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EXHIBIT 99.1
AGREEMENT AND PLAN OF REORGANIZATION AND MERGER
DATED AS OF
JANUARY 17, 2000
AMONG
JDS UNIPHASE CORPORATION,
RAINBOW ACQUISITION, INC.,
AND
E-TEK DYNAMICS, INC.
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Page
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Article I. THE MERGER............................................................ 2
SECTION 1.01. The Merger..................................................... 2
SECTION 1.02. Effective Time................................................. 2
SECTION 1.03. Effect of the Merger........................................... 2
SECTION 1.04. Certificate of Incorporation and Bylaws........................ 3
SECTION 1.05. Directors and Officers......................................... 3
SECTION 1.06. Merger Consideration; Conversion and Cancellation of
Securities..................................................... 3
SECTION 1.07. Exchange of Certificates....................................... 5
SECTION 1.08. Stock Transfer Books........................................... 6
SECTION 1.09. Dissenting Shares.............................................. 7
SECTION 1.10. Lost, Stolen or Destroyed Certificate.......................... 7
SECTION 1.11. Federal Income Tax Consequences................................ 7
SECTION 1.12. Material Adverse Effect........................................ 8
Article II. REPRESENTATIONS AND WARRANTIES OF THE COMPANY........................ 8
SECTION 2.01. Organization and Qualification; Subsidiaries................... 8
SECTION 2.02. Charter Documents.............................................. 8
SECTION 2.03. Capitalization................................................. 9
SECTION 2.04. Authority Relative to this Agreement........................... 9
SECTION 2.05. SEC Filings; Financial Statements.............................. 10
SECTION 2.06. Absence of Certain Changes or Events........................... 11
SECTION 2.07. No Undisclosed Liabilities..................................... 11
SECTION 2.08. Material Contracts; No Violation............................... 12
SECTION 2.09. Absence of Litigation.......................................... 13
SECTION 2.10. Employee Benefit Plans; Employment Agreements.................. 13
SECTION 2.11. Labor Matters.................................................. 14
SECTION 2.12. Disclosure Documents........................................... 14
SECTION 2.13. Taxes.......................................................... 15
SECTION 2.14. Environmental Matters.......................................... 16
SECTION 2.15. Brokers........................................................ 17
SECTION 2.16. Full Disclosure................................................ 18
SECTION 2.17. Opinion of Financial Advisor................................... 18
SECTION 2.18. Intellectual Property.......................................... 18
SECTION 2.19. Change in Control Payments..................................... 19
SECTION 2.20. Antitakeover Statutes.......................................... 19
SECTION 2.21. Title to Property.............................................. 19
SECTION 2.22. Year 2000 Matters.............................................. 20
Article III. REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB............. 20
SECTION 3.01. Organization and Qualification; Subsidiaries................... 20
SECTION 3.02. Certificate of Incorporation and Bylaws........................ 20
SECTION 3.03. Capitalization................................................. 21
SECTION 3.04. Authority Relative to this Agreement........................... 22
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SECTION 3.05. SEC Filings; Financial Statements.............................. 22
SECTION 3.06. Absence of Certain Changes or Events........................... 23
SECTION 3.07. No Undisclosed Liabilities..................................... 23
SECTION 3.08. Absence of Litigation.......................................... 23
SECTION 3.09. Labor Matters.................................................. 24
SECTION 3.10. Disclosure Documents........................................... 24
SECTION 3.11. Taxes.......................................................... 24
SECTION 3.12. Environmental Matters.......................................... 25
SECTION 3.13. Brokers........................................................ 25
SECTION 3.14. Full Disclosure................................................ 26
SECTION 3.15. Opinion of Financial Advisor................................... 26
SECTION 3.16. Intellectual Property.......................................... 26
SECTION 3.17. Title to Property.............................................. 27
SECTION 3.18. Year 2000 Matters.............................................. 27
SECTION 3.19. Material Contracts; No Violation............................... 28
Article IV. CONDUCT OF BUSINESS PENDING THE MERGER.............................. 29
SECTION 4.01. Conduct of Business by the Company Pending the Merger......... 29
SECTION 4.02. Conduct of Business by Parent and Merger Sub Pending
the Merger................................................... 31
SECTION 4.03. No Solicitation................................................ 32
Article V. ADDITIONAL AGREEMENTS................................................. 34
SECTION 5.01. Proxy Statement; Form S-4...................................... 34
SECTION 5.02. Company Stockholders' Meeting; Voting Agreements............... 34
SECTION 5.03. Access to Information; Confidentiality......................... 34
SECTION 5.04. Consents; Approvals............................................ 35
SECTION 5.05. Agreements of Affiliates....................................... 35
SECTION 5.06. Notification of Certain Matters................................ 36
SECTION 5.07. Further Assurances; Tax Treatment.............................. 36
SECTION 5.08. Public Announcements........................................... 36
SECTION 5.09. Listing of Parent Common Shares................................ 37
SECTION 5.10. Form S-8....................................................... 37
SECTION 5.11. Conveyance Taxes............................................... 37
SECTION 5.12. Director and Officer Liability................................. 37
SECTION 5.13. Action by Parent and Company's Boards.......................... 38
SECTION 5.14. Composition of the Board of Directors.......................... 38
SECTION 5.15. Employee Benefits.............................................. 38
Article VI. CONDITIONS TO THE MERGER............................................. 39
SECTION 6.01. Conditions to Obligations of Each Party to Effect the Merger... 39
SECTION 6.02. Additional Conditions to Obligations of Parent and
Merger Sub.................................................. 39
SECTION 6.03. Additional Conditions to Obligation of the Company............ 40
Article VII. TERMINATION........................................................ 41
SECTION 7.01. Termination................................................... 41
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SECTION 7.02. Effect of Termination.......................................... 42
SECTION 7.03. Fees and Expenses.............................................. 42
Article VIII. GENERAL PROVISIONS................................................. 44
SECTION 8.01. Effectiveness of Representations, Warranties and Agreements;
Knowledge, Etc............................................... 44
SECTION 8.02. Notices........................................................ 44
SECTION 8.03. Certain Definitions............................................ 45
SECTION 8.04. Amendment...................................................... 46
SECTION 8.05. Waiver......................................................... 46
SECTION 8.06. Headings....................................................... 47
SECTION 8.07. Severability................................................... 47
SECTION 8.08. Entire Agreement............................................... 47
SECTION 8.09. Assignment, Merger Sub......................................... 47
SECTION 8.10. Parties in Interest............................................ 47
SECTION 8.11. Governing Law.................................................. 48
SECTION 8.12. Counterparts................................................... 48
SECTION 8.13. WAIVER OF JURY TRIAL........................................... 48
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AGREEMENT AND PLAN OF REORGANIZATION AND MERGER
This AGREEMENT AND PLAN OF REORGANIZATION AND MERGER, is dated as of
January 17, 2000 (this "AGREEMENT"), among JDS UNIPHASE CORPORATION, a Delaware
corporation ("PARENT"), RAINBOW ACQUISITION, INC., a Delaware corporation and a
wholly owned subsidiary of Parent ("MERGER SUB"), and E-TEK DYNAMICS, INC., a
Delaware corporation (the "COMPANY").
WITNESSETH:
WHEREAS, the boards of directors of Parent, Merger Sub and the Company
have each determined that it is advisable and in the best interests of their
respective stockholders for Parent to enter into a strategic business
combination with the Company upon the terms and subject to the conditions set
forth herein;
WHEREAS, in furtherance of such combination, the boards of directors of
Parent, Merger Sub and the Company have each approved the merger (the "MERGER")
of Merger Sub with and into the Company in accordance with the applicable
provisions of the Delaware General Corporation Law (the "DGCL"), and upon the
terms and subject to the conditions set forth herein;
WHEREAS, concurrently with the execution and delivery of this Agreement
and as a condition and inducement to Parent's willingness to enter into this
Agreement, the Company has entered into a Company Stock Option Agreement dated
as of the date hereof in the form of Exhibit A (the "STOCK OPTION AGREEMENT"),
pursuant to which the Company has granted to Parent an option to purchase
validly issued, fully paid and nonassessable shares of the common stock of the
Company, par value $0.001 per share (the "COMPANY COMMON STOCK"), in an
aggregate amount equal to 19.9% of the outstanding shares of Company Common
Stock as of the date specified therein;
WHEREAS, concurrently with the execution and delivery of this Agreement
and as a condition and inducement to Parent's willingness to enter into this
Agreement, certain stockholders of the Company have entered into voting
agreements with Parent upon the terms and conditions specified therein;
WHEREAS, Parent, Merger Sub and the Company intend that the Merger qualify
as a reorganization under Section 368(a) of the Internal Revenue Code of 1986,
as amended (the "CODE"), and that, by approving resolutions authorizing this
Agreement, this Agreement be adopted as a plan of reorganization under Section
368(a) of the Code; and
WHEREAS, pursuant to the Merger, each outstanding share of Company Common
Stock (a "SHARE") shall be exchanged for the right to receive the Merger
Consideration (as defined in Section 1.07(b)), upon the terms and subject to the
conditions set forth herein.
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NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements herein contained, and intending to be legally bound hereby,
Parent, Merger Sub and the Company hereby agree as follows:
ARTICLE I.
THE MERGER
SECTION 1.01. The Merger.
(a) At the Effective Time (as defined in Section 1.02 hereof), and subject
to and upon the terms and conditions of this Agreement and in accordance with
the DGCL, Merger Sub shall be merged with and into the Company and the separate
corporate existence of Merger Sub shall cease upon the filing of a certificate
of merger with the Secretary of State of the State of Delaware pursuant to the
DGCL. The Company shall continue as the surviving company being the successor to
all the property, rights, powers, privileges, liabilities and obligations of
both Merger Sub and the Company. The Company as the surviving corporation after
the Merger is hereinafter sometimes referred to as the "SURVIVING COMPANY."
(b) The closing of the Merger (the "CLOSING") shall take place at a time
and on a date to be specified by the parties, which shall be no later than the
second business day after satisfaction or waiver of the conditions set forth in
Article VI, unless another time or date is agreed to in writing by the parties
hereto. The Closing will be held at the offices of Xxxxxxxx & Xxxxxxxx LLP, 000
Xxxxxx Xxxxxx, Xxx Xxxxxxxxx, Xxxxxxxxxx 00000, unless another place is agreed
to in writing by the parties hereto.
SECTION 1.02. Effective Time. As promptly as practicable after the
satisfaction or waiver of the conditions set forth in Article VI, but in no
event later than two business days thereafter, the parties hereto shall cause
the Merger to be consummated by filing all necessary documentation (the "MERGER
DOCUMENTS"), together with any required related certificates, with the Secretary
of State of the State of Delaware, in such form as required by, and executed in
accordance with the relevant provisions of, the DGCL (the time of such filing
being the "EFFECTIVE TIME").
SECTION 1.03. Effect of the Merger. At the Effective Time, the effect of
the Merger shall be as provided in this Agreement, the Merger Documents and the
applicable provisions of the DGCL. Without limiting the generality of the
foregoing, and subject thereto, at the Effective Time all the property, rights,
privileges, powers and privileges of the Company and Merger Sub shall vest in
the Surviving Company, and all liabilities and obligations of the Company and
Merger Sub shall become the liabilities and obligations of the Surviving
Company.
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SECTION 1.04. Certificate of Incorporation and Bylaws. Unless otherwise
determined by Parent prior to the Effective Time, at the Effective Time the
certificate of incorporation and bylaws of Merger Sub, as in effect immediately
prior to the Effective Time shall be the certificate of incorporation and bylaws
of the Surviving Company (the "CERTIFICATE OF INCORPORATION" and "BYLAWS") until
thereafter changed or amended as provided therein or by the DGCL; provided,
however, that Article I of the Certificate of Incorporation shall be amended to
read as follows: "The name of the company is E-TEK Dynamics, Inc."
SECTION 1.05. Directors and Officers. The directors of Merger Sub
immediately prior to the Effective Time shall be the initial directors of the
Surviving Company, each to hold office in accordance with the Certificate of
Incorporation and Bylaws, and the officers of Merger Sub immediately prior to
the Effective Time shall be the initial officers of the Surviving Company, in
each case until their respective successors are duly elected or appointed and
qualified.
SECTION 1.06. Merger Consideration; Conversion and Cancellation of
Securities. At the Effective Time, by virtue of the Merger and without any
action on the part of Parent, Merger Sub, the Company or the holders of any of
the Shares:
(a) Conversion of Securities. Each Share issued and outstanding
immediately prior to the Effective Time (excluding any Shares to be canceled
pursuant to Section 1.06(b) and any Dissenting Shares as defined in Section
1.09) shall be converted, subject to Section 1.06(f), into the right to receive
1.1 shares (the "EXCHANGE RATIO") of validly issued, fully paid and
nonassessable shares of Parent Common Stock, $0.001 par value per share ("PARENT
COMMON SHARES").
(b) Cancellation. Each Share owned by the Company, Parent, Merger Sub or
any direct or indirect wholly owned subsidiary of the Company or Parent
immediately prior to the Effective Time shall, by virtue of the Merger and
without any action on the part of the holder thereof, be canceled and retired
without payment of any consideration therefor and cease to exist.
(c) Assumption of Stock Options.
(i) At the Effective Time, each outstanding option to purchase
Company Common Stock (a "STOCK OPTION") granted under the Company's 1998
Stock Plan, 1998 Director Option Plan, 1997 Equity Incentive Plan and 1997
Executive Equity Incentive Plan (collectively, the "COMPANY STOCK OPTION
PLANS"), whether vested or unvested, shall be deemed assumed by Parent and
deemed to constitute an option to acquire, on the same terms and
conditions as were applicable under such Stock Option prior to the
Effective Time, the number (rounded down to the nearest whole number) of
Parent Common Shares as the holder of such Stock Option would have been
entitled to receive pursuant to the Merger had such holder exercised such
option in full immediately prior to the Effective Time (not taking into
account whether or not such option was in fact exercisable), at a price
per share rounded up to the nearest whole cent equal to (x)
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the aggregate exercise price for Company Common Stock otherwise
purchasable pursuant to such Stock Option divided by (y) the number of
Parent Common Shares deemed purchasable pursuant to such Stock Option;
provided, however, that the vesting schedule of the assumed options shall
continue to be determined by reference to the applicable Company Stock
Option Plan.
(ii) As soon as practicable after the Effective Time, Parent shall
deliver to each holder of an outstanding Stock Option an appropriate
notice setting forth such holder's rights pursuant thereto and such Stock
Option shall continue in effect on the same terms and conditions
(including any applicable anti-dilution provisions, and subject to the
adjustments required by this Section 1.06(c) after giving effect to the
Merger). Parent shall comply with the terms of all such Stock Options and
ensure, to the extent required by, and subject to the provisions of, the
applicable Company Stock Option Plan that any Stock Options which
qualified for special tax treatment prior to the Effective Time continue
to so qualify after the Effective Time. Parent shall take all corporate
action necessary to reserve for issuance a sufficient number of Parent
Common Shares for delivery pursuant to the terms set forth in this Section
1.06(c).
(d) Common Stock of Merger Sub. Each share of the common stock of Merger
Sub issued and outstanding immediately prior to the Effective Time shall be
converted into and exchanged for a validly issued, fully paid and nonassessable
share of common stock of the Surviving Company. Each share certificate of Merger
Sub evidencing ownership of any such shares shall evidence, from and after the
Effective Time, ownership of such shares of the Surviving Company.
(e) Adjustments to Exchange Ratio. The Exchange Ratio shall be adjusted to
reflect fully the effect of any share split, reverse split, share dividend
(including any dividend or distribution of securities convertible into Parent
Common Shares or Company Common Stock), reorganization, recapitalization or
other like change with respect to Parent Common Shares or Company Common Stock
occurring or having a record date after the date hereof and prior to the
Effective Time, including without limitation the two-for-one stock split
announced by Parent on January 3, 1999 proposed to be paid March 10, 2000.
(f) Fractional Shares. No fraction of a Parent Common Share will be
issued, but in lieu thereof each holder of Company Common Stock who would
otherwise be entitled to a fraction of a Parent Common Share (after aggregating
all fractional Parent Common Shares to be received by such holder) shall receive
from Parent an amount of cash (rounded up to the nearest whole cent), without
interest, equal to the product of (i) such fraction, multiplied by (ii) the
closing price of a Parent Common Share on the Nasdaq National Market on the last
trading day immediately prior to the Effective Time (as reported in the Wall
Street Journal or, if not reported therein, any other authoritative source).
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SECTION 1.07. Exchange of Certificates.
(a) Exchange Agent. Promptly after the Effective Time, Parent shall
supply, or shall cause to be supplied, to or for the account of a bank or trust
company designated by Parent (the "EXCHANGE AGENT"), in trust for the benefit of
the holders of Company Common Stock (other than Dissenting Shares), for exchange
in accordance with this Section 1.07, through the Exchange Agent, certificates
evidencing the Parent Common Shares issuable pursuant to Section 1.06 in
exchange for outstanding Shares. Parent shall promptly make available to the
Exchange Agent from time to time as needed, cash sufficient to pay cash in lieu
of fractional shares.
(b) Exchange Procedures. On or prior to the tenth (10) Business Day after
the Effective Time, Parent will instruct the Exchange Agent to mail to each
holder of record of a certificate or certificates which immediately prior to the
Effective Time evidenced outstanding Shares (other than Dissenting Shares) (the
"CERTIFICATES") (i) a letter of transmittal (which shall specify that delivery
shall be effected, and risk of loss and title to the Certificates shall pass,
only upon proper delivery of the Certificates to the Exchange Agent and shall be
in such form and have such other provisions as Parent may reasonably specify)
and (ii) instructions to effect the surrender of the Certificates in exchange
for the certificates evidencing Parent Common Shares and, in lieu of any
fractional shares thereof, cash pursuant to Section 1.06(f). Upon surrender of a
Certificate to the Exchange Agent for cancellation together with such letter of
transmittal, duly executed, and such other customary documents as may be
required pursuant to such instructions, the holder of such Certificate shall be
entitled to receive in exchange therefor (A) certificates evidencing that number
of whole Parent Common Shares which such holder has the right to receive in
accordance with the Exchange Ratio in respect of the Shares formerly evidenced
by such Certificate, (B) any dividends or other distributions with respect to
Shares to which such holder was entitled to receive prior to the Effective Time,
and (C) cash in lieu of fractional Parent Common Shares to which such holder is
entitled pursuant to Section 1.06(f) (the Parent Common Shares, dividends,
distributions and cash described in clauses (A)-(C) delivered for each Share
being, collectively, the "MERGER CONSIDERATION"), and the Certificate so
surrendered shall forthwith be canceled. In the event of a transfer of ownership
of Shares which is not registered in the transfer records of the Company as of
the Effective Time, Parent Common Shares and cash may be issued and paid in
accordance with this Article I to a transferee if the Certificate evidencing
such Shares is presented to the Exchange Agent, accompanied by all documents
required to evidence and effect such transfer pursuant to this Section 1.07(b)
and by evidence that any applicable stock/share transfer taxes have been paid.
Until so surrendered, each outstanding Certificate that, prior to the Effective
Time, represented Shares will be deemed from and after the Effective Time, for
all corporate purposes, other than the payment of dividends, to evidence the
ownership of the number of full Parent Common Shares into which such Shares
shall have been so converted and the right to receive an amount in cash in lieu
of the issuance of any fractional shares in accordance with Section 1.06.
(c) Distributions With Respect to Unexchanged Parent Common Shares. No
dividends or other distributions declared or made after the Effective Time with
respect to Parent Common Shares with a record date after the Effective Time
shall be paid to the holder of any unsurrendered Certificate with respect to the
Parent Common Shares they
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are entitled to receive until the holder of such Certificate shall surrender
such Certificate. Subject to applicable law, following surrender of any such
Certificate, there shall be paid to the record holder of the certificates
representing whole shares of Parent Common Shares issued in exchange therefor,
without interest, at the time of such surrender, the amount of dividends or
other distributions with a record date after the Effective Time theretofore paid
with respect to such whole shares of Parent Common Shares and cash in lieu of
any fractional Parent Common Share pursuant to Section 1.06(f) above.
(d) Transfers of Ownership. If any certificate for Parent Common Shares is
to be issued in a name other than that in which the Certificate surrendered in
exchange therefor is registered, it will be a condition of the issuance thereof
that the Certificate so surrendered will be properly endorsed and otherwise in
proper form for transfer and that the person requesting such exchange will have
paid to Parent or any agent designated by it any transfer or other taxes
required by reason of the issuance of a certificate for Parent Common Shares in
any name other than that of the registered holder of the Certificate
surrendered, or established to the reasonable satisfaction of Parent or any
agent designated by it that such tax has been paid or is not payable.
(e) No Liability. Neither Parent, Merger Sub nor the Company shall be
liable to any holder of Shares for any Merger Consideration (or dividends or
distributions with respect thereto) properly delivered to a public official
pursuant to any applicable abandoned property, escheat or similar law.
(f) Withholding Rights. Parent or the Exchange Agent shall be entitled to
deduct and withhold from the Merger Consideration otherwise payable pursuant to
this Agreement to any holder of Shares such amounts as Parent or the Exchange
Agent is required to deduct and withhold with respect to the making of such
payment under the Code, or any provision of state, local or foreign tax law. To
the extent that amounts are so withheld by Parent or the Exchange Agent, such
withheld amounts shall be treated for all purposes of this Agreement as having
been paid to the holder of the Shares in respect of which such deduction and
withholding was made by Parent or the Exchange Agent.
SECTION 1.08. Stock Transfer Books. At the Effective Time, the stock
transfer books of the Company shall be closed, the Merger Consideration
delivered upon the surrender for exchange of Shares in accordance with the terms
hereof shall be deemed to have been issued in full satisfaction of all rights
pertaining to such Shares, and there shall be no further registration of
transfers on the records of the Surviving Company of Shares which were
outstanding immediately prior to the Effective Time. If, after the Effective
Time, Certificates are presented to the Surviving Company for any reason, they
shall be canceled and exchanged as provided in this Article I.
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SECTION 1.09. Dissenting Shares.
(a) Notwithstanding any provision of this Agreement to the contrary, any
shares of capital stock of the Company held by a holder who has exercised
appraisal rights for such shares in accordance with the DGCL and who, as of the
Effective Time, has not effectively withdrawn or lost such appraisal rights
("DISSENTING SHARES"), shall not be converted into or represent a right to
receive Merger Consideration pursuant to Section 1.06, but the holder thereof
shall only be entitled to such rights as are granted under the DGCL.
(b) Notwithstanding the provisions of subsection (a) if any holder of
Dissenting Shares shall effectively withdraw or lose (through failure to perfect
or otherwise) such holder's appraisal rights, then, as of the later of the
Effective Time or the occurrence of such event, such holder's shares shall
automatically be converted into and represent only the right to receive the
Merger Consideration, without interest thereon, upon surrender of the
certificate or certificates representing such Dissenting Shares.
(c) The Company shall give Parent (i) prompt notice of any written demands
received by the Company to require the Company to purchase shares of capital
stock of the Company pursuant to the DGCL, withdrawals of such demands, and any
other instruments served pursuant to the DGCL and received by the Company and
(ii) the opportunity to participate in all negotiations and proceedings with
respect to such demands. The Company shall not, except with the prior written
consent of Parent, voluntarily make any payment with respect to any such demands
or offer to settle or settle any such demands.
SECTION 1.10. Lost, Stolen or Destroyed Certificate. In the event any
Certificates shall have been lost, stolen or destroyed, the Exchange Agent shall
issue in exchange for such lost, stolen or destroyed Certificates, upon the
making of an affidavit of that fact by the holder thereof, such Parent Common
Shares and cash as may be required pursuant to Section 1.06; provided, however,
that Parent may, in its discretion and as a condition precedent to the issuance
thereof, require the owner of such lost, stolen or destroyed Certificates to
deliver a bond in such sum as it may reasonably direct as indemnity against any
claim that may be made against Parent or the Exchange Agent with respect to the
Certificates alleged to have been lost, stolen or destroyed.
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SECTION 1.11. Federal Income Tax Consequences. It is intended by the
parties here to that the Merger shall constitute a reorganization within the
meaning of Section 368(a) of the Code. The parties hereto hereby adopt this
Agreement as a "plan of reorganization" within the meaning of Section 368 of the
Code.
SECTION 1.12. Material Adverse Effect. When used in connection with the
Company or any of its subsidiaries, or Parent or any of its respective
subsidiaries, as the case may be, the term "MATERIAL ADVERSE EFFECT" means any
change or effect that, individually or in the aggregate, is materially adverse
to the business, assets (including intangible assets), financial condition or
results of operations of the Company and its subsidiaries (a "COMPANY MATERIAL
ADVERSE EFFECT") or Parent and its respective subsidiaries (a "PARENT MATERIAL
ADVERSE EFFECT"), respectively, in each case taken as a whole, but other than
those adverse effects occurring as a result of the execution and public
announcement of this Agreement, the pendency of this Agreement or the
consummation of the transactions contemplated hereby (including, without
limitation, loss of customers, orders, suppliers or employees resulting
therefrom) or general market or industry conditions (including, without
limitation, any change in trading prices, in and of itself and without the
occurrence of any other Material Adverse Effect, of either Parent's or the
Company's outstanding publicly traded equity securities).
ARTICLE II.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company hereby represents and warrants to Parent and Merger Sub that,
except as set forth in the written disclosure schedule previously delivered by
the Company to Parent, the paragraphs of which are numbered to correspond to the
Sections of this Agreement (the "COMPANY DISCLOSURE SCHEDULE"):
SECTION 2.01. Organization and Qualification; Subsidiaries. The Company
and each of its subsidiaries is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation and
has the requisite corporate power and authority and is in possession of all
franchises, grants, authorizations, licenses, permits, easements, consents,
certificates, approvals and orders ("APPROVALS") necessary to own, lease and
operate the properties it purports to own, operate or lease and to carry on its
business as it is now being conducted, except where the failure to have such
power, authority and Approvals would not, individually or in the aggregate, have
a Company Material Adverse Effect. The Company and each subsidiary is duly
qualified or licensed as a foreign corporation to do business, and is in good
standing, in each jurisdiction where the character of its properties owned,
leased or operated by it or the nature of its activities makes such
qualification or licensing necessary, except for such failures to be so duly
qualified or licensed and in good standing that would not, either individually
or in the aggregate, have a Company Material Adverse Effect. The Company's
subsidiaries are the only entities in which the Company has any equity interest.
SECTION 2.02. Charter Documents. The Company has heretofore furnished or
made available to Parent a complete and correct copy of the charter documents
(including
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the articles or certificate of incorporation and bylaws, if any), as most
recently amended to date of the Company and each of its subsidiaries. Each such
charter document is in full force and effect. Neither the Company nor any
subsidiary is in violation or any of the provisions of its respective charter
documents.
SECTION 2.03. Capitalization. The authorized capital stock of the Company
consists of shares of Company Common Stock and shares of Preferred Stock. As of
January 1, 2000, (i) 67,915,191 shares of Company Common Stock were issued and
outstanding, all of which are validly issued, fully paid and nonassessable, and
issued in compliance with applicable securities laws, (ii) no shares of Company
Common Stock were held in the Company's treasury or by any subsidiary, (iii) no
shares of Company Preferred Stock were issued and outstanding and (iv) 6,733,218
shares of Company Common Stock were reserved for future issuance pursuant to
outstanding employee stock options granted pursuant to the Company's Stock
Option Plans. No shares of Company Common Stock have been issued between January
1, 2000 and the date hereof, other than pursuant to the Company's Stock Option
Plans. Except as set forth in Sections 2.03, 2.08 or 2.10 of the Company
Disclosure Schedule, as of the date hereof, there are no options, warrants or
other rights, agreements, arrangements or commitments of any character relating
to the issued or unissued shares (or other equity interests) of the Company or
of any subsidiary or obligating the Company or any subsidiary to issue or sell
any shares of, or other equity interests in, the Company or any subsidiary. All
shares of Company Common Stock subject to issuance as aforesaid, upon issuance
on the terms and conditions specified in the instruments pursuant to which they
are issuable, shall be duly authorized, validly issued, fully paid and
nonassessable. As of the date hereof, there are no obligations, contingent or
otherwise, of the Company or of any subsidiary to repurchase, redeem or
otherwise acquire any shares of Company Common Stock or the shares of any
subsidiary or to provide funds to or make any investment (in the form of a loan,
capital contribution or otherwise) in any subsidiary or any other entity other
than guarantees of bank obligations of a subsidiary entered into in the ordinary
course of business. None of the options, warrants, rights, agreements,
arrangements or commitments identified in Section 2.03 or 2.10 of the Company
Disclosure Schedule provide that, absent action by the board of directors of the
Company or a committee thereof, upon exercise or conversion the holder thereof
shall receive cash, and no such action of the board of directors or a committee
thereof has been taken. Except as set forth in Section 2.03 of the Company
Disclosure Schedule, all of the outstanding shares of each subsidiary (and all
shares to be issued prior to the Effective Time) are or will be duly authorized,
validly issued, fully paid and nonassessable, and issued in compliance with
applicable securities laws, and all such shares are or will be owned by the
Company free and clear of all security interests, liens, claims, pledges,
agreements, limitations in voting rights, charges, encumbrances or rights or
interests of others of any nature whatsoever (collectively, "LIENS"), other than
Liens for taxes not yet due and payable.
SECTION 2.04. Authority Relative to this Agreement. The Company has all
necessary corporate power and authority to execute and deliver this Agreement
and subject to obtaining any necessary stockholder approval of this Agreement,
to perform its obligations hereunder and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by the Company
and the consummation by the
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Company of the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action and no other corporate proceedings
on the part of the Company are necessary to authorize this Agreement or to
consummate the transactions so contemplated (other than the approval and
adoption of the Merger by a majority of the holders of the outstanding Shares
entitled to vote in accordance with the DGCL and the Company's certificate of
incorporation and bylaws). This Agreement has been duly and validly executed and
delivered by the Company and, assuming the due authorization, execution and
delivery by Parent and Merger Sub, as applicable, constitutes a legal, valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms. The board of directors of the Company has on the date of this
Agreement unanimously determined that it is advisable and in the best interest
of the Company's stockholders for the Company to enter into a strategic business
combination with Parent upon the terms and subject to the conditions of this
Agreement, and has on the date of this Agreement unanimously recommended that
the Company's stockholders approve and adopt this Agreement and the transactions
contemplated hereby, and, subject to Section 4.03 hereof, such resolutions of
the board of directors shall be in effect as of the Effective Time.
SECTION 2.05. SEC Filings; Financial Statements.
(a) The Company has filed all forms, reports, exhibits and other documents
required to be filed with the Securities and Exchange Commission (the "SEC")
between December 2, 1998 and the date of this Agreement and has made available
to Parent (i) its Quarterly Report on Form 10-Q for the period ended October 2,
1999 and its Annual Report on Form 10-K for the year ended June 30, 1999 (the
"1999 10-K"), respectively, (ii) all proxy statements relating to the Company's
meetings of stockholders (whether annual or special) held between December 2,
1998 and the date of this Agreement, (iii) all other reports or registration
statements (other than reports on Forms 3, 4 or 5 filed on behalf of affiliates
of the Company) filed by the Company with the SEC between December 2, 1998 and
the date hereof, and (iv) all amendments and supplements to all such reports and
registration statements filed by the Company with the SEC (collectively, the
"COMPANY SEC REPORTS"). The Company SEC Reports (i) were prepared in accordance
with applicable requirements of the Securities Act of 1933, as amended (the
"SECURITIES ACT") or the Securities Exchange Act of 1934, as amended (the
"EXCHANGE ACT") and the SEC's rules and regulations thereunder (collectively,
the "FEDERAL SECURITIES LAWS"), as the case may be, and (ii) did not at the time
they were filed (or if amended or superseded by a filing prior to the date of
this Agreement, then on the date of such filing) contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. No subsidiary is
required to file any forms, reports or other documents with the SEC.
(b) Each of the consolidated financial statements (including, in each
case, any related notes thereto) contained in the Company SEC Reports was
prepared in accordance with U.S. generally accepted accounting principles
("GAAP") applied on a consistent basis throughout the periods involved (except
as may be indicated in the notes thereto) and each fairly presented the
consolidated financial position of the Company and its
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subsidiaries as of the respective dates thereof and the consolidated results of
its operations and cash flows and stockholder equity for the periods indicated,
except that the unaudited interim financial statements were or are subject to
normal and recurring year-end adjustments which were not or are not expected to
be material in amount.
(c) The Company has heretofore furnished to Parent a complete and correct
copy of any amendments or modifications, which have not yet been filed with the
SEC but which are required to be filed, to agreements, documents or other
instruments which previously had been filed by the Company with the SEC pursuant
to the Securities Act or the Exchange Act.
SECTION 2.06. Absence of Certain Changes or Events Except as set forth in
Section 2.06 of the Company Disclosure Schedule or the Company SEC Reports,
between June 30, 1999 and the date hereof, there has not occurred: (i) any
Company Material Adverse Effect; (ii) any amendments or changes in the
certificate of incorporation or bylaws of the Company; (iii) any damage to,
destruction or loss of any asset of the Company, (whether or not covered by
insurance) that has had or is reasonably likely to have a Company Material
Adverse Effect; (iv) any change by the Company in its accounting methods,
principles or practices, except any such change as required by any concurrent
change in GAAP or Federal Securities Law applicable to companies generally; (v)
any revaluation of any of the Company's or any subsidiary's assets, including,
without limitation, writing down the value of inventory or writing off notes or
accounts receivable other than in the ordinary course of business; (vi) any
sale, pledge, disposition of or encumbrance upon a material amount of property
of the Company or of any subsidiary, except in the ordinary course of business;
(vii) any material Tax (as defined below) election inconsistent with past
practices or the settlement or compromise of any material Tax liability; (viii)
any declaration, issuance or payment of any dividend or other distribution
(whether in cash, stock or property or any combination thereof); or (ix) the
creation of any indebtedness for borrowed money or the issuance of any debt
securities or the assumption, guarantee (other than guarantees of bank debt of a
subsidiary entered into in the ordinary course of business) or endorsement or
other accommodation whereby the Company became responsible for, the obligations
of any person, or the making of any loans or advances, except in the ordinary
course of business consistent with past practice.
SECTION 2.07. No Undisclosed Liabilities. Except as is disclosed in
Section 2.07 of the Company Disclosure Schedule and in the Company SEC Reports,
neither the Company nor any subsidiary has any liabilities (absolute, accrued,
contingent or otherwise) which are, in the aggregate, material to the business,
operations or financial condition of the Company and its subsidiaries taken as a
whole, except liabilities (a) adequately provided for in the Company's audited
balance sheet (including any related notes thereto) for the fiscal year ended
June 30, 1999; (b) not required under U.S. GAAP to be reflected on such balance
sheet; or (c) incurred since June 30, 1999 in the ordinary course of business,
and liabilities incurred in connection with this Agreement.
SECTION 2.08. Material Contracts; No Violation.
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(a) Section 2.08(a) of the Company Disclosure Schedule includes a list of
each of the following currently outstanding agreements under which the Company
or any of its subsidiaries is a party or by which any of their assets are bound:
(i) joint venture, technology sharing and noncompetition agreements; (ii)
intellectual property licensing agreements other than commercial shrinkwrap
licenses; (iii) agreements with any consultant, employee, officer or director of
the Company or any of its subsidiaries, including employee benefit plans; (iv)
distribution agreements; (v) agreements, contracts or other instruments
(including all amendments thereto) which, in each case, as of the date hereof,
will be required to be filed by the Company with the SEC pursuant to the
requirements of the Exchange Act as "material contracts" and have not been filed
((i) through (v) collectively with all agreements, contracts and other
instruments (including amendments thereto) which have been filed by the Company
with the SEC, being, collectively, the "Material Contracts" of the Company and
its subsidiaries). The Company has made available to Parent prior to the date
hereof, true, correct and complete copies in all material respects of each such
Material Contract.
(b) Except as set forth in Section 2.08(b) of the Company Disclosure
Schedule, (i) neither the Company nor any subsidiary has breached, is in default
under, or has received written notice of any breach of or default under, any
Material Contract, (ii) to the knowledge of the Company, no other party to any
of the Material Contracts has breached or is in default of any of its
obligations thereunder, and (iii) each of the Material Contracts is in full
force and effect, except in any such case for breaches, defaults or failures to
be in full force that in the aggregate do not constitute a Company Material
Adverse Effect.
(c) Except as set forth in Section 2.08(c) of the Company Disclosure
Schedule, the execution and delivery of this Agreement by the Company does not,
and the performance of this Agreement and the consummation of the transactions
contemplated by this Agreement by the Company will not, (i) conflict with or
violate the certificate of incorporation or bylaws of the Company, (ii) conflict
with or violate any federal, foreign, state or provincial law, rule, regulation,
order, judgment or decree (collectively, "LAWS") applicable to the Company or
any subsidiary or by which any of their respective properties are bound or
affected, or (iii) result in any breach of or constitute a default (or an event
that with notice or lapse of time or both would become a default) under, or
impair the Company's or any subsidiary's rights or alter the rights or
obligations of any third party under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any contract, or result
in the creation of a Lien on any of the properties or assets of the Company or
any subsidiary pursuant to, any Material Contract or other note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other
instrument or obligation to which the Company or any subsidiary is a party or by
which the Company or any subsidiary or any of their respective properties are
bound or affected, except in the case of clauses (ii) and (iii) for any such
conflicts, violations, breaches, defaults or other occurrences that would not,
individually or in the aggregate, have a Company Material Adverse Effect.
SECTION 2.09. Absence of Litigation. Except as set forth in Section 2.09
of the Company Disclosure Schedule or the Company SEC Reports, (i) there are no
claims,
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actions, suits, proceedings or investigations pending or, to the knowledge of
the Company, threatened, against the Company or against any subsidiary and (ii)
there is no judgment, decree, injunction, rule or order of any Governmental or
Regulatory Authority (as defined in Section 2.14(g) below) outstanding against
the Company or its subsidiaries other than, in each case, those that the outcome
of which, individually or in the aggregate, would not have a Company Material
Adverse Effect or a material adverse effect on the Company's ability to
consummate the Merger.
SECTION 2.10. Employee Benefit Plans; Employment Agreements.
(a) For purposes of this Section 2.10: "ERISA" means the Employee
Retirement Income Security Act of 1974, as amended; "COMPANY ERISA AFFILIATE"
means any trade or business (whether or not incorporated) which is a member of a
controlled group including the Company or which is under common control with the
Company or any subsidiary of the Company; and "COMPANY EMPLOYEE PLANS" means all
bonus, stock option, stock purchase, incentive, deferred compensation,
supplemental retirement, severance and other fringe or employee benefit plans,
programs or arrangements, and any current or former employment or executive
compensation or severance agreements, written or otherwise, for the benefit of,
or relating to, any employee of the Company, as well as each such plan with
respect to which the Company or a Company ERISA Affiliate could incur liability
under applicable law (if such plan has been or were terminated), and excluding
agreements with former employees under which the Company has no remaining
monetary obligations.
(b) Except as set forth in Section 2.10(b) of the Company Disclosure
Schedule, none of the Company Employee Plans promises or provides retiree
medical or other retiree welfare benefits to any person other than coverage
mandated by applicable law or benefits, the full cost of which is borne by the
retiree.
(c) Except as would not have a Company Material Adverse Effect: (i) the
Company and its subsidiaries have complied with ERISA, the Code and all laws and
regulations applicable to the Company Employee Plans and each Company Employee
Plan has been maintained and administered in compliance with its terms; and (ii)
each Company Employee Plan intended to qualify under Section 401(a) of the Code
and each trust intended to qualify under Section 501(a) of the Code is the
subject of a favorable determination opinion, notification or advisory letter
from the Internal Revenue Service (the "IRS"), and nothing has occurred which
may reasonably be expected to impair such determination.
(d) Neither the Company nor its subsidiaries have incurred any material
liability under Title IV of ERISA (other than liability for premiums to the
Pension Benefit Guaranty Corporation arising in the ordinary course). No Company
Employee Plan has incurred a material "accumulated funding deficiency" (within
the meaning of Section 302 of ERISA or Section 412 of the Code), whether or not
waived. To the knowledge of the Company, there are not any facts or
circumstances that would materially change the funded status of any Company
Employee Plan that is a "defined benefit" plan (as defined in Section 3(35) of
ERISA) since the date of the most recent actuarial report for such
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plan. No Company Employee Plan is a "multiemployer plan" within the meaning of
Section 3(37) of ERISA.
(e) With respect to each of the Company Employee Plans that is subject to
Title IV of ERISA, the present value of accrued benefits under each such plan
did not, as of its latest valuation date, materially exceed the then current
value of the aggregate assets of such plans allocable to the payment of such
benefits.
SECTION 2.11. Labor Matters. Except as set forth in Section 2.11 of the
Company Disclosure Schedule, (i) there are no controversies pending or, to the
knowledge of the Company, threatened, between the Company or any of its
subsidiaries and any of their respective employees, which controversies have or
may reasonably be expected to have a Company Material Adverse Effect; (ii)
neither the Company nor any of its subsidiaries is a party to any collective
bargaining agreement or other labor union contract applicable to persons
employed by the Company or by any of its subsidiaries nor does the Company or
any of its subsidiaries know of any activities or proceedings of any labor union
to organize any such employees, and (iii) neither the Company nor any of its
subsidiaries has any knowledge of any strikes, slowdowns, work stoppages,
lockouts, or threats thereof, by or with respect to any employees of the Company
or of any of its subsidiaries.
SECTION 2.12. Disclosure Documents. The proxy statement of the Company to
be filed with the SEC in connection with the Merger (the "COMPANY PROXY
STATEMENT") and any amendments or supplements thereto will, when filed, comply
as to form in all material respects with the applicable requirements of the
Exchange Act. At the time the Company Proxy Statement or any amendment or
supplement thereto is first mailed to stockholders of the Company and at the
time such stockholders vote on the approval and adoption of this Agreement, the
Company Proxy Statement, as supplemented or amended, if applicable, will not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements contained therein, in light of
the circumstances under which they were made, not misleading. The foregoing
representations and warranties will not apply to statements or omissions
included in the Company Proxy Statement or any amendment or supplement thereto
based upon information furnished to the Company by Parent for use therein. None
of the information furnished to Parent for use in (or incorporation by reference
in) the Registration Statement (as defined in Section 3.10) or any amendment or
supplement thereto will contain, at the time the Registration Statement or any
amendment or supplement thereto becomes effective or at the Effective Time, any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary in order to make the statements contained
therein not misleading.
SECTION 2.13. Taxes.
(a) For purposes of this Agreement, "TAX" or "TAXES" shall mean taxes,
fees, levies, duties, tariffs, imposts and governmental impositions or charges
of any kind in the nature of (or similar to) taxes, payable to any federal,
state, local or foreign taxing authority, including (without limitation) (i)
income, franchise, profits, gross receipts, ad
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valorem, net worth, goods and services, fringe benefits, withholding, sales,
use, service, real or personal property, special assessments, Common Stock,
license, payroll, withholding, employment, social security, accident
compensation, unemployment compensation, utility, severance, production, excise,
stamp, occupation, premiums, windfall profits, transfer and gains taxes and (ii)
interest, penalties, additional taxes and additions to tax imposed with respect
thereto; and "TAX RETURNS" shall mean returns, reports and information
statements with respect to Taxes required to be filed with the IRS or any other
taxing authority, domestic or foreign, including, without limitation,
consolidated, combined and unitary tax returns.
(b) The Company has made available to Parent all Tax Returns filed by the
Company and its subsidiaries for all periods ending on or after June 30, 1999
and before the date of this Agreement. Except as disclosed on Schedule 2.13(b)
of the Company Disclosure Schedule, the Company and each of its subsidiaries
have filed all United States federal income Tax Returns and all other material
Tax Returns required to be filed by them, and such Tax Returns are complete and
correct in all material respects. Each of the Company and its subsidiaries has
duly paid or made adequate provision on its books and records and financial
statements for the payment of all material Taxes which have accrued or have
become payable. Except as disclosed on Schedule 2.13(b) of the Company
Disclosure Schedule (i) there are no pending audits, examinations or proposed
audits or examinations of any Tax Returns filed by the Company or by any of its
subsidiaries, (ii) with respect to any period for which material Tax Returns
have not yet been filed, or for which material Taxes are not yet due or owing,
each of the Company and its subsidiaries has made due and sufficient accruals
for such Taxes in its respective books and records and financial statements, and
(iii) neither the Company nor any of its subsidiaries has given or been
requested to give waivers or extensions of any statute of limitations relating
to the filing of Tax Returns or the assessment of Taxes for which the Company or
any of its subsidiaries may have any undisclosed liability, except for any
waiver or extension which has expired or any extensions resulting from the
filing of a Tax Return after its original due date in the ordinary course of
business. Except as set forth on Schedule 2.13(b) of the Company Disclosure
Schedule, as of the date of this Agreement the consolidated Tax Returns of the
Company and its subsidiaries have not been audited by the IRS (or the
appropriate statute of limitations has expired) for all fiscal years through
June 30, 1999.
(c) Except as set forth on Schedule 2.13(c) of the Company Disclosure
Schedule, neither the Company nor any of its subsidiaries: (i) is a party to any
agreement providing for the allocation, payment or sharing of taxes between the
Company or its subsidiaries, on the one hand, and any third party, on the other
hand; or (ii) has an application pending with respect to any Tax requesting
permission for a change in accounting method.
SECTION 2.14. Environmental Matters.
(a) Each of the Company and its subsidiaries has obtained all licenses,
permits, authorizations, approvals and consents from Governmental or Regulatory
Authorities which are required under any applicable Environmental Law (as
defined below) in respect of its business or operations ("ENVIRONMENTAL
PERMITS"), except for such failures
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to have Environmental Permits which, individually or in the aggregate, are not
reasonably expected to have a Company Material Adverse Effect. Each of such
Environmental Permits is in full force and effect and each of the Company and
its subsidiaries is in compliance with the terms and conditions of all such
Environmental Permits and with any applicable Environmental Law, except for such
failures to be in compliance which, individually or in the aggregate, are not
reasonably expected to have a Company Material Adverse Effect.
(b) There is no Environmental Claim (as defined below) pending or to the
knowledge of the Company threatened against the Company or any of its
subsidiaries or to the knowledge of the Company, pending or threatened against
any person or entity whose liability for any Environmental Claim the Company or
any of its subsidiaries has or may have retained or assumed either contractually
or by operation of law that is reasonably expected to have a Company Material
Adverse Effect.
(c) To the knowledge of the Company, there are no past or present actions,
activities, circumstances, conditions, events or incidents, including, without
limitation, the release, threatened release or presence of any Hazardous
Material (as defined below) which could form the basis of any Environmental
Claim against the Company or any of its subsidiaries, or to the knowledge of the
Company, against any person or entity whose liability for any Environmental
Claim the Company or any of its subsidiaries has or may have retained or assumed
either contractually or by operation of law, except for such liabilities which,
individually or in the aggregate, are not reasonably expected to have a Company
Material Adverse Effect.
(d) To the knowledge of the Company, no site or facility now or previously
owned, operated or leased by the Company or any of its subsidiaries is listed or
proposed for listing on the National Priorities List promulgated pursuant to the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended, and the rules and regulations thereunder ("CERCLA").
(e) No Liens have arisen under or pursuant to any Environmental Law on any
site or facility owned, operated or leased by the Company or any of its
subsidiaries, other than any such Liens which would not, individually or in the
aggregate, have a Company Material Adverse Effect, and no action of any
Governmental or Regulatory Authority (as defined below) has been taken or, to
the knowledge of the Company, is in process which could subject any of such
properties to such Liens.
(f) To the best of the Company's knowledge, the Company has delivered or
otherwise made available for inspection to the Parent true, complete and correct
copies and results of any material reports, studies, analyses, tests or
monitoring possessed or initiated by the Company or any of its subsidiaries
pertaining to Hazardous Materials in, on, beneath or adjacent to any property
currently or formerly owned, operated or leased by the Company or any of its
subsidiaries, or regarding the Company's or any of its subsidiaries' compliance
with applicable Environmental Laws.
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(g) As used herein: (i) "GOVERNMENTAL OR REGULATORY AUTHORITY" means any
court, tribunal, arbitrator, authority, agency, commission, official or other
instrumentality of the United States, any foreign country or any domestic or
foreign state, county, city or other political subdivision; (II) "ENVIRONMENTAL
CLAIM" means any claim, action, cause of action, investigation or notice
(written or oral) by any person or entity alleging potential liability
(including, without limitation, potential liability for investigatory costs,
cleanup costs, governmental response costs, natural resources damages, property
damages, personal injuries, or penalties) arising out of, based on or resulting
from (A) the presence, or release or threatened release, of any Hazardous
Materials at any location, whether or not owned or operated by the Company or
any of its subsidiaries, or (B) circumstances forming the basis of any
violation, or alleged violation, of any Environmental Law; (iii) "ENVIRONMENTAL
LAW" means any law or order of any Governmental or Regulatory Authority relating
to the regulation or protection of human health, safety or the environment or to
emissions, discharges, releases or threatened releases of Hazardous Material,
pollutants, contaminants, chemicals or industrial, toxic or hazardous substances
or wastes into the environment; and (iv) "HAZARDOUS MATERIAL" means (A) any
petroleum or petroleum products, flammable materials, radioactive materials,
friable asbestos, urea formaldehyde foam insulation and transformers or other
equipment that contain dielectric fluid containing regulated levels of
polychlorinated biphenyls (PCBs); (B) any chemicals or other materials or
substances which are now or hereafter become defined as or included in the
definition of "hazardous substances," "hazardous wastes," "hazardous materials,"
"extremely hazardous wastes," "restricted hazardous wastes," "toxic substances,"
"toxic pollutants" or words of similar import under any Environmental Law; and
(C) any other chemical or other material or substance, exposure to which is now
or hereafter prohibited, limited or regulated by any Governmental or Regulatory
Authority under any Environmental Law.
SECTION 2.15. Brokers. No broker, finder or investment banker (other than
Xxxxxxx, Xxxxx & Co., Inc. ("GS")) is entitled to any brokerage, finder's or
other fee or commission in connection with the transactions contemplated by this
Agreement based upon arrangements made by or on behalf of the Company. The
Company has heretofore furnished to Parent a complete and correct copy of all
agreements between the Company and GS pursuant to which such firm would be
entitled to any payment relating to the transactions contemplated hereunder.
SECTION 2.16. Full Disclosure. No statement contained in any
representation or warranty contained herein or any statement contained in any
certificate or schedule furnished or to be furnished by the Company or by any
subsidiary to Parent or Merger Sub in, or pursuant to the provisions of, this
Agreement contains or shall contain any untrue statement of a material fact or
omits or will omit to state any material fact necessary, in the light of the
circumstances under which it was made, in order to make the statements herein or
therein not misleading.
SECTION 2.17. Opinion of Financial Advisor. The Company has been advised
by its financial advisor, GS, that, in its opinion, as of the date of this
Agreement, the Exchange Ratio is fair from a financial point of view to the
Company's stockholders and has agreed to deliver a written copy of such opinion
dated the date hereof to Parent.
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SECTION 2.18. Intellectual Property.
The Company, directly or indirectly, owns, or is licensed or otherwise
possesses legally enforceable rights to use, all patents, trademarks, trade
names, service marks, copyrights, and any applications therefor, technology,
know-how and tangible or intangible proprietary information, inventions, trade
secrets, processes or material that are required for the conduct of the business
of the Company and its subsidiaries as currently conducted (the "COMPANY
INTELLECTUAL PROPERTY RIGHTS"). Section 2.18 of the Company Disclosure Schedule
contains a list of all registered Company Intellectual Property Rights and the
jurisdictions where such registrations have been made.
Either the Company or a subsidiary is the sole and exclusive owner of, or
the exclusive or non-exclusive licensee of, with all right, title and interest
in and to (free and clear of any Liens), the Company Intellectual Property
Rights, and, in the case of Company Intellectual Property Rights owned by the
Company or a subsidiary, has sole and exclusive rights (and is not contractually
obligated to pay any compensation to any third party in respect thereof) to the
use thereof or the material covered thereby in connection with the services or
products in respect of which the Company Intellectual Property Rights are
currently being used. To the knowledge of the Company, there is no and there has
not been any unauthorized use, infringement or misappropriation by the Company
or any of its subsidiaries of any patents, trademarks, trade names, service
marks, copyrights, and any applications therefor, technology, know-how and
tangible or intangible proprietary information, inventions, trade secrets or
processes of any third party. All registered patents, trademarks, service marks
and copyrights held by the Company are valid and subsisting. To the knowledge of
the Company, there is no unauthorized use, infringement or misappropriation of
any of the Company Intellectual Property Rights by any third party, including
any employee or former employee of the Company or any subsidiary. No Company
Intellectual Property Right or product of the Company or any subsidiary is
subject to any outstanding decree, order, judgment, or stipulation restricting
in any manner the licensing thereof by the Company or any subsidiary, except to
the extent any such restriction does not constitute a Company Material Adverse
Effect. Neither the Company nor any subsidiary has entered into any agreement
under which the Company or any subsidiary is restricted from selling, licensing
or otherwise distributing any of its products to any class of customers, in any
geographic area, during any period of time or in any segment of the market,
except to the extent any such restriction does not constitute a Company Material
Adverse Effect. Each of the Company and its subsidiaries has used commercially
reasonable efforts to (i) protect through nondisclosure agreements or other
appropriate means all material patent, copyright, trademark and trade secret
rights and confidential information of the Company and its subsidiaries, and
(ii) otherwise to secure and protect for the Company's benefit all Company
Intellectual Property Rights of the Company. Each employee, officer and
consultant of the Company and each of its subsidiaries has executed a
proprietary information and inventions agreement substantially in the form
provided by the Company to Parent. The execution of this Agreement and the
consummation of the transactions contemplated hereby will not impair or
invalidate in any way any of the Company Intellectual Property Rights.
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SECTION 2.19. Change in Control Payments. Except as set forth in Section
2.19 of the Company Disclosure Schedule, neither the Company nor any of its
subsidiaries have any plans, programs or agreements to which they are parties,
or to which they are subject, pursuant to which payments (whether in cash or
property or the vesting of property) may be required upon, or may become payable
directly or indirectly as a result of, a change of control of the Company.
SECTION 2.20. Antitakeover Statutes. The board of directors of the Company
has approved this Agreement and the transactions contemplated hereby and neither
Section 203 of the DGCL nor any other antitakeover or similar statute or
regulation applies or purports to apply to the transactions contemplated hereby.
SECTION 2.21. Title to Property. The Company and its subsidiaries own or
lease no material real property other than as set forth in Section 2.21 of the
Company Disclosure Schedule or the Company SEC Reports. Except as reflected in
the Company's financial statements included in the Company SEC Reports, each of
the Company and its subsidiaries has good and valid title to all of its
respective properties and assets, free and clear of all Liens except Liens for
Taxes not yet due and payable and such liens or other imperfections of title, if
any, as do not materially detract from the value of or materially interfere with
the present use of the property affected thereby; and, to the knowledge of the
Company, all leases pursuant to which the Company or any subsidiary leases from
others material amounts of real or personal property are in good standing, valid
and effective in accordance with their respective terms, and there is not, to
the knowledge of the Company, under any of such leases, any existing material
default or event of default (or event which with notice or lapse of time, or
both, would constitute a material default and in respect of which the Company or
any of its subsidiaries, as applicable, has not taken adequate steps to prevent
such a default from occurring).
SECTION 2.22. Year 2000 Matters. Any reprogramming required to permit the
proper functioning in and following the year 2000 of computer systems and other
equipment containing embedded microchips, in either case owned or operated by
the Company or any of its subsidiaries or used or relied upon in the conduct of
their respective businesses (including any systems and other equipment supplied
by others or with which the computer systems of the Company or any of its
subsidiaries interface) has been completed. The testing of all such systems and
other equipment as so reprogrammed has been completed. The costs to the Company
and its subsidiaries for such reprogramming and testing and for other
foreseeable consequences to them of any improper functioning of other computer
systems and equipment containing embedded microchips due to the occurrence of
the year 2000 will not have a Company Material Adverse Effect.
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ARTICLE III.
REPRESENTATIONS AND WARRANTIES OF PARENT
AND MERGER SUB
Parent and Merger Sub hereby represent and warrant to the Company that,
except as set forth in the written disclosure schedule previously delivered by
Parent to the Company, the paragraphs of which are numbered to correspond to the
Sections of this Agreement (the "PARENT DISCLOSURE SCHEDULE"):
SECTION 3.01. Organization and Qualification; Subsidiaries. Parent and
each of its subsidiaries is a corporation duly organized, validly existing and
in good standing under the laws of the jurisdiction of its incorporation and has
the requisite corporate power and authority and is in possession of all
Approvals necessary to own, lease and operate the properties it purports to own,
operate or lease and to carry on its business as it is now being conducted,
except where the failure to have such power, authority and Approvals would not,
individually or in the aggregate, have a Parent Material Adverse Effect. Parent
and each of its subsidiaries is duly qualified or licensed as a foreign
corporation to do business, and is in good standing, in each jurisdiction where
the character of its properties owned, leased or operated by it or the nature of
its activities makes such qualification or licensing necessary, except for such
failures to be so duly qualified or licensed and in good standing that would
not, either individually or in the aggregate, have a Parent Material Adverse
Effect.
SECTION 3.02. Certificate of Incorporation and Bylaws. Parent has
heretofore furnished to the Company a complete and correct copy of the
Certificate of Incorporation and Bylaws, as amended to date, of Parent and the
Certificate of Incorporation and Bylaws, as amended to date, of Merger Sub. Such
Certificates of Incorporation and Bylaws of Parent and Merger Sub are in full
force and effect. Neither Parent nor any of its subsidiaries is in violation of
any of the provisions of its charter documents.
SECTION 3.03. Capitalization.
(a) The authorized capital stock of Parent consists of (i) 600,000,000
shares of Parent Common Stock and (ii) 1,000,000 shares of Preferred Stock,
$0.001 par value ("PARENT PREFERRED STOCK") were authorized, of which (x)
100,000 shares of Series A Preferred Stock were authorized, (y) 100,000 shares
of Series B Preferred Stock were authorized, and (z) one share of special voting
stock is authorized. As of December 31, 1999, (1) 349,825,511 shares of Parent
Common Stock were issued and outstanding (including 107,753,682 shares of Parent
Common Stock issuable upon exchange of the outstanding exchangeable shares of
Parent's subsidiary, JDS Uniphase Canada, Ltd.), (2) 100,000 shares of Series A
Preferred Stock were issued and outstanding, (3) no shares of Series B Preferred
Stock were issued and outstanding and one share of special voting stock was
issued and outstanding, (4) no shares of capital stock were held in its
treasury, and (5) 58,127,797 shares of Parent Common Stock were reserved for
issuance pursuant to outstanding options under Parent's stock option plans
("PARENT'S STOCK OPTION PLANS"). No shares of Parent Common Stock or Parent
Preferred Stock have been issued between December 31, 1999 and the date hereof,
except for shares of Parent Common
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Stock issued upon exercise of options outstanding under Parent's Stock Option
Plans. The authorized common stock of Merger Sub consists of 100 shares of
common stock, all of which, as of the date hereof, are issued and outstanding.
All of the outstanding shares of Parent's and Merger Sub's respective common
stock have been duly authorized and validly issued and are fully paid and
nonassessable, and issued in compliance with applicable securities laws. As of
the date hereof, except for options outstanding under Parent's Stock Option
Plans and as set forth in Section 3.03 of the Parent Disclosure Schedule and as
described in the Parent SEC Reports, there are no options, warrants or other
rights, agreements, arrangements or commitments of any character relating to the
issued or unissued common stock of Parent or any of its subsidiaries or
obligating Parent or any of its subsidiaries to issue or sell any shares of
common stock of, or other equity interests in, Parent or any of its
subsidiaries. As of the date hereof, there are no obligations, contingent or
otherwise, of Parent or any of its subsidiaries to repurchase, redeem or
otherwise acquire any Parent Common Shares or the common stock of any
subsidiary. Except as set forth in Section 3.03(a) of the Parent Disclosure
Schedule or as will not have a Parent Material Adverse Effect, all of the
outstanding shares of common stock (or other equity interests) of each of
Parent's subsidiaries is duly authorized, validly issued, fully paid and
nonassessable, and issued in compliance with applicable securities laws and all
such shares are owned by Parent or another subsidiary free and clear of all
Liens, other than Liens for taxes not yet due and payable.
(b) The Parent Common Shares to be issued pursuant to the Merger will be
duly authorized, validly issued, fully paid and nonassessable and shall be
available for trading on the Nasdaq National Market.
SECTION 3.04. Authority Relative to this Agreement. Each of Parent and
Merger Sub has all necessary corporate power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution and delivery of this
Agreement by Parent and Merger Sub and the consummation by Parent and Merger Sub
of the transactions contemplated hereby have been duly and validly authorized by
all necessary corporate action on the part of Parent and Merger Sub, and no
other corporate proceedings on the part of Parent or Merger Sub are necessary to
authorize this Agreement or to consummate the transactions so contemplated. This
Agreement has been duly and validly executed and delivered by Parent and Merger
Sub and, assuming the due authorization, execution and delivery by the Company,
constitutes a legal, valid and binding obligation of Parent and Merger Sub,
enforceable against each in accordance with its terms. The board of directors of
Parent has determined that it is advisable and in the best interest of Parent's
stockholders for Parent to enter into a strategic business combination with the
Company upon the terms and subject to the conditions of this Agreement.
SECTION 3.05. SEC Filings; Financial Statements.
(a) Parent has filed all forms, reports, exhibits and other documents
required to be filed with the SEC between June 30, 1999 and the date of this
Agreement and has made available to the Company, in the form filed with the SEC,
(i) its Quarterly Report on Form 10-Q for the period ended September 30, 1999
and its Annual Reports on
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Form 10-K for the fiscal year ended June 30, 1999 and June 30, 1998,
respectively, (ii) all proxy statements relating to Parent's meetings of
stockholders (whether annual or special) held between June 30, 1998 and the date
of this Agreement, (iii) all other reports or registration statements (other
than Reports on Form 3, 4 or 5 filed on behalf of affiliates of the Parent)
filed by Parent with the SEC between June 30, 1998 and the date of this
Agreement, and (iv) all amendments and supplements to all such reports and
registration statements filed by Parent with the SEC (collectively, the "PARENT
SEC REPORTS"). The Parent SEC Reports (i) were prepared in accordance with
applicable requirements of the Federal Securities Laws, and (ii) did not at the
time they were filed (or if amended or superseded by a filing prior to the date
of this Agreement, then on the date of such filing) contain any untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading. None of Parent's
subsidiaries is required to file any forms, reports or other documents with the
SEC.
(b) Each of the consolidated financial statements (including, in each
case, any related notes thereto) contained in the Parent SEC Reports has been
prepared in accordance with U.S. GAAP applied on a consistent basis throughout
the periods involved (except as may be indicated in the notes thereto) and each
fairly presented the consolidated financial position of Parent and its
subsidiaries as of the respective dates thereof and the consolidated results of
its operations and cash flows and stockholder equity for the periods indicated,
except that the unaudited interim financial statements were or are subject to
normal and recurring year-end adjustments which were not or are not expected to
be material in amount.
(c) Parent has heretofore furnished to the Company a complete and correct
copy of any amendments or modifications, which have not yet been filed with the
SEC but which are required to be filed, to agreements, documents or other
instruments which previously had been filed by Parent with the SEC pursuant to
the Securities Act or the Exchange Act.
SECTION 3.06. Absence of Certain Changes or Events. Except as set forth in
Section 3.06 of the Parent Disclosure Schedule or the Parent SEC Reports,
between June 30, 1999 and the date hereof, there has not occurred: (i) any
Parent Material Adverse Effect; (ii) any amendments or changes in the
certificate of incorporation or bylaws of Parent (other than amendments to
increase the authorized common stock of Parent); (iii) any damage to,
destruction or loss of any asset of Parent, (whether or not covered by
insurance) that has had or is reasonably likely to have a Parent Material
Adverse Effect; (iv) any change by Parent in its accounting methods, principles
or practices, except any such change as required by any concurrent change in
GAAP or Federal Securities Law applicable to companies generally; (v) any
revaluation of any of Parent's or any subsidiary's assets, including, without
limitation, writing down the value of inventory or writing off notes or accounts
receivable other than in the ordinary course of business; (vi) any sale, pledge,
disposition of or encumbrance upon a material amount of property of Parent or of
any subsidiary, except in the ordinary course of business; (vii) any material
Tax (as defined above) election inconsistent with past practices or the
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settlement or compromise of any material Tax liability; or (viii) any
declaration, issuance or payment of any dividend or other distribution (whether
in cash, stock or property or any thereof), other than the two-for-one stock
split paid by Parent on December 29, 1999 and the two-for-one stock split
announced by Parent on January 3, 1999 proposed to be paid March 10, 2000.
SECTION 3.07. No Undisclosed Liabilities. Except as is set forth in the
Parent SEC Reports, neither the Parent nor any of its subsidiaries has any
liabilities (absolute, accrued, contingent or otherwise) which are, in the
aggregate, material to the business, operations or financial condition of the
Parent and its subsidiaries taken as a whole, except liabilities (a) adequately
provided for in the Parent's balance sheet (including any related notes thereto)
as of June 30, 1999, (b) not required under U.S. GAAP to be reflected on such
balance sheet, or (c) incurred since June 30, 1999 in the ordinary course of
business, and liabilities incurred in connection with this Agreement.
SECTION 3.08. Absence of Litigation. Except as set forth in the Parent SEC
Reports, (i) there are no claims, actions, suits, proceedings or investigations
pending or, to the knowledge of the Parent, threatened, against Parent or
against any subsidiary and (ii) there is no judgment, decree, injunction, rule
or order of any Governmental or Regulatory Authority outstanding against Parent
or its subsidiaries, other than, in each case those that the outcome of which,
individually or in the aggregate, would not have a Parent Material Adverse
Effect or a material adverse effect on Parent's ability to consummate the
Merger.
SECTION 3.09. Labor Matters. Except as set forth in Section 3.09 of the
Parent Disclosure Schedule, (i) there are no controversies pending or, to the
knowledge of Parent or any of its subsidiaries, threatened between Parent or any
of its subsidiaries and any of their respective employees, which controversies
have or may reasonably be expected to have a Parent Material Adverse Effect;
(ii) neither Parent nor any of its subsidiaries is a party to any collective
bargaining agreement or other labor union contract applicable to persons
employed by Parent or its subsidiaries nor does Parent or any of its
subsidiaries know of any activities or proceedings of any labor union to
organize any such employees, and (iii) neither Parent nor any of its
subsidiaries has any knowledge of any strikes, slowdowns, work stoppages,
lockouts or threats thereof, by or with respect to any employees of Parent or
any of its subsidiaries.
SECTION 3.10. Disclosure Documents. The registration statement of Parent
to be filed with the SEC with respect to the offering of Parent Common Shares in
connection with the Merger ("the "REGISTRATION STATEMENT") and any amendments or
supplements thereto will, when filed, comply as to form in all material respects
with the applicable requirements of the Securities Act. At the time the
Registration Statement or any amendment or supplement thereto becomes effective
and at the Effective Time, the Registration Statement, as amended or
supplemented, if applicable, shall not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements contained therein not misleading. The
foregoing representations and warranties will not apply to statements or
omissions included in the Registration Statement or any amendment or supplement
thereto based
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upon information furnished to Parent or Merger Sub by the Company for use
therein. None of the information furnished to the Company for use in (or
incorporation by reference in) the Company Proxy Statement or any amendment or
supplement thereto will contain, at the time the Company Proxy Statement or any
amendment or supplement thereto is first mailed to stockholders of the Company
or at any time the stockholders vote on the approval and adoption of this
Agreement, any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements contained therein, in light of
the circumstances under which they were made, not misleading.
SECTION 3.11. Taxes. Except as disclosed on Schedule 3.11 of the Parent
Disclosure Schedule, Parent and its subsidiaries have filed all United States
federal income Tax Returns and all other material Tax Returns required to be
filed by them for all periods ending on or after June 30, 1999 and before the
date of this Agreement, which Tax Returns are correct and complete in all
material respects, and have duly paid or made adequate provision on their books,
records and financial statements for the payment of all material Taxes which
have accrued or have become payable.
SECTION 3.12. Environmental Matters.
(a) Each of the Parent and its subsidiaries has obtained all Environmental
Permits, except for such failures to have Environmental Permits which,
individually or in the aggregate, are not reasonably expected to have a Parent
Material Adverse Effect. Each of such Environmental Permits is in full force and
effect and each of the Parent and its subsidiaries is in compliance with the
terms and conditions of all such Environmental Permits and with any applicable
Environmental Law, except for such failures to be in compliance which,
individually or in the aggregate, are not reasonably expected to have a Parent
Material Adverse Effect.
(b) Except as described in the Parent SEC Reports, there is no
Environmental Claim pending or to the knowledge of the Parent threatened against
the Parent or any of its subsidiaries or to the knowledge of the Parent, against
any person or entity whose liability for any Environmental Claim the Parent or
any of its subsidiaries has or may have retained or assumed either contractually
or by operation of law that is reasonably expected to have a Parent Material
Adverse Effect.
(c) Except as described in the Parent SEC Reports, to the knowledge of
Parent, there are no past or present actions, activities, circumstances,
conditions, events or incidents, including, without limitation, the release,
threatened release or presence of any Hazardous Material which could form the
basis of any Environmental Claim against Parent or any of its subsidiaries, or
to the knowledge of Parent, against any person or entity whose liability for any
Environmental Claim Parent or any of its subsidiaries has or may have retained
or assumed either contractually or by operation of law, except for such
liabilities which, individually or in the aggregate, are not reasonably expected
to have a Parent Material Adverse Effect.
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(d) To the knowledge of Parent, no site or facility now or previously
owned, operated or leased by Parent or any of its subsidiaries is listed or
proposed for listing on the National Priorities List promulgated pursuant to
CERCLA.
(e) No Liens have arisen under or pursuant to any Environmental Law on any
site or facility owned, operated or leased by Parent or any of its subsidiaries,
other than any such Liens which would, individually or in the aggregate, have a
Parent Material Adverse Effect, and no action of any Governmental or Regulatory
Authority has been taken or, to the knowledge of Parent, is in process which
could subject any of such properties to such Liens.
SECTION 3.13. Brokers. No broker, finder or investment banker (other than
Xxxxxx Xxxxxx Partners ("TWP") and Banc of America Securities LLC ("BAS") is
entitled to any brokerage, finder's or other fee or commission in connection
with the transactions contemplated by this Agreement based upon arrangements
made by or on behalf of Parent or Merger Sub. Parent has heretofore furnished to
the Company a complete and correct copy of all agreements between Parent and TWP
and BAS pursuant to which such firms would be entitled to any payment relating
to the transaction contemplated hereunder.
SECTION 3.14. Full Disclosure. No statement contained in any
representation or warranty contained herein or any statement contained in any
certificate or schedule furnished or to be furnished by Parent or Merger Sub to
the Company in, or pursuant to the provisions of, this Agreement contains or
will contain any untrue statement of a material fact or omits or shall omit to
state any material fact necessary, in light of the circumstances under which it
was made, in order to make the statements herein or therein not misleading.
SECTION 3.15. Opinion of Financial Advisor. Parent has been advised by its
financial advisor, BAS, that, in its opinion, as of the date of this Agreement,
the Exchange Ratio is fair from a financial point of view to Parent and has
delivered a written copy of such opinion dated the date hereof to the Company.
SECTION 3.16. Intellectual Property.Parent, directly or indirectly, owns,
or is licensed or otherwise possesses legally enforceable rights to use, all
patents, trademarks, trade names, service marks, copyrights, and any
applications therefor, technology, know-how and tangible or intangible
proprietary information, inventions, trade secrets, processes or material that
are required for the conduct of the business of Parent and its subsidiaries as
currently conducted (the "PARENT INTELLECTUAL PROPERTY RIGHTS"). Section 3.16 of
the Parent Disclosure Schedule contains a list of all registered Parent
Intellectual Property Rights and the jurisdictions where such registrations have
been made.
Either Parent or a subsidiary is the sole and exclusive owner of, or the
exclusive or non-exclusive licensee of, with all right, title and interest in
and to (free and clear of any Liens), the Parent Intellectual Property Rights,
and, in the case of Parent Intellectual Property Rights owned by Parent or a
subsidiary, has sole and exclusive rights (and is not
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contractually obligated to pay any compensation to any third party in respect
thereof) to the use thereof or the material covered thereby in connection with
the services or products in respect of which the Parent Intellectual Property
Rights are currently being used. To the knowledge of Parent, there is no and
there has not been any unauthorized use, infringement or misappropriation by
Parent or any of its subsidiaries of any patents, trademarks, trade names,
service marks, copyrights, and any applications therefor, technology, know-how
and tangible or intangible proprietary information, inventions, trade secrets or
processes of any third party. All registered patents, trademarks, service marks
and copyrights held by Parent are valid and subsisting. To the knowledge of
Parent, there is no unauthorized use, infringement or misappropriation of any of
the Parent Intellectual Property Rights by any third party, including any
employee or former employee of Parent or any subsidiary. No Parent Intellectual
Property Right or product of Parent or any subsidiary is subject to any
outstanding decree, order, judgment, or stipulation restricting in any manner
the licensing thereof by Parent or any subsidiary, except to the extent any such
restriction does not constitute a Parent Material Adverse Effect. Neither Parent
nor any subsidiary has entered into any agreement under which Parent or any
subsidiary is restricted from selling, licensing or otherwise distributing any
of its products to any class of customers, in any geographic area, during any
period of time or in any segment of the market, except to the extent any such
restriction does not constitute a Parent Material Adverse Effect. Each of Parent
and its subsidiaries has used commercially reasonable efforts to (i) protect
through nondisclosure agreements or other appropriate means all material patent,
copyright, trademark and trade secret rights and confidential information of
Parent and its subsidiaries, and (ii) otherwise to secure and protect for
Parent's benefit all Parent Intellectual Property Rights of Parent. Each
employee, officer and consultant of Parent and each of its subsidiaries has
executed a proprietary information and inventions agreement substantially in the
form provided by Parent to the Company. The execution of this Agreement and the
consummation of the transactions contemplated hereby will not impair or
invalidate in any way any of the Parent Intellectual Property Rights.
SECTION 3.17. Title to Property. Parent and its subsidiaries own or lease
no material real property other than as set forth in Section 3.17 of the Parent
Disclosure Schedule or the Parent SEC Reports. Except as reflected in Parent's
financial statements included in the Parent SEC Reports, each of Parent and its
subsidiaries has good and valid title to all of its respective properties and
assets, free and clear of all Liens except Liens for taxes not yet due and
payable and such liens or other imperfections of title, if any, do not
materially detract from the value of or materially interfere with the present
use of the property affected thereby; and, to the knowledge of Parent, all
leases pursuant to which Parent or any subsidiary leases from others material
amounts of real or personal property are in good standing, valid and effective
in accordance with their respective terms, and there is not, to the knowledge of
Parent, under any of such leases, any existing material default or event of
default (or event which with notice or lapse of time, or both, would constitute
a material default and in respect of which Parent or any of its subsidiaries, as
applicable, has not taken adequate steps to prevent such a default from
occurring).
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SECTION 3.18. Year 2000 Matters. Any reprogramming required to permit the
proper functioning in and following the year 2000 of computer systems and other
equipment containing embedded microchips, in either case owned or operated by
Parent or any of its subsidiaries or used or relied upon in the conduct of their
respective businesses (including any systems and other equipment supplied by
others or with which the computer systems of Parent or any of its subsidiaries
interface) has been completed. The testing of all such systems and other
equipment as so reprogrammed has been completed. The costs to Parent and its
subsidiaries for such reprogramming and testing and for other foreseeable
consequences to them of any improper functioning of other computer systems and
equipment containing embedded microchips due to the occurrence of the year 2000
will not have a Parent Material Adverse Effect.
SECTION 3.19. Material Contracts; No Violation.
(a) Except as set forth in Section 3.19(a) of the Parent Disclosure
Schedule, (i) neither the Parent nor any subsidiary has breached, is in default
under, or has received written notice of any breach or default under, any
contract filed as an exhibit or required to be filed as an exhibit to the Parent
SEC Reports (a "PARENT MATERIAL CONTRACT"), (ii) to the knowledge of Parent, no
other party to any of the Parent Material Contracts has breached or is in
default of any of its obligations thereunder, and (iii) each of the Parent
Material Contracts is in full force and effect, except in any such case for
breaches, defaults or failures to be in full force that in the aggregate do not
constitute a Parent Material Adverse Effect.
(b) Except as set forth in Section 3.19(b) of the Parent Disclosure
Schedule, the execution and delivery of this Agreement by the Parent does not,
and the performance of this Agreement and the consummation of the transactions
contemplated by this Agreement by Parent will, (i) conflict with or violate the
certificate of incorporation or bylaws of Parent, (ii) conflict with or violate
any Laws applicable to the Parent or any subsidiary or by which any of their
respective properties are bound or affected, or (iii) result in any breach of or
constitute a default (or an event that with notice or lapse of time or both
would become a default) under, or impair the Company's or any subsidiary's
rights or alter the rights or obligations of any third party under, or give to
others any rights of termination, amendment, acceleration or cancellation of,
any contract, or result in the creation of a Lien on any of the properties or
assets of the Company or any subsidiary pursuant to, any material contract filed
as an exhibit or required to be filed as an exhibit to the Parent SEC Reports or
other note, bond, mortgage, indenture, contract, agreement, lease, license,
permit, franchise or other instrument or obligation to which Parent or any
subsidiary is a party or by which Parent or any subsidiary or any of their
respective properties are bound or affected, except in the case of clauses (ii)
and (iii) for any such conflicts, violations, breaches, defaults or other
occurrences that would not, individually or in the aggregate, have a Parent
Material Adverse Effect.
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ARTICLE IV.
CONDUCT OF BUSINESS PENDING THE MERGER
SECTION 4.01. Conduct of Business by the Company Pending the Merger.
During the period from the date of this Agreement and continuing until the
earlier of the termination of this Agreement or the Effective Time, the Company
covenants and agrees that, unless Parent shall otherwise agree in writing or as
required or permitted under this Agreement, the Company shall conduct its
business and shall cause the business of its subsidiaries to be conducted only
in, and the Company and its subsidiaries shall not take any action except in the
ordinary course of business and in a manner consistent with past practice; and
the Company shall use reasonable commercial efforts to preserve substantially
intact the business organization of the Company and its subsidiaries, to keep
available the services of the present officers, employees and consultants of the
Company and its subsidiaries and to preserve the present relationships of the
Company and its subsidiaries with customers, suppliers and other persons with
which the Company or any subsidiary has significant business relations. By way
of amplification and not limitation, except as contemplated by this Agreement
and except as disclosed in Section 4.01 of the Company Disclosure Schedule,
neither the Company nor any subsidiary shall, during the period from the date of
this Agreement and continuing until the earlier of the termination of this
Agreement or the Effective Time, directly or indirectly do, or propose to do,
any of the following without the prior written consent of Parent:
(a) amend or otherwise change the Company's certificate of incorporation
or bylaws;
(b) issue, sell, pledge, dispose of or encumber, or authorize the
issuance, sale, pledge, disposition or encumbrance of, any shares of Company
capital stock of any class, or any options, warrants, convertible securities or
other rights of any kind to acquire any shares of Company capital stock, or any
other ownership interest (including, without limitation, any phantom interest)
of the Company, any subsidiary or any of its affiliates, except for the issuance
of (i) options under the Company Stock Option Plans to purchase up to 2,000,000
shares of Company Common Stock granted to Company employees in the ordinary
course of business, which options shall have exercise prices no less than the
fair market value at the time of grant and (ii) shares of Company Common Stock
issuable to participants in the Company's employee stock purchase plan in the
ordinary course of business and upon issuance of outstanding Stock Options
granted under the Company Stock Option Plans;
(c) sell, pledge, dispose of or encumber any assets or inventory of the
Company or of any subsidiary (except for (i) sales of assets or inventory in the
ordinary course of business, (ii) dispositions of obsolete or worthless assets,
and (iii) pledges of assets pursuant to existing agreements, or agreements the
Company is permitted to enter into in connection with the purchase of assets),
or take any action that would reasonably be expected to result in any damage to,
destruction or loss of any material asset of the Company (whether or not covered
by insurance);
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(d) except as is contemplated by this Agreement, or the applicable award
agreement or Employee Plan, accelerate, amend or change the period (or permit
any acceleration, amendment or change) of exercisability of options or
restricted stock granted under the Employee Plans (including the Company Stock
Option Plans) or authorize cash payments in exchange for any options granted
under any of such plans;
(e) (i) declare, set aside, make or pay any dividend or other distribution
(whether in cash, stock or property or any combination thereof) in respect of
any of its common stock, except that a subsidiary may declare and pay a dividend
to the Company, (ii) split, combine or reclassify any of its common stock or
issue or authorize or propose the issuance of any other securities in respect
of, in lieu of or in substitution for shares of its common stock, (iii) amend
the terms of, repurchase, redeem or otherwise acquire, or permit any subsidiary
to repurchase, redeem or otherwise acquire, any of its securities or any
securities of a subsidiary, except in accordance with preexisting commitments as
of the date hereof, or propose to do any of the foregoing;
(f) (i) acquire (by merger, consolidation, or acquisition of stock or
assets) any company, corporation, partnership or other business organization or
division thereof, or enter into or amend any contract, agreement, commitment or
arrangement to effect any such acquisition, except with respect to those
transactions as set forth in Section 4.01(f) of the Company Disclosure Schedule,
(ii) incur any indebtedness for borrowed money or issue any debt securities or
assume, guarantee (other than guarantees of bank debt of a subsidiary entered
into in the ordinary course of business) or endorse or otherwise as an
accommodation become responsible for, the obligations of any person, or make any
loans or advances, except in each case in the ordinary course of business
(including pursuant to existing credit lines and lease facilities); (iii) to
provide funds to or make any investment (in the form of a loan, capital
contribution or otherwise) in any subsidiary or any other entity other than
guarantees of bank obligations of a subsidiary entered into in the ordinary
course of business; (iv) except in the ordinary course of business or otherwise
provided or permitted by this Agreement, to enter into or amend any material
agreement or contract which provides for the sale, license, or purchase by the
Company or any of its subsidiaries of assets; (iv) authorize any capital
expenditures or purchase of fixed assets which are, in the aggregate, in excess
of $100,000,000; or (v) enter into or amend any contract, agreement, commitment
or arrangement to effect any of the matters prohibited by this Section 4.01(f);
provided, however, notwithstanding anything to the contrary contained in the
foregoing, the Company shall be permitted to make minority equity investments in
other entities not to exceed $5 million individually, or $30 million in the
aggregate (including without limitation the right to enter into appropriate
investment agreements);
(g) increase the compensation payable or to become payable to its officers
or employees, except for increases in salary or wages of employees of the
Company or of any subsidiary who are not executive officers of the Company in
the ordinary course of business in accordance with past practices, or grant any
severance or termination pay to, or enter into any employment or severance
agreement with any director, officer (except for officers who are terminated on
an involuntary basis), or, except as consistent with past practice and in the
ordinary course of business, establish, adopt, enter into or amend any
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collective bargaining, bonus, profit sharing, thrift, compensation, stock
option, restricted stock, pension, retirement, deferred compensation,
employment, termination, severance or other plan, agreement, trust, fund, policy
or arrangement for the benefit of any current or former directors, officers or
employees, except, in each case, as may be required by law;
(h) take any action to change accounting policies or procedures
(including, without limitation, procedures with respect to revenue recognition,
payments of accounts payable and collection of accounts receivable), except as
required by concurrent changes in GAAP or Federal Securities Law applicable to
companies generally;
(i) make any material Tax election inconsistent with past practices or
settle or compromise any material federal, state, local or foreign Tax liability
or agree to an extension of a statute of limitations except to the extent the
amount of any such settlement has been reserved for on the most recent Company
SEC Report or incurred in the ordinary course of business since such date;
(j) pay, discharge or satisfy any claims, liabilities or obligations
(absolute, accrued, asserted or unasserted, contingent or otherwise), other than
the payment, discharge or satisfaction in the ordinary course of business;
(k) Engage in any action or enter into any transaction or permit any
action to be taken or transaction to be entered into that could reasonably be
expected to delay the consummation of, or otherwise adversely affect, any of the
transactions contemplated by this Agreement;
(l) undertake any revaluation of any of the Company's or any subsidiary's
assets, including, without limitation, writing down the value of inventory or
writing off notes or accounts receivable other than in the ordinary course of
business or in accordance with GAAP consistently applied;
(m) take, or agree in writing or otherwise to take, any of the actions
described in Sections 4.01 (a) through (l) above.
SECTION 4.02. Conduct of Business by Parent and Merger Sub Pending the
Merger. During the period from the date of this Agreement and continuing until
the earlier of the termination of this Agreement or the Effective Time, Parent
covenants and agrees that, unless the Company shall otherwise agree in writing
or as required or permitted under this Agreement, Parent shall conduct its
business and shall cause the business of its subsidiaries to be conducted only
in, and Parent and its subsidiaries shall not take any action except in the
ordinary course of business and in a manner consistent with past practice; and
Parent shall use reasonable commercial efforts to preserve substantially intact
the business organization of Parent and its subsidiaries, to keep available the
services of the present officers, employees and consultants of Parent and its
subsidiaries and to preserve the present relationships of Parent and its
subsidiaries with customers, suppliers and other persons with which Parent or
any subsidiary has significant business relations. By way of amplification and
not limitation, except as
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contemplated by this Agreement and except as disclosed in Section 4.02 of the
Parent Disclosure Schedule, neither Parent nor any of its subsidiaries shall,
unless the Company shall otherwise agree in writing or as required or permitted
under this Agreement, during the period from the date of this Agreement and
continuing until the earlier of the termination of this Agreement or the
Effective Time, directly or indirectly do, or propose to do, any of the
following without the prior written consent of the Company:
(a) Engage in any action or enter into any transaction or permit any
action to be taken or transaction to be entered into that could reasonably be
expected to delay the consummation of, or otherwise adversely affect, any of the
transactions contemplated by this Agreement;
(b) Acquire (by merger, consolidation, or acquisition of stock or assets)
any company, corporation, partnership or other business organization or division
thereof or enter into or amend any contract, agreement, commitment or
arrangement to effect any such acquisition, except with respect to those
transactions as set forth in Section 4.02(b) of the Parent Disclosure Schedule;
provided that Parent (or its subsidiaries) may make minority equity investments
in other entities not to exceed $5 million individually, or $30 million in the
aggregate (including without limitation the right to enter into appropriate
investment agreements); or
(c) Take, or agree in writing or otherwise to take, any of the actions
described in Sections 4.02(a) through (b) above.
SECTION 4.03. No Solicitation.
(a) The Company shall not, and shall not permit or authorize the Company's
subsidiaries, its and their officers, directors, employees, affiliates, agents
or other representatives (including without limitation any investment banker,
financial advisor, attorney or accountant retained by it or any of its
subsidiaries) to initiate, solicit or knowingly encourage (including by way of
furnishing information or assistance) or take any other action to facilitate,
any inquiries or the making of any proposal relating to, or that may reasonably
be expected to lead to, any Alternative Transaction (as defined in Section
7.03(d)), or enter into discussions (except as to the existence of these
provisions) or negotiate with any person or entity in furtherance of such
inquiries or to obtain an Alternative Transaction, or agree to, or endorse, any
Alternative Transaction and the Company shall promptly notify Parent of all
relevant terms of any such inquiries or proposals received by the Company or by
any subsidiary or by any such officer, director, employee, agent, investment
banker, financial advisor, attorney, accountant or other representative relating
to any of such matters and if such inquiry or proposal is in writing, the
Company shall promptly deliver or cause to be delivered to Parent a copy of such
inquiry or proposal and promptly update Parent as to any material changes with
respect to such inquiry or proposal; provided, however, that nothing contained
in this subsection (a) shall prohibit the board of directors of the Company, any
of its subsidiaries, and each of their officers, directors, employees,
affiliates, agents or other representatives (including without limitation any
investment banker, financial advisor, attorney or accountant retained by it or
any of its subsidiaries) from (i) furnishing information to, entering into a
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confidentiality agreement with, or entering into discussions or negotiations
with, any persons or entity in connection with an unsolicited bona fide proposal
in writing by such person or entity relating to an Alternative Transaction if,
and only to the extent that (A) the board of directors of the Company determines
in good faith, after consultation with its outside legal counsel, that such
action is reasonably necessary to comply with its fiduciary duties under
Delaware law, (B) such action is in response to an unsolicited bona fide written
proposal made by a third party relating to an Alternative Transaction on terms
which the Company's board of directors believes to be more favorable to the
Company's stockholders than the Merger or may reasonably be expected to result
in an Alternative Transaction on terms that the Company's board of directors
believe is more favorable to the Company's stockholders than the Merger, and in
each case for which financing, to the extent required, is then committed (a
"SUPERIOR PROPOSAL"), and (C) prior to furnishing such information to, or
entering into discussions or negotiations with, such person or entity the
Company provides written notice to Parent to the effect that it is furnishing
information to, or entering into discussions or negotiations with, such person
or entity; (ii) complying with Rule 14e-2 promulgated under the Exchange Act
with regard to an Alternative Transaction; or (iii) in the event of a Superior
Proposal, to enter an agreement or understanding with respect to the Superior
Proposal.
(b) The Company shall immediately cease and cause to be terminated any
existing discussions or negotiations with any parties (other than Parent and
Merger Sub) conducted heretofore with respect to any of the foregoing. The
Company agrees not to release any third party from any confidentiality or
standstill agreement to which the Company is a party.
(c) The Company shall ensure that the officers, directors and employees of
the Company and of each subsidiary and any investment banker or other advisor or
representative retained by the Company are aware of the restrictions described
in this Section.
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ARTICLE V.
ADDITIONAL AGREEMENTS
SECTION 5.01. Proxy Statement; Form S-4. In connection with the meeting of
the Company's stockholders to approve this Agreement and the transactions
contemplated hereby (the "COMPANY STOCKHOLDERS' MEETING"), after the date hereof
the Company will promptly prepare and file with the SEC a proxy statement (the
"COMPANY PROXY STATEMENT"), conforming to the requirements of the applicable
provisions of the Exchange Act, soliciting the Company stockholders' approval of
this Agreement and the transactions contemplated herein at the Company
Stockholders' Meeting. After the date hereof, Parent shall prepare and Parent
shall file with the SEC the Registration Statement in which a prospectus and the
Company Proxy Statement will be included as part. Each of Parent and the Company
will respond to any comments of the SEC, will use commercially reasonable
efforts to cause the Registration Statement to become effective and will cause
the Company Proxy Statement/Prospectus to be mailed to all stockholders of the
Company at the earliest practicable time after the Registration Statement is
declared effective. Each of Company and Parent will notify the other promptly
upon the receipt of any comments from the SEC or its staff of any request by the
SEC or its staff for amendments or supplements to the Registration Statement,
Company Proxy Statement, or for additional information and will supply the other
copies with all such correspondence between such party or any of its
representatives, on the one hand, and the SEC or its staff, on the other hand,
with respect to the Registration Statement, Company Proxy Statement or Merger.
The Company Proxy Statement and all other proxy materials shall be subject to
the review and reasonable approval of Parent.
SECTION 5.02. Company Stockholders' Meeting; Voting Agreements. The
Company shall call and use commercially reasonable efforts to hold the Company
Stockholders' Meeting as promptly as practicable after the date on which the
Registration Statement becomes effective for the purpose of voting upon the
approval of the Merger. The Company shall use commercially reasonable efforts to
solicit from its stockholders proxies in favor of the approval of the Merger,
and shall use commercially reasonable efforts to take all other action necessary
or advisable to secure the vote or consent of stockholders required by the DGCL
and the certificate of incorporation and bylaws of the Company to obtain such
approvals. Concurrently herewith each of the persons listed on Exhibit 5.02(a)
has entered into a Voting Agreement with Parent in substantially the form of
Exhibit 5.02(b) hereto (the "VOTING AGREEMENTS") and the Company shall in no way
challenge the validity, or enforceability of any of the Voting Agreements or any
proxy entered into in connection therewith.
SECTION 5.03. Access to Information; Confidentiality. Upon reasonable
notice and subject to restrictions contained in confidentiality agreements to
which such party is subject, the Company and Parent shall each (and shall cause
each of their subsidiaries to) afford to the officers, employees, accountants,
counsel and other representatives of the other, reasonable access, during the
period prior to the Effective Time, to all its properties, books, contracts,
commitments and records and, during such period. The Company and Parent each
shall (and shall cause each of their subsidiaries to) furnish promptly to the
other all information concerning its business, properties and
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personnel as such other party may reasonably request, and each shall make
available to the other the appropriate individuals (including attorneys,
accountants and other professionals) for discussion of the other's business,
properties and personnel as either party may reasonably request. Each party
shall keep such information confidential in accordance with the terms of the
letter agreement, entered into on January 7, 2000 (the "CONFIDENTIALITY
AGREEMENT") between Parent and the Company. The Company and Parent shall file
all reports required to be filed by each of them with the SEC between the date
of this Agreement and the Effective Time and shall deliver to the other party
copies of such reports promptly after the same are filed.
SECTION 5.04. Consents; Approvals. The Company and Parent shall coordinate
and cooperate with one another and shall each use their reasonable best efforts
to obtain (and shall each refrain from taking any willful action that would
impede obtaining) all consents, waivers, approvals, authorizations or orders
(including, without limitation, all rulings, decisions or approvals by any
Governmental or Regulatory Authority), and the Company and Parent shall make all
filings (including, without limitation, the pre-merger notification filings
required under the Xxxx-Xxxxx-Xxxxxx Antitrust Improvements Act of 1976 ("HSR
ACT"), as amended, and all other filings with Governmental or Regulatory
Authorities) required in connection with the authorization, execution and
delivery of this Agreement by the Company and Parent and the consummation by
them of the transactions contemplated hereby, excepting only those merger
notification filings with foreign jurisdictions for which the failure to file
would not have a Material Adverse Effect on the Company or the transactions
contemplated hereby. The Company and Parent shall furnish all information
required to be included in the Company Proxy Statement and the Registration
Statement, or for any application or other filing to be made pursuant to the
rules and regulations of any Governmental or Regulatory Authority in connection
with the transactions contemplated by this Agreement. Except where prohibited by
applicable statutes and regulations, and subject to the Confidentiality
Agreement, each party shall coordinate with one another in preparing and
exchanging such information, and shall promptly provide the other (or its
counsel) with copies of all filings, presentations or submissions made by such
party with any Governmental or Regulatory Authority in connection with this
Agreement or the transactions contemplated hereby.
SECTION 5.05. Agreements of Affiliates. The Company shall deliver to
Parent, prior to the date the Registration Statement becomes effective under the
Securities Act, a letter (the "AFFILIATE LETTER") identifying all persons who
are, or may be deemed to be, at the time of the Company Stockholders' Meeting,
"affiliates" of the Company for purposes of Rule 145 under the Securities Act.
The Company shall use commercially reasonable efforts to cause each person who
is identified as an "affiliate" in the Affiliate Letter to deliver to Parent,
prior to the Effective Time, a written agreement (an "AFFILIATE AGREEMENT") in a
form mutually agreeable to the Company and Parent.
SECTION 5.06. Notification of Certain Matters. The Company shall give
prompt notice to Parent, and Parent shall give prompt notice to the Company, of
(i) the occurrence or non-occurrence of any event the occurrence or
non-occurrence of which would be likely to cause any representation or warranty
contained in this Agreement to be
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materially untrue or inaccurate such that the conditions to closing set forth in
Section 6.02(a) and 6.03(b), as the case may be, shall not be met and (ii) any
failure of the Company, Parent or Merger Sub, as the case may be, to materially
comply with or satisfy any covenant, condition or agreement to be complied with
or satisfied by it hereunder such that the conditions to closing set forth in
Section 6.02(a) and 6.03(b), as the case may be, shall not be met; provided,
however, that the delivery of any notice pursuant to this Section 5.06 shall not
limit or otherwise affect the remedies available hereunder to the party
receiving such notice and further provided that failure to give such notice
shall not be treated as a breach of covenant for the purposes of Section 6.02(b)
or 6.03(b) unless the failure to give such notice results in material prejudice
to the other party.
SECTION 5.07. Further Assurances; Tax Treatment.
(a) Upon the terms and subject to the conditions hereof, each of the
parties hereto shall use reasonable best efforts to take, or cause to be taken,
all actions and to do, or cause to be done, all other things necessary, proper
or advisable to consummate and make effective as promptly as practicable the
transactions contemplated by this Agreement, to obtain in a timely manner all
necessary waivers, consents and approvals and to effect all necessary
registrations and filings, and to otherwise satisfy or cause to be satisfied all
conditions precedent to its obligations under this Agreement.
(b) Each of Parent, Merger Sub and the Company shall use its best efforts
to cause the Merger to qualify, and will not (both before and after consummation
of the Merger) take any actions which could prevent the Merger from qualifying,
as a reorganization under the provisions of Section 368 of the Code.
(c) Each of Parent, Merger Sub and the Company shall cooperate with each
other in obtaining the opinions of Xxxxxxxx & Xxxxxxxx LLP and Xxxxxx Xxxxxxx
Xxxxxxxx & Xxxxxx Professional Corporation described in Section 6.01(c). In
connection therewith, each of Parent and the Company shall deliver to such
counsel customary representation letters substantially in the form of Exhibit
5.07(c) hereto.
SECTION 5.08. Public Announcements. Parent and the Company shall consult
with each other before issuing any press release with respect to the Merger or
this Agreement and shall not issue any such press release or make any such
public statement without the prior consent of the other party, which shall not
be unreasonably withheld; provided, however, that a party may, without the prior
consent of the other party, issue such press release or make such public
statement as may upon the advice of counsel be required by law or the Nasdaq
National Market if it has used all reasonable efforts to consult with the other
party. Each of Parent and Company shall make all necessary filings with
Governmental or Regulatory Authorities and shall promptly provide the other
party with copies of filings made by such party between the date hereof and the
Effective Time.
SECTION 5.09. Listing of Parent Common Shares. Parent shall use its
commercially reasonable best efforts to cause the shares of Parent Common Shares
to be issued in the Merger to be approved for quotation on the Nasdaq National
Market prior to
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the Effective Time. Parent shall use its commercially reasonable best efforts to
cause shares of Parent Common Stock, when issued upon exercise of Company Stock
Options, to be approved for quotation on the Nasdaq National Market.
SECTION 5.10. Form S-8. Parent shall file with the SEC, no later than 10
days after the Effective Time, a registration statement on Form S-8 relating to
Parent Common Stock issuable pursuant to assumed awards under the Company Stock
Option Plans and the Company's Employee Stock Purchase Plan (the "COMPANY
ESPP").
SECTION 5.11. Conveyance Taxes. Parent and the Company shall cooperate in
the preparation, execution and filing of all returns, questionnaires,
applications, or other documents regarding any real property transfer or gains,
sales, use, transfer, value added, stock transfer and stamp taxes, any transfer,
recording, registration and other fees, and any similar taxes which become
payable in connection with the transactions contemplated hereby that are
required or permitted to be filed on or before the Effective Time.
SECTION 5.12. Director and Officer Liability. From and after the Effective
Time, Parent will cause the Surviving Company to indemnify and hold harmless the
present and former officers and directors of the Company in respect of acts or
omissions occurring prior to the Effective Time to the extent provided under the
Company's certificate of incorporation and bylaws in effect on the date hereof.
For a period of six years after the Effective Time, Parent shall cause to be
maintained in effect the policies of directors' and officers' liability
insurance maintained by the Company for the benefit of those persons who are
covered by such policies at the Effective Time (or Parent and/or the Surviving
Company may substitute therefor policies of at least the same coverage with
respect to matters occurring prior to the Effective Time); provided, however,
that in no event shall Parent and/or the Surviving Company be required to expend
in excess of 150 percent of the annual premium currently paid by the Company for
such coverage, and provided further, that if the premium for such coverage
exceeds such amount, Parent and/or the Surviving Company shall purchase a policy
with the greatest coverage available for such 150 percent of the annual premium.
SECTION 5.13. Action by Parent and Company's Boards. Prior to the
Effective Time, the boards of directors of Parent and the Company shall each
comply as applicable with the provisions of the SEC's no-action letter dated
January 12, 1999 addressed to Skadden, Arps, Slate, Xxxxxxx and Xxxx LLP
relating to Rule l6b of the Exchange Act.
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SECTION 5.14. Composition of the Board of Directors. Parent's board of
directors currently consists of ten members, divided into three classes and the
members of each class of directors serve staggered three-year terms. At the
Effective Time, Parent shall cause (a) the size of its Board of Directors to be
increased to twelve members, and (b) the persons listed on Exhibit 5.14 to be
appointed to Parent's Board of Directors (each to be in such class as shall be
reasonably approved by the Company and Parent) to serve until such time as
successors are duly elected and qualified.
SECTION 5.15. Employee Benefits. Parent agrees that all employees of the
Company and its subsidiaries who continue employment with Parent, the Surviving
Company or any subsidiary thereof after the Effective Time (the "CONTINUING
EMPLOYEES") shall be eligible to participate in Parent's employee benefit plans
and arrangements to the same extent as and on a basis no less favorable than
similarly situated employees of Parent. The Continuing Employees shall be given
credit for service with the Company and its subsidiaries for all purposes under
Parent's employee benefit plans and arrangements. With respect to the Continuing
Employees, Parent shall waive all pre-existing condition limitations in its
health and welfare plans and shall give credit for co-payments, deductibles and
out-of-pocket maximums already incurred by the Continuing Employees under the
Company Employee Plans. Upon the Effective Time, the Parent shall assume the
Company ESPP and each outstanding option thereunder. Each ESPP option so assumed
by Parent shall continue to have, and be subject to the same terms and
conditions set forth in the ESPP, except that (a) the fair market value per
share of Company Common Stock at the beginning of each offering period in effect
as of the Effective Time shall be equal to the fair market value per share of
the Company's Common Stock at the beginning of each such offering period divided
by the Exchange Ratio, rounded up to the nearest whole cent, and (b) no ESPP
option shall be terminated by Parent prior to its normal expiration in
accordance with the terms of the ESPP. In the event that following the
expiration of all ESPP options, Parent terminates the Company ESPP, Continuing
Employees will be eligible to participate in the Parent Employees' Stock
Purchase Plan ("PARENT ESPP") in accordance with the terms and conditions of the
Parent ESPP.
ARTICLE VI.
CONDITIONS TO THE MERGER
SECTION 6.01. Conditions to Obligations of Each Party to Effect the
Merger. The respective obligations of each party to effect the Merger shall be
subject to the satisfaction at or prior to the Effective Time of the following
conditions:
(a) Effectiveness of the Registration Statement. The Registration
Statement shall have been declared effective by the SEC under the Securities
Act. No stop order suspending the effectiveness of the Registration Statement
shall have been issued by the SEC and no proceedings for that purpose and no
similar proceeding in respect of the Company Proxy Statement shall have been
initiated or threatened by the SEC;
(b) No Injunctions or Restraints; Illegality. No temporary restraining
order, preliminary or permanent injunction or other order issued by any court of
competent
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jurisdiction or other legal restraint or prohibition preventing the consummation
of the Merger shall be in effect; and there shall not be any action taken, or
any statute, rule, regulation or order enacted, entered, enforced or deemed
applicable to the Merger, which makes the consummation of the Merger illegal;
(c) Tax Opinions. Parent and the Company shall have received opinions of
Xxxxxxxx & Xxxxxxxx LLP and Xxxxxx Xxxxxxx Xxxxxxxx & Xxxxxx, Professional
Corporation, respectively, in form and substance reasonably satisfactory to
Parent and the Company, respectively, on the basis of certain facts,
representations and assumptions set forth in such opinion, dated the Effective
Time, to the effect that the Merger will be treated for federal income tax
purposes as a reorganization qualifying under the provisions of Section 368(a)
of the Code and that each of Parent, Merger Sub and the Company will be a party
to the reorganization within the meaning of Section 368(b) of the Code;
provided, however, that if the counsel to either Parent or the Company does not
render such opinion this condition shall nonetheless be deemed to be satisfied
with respect to such party if counsel to the other party renders such opinion to
such party;
(d) HSR Act. The waiting period (and any extension thereof) applicable to
the consummation of the Merger under the HSR Act shall have expired or been
terminated and any other applicable waiting period under any other premerger
notification statute of a foreign jurisdiction, to the extent material, has
either expired or been terminated; and
(e) Stockholder Approval. This Agreement and the Merger shall have been
approved and adopted by the requisite vote of the stockholders of the Company.
SECTION 6.02. Additional Conditions to Obligations of Parent and Merger
Sub. The obligations of Parent and Merger Sub to effect the Merger are also
subject to the following conditions:
(a) Representations and Warranties. The representations and warranties of
the Company contained in this Agreement shall be true and correct on and as of
the Effective Time, except (i) for changes contemplated by this Agreement, (ii)
those representations and warranties which address matters only as of a
particular date (which shall remain true and correct as of such date (subject to
the qualifications in clause (iii) below)); and (iii) where the failure of such
representations and warranties to be so true and correct (without giving effect
to any limitation as to "materiality" or "material adverse effect" set forth
therein) would not have a Company Material Adverse Effect, with the same force
and effect as if made on and as of the Effective Time, and Parent and Merger Sub
shall have received a certificate to such effect signed by the President and
Chief Financial Officer of the Company;
(b) Agreements and Covenants. The Company shall have performed or complied
in all material respects with all agreements and covenants required by this
Agreement to be performed or complied with by it on or prior to the Effective
Time, and Parent and Merger Sub shall have received a certificate to such effect
signed by the President and Chief Financial Officer of the Company;
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(c) Material Adverse Effect. Since the date of this Agreement, there shall
not have occurred a Company Material Adverse Effect.
SECTION 6.03. Additional Conditions to Obligation of the Company. The
obligation of the Company to effect the Merger is also subject to the following
conditions:
(a) Representations and Warranties. The representations and warranties of
Parent and Merger Sub contained in this Agreement shall be true and correct on
and as of the Effective Time, except (i) for changes contemplated by this
Agreement, (ii) those representations and warranties which address matters only
as of a particular date (which shall remain true and correct as of such date
(subject to the qualifications in clause (iii) below)), and (iii) where the
failure of such representations and warranties to be so true and correct
(without giving effect to any limitation as to "materiality" or "material
adverse effect" set forth therein) would not have, individually or in the
aggregate, a Parent Material Adverse Effect, with the same force and effect as
if made on and as of the Effective Time, and the Company shall have received a
certificate to such effect signed by the President and Chief Financial Officer
of Parent;
(b) Agreements and Covenants. Parent and Merger Sub shall have performed
or complied in all material respects with all agreements and covenants required
by this Agreement to be performed or complied with by them on or prior to the
Effective Time, and the Company shall have received a certificate to such effect
signed by the President and Chief Financial Officer of Parent;
(c) Material Adverse Effect. Since the date of this Agreement, there shall
not have been a Parent Material Adverse Effect.
ARTICLE VII.
TERMINATION
SECTION 7.01. Termination. This Agreement may be terminated at any time
prior to the Effective Time, notwithstanding approval thereof by the
stockholders of the Company:
(a) by mutual written consent duly authorized by the boards of directors
of Parent and the Company; or
(b) by either Parent or the Company if the Merger shall not have been
consummated by October 31, 2000 (the "FINAL DATE") (provided that the right to
terminate this Agreement under this Section 7.01(b) shall not be available to
any party whose failure to fulfill any obligation under this Agreement has been
a principal cause of or resulted in the failure of the Merger to occur on or
before such date and such action or failure to act constitutes a material breach
of this Agreement); or
(c) by either Parent or the Company if a court of competent jurisdiction
or governmental, regulatory or administrative agency or commission shall have
issued a non-appealable final order, decree or ruling or taken any other action,
in each case having
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the effect of permanently restraining, enjoining or otherwise prohibiting the
Merger, except if the party relying on such order, decree or ruling or other
action has not complied with its obligations under Sections 5.04 and 5.07; or
(d) by Parent or the Company if, at the Company Stockholders' Meeting
(including any adjournment or postponement thereof), the requisite vote of the
stockholders of the Company as required by the DGCL (the "REQUISITE Vote") shall
not have been obtained; provided, however, that the right to terminate this
Agreement under this Section 7.01(d) shall not be available to the Company where
the failure to obtain the Requisite Vote shall have been caused by the Company's
breach of this Agreement (subject solely to any actions taken by the Company in
connection with a Superior Proposal to the extent permitted by and pursuant to
Section 4.03(a)); or
(e) by Parent, if (i) the board of directors of the Company shall
withdraw, modify or change its recommendation of this Agreement or the Merger in
a manner adverse to Parent or shall have resolved to do any of the foregoing;
(ii) the board of directors of the Company shall have recommended to the
stockholders of the Company an Alternative Transaction (as defined in Section
7.03(d)); or (iii) a tender offer or exchange offer for 15% or more of the
outstanding shares of Company Common Stock is commenced (other than by Parent or
an affiliate of Parent), and the board of directors of the Company recommends
that the stockholders of the Company tender their shares in such tender or
exchange offer;
(f) by the Company, prior to the receipt of the Requisite Vote, if the
Company receives, without violating its obligations under Section 4.03 hereof, a
Superior Proposal; provided that in order for the termination of this Agreement
to be deemed effective pursuant to this paragraph (f), the Company shall have
complied with all its obligations under Section 4.03 hereof and with applicable
requirements of Section 7.03 hereof, including payment of the Fee Payable By
Company (as defined in Section 7.03(b) hereof) pursuant to Section 7.03(b)
hereof;
(g) by Parent or the Company, upon a material breach of any
representation, warranty, covenant or agreement on the part of the Company or
Parent, respectively, set forth in this Agreement such that the conditions set
forth in Section 6.02(a) or 6.02(b), or Section 6.03(a) or 6.03(b), would not be
satisfied, provided, that if such breach is curable through the exercise of
commercially reasonable efforts, then the other party may not terminate pursuant
to this Section 7.01(g) in respect of such breach if such breach is curable and
shall have been cured within 30 days following notice by the other party of such
breach, provided the breaching party continues to use commercially reasonable
efforts to cure such breach during the 30 day period (it being understood that
(i) the other party may not terminate this Agreement pursuant to this Section
7.01(g) after notice of such breach if such breach shall have been cured within
30 days or the party seeking to terminate shall then be in material breach of
this Agreement and (ii) no cure period shall be required for a breach which by
its nature cannot be cured).
SECTION 7.02. Effect of Termination. In the event of the termination of
this Agreement pursuant to Section 7.01, this Agreement shall forthwith become
void and
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there shall be no liability on the part of any party hereto or any of its
affiliates, directors, officers or stockholders except (i) as set forth in
Sections 7.03 and 8.01 hereof, and (ii) nothing herein shall relieve any party
from liability for any willful breach hereof.
SECTION 7.03. Fees and Expenses.
(a) Except as set forth in this Section 7.03, (i) all fees and expenses
incurred in connection with this Agreement and the transactions contemplated
hereby shall be paid by the party incurring such expenses, if the Merger is not
consummated, or (ii) if the Merger is consummated, then the Surviving Company
shall pay all such fees and expenses; provided however, that Parent and the
Company shall share equally all fees and expenses, other than attorneys' fees,
incurred in relation to the printing and filing of the Company Proxy Statement
(including any preliminary materials related thereto) and the Registration
Statement (including financial statements and exhibits) and any amendments or
supplements thereto.
(b) The Company shall pay Parent a fee of $350 million in cash (the "FEE
PAYABLE BY COMPANY"), less the Expenses (as defined in Section 7.03(c) hereof)
to the extent that the Expenses have already been paid to Parent pursuant to
Section 7.03(c) hereof, upon the earliest to occur of the following events:
(i) the termination by Parent or the Company pursuant to Section
7.01(d); provided, that an Alternative Transaction has been publicly
announced at or prior to the time the Requisite Vote is sought to be
obtained and either: (i) such proposed Alternative Transaction has not
been withdrawn by the Third Party (as defined below) or otherwise
affirmatively rejected by the Board of Directors of the Company; or (ii)
notwithstanding the withdrawal and/or rejection of such Alternative
Transaction as provided in the foregoing clause (i), an Alternative
Transaction with such Third Party is consummated within twelve (12) months
of the date the Requisite Vote is sought to be obtained as provided above;
or
(ii) the termination of this Agreement by Parent pursuant to Section
7.01(e); or
(iii) the termination of this Agreement by Company pursuant to
Section 7.01(f).
(c) The Company shall pay Parent an amount equal to $15 million, which the
parties agree represents a reasonable estimate of the out-of-pocket expenses
that Parent will incur in connection with the transactions contemplated by this
Agreement and which amount shall represent the entire amount that Parent is
entitled to receive with respect to such expenses, including, but not limited
to, fees and expenses of Parent's counsel, accountants and financial advisers
(the "EXPENSES") upon the termination by Parent or the Company pursuant to
Section 7.01(d) if payment of the Fee Payable By Company is not required in
connection with such termination by Section 7.03(b)(i) above.
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(d) As used herein, "ALTERNATIVE TRANSACTION" means any of the following:
(i) transaction pursuant to which any person (or group of persons) other than
Parent or its affiliates (a "THIRD PARTY") seeks to acquire, directly or
indirectly, more than 25 percent of the outstanding Shares, whether from the
Company or pursuant to a tender offer or exchange offer or otherwise, (ii) a
merger or other business combination involving the Company pursuant to which any
Third Party acquires more than 25 percent of the outstanding equity securities
of the Company or the entity surviving such merger or business combination,
(iii) any other transaction pursuant to which any Third Party acquires control
of all or substantially all of the assets of the Company (including for this
purpose the outstanding equity securities of the Company's subsidiaries), (iv)
the adoption by the Company of a plan of liquidation, the declaration or payment
by the Company of an extraordinary dividend on any of its shares of capital
stock or the effectuation by the Company of a recapitalization or other type of
transaction that would involve either a change in the Company's outstanding
capital stock or a distribution of assets of any kind to the holders of such
capital stock or (v) the repurchase by the Company or any of its subsidiaries of
shares of the Company's capital stock representing at least 25 percent or more
of the aggregate voting power of all voting securities of the Company; provided,
however, that the term Alternative Transaction shall not include any acquisition
of securities by a broker dealer in connection with a bona fide public offering
of such securities.
(e) Parent shall pay the Company a fee of $100 million (the "FEE PAYABLE
BY PARENT") upon a termination of this Agreement pursuant to Section 7.01(b);
provided that the Fee Payable by Parent shall not be payable if either (i) any
of the conditions set forth in Section 6.02 is not satisfied as of the Final
Date; or (ii) the failure to effect the Closing prior to the Final Date is not
solely the result of the failure of any of the conditions set forth in Sections
6.01(c), 6.01(e) or 6.03 hereof.
(f) (i) The Fee Payable By Company payable pursuant to Section 7.03(b)(ii)
and 7.03(b)(iii) hereof, Expenses payable pursuant to Section 7.03(c) hereof, or
the Fee Payable By Parent payable pursuant to Section 7.03(e) hereof shall be
paid within one business day after the termination of the Agreement.
(ii) The Fee Payable By Company payable pursuant to Section
7.03(b)(i) hereof shall be paid within one business day after the later of (x)
the termination of the Agreement and (y) the date on which the contingencies
described in Section 7.03(b)(i) shall have been satisfied.
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ARTICLE VIII.
GENERAL PROVISIONS
SECTION 8.01. Effectiveness of Representations, Warranties and Agreements;
Knowledge, Etc.
(a) Except as otherwise provided in this Section 8.01, the
representations, warranties and agreements of each party hereto shall remain
operative and in full force and effect regardless of any investigation made by
or on behalf of any other party hereto, any person controlling any such party or
any of their officers or directors, whether prior to or after the execution of
this Agreement. The representations, warranties and agreements in this Agreement
shall terminate at the Effective Time or upon the termination of this Agreement
pursuant to Section 7.01(a) through (g), as the case may be, except that the
agreements set forth in Article I, Section 5.07(b) and Section 5.11 shall
survive the Effective Time indefinitely and the agreements and liabilities set
forth or otherwise described in Section 7.03 shall survive termination
indefinitely. The Confidentiality Agreement shall survive termination of this
Agreement as provided therein.
(b) Any disclosure made with reference to one or more Sections of the
Company Disclosure Schedule or the Parent Disclosure Schedule shall be deemed
disclosed with respect to each other section therein as to which such disclosure
is relevant provided that such relevance is reasonably apparent.
SECTION 8.02. 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 or mailed if delivered personally or 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 which shall be effective upon
receipt):
(a) If to Parent or Merger Sub:
JDS Uniphase Corporation
000 Xxxxxxxxx Xxxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxxxx
Facsimile No.: (000) 000-0000
Telephone No.: (000) 000-0000
With copies to:
Xxxxxxxx & Xxxxxxxx LLP
000 Xxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
Attention: Xxxx X. Xxxxxxxx
Fax: (000) 000-0000
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Telephone No.: (000) 000-0000
(b) If to the Company:
E-TEK Dynamics, Inc.
0000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxxx X. Xxxxxx
Fax: (000) 000-0000
Telephone No.: (000) 000-0000
With copies to:
Xxxxxx Xxxxxxx Xxxxxxxx & Xxxxxx
Professional Corporation
000 Xxxx Xxxx Xxxx
Xxxx Xxxx, XX 00000
Attention: Xxxxx X. Xxxxxxx
Xxxxxx X. Xxxx
Fax: (000) 000-0000
Telephone No.: (000) 000-0000
SECTION 8.03. Certain Definitions. For purposes of this Agreement, the
term:
(a) "AFFILIATES" means a person that directly or indirectly, through one
or more intermediaries, controls, is controlled by, or is under common control
with, the first mentioned person;
(b) "BUSINESS DAY" means any day other than a day on which banks in San
Francisco are required or authorized to be closed;
(c) "CONTROL" (including the terms "CONTROLLED BY" and "UNDER COMMON
CONTROL WITH") means the possession, directly or indirectly or as trustee or
executor, of the power to direct or cause the direction of the management or
policies of a person, whether through the ownership of stock, as trustee or
executor, by contract or credit arrangement or otherwise;
(d) "KNOWLEDGE" means, in the case of Parent, the actual knowledge of
Parent's Chief Executive Officer, Chief Operating Officer, Chief Financial
Officer and General Counsel after reasonable inquiry, and, in the case of the
Company, the actual knowledge of the Company's Chief Executive Officer,
Director, Strategy and Business Development, Chief Financial Officer and General
Counsel after reasonable inquiry;
(e) "PERSON" means an individual, corporation, partnership, association,
trust, unincorporated organization, other entity or group (as defined in Section
13(d)(3) of the Exchange Act); and
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(f) "SUBSIDIARY" or "SUBSIDIARIES" of the Company, the Surviving Company,
Parent or any other person means (i) a corporation or other entity in which the
Company, the Surviving Company, Parent or such other person, as the case may be,
owns, directly or indirectly, 50% or more of the shares of capital stock or
other securities having ordinary voting power to elect the board of directors or
any similar governing body or (ii) any partnership, limited liability company or
other unincorporated entity of which the Company, the Surviving Company, Parent
or such other person, as the case may be, is the general partner or of which it
owns, directly or indirectly, securities or other ownership interests which
entitle them to receive more than 50% of the distributions made by such
partnership, limited liability company or other entity.
SECTION 8.04. Amendment. This Agreement may be amended by the parties
hereto by action taken by or on behalf of their respective boards of directors
at any time prior to the Effective Time; provided, however, that, after approval
of the Merger by the stockholders of the Company, no amendment may be made which
by law requires further approval by such stockholders without such further
approval. This Agreement may not be amended except by an instrument in writing
signed by the parties hereto.
SECTION 8.05. Waiver. At any time prior to the Effective Time, any party
hereto may with respect to any other party hereto (a) extend the time for the
performance of any of the obligations or other acts, (b) waive any inaccuracies
in the representations and warranties contained herein or in any document
delivered pursuant hereto and (c) waive compliance with any of the agreements or
conditions contained herein. Any such extension or waiver shall be valid if set
forth in an instrument in writing signed by the party or parties to be bound
thereby.
SECTION 8.06. Headings. 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.
SECTION 8.07. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner
adverse to any party. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the extent possible.
SECTION 8.08. Entire Agreement. This Agreement (including the documents
and instruments referred to herein) constitute the entire agreement and
supersede all prior agreements and undertakings (other than the Stock Option
Agreement and the Confidentiality Agreement), both written and oral, among the
parties, or any of them, with respect to the subject matter hereof and, except
as otherwise expressly provided herein, are not intended to confer upon any
other person any rights or remedies hereunder.
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SECTION 8.09. Assignment, Merger Sub. This Agreement shall not be assigned
by operation of law or otherwise, except that Parent and Merger Sub may assign
all or any of their rights hereunder to any affiliate provided that no such
assignment shall relieve the assigning party of its obligations hereunder.
SECTION 8.10. Parties in Interest. 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 any right, benefit or remedy of any nature whatsoever under or by reason
of this Agreement, except as provided in Sections 5.12 and 5.14 hereof.
SECTION 8.11. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the internal laws of the State of Delaware
applicable to contracts executed and fully performed within the State of
Delaware, without regard to the conflicts of laws provisions thereof.
SECTION 8.12. Counterparts. This Agreement may be executed in one or more
counterparts, and by the different parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement.
SECTION 8.13. WAIVER OF JURY TRIAL. EACH OF PARENT, MERGER SUB AND THE
COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL
RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER
BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.
[SIGNATURE PAGE FOLLOWS]
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IN WITNESS WHEREOF, Parent, Merger Sub and the Company have caused this
Agreement and Plan of Reorganization and Merger to be executed as of the date
first written above by their respective officers thereunto duly authorized.
PARENT
By: /s/ XXXXXXX X. XXXXXXXX
-------------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: Senior Vice President,
Business Development, General Counsel
MERGER SUB
By: /s/ XXXXXXXXXXX X. XXXXXX
-------------------------------------
Name: Xxxxxxxxxxx X. Xxxxxx
Title: President, Treasurer and Secretary
COMPANY
By: /s/ XXXXXXX X. XXXXXXXXXXX
-------------------------------------
Name: Xxxxxxx X. Xxxxxxxxxxx
Title: Chairman of the Board,
President and Chief Executive Officer
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