparation or execution of this Agreement and the consummation of the
transactions contemplated hereby, shall be borne solely and entirely by SAC, and
all such expenses incurred by the Leeward Parties shall be borne solely and
entirely by the Leeward Parties.
(g) Jurisdiction. All
actions and proceedings arising out of or relating to this Agreement shall be
heard and determined in the Chancery Court of the State of Delaware or, in the
event that such court does not have subject matter jurisdiction over such action
or proceeding, any federal court sitting in the State of Delaware, and the
parties to this Agreement 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. Each of the parties to this Agreement consents to service
being made through the notice procedures set forth in Section 5(d) and
agrees that service of any process, summons, notice or document by registered
mail (return receipt requested and first-class postage prepaid) to the
respective addresses set forth in Section 5(d) shall be effective service
of process for any suit or proceeding in connection with this Agreement or the
transactions contemplated by this Agreement.
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(h) Specific
Performance. The parties agree that irreparable damage may
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. Accordingly, the parties agree that, if for any reason a
party to this Agreement shall have failed to perform its obligations under this
Agreement, then the party seeking to enforce this Agreement against such
nonperforming party under this Agreement shall be entitled to specific
performance and injunctive and other equitable relief, and the parties further
agree to waive any requirement for the securing or posting of any bond in
connection with the obtaining of any such injunctive or other equitable relief,
this being in addition to any other remedy to which they are entitled at law or
in equity.
(i) WAIVER OF
JURY TRIAL. EACH OF THE PARTIES TO
THIS AGREEMENT IRREVOCABLY WAIVES ANY AND ALL RIGHTS TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS
AGREEMENT.
(j) No
Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned, in whole or in
part, by any of the parties without the prior written consent of the other
parties; provided that SAC may
assign any of or all of its rights, interests and obligations under this
Agreement to one or more Affiliates of SAC who agree to be bound by the terms of
this Agreement. Subject to the preceding sentence, this Agreement
shall be binding upon, inure to the benefit of, and be enforceable by, the
parties and their respective successors and permitted assigns. Any
purported assignment not permitted under this Section 5(j) shall be null
and void.
(k) Counterparts. This
Agreement may be executed in counterparts (including by facsimile or other
electronic means) (each of which shall be deemed to be an original but all of
which taken together shall constitute 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. Copies of executed
counterparts transmitted by facsimile, electronic mail or other electronic
transmission shall be considered original executed counterparts for purposes of
this Section 5(k).
(l) Definitions. For
purposes of this Agreement, the term:
(i) “Affiliate” means,
with respect to any Person, a Person that directly or indirectly controls, is
controlled by or is under common control with such Person, with control in such
context meaning the possession, directly or indirectly, of the power to direct
or cause the direction of management or policies of a Person, whether through
the ownership of securities or partnership or other ownership interests, by
contract or otherwise; provided, however, that the
limited partners and portfolio investees of the Leeward Parties shall not be
considered “Affiliates” of the Leeward Parties for purposes of this
Agreement.
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(ii) “Alternative SAC Acquisition
Proposal” means any proposed (A) merger of SAC or one of its Affiliates
with the Company or (B) other business combination or similar transaction
involving the direct or indirect acquisition by SAC or one or more of its
Affiliates of all of the Equity Interest in the Company, in each case (x) in
exchange for per share cash consideration of not less than the Acquisition Price
and (y) other than a “short-form” merger of the Company with SAC or one of its
Affiliates following the closing of the Offer.
(iii) “Applicable Law” means
any law, rule, regulation, directive, ordinance, code, governmental
determination, guideline, order, treaty, convention, governmental certification
requirement or other legally enforceable requirement of any Governmental
Authority.
(iv) “Business Day” means
any day other than a Saturday, a Sunday, or a day on which banks are closed for
business in New York, New York.
(v) “Equity Interest”
means any share, capital stock or similar interest in the Company, and any
option, warrant, right or security (including debt securities) convertible,
exchangeable or exercisable thereto or therefor.
(vi) “Governmental
Authority” means any national government or the government of any state
or other political subdivision, and departments, courts, commissions, boards,
bureaus, ministries, agencies or other instrumentalities of any of
them.
(vii) “Liens” means,
collectively, all liens, claims, interests, limitations or other
restrictions.
(viii) “Person” means any
individual, corporation, partnership, limited liability company, trust, estate,
Governmental Authority or any other entity.
(ix) “SAC Acquisition
Agreement(s)” means any definitive agreement setting forth the terms and
conditions of an Alternative SAC Acquisition Proposal.
(x) “Third Party Acquisition
Proposal” means any offer or proposal (whether in writing or otherwise)
concerning any (A) merger, consolidation, other business combination or similar
transaction involving the Company, (B) sale, lease or other disposition directly
or indirectly by merger, consolidation, business combination, share exchange,
joint venture or otherwise, of assets of the Company representing 15% or more of
the consolidated assets, revenues or net income of the Company, (C) issuance or
sale or other disposition (including by way of merger, consolidation, business
combination, share exchange, joint venture or similar transaction) by any Person
of Equity Interests representing 15% or more of the voting power of the Company,
(D) transaction in which any Person will acquire beneficial ownership or the
right to acquire beneficial ownership or any group has been formed which
beneficially owns or has the right to acquire beneficial ownership of, Equity
Interests representing 15% or more of the voting power of the Company or (E) any
combination of the foregoing (in each case, other than the Offer and any
Alternative SAC Acquisition Proposal).
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(m) Interpretation. The
headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this
Agreement. Whenever the words “include,” “includes” or “including” are used
in this Agreement, they shall be deemed to be followed by the words “without limitation.”
All terms defined in this Agreement shall have the defined meanings when used in
any document made or delivered pursuant to this Agreement unless otherwise
defined therein. The definitions contained in this Agreement are
applicable to the singular as well as the plural forms of such terms and to the
masculine as well as to the feminine and neuter genders of such
term. Any statute defined or referred to in this Agreement or in any
agreement or instrument that is referred to in this Agreement means such statute
as from time to time amended, modified or supplemented, including by succession
of comparable successor statutes and references to all attachments thereto and
instruments incorporated therein. References to a Person are also to
its permitted successors and assigns. References in this Agreement to
“owns”, “ownership” and similar terms, used in connection with a party’s
ownership of securities of the Company, include beneficial
ownership. The parties have participated jointly in the negotiation
and drafting of this Agreement and, in the event an ambiguity or question of
intent or interpretation arises, this Agreement shall be construed as jointly
drafted by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.
(n) 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 Applicable 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 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
in an acceptable manner to the end that the transactions contemplated by this
Agreement are fulfilled to the extent possible.
[SIGNATURE
PAGE FOLLOWS]
11
The
parties have caused this Agreement to be duly executed as of the day and year
first above written.
XXXXXXXXX
ACQUISITION COMPANY
|
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By:
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/s/
Xxxxx X. Xxxxxxxxx
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Name:
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Xxxxx
X. Xxxxxxxxx
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Title:
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President
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LEEWARD
CAPITAL, L.P.
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By: |
Leeward
Investments, LLC
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General
Partner
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By:
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/s/
Xxxx X. Xxxxxx
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Name:
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Xxxx
X. Xxxxxx
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Title:
|
Manager
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LEEWARD
INVESTMENTS, LLC
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By:
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/s/
Xxxx X. Xxxxxx
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Name:
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Xxxx
X. Xxxxxx
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Title:
|
Manager
|