FORM OF VOTING AGREEMENT
Exhibit
99.2
FORM OF VOTING
AGREEMENT
VOTING
AGREEMENT, dated as of February 1, 2011
(this “Agreement”), by and
among Time Warner Cable Inc., a Delaware corporation (“Parent”), and certain
stockholders of NaviSite, Inc., a Delaware corporation (the “Company”), whose
names are set forth on the signature pages to this Agreement (each a “Stockholder” and,
collectively, the “Stockholders”).
RECITALS
(a) Concurrently
with the execution and delivery of this Agreement, Parent, Avatar Merger Sub
Inc., a Delaware corporation and wholly-owned subsidiary of Parent (“Merger Sub”), and the
Company are entering into an Agreement and Plan of Merger (as the same may be
amended or modified from time to time in accordance with its terms, the “Merger Agreement”),
pursuant to which, among other things, Merger Sub shall be merged with and into
the Company (the “Merger”), with the
Company surviving the Merger and becoming a wholly-owned subsidiary of
Parent.
(b) As
a condition and inducement to entering into the Merger Agreement, Parent has
requested that the Stockholders agree, and the Stockholders have agreed, on the
terms and conditions contained herein, to enter into this Agreement which sets
forth the agreements of Parent and, for so long as the Merger Agreement has not
been terminated in accordance with its terms, the Stockholders with respect to,
among other things, the voting of shares of common stock, par value $0.01 per
share, of the Company (“Common Shares”) and shares of Series A Convertible
Preferred Stock, par value $0.01 per share, of the Company (“Preferred Shares”
and, collectively with Common Shares, “Company Shares”) owned by the
Stockholders in connection with the Merger.
Accordingly,
in consideration of the mutual representations, warranties, covenants and
agreements contained in this Agreement, the parties to this Agreement, intending
to be legally bound, agree as follows:
ARTICLE
I
DEFINITIONS
1.1 General. Capitalized
terms used but not defined in this Agreement have the meanings ascribed to them
in the Merger Agreement.
1.2 Certain Defined
Terms. For purposes of this Agreement, the following
capitalized terms shall have the following meanings:
“Covered Shares”
means, with respect to any Stockholder, any Company Shares that such Stockholder
beneficially owns, holds of record or otherwise has the right to vote, directly
or indirectly, together with any Company Shares or other voting securities of
the Company acquired by such Stockholder after the date of this Agreement,
including by way of (a) a stock dividend or distribution, split-up,
recapitalization, combination, exchange of shares or similar transaction, (b)
the exercise of any Company Stock Options or (c) the conversion of any Preferred
Shares into Common Shares.
“Meeting” means any
meeting of the stockholders of the Company, whether annual or special, and
including any adjourned or postponed meeting.
“Vote” means
(a) voting in person or by proxy in favor of or against any action,
approval or agreement, (b) consenting to or withholding consent from any
action, approval or agreement (whether or not such consent is in writing) and
(c) taking any similar action in favor of or against any action, approval
or agreement; and “Voting” shall have
the correlative meaning.
1.3 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. Terms defined in the singular shall have a comparable
meaning when used in the plural and vice versa, and wherever the word “include,”
“includes” or “including” is used in this Agreement, it shall be deemed to be
followed by the words “without limitation.” References herein to any
Law shall be deemed to refer to such Law as amended, modified, codified,
reenacted, supplemented or superseded in whole or in part and in effect from
time to time, and also to all rules and regulations promulgated
thereunder.
ARTICLE
II
VOTING
2.1 Agreement to
Vote. Each Stockholder agrees that it shall appear at any
Meeting (or otherwise cause its Covered Shares to be counted as present thereat)
for purposes of establishing a quorum and, if requested by Parent to cause its
Covered Shares to be included in any written consent of stockholders of the
Company being sought by the Company. In connection with any such
Meeting or written consent, as applicable, each Stockholder further agrees that
it shall, and shall cause the record holder of any of its Covered Shares to,
Vote all of its Covered Shares:
(a) in
favor of adoption of the Merger Agreement and any other action or approval
required in furtherance of the Merger;
(b) against
any action, approval or agreement that would compete with, impede, interfere
with, adversely affect, tend to discourage or inhibit the adoption of the Merger
Agreement or the timely consummation of the transactions contemplated by the
Merger Agreement;
(c) against
any action, approval or agreement that would result in any breach of a
representation, warranty, covenant or agreement of the Company under the Merger
Agreement;
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(d) against
any amendment of the Company’s certificate of incorporation or by-laws that is
not requested or expressly approved by Parent; and
(e) against
any dissolution, liquidation or winding up of the Company;
provided, that if, in
response to a Superior Proposal received by the Company Board after the date of
this Agreement, the Company Board validly makes a Company Adverse Recommendation
Change in accordance with Section 6.4(d)(I) of the Merger Agreement, the number
of each Stockholder’s Covered Shares that are subject to this Section 2.1 shall
be reduced (on a pro
rata basis with each other stockholder of the Company who executed a
similar voting agreement in connection with the Merger and the transactions
contemplated by the Merger Agreement (the “Other Voting
Agreements”)) to the extent necessary in order that the aggregate number
of Covered Shares subject to (and required to be Voted in accordance with) this
Section 2.1, together with all other Company Shares subject to (and required to
be Voted in accordance with) the Other Voting Agreements, represents no more
than 32% of the Company Shares (and any other voting securities of the Company)
outstanding at the time of such Vote and entitled to so Vote.
2.2 Opposing
Proposals. Each Stockholder shall not, and shall not permit
any Person under Stockholder’s control to, (a) solicit proxies or become a
“participant” in a “solicitation” (as such terms are defined in Rule 14a-1 under
the Exchange Act) with respect to an Opposing Proposal (as defined below), (b)
initiate a stockholders’ vote with respect to an Opposing Proposal or (c) except
by virtue of this Agreement, become a member of a “group” (as such term is used
in Section 13(d) of the Exchange Act) with respect to any voting securities of
the Company with respect to an Opposing Proposal. For purposes of
this Agreement, the term “Opposing Proposal”
means any of the actions or proposals described in clauses (b) through (e) of
Section 2.1 of this Agreement, along with any proposal or action which would, or
could reasonably be expected to, compete with, impede, interfere with, adversely
affect, tend to discourage or inhibit the adoption of the Merger Agreement or
the timely consummation of the transactions contemplated by the Merger
Agreement.
2.3 No Ownership
Interest. Except as expressly provided in this Agreement,
nothing contained in this Agreement shall be deemed to vest in Parent any direct
or indirect ownership or incidence of ownership of, or with respect to, any
Covered Shares. All rights, ownership and economic benefits of and
relating to the Covered Shares shall remain vested in and belong to the
Stockholders. Except as otherwise provided in this Agreement, Parent
shall not have any power or authority to direct any Stockholder in (a) the
Voting of any of such Stockholder’s Covered Shares or (b) the performance of
such Stockholder’s duties or responsibilities as a stockholder of the
Company.
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ARTICLE
III
REPRESENTATIONS
AND WARRANTIES
Each
Stockholder, severally and not jointly, represents and warrants to Parent as
follows:
3.1 Power and
Authorization. Such Stockholder has the requisite power and
authority to execute and deliver this Agreement, to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The
execution, delivery and performance by such Stockholder of this Agreement and
the consummation by such Stockholder of the transactions contemplated hereby are
within such Stockholder’s power and authority and have been duly and validly
authorized by all necessary action on the part of such Stockholder.
3.2 Enforceability. This
Agreement has been duly executed and delivered by such Stockholder and
constitutes a legal, valid and binding agreement of such Stockholder,
enforceable against such Stockholder in accordance with its terms.
3.3 Governmental
Authorizations. The execution, delivery and performance of
this Agreement by such Stockholder and the consummation by such Stockholder of
the transactions contemplated by this Agreement do not and will not require any
consent, approval or other authorization of, or filing with or notification to,
any Governmental Entity, other than compliance with the applicable requirements,
if any, of the Exchange Act.
3.4 Non-Contravention. The
execution, delivery and performance of this Agreement by such Stockholder and
the consummation by such Stockholder of the transactions contemplated by this
Agreement do not and will not:
(a) contravene
or conflict with, or result in any violation or breach of, any provisions of the
organizational documents of such Stockholder (to the extent that such
Stockholder is a business entity);
(b) contravene
or conflict with, or result in any violation or breach of, any Laws applicable
to such Stockholder or any of its Covered Shares;
(c) require
any consent, approval or other authorization of, or any filing with or
notification to, any Person under any Contract to which such Stockholder is a
party or by which it or any of its Covered Shares may be bound;
(d) give
rise to a right of termination, cancellation, amendment, modification or
acceleration of any rights or obligations under any Contract to which such
Stockholder is a party or by which it or any of its Covered Shares may be bound;
or
(e) cause
the creation or imposition of any Encumbrances on any of its Covered Shares,
other than as contemplated by this Agreement.
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3.5 Ownership. As
of the date of this Agreement, such Stockholder is the sole Beneficial Owner and
record holder of the number of Company Shares and Company Stock Options set
forth opposite such Stockholder’s name on Schedule A, which constitute all
of the Company Shares and Company Stock Options beneficially owned and/or held
of record by such Stockholder. Such Stockholder owns no other rights
or interests convertible or exchangeable into or exercisable for any securities
of the Company. As used in this Agreement, “Beneficial Owner”
means, with respect to any security, any Person who owns, directly or
indirectly, through any Contract, arrangement, understanding, relationship or
otherwise, has or shares (a) voting power which includes the power to vote, or
to direct the voting of, such security, and/or (b) investment power which
includes the power to dispose, or to direct the disposition, of such security;
and such term shall otherwise be interpreted consistently with the correlative
term “beneficial ownership” as defined in Rule 13d-3 adopted by the SEC under
the Exchange Act.
3.6 Voting. Such
Stockholder has the sole power to Vote or direct the Vote of, dispose of and
issue instructions with respect to its Covered Shares, and the sole power to
agree to all of the matters set forth in this Agreement, with no limitations,
qualifications or restrictions on such powers, subject to applicable United
States federal securities Laws and this Agreement. Such Stockholder:
(a) is not a party to any Contract (including any voting agreement) with respect
to any of its Covered Shares; (b) has not deposited any of its Covered Shares
into any voting trust; and (c) has not granted any proxy or power of attorney
with respect to any of its Covered Shares, in each case inconsistent with such
Stockholder’s obligations under this Agreement.
3.7 Title. Such
Stockholder has, and on the Closing Date will have, good and marketable title to
all of its Covered Shares, in each case free and clear of any Encumbrances other
than as contemplated by this Agreement.
3.8 Brokers and
Finders. No broker, finder or investment banker is entitled to
any brokerage, finder’s or other fee or commission in connection with the Merger
or the other transactions contemplated by the Merger Agreement based upon
arrangements made by or on behalf of such Stockholder.
ARTICLE
IV
OTHER
COVENANTS
4.1 No Inconsistent
Agreements. Each Stockholder covenants and agrees that such
Stockholder shall not: (a) enter into any Contract (including any voting
agreement) with respect to any of its Covered Shares; (b) deposit any of
its Covered Shares into any voting trust; or (c) grant any proxy or power of
attorney with respect to any of its Covered Shares, in each case inconsistent
with such Stockholder’s obligations under this Agreement.
4.2 No
Transfers. Each Stockholder agrees that it shall not directly
or indirectly: (a) sell, assign, give, tender, offer, exchange or otherwise
transfer any of its Covered Shares; (b) encumber, pledge, hypothecate or
otherwise permit (including by omission) the creation or imposition of any
Encumbrance on any of its Covered Shares; or (c) enter into any
Contract with respect to any of the foregoing, in each case without the prior
written consent of Parent.
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4.3 No Registrations of
Transfers. Each Stockholder (a) agrees that it shall not
request that the Company or its transfer agent register the transfer (book-entry
or otherwise) of any certificate or uncertificated interest representing any of
such Stockholder’s Covered Shares and (b) consents to the entry of stop
transfer instructions by the Company of any transfer of such Stockholder’s
Covered Shares, unless such transfer is made in compliance with
Section 4.2.
4.4 No
Solicitation. Each Stockholder agrees that it shall not, and
shall cause each of its Affiliates and Representatives not to, directly or
indirectly, (a) solicit, initiate, knowingly facilitate or knowingly encourage
any inquiries regarding, or the making of any proposal or offer that
constitutes, or could reasonably be expected to lead to, a Takeover Proposal,
(b) engage in, continue or otherwise participate in any discussions or
negotiations regarding, or furnish to any other Person information in connection
with or for the purpose of encouraging or facilitating, a Takeover Proposal, (c)
enter into any letter of intent, Contract or agreement in principle with respect
to a Takeover Proposal or (d) approve or recommend any Takeover Proposal or any
letter of intent, Contract or agreement in principle with respect to a Takeover
Proposal. Each Stockholder agrees that it shall, and shall cause each
of its Affiliates and Representatives to, immediately cease any discussions or
negotiations with any Person that may be ongoing as of the date of this
Agreement with respect to any Takeover Proposal.
4.5 No
Groups. Except for any “group” that has been publicly
disclosed prior to the date of this Agreement in a Schedule 13D filed with the
SEC, each Stockholder agrees that it shall not, and shall cause each of its
Affiliates not to, become a member of a “group” (as that term is used in Section
13(d) of the Exchange Act) with respect to any Company Shares or other voting
securities of the Company for the purpose of opposing or competing with the
transactions contemplated by the Merger Agreement.
4.6 No Public
Statements. Each Stockholder agrees that it shall not, and
shall cause each of its Affiliates and Representatives not to, issue any press
releases or make any public statements with respect to this Agreement, the
Merger Agreement or any of the transactions contemplated by the Merger Agreement
without the prior written consent of Parent.
4.7 Further
Assurances. From time to time, at Parent’s request and without
further consideration, each Stockholder agrees that it shall execute and deliver
such additional documents and take all such further action as may be necessary
or desirable to consummate the transactions contemplated by this
Agreement. Without limiting the foregoing, each Stockholder hereby
severally as to itself only, but not jointly with any other Stockholder,
authorizes Parent to publish and disclose in the Proxy Statement and in any
other announcement or disclosure required by the SEC such Stockholder’s identity
and ownership of the Covered Shares and the nature of such Stockholder’s
obligations under this Agreement.
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ARTICLE
V
MISCELLANEOUS
5.1 Termination. This
Agreement shall terminate upon the earlier of (a) the Effective Time and
(b) the date on which the Merger Agreement is terminated in accordance with
its terms. Any such termination shall be without prejudice to any
liabilities arising under this Agreement prior to such termination.
5.2 Amendments;
Waivers. This Agreement may not be amended or waived except by
an instrument in writing signed (a) by each of the parties to this
Agreement in the case of an amendment or (b) by the party against whom the
waiver is to be effective in the case of a waiver. No failure or
delay by any party to this Agreement in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or of any other
right, power or privilege.
5.3 Notices. 9.1
Notices. All notices and other communications given or made pursuant
this Agreement shall be in writing and shall be deemed to have been duly given
or made (x) as of the date delivered or sent if delivered personally or sent by
facsimile (providing confirmation of transmission) or (y) as of the date
received if sent by prepaid overnight carrier (providing proof of delivery), in
each case of (x) and (y), to the parties at the following addresses or facsimile
numbers (or at such other addresses or facsimile numbers as shall be specified
by the parties by like notice):
If to
Parent, to:
Time
Warner Cable Inc.
00
Xxxxxxxx Xxxxxx
Facsimile:
(000) 000-0000
Attention:
Satish Adige
with a
copy to:
Xxxx,
Weiss, Rifkind, Xxxxxxx & Xxxxxxxx LLP
0000
Xxxxxx xx xxx Xxxxxxxx
Xxx Xxxx,
Xxx Xxxx 00000-0000
Facsimile:
(000) 000-0000
Attention:
Xxxxx X. Xxxxxxxxxx
If to a
Stockholder, to such Stockholder’s address or facsimile number set forth on the
signature pages to this Agreement
5.4 Successors and
Assigns. The provisions
of this Agreement shall be binding upon and inure to the benefit of the parties
to this Agreement and their respective successors and assigns. Except
as expressly permitted by the terms hereof, neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by any
Stockholder without the prior written consent of Parent. Any
purported assignment without such prior written consent shall be
void.
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5.5 Governing
Law. All disputes, claims or controversies arising out of or
relating to this Agreement, or the negotiation, validity or performance of this
Agreement, or the transactions contemplated hereby shall be governed by and
construed in accordance with the laws of the State of Delaware without regard to
its rules of conflict of laws.
5.6 Submission to
Jurisdiction. Each of the parties to this Agreement
irrevocably and unconditionally (a) consents to submit to the sole and exclusive
jurisdiction of the Court of Chancery of the State of Delaware (and, in the case
of appeals, appropriate appellate courts therefrom) or, in the event that such
court does not have subject matter jurisdiction or if under applicable law
exclusive jurisdiction over the matter is vested in the federal courts, any
court of the United States located in the State of Delaware (and, in the case of
appeals, appropriate appellate courts therefrom) for any litigation arising out
of or relating to this Agreement, or the negotiation, validity or performance of
this Agreement, or the Transaction, (b) agrees not to commence any litigation
relating thereto except in such courts, (c) waives any objection to the laying
of venue of any such litigation in such courts and (d) agrees not to plead or
claim in such courts that such litigation brought therein has been brought in
any inconvenient forum. Each of the parties hereto agrees, (i) to the
extent such party is not otherwise subject to service of process in the State of
Delaware, to appoint and maintain an agent in the State of Delaware as such
party’s agent for acceptance of legal process, and (ii) that, to the fullest
extent permitted by law, service of process may also be made on such party by
prepaid certified mail with a proof of mailing receipt validated by the United
States Postal Service constituting evidence of valid service. To the
fullest extent permitted by law, service made pursuant to (i) or (ii) above
shall have the same legal force and effect as if served upon such party
personally within the State of Delaware.
5.7 Waiver of Jury
Trial. Each party to this Agreement acknowledges and agrees
that any controversy which may arise under this Agreement is likely to involve
complicated and difficult issues and, therefore, each such party irrevocably and
unconditionally waives any right it may have to a trial by jury in respect of
any legal action arising out of or relating to this Agreement or the
Transaction. Each party to this Agreement certifies and acknowledges
that (a) no representative of the other party has represented, expressly or
otherwise, that such other party would not seek to enforce the foregoing waiver
in the event of a legal action, (b) such party has considered the implications
of this waiver, (c) such party makes this waiver voluntarily, and (d) such party
has been induced to enter into this Agreement by, among other things, the mutual
waivers and certificates in this Section 5.7.
5.8 Entire
Agreement. This Agreement constitutes the entire agreement and
supersedes all of the prior agreements and understandings, both written and
oral, among the parties with respect to the subject matter of this
Agreement.
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5.9 No Third-Party
Beneficiaries. Nothing in this Agreement, expressed or
implied, is intended to confer on any Person other than the parties to this
Agreement or their respective heirs, successors, executors, administrators and
assigns any rights, remedies, obligations or liabilities under or by reason of
this Agreement.
5.10 Severability. If
any provision of this Agreement, or the application thereof to any Person or
circumstance is held invalid or unenforceable, the remainder of this Agreement,
and the application of such provision to other Persons or circumstances, shall
not be affected thereby. If any provision of this Agreement, or the
application of that provision to any Person or any circumstance, is invalid or
unenforceable, (a) a suitable and equitable provision shall be substituted for
that provision in order to carry out, so far as may be valid and enforceable,
the intent and purpose of the invalid or unenforceable provision and (b) the
remainder of this Agreement and the application of that provision to other
Persons or circumstances shall not be affected by such invalidity or
unenforceability, nor shall such invalidity or unenforceability affect the
validity or enforceability of that provision, or the application of that
provision, in any other jurisdiction. Upon such a determination, 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 in a reasonably
acceptable manner so that the transactions contemplated by this Agreement may be
consummated as originally contemplated to the fullest extent
possible.
5.11 Rules of
Construction. The parties to this Agreement have been
represented by counsel during the negotiation and execution of this Agreement
and waive the application of any Laws or rule of construction providing that
ambiguities in any agreement or other document shall be construed against the
party drafting such agreement or other document.
5.12 Remedies. Except
as otherwise provided herein, any and all remedies herein expressly conferred
upon a party shall be deemed cumulative with and not exclusive of any other
remedy conferred hereby, or by law or equity upon such party, and the exercise
by a party of any one remedy shall not preclude the exercise of any other
remedy.
5.13 Specific
Performance. The parties to this Agreement 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, and that money damages or other legal remedies would not be
an adequate remedy for any such damages. It is accordingly agreed
that the parties shall be entitled to seek an injunction or injunctions to
prevent breaches of this Agreement and to enforce specifically the terms and
provisions of this Agreement, without bond or other security being required,
this being in addition to any other remedy to which they are entitled at law or
in equity.
5.14 Shareholder
Capacity. Notwithstanding anything contained in this Agreement
to the contrary, the representations, warranties, covenants and agreements made
herein by each Stockholder are made solely with respect to such Stockholder and
its Covered Shares. Each Stockholder is entering into this Agreement
solely in its capacity as the Beneficial Owner and record owner of its Covered
Shares and nothing in this Agreement shall limit or affect any actions taken by
any officer or director of the Company (or any Company Subsidiary) solely in his
or her capacity as a director or officer of the Company (or any Company
Subsidiary), including, without limitation, participating in his or her capacity
as a director of the Company in any discussions or negotiations in accordance
with Section 6.4 of the Merger Agreement. For the avoidance of doubt,
the obligations of each Stockholder under this Agreement are several and not
joint with the obligations of any other Stockholder, and no Stockholder shall be
responsible in any way for the performance of any obligations, or the actions or
omissions, of any other Stockholder. Nothing contained in this
Agreement, and no action taken by any Stockholder pursuant to this Agreement,
shall be deemed to constitute the parties as a partnership, an association, a
joint venture or any other kind of entity, or create a presumption that the
parties are in any way acting in concert or as a group with respect to the
obligations or the transactions contemplated by this Agreement.
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5.15 Counterparts;
Effectiveness. This Agreement may be executed in 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 party. Facsimile transmission or .pdf
copies of any signed original document shall be deemed the same as delivery of
an original. At the request of any party, the parties shall confirm
facsimile transmission by signing a duplicate original document.
[Signature
pages follow]
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IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized officers of the parties to this Agreement or other authorized person
as of the date first written above.
TIME
WARNER CABLE, INC.
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By:
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Name:
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Title:
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_______________________________
[Name of
Stockholder]
Notices
Address:
Facsimile:
Attention:
[Signature
blocks and contact information to be set forth for each
Stockholder]
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SCHEDULE
A
Name
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Company
Shares
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Company
Stock Options
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