EXHIBIT 2.1
AGREEMENT
AND PLAN OF MERGER
dated as
of October 6, 2010
among
XXXXXXX &
XXXXX, INC.,
T-3
ENERGY SERVICES, INC.,
TRIPLE
MERGER I, INC.
and
TRIPLE
MERGER II, INC.
TABLE OF
CONTENTS
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ARTICLE I
THE MERGER
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Section 1.01
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The Merger
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1
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Section 1.02
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Closing
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1
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Section 1.03
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Effective Time
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2
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Section 1.04
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Effects
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2
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Section 1.05
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Second Merger
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2
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Section 1.06
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Certificate of Incorporation and Bylaws
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2
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Section 1.07
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Board of Directors and Officers of Surviving Entity
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2
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ARTICLE II
EFFECT ON THE STOCK OF THE CONSTITUENT CORPORATIONS; MERGER
CONSIDERATION; EXCHANGE OF CERTIFICATES
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Section 2.01
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Effect on Stock
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3
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Section 2.02
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Appraisal Rights
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3
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Section 2.03
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Exchange of Certificates; Book-Entry Shares
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4
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ARTICLE III
REPRESENTATIONS AND WARRANTIES OF T-3
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Section 3.01
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Organization, Standing and Power
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6
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Section 3.02
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T-3 Subsidiaries
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7
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Section 3.03
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Capital Structure
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7
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Section 3.04
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Authority; Execution and Delivery; Enforceability
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8
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Section 3.05
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No Conflicts; Consents
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8
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Section 3.06
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SEC Documents; Undisclosed Liabilities
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9
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Section 3.07
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Information Supplied
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11
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Section 3.08
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Absence of Certain Changes or Events
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11
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Section 3.09
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Taxes
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12
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Section 3.10
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Benefits Matters; ERISA Compliance
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13
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Section 3.11
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Litigation
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15
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Section 3.12
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Compliance with Applicable Laws
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15
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Section 3.13
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Environmental Matters
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16
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Section 3.14
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Contracts
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16
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Section 3.15
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Properties
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17
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Section 3.16
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Intellectual Property
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17
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Section 3.17
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Labor Matters
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17
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Section 3.18
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Customers and Suppliers
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18
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Section 3.19
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Product Warranty and Product Liability
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18
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Section 3.20
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Certain Business Practices
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18
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Section 3.21
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Inventory
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19
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Section 3.22
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Brokers’ Fees and Expenses
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19
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Section 3.23
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Opinion of Financial Advisor
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19
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Section 3.24
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No Other Representations or Warranties
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19
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i
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ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF R&M, MERGER SUB AND
MERGER SUB II
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Section 4.01
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Organization, Standing and Power
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19
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Section 4.02
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R&M Subsidiaries
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20
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Section 4.03
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Capital Structure
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20
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Section 4.04
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Authority; Execution and Delivery; Enforceability
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21
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Section 4.05
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No Conflicts; Consents
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22
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Section 4.06
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SEC Documents; Undisclosed Liabilities
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23
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Section 4.07
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Information Supplied
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24
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Section 4.08
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Absence of Certain Changes or Events
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25
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Section 4.09
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Taxes
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26
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Section 4.10
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Benefits Matters; ERISA Compliance
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27
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Section 4.11
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Litigation
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29
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Section 4.12
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Compliance with Applicable Laws
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29
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Section 4.13
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Environmental Matters
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29
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Section 4.14
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Contracts
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30
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Section 4.15
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Properties
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30
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Section 4.16
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Intellectual Property
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31
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Section 4.17
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Labor Matters
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31
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Section 4.18
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Certain Business Practices
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31
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Section 4.19
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Brokers’ Fees and Expenses
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32
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Section 4.20
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Opinion of Financial Advisor
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32
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Section 4.21
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Merger Sub and Merger Sub II
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32
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Section 4.22
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Sufficient Funds
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32
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Section 4.23
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No Other Representations or Warranties
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32
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ARTICLE V
COVENANTS RELATING TO CONDUCT OF BUSINESS
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Section 5.01
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Conduct of Business
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32
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Section 5.02
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No Solicitation by T-3; T-3 Board Recommendation
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38
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Section 5.03
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No Solicitation by R&M; R&M Board Recommendation
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40
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ARTICLE VI
ADDITIONAL AGREEMENTS
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Section 6.01
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Preparation of the
Form S-4
and the Joint Proxy Statement; Meetings
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42
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Section 6.02
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Access to Information; Confidentiality
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44
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Section 6.03
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Required Actions
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44
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Section 6.04
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Stock Awards
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45
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Section 6.05
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T-3 Warrants
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46
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Section 6.06
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Indemnification, Exculpation and Insurance
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46
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Section 6.07
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Fees and Expenses
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48
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Section 6.08
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Certain Tax Matters
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48
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Section 6.09
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Transaction Litigation
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48
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Section 6.10
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Public Announcements
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48
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Section 6.11
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Stock Exchange Listing
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49
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Section 6.12
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Employee Matters
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49
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Section 6.13
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Obligations of Merger Sub and Merger Sub II
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49
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ii
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Section 6.14
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Reasonable Best Efforts
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49
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Section 6.15
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Investigation; No Other Representations or Warranties
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50
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Section 6.16
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Section 16(b) Matters
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51
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ARTICLE VII
CONDITIONS PRECEDENT
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Section 7.01
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Conditions to Each Party’s Obligation to Effect the Merger
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51
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Section 7.02
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Conditions to Obligations of T-3
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52
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Section 7.03
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Conditions to Obligation of R&M
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52
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ARTICLE VIII
TERMINATION, AMENDMENT AND WAIVER
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Section 8.01
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Termination
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53
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Section 8.02
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Effect of Termination
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54
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Section 8.03
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Amendment
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56
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Section 8.04
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Extension; Waiver
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56
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Section 8.05
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Procedure for Termination, Amendment, Extension or Waiver
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56
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ARTICLE IX
GENERAL PROVISIONS
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Section 9.01
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Nonsurvival of Representations and Warranties
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56
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Section 9.02
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Notices
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56
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Section 9.03
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Definitions
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57
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Section 9.04
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Interpretation
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64
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Section 9.05
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Severability
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64
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Section 9.06
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Counterparts
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64
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Section 9.07
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Entire Agreement; No Third-Party Beneficiaries
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65
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Section 9.08
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Governing Law
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65
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Section 9.09
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Assignment
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65
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Section 9.10
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Specific Enforcement
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65
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Section 9.11
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Waiver of Jury Trial
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65
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Exhibit A
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Form of Certificate of Incorporation of Surviving Entity
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Exhibit B
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Form of Bylaws of Surviving Entity
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iii
AGREEMENT
AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this
“
Agreement”) is made as of October 6,
2010, among XXXXXXX & XXXXX, INC., an
Ohio corporation
(“
R&M”), T-3 ENERGY SERVICES, INC., a
Delaware corporation (“
T-3”), TRIPLE
MERGER I, INC., a Delaware corporation and wholly-owned
subsidiary of R&M (“
Merger Sub”), and
TRIPLE MERGER II, INC., a Delaware corporation and wholly-owned
subsidiary of R&M (“
Merger Sub II”).
Unless otherwise indicated, capitalized terms used in this
Agreement shall have the respective meanings set forth in
Section 9.03 of this Agreement.
A. The Board of Directors of T-3 (the “T-3
Board”) has approved this Agreement and determined that
the Merger on the terms set forth in this Agreement is advisable
and in the best interests of its stockholders and has
recommended that its stockholders approve the Merger (as
hereinafter defined) on the terms set forth in this Agreement.
B. If the Aggregate Stock Consideration Closing Value is
less than 80% of the Aggregate Reorganization Consideration
Closing Value, or if any holder of shares of T-3 Common Stock
exercises appraisal rights pursuant to Section 2.02, then
as provided in Section 1.05, after the Merger, T-3 will
merge with and into Merger Sub II.
C. The Board of Directors of R&M (the
“R&M Board”) has approved this Agreement
and the Merger and has recommended that its shareholders approve
the issuance of R&M Common Shares in the Merger and the
transactions related to the Merger on the terms set forth in
this Agreement. The Boards of Directors of Merger Sub and Merger
Sub II have approved this Agreement, the Merger and the
Second Merger (if required pursuant to Section 1.05) and
the sole stockholder of each entity has adopted this Agreement
and approved the Merger and the Second Merger on the terms set
forth in this Agreement.
D. Contemporaneously with the execution of this Agreement,
M.H.M. & Co. Ltd., R&M and T-3 are entering into a
Voting Agreement (the “Voting Agreement”),
pursuant to which M.H.M. & Co. Ltd. has agreed, among other
things, to vote its R&M Common Shares for approval of the
Merger and the other transactions contemplated hereby, including
the Share Issuance, subject to the terms set forth in the Voting
Agreement.
E. For federal income Tax purposes, the parties intend
that: (i) if the Second Merger occurs, the Merger and the
Second Merger, taken together constitute a single integrated
plan in the manner described in Revenue Ruling
2001-46, and
shall qualify as a reorganization described in
Section 368(a)(2)(D) of the Code, and this Agreement shall
constitute a “plan of reorganization” for the purposes
of Sections 354 and 361 of the Code, and (ii) if the
Second Merger does not occur because the Second Merger is not
required by Section 1.05, the Merger will qualify as a
reorganization described in Section 368(a)(2)(E) of the
Code and this Agreement shall constitute a “plan of
reorganization” for the purposes of Sections 354 and
361 of the Code (collectively, the “Intended Tax
Treatment”).
NOW, THEREFORE, in consideration of the foregoing, the parties
hereto agree as follows:
ARTICLE I
THE
MERGER
Section 1.01 The
Merger. On the terms and subject to the
conditions set forth in this Agreement, and in accordance with
the Delaware General Corporation Law (the
“DGCL”), on the Closing Date, Merger Sub shall
be merged with and into T-3 (the “Merger”), the
separate corporate existence of Merger Sub shall cease and T-3
shall continue as the corporation surviving the Merger (the
“Intermediate Surviving Entity” and, if there
is no Second Merger as provided in Section 1.05, the
“Surviving Entity”).
Section 1.02 Closing. The
closing of the Merger (the “Closing”) shall
take place at the offices of Xxxxxx & Xxxxxx L.L.P.,
2500 First City Tower, 0000 Xxxxxx Xxxxxx, Xxxxxxx, Xxxxx 00000
at 10:00 a.m., New York City time, on a date to be
specified by T-3 and R&M, which shall be no later than the
second Business Day following the satisfaction or (to the extent
permitted by Law) waiver by the party or parties entitled to the
benefits thereof of the conditions set forth in Article VII
(other than those conditions that by their nature are to be
satisfied at the Closing, but subject to the satisfaction or (to
the extent permitted by Law) waiver of those conditions), or at
such other place, time and date as shall be agreed in writing
between T-3 and R&M; provided, however, that
if all the conditions set forth in Article VII shall not
have been satisfied or (to the extent permitted by Law) waived
on such second Business Day, then the Closing shall take place
on the first Business Day thereafter on which all such
conditions shall have been satisfied or (to the extent permitted
by Law) waived. The date on which the Closing occurs is referred
to in this Agreement as the “Closing Date.”
Section 1.03 Effective
Time. Subject to the provisions of this
Agreement, as soon as practicable on the Closing Date, the
parties shall file with the Secretary of State of Delaware (the
“Delaware Secretary of State”) a certificate of
merger relating to the Merger (the “Certificate of
Merger”), executed and acknowledged in accordance with
the relevant provisions of the DGCL, and all other filings
required under the DGCL in connection with the Merger. The
Merger shall become effective at the time that the Certificate
of Merger has been duly filed with and accepted by the Delaware
Secretary of State (the time the Merger becomes effective being
the “Effective Time”).
Section 1.04 Effects. The
Merger shall have the effects set forth in this Agreement and
the applicable provisions of the DGCL.
Section 1.05 Second
Merger. If the Aggregate Stock Consideration
Closing Value is less than 80% of the Aggregate Reorganization
Consideration Closing Value or if any holder of shares of T-3
Common Stock exercises appraisal rights pursuant to
Section 2.02, then on a date which is not later than
15 days after the day on which the Effective Time occurs,
T-3 shall be merged with and into Merger Sub II (the
“Second Merger”) , Merger Sub II shall
continue as the Surviving Entity surviving the Second Merger and
all of the rights and obligations of the Surviving Entity under
this Agreement shall be deemed to be the rights and obligations
of Merger Sub II, as the Surviving Entity. In the Second Merger,
each outstanding share of common stock of the Intermediate
Surviving Entity automatically shall be cancelled and shall no
longer be outstanding and shall cease to exist, and each
outstanding member interest of Merger Sub II issued and
outstanding immediately prior to the Effective Date shall remain
outstanding and shall not be effected by the Second Merger. The
Second Merger shall have the effects set forth in this Agreement
and the applicable provisions of the DGCL.
Section 1.06 Certificate
of Incorporation and Bylaws. At the Effective
Time: (a) the certificate of incorporation of T-3 shall be
amended and restated in its entirety as set forth on
Exhibit A, which shall be the certificate of
incorporation of the Intermediate Surviving Entity until
thereafter changed or amended as provided therein or by
applicable Law or this Agreement (the “Surviving Entity
Certificate”), and (b) the bylaws of T-3 shall be
amended and restated in their entirety as set forth on
Exhibit B, which shall be the bylaws of the
Intermediate Surviving Entity until thereafter amended in
accordance with their terms and conditions (the
“Surviving Entity Bylaws”). If the Second
Merger occurs as provided in Section 1.05, effective as of
the effective time of the Second Merger: (i) the
certificate of incorporation of the Surviving Entity shall be
amended and restated in its entirety to be in the form of the
Surviving Entity Certificate, and (ii) the bylaws of the
Surviving Entity shall be amended and restated in their entirety
to be in the form of the Surviving Entity Bylaws.
Section 1.07 Board
of Directors and Officers of Surviving
Entity. The directors of Merger Sub
immediately prior to the Effective Time shall become the
directors of the Intermediate Surviving Entity as of the
Effective Time until the earlier of their resignation or removal
or their respective successors have been duly elected and
qualified. The officers of T-3 immediately prior to the
Effective Time shall continue as the officers of the
Intermediate Surviving Entity immediately following the
Effective Time until the earlier of their resignation or removal
or until their respective successors are duly appointed and
qualified. If the Second Merger occurs as provided in
Section 1.05, effective as of the effective time of the
Second Merger, the directors and officers of the Intermediate
Surviving Entity as of the Effective Time shall become the
directors and officers, respectively, of the Surviving Entity,
in each case until the earlier of their resignation or removal
or until their respective successors has been duly elected or
appointed and qualified.
2
ARTICLE II
EFFECT ON
THE STOCK OF THE CONSTITUENT CORPORATIONS; MERGER
CONSIDERATION;
EXCHANGE OF CERTIFICATES
Section 2.01 Effect
on Stock. At the Effective Time, by virtue of
the Merger and without any action on the part of T-3, R&M,
Merger Sub or the holder of any shares of T-3 Common Stock or
any shares of Merger Sub Common Stock:
(a) Conversion of Merger Sub Common
Stock. Each share of common stock, par value
$0.01 per share, of Merger Sub (the “Merger Sub Common
Stock”), issued and outstanding immediately prior to
the Effective Time shall be converted into and become one fully
paid and nonassessable share of common stock, par value $0.01
per share, of the Surviving Entity with the same rights, powers
and privileges as the shares so converted and shall constitute
the only outstanding shares of stock of the Surviving Entity.
From and after the Effective Time, all certificates representing
shares of Merger Sub Common Stock, if any, shall be deemed for
all purposes to represent the number of shares of common stock
of the Surviving Entity into which they were converted in
accordance with the immediately preceding sentence.
(b) Cancellation of R&M-Owned
Stock. Each share of common stock, par value
$0.001 per share, of T-3 (the “T-3 Common
Stock”) that is owned by R&M, Merger Sub or Merger
Sub II immediately prior to the Effective Time shall no
longer be outstanding and shall automatically be canceled and
shall cease to exist, and no consideration shall be delivered in
exchange therefor.
(c) Conversion of T-3 Common
Stock. Subject to Sections 2.01(b) and
2.03(f), each share of T-3 Common Stock issued and outstanding
immediately prior to the Effective Time (including any
outstanding T-3 Restricted Shares that fully vest as
unrestricted T-3 Common Stock pursuant to
Section 6.04(a)(ii), but excluding any Appraisal Shares)
shall be converted into the right to receive: (i) $7.95 in
cash without interest (the “Cash
Consideration”), plus (ii) 0.894 fully paid and
nonassessable R&M Common Shares (the “Stock
Consideration” and, collectively with the Cash
Consideration, the “Merger Consideration”). All
such shares of T-3 Common Stock, when so converted, shall no
longer be outstanding and shall automatically be canceled and
shall cease to exist, and each holder of a certificate that
immediately prior to the Effective Time represented any such
shares of T-3 Common Stock (each, a
“Certificate”) and each holder of shares of T-3
Common Stock held in book-entry form shall, in each case, cease
to have any rights with respect thereto, except the right to
receive the Merger Consideration and any cash in lieu of
fractional R&M Common Shares to be issued or paid in
consideration therefor and any dividends or other distributions
to which holders become entitled in accordance with
Section 2.03, without interest. The right of any holder of
T-3 Common Stock to receive the Merger Consideration shall be
subject in all cases to the provisions of Section 2.03, and
in accordance therewith shall be subject to and reduced by the
amount of any withholding under applicable Tax Law.
(d) Notwithstanding Section 2.01(c), if between the
date of this Agreement and the Effective Time the outstanding
R&M Common Shares or T-3 Common Stock shall have been
changed into a different number of shares or a different class,
by reason of any stock dividend, subdivision, reclassification,
recapitalization, split, combination or exchange of shares, or
any similar event shall have occurred, then any number or amount
contained in this Agreement which is based upon the number of
R&M Common Shares or shares of T-3 Common Stock, as the
case may be (including, without limitation, the Merger
Consideration, the Stock Consideration and the Option Exchange
Ratio), will be appropriately adjusted to provide to R&M
and the holders of T-3 Common Stock and vested T-3 Stock Options
that are not exercised prior to the Effective Time the same
economic effect as contemplated by this Agreement prior to such
event.
Section 2.02 Appraisal
Rights. Notwithstanding anything in this
Agreement to the contrary, shares of T-3 Common Stock issued and
outstanding immediately prior to the Effective Time (excluding
any shares described in Section 2.01(b)) that are held by
any record holder who is entitled to demand and properly demands
appraisal of such shares pursuant to, and who complies in all
respects with, the provisions of Section 262 of the DGCL
(the “Appraisal Shares”) shall not be converted
into the right to receive the Merger
3
Consideration payable pursuant to Section 2.01(c), but
instead at the Effective Time the holders of Appraisal Shares
shall become entitled to payment of the fair value of such
shares in accordance with the provisions of Section 262 of
the DGCL and at the Effective Time, all Appraisal Shares shall
cease to be outstanding and shall automatically be canceled and
cease to exist and the holder of such shares shall cease to have
any rights with respect thereto, except as set forth in this
Section 2.02. Notwithstanding the foregoing, if any such
holder shall fail to perfect or otherwise shall waive, withdraw
or lose the right to appraisal under Section 262 of the
DGCL or a court of competent jurisdiction shall determine that
such holder is not entitled to the relief provided by
Section 262 of the DGCL, then the right of such holder to
be paid the fair value of such holder’s Appraisal Shares
under Section 262 of the DGCL shall be forfeited and cease
and each of such holder’s Appraisal Shares shall be deemed
to have been converted at the Effective Time into, and shall
have become, the right to receive, without interest thereon, the
Merger Consideration. T-3 shall deliver prompt notice to
R&M of any demands for appraisal of any shares of T-3
Common Stock, attempted withdrawals of such demands and any
other instruments served pursuant to the DGCL that are received
by T-3 for appraisal of any shares of T-3 Common Stock, and
provide R&M with the opportunity to participate in and
control all negotiations and proceedings with respect to demands
for appraisal under the DGCL. Prior to the Effective Time, T-3
shall not, without the prior written consent of R&M, make
any payment with respect to, or settle or offer to settle, any
such demands, or agree to do any of the foregoing. Any amount
payable to any holder of Appraisal Shares exercising appraisal
rights shall be paid in accordance with the DGCL by R&M.
Section 2.03 Exchange
of Certificates; Book-Entry
Shares. (a) Exchange
Agent. Prior to the Effective Time, R&M
shall appoint a bank or trust company reasonably acceptable to
T-3 to act as exchange and paying agent (the “Exchange
Agent”) for the payment of the Merger Consideration. At
or prior to the Effective Time, R&M shall deposit with the
Exchange Agent, for the benefit of the holders of T-3 Common
Stock, for exchange in accordance with this Article II
through the Exchange Agent, book entry shares (or certificates,
if requested) representing the R&M Common Shares to be
issued as Merger Consideration and cash in an amount sufficient
to make payment of the aggregate Cash Consideration and payments
in lieu of fractional shares pursuant to Section 2.03(f).
All such R&M Common Shares and cash deposited with the
Exchange Agent is hereinafter referred to as the
“Exchange Fund.”
(b) Letter of Transmittal. As
promptly as practicable after the Effective Time, and in any
event not later than the second Business Day after the Effective
Time, R&M shall cause the Exchange Agent to mail to each
holder of record of T-3 Common Stock, as of immediately prior to
the Effective Time, a customary letter of transmittal (the
“Letter of Transmittal”) (which shall specify
that delivery shall be effected, and risk of loss and title to
any Certificates shall pass, only upon delivery of such
Certificates to the Exchange Agent or, in the case of shares of
T-3 Common Stock held in book-entry form, upon adherence to the
procedures set forth in the Letter of Transmittal, and shall be
in such form and have such other provisions (including customary
provisions with respect to delivery of an “agent’s
message” with respect to shares held in book-entry form) as
reasonably agreed to by R&M and T-3 prior to the Closing),
together with instructions thereto.
(c) Merger Consideration Received in Connection with
Exchange. Upon: (i) in the case of
shares of T-3 Common Stock represented by a Certificate, the
surrender of such Certificate for cancellation to the Exchange
Agent, or (ii) in the case of shares of T-3 Common Stock
held in book-entry form, the receipt of an “agent’s
message” by the Exchange Agent, in each case together with
the associated Letter of Transmittal, duly, completely and
validly executed in accordance with the instructions thereto,
and such other documents as reasonably may be required by the
Exchange Agent, the holder of such shares shall be entitled to
receive in exchange therefor (i) the Merger Consideration
into which such shares of T-3 Common Stock have been converted
pursuant to Section 2.01, and (ii) any cash in lieu of
fractional shares which the holder has the right to receive
pursuant to 2.03(f) and any dividends or other distributions
which the holder has the right to receive pursuant to
Section 2.03(d). In the event of a transfer of ownership of
T-3 Common Stock which is not registered in the transfer records
of T-3, book entry shares (or a certificate, if requested)
representing the proper number of R&M Common Shares
pursuant to Section 2.01 and cash in lieu of fractional
shares which the holder has the right to receive pursuant to
Section 2.03(f) and any dividends or other distributions
which the holder has the right to receive pursuant to
Section 2.03(d) may be issued to a transferee if the
Certificate representing such T-3 Common Stock (or, if such T-3
Common Stock is held in book-entry form, proper
4
evidence of such transfer) is presented to the Exchange Agent,
accompanied by all documents required to evidence and effect
such transfer and by evidence that any applicable stock transfer
Taxes have been paid. Until surrendered as contemplated by this
Section 2.03(c), each share of T-3 Common Stock, and any
Certificate with respect thereto shall be deemed at any time
from and after the Effective Time to represent only the right to
receive upon such surrender the Merger Consideration which the
holders of shares of T-3 Common Stock were entitled to receive
in respect of such shares pursuant to Section 2.01 (and
cash in lieu of fractional shares pursuant to
Section 2.03(f) and any dividends or other distributions
pursuant to Section 2.03(d)). No interest shall be paid or
shall accrue on the cash payable upon surrender of any
Certificate (or shares of T-3 Common Stock held in book-entry
form).
(d) Treatment of Unexchanged
Shares. No dividends or other distributions
declared or made with respect to R&M Common Shares with a
record date after the Effective Time shall be paid to the holder
of any unsurrendered Certificate (or shares of T-3 Common Stock
held in book-entry form) with respect to the R&M Common
Shares issuable upon surrender thereof, and no cash payment in
lieu of fractional shares shall be paid to any such holder
pursuant to Section 2.03(f), until the surrender of such
Certificate (or such shares of T-3 Common Stock held in
book-entry form) in accordance with this Article II.
Subject to escheat, Tax or other applicable Law, following
surrender of any such Certificate (or shares of T-3 Common Stock
held in book-entry form), there shall be paid to the holder of
the whole R&M Common Shares issued in exchange therefor,
without interest: (i) at the time of such surrender, the
amount of any cash payable in lieu of a fractional R&M
Common Share to which such holder is entitled pursuant to
Section 2.03(f) and the amount of dividends or other
distributions with a record date after the Effective Time
theretofore paid with respect to such whole R&M Common
Shares, and (ii) at the appropriate payment date, the
amount of dividends or other distributions with a record date
after the Effective Time but prior to such surrender and a
payment date subsequent to such surrender payable with respect
to such whole R&M Common Shares.
(e) No Further Ownership Rights in T-3 Common
Stock. The Merger Consideration, any
dividends or other distributions payable pursuant to
Section 2.03(d) and cash in lieu of any fractional shares
payable pursuant to Section 2.03(f) paid upon the surrender
of Certificates (or shares of T-3 Common Stock held in
book-entry form) in accordance with the terms of this
Article II shall be deemed to have been issued and paid in
full satisfaction of all rights pertaining to the shares of T-3
Common Stock formerly represented by such Certificates (or
shares of T-3 Common Stock held in book-entry form). From and
after the Effective Time, there shall be no further registration
of transfers on the stock transfer books of the Surviving Entity
of shares of T-3 Common Stock that were outstanding immediately
prior to the Effective Time. If, after the Effective Time, any
Certificates formerly representing shares of T-3 Common Stock
(or shares of T-3 Common Stock held in book-entry form) are
presented to R&M or the Exchange Agent for any reason, they
shall be canceled and exchanged as provided in this
Article II.
(f) No Fractional Shares. No
certificates or scrip representing fractional R&M Common
Shares shall be issued upon the conversion of T-3 Common Stock
pursuant to Section 2.01, and such fractional share
interests shall not entitle the owner thereof to vote or to any
rights of a holder of R&M Common Shares. Notwithstanding
any other provision of this Agreement, each holder of shares of
T-3 Common Stock converted pursuant to the Merger who, based on
the Stock Consideration, would have been entitled to receive a
fraction of a R&M Common Share (after taking into account
all shares of T-3 Common Stock exchanged by such holder) shall
receive, in lieu thereof, cash (without interest) in an amount
equal to such fractional amount multiplied by the closing sale
price for a R&M Common Shares on the New York Stock
Exchange (the “NYSE”) (as reported in The Wall
Street Journal or, if not reported therein, in another
authoritative source mutually selected by R&M and T-3) for
the trading day immediately preceding the day on which the
Effective Time occurs.
(g) Termination of Exchange
Fund. Any portion of the Exchange Fund
(including any interest received with respect thereto) that
remains undistributed to the holders of T-3 Common Stock for one
year after the Effective Time shall be delivered to R&M,
upon demand, and any holder of T-3 Common Stock who has not
theretofore complied with this Article II shall thereafter
look only to R&M for payment of its claim for Merger
Consideration, any cash in lieu of fractional shares and any
dividends and distributions to which such holder is entitled
pursuant to this Article II.
5
(h) No Liability. None of T-3,
R&M, Merger Sub, Merger Sub II or the Exchange Agent
shall be liable to any Person in respect of any portion of the
Exchange Fund delivered to a public official in compliance with
any applicable abandoned property, escheat or similar Law. Any
portion of the Exchange Fund which remains undistributed to the
holders of Certificates for two years after the Effective Time
(or immediately prior to such earlier date on which the Exchange
Fund otherwise would be required to escheat to, or become the
property of, any Governmental Entity), shall, to the extent
permitted by applicable Law, become the property of R&M,
free and clear of all claims or interest of any Person
previously entitled thereto.
(i) Investment of Exchange
Fund. The cash portion of the Exchange Fund
shall be invested in short-term obligations of the United States
of America with maturities of no more than 30 days or
guaranteed by the United States of America and backed by the
full faith and credit of the United States of America or in
commercial paper obligations rated
A-1 or
P-1 or
better by Xxxxx’x Investors Service, Inc. or
Standard & Poor’s Corporation, respectively;
provided, however, that any interest or other
income resulting from the investment of the Exchange Fund shall
be solely for the account of R&M or the Surviving Entity.
If for any reason (including losses) the Exchange Fund is
inadequate to pay the amounts to which holders of shares of
T-3 Common
Stock shall be entitled under Section 2.01(c), R&M
shall take all steps necessary to enable or cause the Surviving
Entity promptly to deposit additional cash or assets with the
Exchange Agent sufficient to make all payments or distributions
required under this Agreement, and R&M and the Surviving
Entity shall in any event be liable for payment thereof. The
Exchange Fund shall not be used for any other purpose. The
Surviving Entity shall pay all charges and expenses of the
Exchange Agent in connection with the exchange of T-3 Common
Stock for the Merger Consideration.
(j) Withholding Rights. Each of
R&M and the Exchange Agent (without duplication) shall be
entitled to deduct and withhold from the consideration otherwise
payable to any holder of T-3 Common Stock pursuant to this
Agreement such amounts as may be required to be deducted and
withheld with respect to the making of such payment under
applicable Tax Law. Amounts so withheld and paid over to the
appropriate taxing authority shall be treated for all purposes
of this Agreement as having been paid to the holder of T-3
Common Stock in respect of which such deduction or withholding
was made.
(k) Lost Certificates. If any
Certificate shall have been lost, stolen or destroyed, upon the
making of an affidavit of that fact by the Person claiming such
Certificate to be lost, stolen or destroyed and, if required by
R&M, the posting by such Person of a bond, in such
reasonable and customary amount as R&M may direct, as
indemnity against any claim that may be made against it with
respect to such Certificate, the Exchange Agent shall issue, in
exchange for such lost, stolen or destroyed Certificate, the
Merger Consideration, any cash in lieu of fractional shares and
any dividends and distributions on the Certificate deliverable
in respect thereof pursuant to this Article II.
ARTICLE III
REPRESENTATIONS
AND WARRANTIES OF T-3
T-3 represents and warrants to R&M, Merger Sub and Merger
Sub II that the statements contained in this
Article III are true and correct except as (a) set
forth in the disclosure letter delivered by T-3 to R&M at
or before the execution and delivery by T-3 of this Agreement
(the “T-3 Disclosure Letter”) or
(b) disclosed in the T-3 SEC Documents filed or furnished
prior to the date hereof (excluding any disclosures included in
any “risk factor” section of such T-3 SEC Documents or
any other disclosures in such T-3 SEC Documents to the extent
they are predictive or forward-looking in nature). The T-3
Disclosure Letter shall be arranged in numbered and lettered
sections corresponding to the numbered and lettered sections
contained in this Article III, and the disclosure in any
section shall be deemed to qualify other sections in this
Article III to the extent (and only to the extent) that it
is reasonably apparent from the face of such disclosure that
such disclosure also qualifies or applies to such other sections.
Section 3.01 Organization,
Standing and Power. T-3 and each of
T-3’s Subsidiaries (the
“T-3 Subsidiaries”)
is duly organized, validly existing and in good standing under
the laws of the jurisdiction in which it is organized (in the
case of good standing, to the extent such jurisdiction
recognizes such concept),
6
except, in the case of the T-3 Subsidiaries, where the failure
to be so organized, existing or in good standing, individually
or in the aggregate, would not reasonably be expected to have a
T-3 Material Adverse Effect. Each of T-3 and the T-3
Subsidiaries has all requisite power and authority and possesses
all Permits necessary to enable it to own, lease or otherwise
hold its properties and assets and to conduct its businesses as
presently conducted (the “T-3 Permits”), except
where the failure to have such power or authority or to possess
T-3 Permits, individually or in the aggregate, would not
reasonably be expected to have a T-3 Material Adverse Effect.
Each of T-3 and the T-3 Subsidiaries is duly qualified or
licensed to do business in each jurisdiction where the nature of
its business or the ownership or leasing of its properties make
such qualification necessary, other than in such jurisdictions
where the failure to be so qualified or licensed, individually
or in the aggregate, would not reasonably be expected to have a
T-3 Material Adverse Effect. T-3 has delivered or made available
to R&M, prior to execution of this Agreement, true and
complete copies of the certificate of incorporation of T-3 in
effect as of the date of this Agreement (the “T-3
Certificate”) and the bylaws of T-3 in effect as of the
date of this Agreement (the “T-3 Bylaws”).
Section 3.02 T-3
Subsidiaries. (a) All the outstanding
shares of capital stock or voting securities of, or other equity
interests in, each T-3 Subsidiary have been validly issued and
are fully paid and nonassessable and are (other than directors
qualifying shares and shares held by natural persons pursuant to
requirements of Law of
non-U.S. jurisdictions)
owned by T-3, by another T-3 Subsidiary or by T-3 and another
T-3 Subsidiary, free and clear of all Liens, and free of any
other restriction (including any restriction on the right to
vote, sell or otherwise dispose of such capital stock, voting
securities or other equity interests), except for restrictions
imposed by applicable securities Laws. T-3 has provided to
R&M a true and complete list of all T-3 Subsidiaries as of
the date of this Agreement.
(b) Except for the capital stock and voting securities of,
and other equity interests in, the T-3 Subsidiaries, neither T-3
nor any T-3 Subsidiary owns, directly or indirectly, any capital
stock or voting securities of, or other equity interests in, or
any interest convertible into or exchangeable or exercisable
for, any capital stock or voting securities of, or other equity
interests in, any firm, corporation, partnership, company,
limited liability company, trust, joint venture, association or
other entity.
Section 3.03 Capital
Structure. (a) As of the date of this
Agreement, the authorized stock of T-3 consists of
50,000,000 shares of T-3 Common Stock and
25,000,000 shares of preferred stock, par value $0.001 per
share (the “T-3 Preferred Stock” and, together
with the T-3 Common Stock, the “T-3 Capital
Stock”). At the close of business on October 5,
2010: (i) 13,338,861 shares of T-3 Common Stock were
issued and outstanding, of which 200,400 were T-3 Restricted
Shares, (ii) no shares of T-3 Preferred Stock were issued
and outstanding, (iii) 918,323 shares of T-3 Common
Stock were reserved and available for issuance pursuant to the
T-3 Stock Plan, all of which were issuable upon exercise of
outstanding T-3 Stock Options (the outstanding T-3 Restricted
Shares and T-3 Stock Options are referred to as the “T-3
Stock-Based Awards”), and (iv) 8,595 shares
of T-3 Common Stock were reserved for issuance pursuant to the
T-3 Warrants. Except as set forth in this Section 3.03(a),
at the close of business on October 5, 2010, no shares of
capital stock or voting securities of, or other equity interests
in, T-3 were issued, reserved for issuance or outstanding. From
the close of business on October 5, 2010 to the date of
this Agreement, there have been no issuances by T-3 of shares of
capital stock or voting securities of, or other equity interests
in, T-3, other than the issuance of
T-3 Common
Stock upon the exercise of T-3 Stock Options and T-3 Warrants
outstanding at the close of business on October 5, 2010.
(b) All outstanding shares of T-3 Capital Stock are, and,
at the time of issuance, all such shares that may be issued upon
the exercise of T-3 Stock Options and T-3 Warrants will be, duly
authorized, validly issued, fully paid and nonassessable and not
subject to, or issued in violation of, any purchase option, call
option, right of first refusal, preemptive right, subscription
right or any similar right under any provision of the DGCL, the
T-3 Articles, the T-3 Bylaws or any Contract to which T-3 is a
party or otherwise bound. Except as set forth in this
Section 3.03, as of the close of business on
October 5, 2010, there are not issued, reserved for
issuance or outstanding, and there are not any outstanding
obligations of T-3 or any T-3 Subsidiary to issue, deliver or
sell, or cause to be issued, delivered or sold: (i) any
capital stock of T-3 or any T-3 Subsidiary or any securities of
T-3 or any T-3 Subsidiary convertible into or exchangeable or
exercisable for shares of capital stock or voting securities of,
or other equity interests in, T-3 or any T-3 Subsidiary,
(ii) any warrants, calls,
7
options or other rights to acquire from T-3 or any T-3
Subsidiary, or any other obligation of T-3 or any T-3 Subsidiary
to issue, deliver or sell, or cause to be issued, delivered or
sold, any capital stock or voting securities of, or other equity
interests in, T-3 or any T-3 Subsidiary or (iii) any rights
issued by or other obligations of T-3 or any T-3 Subsidiary that
are linked in any way to the price of any class of T-3 Capital
Stock or any shares of capital stock of any T-3 Subsidiary, the
value of T-3, any T-3 Subsidiary or any part of T-3 or any T-3
Subsidiary or any dividends or other distributions declared or
paid on any shares of capital stock of T-3 or any T-3
Subsidiary. Except as set forth above in this Section 3.03
or in connection with T-3 Stock-Based Awards, as of the close of
business on October 5, 2010, there are not any outstanding
obligations of T-3 or any of the T-3 Subsidiaries to repurchase,
redeem or otherwise acquire any shares of capital stock or
voting securities or other equity interests of T-3 or any T-3
Subsidiary or any securities, interests, warrants, calls,
options or other rights referred to in clause (i), (ii) or
(iii) of the immediately preceding sentence. Each T-3
Warrant was duly executed and delivered by each party thereto,
and a true and correct copy of each such T-3 Warrant was
provided to R&M prior to the date of this Agreement. There
are no debentures, bonds, notes or other Indebtedness of T-3
having the right to vote (or convertible into, or exchangeable
for, securities having the right to vote) on any matters on
which stockholders of T-3 may vote (“T-3 Voting
Debt”). Neither T-3 nor any of the T-3 Subsidiaries is
a party to any voting agreement with respect to the voting of
any stock or voting securities of, or other equity interests in,
T-3. Except for this Agreement, neither T-3 nor any of the T-3
Subsidiaries is a party to any agreement pursuant to which any
Person is entitled to elect, designate or nominate any director
of T-3 or any of the T-3 Subsidiaries.
Section 3.04 Authority;
Execution and Delivery;
Enforceability. (a) T-3 has all
requisite corporate power and authority to execute and deliver
this Agreement, to perform its obligations hereunder and to
consummate the Merger and the other transactions contemplated by
this Agreement, subject, in the case of the Merger, to the
receipt of the T-3 Stockholder Approval. The T-3 Board, by a
vote at a meeting duly called at which a quorum of directors of
T-3 was present, adopted resolutions: (i) approving this
Agreement, (ii) declaring advisable the Merger on
substantially the terms and conditions set forth in this
Agreement and determining that the Merger and the other
transactions contemplated by this Agreement are in the best
interests of T-3 and its stockholders, (iii) recommending
that T-3’s stockholders approve the Merger and directing
that the Merger be submitted to T-3’s stockholders for
approval at a duly held meeting of such stockholders for such
purpose (the “T-3 Stockholders Meeting”) and
(iv) approving, effective as of the Effective Time, the
amendment and restatement of the T-3 Certificate, and such
resolutions have not been amended or withdrawn as of the date of
this Agreement. Except for the approval of the Merger and
adoption of this Agreement by the affirmative vote of a majority
of the votes entitled to be cast by holders of outstanding
shares of T-3 Common Stock at the T-3 Stockholders Meeting (the
“T-3 Stockholder Approval”), no other corporate
proceedings on the part of T-3 are necessary to authorize or
adopt this Agreement or to consummate the Merger and the other
transactions contemplated by this Agreement (except for the
filing of the appropriate merger documents as required by the
DGCL). T-3 has duly executed and delivered this Agreement and,
assuming the due authorization, execution and delivery by each
of R&M, Merger Sub and Merger Sub II, this Agreement
constitutes its legal, valid and binding obligation, enforceable
against it in accordance with its terms, subject as to
enforceability, to bankruptcy, insolvency, reorganization,
moratorium, and other Laws of general applicability relating to
or affecting creditors rights and to general principles of
equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).
(b) The T-3 Board has adopted a resolution to exempt the
Merger provided for by this Agreement from Title 3,
Subtitle 6 of the DGCL. No other “interested
stockholder,” “fair price,”
“moratorium,” “control share acquisition” or
other similar antitakeover statute or similar statute or
regulation (including Title 3, Subtitle 7 of the DGCL), or
similar provision or term of the T-3 Certificate or the T-3
Bylaws, applies with respect to T-3 with respect to this
Agreement, the Merger or any of the other transactions
contemplated by this Agreement.
(c) Neither T-3 nor any T-3 Subsidiary has in effect a
“poison pill,” stockholder rights plan or other
similar plan or agreement.
Section 3.05 No
Conflicts; Consents. (a) The execution
and delivery by T-3 of this Agreement does not, and the
performance by it of its obligations hereunder and the
consummation of the Merger, the Second Merger (if required
pursuant to Section 1.05) and the other transactions
contemplated by this Agreement will
8
not: (i) conflict with or result in any violation of any
provision of the T-3 Certificate, the T-3 Bylaws or the
comparable charter, bylaws or other organizational documents of
any material T-3 Subsidiary (assuming that the T-3 Stockholder
Approval is obtained), (ii) conflict with, result in any
violation of or default (with or without notice or lapse of
time, or both) under, give rise to a right of termination,
cancellation or acceleration of, give rise to any obligation to
make an offer to purchase or redeem any Indebtedness or capital
stock or any loss of a material benefit under, or result in the
creation of any Lien upon any of the properties or assets of
T-3 or any
T-3 Subsidiary under, any legally binding Contract to which T-3
or any T-3 Subsidiary is a party or by which any of their
respective properties or assets is bound or any T-3 Permit or
(iii) subject to the filings and other matters referred to
in Section 3.05(b), conflict with or result in any
violation of any Judgment or Law, in each case, applicable to
T-3 or any T-3 Subsidiary or their respective properties or
assets (assuming that the T-3 Stockholder Approval is obtained),
other than, in the case of clauses (ii) and
(iii) above, any matters that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect and would not prevent or materially
impede, interfere with, hinder or delay the consummation of the
Merger or the Second Merger (if required pursuant to
Section 1.05).
(b) No Consent of or from, or registration, declaration,
notice or filing made to or with any Governmental Entity is
required to be obtained or made by or with respect to T-3 or any
T-3 Subsidiary in connection with the execution and delivery of
this Agreement or its performance of its obligations hereunder
or the consummation of the Merger and the other transactions
contemplated by this Agreement, other than: (i) (A) the
filing with the SEC of the Joint Proxy Statement, (B) the
filing with the SEC, and declaration of effectiveness under the
Securities Act, of the
Form S-4,
and (C) the filing with the SEC of such reports under, and
such other compliance with, the Exchange Act and the Securities
Act, and the rules and regulations thereunder, as may be
required in connection with this Agreement, the Merger, the
Second Merger (if required pursuant to Section 1.05) and
the other transactions contemplated by this Agreement,
(ii) compliance with and filings under the HSR Act, and
such other Consents, registrations, declarations, notices or
filings as are required to be made or obtained under any foreign
antitrust, competition, trade regulation or similar Laws,
(iii) the filing of the Certificate of Merger with, and
acceptance for record by, the Delaware Secretary of State and
appropriate documents with the relevant authorities of the other
jurisdictions in which R&M and T-3 are qualified to do
business, (iv) such Consents, registrations, declarations,
notices or filings as are required to be made or obtained under
the securities or “blue sky” laws or takeover laws,
(v) such Consents from, or registrations, declarations,
notices or filings made to or with, any Governmental Entities
(other than with respect to securities, antitrust, competition,
trade regulation or similar Laws), in each case as may be
required in connection with this Agreement, the Merger, the
Second Merger (if required pursuant to Section 1.05) or the
other transactions contemplated by this Agreement,
(vi) such filings with and approvals of the NYSE as are
required to permit the listing of the Stock Consideration, and
(vii) such other matters that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect and would not prevent or materially
impede, interfere with, hinder or delay the consummation of the
Merger or the Second Merger.
Section 3.06 SEC
Documents; Undisclosed
Liabilities. (a) T-3 has furnished or
filed all reports, schedules, forms, statements and other
documents (including exhibits and other information incorporated
therein) required to be furnished or filed by T-3 with the SEC
since January 1, 2009 (such documents, together with any
documents filed with or furnished to the SEC during such period
by T-3 on a voluntary basis on a Current Report on
Form 8-K,
but excluding the Joint Proxy Statement, the
Form S-4
and any documents not publicly available, being collectively
referred to as the “T-3 SEC Documents”).
(b) Each T-3 SEC Document: (i) at the time filed,
complied in all material respects with the requirements of the
Exchange Act or the Securities Act, as the case may be, and the
rules and regulations of the SEC promulgated thereunder
applicable to such T-3 SEC Document and (ii) did not at the
time it was filed (or if amended or superseded by a filing or
amendment prior to the date of this Agreement, then at the time
of such filing or amendment) 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. Each of the consolidated financial
statements of T-3 included in the
T-3 SEC
Documents complied at the time it was filed as to form in all
material respects with applicable
9
accounting requirements and the published rules and regulations
of the SEC with respect thereto, was prepared in accordance with
GAAP (except, in the case of unaudited statements, as permitted
by
Form 10-Q
of the SEC) applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto) and
fairly presented in all material respects the consolidated
financial position of T-3 and its consolidated Subsidiaries as
of the dates thereof and the consolidated results of their
operations and cash flows for the periods shown (subject, in the
case of unaudited statements, to normal year-end audit
adjustments).
(c) There are no liabilities of T-3 or any T-3 Subsidiary
of any kind whatsoever, whether accrued, contingent, absolute,
determined, determinable or otherwise, other than:
(i) liabilities adequately provided for on the consolidated
balance sheet of T-3 dated as of December 31, 2009
(including the notes thereto) contained in T-3’s Annual
Report on
Form 10-K
for the year ended December 31, 2009; (ii) liabilities
incurred in the ordinary course of business subsequent to
December 31, 2009; (iii) liabilities for fees and
expenses incurred in connection with the transactions
contemplated by this Agreement; (iv) liabilities incurred
as permitted under Section 5.01(a); (v) liabilities
contemplated by Sections 3.09, 3.10, 3.11, 3.13, 3.16 and
3.19; and (vi) liabilities not contemplated by
clauses (i) through (v) which would not reasonably be
expected to have, individually or in the aggregate, a T-3
Material Adverse Effect.
(d) Each of the chief executive officer of T-3 and the
chief financial officer of T-3 (or each former chief executive
officer of T-3 and each former chief financial officer of T-3,
as applicable) has made all applicable certifications required
by
Rule 13a-14
or 15d-14
under the Exchange Act and Sections 302 and 906 of SOX with
respect to the T-3 SEC Documents, and the statements contained
in such certifications are true and accurate. For purposes of
this Agreement, “chief executive officer” and
“chief financial officer” shall have the meanings
given to such terms in SOX. None of T-3 or any of the T-3
Subsidiaries has outstanding, or has arranged any outstanding,
“extensions of credit” to directors or executive
officers in violation of Section 402 of SOX.
(e) T-3 maintains a system of “internal control over
financial reporting” (as defined in
Rules 13a-15(f)
and
15d-15(f) of
the Exchange Act) sufficient to provide reasonable assurance
(i) that transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP,
consistently applied, (ii) that transactions are executed
only in accordance with the authorization of management and
(iii) regarding prevention or timely detection of the
unauthorized acquisition, use or disposition of T-3’s
properties or assets.
(f) The “disclosure controls and procedures” (as
defined in
Rules 13a-15(e)
and
15d-15(e) of
the Exchange Act) utilized by T-3 are reasonably designed to
ensure that material information (both financial and
non-financial) required to be disclosed by T-3 in the reports
that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods
specified in the rules and forms of the SEC and that all such
information required to be disclosed is accumulated and
communicated to the management of T-3, as appropriate, to allow
timely decisions regarding required disclosure and to enable the
chief executive officer and chief financial officer of T-3 to
make the certifications required under the Exchange Act with
respect to such reports.
(g) Neither T-3 nor any of the T-3 Subsidiaries is a party
to, or has any commitment to become a party to, any joint
venture, off-balance sheet partnership or any similar Contract
(including any Contract or arrangement relating to any
transaction or relationship between or among T-3 and any of the
T-3 Subsidiaries, on the one hand, and any unconsolidated
Affiliate, including any structured finance, special purpose or
limited purpose entity or Person, on the other hand, or any
“off-balance sheet arrangements” (as defined in
Item 303(a) of
Regulation S-K
under the Exchange Act)), where the result, purpose or intended
effect of such Contract is to avoid disclosure of any material
transaction involving, or material liabilities of, T-3 or any of
the T-3 Subsidiaries in T-3’s or such T-3 Subsidiary’s
published financial statements or other T-3 SEC Documents.
(h) Since January 1, 2010, none of T-3, T-3’s
independent accountants, the T-3 Board or the audit committee of
the T-3 Board has received any oral or written notification of
any: (i) “significant deficiency” in the internal
controls over financial reporting of T-3,
(ii) “material weakness” in the internal controls
over financial reporting of T-3 or (iii) fraud, whether or
not material, that involves management or other employees of T-3
who have a significant role in the internal controls over
financial reporting of T-3. For purposes of this paragraph (h),
the terms “significant deficiency” and “material
weakness” shall have the meanings assigned to
10
them in Auditing Standard No. 5 of the Public Company
Accounting Oversight Board, as in effect on the date of this
Agreement.
(i) None of the T-3 Subsidiaries is, or has at any time
since January 1, 2010 been, subject to the reporting
requirements of Section 13(a) or 15(d) of the Exchange Act.
Section 3.07 Information
Supplied. None of the information supplied or
to be supplied by T-3 for inclusion or incorporation by
reference in: (i) the
Form S-4
will, at the time the
Form S-4
is filed with the SEC, at any time it is amended or supplemented
or at the time it is declared effective under the Securities
Act, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or
(ii) the Joint Proxy Statement will, at the date it is
first mailed to each of R&M’s shareholders and
T-3’s stockholders or at the time of each of the R&M
Shareholders Meeting and the T-3 Stockholders Meeting, contain
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 therein, in light of the
circumstances under which they are made, not misleading. The
Joint Proxy Statement will comply as to form in all material
respects with the requirements of the Exchange Act and the rules
and regulations thereunder, except that no representation is
made by T-3 with respect to statements made or incorporated by
reference therein based on information supplied by R&M,
Merger Sub or Merger Sub II for inclusion or incorporation
by reference therein.
Section 3.08 Absence
of Certain Changes or Events. From
January 1, 2010 to the date of this Agreement, each of T-3
and the T-3 Subsidiaries has conducted its respective business
in the ordinary course in all material respects, and during such
period there has not occurred:
(a) any event or development that, individually or in the
aggregate, has had or would reasonably be expected to have a T-3
Material Adverse Effect;
(b) any authorization, declaration, setting aside or
payment of any dividend or other distribution (whether in cash,
stock or property or any combination thereof) in respect of any
capital stock or voting securities of, or other equity interests
in, T-3 or the capital stock or voting securities of, or other
equity interests in, any of the T-3 Subsidiaries (other than
dividends or other distributions by a direct or indirect wholly
owned T-3 Subsidiary to its shareholders or other equity
holders) or any repurchase for value by T-3 of any stock or
voting securities of, or other equity interests in, T-3 or the
capital stock or voting securities of, or other equity interests
in, any of the T-3 Subsidiaries;
(c) any split, reverse split, combination, subdivision or
reclassification of any capital stock or voting securities of,
or other equity interests in, T-3, securities convertible into
or exercisable or exchangeable for stock or voting securities
of, or other equity interests in, T-3 or any issuance or the
authorization of any issuance of any other securities in respect
of, in lieu of or in substitution for shares of capital stock or
voting securities of, or other equity interests in, T-3;
(d) any incurrence of material Indebtedness for borrowed
money or any guarantee of such Indebtedness for another Person
(other than T-3 or a wholly owned T-3 Subsidiary), or any issue
or sale of debt securities, warrants or other rights to acquire
any debt security of T-3 or any T-3 Subsidiary other than
Indebtedness incurred in the ordinary course of business or
Indebtedness incurred under any credit facility of T-3 in
existence on the date hereof;
(e) (i) any transfer, lease, license, sale, mortgage,
pledge or other disposal or encumbrance of any of T-3’s or
T-3’s Subsidiaries’ property or assets outside of the
ordinary course of business consistent with past practice with a
fair market value in excess of (in the aggregate, for all such
transactions) $5,000,000 or (ii) any acquisitions of
businesses, whether by merger, consolidation, purchase of
property or assets or otherwise;
(f) except as required to comply with applicable Law or to
comply with any T-3 Benefit Plan (including any award agreement
thereunder) in effect as of January 1, 2010, any:
(i) establishing, adopting, entering into, terminating or
amending, or taking of any action to accelerate the vesting or
payment of, any compensation or benefits under, any material
collective bargaining agreement or T-3
11
Benefit Plan (or any award thereunder); provided, that
with respect to the amendment of a T-3 Benefit Plan that is an
“employee welfare benefit plan” (as defined in
Section 3(1) of ERISA), this clause (i) shall apply
only to material amendments of such plan, (ii) increasing
in any material respect the compensation or benefits of, or
paying any discretionary bonus of any kind or amount whatsoever
to, any current or former director, officer, employee or
independent contractor of T-3 or any T-3 Subsidiary, except for
increases in regular cash compensation in the ordinary course of
business consistent with past practice for employees of T-3 or
any T-3 Subsidiary who are not executive officers,
(iii) paying of any benefit or amount not required under
any T-3 Benefit Plan as in effect January 1, 2010,
(iv) granting or paying of any change in control,
retention, severance or termination compensation or benefits,
(v) taking of any action to fund or in any other way secure
the payment of compensation or benefits under any T-3 Benefit
Plan, (vi) changing of any actuarial or other assumption
used to calculate funding obligations with respect to any T-3
Pension Plan or (vii) changing the manner in which
contributions to any T-3 Pension Plan are made or the basis on
which such contributions are determined;
(g) any change in accounting methods, principles or
practices by T-3 or any T-3 Subsidiary, except insofar as may
have been required by a change in GAAP; or
(h) with respect to all Taxes payable to any federal, state
or local government or other Governmental Entity within the
United States: (i) any material election with respect to
Taxes, (ii) any changes to any such election or existing
election, or (iii) any settlement or compromise by T-3 or
any T-3 Subsidiary of any material Tax liability or refund,
other than, in each case, in the ordinary course of business.
Section 3.09 Taxes. With
respect to all Taxes payable to any federal, state or local
government or other Governmental Entity within the United States:
(a) (i) T-3 and each T-3 Subsidiary has timely filed,
taking into account any extensions, all material Tax Returns
required to have been filed and such Tax Returns are accurate
and complete in all material respects; (ii) T-3 and each
T-3 Subsidiary has paid all material Taxes required to have been
paid by it other than Taxes that are not yet due or that are
being contested in good faith in appropriate proceedings;
(iii) no deficiency for any Tax has been asserted or
assessed by a taxing authority against T-3 or any T-3 Subsidiary
which deficiency has not been paid or is not being contested in
good faith in appropriate proceedings; (iv) there are no
Tax Liens on the assets of T-3 or any T-3 Subsidiary (other than
Liens for Taxes not yet due and payable); (v) there are no
outstanding waivers or agreements extending the statute of
limitations for any period with respect to any Tax to which T-3
or any T-3 Subsidiary is subject; and (vi) all Taxes not
yet due and payable by T-3 or a T-3 Subsidiary (or any other
corporation consolidated with T-3 or any T-3 Subsidiary) have
been properly accrued or adequately reserved on the books of
account of T-3 in accordance with GAAP.
(b) No Tax Return of T-3 or any T-3 Subsidiary is under
audit or examination by any taxing authority, and no written
(or, to the Knowledge of T-3, oral) notice of such an audit or
examination has been received by T-3 or any T-3 Subsidiary.
(i) No deficiencies for any Taxes have been asserted in
writing against T-3 or any T-3 Subsidiary, (ii) no
Information Document Request, questionnaire or other written
communication has been received by T-3 or any T-3 Subsidiary
from any Governmental Entity that would cause a reasonable
person to believe that a deficiency for Taxes will be asserted
by any Governmental Entity and (iii) no requests for
waivers of the time to assess any such Taxes are pending. No
other procedure, proceeding or contest of any refund or
deficiency in respect of Taxes is pending in or on appeal from
any Governmental Entity.
(c) Each of T-3 and each T-3 Subsidiary has complied in all
material respects with all applicable Laws relating to the
withholding of Taxes.
(d) Neither T-3 nor any T-3 Subsidiary is a party to or is
otherwise bound by any material Tax sharing, allocation or Tax
indemnification agreement or arrangement (other than such an
agreement or arrangement exclusively between or among T-3 and
wholly owned T-3 Subsidiaries).
12
(e) Within the past three years, neither T-3 nor any T-3
Subsidiary has been a “distributing corporation” or a
“controlled corporation” in a distribution intended to
qualify for tax-free treatment under Section 355 of the
Code.
(f) For all Tax years and periods since January 1,
2003, neither T-3 nor any T-3 Subsidiary has participated in or
been a party to a transaction that, as of the date of this
Agreement, constitutes a “listed transaction” or
“reportable transaction” within the meaning of
Section 6011 of the Code and applicable Treasury
Regulations thereunder (or a similar provision of state law).
(g) Neither T-3 nor any T-3 Subsidiary has taken any action
nor, to the Knowledge of T-3, does there exist any fact, that
would reasonably be expected to prevent the Merger and the
Second Merger (if required by Section 1.05) from qualifying
for the Intended Tax Treatment.
(h) For all Tax years and periods since January 1,
2006 no disallowance of a deduction under Section 162(m) of
the Code for any amount paid or payable by T-3 or any T-3
Subsidiary as employee compensation, whether under any contract,
plan, program or arrangement, understanding or otherwise, has or
is expected to occur.
(i) T-3 has provided to R&M the following information
as of the most recent practicable date: (i) the amount of
any tax attribute (e.g., net operating loss, net capital loss,
unused investment, minimum, or other tax credit, overall
built-in loss or excess charitable contribution deduction) of
T-3 or any T-3 Subsidiary that carries over to a Tax year
following the Closing Date; (ii) a list of each
jurisdiction in which T-3 or any T-3 Subsidiary is required to
file Tax Returns; (iii) a complete and correct copy of each
Tax Return of T-3 and any T-3 Subsidiary for each fiscal year
ending in 2006 or thereafter; (iv) the most recent Tax
years through which each Governmental Entity having jurisdiction
over Taxes payable by T-3 or any T-3 Subsidiary has completed
its examination of T-3 or such T-3 Subsidiary; and (v) a
list of all jurisdictions with which T-3 or any T-3 Subsidiary
has a Tax abatement or other Tax reduction Contract in effect
(correct and complete copies of all of which have been provided
to R&M).
(j) Since January 1, 2007, neither T-3 nor any T-3
Subsidiary has filed a consolidated or combined Tax Return for
any U.S. federal income Tax purpose with another company
(other than T-3 or another T-3 Subsidiary).
(k) (i) No power of attorney which is currently in
force has been granted by or with respect to T-3 or any T-3
Subsidiary in connection with any matter related to Taxes;
(ii) neither T-3 nor any T-3 Subsidiary has engaged in a
like-kind exchange within the meaning of Section 1031 of
the Code or received cash proceeds in connection with an
involuntary conversion within the meaning of Section 1033
of the Code, with respect to which the replacement property
could be purchased on or after the Closing Date; (iii) with
respect to any compensation arrangements of T-3 or any T-3
Subsidiary subject to 409A of the Code, the requirements of
Section 409A have been satisfied and all necessary
amendments to any arrangements subject to such provisions have
been adopted by the appropriate Persons; (iv) to the extent
that T-3 or any T-3 Subsidiary is the owner of any life
insurance agreement, there is no borrowing against such policy;
(v) neither T-3 nor any T-3 Subsidiary is a party to a
split-dollar life insurance arrangement, as defined in Federal
Income Tax
Regulation 1.61-22(b);
and (vi) neither T-3 nor any T-3 Subsidiary has
participated in or cooperated with an international boycott
within the meaning of Section 999 of the Code.
(l) T-3 has provided to R&M: (i) complete and
accurate copies of all Tax opinions, audit reports, letter
rulings, technical advice memoranda, and similar items obtained
or received since January 1, 2006 relating to Taxes; and
(ii) a description of each Tax item related to a tax
position of T-3 that has been reflected in the consolidated
statements of T-3 pursuant to FASB Interpretation 48, Accounting
for Uncertainty in Income Taxes for any period after
January 1, 2006.
Section 3.10 Benefits
Matters; ERISA Compliance. (a) T-3 has
delivered or made available to R&M true and complete copies
of: (i) all material T-3 Benefit Plans existing as of the
date of this Agreement or, in the case of any unwritten material
T-3 Benefit Plan as of the date of this Agreement, a description
thereof, including any amendment thereto, (ii) the most
recent annual report on Form 5500 or such similar report,
13
statement or information return required to be filed with or
delivered to any Governmental Entity, if any, in each case, with
respect to each material T-3 Benefit Plan, (iii) each
trust, insurance, annuity or other funding Contract relating to
any material T-3 Benefit Plan and (iv) the most recent
financial statements and actuarial or other valuation reports
for each T-3 Benefit Plan (if any). For purposes of this
Agreement, “T-3 Benefit Plans” means,
collectively (A) all “employee pension benefit
plans” (as defined in Section 3(2) of ERISA)
(“T-3 Pension Plans”), “employee welfare
benefit plans” (as defined in Section 3(1) of ERISA)
and all other material bonus, pension, profit sharing,
retirement, deferred compensation, incentive compensation,
equity or equity-based compensation, severance, retention,
termination, change in control, disability, vacation, death
benefit, hospitalization, medical, dental, life insurance or
other material compensation or benefit plans, arrangements,
policies, Contracts, programs or understandings providing
compensation or benefits (other than foreign or domestic
statutory programs), in each case, sponsored, maintained,
contributed to or required to be maintained or contributed to by
T-3, any T-3 Subsidiary or any other Person that, together with
T-3 is treated as a single employer under Section 414 of
the Code (each, a “T-3 Commonly Controlled
Entity”) for the benefit of any current or former
directors, officers, employees, independent contractors or
consultants of T-3 or any T-3 Subsidiary or with respect to
which T-3 or any T-3 Commonly Controlled Entity has any
liability (contingent or otherwise), and (B) all material
employment, consulting, bonus, incentive compensation, deferred
compensation, equity or equity-based compensation,
indemnification, severance, retention, change of control or
termination agreements or arrangements (including collective
bargaining agreements) between T-3 or any T-3 Subsidiary and any
current or former directors, officers, employees, independent
contractors or consultants of T-3 or any T-3 Subsidiary.
(b) All T-3 Pension Plans have been the subject of, have
timely applied for or have not been eligible to apply for, as of
the date of this Agreement, determination letters or opinion
letters (as applicable) from the IRS or a
non-U.S. Governmental
Entity (as applicable) to the effect that such T-3 Pension Plans
and the trusts created thereunder are qualified and exempt from
Taxes under Sections 401(a) and 501(a) of the Code or other
applicable Law, and no such determination letter or opinion
letter has been revoked nor, to the Knowledge of T-3, has
revocation been threatened, nor has any such T-3 Pension Plan
been amended since the date of its most recent determination
letter or opinion letter (or application therefor) in any
respect that would adversely affect its qualification.
(c) Except for matters that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect: (i) no T-3 Pension Plan, other
than any T-3 Pension Plan that is a “multiemployer
plan” within the meaning of Section 4001(a)(3) of
ERISA (a “T-3 Multiemployer Pension Plan”),
had, as of the respective last annual valuation date for each
such T-3 Pension Plan, an “unfunded benefit liability”
(within the meaning of Section 4001(a)(18) of ERISA), based
on actuarial assumptions that have been furnished to R&M,
(ii) none of the T-3 Pension Plans has failed to meet any
“minimum funding standards” (as such term is defined
in Section 302 of ERISA or Section 412 of the Code),
whether or not waived, (iii) none of such T-3 Benefit Plans
or related trusts is the subject of any proceeding or
investigation by any Person, including any Governmental Entity,
that could be reasonably expected to result in a termination of
such T-3 Benefit Plan or trust or any other material liability
to T-3 or any T-3 Subsidiary, (iv) there has not been any
“reportable event” (as that term is defined in
Section 4043 of ERISA and as to which the notice
requirement under Section 4043 of ERISA has not been
waived) with respect to any T-3 Benefit Plan during the last six
years and (v) none of T-3, any T-3 Subsidiary or any T-3
Commonly Controlled Entity has, or within the past six years
had, contributed to, been required to contribute to, or has any
liability (including “withdrawal liability” within the
meaning of Title IV of ERISA) with respect to, any T-3
Multiemployer Pension Plan.
(d) With respect to each material T-3 Benefit Plan that is
an employee welfare benefit plan, such T-3 Benefit Plan
(including any T-3 Benefit Plan covering retirees or other
former employees) may be amended to reduce benefits or limit the
liability of T-3 or the T-3 Subsidiaries or terminated, in each
case, without material liability to T-3 and the T-3 Subsidiaries
on or at any time after the Effective Time.
(e) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect, no T-3 Benefit Plan provides health,
medical or other welfare benefits after retirement or other
termination of employment (other than for continuation coverage
required under Section 4980(B)(f) of the Code or applicable
Law).
14
(f) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect: (i) each T-3 Benefit Plan and its
related trust, insurance contract or other funding vehicle has
been administered in accordance with its terms and is in
compliance with ERISA, the Code and all other Laws applicable to
such T-3 Benefit Plan and (ii) T-3 and each of the T-3
Subsidiaries is in compliance with ERISA, the Code and all other
Laws applicable to the T-3 Benefit Plans.
(g) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect: all contributions or other amounts
payable by T-3 or any T-3 Subsidiary with respect to each T-3
Benefit Plan have been paid or accrued in accordance with the
terms of such T-3 Benefit Plan, GAAP and Section 412 of the
Code (or any comparable provision under applicable
non-U.S. Laws).
Except as fully accrued or reserved against on T-3’s
financial statements in accordance with GAAP, there are no
material unfunded liabilities (contingent or otherwise),
solvency deficiencies or
wind-up
liabilities, where applicable, with respect to any T-3 Benefit
Plan.
(h) As of the date of this Agreement, except for exceptions
that, individually or in the aggregate, would not reasonably be
expected to have a T-3 Material Adverse Effect, there are no
pending or, to the Knowledge of T-3, threatened claims, suits or
proceedings by or on behalf of any participant in any of the T-3
Benefit Plans, or otherwise involving any such T-3 Benefit Plan
or the assets of any T-3 Benefit Plan, other than routine claims
for benefits payable in the ordinary course.
(i) None of the execution and delivery of this Agreement,
the obtaining of the T-3 Stockholder Approval or the
consummation of the Merger, the Second Merger (if required
pursuant to Section 1.05) or any other transaction
contemplated by this Agreement (alone or in conjunction with any
other event, including any termination of employment on or
following the Effective Time) will: (i) entitle any current
or former director, officer, employee, independent contractor or
consultant of T-3 or any of the T-3 Subsidiaries to any
compensation or benefit, (ii) accelerate the time of
payment or vesting, or trigger any payment or funding, of any
compensation or benefits or trigger any other material
obligation under any T-3 Benefit Plan or (iii) result in
any breach or violation of, default under or limit T-3’s
right to amend, modify or terminate any T-3 Benefit Plan.
(j) Other than the Specified Parachute Payments, no amount
or other entitlement that could be received as a result of the
transactions contemplated hereby (alone or in conjunction with
any other event) by any individual listed in
Section 3.10(j) of the T-3 Disclosure Letter will
constitute an “excess parachute payment” (as defined
in Section 280G(b)(1) of the Code). Section 3.10(j) of
the T-3 Disclosure Letter sets forth, with respect to each such
individual: (i) such Person’s name, title and
“base amount” (as defined in Section 280G(b)(3)
of the Code) and (ii) a calculation of the aggregate
present value of the “parachute payments” (as defined
in Section 280G(b)(2) of the Code) such Person could
receive (collectively, the “Specified Parachute
Payments”). No current or former director, officer,
employee or independent contractor of T-3 or any T-3 Subsidiary
is entitled to receive any
gross-up or
additional payment in respect of any Taxes (including, without
limitation, the Taxes required under Section 409A or
Section 4999 of the Code) being imposed on such Person.
Section 3.11 Litigation. There
is no suit, action or other proceeding pending or, to the
Knowledge of T-3, threatened against T-3 or any T-3 Subsidiary
that, individually or in the aggregate, would reasonably be
expected to have a T-3 Material Adverse Effect, nor is there any
Judgment outstanding against or, to the Knowledge of T-3, any
investigation by any Governmental Entity involving T-3 or any
T-3 Subsidiary or any of their respective properties or assets
that, individually or in the aggregate, would reasonably be
expected to have a T-3 Material Adverse Effect.
Section 3.12 Compliance
with Applicable Laws. Except for matters
that, individually or in the aggregate, would not reasonably be
expected to have a T-3 Material Adverse Effect, T-3 and the T-3
Subsidiaries are in compliance with all applicable Laws and T-3
Permits, including all applicable rules, regulations, directives
or policies of any Governmental Entity. To the Knowledge of T-3,
except for matters that, individually or in the aggregate, would
not reasonably be expected to have a T-3 Material Adverse
Effect, no material action, demand or investigation by or before
any Governmental Entity is pending or threatened alleging that
T-3 or a T-3 Subsidiary is not in compliance with any applicable
Law or T-3 Permit or which
15
challenges or questions the validity of any rights of the holder
of any T-3 Permit. This Section 3.12 does not relate to Tax
matters, employee benefits matters, environmental matters or
Intellectual Property Rights matters. With respect to T-3 Stock
Options: (A) each grant of a T-3 Stock Option was duly
authorized no later than the Grant Date for such option by all
necessary corporate action, including, as applicable, approval
by the T-3 Board (or a duly constituted and authorized committee
thereof), and the award agreement governing such grant was duly
delivered, and (B) the per share exercise price of each T-3
Stock Option was at least equal to the fair market value of a
share of T-3 Common Stock on the applicable Grant Date.
Section 3.13 Environmental
Matters. Except for matters that,
individually or in the aggregate, would not reasonably be
expected to have a T-3 Material Adverse Effect:
(a) T-3, the T-3 Subsidiaries and their respective
operations are in compliance with all Environmental Laws, and
neither T-3 nor any T-3 Subsidiary has received any written
notice from a Governmental Entity alleging that T-3 or any T-3
Subsidiary is in violation of, or has liability under, any
Environmental Law or any Permit required under Environmental Law;
(b) T-3 and the T-3 Subsidiaries have obtained and are in
compliance with all Permits required under Environmental Laws
for their respective operations as currently conducted, all such
Permits are valid and neither T-3 nor any T-3 Subsidiary has
been advised in writing by any Governmental Entity of any
proposed changes in the legal effectiveness or the terms and
conditions of any such Permits;
(c) as of the date of this Agreement, there are no
Environmental Claims pending or, to the Knowledge of T-3,
threatened against T-3 or any of the T-3 Subsidiaries;
(d) there have been no Releases of any Hazardous Material
onsite or, to the Knowledge of T-3, offsite on real properties
owned, operated or leased by T-3 or any of the T-3 Subsidiaries
that would reasonably be expected to form the basis of any
Environmental Claim against T-3 or any of the T-3 Subsidiaries;
(e) neither T-3 nor any of the T-3 Subsidiaries has
retained or assumed, either contractually or, to the Knowledge
of T-3, by operation of Law, any Known liabilities or
obligations that would reasonably be expected to form the basis
of any Environmental Claim against T-3 or any of the T-3
Subsidiaries; and
(f) there has been no exposure of any Person or property to
Hazardous Materials in connection with T-3’s or any of the
T-3 Subsidiaries’ respective operations that would
reasonably be expected to form the basis for a claim for damages
or compensation.
The representations and warranties of T-3 contained in this
Section 3.13 are the only representations and warranties of
T-3 in this Agreement relating to Environmental Laws, Permits
required under Environmental Laws, Environmental Claims or
Hazardous Materials, includes Releases or threatened Releases
of, or exposure to, Hazardous Materials.
Section 3.14 Contracts. (a) As
of the date of this Agreement, neither T-3 nor any T-3
Subsidiary is a party to any Contract required to be filed by
T-3 pursuant to Item 601(b)(2), (b)(4), (b)(9) or (b)(10)
of
Regulation S-K
under the Securities Act (a “Filed T-3
Contract”) that has not been so filed.
(b) Section 3.14 of the T-3 Disclosure Letter sets
forth, as of the date of this Agreement, a true and complete
list, and T-3 has made available to R&M true and complete
copies, of: (i) each agreement, understanding or
undertaking to which T-3 or any of the T-3 Subsidiaries is a
party that restricts in any material respect the ability of T-3
or any of the T-3 Subsidiaries to compete in any business or
with any Person in any geographical area, (ii) each loan
and credit agreement, note, debenture, bond, indenture or other
similar agreement pursuant to which T-3 or any of the T-3
Subsidiaries has a borrowing capacity of more than $500,000 or
outstanding Indebtedness of more than $500,000, other than any
such agreement between or among T-3 and the wholly owned T-3
Subsidiaries and (iii) each partnership, joint venture or
similar agreement or understanding to which T-3 or any of the
T-3 Subsidiaries is a party relating to the formation, creation,
operation, management or control of any partnership or joint
venture material to T-3 and the T-3 Subsidiaries, taken as a
whole. Each agreement, understanding or undertaking of the type
described in this Section 3.14(b) and each Filed T-3
Contract is referred to herein as a “T-3 Material
Contract.”
16
(c) Except for matters which, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect: (i) each T-3 Material Contract
(including, for purposes of this Section 3.14(c), any
Contract entered into after the date of this Agreement that
would have been a T-3 Material Contract if such Contract existed
on the date of this Agreement) is a valid, binding and legally
enforceable obligation of T-3 or one of the T-3 Subsidiaries, as
the case may be, and, to the Knowledge of T-3, of the other
parties thereto, except, in each case, as enforcement may be
limited by bankruptcy, insolvency, reorganization or similar
Laws affecting creditors’ rights generally and by general
principles of equity, (ii) each such T-3 Material Contract
is in full force and effect and (iii) none of T-3 or any of
the T-3 Subsidiaries is (with or without notice or lapse of
time, or both) in breach or default under any such T-3 Material
Contract and, to the Knowledge of T-3, no other party to any
such T-3 Material Contract is (with or without notice or lapse
of time, or both) in breach or default thereunder.
Section 3.15 Properties. (a) T-3
and each T-3 Subsidiary has good and valid title to, or valid
leasehold interests in, all their respective properties and
assets, except in respects that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect. All such properties and assets, other
than properties and assets in which T-3 or any of the T-3
Subsidiaries has leasehold interests, are free and clear of all
Liens, except for Liens that, individually or in the aggregate,
would not reasonably be expected to have a T-3 Material Adverse
Effect. This Section 3.15 does not relate to Intellectual
Property Rights matters, which are the subject of
Section 3.16.
(b) T-3 and each of the T-3 Subsidiaries has complied with
the terms of all leases to which it is a party, and all leases
to which T-3 or any T-3 Subsidiary is a party and under which it
is in possession are in full force and effect, except for such
noncompliance or failure to be in full force and effect that,
individually or in the aggregate, would not reasonably be
expected to have a T-3 Material Adverse Effect. T-3 and each T-3
Subsidiary is in possession of the properties or assets
purported to be leased under all its leases, except for such
failures to have such possession as, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect.
Section 3.16 Intellectual
Property. T-3 and the T-3 Subsidiaries own,
or are validly licensed or otherwise have the right to use, all
Intellectual Property Rights as used in their business as
presently conducted, except where the failure to have the right
to use such Intellectual Property Rights, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect. No actions, suits or other proceedings
are pending or, to the Knowledge of T-3, threatened that T-3 or
any of the T-3 Subsidiaries is infringing, misappropriating or
otherwise violating the rights of any Person with regard to any
Intellectual Property Right, except for matters that,
individually or in the aggregate, would not reasonably be
expected to have a T-3 Material Adverse Effect. To the Knowledge
of T-3, no Person is infringing, misappropriating or otherwise
violating the rights of T-3 or any of the T-3 Subsidiaries with
respect to any Intellectual Property Right owned by T-3 or any
of the T-3 Subsidiaries, except for such infringement,
misappropriation or violation that, individually or in the
aggregate, would not reasonably be expected to have, a T-3
Material Adverse Effect.
Section 3.17 Labor
Matters. Section 3.17 of the T-3
Disclosure Letter sets forth a true and complete list of all
material collective bargaining or other labor union Contracts
applicable to any employees of T-3 or any of the T-3
Subsidiaries as of the date of this Agreement. Neither T-3 nor
any of the T-3 Subsidiaries has breached or otherwise failed to
comply with any provision of any collective bargaining agreement
or other labor union Contract applicable to any employees of T-3
or any of the T-3 Subsidiaries, except for any breaches,
failures to comply or disputes that, individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect. Except for matters that, individually
or in the aggregate, would not reasonably be expected to have a
T-3 Material Adverse Effect, (a) there is not any, and
during the past three years there has not been any, labor
strike, dispute, work stoppage or lockout pending, or, to the
Knowledge of T-3, threatened, against or affecting T-3 or any
T-3 Subsidiary; (b) to the Knowledge of T-3, no union
organizational campaign is in progress with respect to the
employees of T-3 or any T-3 Subsidiary and no question
concerning representation of such employees exists;
(c) there are not any unfair labor practice charges or
complaints against T-3 or any T-3 Subsidiary pending, or, to the
Knowledge of T-3, threatened, before the National Labor
Relations Board; (d) there are not any pending, or, to the
Knowledge of T-3,
17
threatened, union grievances against T-3 or any T-3 Subsidiary
that reasonably could be expected to result in an adverse
determination; (e) T-3 and each T-3 Subsidiary is in
compliance with all applicable Laws with respect to labor
relations, employment and employment practices, occupational
safety and health standards, terms and conditions of employment,
payment of wages, classification of employees, immigration,
visa, work status, pay equity and workers’ compensation;
and (f) neither T-3 nor any T-3 Subsidiary has received
written or oral communication during the past three years of the
intent of any Governmental Entity responsible for the
enforcement of labor or employment laws to conduct an
investigation of or affecting T-3 or any T-3 Subsidiary and, to
the Knowledge of T-3, no such investigation is in progress.
Section 3.18 Customers
and Suppliers. As of the date of this
Agreement, T-3 has not received any notice and has no Knowledge
to the effect that any of T-3’s ten largest customers in
fiscal year 2009 (based on T-3’s consolidated revenues) may
terminate or materially alter its business with T-3, either as a
result of the transactions contemplated by this Agreement or
otherwise.
Section 3.19 Product
Warranty and Product Liability. T-3 has
delivered to R&M a true, correct and complete copy of
T-3’s standard warranty or warranties for sale of products
and/or
services, and except as expressly set forth therein, there are
no warranties, deviations from standard warranties or
commitments or obligations with respect to the return, repair,
replacement or re-performance of products
and/or
services under which T-3 could reasonably be expected to have
any material liability which has not been adequately reserved
for on the financial statements of T-3. T-3’s products and
services have not been the subject of any broad-based (excluding
customary warranty claims with respect to individual defective
products) replacement, field fix, retrofit, modification or
recall campaign, and no facts or conditions exist that are
reasonably expected to result in such a recall campaign. All of
T-3’s products have been designed, manufactured and labeled
and all of T-3’s services have been performed so as to meet
and comply with all industry and governmental standards and
specifications and applicable laws and orders currently in
effect in all material respects. All products and services that
T-3 produces or performs under contracts in which T-3 commits to
deliver products or services that are designed, manufactured,
labeled
and/or
performed so as to meet and comply with any industry
and/or
governmental standards and specifications or laws or orders
currently in effect have been designed, manufactured, labeled
and/or
performed in a manner that complies with such contractual
requirements in all material respects.
Section 3.20 Certain
Business Practices. Within the last three
years, neither T-3 nor any of its Subsidiaries, nor to
T-3’s Knowledge, any directors, officers, agents, employees
or Affiliates, when acting in such capacity on behalf of T-3 or
any such Subsidiary, has:
(a) used any corporate funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to
political activity;
(b) used any corporate funds for any unlawful payment to
foreign or domestic government officials or employees;
(c) violated any provision of the U.S. Foreign Corrupt
Practices Act;
(d) engaged in any material export transactions, or
authorized any material transactions, that violate
U.S. export control Law (including those specified in the
Export Administration Regulations and the International Traffic
in Arms Regulations) or any other material import or export Law;
(e) engaged in, or agreed to engage in, any conduct that
would be prohibited by existing or then-applicable, material
U.S. economic sanctions and embargoes, including, but not
limited to, those covering Burma (Myanmar), Cuba, Iran, North
Korea, Sudan, Syria, or Zimbabwe, or engaged in or agreed to
engage in transactions with any Person covered by the list of
Specially Designated Nationals that is maintained by the United
States; or
(f) made any false or fraudulent claim for payment to the
United States government.
T-3 has received all material export authorizations applicable
to
U.S.-sourced
goods or goods made with
U.S.-origin
technology where covered by U.S. export control Law. T-3
has established reasonable internal controls and procedures
intended to ensure compliance with the U.S. Foreign Corrupt
Practices Act.
18
Section 3.21 Inventory. Except
as would not reasonably be expected to have, individually or in
the aggregate, a Material Adverse Effect, the inventory of T-3
and its Subsidiaries: (i) is sufficient, in all material
respects, for the operations of T-3 (as conducted on the date of
this Agreement) in the ordinary course consistent with past
practice, (ii) consists of items which are, in all material
respects, good and merchantable within normal trade tolerances,
and (iii) is, in all material respects, of a quality and
quantity presently usable or saleable in the ordinary course of
the business of T-3 (subject to applicable reserves).
Section 3.22 Brokers’
Fees and Expenses. No broker, investment
banker, financial advisor or other Person, other than
Xxxxxxx & Company International (the “T-3
Financial Advisor”), the fees and expenses of which
will be paid by T-3, is entitled to any broker’s,
finder’s, financial advisor’s or other similar fee or
commission in connection with the Merger or any of the other
transactions contemplated by this Agreement based upon
arrangements made by or on behalf of T-3. T-3 has furnished to
R&M true and complete copies of all agreements between T-3
and the T-3 Financial Advisor relating to the Merger or any of
the other transactions contemplated by this Agreement.
Section 3.23 Opinion
of Financial Advisor. T-3 has received the
opinion of the T-3 Financial Advisor dated the date of this
Agreement, to the effect that, as of such date, the Merger
Consideration is fair, from a financial point of view, to the
holders of T-3 Common Stock.
Section 3.24 No
Other Representations or Warranties. Except
for the representations and warranties contained in this
Article III, R&M acknowledges that none of T-3, the
T-3 Subsidiaries or any other Person on behalf of T-3 makes any
other express or implied representation or warranty in
connection with the transactions contemplated by this Agreement.
ARTICLE IV
REPRESENTATIONS
AND WARRANTIES OF
R&M,
MERGER SUB AND MERGER SUB II
R&M, Merger Sub and Merger Sub II jointly and
severally represent and warrant to T-3 that the statements
contained in this Article IV are true and correct, except
as (a) set forth in the disclosure letter delivered by
R&M to T-3 at or before the execution and delivery by
R&M and Merger Sub of this Agreement (the “R&M
Disclosure Letter”) or (b) disclosed in the
R&M SEC Documents filed or furnished prior to the date
hereof (excluding any disclosures included in any “risk
factor” section of such R&M SEC Documents or any other
disclosures in such R&M SEC Documents to the extent they
are predictive or forward-looking in nature). The R&M
Disclosure Letter shall be arranged in numbered and lettered
sections corresponding to the numbered and lettered sections
contained in this Article IV, and the disclosure in any
section shall be deemed to qualify other sections in this
Article IV to the extent (and only to the extent) that it
is reasonably apparent from the face of such disclosure that
such disclosure also qualifies or applies to such other sections.
Section 4.01 Organization,
Standing and Power. Each of R&M and each
of R&M’s Subsidiaries (the “R&M
Subsidiaries”) is duly organized, validly existing and
in good standing under the laws of the jurisdiction in which it
is organized (in the case of good standing, to the extent such
jurisdiction recognizes such concept), except, in the case of
the R&M Subsidiaries, where the failure to be so organized,
existing or in good standing, individually or in the aggregate,
would not reasonably be expected to have a R&M Material
Adverse Effect. Each of R&M and the R&M Subsidiaries
has all requisite power and authority and possesses all Permits
necessary to enable it to own, lease or otherwise hold its
properties and assets and to conduct its businesses as presently
conducted (the “R&M Permits”), except
where the failure to have such power or authority or to possess
R&M Permits, individually or in the aggregate, would not
reasonably be expected to have a R&M Material Adverse
Effect. Each of R&M and the R&M Subsidiaries is duly
qualified or licensed to do business in each jurisdiction where
the nature of its business or the ownership or leasing of its
properties makes such qualification necessary, other than in
such jurisdictions where the failure to be so qualified or
licensed, individually or in the aggregate, would not reasonably
be expected to have a R&M Material Adverse Effect. R&M
has delivered or made available to T-3, prior to execution of
this Agreement, true and complete copies of: (a) the
Amended Articles of Incorporation of R&M in effect as of
the date of this Agreement (the
19
“R&M Articles”) and the Code of
Regulations of R&M in effect as of the date of this
Agreement (the “R&M Code”), (b) the
certificate of incorporation and bylaws of Merger Sub in effect
as of the date of this Agreement, and (c) the certificate
of incorporation and bylaws of Merger Sub II in effect as
of the date of this Agreement.
Section 4.02 R&M
Subsidiaries. (a) All the outstanding
shares of capital stock or voting securities of, or other equity
interests in, each R&M Subsidiary have been validly issued
and are fully paid and nonassessable and are (other than
directors qualifying shares and shares held by natural persons
pursuant to requirements of Law of
non-U.S. jurisdictions)
owned by R&M, by another R&M Subsidiary or by R&M
and another R&M Subsidiary, free and clear of all Liens and
free of any other restriction (including any restriction on the
right to vote, sell or otherwise dispose of such capital stock,
voting securities or other equity interests), except for
restrictions imposed by applicable securities Laws. R&M has
provided to T-3 a true and complete list of all R&M
Subsidiaries as of the date of this Agreement.
(b) Except for the capital stock and voting securities of,
and other equity interests in, the R&M Subsidiaries,
neither R&M nor any R&M Subsidiary owns, directly or
indirectly, any capital stock or voting securities of, or other
equity interests in, or any interest convertible into or
exchangeable or exercisable for, any capital stock or voting
securities of, or other equity interests in, any firm,
corporation, partnership, company, limited liability company,
trust, joint venture, association or other entity.
Section 4.03 Capital
Structure. (a) As of the date of this
Agreement, the authorized capital shares of R&M consist of
80,000,000 R&M Common Shares (the “R&M Capital
Shares”). At the close of business on October 5,
2010: (i) 32,989,143 R&M Common Shares were issued and
outstanding, (ii) 2,045,748 R&M Common Shares were
held by R&M as treasury shares, and (iii) 1,117,580
R&M Common Shares were reserved for issuance pursuant to
the R&M Stock Plans, of which: (A) 740,057 shares
were issuable upon exercise of outstanding R&M Stock
Options, (B) 72,610 shares were subject to outstanding
R&M Restricted Stock Units, and
(C) 105,154 shares were subject to outstanding
R&M Performance Share Units (assuming settlement of
outstanding awards based on maximum achievement of applicable
performance goals and the participants’ continued
employment for the time specified in the respective R&M
Performance Share Units) (together with outstanding R&M
Stock Options and R&M Restricted Stock Units,
“R&M Stock-Based Awards”). Except as set
forth in this Section 4.03(a), at the close of business on
October 5, 2010, no shares of capital stock or voting
securities of, or other equity interests in, R&M were
issued, reserved for issuance or outstanding. From the close of
business on October 5, 2010 to the date of this Agreement,
there have been no issuances by R&M of shares of capital
stock or voting securities of, or other equity interests in,
R&M, other than the issuance of R&M Common Shares:
(A) upon the exercise of R&M Stock Options outstanding
at the close of business on October 5, 2010, or
(B) upon the vesting of R&M Restricted Stock Units or
R&M Performance Share Units outstanding at the close of
business on October 5, 2010, in each case in accordance
with their terms in effect on October 5, 2010.
(b) All outstanding R&M Capital Shares and all
R&M Capital Shares that may be issued pursuant to the
instruments or plans described in Section 4.03(a) are, or
will be when issued, duly authorized, validly issued, fully paid
and nonassessable and not subject to, or issued in violation of,
any purchase option, call option, right of first refusal,
preemptive right, subscription right or any similar right under
any provision of the
Ohio General Corporation Law
(“
OGCL”), the R&M Articles, the R&M
Code or any Contract to which R&M is a party or otherwise
bound. The R&M Common Shares constituting the Stock
Consideration will be, when issued, duly authorized, validly
issued, fully paid and nonassessable and not subject to, or
issued in violation of, any purchase option, call option, right
of first refusal, preemptive right, subscription right or any
similar right under any provision of the OGCL, the R&M
Articles, the R&M Code or any Contract to which R&M is
a party or otherwise bound. Except as set forth in this
Section 4.03, as of the close of business on
October 5, 2010, there are not issued, reserved for
issuance or outstanding, and there are not any outstanding
obligations of R&M or any R&M Subsidiary to issue,
deliver or sell, or cause to be issued, delivered or sold:
(i) any capital stock of R&M or any R&M
Subsidiary or any securities of R&M or any R&M
Subsidiary convertible into or exchangeable or exercisable for
shares of capital stock or voting securities of, or other equity
interests in, R&M or any R&M Subsidiary, (ii) any
warrants, calls, options or other rights to acquire from
R&M or any R&M Subsidiary, or any other obligation of
R&M or any R&M Subsidiary to issue, deliver or sell,
or cause to
20
be issued, delivered or sold, any capital stock or voting
securities of, or other equity interests in, R&M or any
R&M Subsidiary, or (iii) any rights issued by or other
obligations of R&M or any R&M Subsidiary that are
linked in any way to the price of any class of R&M Capital
Shares or any shares of capital stock of any R&M
Subsidiary, the value of R&M, any R&M Subsidiary or
any part of R&M or any R&M Subsidiary or any dividends
or other distributions declared or paid on any shares of capital
stock of R&M or any R&M Subsidiary. Except as set
forth above in this Section 4.03 or in connection with
R&M Stock-Based Awards, as of the close of business on
October 5, 2010, there are not any outstanding obligations
of R&M or any of the R&M Subsidiaries to repurchase,
redeem or otherwise acquire any shares of capital stock or
voting securities or other equity interests of R&M or any
R&M Subsidiary or any securities, interests, warrants,
calls, options or other rights referred to in clause (i),
(ii) or (iii) of the immediately preceding sentence.
With respect to R&M Stock Options: (A) each grant of a
R&M Stock Option was duly authorized no later than the
Grant Date of such by all necessary corporate action, including,
as applicable, approval by the R&M Board (or a duly
constituted and authorized committee thereof), and the award
agreement governing such grant was duly delivered, and
(B) the per share exercise price of each R&M Stock
Option was at least equal to the fair market value of a R&M
Common Share on the applicable Grant Date. Except as set forth
above in this Section 4.03, there are no bonds, debentures,
notes or other Indebtedness of R&M having the right to vote
(or convertible into, or exchangeable for, securities having the
right to vote) on any matters on which shareholders of R&M
may vote (“R&M Voting Debt”). Neither
R&M nor any of the R&M Subsidiaries is a party to any
voting agreement with respect to the voting of any capital stock
or voting securities of, or other equity interests in, R&M.
Neither R&M nor any of the R&M Subsidiaries is a party
to any agreement pursuant to which any Person is entitled to
elect, designate or nominate any director of R&M.
Section 4.04 Authority;
Execution and Delivery;
Enforceability. (a) Each of R&M,
Merger Sub and Merger Sub II has all requisite corporate
power and authority, as applicable, to execute and deliver this
Agreement, to perform its obligations hereunder and to
consummate the Merger and the Second Merger (if required
pursuant to Section 1.05) and the other transactions
contemplated by this Agreement, subject, in the case of the
Merger and the other transactions contemplated hereby, including
the issuance of the R&M Common Shares constituting the
Stock Consideration (the “Share Issuance”), to
the receipt of the R&M Shareholder Approval and, in the
case of the Merger, to the approval of the Merger and adoption
of this Agreement by R&M, as the sole stockholder of Merger
Sub and, in the case of the Second Merger, to the approval of
the Second Merger and adoption of this Agreement by R&M, as
the sole stockholder of Merger Sub II. The R&M Board has
adopted resolutions, by a vote at a meeting duly called at which
a quorum of directors of R&M was present:
(i) approving this Agreement, (ii) determining that
entering into this Agreement is in the best interests of
R&M and its shareholders, (iii) declaring the Merger
advisable, and (iv) recommending that R&M’s
shareholders vote in favor of the Merger and the other
transactions contemplated hereby, including the Share Issuance,
and directing that the Merger and the other transactions
contemplated hereby, including the Share Issuance, be submitted
to R&M’s shareholders for approval at a duly held
meeting of such shareholders for such purpose (the
“R&M Shareholders Meeting”). Such
resolutions have not been amended or withdrawn as of the date of
this Agreement. The Board of Directors of Merger Sub has adopted
resolutions, by unanimous written consent: (i) approving
this Agreement, (ii) declaring advisable the Merger on
substantially the terms and conditions set forth in this
Agreement and determining that the Merger is in the best
interests of Merger Sub and R&M, as its sole stockholder,
and (iii) recommending that R&M, as sole stockholder
of Merger Sub, approve the Merger and adopt this Agreement, and
directing that the Merger be submitted to R&M, as sole
stockholder of Merger Sub, for approval. The Board of Directors
of Merger Sub II has adopted resolutions, by unanimous
written consent: (i) approving this Agreement,
(ii) declaring advisable the Second Merger on substantially
the terms and conditions set forth in this Agreement and
determining that the Second Merger is in the best interests of
Merger Sub II and R&M, as its sole stockholder, and
(iii) recommending that R&M, as sole stockholder of
Merger Sub II, approve the Second Merger and adopt this
Agreement, and directing that the Second Merger be submitted to
R&M, as sole stockholder of Merger Sub II, for approval.
Such resolutions of the Boards of Directors of Merger Sub and
Merger Sub II have not been amended or withdrawn as of the
date of this Agreement. R&M, as sole stockholder of Merger
Sub and Merger Sub II, will, immediately following the execution
and delivery of this Agreement by each of the parties hereto,
approve the Merger and the Second Merger, respectively, and
adopt this Agreement. Except:
21
(A) for the approval of the Merger and the other
transactions contemplated hereby, including the Share Issuance,
by the affirmative vote of the holders of two-thirds of the
outstanding R&M Common Shares entitled to vote thereon at
the R&M Shareholders Meeting (the “R&M
Shareholder Approval”), and (B) solely in the case
of the Merger and the Second Merger, for the approval of the
Merger and the Second Merger and adoption of this Agreement by
R&M, as the sole stockholder of Merger Sub and the sole
member of Merger Sub II, respectively, no other corporate
proceedings on the part of R&M, Merger Sub or Merger
Sub II are necessary to authorize, adopt or approve, as
applicable, this Agreement or to consummate the Merger and the
Second Merger (if required pursuant to Section 1.05) and
the other transactions contemplated by this Agreement (except
for the execution and filing of the appropriate merger documents
as required by the DGCL). Each of R&M, Merger Sub and
Merger Sub II has duly executed and delivered this
Agreement and, assuming the due authorization, execution and
delivery by T-3, this Agreement constitutes a legal, valid and
binding obligation of each of R&M, Merger Sub and Merger
Sub II, enforceable against it in accordance with its terms,
subject as to enforceability, to bankruptcy, insolvency,
reorganization, moratorium, and other Laws of general
applicability relating to or affecting creditors rights and to
general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at
law).
(b) The R&M Board has adopted such resolutions as are
necessary to render inapplicable to any transaction occurring
after the Effective Time the provisions of Section 1704.02
of the OGCL to any holder of T-3 Common Stock that becomes an
“interested shareholder” (as defined in
Section 1704.01 of the OGCL) of R&M as a result of
such holder’s receipt of the Stock Consideration. No other
“interested shareholder,” “fair price,”
“moratorium,” “control share acquisition” or
other similar antitakeover statute or similar statute or
regulation, or similar provision or term of the R&M
Articles or R&M Code, applies with respect to R&M,
Merger Sub or Merger Sub II with respect to this Agreement,
the Merger, the Second Merger (if required pursuant to
Section 1.05) or any of the other transactions contemplated
by this Agreement.
Section 4.05 No
Conflicts; Consents. (a) The execution
and delivery by each of R&M, Merger Sub and Merger
Sub II of this Agreement does not, and the performance by
it of its obligations hereunder and the consummation of the
Merger, the Second Merger (if required pursuant to
Section 1.05) and the other transactions contemplated by
this Agreement will not: (i) conflict with or result in any
violation of any provision of the R&M Articles, the
R&M Code or the comparable charter, bylaws or other
organizational documents of any material R&M Subsidiary,
assuming that the R&M Shareholder Approval is obtained,
(ii) conflict with, or result in any violation of or
default (with or without notice or lapse of time, or both)
under, give rise to a right of termination, cancellation or
acceleration of, give rise to any obligation to make an offer to
purchase or redeem any Indebtedness or capital stock or any loss
of a material benefit under, or result in the creation of any
Lien upon any of the properties or assets of R&M or any
R&M Subsidiary under any Contract to which R&M or any
R&M Subsidiary is a party or by which any of their
respective properties or assets is bound or any R&M Permit
or (iii) subject to the filings and other matters referred
to in Section 4.05(b), conflict with or result in any
violation of any Judgment or Law, in each case, applicable to
R&M or any R&M Subsidiary or their respective
properties or assets, assuming that the R&M Shareholder
Approval is obtained, other than, in the case of
clauses (ii) and (iii) above, any matters that,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect and would
not prevent or materially impede, interfere with, hinder or
delay the consummation of the Merger or the Second Merger (if
required pursuant to Section 1.05).
(b) No Consent of or from, or registration, declaration,
notice or filing made to or with any Governmental Entity is
required to be obtained or made by or with respect to R&M
or any R&M Subsidiary in connection with the execution and
delivery of this Agreement or its performance of its obligations
hereunder or the consummation of the Merger, the Second Merger
(if required pursuant to Section 1.05) and the other
transactions contemplated by this Agreement, other than: (i)
(A) the filing with the SEC of the Joint Proxy Statement,
(B) the filing with the SEC, and declaration of
effectiveness under the Securities Act, of the
Form S-4,
and (C) the filing with the SEC of such reports under, and
such other compliance with, the Exchange Act, and the Securities
Act, and the rules and regulations thereunder, as may be
required in connection with this Agreement, the Merger, the
Second Merger (if required pursuant to Section 1.05) and
the other transactions contemplated by this Agreement,
(ii) compliance with and filings under the HSR Act, and
22
such other Consents, registrations, declarations, notices or
filings as are required to be made or obtained under any foreign
antitrust, competition, trade regulation or similar Laws,
(iii) the filing of the Certificate of Merger (and, if the
Second Merger is required pursuant to Section 1.05, a
Certificate of Merger in accordance with the DGCL with respect
to the Second Merger) with, and acceptance for record by, the
Delaware Secretary of State and appropriate documents with the
relevant authorities of the other jurisdictions in which
R&M and T-3 are qualified to do business, (iv) such
Consents, registrations, declarations, notices or filings as are
required to be made or obtained under the securities or
“blue sky” laws or takeover laws, (v) such
Consents from, or registrations, declarations, notices or
filings made to or with, any Governmental Entities (other than
with respect to securities, antitrust, competition, trade
regulation or similar Laws), in each case as may be required in
connection with this Agreement, the Merger, the Second Merger
(if required pursuant to Section 1.05) or the other
transactions contemplated by this Agreement, (vi) such
filings with and approvals of the NYSE as are required to permit
the listing of the Stock Consideration, and (vii) such
other matters that, individually or in the aggregate, would not
reasonably be expected to have a R&M Material Adverse
Effect and would not prevent or materially impede, interfere
with, hinder or delay the consummation of the Merger or the
Second Merger.
Section 4.06 SEC
Documents; Undisclosed
Liabilities. (a) R&M has furnished
or filed all reports, schedules, forms, statements and other
documents (including exhibits and other information incorporated
therein) required to be furnished or filed by R&M with the
SEC since September 1, 2009 (such documents, together with
any documents filed with or furnished to the SEC during such
period by R&M on a voluntary basis on a Current Report on
Form 8-K,
but excluding the Joint Proxy Statement, the
Form S-4
and any documents that are not publicly available, being
collectively referred to as the “R&M SEC
Documents”).
(b) Each R&M SEC Document: (i) at the time filed,
complied in all material respects with the requirements of the
Exchange Act or the Securities Act, as the case may be, and the
rules and regulations of the SEC promulgated thereunder
applicable to such R&M SEC Document, and (ii) did not
at the time it was filed (or if amended or superseded by a
filing or amendment prior to the date of this Agreement, then at
the time of such filing or amendment) 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. Each of the consolidated
financial statements of R&M included in the R&M SEC
Documents complied at the time it was filed as to form in all
material respects with applicable accounting requirements and
the published rules and regulations of the SEC with respect
thereto, was prepared in accordance with GAAP (except, in the
case of unaudited statements, as permitted by
Form 10-Q
of the SEC) applied on a consistent basis during the periods
involved (except as may be indicated in the notes thereto) and
fairly presented, in all material respects, the consolidated
financial position of R&M and its consolidated Subsidiaries
as of the dates thereof and the consolidated results of their
operations and cash flows for the periods indicated (subject, in
the case of unaudited statements, to normal year-end audit
adjustments).
(c) There are no liabilities of R&M or any R&M
Subsidiary of any kind whatsoever, whether accrued, contingent,
absolute, determined, determinable or otherwise, other than:
(i) liabilities adequately provided for on the consolidated
balance sheet of R&M dated as of August 31, 2009
(including the notes thereto) contained in R&M’s
Annual Report on
Form 10-K
for the year ended August 31, 2009; (ii) liabilities
incurred in the ordinary course of business subsequent to
August 31, 2009; (iii) liabilities for fees and
expenses incurred in connection with the transactions
contemplated by this Agreement; (iv) liabilities incurred
as permitted under Section 5.01(b); (v) liabilities
contemplated by Sections 4.09, 4.10, 4.11, 4.13 and 4.16;
and (vi) liabilities not contemplated by clauses (i)
through (v) which would not reasonably be expected to have,
individually or in the aggregate, a R&M Material Adverse
Effect.
(d) Each of the chief executive officer of R&M and the
chief financial officer of R&M (or each former chief
executive officer of R&M and each former chief financial
officer of R&M, as applicable) has made all applicable
certifications required by
Rule 13a-14
or 15d-14
under the Exchange Act and Sections 302 and 906 of SOX with
respect to the R&M SEC Documents, and the statements
contained in such certifications are true and accurate. For
purposes of this Agreement, “chief executive officer”
and “chief financial officer” shall have the meanings
given to such terms in SOX. None of R&M or any of the
R&M Subsidiaries has outstanding, or
23
has arranged any outstanding, “extensions of credit”
to directors or executive officers in violation of
Section 402 of SOX.
(e) R&M maintains a system of “internal control
over financial reporting” (as defined in
Rules 13a-15(f)
and
15d-15(f) of
the Exchange Act) sufficient to provide reasonable assurance:
(i) that transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP,
consistently applied, (ii) that transactions are executed
only in accordance with the authorization of management, and
(iii) regarding prevention or timely detection of the
unauthorized acquisition, use or disposition of R&M’s
properties or assets.
(f) The “disclosure controls and procedures” (as
defined in
Rules 13a-15(e)
and
15d-15(e) of
the Exchange Act) utilized by R&M are reasonably designed
to ensure that material information (both financial and
non-financial) required to be disclosed by R&M in the
reports that it files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time
periods specified in the rules and forms of the SEC and that all
such information required to be disclosed is accumulated and
communicated to the management of R&M, as appropriate, to
allow timely decisions regarding required disclosure and to
enable the chief executive officer and chief financial officer
of R&M to make the certifications required under the
Exchange Act with respect to such reports.
(g) Neither R&M nor any of the R&M Subsidiaries
is a party to, or has any commitment to become a party to, any
joint venture, off-balance sheet partnership or any similar
Contract (including any Contract or arrangement relating to any
transaction or relationship between or among R&M and any of
the R&M Subsidiaries, on the one hand, and any
unconsolidated Affiliate, including any structured finance,
special purpose or limited purpose entity or Person, on the
other hand, or any “off-balance-sheet arrangements”
(as defined in Item 303(a) of
Regulation S-K
under the Exchange Act)), where the result, purpose or intended
effect of such Contract is to avoid disclosure of any material
transaction involving, or material liabilities of, R&M or
any of the R&M Subsidiaries in R&M’s or such
R&M Subsidiary’s published financial statements or
other R&M SEC Documents.
(h) Since September 1, 2009, none of R&M,
R&M’s independent accountants, the R&M Board or
the audit committee of the R&M Board has received any oral
or written notification of any: (i) “significant
deficiency” in the internal controls over financial
reporting of R&M, (ii) “material weakness”
in the internal controls over financial reporting of R&M,
or (iii) fraud, whether or not material, that involves
management or other employees of R&M who have a significant
role in the internal controls over financial reporting of
R&M. For purposes of this paragraph (h), the terms
“significant deficiency” and “material
weakness” shall have the meanings assigned to them in
Auditing Standard No. 5 of the Public Company Accounting
Oversight Board, as in effect on the date of this Agreement.
(i) None of the R&M Subsidiaries is, or has at any
time since September 1, 2009 been, subject to the reporting
requirements of Section 13(a) or 15(d) of the Exchange Act.
Section 4.07 Information
Supplied. None of the information supplied or
to be supplied by R&M, Merger Sub or Merger Sub II for
inclusion or incorporation by reference in: (i) the
Form S-4
will, at the time the
Form S-4
is filed with the SEC, at any time it is amended or supplemented
or at the time it is declared effective under the Securities
Act, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading or
(ii) the Joint Proxy Statement will, at the date it is
first mailed to each of R&M’s shareholders and
T-3’s stockholders or at the time of each of the R&M
Shareholders Meeting and the T-3 Stockholders Meeting, contain
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 therein, in light of the
circumstances under which they are made, not misleading. The
Form S-4
will comply as to form in all material respects with the
requirements of the Securities Act and the rules and regulations
thereunder, except that no representation is made by R&M,
Merger Sub or Merger Sub II with respect to statements made
or incorporated by reference therein based on information
supplied by T-3 for inclusion or incorporation by reference
therein. The Joint Proxy Statement will comply as to form in all
material respects with the requirements of the Exchange Act and
the rules and regulations thereunder, except that no
representation is
24
made by R&M, Merger Sub or Merger Sub II with respect
to statements made or incorporated by reference therein based on
information supplied by T-3 for inclusion or incorporation by
reference therein.
Section 4.08 Absence
of Certain Changes or Events. From
September 1, 2009 to the date of this Agreement, each of
R&M and the R&M Subsidiaries has conducted its
respective business in the ordinary course in all material
respects, and during such period there has not occurred:
(a) any event or development that, individually or in the
aggregate, has had or would reasonably be expected to have a
R&M Material Adverse Effect;
(b) any authorization, declaration, setting aside or
payment of any dividend or other distribution (whether in cash,
stock or property or any combination thereof) in respect of any
capital stock or voting securities of, or other equity interests
in, R&M or the capital stock or voting securities of, or
other equity interests in, any of the R&M Subsidiaries
(other than (i) regular quarterly cash dividends in an
amount not exceeding $0.0425 per R&M Common Share and
(ii) dividends or other distributions by a direct or
indirect wholly owned R&M Subsidiary to its shareholders or
other equity holders) or any repurchase for value by R&M of
any capital stock or voting securities of, or other equity
interests in, R&M or the capital stock or voting securities
of, or other equity interests in, any of the R&M
Subsidiaries;
(c) any split, reverse split, combination, subdivision or
reclassification of any capital stock or voting securities of,
or other equity interests in, R&M, securities convertible
into or exercisable or exchangeable for capital stock or voting
securities of, or other equity interests in, R&M or any
issuance or the authorization of any issuance of any other
securities in respect of, in lieu of or in substitution for
shares of capital stock or voting securities of, or other equity
interests in, R&M;
(d) any incurrence of material Indebtedness for borrowed
money or any guarantee of such Indebtedness for another Person
(other than R&M or a wholly owned R&M Subsidiary), or
any issue or sale of debt securities, warrants or other rights
to acquire any debt security of R&M or any R&M
Subsidiary, other than Indebtedness incurred in the ordinary
course of business or Indebtedness incurred under any credit
facility of R&M in existence on the date hereof;
(e) (i) any transfer, lease, license, sale, mortgage,
pledge or other disposal or encumbrance of any of
R&M’s or R&M’s Subsidiaries’ property
or assets outside of the ordinary course of business consistent
with past practice with a fair market value in excess of (in the
aggregate, for all such transactions) $5,000,000 or
(ii) any acquisition of any business, whether by merger,
consolidation, purchase of property or assets or otherwise;
(f) except as required to comply with applicable Law or to
comply with any R&M Benefit Plan (including any award
agreement thereunder) in effect as of September 1, 2009,
any: (i) establishing, adopting, entering into, terminating
or amending, or taking of any action to accelerate the vesting
or payment of, any compensation or benefits under, any material
collective bargaining agreement or R&M Benefit Plan (or any
award thereunder); provided, that with respect to the
amendment of any R&M Benefit Plan that is an “employee
welfare benefit plan” (as defined in Section 3(1) of
ERISA), this clause (i) shall apply only to material
amendments of such plan, (ii) increasing in any material
respect the compensation or benefits of, or paying any
discretionary bonus of any kind or amount whatsoever to, any
current or former director, officer, employee or independent
contractor of R&M or any R&M Subsidiary, except for
increases in regular cash compensation in the ordinary course of
business consistent with past practice for employees of R&M
or any R&M Subsidiary who are not executive officers,
(iii) paying of any benefit or amount not required under
any R&M Benefit Plan as in effect on September 1,
2009, (iv) granting or paying of any change in control,
retention, severance or termination compensation or benefits,
(v) taking of any action to fund or in any other way secure
the payment of compensation or benefits under any R&M
Benefit Plan, (vi) changing of any actuarial or other
assumption used to calculate funding obligations with respect to
any R&M Pension Plan or (vii) changing the manner in
which contributions to any R&M Pension Plan are made or the
basis on which such contributions are determined;
25
(g) any change in accounting methods, principles or
practices by R&M or any R&M Subsidiary, except insofar
as may have been required by a change in GAAP; or
(h) With respect to all Taxes payable to any federal, state
or local government or other Governmental Entity in the United
States: (i) any material election with respect to Taxes,
(ii) any changes to any such election or existing election,
or (iii) any settlement or compromise by R&M or any
R&M Subsidiary of any material Tax liability or refund,
other than, in each case, in the ordinary course of business.
Section 4.09 Taxes. With
respect to all Taxes payable to any federal, state or local
government or other Governmental Entity in the United States:
(a) (i) R&M and each R&M Subsidiary has
timely filed, taking into account any extensions, all material
Tax Returns required to have been filed and such Tax Returns are
accurate and complete in all material respects; (ii) each
of R&M and each R&M Subsidiary has paid all material
Taxes required to have been paid by it other than Taxes that are
not yet due or that are being contested in good faith in
appropriate proceedings; (iii) no deficiency for any Tax
has been asserted or assessed by a taxing authority against
R&M or any R&M Subsidiary which deficiency has not
been paid or is not being contested in good faith in appropriate
proceedings; and (iv) there are no Tax Liens on the assets
of R&M or any R&M Subsidiary (other than Liens for
Taxes not yet due and payable); (v) there are no
outstanding waivers or agreements extending the statute of
limitations for any period with respect to any Tax to which
R&M or any R&M Subsidiary is subject; and
(vi) all Taxes not yet due and payable by R&M or a
R&M Subsidiary (or any other corporation consolidated with
R&M or any R&M Subsidiary) have been properly accrued
or adequately reserved on the books of account of R&M in
accordance with GAAP.
(b) No Tax Return of R&M or any R&M Subsidiary is
under audit or examination by any taxing authority, and no
written (or, to the Knowledge of R&M, oral) notice of such
an audit or examination has been received by R&M or any
R&M Subsidiary. (i) No deficiencies for any Taxes have
been asserted in writing against R&M or any R&M
Subsidiary, (ii) no Information Document Request,
questionnaire or other written communication has been received
by R&M or any R&M Subsidiary that would cause a
reasonable person to believe that a deficiency for Taxes will be
asserted by any Governmental Entity and (iii) no requests
for waivers of the time to assess any such Taxes are pending. No
other procedure, proceeding or contest of any refund or
deficiency in respect of Taxes is pending in or on appeal from
any Governmental Entity.
(c) R&M and each R&M Subsidiary has complied in
all material respects with all applicable Laws relating to the
withholding of Taxes.
(d) Neither R&M nor any R&M Subsidiary is a party
to or is otherwise bound by any material Tax sharing, allocation
or Tax indemnification agreement or arrangement (other than such
an agreement or arrangement exclusively between or among
R&M and wholly owned R&M Subsidiaries).
(e) Within the past three years, neither R&M nor any
R&M Subsidiary has been a “distributing
corporation” or a “controlled corporation” in a
distribution intended to qualify for tax-free treatment under
Section 355 of the Code.
(f) For all Tax years and periods since January 1,
2006, neither R&M nor any R&M Subsidiary has
participated in or been a party to a transaction that, as of the
date of this Agreement, constitutes a “listed
transaction” or “reportable transaction” within
the meaning of Section 6011 of the Code and applicable
Treasury Regulations thereunder (or a similar provision of state
law).
(g) Neither R&M nor any R&M Subsidiary has taken
any action nor, to the Knowledge of R&M, does there exist
any fact that would reasonably be expected to prevent the Merger
and the Second Merger (if required by Section 1.05) from
qualifying for the Intended Tax Treatment.
(h) For all Tax years and periods since January 1,
2003, no disallowance of a deduction under Section 162(m)
of the Code for any amount paid or payable by R&M or any
R&M Subsidiary as employee compensation, whether under any
contract, plan, program or arrangement, understanding or
otherwise, has or is expected to occur.
26
(i) R&M has provided to T-3 the following information
as of the most recent practicable date: (i) the amount of
any tax attribute (e.g., net operating loss, net capital loss,
unused investment, minimum, or other tax credit, overall
built-in loss or excess charitable contribution deduction) of
R&M or any R&M Subsidiary that carries over to a Tax
year following the Closing Date; (ii) a list of each
jurisdiction in which R&M or any R&M Subsidiary is
required to file Tax Returns; (iii) a complete and correct
copy of each Tax Return of R&M and any R&M Subsidiary
for each fiscal year ending in 2006 or thereafter; (iv) the
most recent Tax years through which each Governmental Entity
having jurisdiction over Taxes payable by R&M or any
R&M Subsidiary has completed its examination of R&M or
such R&M Subsidiary; and (v) a list of all
jurisdictions with which R&M or any R&M Subsidiary has
a Tax abatement or other Tax reduction Contract in effect
(correct and complete copies of all of which have been provided
to T-3).
(j) Since January 1, 2007, neither R&M nor any
R&M Subsidiary has filed a consolidated or combined Tax
Return for any U.S. federal income Tax purpose with another
company (other than R&M or another R&M Subsidiary).
(k) (i) No power of attorney which is currently in
force has been granted by or with respect to R&M or any
R&M Subsidiary in connection with any matter related to
Taxes, (ii) neither R&M nor any R&M Subsidiary
has engaged in a like-kind exchange within the meaning of
Section 1031 of the Code or received cash proceeds in
connection with an involuntary conversion within the meaning of
Section 1033 of the Code, with respect to which the
replacement property could be purchased on or after the Closing
Date; (iii) with respect to any compensation arrangements
of R&M or any R&M Subsidiary subject to 409A of the
Code, the requirements of Section 409A have been satisfied
and all necessary amendments to any arrangements subject to such
provisions have been adopted by the appropriate Persons;
(iv) to the extent that R&M or any R&M Subsidiary
is the owner of any life insurance agreement, there is no
borrowing against such policy; (v) neither R&M nor any
R&M Subsidiary is a party to a split-dollar life insurance
arrangement, as defined in Federal Income Tax
Regulation 1.61-22(b);
and (vi) neither R&M nor any R&M Subsidiary has
participated in or cooperated with an international boycott
within the meaning of Section 999 of the Code.
(l) R&M has provided to T-3: (i) complete and
accurate copies of all Tax opinions, audit reports, letter
rulings, technical advice memoranda, and similar items obtained
or received since January 1, 2006 relating to Taxes; and
(ii) a description of each Tax item related to a tax
position of R&M that has been reflected in the consolidated
statements of R&M pursuant to FASB Interpretation 48,
Accounting for Uncertainty in Income Taxes for any period after
January 1, 2006.
Section 4.10 Benefits
Matters; ERISA Compliance. (a) R&M
has delivered or made available to T-3 true and complete copies
of: (i) all material R&M Benefit Plans existing as of
the date of this Agreement or, in the case of any unwritten
material R&M Benefit Plan existing as of the date of this
Agreement, a written description thereof, including any
amendment thereto, (ii) the most recent annual report on
Form 5500 or such similar report, statement or information
return required to be filed with or delivered to any
Governmental Entity, if any, in each case, with respect to each
material R&M Benefit Plan, (iii) each trust,
insurance, annuity or other funding Contract relating to any
material R&M Benefit Plan, and (iv) the most recent
financial statements and actuarial or other valuation reports
for each R&M Benefit Plan (if any). For purposes of this
Agreement, “R&M Benefit Plans” means,
collectively: (A) all “employee pension benefit
plans” (as defined in Section 3(2) of ERISA)
(“R&M Pension Plans”), “employee
welfare benefit plans” (as defined in Section 3(1) of
ERISA) and all other material bonus, pension, profit sharing,
retirement, deferred compensation, incentive compensation,
equity or equity-based compensation, severance, retention,
termination, change in control, disability, vacation, death
benefit, hospitalization, medical, dental, life insurance or
other material compensation or benefit plans, arrangements,
policies, Contracts, programs or understandings providing
compensation or benefits (other than foreign or domestic
statutory programs), in each case, sponsored, maintained,
contributed to or required to be maintained or contributed to by
R&M, any R&M Subsidiary or any other Person that,
together with R&M, is treated as a single employer under
Section 414 of the Code (each, a “R&M Commonly
Controlled Entity”) for the benefit of any current or
former directors, officers, employees, independent contractors
or consultants of R&M or any R&M Subsidiary or with
respect to which R&M or any R&M
27
Commonly Controlled Entity has any liability (contingent or
otherwise), and (B) all material employment, consulting,
bonus, incentive compensation, deferred compensation, equity or
equity-based compensation, indemnification, severance,
retention, change of control or termination agreements or
arrangements (including collective bargaining agreements)
between R&M or any R&M Subsidiary and any current or
former directors officer, employee, independent contractor or
consultant of R&M or any R&M Subsidiary.
(b) All R&M Pension Plans have been the subject of,
have timely applied for or have not been eligible to apply for,
as of the date of this Agreement, determination letters or
opinion letters (as applicable) from the IRS or a
non-U.S. Governmental
Entity (as applicable) to the effect that such R&M Pension
Plans and the trusts created thereunder are qualified and exempt
from Taxes under Sections 401(a) and 501(a) of the Code or
other applicable Law, and no such determination letter or
opinion letter has been revoked nor, to the Knowledge of
R&M, has revocation been threatened, nor has any such
R&M Pension Plan been amended since the date of its most
recent determination letter or opinion letter (or application
therefor) in any respect that would adversely affect its
qualification.
(c) Except for matters that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect: (i) no R&M Pension Plan,
other than any R&M Pension Plan that is a
“multiemployer plan” within the meaning of
Section 4001(a)(3) of ERISA (a “R&M
Multiemployer Pension Plan”), had, as of the respective
last annual valuation date for each such R&M Pension Plan,
an “unfunded benefit liability” (within the meaning of
Section 4001(a)(18) of ERISA), based on actuarial
assumptions that have been furnished to T-3, (ii) none of
the R&M Pension Plans has failed to meet any “minimum
funding standards” (as such term is defined in
Section 302 of ERISA or Section 412 of the Code),
whether or not waived, (iii) none of such R&M Benefit
Plans or related trusts is the subject of any proceeding or
investigation by any Person, including any Governmental Entity,
that could be reasonably expected to result in a termination of
such R&M Benefit Plan or trust or any other material
liability to R&M or any R&M Subsidiary,
(iv) there has not been any “reportable event”
(as that term is defined in Section 4043 of ERISA and as to
which the notice requirement under Section 4043 of ERISA
has not been waived) with respect to any R&M Benefit Plan
during the last six years, and (v) none of R&M, any
R&M Subsidiary or any R&M Commonly Controlled Entity
has, or within the past six years had, contributed to, been
required to contribute to, or has any liability (including
“withdrawal liability” within the meaning of
Title IV of ERISA) with respect to, any R&M
Multiemployer Pension Plan.
(d) With respect to each material R&M Benefit Plan
that is an employee welfare benefit plan, such R&M Benefit
Plan (including any R&M Benefit Plan covering retirees or
other former employees) may be amended to reduce benefits or
limit the liability of R&M or the R&M Subsidiaries or
terminated, in each case, without material liability to R&M
and the R&M Subsidiaries on or at any time after the
Effective Time.
(e) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, no R&M Benefit Plan provides
health, medical or other welfare benefits after retirement or
other termination of employment (other than for continuation
coverage required under Section 4980(B)(f) of the Code or
applicable Law).
(f) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect: (i) each R&M Benefit Plan and
its related trust, insurance contract or other funding vehicle
has been administered in accordance with its terms and is in
compliance with ERISA, the Code and all other Laws applicable to
such R&M Benefit Plan, and (ii) R&M and each of
the R&M Subsidiaries is in compliance with ERISA, the Code
and all other Laws applicable to the R&M Benefit Plans.
(g) Except for exceptions that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, all contributions or other amounts
payable by R&M or any R&M Subsidiary with respect to
each R&M Benefit Plan have been paid or accrued in
accordance with the terms of such R&M Benefit Plan, GAAP
and Section 412 of the Code (or any comparable provision
under applicable
non-U.S. Laws).
Except as fully accrued or reserved against on R&M’s
financial statements in accordance with GAAP, there are no
material unfunded liabilities (contingent or otherwise),
solvency deficiencies or
wind-up
liabilities, where applicable, with respect to any R&M
Benefit Plan.
28
(h) As of the date of this Agreement, except for exceptions
that, individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect, there are
no pending or, to the Knowledge of R&M, threatened claims,
suits or proceedings by or on behalf of any participant in any
of the R&M Benefit Plans, or otherwise involving any such
R&M Benefit Plan or the assets of any R&M Benefit
Plan, other than routine claims for benefits payable in the
ordinary course.
(i) None of the execution and delivery of this Agreement,
the obtaining of the R&M Shareholder Approval or the
consummation of the Merger or the Second Merger (if required
pursuant to Section 1.05) or any other transaction
contemplated by this Agreement (alone or in conjunction with any
other event, including any termination of employment on or
following the Effective Time) will: (i) entitle any current
or former director, officer, employee, independent contractor or
consultant of R&M or any of the R&M Subsidiaries to
any compensation or benefit, (ii) accelerate the time of
payment or vesting, or trigger any payment or funding, of any
compensation or benefits or trigger any other material
obligation under any R&M Benefit Plan or (iii) result
in any breach or violation of, default under or limit
R&M’s right to amend, modify or terminate any R&M
Benefit Plan. No director, officer, employee or independent
contractor of R&M or any R&M Subsidiary is entitled to
receive any
gross-up or
additional payment in respect of any Taxes (including without
limitation the Taxes required under Section 409A or
Section 4999 of the Code) being imposed on such Person.
Section
4.11 Litigation. There is no
suit, action or other proceeding pending or, to the Knowledge of
R&M, threatened against R&M or any R&M Subsidiary
that, individually or in the aggregate, would reasonably be
expected to have a R&M Material Adverse Effect, nor is
there any Judgment outstanding against or, to the Knowledge of
R&M, any investigation by any Governmental Entity involving
R&M or any R&M Subsidiary or any of their respective
properties or assets that, individually or in the aggregate,
would reasonably be expected to have a R&M Material Adverse
Effect.
Section
4.12 Compliance with Applicable Laws.
Except for matters that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, R&M and the R&M Subsidiaries
are in compliance with all applicable Laws and R&M Permits,
including all applicable rules, regulations, directives or
policies of any Governmental Entity. To the Knowledge of
R&M, except for matters that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, no material action, demand or
investigation by or before any Governmental Entity is pending or
threatened alleging that R&M or a R&M Subsidiary is
not in compliance with any applicable Law or R&M Permit or
which challenges or questions the validity of any rights of the
holder of any R&M Permit. This Section 4.12 does not
relate to Tax matters, employee benefits matters, environmental
matters or Intellectual Property Rights matters.
Section
4.13 Environmental
Matters. Except for matters that,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect:
(a) R&M, the R&M Subsidiaries and their
respective operations are in compliance with all Environmental
Laws, and neither R&M nor any R&M Subsidiary has
received any written notice from a Governmental Entity alleging
that R&M or any R&M Subsidiary is in violation of, or
has liability under, any Environmental Law or any Permit
required under Environmental Law;
(b) R&M and the R&M Subsidiaries have obtained
and are in compliance with all Permits required under
Environmental Laws for their respective operations as currently
conducted, all such Permits are valid and neither R&M nor
any R&M Subsidiary has been advised in writing by any
Governmental Entity of any proposed changes in the legal
effectiveness or the terms and conditions of any such Permits;
(c) as of the date of this Agreement, there are no
Environmental Claims pending or, to the Knowledge of R&M,
threatened, against R&M or any of the R&M Subsidiaries;
(d) there have been no Releases of any Hazardous Material
onsite or, to the Knowledge of R&M, offsite on real
properties owned, operated or leased by R&M or any of the
R&M Subsidiaries that would reasonably be expected to form
the basis of any Environmental Claim against R&M or any of
the R&M Subsidiaries;
29
(e) neither R&M nor any of the R&M Subsidiaries
has retained or assumed, either contractually or, to the
Knowledge of R&M, by operation of Law, any Known
liabilities or obligations that would reasonably be expected to
form the basis of any Environmental Claim against R&M or
any of the R&M Subsidiaries; and
(f) there has been no exposure of any Person or property to
Hazardous Materials in connection with R&M’s or any of
the R&M Subsidiaries’ respective operations that would
reasonably be expected to form the basis for a claim for damages
or compensation.
The representations and warranties of R&M contained in this
Section 4.13 are the only representations and warranties of
R&M in this Agreement relating to Environmental Laws,
Permits required under Environmental Laws, Environmental Claims
or Hazardous Materials, includes Releases or threatened Releases
of, or exposure to, Hazardous Materials.
Section
4.14 Contracts. (a) As
of the date of this Agreement, neither R&M nor any R&M
Subsidiary is a party to any Contract required to be filed by
R&M pursuant to Item 601(b)(2), (b)(4), (b)(9) or
(b)(10) of
Regulation S-K
under the Securities Act (a “Filed R&M
Contract”) that has not been so filed.
(b) Section 4.14 of the R&M Disclosure Letter
sets forth, as of the date of this Agreement, a true and
complete list, and R&M has made available to T-3 true and
complete copies, of: (i) each agreement, understanding or
undertaking to which R&M or any of the R&M
Subsidiaries is a party that restricts in any material respect
the ability of R&M or any of the R&M Subsidiaries to
compete in any business or with any Person in any geographical
area, (ii) each loan and credit agreement, note, debenture,
bond, indenture or other similar agreement pursuant to which
R&M or any of the R&M Subsidiaries has a borrowing
capacity of more than $1,000,000 or outstanding Indebtedness of
more than $1,000,000, other than any such agreement between or
among R&M and the wholly owned R&M Subsidiaries, and
(iii) each partnership, joint venture or similar agreement
or understanding to which R&M or any of the R&M
Subsidiaries is a party relating to the formation, creation,
operation, management or control of any partnership or joint
venture material to R&M and the R&M Subsidiaries,
taken as a whole. Each agreement, understanding or undertaking
of the type described in this Section 4.14(b) and each
Filed R&M Contract is referred to herein as a
“R&M Material Contract.”
(c) Except for matters which, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, (i) each R&M Material
Contract (including, for purposes of this Section 4.14(c),
any Contract entered into after the date of this Agreement that
would have been a R&M Material Contract if such Contract
existed on the date of this Agreement) is a valid, binding and
legally enforceable obligation of R&M or one of the
R&M Subsidiaries, as the case may be, and, to the Knowledge
of R&M, of the other parties thereto, except, in each case,
as enforcement may be limited by bankruptcy, insolvency,
reorganization or similar Laws affecting creditors’ rights
generally and by general principles of equity, (ii) each
such R&M Material Contract is in full force and effect, and
(iii) none of R&M or any of the R&M Subsidiaries
is (with or without notice or lapse of time, or both) in breach
or default under any such R&M Material Contract and, to the
Knowledge of R&M, no other party to any such R&M
Material Contract is (with or without notice or lapse of time,
or both) in breach or default thereunder.
Section
4.15 Properties. (a) R&M
and each R&M Subsidiary has good and valid title to, or
valid leasehold interests in, all their respective properties
and assets, except in respects that, individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect. All such properties and assets, other
than properties and assets in which R&M or any of the
R&M Subsidiaries has leasehold interests, are free and
clear of all Liens, except for Liens that, individually or in
the aggregate, would not reasonably be expected to have a
R&M Material Adverse Effect. This Section 4.15 does
not relate to Intellectual Property Rights matters, which are
the subject of Section 4.16.
(b) R&M and each of the R&M Subsidiaries has
complied with the terms of all leases to which it is a party,
and all leases to which R&M or any R&M Subsidiary is a
party and under which it is in possession are in full force and
effect, except for such noncompliance or failure to be in full
force and effect that, individually or in the aggregate, would
not reasonably be expected to have a R&M Material Adverse
Effect.
30
R&M and each R&M Subsidiary is in possession of the
properties or assets purported to be leased under all its
leases, except for such failures to have such possession as,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect.
Section
4.16 Intellectual
Property. R&M and the R&M
Subsidiaries own, or are validly licensed or otherwise have the
right to use, all Intellectual Property Rights as used in their
business as presently conducted, except where the failure to
have the right to use such Intellectual Property Rights,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect. No actions,
suits or other proceedings are pending or, to the Knowledge of
R&M, threatened that R&M or any of the R&M
Subsidiaries is infringing, misappropriating or otherwise
violating the rights of any Person with regard to any
Intellectual Property Right, except for matters that,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect. To the
Knowledge of R&M, no Person is infringing, misappropriating
or otherwise violating the rights of R&M or any of the
R&M Subsidiaries with respect to any Intellectual Property
Right owned by R&M or any of the R&M Subsidiaries,
except for such infringement, misappropriation or violation
that, individually or in the aggregate, would not reasonably be
expected to have, a R&M Material Adverse Effect.
Section
4.17 Labor
Matters. Section 4.17 of the R&M
Disclosure Letter sets forth a true and complete list of all
material collective bargaining or other labor union Contracts
applicable to any employees of R&M or any of the R&M
Subsidiaries as of the date of this Agreement. Neither R&M
nor any of the R&M Subsidiaries has breached or otherwise
failed to comply with any provision of any collective bargaining
agreement or other labor union Contract applicable to any
employees of R&M or any of the R&M Subsidiaries,
except for any breaches, failures to comply or disputes that,
individually or in the aggregate, would not reasonably be
expected to have a R&M Material Adverse Effect. Except for
matters that, individually or in the aggregate, would not
reasonably be expected to have a R&M Material Adverse
Effect: (a) there is not any, and during the past three
years there has not been any, labor strike, dispute, work
stoppage or lockout pending, or, to the Knowledge of R&M,
threatened, against or affecting R&M or any R&M
Subsidiary; (b) to the Knowledge of R&M, no union
organizational campaign is in progress with respect to the
employees of R&M or any R&M Subsidiary and no question
concerning representation of such employees exists;
(c) there are not any unfair labor practice charges or
complaints against R&M or any R&M Subsidiary pending,
or, to the Knowledge of R&M, threatened, before the
National Labor Relations Board; (d) there are not any
pending, or, to the Knowledge of R&M, threatened, union
grievances against R&M or any R&M Subsidiary that
reasonably could be expected to result in an adverse
determination; (e) R&M and each R&M Subsidiary is
in compliance with all applicable Laws with respect to labor
relations, employment and employment practices, occupational
safety and health standards, terms and conditions of employment,
payment of wages, classification of employees, immigration,
visa, work status, pay equity and workers’ compensation;
and (f) neither R&M nor any R&M Subsidiary has
received written or oral communication during the past three
years of the intent of any Governmental Entity responsible for
the enforcement of labor or employment laws to conduct an
investigation of or affecting R&M or any R&M
Subsidiary and, to the Knowledge of R&M, no such
investigation is in progress.
Section
4.18 Certain Business
Practices. Within the last three years,
neither R&M nor any of its Subsidiaries, nor to
R&M’s Knowledge, any directors, officers, agents,
employees or Affiliates, when acting in such capacity on behalf
of R&M or any such Subsidiary, has:
(a) used any corporate funds for unlawful contributions,
gifts, entertainment or other unlawful expenses related to
political activity;
(b) used any corporate funds for any unlawful payment to
foreign or domestic government officials or employees;
(c) violated any provision of the U.S. Foreign Corrupt
Practices Act;
(d) engaged in any material export transactions, or
authorized any material transactions, that violate
U.S. export control Law (including those specified in the
Export Administration Regulations and the International Traffic
in Arms Regulations) or any other material import or export Law;
31
(e) engaged in, or agreed to engage in, any conduct that
would be prohibited by existing or then-applicable, material
U.S. economic sanctions and embargoes, including, but not
limited to, those covering Burma (Myanmar), Cuba, Iran, North
Korea, Sudan, Syria, or Zimbabwe, or engaged in or agreed to
engage in transactions with any Person covered by the list of
Specially Designated Nationals that is maintained by the United
States; or
(f) made any false or fraudulent claim for payment to the
United States government.
R&M has received all material export authorizations
applicable to
U.S.-sourced
goods or goods made with
U.S.-origin
technology where covered by U.S. export control Law.
R&M has established reasonable internal controls and
procedures intended to ensure compliance with the
U.S. Foreign Corrupt Practices Act.
Section
4.19 Brokers’ Fees and
Expenses. No broker, investment banker,
financial advisor or other Person, other than UBS Securities LLC
(the “R&M Financial Advisor”), the fees
and expenses of which will be paid by R&M, is entitled to
any broker’s, finder’s, financial advisor’s or
other similar fee or commission in connection with the Merger or
any of the other transactions contemplated by this Agreement
based upon arrangements made by or on behalf of R&M.
Section
4.20 Opinion of Financial
Advisor. R&M has received an opinion
from the R&M Financial Advisor dated the date of this
Agreement, to the effect that, as of such date, the Merger
Consideration is fair to R&M from a financial point of view.
Section
4.21 Merger Sub and Merger Sub
II. R&M is the sole stockholder of
Merger Sub and Merger Sub II. Since its date of incorporation,
neither Merger Sub nor Merger Sub II has carried on any
business nor conducted any operations other than the execution
of this Agreement, the performance of its obligations hereunder
and matters ancillary thereto.
Section
4.22 Sufficient
Funds. R&M shall have, as of the
Effective Time, sufficient funds on hand with which to pay the
aggregate Cash Consideration and consummate the transactions
contemplated by this Agreement.
Section
4.23 No Other Representations or
Warranties. Except for the representations
and warranties contained in this Article IV, T-3
acknowledges that none of R&M, the R&M Subsidiaries or
any other Person on behalf of R&M makes any other express
or implied representation or warranty in connection with the
transactions contemplated by this Agreement.
ARTICLE V
COVENANTS RELATING TO CONDUCT OF BUSINESS
Section
5.01 Conduct of
Business. (a) Conduct of Business
by T-3. Except for matters set forth in the
T-3 Disclosure Letter, as required by any judgment, order,
decree or Law of any Governmental Entity, as expressly permitted
or expressly contemplated by this Agreement or with the prior
written consent of R&M (which shall not be unreasonably
withheld, conditioned or delayed), from the date of this
Agreement to the Effective Time, T-3 shall, and shall cause each
T-3 Subsidiary to, conduct its business in the ordinary course
in all material respects and use commercially reasonable efforts
to preserve intact its business organization and preserve its
relationship with key customers, suppliers and other Persons
having business relationships with it. In addition, and without
limiting the generality of the foregoing, except for matters set
forth in the T-3 Disclosure Letter, as required by any judgment,
order, decree or Law of any Governmental Entity, as expressly
permitted or expressly contemplated by this Agreement or with
the prior written consent of R&M (which shall not be
unreasonably withheld, conditioned or delayed), from the date of
this Agreement to the Effective Time, T-3 shall not, and shall
not permit any T-3 Subsidiary to, do any of the following:
(i) (A) declare, set aside or pay any dividends on, or
make any other distributions (whether in cash, stock or property
or any combination thereof) in respect of, any of its capital
stock, other equity interests or voting securities, other than
dividends and distributions by a direct or indirect T-3
Subsidiary to T-3, a direct or indirect T-3 Subsidiary or any
minority equityholder in a direct or indirect T-3 Subsidiary
32
(provided that any such dividends or distributions paid
to such minority equityholders are no greater on a pro rata
basis than those paid to T-3 or a direct or indirect T-3
Subsidiary, as the case may be), (B) other than with
respect to any wholly owned T-3 Subsidiary, split, combine,
subdivide or reclassify any of its capital stock, other equity
interests or voting securities or securities convertible into or
exchangeable or exercisable for capital stock or other equity
interests or voting securities or issue or authorize the
issuance of any other securities in respect of, in lieu of or in
substitution for its capital stock, other equity interests or
voting securities, other than as permitted by
Section 5.01(a)(ii), or (C) repurchase, redeem or
otherwise acquire, or offer to repurchase, redeem or otherwise
acquire, any capital stock or voting securities of, or equity
interests in, T-3 or any T-3 Subsidiary or any securities of T-3
or any T-3 Subsidiary convertible into or exchangeable or
exercisable for capital stock or voting securities of, or equity
interests in, T-3 or any T-3 Subsidiary, or any warrants, calls,
options or other rights to acquire any such capital stock,
securities or interests, except pursuant to the T-3 Stock
Options and T-3 Restricted Shares, in each case, pursuant to
their terms or any such transaction by T-3 or a wholly owned T-3
Subsidiary in respect of such capital stock, securities or
interests in a wholly owned T-3 Subsidiary;
(ii) issue, deliver, sell, grant, pledge or otherwise
encumber or subject to any Lien (other then pursuant to a credit
facility of T-3 existing on the date of this Agreement and
disclosed in the T-3 Disclosure Letter): (A) any shares of
capital stock of T-3 or any T-3 Subsidiary, other than the
issuance of T-3 Common Stock upon the exercise of T-3 Stock
Options and T-3 Warrants, in each case, outstanding at the close
of business on the date of this Agreement and in accordance with
their terms in effect at such time or thereafter granted as
permitted by the provisions of this Section 5.01(a)(ii) and
the issuance of shares of capital stock of a wholly owned T-3
Subsidiary to T-3 or another wholly owned T-3 Subsidiary,
(B) any other equity interests or voting securities of T-3
or any T-3 Subsidiary, other than in the case of a T-3
Subsidiary, an issuance, delivery or sale to T-3 or any wholly
owned T-3 Subsidiary, (C) any securities convertible into
or exchangeable or exercisable for capital stock or voting
securities of, or other equity interests in, T-3 or any T-3
Subsidiary, other than in the case of a T-3 Subsidiary, an
issuance, delivery or sale to T-3 or any wholly owned T-3
Subsidiary, (D) any warrants, calls, options or other
rights to acquire any capital stock or voting securities of, or
other equity interests in, T-3 or any T-3 Subsidiary, other than
in the case of a T-3 Subsidiary, an issuance, delivery or sale
to T-3 or any wholly owned T-3 Subsidiary, (E) any rights
issued by T-3 or any T-3 Subsidiary that are linked in any way
to the price of any class of T-3 Capital Stock or any shares of
capital stock of any T-3 Subsidiary, the value of T-3, any T-3
Subsidiary or any part of T-3 or any T-3 Subsidiary or any
dividends or other distributions declared or paid on any shares
of capital stock of T-3 or any T-3 Subsidiary, other than in the
case of a
T-3
Subsidiary, an issuance, delivery or sale to T-3 or any wholly
owned T-3 Subsidiary, or (F) any T-3 Voting Debt;
(iii) (A) amend the T-3 Certificate, (B) amend
the T-3 Bylaws or (C) amend the charter or organizational
documents of any T-3 Subsidiary in a manner which would be
reasonably likely to have a T-3 Material Adverse Effect or to
prevent or materially impede, interfere with, hinder or delay
the consummation by T-3 of the Merger or any of the other
transactions contemplated by this Agreement, except, in the case
of each of the foregoing clauses (B) and (C), as may be
required by Law or the rules and regulations of the SEC or the
Nasdaq Stock Market;
(iv) except as required to comply with applicable Law or to
comply with any T-3 Benefit Plan (including any award agreement
thereunder) in effect as of the date of this Agreement:
(A) establish, adopt, enter into, terminate or amend, or
take any action to accelerate the vesting or payment of, any
compensation or benefits under, any collective bargaining
agreement or T-3 Benefit Plan (or any award thereunder),
(B) increase in any material respect the compensation or
benefits of, or pay any discretionary bonus of any kind or
amount whatsoever to, any current or former director, officer,
employee or independent contractor of T-3 or any T-3 Subsidiary,
except for increases in regular cash compensation in the
ordinary course of business consistent with past practice for
employees of T-3 or any T-3 Subsidiary who are not officers,
(C) pay any benefit or amount not required under any T-3
Benefit Plan as in effect on the date of this Agreement,
(D) grant or pay any change in control, retention,
severance or termination compensation or benefits;
provided, however, that the compensation committee
of the T-3 Board in its
33
discretion may make grants or payments otherwise prohibited
under this clause (D) in an aggregate amount not to exceed
$1,000,000, (E) take any action to fund or in any other way
secure the payment of compensation or benefits under any T-3
Benefit Plan, (F) change any actuarial or other assumption
used to calculate funding obligations with respect to any T-3
Pension Plan, except to the extent required by GAAP, or
(G) change the manner in which contributions to any T-3
Pension Plan are made or the basis on which such contributions
are determined; provided, however, that T-3 may take any
actions otherwise prohibited by this Section 5.01(iv) in
connection with the payment of bonuses and other incentive
compensation to its employees (1) as part of its year-end
compensation process following the completion of
T-3’s 2010
fiscal year, based on actual results and in accordance with the
bonus plan approved by the Compensation Committee of the T-3
Board and provided to R&M prior to the date of this
Agreement or (2) that is otherwise consistent with
Schedule 5.01(iv) of the T-3 Disclosure Letter;
(v) make any material change in financial accounting
methods, principles or practices, except insofar as may have
been required by a change in GAAP (after the date of this
Agreement);
(vi) (A) make any material election with respect to
Taxes or make any changes to any such election or existing
election that has a material effect, or (B) settle or
compromise any material Tax liability or refund;
(vii) file or amend any material Tax Return other than in
the ordinary course of business and on a basis consistent with
past practices and applicable Law, or fail to pay any material
amount of Taxes due and payable;
(viii) directly or indirectly acquire in any transaction
any equity interest in or business of any firm, corporation,
partnership, company, limited liability company, trust, joint
venture, association or other entity or division thereof;
(ix) sell, lease (as lessor), license (as licensor),
mortgage, sell and leaseback or otherwise encumber or subject to
any Lien (other than (A) pursuant to a credit facility of
T-3 existing on the date of this Agreement and disclosed in the
T-3 Disclosure Letter, (B) routine statutory liens securing
liabilities not yet due and payable, (C) Liens securing, in
the aggregate, up to $250,000 in principle amount of
Indebtedness, and (D) replacement Liens in connection with
refinancings permitted pursuant to Section 5.01(a)(x)) or
otherwise dispose of any properties or assets or any interests
therein (other than the sale of inventory in the ordinary course
of business) that, individually or in the aggregate, have a fair
market value in excess of $1,000,000;
(x) incur any Indebtedness, except for
(A) Indebtedness incurred in the ordinary course of
business, (B) Indebtedness in replacement of existing
Indebtedness, (C) Indebtedness incurred under any credit
facility of T-3 in existence on the date hereof, or
(D) Indebtedness of a T-3 Subsidiary payable to T-3 or a
wholly owned T-3 Subsidiary;
(xi) make any capital expenditures or acquisitions of
material properties or assets which are, in the aggregate,
greater than 100% of the aggregate amount of capital
expenditures set forth in Section 5.01(a)(xi) of the T-3
Disclosure Letter, except for capital expenditures to repair
damage resulting from insured casualty events;
(xii) settle any material claim or material litigation, in
each case made or pending against T-3 or any T-3 Subsidiary,
other than (A) the settlement of disputes, claims or
litigation in respect of: health care insurance, products and
services; group disability, life and accident insurance;
workers’ compensation case management and related services;
products liability claims; and commutations of reinsurance
agreements and resolutions of disputes concerning reinsurance
agreements; in each case in the ordinary course of business,
(B) the settlement of claims or litigation disclosed,
reflected or reserved against in the most recent financial
statements (or the notes thereto) of T-3 included in the Filed
T-3 SEC Documents for an amount not materially in excess of the
amount so disclosed, reflected or reserved, and (C) Tax
matters not prohibited by Section 5.01(a)(vi);
34
(xiii) make any loans or advances to any Person other than
in the ordinary course of business or cancel any material
Indebtedness owed to T-3 or a T-3 Subsidiary or waive any claims
or rights of substantial value, in each case other than in the
ordinary course of business; provided, however,
that extensions of payment terms to customers consistent with
past practices and advances to non-executive employees shall be
deemed to be made in the ordinary course of business for
purposes of this Section 5.01(a)(xiii);
(xiv) enter into, modify, amend or terminate any collective
bargaining or other labor union Contract applicable to the
employees of T-3 or any of the T-3 Subsidiaries, other than
(A) the entry into new collective bargaining or other labor
union Contracts in the ordinary course of business required to
be entered into by any non-US Law, (B) modifications,
amendments, renewals or terminations of such Contracts in the
ordinary course of business, or (C) any modification,
amendment, renewal or termination of any collective bargaining
agreement to the extent required by applicable Law;
(xv) enter into any transaction or take any action that
could reasonably be expected to: (A) prevent or materially
delay or impair the ability of T-3 to consummate the Merger and
the other transactions contemplated hereby or (B) result in
any of the conditions to the Merger set forth in
Article VII not being satisfied; or
(xvi) authorize any of, or commit, resolve or agree to take
any of the foregoing actions.
(b) Conduct of Business by
R&M. Except for matters set forth in the
R&M Disclosure Letter or otherwise expressly permitted, as
required by any judgment, order, decree, or Law of any
Governmental Entity, as contemplated by this Agreement or with
the prior written consent of T-3 (which shall not be
unreasonably withheld, conditioned or delayed), from the date of
this Agreement to the Effective Time, R&M shall, and shall
cause each R&M Subsidiary to, conduct its business in the
ordinary course in all material respects and use commercially
reasonable efforts to preserve intact its business organization
and preserve its relationship with key customers, suppliers and
other Persons having business relationships with it. In
addition, and without limiting the generality of the foregoing,
except for matters set forth in the R&M Disclosure Letter,
as required by any judgment, order, decree or Law of any
Governmental Entity, as expressly permitted or expressly
contemplated by this Agreement or with the prior written consent
of T-3 (which shall not be unreasonably withheld, conditioned or
delayed), from the date of this Agreement to the Effective Time,
R&M shall not, and shall not permit any R&M Subsidiary
to, do any of the following:
(i) (A) declare, set aside or pay any dividends on, or
make any other distributions (whether in cash, stock or property
or any combination thereof) in respect of, any of its capital
stock, other equity interests or voting securities, other than
(1) regular quarterly cash dividends payable by R&M in
respect of R&M Common Shares not exceeding $0.0425 per
R&M Common Share with (subject to Section 2.01(d))
usual declaration, record and payment dates and in accordance
with R&M’s current dividend policy and
(2) dividends and distributions by a direct or indirect
R&M Subsidiary to R&M, a direct or indirect R&M
Subsidiary or any minority equityholder in a direct or indirect
R&M Subsidiary (provided that any such dividends or
distributions paid to such minority equityholders are no greater
on a pro rata basis than those paid to R&M or a direct or
indirect R&M Subsidiary, as the case may be),
(B) other than with respect to a wholly owned R&M
Subsidiary, split, combine, subdivide or reclassify any of its
capital stock, other equity interests or voting securities, or
securities convertible into or exchangeable or exercisable for
capital stock or other equity interests or voting securities or
issue or authorize the issuance of any other securities in
respect of, in lieu of or in substitution for its capital stock,
other equity interests or voting securities, other than as
permitted by Section 5.01(b)(ii), or (C) repurchase, redeem
or otherwise acquire, or offer to repurchase, redeem or
otherwise acquire, any capital stock or voting securities of, or
equity interests in, R&M or any R&M Subsidiary or any
securities of R&M or any R&M Subsidiary convertible
into or exchangeable or exercisable for capital stock or voting
securities of, or equity interests in, R&M or any R&M
Subsidiary, or any warrants, calls, options or other rights to
acquire any such capital stock, securities or interests, except
pursuant to the R&M Stock Plans and R&M Stock-Based
Awards or any such transaction by R&M or a wholly owned
R&M Subsidiary in respect of such capital stock, securities
or interests in a wholly owned R&M Subsidiary;
35
(ii) issue, deliver, sell, grant, pledge or otherwise
encumber or subject to any Lien (other than pursuant to a credit
facility of R&M existing on the date of this Agreement and
disclosed in the R&M Disclosure Letter): (A) any
shares of capital stock of R&M or any R&M Subsidiary
(other than the issuance of R&M Common Shares upon the
exercise of R&M Stock Options or vesting of R&M
Restricted Stock Units or R&M Performance Share Units, in
each case, outstanding at the close of business on the date of
this Agreement and in accordance with their terms in effect at
such time or thereafter granted as permitted by the provisions
of this Section 5.01(b)(ii) or the issuance of shares of
capital stock of a wholly owned R&M Subsidiary to R&M
or to another wholly owned R&M Subsidiary), (B) any
other equity interests or voting securities of R&M or any
R&M Subsidiary, other than in the case of a R&M
Subsidiary, an issuance, delivery or sale to R&M or any
wholly owned R&M Subsidiary, (C) any securities
convertible into or exchangeable or exercisable for capital
stock or voting securities of, or other equity interests in,
R&M or any R&M Subsidiary, other than in the case of a
R&M Subsidiary, an issuance, delivery or sale to R&M
or any wholly owned R&M Subsidiary, (D) any warrants,
calls, options or other rights to acquire any capital stock or
voting securities of, or other equity interests in, R&M or
any R&M Subsidiary, other than in the case of a R&M
Subsidiary, an issuance, delivery or sale to R&M or any
wholly owned R&M Subsidiary, (E) any rights issued by
R&M or any R&M Subsidiary that are linked in any way
to the price of any class of R&M Capital Shares or any
shares of capital stock of any R&M Subsidiary, the value of
R&M, any R&M Subsidiary or any part of R&M or any
R&M Subsidiary or any dividends or other distributions
declared or paid on any shares of capital stock of R&M or
any R&M Subsidiary, other than in the case of a R&M
Subsidiary, an issuance, delivery or sale to R&M or any
wholly owned R&M Subsidiary, or (F) any R&M
Voting Debt other than, in the case of each of clauses (A)
through (F), for grants of R&M Stock Options and issuances
of R&M Restricted Stock Units and R&M Performance
Share Units under the R&M Benefit Plans as in effect on the
date of this Agreement, in each case in the ordinary course of
business consistent with past practice; provided that
such restrictions will not lapse nor shall any vesting
accelerate as a result of this Agreement or the transactions
contemplated hereby; (I) to any officer or employee of
R&M or any R&M Subsidiary in the context of promotions
based on job performance or workplace requirements, (II) in
connection with new hires, (III) to respond to offers of
employment made to existing employees by third parties, and
(IV) in connection with normal annual grants to any
director, officer or employee of R&M or any R&M
Subsidiary in accordance with Section 5.01(b)(ii) of the
R&M Disclosure Letter;
(iii) (A) amend the R&M Articles; (B) amend
the R&M Code; or (C) amend the charter or
organizational documents of any R&M Subsidiary in a manner
which would be reasonably likely to have a R&M Material
Adverse Effect or to prevent or materially impede, interfere
with, hinder or delay the consummation by R&M of the Merger
or any of the other transactions contemplated by this Agreement,
except, in the case of each of the foregoing clauses (B)
and (C), as may be required by Law or the rules and regulations
of the SEC or the NYSE;
(iv) except as required to comply with applicable Law or to
comply with any R&M Benefit Plan (including any award
agreement thereunder) in effect as of the date of this Agreement
and except as otherwise provided in Section 5.01(b)(iv) of
the R&M Disclosure Letter: (A) establish, adopt, enter
into, terminate or amend, or take any action to accelerate the
vesting or payment of, any compensation or benefits to or with
any named executive officer (as such term is defined in
Item 402 of
Regulation S-K)
under any R&M Benefit Plan (or any award thereunder),
(B) increase in any material respect the compensation or
benefits of, or pay any discretionary bonus of any kind or
amount whatsoever to, any current or former director or named
executive officer, (C) pay to any named executive officer
any benefit or amount not required under any R&M Benefit
Plan as in effect on the date of this Agreement, (D) grant
or pay to any named executive officer any change in control,
retention, severance or termination compensation or benefits, or
(E) take any action to fund or in any other way secure the
payment of compensation or benefits to any named executive
officer under any R&M Benefit Plan;
(v) make any material change in financial accounting
methods, principles or practices, except insofar as may have
been required by a change in GAAP (after the date of this
Agreement);
36
(vi) (A) make any material election with respect to
Taxes or make any changes to any such election or existing
election that has a material effect, or (B) settle or
compromise any material Tax liability or refund;
(vii) directly or indirectly acquire in any transaction any
equity interest in or business of any firm, corporation,
partnership, company, limited liability company, trust, joint
venture, association or other entity or division thereto other
than acquisitions made in the ordinary course of business or
other acquisitions to which the purchase price is not in excess
of $60,000,000 in the aggregate and that are made following
reasonable advance notice to T-3; provided,
however, that notwithstanding the foregoing, neither
R&M nor any R&M Subsidiary shall enter into any
acquisition agreement or consummate any acquisition described
above that could reasonably be expected to: (A) prevent or
materially delay or impair the ability of R&M to consummate
the Merger and the other transactions contemplated hereby or
(B) result in any of the conditions to the Merger set forth
in Article VII not being satisfied;
(viii) sell, lease (as lessor), license (as licensor), sell
and leaseback or otherwise dispose of any properties or assets
or any interests therein other than in the ordinary course of
business or otherwise that do not, individually or in the
aggregate, have a fair market value in excess of $100,000,000;
provided, however, that notwithstanding the
foregoing, R&M shall not, nor shall any R&M Subsidiary
sell, lease (as lessor), license (as licensor), sell and
leaseback or otherwise dispose of any properties or assets or
any interests therein (A) within the fluid management
business segment as such segment is described in R&M’s
Annual Report on
Form 10-K
for the year ended August 31, 2009 and subsequent Filed
R&M SEC Documents (other than sales, leases, licenses,
sales and leasebacks and other dispositions of assets
(1) disclosed in Section 5.01(b)(viii) of the R&M
Disclosure Letter, or (2) that have a fair market value in
excess of $1,000,000, individually, or $3,000,000 in the
aggregate); or (B) that could reasonably be expected to:
(1) prevent or materially delay or impair the ability of
R&M to consummate the Merger and the other transactions
contemplated hereby or (2) result in any of the conditions
to the Merger set forth in Article VII not being satisfied;
(ix) incur, create or assume any Indebtedness, except for
(A) Indebtedness incurred in the ordinary course of
business, (B) Indebtedness in replacement of existing
Indebtedness, (C) Indebtedness incurred under any credit
facility of R&M in existence on the date of the Agreement
and disclosed in the R&M Disclosure Letter,
(D) Indebtedness of a R&M Subsidiary payable to
R&M or a wholly-owned R&M Subsidiary, and
(E) other Indebtedness not exceeding $25,000,000 in the
aggregate;
(x) make any capital expenditures which are, in the
aggregate, greater than 100% of the aggregate amount of capital
expenditures set forth in Section 5.01(b)(x) of the
R&M Disclosure Letter, except for capital expenditures to
repair damage resulting from insured casualty events;
(xi) enter into or amend any material Contract to the
extent consummation of the Merger or compliance by R&M or
any R&M Subsidiary with the provisions of this Agreement
would reasonably be expected to conflict with, or result in a
violation of or default (with or without notice or lapse of
time, or both) under, give rise to a right of termination,
cancellation or acceleration of, give rise to any obligation to
make an offer to purchase or redeem any Indebtedness or capital
stock or any loss of a material benefit under, or result in the
creation of any material Lien upon any of the material
properties or assets of R&M or any R&M Subsidiary
under, or require R&M, T-3 or any of their respective
Subsidiaries to license or transfer any of its material
properties or assets under, or give rise to any material
increased, additional, accelerated, or guaranteed right or
entitlements of any third party under, or result in any material
alteration of, any provision of such Contract or amendment,
except where such action would not have or reasonably be
expected to have, individually or in the aggregate with other
actions contemplated by this Section 5.01(b)(xi), a
R&M Material Adverse Effect;
(xii) settle any material claim or material litigation, in
each case made or pending against R&M or any R&M
Subsidiary, other than (A) the settlement of disputes,
claims or litigation in respect of: health care insurance,
products and services; group disability, life and accident
insurance; workers’ compensation case management and
related services; products liability claims; and commutations of
reinsurance agreements and resolutions of disputes concerning
reinsurance agreements; in each case in the ordinary
37
course of business, (B) the settlement of claims or
litigation disclosed, reflected or reserved against in the most
recent financial statements (or the notes thereto) of R&M
included in the Filed R&M SEC Documents for an amount not
materially in excess of the amount so disclosed, reflected or
reserved, (C) Tax matters not prohibited by
Section 5.01(b)(vi), and (D) the settlement of any
disputes, claims or litigation where such settlement amounts do
not, individually or in the aggregate, exceed $5,000,000;
(xiii) enter into any transaction or take any action that
could reasonably be expected to: (A) prevent or materially
delay or impair the ability of R&M to consummate the Merger
and the other transactions contemplated hereby or
(B) result in any of the conditions to the Merger set forth
in Article VII not being satisfied; or
(xiv) authorize any of, or commit, resolve or agree to take
any of, the foregoing actions.
(c) No Control of R&M’s
Business. Nothing contained in this Agreement
is intended to give T-3, directly or indirectly, the right to
control or direct the operations of R&M or any R&M
Subsidiary prior to the Effective Time. Prior to the Effective
Time, R&M shall exercise, consistent with the terms and
conditions of this Agreement, complete control and supervision
over its and the R&M Subsidiaries’ respective
operations.
(d) No Control of T-3’s Business.
Nothing contained in this Agreement is intended
to give R&M, directly or indirectly, the right to control
or direct the operations of T-3 or any T-3 Subsidiary prior to
the Effective Time. Prior to the Effective Time, T-3 shall
exercise, consistent with the terms and conditions of this
Agreement, complete control and supervision over its and the T-3
Subsidiaries’ respective operations.
(e) Advice of Changes. R&M
and T-3 shall promptly advise the other orally and in writing of
any change or event that, individually or in the aggregate with
all past changes and events, has had or would reasonably be
expected to have a Material Adverse Effect with respect to such
Person.
Section
5.02 No Solicitation by T-3; T-3 Board
Recommendation. (a) T-3 shall not, and
shall cause the T-3 Subsidiaries not to, and shall direct and
use its reasonable best efforts to cause its and the T-3
Subsidiaries’ Representatives not to: (i) directly or
indirectly solicit, initiate or knowingly and intentionally
encourage or facilitate any T-3 Acquisition Proposal or any
inquiry or proposal that is reasonably expected to lead to a T-3
Acquisition Proposal, or (ii) directly or indirectly
participate in any discussions or negotiations with or provide
any nonpublic information to any Person that has made any T-3
Acquisition Proposal or any inquiry or proposal that is
reasonably expected to lead to a T-3 Acquisition Proposal. T-3
shall, and shall cause the T-3 Subsidiaries and shall direct and
use its reasonable best efforts to cause its and the T-3
Subsidiaries’ Representatives to, immediately cease and
cause to be terminated all existing discussions or negotiations
with any Person (other than R&M or any of its Affiliates or
any of their respective Representatives) conducted heretofore
with respect to any T-3 Acquisition Proposal, or any inquiry or
proposal that is reasonably expected to lead to a T-3
Acquisition Proposal; request the prompt return or destruction
of all confidential information previously furnished in
connection therewith; and immediately terminate all physical and
electronic dataroom access previously granted to any such Person
or its Representatives. Notwithstanding the foregoing, at any
time prior to obtaining the T-3 Stockholder Approval, in
response to a written T-3 Acquisition Proposal that the T-3
Board determines in its good faith judgment (after consultation
with outside counsel and its financial advisor) constitutes or
is reasonably likely to lead to a Superior
T-3
Acquisition Proposal, and which T-3 Acquisition Proposal was
made after the date of this Agreement and did not otherwise
result from any material breach (or any other breach that is
knowing and intentional) of the non-solicitation provisions of
this Section 5.02(a), T-3 may (and may authorize and permit
its Affiliates and its and their Representatives to), subject to
compliance with Section 5.02(c): (A) furnish
information and access with respect to T-3 and the T-3
Subsidiaries to the Person making such T-3 Acquisition Proposal
(and its Representatives and financing sources) (provided
that all such information has previously been provided to
R&M or is provided to R&M promptly after the time it
is provided to such Person) pursuant to an executed
confidentiality agreement the material terms of which, as they
relate to confidentiality, are in all material respects not less
restrictive of such Person than the Confidentiality Agreement
and the terms of which, as they relate to confidentiality, shall
not be waived, amended or modified by T-3, and
(B) participate in discussions regarding the terms of such
T-3 Acquisition Proposal and the negotiation of such terms with,
and only with, the Person making such T-3 Acquisition Proposal
(and such Person’s Representatives and financing sources).
Without limiting the
38
foregoing, any violation of the restrictions set forth in this
Section 5.02(a) by any Representative of T-3 or any of its
Subsidiaries shall constitute a breach of this
Section 5.02(a) by T-3. For purposes of this
Section 5.02 and for purposes of Section 5.03, a
breach is “knowing and intentional” when the Person in
question has actual knowledge that such Person’s actions
breach the covenant in question.
(b) Except as set forth below, neither the T-3 Board nor
any committee thereof shall: (i) (A) withdraw (or modify in
any manner adverse to R&M), or propose publicly to withdraw
(or modify in any manner adverse to R&M), the approval,
recommendation or declaration of advisability by the T-3 Board
or any such committee thereof with respect to this Agreement or
the Merger, or (B) adopt, recommend or declare advisable,
or propose publicly to adopt, recommend or declare advisable,
any T-3 Acquisition Proposal (any action in this clause (i)
being referred to as a “T-3 Adverse Recommendation
Change”), or (ii) adopt, recommend or declare
advisable, or propose publicly to adopt, recommend or declare
advisable, or allow T-3 or any of its Subsidiaries to execute or
enter into, any Acquisition Agreement (other than a
confidentiality agreement referred to in Section 5.02(a))
constituting or related to, or that is intended to or would
reasonably be expected to lead to, any T-3 Acquisition Proposal,
or requiring, or reasonably expected to cause, T-3 to abandon,
terminate, delay or fail to consummate, the Merger, the Second
Merger (if required pursuant to Section 1.05) or any of the
other transactions contemplated by this Agreement.
Notwithstanding the foregoing, at any time prior to obtaining
the T-3 Stockholder Approval, the T-3 Board may make a T-3
Adverse Recommendation Change if T-3 has received a Superior T-3
Acquisition Proposal or the T-3 Board determines, in good faith,
after consulting with outside legal counsel, that the failure to
make a T-3 Adverse Recommendation Change would reasonably be
likely to be inconsistent with the directors’ exercise of
their fiduciary duties under applicable Law; provided,
however, that T-3 shall not be entitled to exercise its
right to make a T-3 Adverse Recommendation Change until after
the third Business Day following R&M’s receipt of
written notice (a “T-3 Notice of Recommendation
Change”) from T-3 advising R&M that the T-3 Board
intends to take such action and specifying the reasons therefor
(it being understood and agreed that any material amendment of
such Superior T-3 Acquisition Proposal shall require a new T-3
Notice of Recommendation Change and a new three Business Day
period). In determining whether to make a T-3 Adverse
Recommendation Change, the T-3 Board shall take into account any
changes to the terms of this Agreement proposed by R&M in
response to a T-3 Notice of Recommendation Change or otherwise.
(c) In addition to the obligations of T-3 set forth in
paragraphs (a) and (b) of this Section 5.02, T-3
shall promptly (and, in any event, within two Business Days)
advise R&M orally and confirm in writing: (i) the
receipt of any indication (orally or in writing) that any Person
is considering a T-3 Acquisition Proposal, and (ii) the
receipt of any T-3 Acquisition Proposal describing: (A) the
material terms and conditions of any such T-3 Acquisition
Proposal (including any material changes thereto but T-3 shall
not be required to disclose the identity of the Person making
such T-3 Acquisition Proposal), and (B) if T-3 determines
to submit a T-3 Notice of Recommendation Change or if T-3
determines to terminate this Agreement pursuant to
Section 8.01(g), the identity of the Person making such T-3
Acquisition Proposal. T-3 shall: (x) keep R&M informed
in all material respects of the status and details (including
any change to the terms thereof) of any
T-3
Acquisition Proposal, and (y) provide to R&M as soon
as practicable after receipt or delivery thereof copies of all
written correspondence, agreements and other written material
(including, without limitation, copies of emails and other
electronic text communications) exchanged between T-3 or any of
its Affiliates and any Person that describes any of the terms or
conditions of any T-3 Acquisition Proposal; provided,
however, that T-3 may redact the identity of such Person
unless required by clause (ii)(B) above. T-3 shall not, and
shall cause its Representatives not to, enter into any
confidentiality or other agreement with any Person which
prohibits T-3 from providing information to R&M as required
by this Section 5.02(c).
(d) Nothing contained in this Section 5.02 shall
prohibit T-3 from: (i) issuing a “stop-look-and-listen
communication” pursuant to
Rule 14d-9(f)
promulgated under the Exchange Act or taking and disclosing to
its stockholders positions required by
Rule 14d-9
or
Rule 14e-2
promulgated under the Exchange Act, in each case after the
commencement of a tender offer (within the meaning of
Rule 14d-2
promulgated under the Exchange Act), (ii) issuing a
statement in connection with a T-3 Acquisition Proposal that
does not involve the commencement of a tender offer (within the
meaning of
Rule 14d-2
promulgated under the Exchange Act), so long as the statement
includes no more information than would be required for a
“stop-look-and-listen
39
communication” under
Rule 14d-9(f)
promulgated under the Exchange Act if such provision was
applicable, (iii) making any disclosure to the stockholders
of T-3 if, in the good faith judgment of the T-3 Board (after
consultation with outside counsel) failure to so disclose would
be inconsistent with its duties under applicable Law, or
(iv) making any factually accurate public statement that
describes T-3’s receipt of a T-3 Acquisition Proposal and
the operation of this Agreement with respect thereto;
provided, however, that in no event shall
T-3 or the
T-3 Board or any committee thereof take, or agree or resolve to
take, any action prohibited by Section 5.02(b).
(e) R&M agrees that neither it nor any of its
Affiliates, Subsidiaries or Representatives shall enter, or seek
to enter, into any agreement, arrangement or understanding with
a potential competing bidder for T-3 that has the purpose or
effect of interfering with T-3’s ability to seek and obtain
a Superior T-3 Acquisition Proposal from such party (including
interfering with the ability of T-3 to hold discussions and
negotiations with such third party in connection therewith) in
compliance with the rights of T-3 under this Agreement.
Section
5.03 No Solicitation by R&M; R&M
Board Recommendation. (a) R&M shall
not, and shall cause the R&M Subsidiaries not to, and shall
direct and use its reasonable best efforts to cause its and the
R&M Subsidiaries’ Representatives not to:
(i) directly or indirectly solicit, initiate or knowingly
and intentionally encourage or facilitate any R&M
Acquisition Proposal or any inquiry or proposal that is
reasonably expected to lead to a R&M Acquisition Proposal,
or (ii) directly or indirectly participate in any
discussions or negotiations with or provide any nonpublic
information to any Person that has made any R&M Acquisition
Proposal or any inquiry or proposal that is reasonably expected
to lead to a R&M Acquisition Proposal. R&M
shall, and shall cause the R&M Subsidiaries and shall
direct and use its reasonable best efforts to cause its and the
R&M Subsidiaries’ Representatives to, immediately
cease and cause to be terminated all existing discussions or
negotiations with any Person conducted heretofore with respect
to any R&M Acquisition Proposal, or any inquiry or proposal
that is reasonably expected to lead to a R&M Acquisition
Proposal; request the prompt return or destruction of all
confidential information previously furnished in connection
therewith; and immediately terminate all physical and electronic
dataroom access previously granted to any such Person or its
Representatives. Notwithstanding the foregoing, at any time
prior to obtaining the R&M Shareholder Approval, in
response to a written R&M Acquisition Proposal that the
R&M Board determines in its good faith judgment (after
consultation with outside counsel and its financial advisor)
constitutes or is reasonably likely to lead to a Superior
R&M Acquisition Proposal, and which R&M Acquisition
Proposal was made after the date of this Agreement and did not
otherwise result from any material breach (or any other breach
that is knowing and intentional) of the non-solicitation
provisions of this Section 5.03(a), R&M may (and may
authorize and permit its Affiliates and its and their
Representatives to), subject to compliance with
Section 5.03(c): (A) furnish information and access
with respect to R&M and the R&M Subsidiaries to the
Person making such R&M Acquisition Proposal (and its
Representatives and financing sources) (provided that all
such information has previously been provided to T-3 or is
provided to
T-3 promptly
after the time it is provided to such Person) pursuant to an
executed confidentiality agreement the material terms of which,
as they relate to confidentiality, are in all material respects
not less restrictive of such Person than the Confidentiality
Agreement and the terms of which, as they relate to
confidentiality, shall not be waived, amended or modified by
R&M, and (B) participate in discussions regarding the
terms of such R&M Acquisition Proposal and the negotiation
of such terms with, and only with, the Person making such
R&M Acquisition Proposal (and such Person’s
Representatives and financing sources). Without limiting the
foregoing, any violation of the restrictions set forth in this
Section 5.03(a) by any Representative of R&M or any of
its Subsidiaries shall constitute a breach of this
Section 5.03(a) by R&M.
(b) Except as set forth below, neither the R&M Board
nor any committee thereof shall: (i) (A) withdraw (or
modify in any manner adverse to T-3), or propose publicly to
withdraw (or modify in any manner adverse to T-3), the R&M
Board Recommendation, or (B) adopt, recommend or declare
advisable, or propose publicly to adopt, recommend or declare
advisable, any R&M Acquisition Proposal (any action in this
clause (i) being referred to as a “R&M Adverse
Recommendation Change”), or (ii) adopt, recommend
or declare advisable, or propose publicly to adopt, recommend or
declare advisable, or allow R&M or any of its Subsidiaries
to execute or enter into, any Acquisition Agreement (other than
a confidentiality agreement referred to in Section 5.03(a))
constituting or related to, or that is intended to or would
reasonably be expected to lead to,
40
any R&M Acquisition Proposal, or requiring, or reasonably
expected to cause, R&M to abandon, terminate, delay or fail
to consummate, the Merger, the Second Merger (if required
pursuant to Section 1.05) or any of the other transactions
contemplated by this Agreement. Notwithstanding the foregoing,
at any time prior to obtaining the R&M Shareholder
Approval, the R&M Board may make a R&M Adverse
Recommendation Change if R&M has received a Superior
R&M Acquisition Proposal or the R&M Board determines,
in good faith, after consulting with outside legal counsel, that
the failure to make a R&M Adverse Recommendation Change
would reasonably be likely to be inconsistent with the
directors’ exercise of their fiduciary duties under
applicable Law; provided, however, that R&M
shall not be entitled to exercise its right to make a R&M
Adverse Recommendation Change until after the third Business Day
following T-3’s receipt of written notice (a
“R&M Notice of Recommendation Change”)
from R&M advising T-3 that the R&M Board intends to
take such action and specifying the reasons therefor (it being
understood and agreed that any material amendment of such
Superior R&M Acquisition Proposal shall require a new
R&M Notice of Recommendation Change and a new three
Business Day period). In determining whether to make a R&M
Adverse Recommendation Change, the R&M Board shall take
into account any changes to the terms of this Agreement proposed
by T-3 in response to a R&M Notice of Recommendation Change
or otherwise.
(c) In addition to the obligations of R&M set forth in
paragraphs (a) and (b) of this Section 5.03,
R&M shall promptly (and, in any event, within two Business
Days) advise T-3 orally and confirm in writing: (i) the
receipt of any indication (orally or in writing) that any Person
is considering a R&M Acquisition Proposal, and
(ii) the receipt of any R&M Acquisition Proposal
describing: (A) the material terms and conditions of any
such R&M Acquisition Proposal (including any material
changes thereto but R&M shall not be required to disclose
the identity of the Person making such R&M Acquisition
Proposal), and (B) if R&M determines to submit a
R&M Notice of Recommendation Change or if R&M
determines to terminate this Agreement pursuant to
Section 8.01(h), the identity of the Person making such
R&M Acquisition Proposal. R&M shall: (x) keep T-3
informed in all material respects of the status and details
(including any change to the terms thereof) of any R&M
Acquisition Proposal, and (y) provide to T-3 as soon as
practicable after receipt or delivery thereof copies of all
correspondence, agreements and other written material
(including, without limitation, copies of emails and other
electronic text communications) exchanged between R&M or
any of its Affiliates and any Person that describes any of the
terms or conditions of any R&M Acquisition Proposal;
provided, however, that R&M may redact the
identity of such Person unless required by clause (ii)(B) above.
R&M shall not, and shall cause its Representatives not to,
enter into any confidentiality or other agreement with any
Person which prohibits R&M from providing information to
T-3 as required by this Section 5.03(c).
(d) Nothing contained in this Section 5.03 shall
prohibit R&M from: (i) issuing a
“stop-look-and-listen communication” pursuant to
Rule 14d-9(f)
promulgated under the Exchange Act or taking and disclosing to
its stockholders positions required by
Rule 14d-9
or
Rule 14e-2
promulgated under the Exchange Act, in each case after the
commencement of a tender offer (within the meaning of
Rule 14d-2
promulgated under the Exchange Act), (ii) issuing a
statement in connection with a R&M Acquisition Proposal
that does not involve the commencement of a tender offer (within
the meaning of
Rule 14d-2
promulgated under the Exchange Act), so long as the statement
includes no more information than would be required for a
“stop-look-and-listen communication” under
Rule 14d-9(f)
promulgated under the Exchange Act if such provision was
applicable, (iii) making any disclosure to the stockholders
of R&M if, in the good faith judgment of the R&M Board
(after consultation with outside counsel) failure to so disclose
would be inconsistent with its fiduciary duties under applicable
Law, or (iv) making any factually accurate public statement
that describes R&M’s receipt of a R&M Acquisition
Proposal and the operation of this Agreement with respect
thereto; provided, however, that in no event shall
R&M or the R&M Board or any committee thereof take, or
agree or resolve to take, any action prohibited by
Section 5.03(b).
(e) T-3 agrees that neither it nor any of its Affiliates,
Subsidiaries or Representatives shall enter, or seek to enter,
into any agreement, arrangement or understanding with a
potential competing bidder for R&M that has the purpose or
effect of interfering with R&M’s ability to seek and
obtain a Superior R&M Acquisition Proposal from such party
(including interfering with the ability of R&M to hold
discussions and negotiations with such third party in connection
therewith) in compliance with the rights of R&M under this
Agreement.
41
ARTICLE VI
ADDITIONAL AGREEMENTS
Section
6.01 Preparation of the
Form S-4
and the Joint Proxy Statement;
Meetings. (a) As promptly as practicable
following the date of this Agreement, R&M and T-3 shall
jointly prepare and cause to be filed with the SEC a joint proxy
statement to be sent to the shareholders of R&M and the
stockholders of T-3 in connection with the R&M Shareholders
Meeting and the T-3 Stockholders Meeting (together with any
amendments or supplements thereto, the “Joint Proxy
Statement”), and R&M shall prepare and cause to be
filed with the SEC the
Form S-4,
in which the Joint Proxy Statement will be included as a
prospectus, and R&M and T-3 shall use reasonable best
efforts to have the Form
S-4 declared
effective under the Securities Act as promptly as practicable
after such filing. Each of T-3 and R&M shall furnish all
information required to be included in the Joint Proxy Statement
concerning such Person and its Affiliates to the other, and
provide such other assistance, as may be reasonably requested in
connection with the preparation, filing and distribution of the
Form S-4
and Joint Proxy Statement, and the
Form S-4
and Joint Proxy Statement shall include all information
reasonably requested by such other party to be included therein.
R&M shall also take any action (other than qualifying to do
business in any jurisdiction in which it is not now so
qualified) required to be taken under any applicable state
securities laws in connection with the issuance of R&M
Common Stock in the Merger and under the T-3 Stock Plan, and
each of R&M and T-3 shall furnish all information
concerning itself, its Affiliates and the holders of R&M
Capital Stock (and rights to acquire R&M Capital Shares
pursuant to the T-3 Stock Plan or the R&M Stock Plans, as
applicable) as may be reasonably requested in connection
therewith. Each of T-3 and R&M shall promptly notify the
other upon the receipt of any comments from the SEC or any
request from the SEC for amendments or supplements to the
Form S-4
or Joint Proxy Statement and shall provide the other with copies
of all correspondence between it and its Representatives, on the
one hand, and the SEC, on the other hand. Each of T-3 and
R&M shall use reasonable best efforts to respond as
promptly as practicable to any comments from the SEC with
respect to the
Form S-4
or Joint Proxy Statement. Notwithstanding the foregoing, prior
to filing the
Form S-4
(or any amendment or supplement thereto) or mailing the Joint
Proxy Statement (or any amendment or supplement thereto) or
responding to any comments of the SEC with respect thereto, each
of T-3 and R&M: (i) shall provide the other a
reasonable opportunity to review and comment on such document or
response (including the proposed final version of such document
or response), (ii) shall include in such document or
response all comments reasonably proposed by the other and
(iii) shall not file or mail such document or respond to
the SEC prior to receiving the approval of the other, which
approval shall not unreasonably be withheld, conditioned or
delayed. Each of T-3 and R&M shall advise the other,
promptly after receipt of notice thereof, of the time of
effectiveness of the
Form S-4,
the issuance of any stop order relating thereto or the
suspension of the qualification of the Merger Consideration for
offering or sale in any jurisdiction, and T-3 and R&M each
shall use reasonable best efforts to have any such stop order or
suspension lifted, reversed or otherwise terminated. T-3 and
R&M each also shall take any other action (other than
qualifying to do business in any jurisdiction in which it is not
now so qualified) required to be taken under the Securities Act,
the Exchange Act, any applicable foreign or state securities or
“blue sky” laws and the rules and regulations
thereunder in connection with the Merger, the Second Merger (if
required pursuant to Section 1.05) and the issuance of the
Stock Consideration.
(b) If, prior to the Effective Time, any event occurs with
respect to R&M or any R&M Subsidiary, or any change
occurs with respect to other information supplied by R&M
for inclusion in the Joint Proxy Statement or the
Form S-4,
which is required to be described in an amendment of, or a
supplement to, the Joint Proxy Statement or the
Form S-4,
R&M promptly shall notify T-3 of such event, and R&M
and T-3 shall cooperate in the prompt filing with the SEC of any
necessary amendment or supplement to the Joint Proxy Statement
or the
Form S-4
and, as required by Law, in disseminating the information
contained in such amendment or supplement to R&M’s
shareholders and T-3’s stockholders. Nothing in this
Section 6.01(b) shall limit the obligations of any party
under Section 6.01(a).
(c) If, prior to the Effective Time, any event occurs with
respect to T-3 or any T-3 Subsidiary, or any change occurs with
respect to other information supplied by T-3 for inclusion in
the Joint Proxy Statement or the
Form S-4,
which is required to be described in an amendment of, or a
supplement to, the Joint Proxy
42
Statement or the
Form S-4,
T-3 promptly shall notify R&M of such event, and T-3 and
R&M shall cooperate in the prompt filing with the SEC of
any necessary amendment or supplement to the Joint Proxy
Statement or the
Form S-4
and, as required by Law, in disseminating the information
contained in such amendment or supplement to R&M’s
shareholders and T-3’s stockholders. Nothing in this
Section 6.01(c) shall limit the obligations of any party
under Section 6.01(a).
(d) R&M shall, as soon as practicable following the
date of this Agreement: (i) in accordance with the R&M
Articles, the R&M Code and applicable Law, duly call, give
notice of, convene and hold the R&M Shareholders Meeting
for the sole purpose of seeking the R&M Shareholder
Approval, (ii) in accordance with the R&M Articles,
the R&M Code and applicable Law, cause the Joint Proxy
Statement to be mailed to R&M’s shareholders and to
hold the R&M Shareholders Meeting as soon as practicable
after the
Form S-4
is declared effective under the Securities Act, and
(iii) except as provided in Section 5.03(b), use its
reasonable best efforts to solicit the R&M Shareholder
Approval and to take all other action necessary or advisable to
secure the R&M Shareholder Approval. Once the R&M
Shareholders Meeting has been called and noticed, R&M shall
not postpone or adjourn the R&M Shareholders Meeting
without the consent of T-3, which shall not be unreasonably
withheld, delayed or conditioned (other than (A) for the
absence of a quorum, or (B) to allow reasonable additional
time for the filing and mailing of any supplemental or amended
disclosure which the R&M Board has determined in good
faith, after consultation with R&M’s outside counsel
and financial advisors, is necessary under applicable Law and
for such supplemental or amended disclosure to be disseminated
and reviewed by the R&M Shareholders prior to the R&M
Shareholders Meeting; provided, that in the event that
the R&M Shareholders Meeting is delayed to a date after the
Outside Date as a result of either (A) or (B) above,
then T-3 may extend the Outside Date to the fifth Business Day
after such date). Except in the event of a R&M Adverse
Recommendation Change permitted by Section 5.03(b), the
Joint Proxy Statement shall: (x) state that the R&M
Board has determined that entering into this Agreement is in the
best interest of R&M and the R&M Shareholders, and
(y) include the recommendation of the R&M Board that
the Merger and the other transactions contemplated hereby,
including the Share Issuance, be approved by the R&M
Shareholders (such recommendation described in this clause (y),
the “R&M Board Recommendation”). Except as
expressly contemplated by the foregoing sentence,
R&M’s obligations pursuant to this Section 6.01
shall not be affected by the commencement, public proposal,
public disclosure or communication to R&M of any R&M
Acquisition Proposal or by the making of any R&M Adverse
Recommendation Change by the R&M Board.
(e) T-3 shall, as soon as practicable following the date of
this Agreement: (i) in accordance with the T-3 Certificate,
the T-3 Bylaws and applicable Law, duly call, give notice of,
convene and hold the T-3 Stockholders Meeting for the purpose of
seeking the T-3 Stockholder Approval, (ii) in accordance
with the T-3 Certificate, the T-3 Bylaws and applicable Law,
cause the Joint Proxy Statement to be mailed to T-3’s
stockholders and to hold the T-3 Stockholders Meeting as
promptly as practicable after the
Form S-4
is declared effective under the Securities Act, and
(iii) except as provided in Section 5.02(b), use its
reasonable best efforts to solicit the T-3 Stockholder Approval
and to take all other action necessary or advisable to secure
the T-3 Stockholder Approval. Once the T-3 Stockholders Meeting
has been called and noticed, T-3 shall not postpone or adjourn
the T-3 Stockholders Meeting without the consent of R&M,
which shall not be unreasonably withheld, delayed or conditioned
(other than (A) for the absence of a quorum, or (B) to
allow reasonable additional time for the filing and mailing of
any supplemental or amended disclosure which the T-3 Board has
determined in good faith, after consultation with T-3’s
outside counsel and financial advisors, is necessary under
applicable Law and for such supplemental or amended disclosure
to be disseminated and reviewed by the T-3 Stockholders prior to
the T-3 Stockholders Meeting; provided, that in the event
that the T-3
Stockholders Meeting is delayed to a date after the Outside Date
as a result of either (A) or (B) above, then R&M
may extend the Outside Date to the third Business Day after such
date). Except in the event of a
T-3 Adverse
Recommendation Change permitted by Section 5.02(b), the
Joint Proxy Statement shall: (x) state that the T-3 Board
has determined that entering into this Agreement is in the best
interests of T-3 and the T-3 Stockholders, (y) that the
Merger is advisable, and (z) include the recommendation of
the T-3 Board that the Merger be approved by the T-3
Stockholders. Except as expressly contemplated by the foregoing
sentence,
T-3’s
obligations pursuant to this Section 6.01 shall not be
affected by the commencement, public proposal,
43
public disclosure or communication to T-3 of any T-3 Acquisition
Proposal or by the making of any T-3 Adverse Recommendation
Change by the T-3 Board.
(f) R&M and T-3 each shall use their respective
reasonable best efforts to hold the R&M Shareholders
Meeting and T-3 Stockholders Meeting on the same day at the same
time.
Section
6.02 Access to Information;
Confidentiality. Subject to applicable Law,
each of R&M and T-3 shall, and shall cause each of its
respective Subsidiaries to, afford to the other party and to the
Representatives of such other party reasonable access during the
period prior to the Effective Time to all their respective
properties, books, contracts, commitments, personnel and records
and, during such period, each of R&M and T-3 shall, and
shall cause each of its respective Subsidiaries to, furnish
promptly to the other party: (a) a copy of each report,
schedule, registration statement and other document filed by it
during such period pursuant to the requirements of Federal or
state securities laws, and (b) all other information
concerning its business, properties and personnel as such other
party may reasonably request; provided, however,
that either party may withhold any document or information that
is subject to the terms of a confidentiality agreement with a
third party (provided that the withholding party shall
use its commercially reasonable efforts to obtain the required
consent of such third party to such access or disclosure) or
subject to any attorney-client privilege (provided that
the withholding party shall use its commercially reasonable
efforts to allow for such access or disclosure (or as much of it
as possible) in a manner that does not result in a loss of
attorney-client privilege). If any material is withheld by such
party pursuant to the proviso to the preceding sentence, such
party shall inform the other party as to the general nature of
what is being withheld. All information exchanged pursuant to
this Section 6.02 shall be subject to the confidentiality
agreement dated December 21, 2009 between R&M and
T-3, as
amended on October 1, 2010 (the “Confidentiality
Agreement”).
Section
6.03 Required
Actions. (a) Subject to the terms of
this Agreement, including Section 6.03(c), R&M and T-3
each shall use reasonable best efforts to: (i) take, or
cause to be taken, all actions, and do, or cause to be done, and
to assist and cooperate with the other party in doing, all
things reasonable to consummate and make effective the
transactions contemplated hereby as promptly as practicable,
(ii) as promptly as practicable, obtain from any
Governmental Entity or any other third party any consents,
licenses, permits, waivers, approvals, authorizations or orders
required to be obtained or made by R&M or T-3 or any of
their respective Subsidiaries in connection with the
authorization, execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby,
(iii) defend any lawsuits or other legal proceedings,
whether judicial or administrative, challenging this Agreement
or the consummation of the transactions contemplated hereby,
including seeking to have any stay or temporary restraining
order entered by any court or other Governmental Entity vacated
or reversed, (iv) as promptly as practicable, make all
necessary filings, and thereafter make any other required
submissions, with respect to this Agreement, the Merger and the
Second Merger (if required pursuant to Section 1.05)
required under any applicable Law and (v) execute or
deliver any additional instruments necessary to consummate the
transactions contemplated by, and to fully carry out the
purposes of, this Agreement. R&M and T-3 shall cooperate
with each other in connection with the making of all such
filings, including providing copies of all such documents to the
non-filing party and its advisors prior to filing and, if
requested, accepting all reasonable additions, deletions or
changes suggested in connection therewith. R&M and T-3
shall use reasonable best efforts to furnish to each other all
information required for any application or other filing to be
made pursuant to any applicable Law in connection with the
transactions contemplated by this Agreement.
(b) In connection with and without limiting
Section 6.03(a), T-3 and the T-3 Board and R&M and the
R&M Board shall: (i) take all action reasonably
appropriate to ensure that no state takeover statute or similar
statute or regulation is or becomes applicable to this Agreement
or any transaction contemplated by this Agreement, and
(ii) if any state takeover statute or similar statute or
regulation becomes applicable to this Agreement or any
transaction contemplated by this Agreement, take all action
reasonably appropriate to ensure that the Merger, the Second
Merger (if required pursuant to Section 1.05) and the other
transactions contemplated by this Agreement may be consummated
as promptly as practicable on the terms contemplated by this
Agreement.
44
(c) Upon the terms and subject to the terms and conditions
of this Agreement, R&M and T-3 shall, and shall cause each
of their respective Subsidiaries to, cooperate and use
reasonable best efforts to obtain any Consents of any
Governmental Entity, and to make any registrations,
declarations, notices or filings, if any, necessary for Closing
under the HSR Act, and any other Federal, state or foreign Law
designed to prohibit, restrict or regulate actions for the
purpose or effect of monopolization, restraint of trade or
regulation of foreign investment (collectively
“Antitrust Laws”), to respond promptly to any
requests of any Governmental Entity for information under any
Antitrust Law, to secure the expiration or termination of any
applicable waiting period, to resolve any objections asserted
with respect to the transactions contemplated by this Agreement
raised by any Governmental Entity and to contest and resist any
action, including any legislative, administrative or judicial
action, and to prevent the entry of any court order and to have
vacated, lifted, reversed or overturned any Judgment (whether
temporary, preliminary or permanent) that restricts, prevents or
prohibits the consummation of the Merger or any other
transactions contemplated by this Agreement under any Antitrust
Law. The parties hereto will consult and cooperate with one
another, and consider in good faith the views of one another, in
connection with any analyses, appearances, presentations,
memoranda, briefs, responses, arguments, opinions and proposals
made or submitted by or on behalf of any party hereto in
connection with proceedings under or relating to any Antitrust
Law. Such cooperation shall include, but not be limited to, the
parties: (i) providing, in the case of oral communications
with a Governmental Entity, advance notice of any such
communication and, whether or not initiated by a party, an
opportunity for the other party to participate;
(ii) providing, in the case of written communications, an
opportunity for the other party to comment on any such
communication (including the incorporation of such reasonable
comments) and provide the other with a final copy of all such
communications (except for documents or information that reveal
any party’s negotiating objectives or strategies), which
shall, where applicable, be provided under a joint defense
agreement. Nothing in this Section 6.03 shall require
R&M or any R&M Subsidiary to make a Divestiture, other
than any Divestiture or Divestitures that may be conditioned
upon the consummation of the Merger and involve assets of
R&M, T-3 or any of their respective Subsidiaries that
accounted, in the aggregate, for less than $5,000,000 of
consolidated revenues (to R&M or T-3 as the case may be)
during the four most recently completed fiscal quarters of
R&M or T-3, as applicable, preceding the date of this
Agreement.
Section
6.04 Stock
Awards. (a) As soon as practicable
following the date of this Agreement, the T-3 Board (or, if
appropriate, any committee administering the T-3 Stock Plan)
shall adopt such resolutions or take such other actions
(including obtaining any required Consents) as may be required
so that:
(i) the terms of each outstanding T-3 Stock Option shall be
adjusted to provide that each such T-3 Stock Option, whether
vested or unvested, outstanding immediately prior to the
Effective Time shall be deemed to be fully vested on the day
immediately preceding the Effective Time in accordance with the
T-3 Stock Plan and, at the Effective Time, shall be converted
into, and shall constitute, a fully vested and exercisable
option to acquire, on the same terms and conditions as were
applicable to such T-3 Stock Option immediately prior to the
Effective Time, the number of R&M Common Shares (rounded up
to the nearest whole share) determined by multiplying the number
of shares of T-3 Common Stock subject to such T-3 Stock Option
by the Option Exchange Ratio, at an exercise price per R&M
Common Share, rounded up to the nearest whole cent, equal to:
(A) the per share exercise price for the shares of T-3
Common Stock otherwise purchasable pursuant to such
T-3 Stock
Option divided by (B) the Option Exchange Ratio (each, as
so adjusted, an “Adjusted Option”); and
(ii) the terms of all outstanding T-3 Restricted Shares
shall be adjusted to provide that all of the restrictions and
conditions applicable to each T-3 Restricted Share outstanding
immediately prior to the Effective Time that has not otherwise
become fully vested as unrestricted T-3 Common Stock prior to
the Effective Time shall be deemed satisfied, and the Restricted
Period (as defined in the T-3 Stock Plan) with respect thereto
shall be deemed to have expired, and thus such outstanding T-3
Restricted Shares shall become free of all restrictions and
fully vested and shall become unrestricted T-3 Common Stock on
the day immediately preceding the Effective Time in accordance
with the T-3 Stock Plan.
(b) All adjustments to T-3 Stock Options pursuant to this
Section 6.04 shall be in accordance with the requirements
under Section 409A of the Code and the regulations
thereunder, if applicable.
45
(c) At the Effective Time, R&M shall assume all of the
obligations of T-3 under: (i) the T-3 Stock Plan with
respect to the Adjusted Options outstanding as of the Effective
Date, and (ii) all agreements entered into under the
T-3 Stock
Plan evidencing the grant of the Adjusted Options outstanding as
of the Effective Time. As soon as practicable after the
Effective Time, R&M shall deliver to the holders of
Adjusted Options appropriate notices setting forth such
holders’ rights pursuant to the T-3 Stock Plan, and the
agreements evidencing the grants of such Adjusted Options shall
continue in effect on the same terms and conditions (subject to
the adjustments required by this Section 6.04 after giving
effect to the Merger) with respect to the Adjusted Options.
After the Effective Time, R&M shall comply with the terms
of the T-3 Stock Plan with respect to the Adjusted Options.
(d) All amounts payable pursuant to this Section 6.04
shall be subject to any required withholding of Taxes and shall
be paid without interest.
(e) R&M shall take all corporate action necessary to
reserve for issuance a sufficient number of R&M Common
Shares for delivery in connection with the exercise of the
Adjusted Options. As soon as practicable after the Effective
Time (but in no event later than the day following the Effective
Time), R&M shall cause to be filed with the SEC a
registration statement on
Form S-8
(or another appropriate form) registering (to the extent
permitted under applicable Law) a number of R&M Common
Shares equal to the number of R&M Common Shares subject to
the Adjusted Options. R&M shall use reasonable best efforts
to maintain (to the extent permitted under applicable Law) the
effectiveness of such registration statement (and maintain the
current status of the prospectus or prospectuses contained
therein) for so long as any Adjusted Options remain outstanding.
T-3 shall cooperate with, and assist R&M in the preparation
of, such registration statement.
Section
6.05 T-3 Warrants. As soon
as practicable following the date of this Agreement, the T-3
Board shall adopt such resolutions or take such other actions as
may be required so that effective as of the Effective Time each
outstanding T-3 Warrant is converted into, and shall constitute,
solely the right to receive, upon payment of the Exercise Price
(as defined in such T-3 Warrant) applicable to such T-3 Warrant
immediately prior to the Effective Time and in accordance with
the other terms and conditions applicable to such T-3 Warrant
immediately prior to the Effective Time, in lieu of the number
of shares of T-3 Common Stock which could be acquired upon
exercise of such T-3 Warrant immediately prior to the Effective
Time, the same Merger Consideration as would have been issuable
and payable with respect to such shares of T-3 Common Stock
pursuant to Section 2.01 if such shares of T-3 Common Stock
had been outstanding immediately prior to the Effective Time
(including any cash payable in lieu of fractional shares
pursuant to Section 2.03(f) with respect thereto) (the
“Warrant Consideration”). R&M shall cause
the Surviving Entity to assume by written instrument, effective
immediately prior to the Effective Time, the obligations of T-3
under Section 2 of the applicable T-3 Warrant, and R&M
hereby assumes, effective as of the Effective Time, the
obligation to deliver to the holder of each T-3 Warrant, upon
payment of the Exercise Price in accordance with the terms and
conditions of such T-3 Warrant, the Warrant Consideration that
such holder of a T-3 Warrant is entitled to acquire under the
terms of this Section 6.05.
Section 6.06 Indemnification,
Exculpation and Insurance. (a) Without
limiting any other rights that any Indemnified Person may have
pursuant to any employment agreement or indemnification
agreement in effect on the date hereof or otherwise, from the
Effective Time and until the six year anniversary of the
Effective Time, R&M shall indemnify, defend and hold
harmless each Person who is now, or has been at any time prior
to the date of this Agreement or who becomes prior to the
Effective Time, a director or officer of T-3 or any of its
Subsidiaries or who act as a fiduciary under any T-3 Benefit
Plan (the “Indemnified Persons”) against all
losses, claims, damages, costs, fines, penalties, expenses
(including reasonable attorneys’ and other
professionals’ fees and expenses), liabilities or judgments
or amounts that are paid in settlement (with the approval of the
indemnifying party, which approval shall not be unreasonably
withheld, delayed or conditioned), of or incurred in connection
with any threatened or actual claim, action, suit, proceeding or
investigation to which such Indemnified Person is a party by
reason of the fact that such Person is or was a director or
officer of T-3 or any of its Subsidiaries, a fiduciary under any
T-3 Benefit Plan or is or was serving at the request of T-3 or
any of its Subsidiaries (as described in Section 6.06 of
the T-3 Disclosure Letter) as a director, officer, employee or
agent of another corporation, partnership, limited liability
company, joint venture, trust or other enterprise existing prior
to or at the Effective Time and whether asserted or claimed
prior to, at
46
or after the Effective Time (“Indemnified
Liabilities”), including all Indemnified Liabilities
based in whole or in part on, or arising in whole or in part out
of, or pertaining to, this Agreement or the transactions
contemplated hereby, in each case to the fullest extent
permitted under applicable Law (and R&M shall pay expenses
incurred in connection therewith in advance of the final
disposition of any such claim, action, suit, proceeding or
investigation to each Indemnified Person to the fullest extent
permitted under applicable Law, subject to delivery to R&M
of an undertaking as hereinafter provided). Without limiting the
foregoing, in the event any such claim, action, suit, proceeding
or investigation is brought or threatened to be brought against
any Indemnified Persons (whether arising before or after the
Effective Time): (i) the Indemnified Persons may retain
T-3’s regularly engaged legal counsel or other counsel
satisfactory to them, R&M shall pay all reasonable fees and
expenses of such counsel for the Indemnified Persons promptly as
statements therefor are received, and (ii) R&M shall
use its reasonable best efforts to assist in the defense of any
such matter (and the Indemnified Parties shall cooperate with
R&M with respect thereto); provided that R&M
shall not be liable for any settlement effected without its
prior written consent (which consent shall not be unreasonably
withheld, delayed or conditioned). Any Indemnified Person
wishing to claim indemnification or advancement of expenses
under this Section 6.06, upon learning of any such claim,
action, suit, proceeding or investigation, shall notify R&M
(but the failure so to notify shall not relieve a party from any
obligations that it may have under this Section 6.06 except
to the extent such failure materially prejudices such
party’s position with respect to such claims) and shall
deliver to R&M an undertaking to repay any amounts advanced
to it if it shall ultimately be determined that such Indemnified
Person is not entitled to indemnification, but without any
requirement for the posting of a bond or any other terms or
conditions other than those expressly set forth herein;
provided further, that R&M shall not be
obligated pursuant to this Section 6.06(a) to pay the fees
and disbursements of more than one counsel for all Indemnified
Persons in any single action, unless, in the good faith judgment
of any of the Indemnified Persons, there is or may be a conflict
of interests between two or more of such Indemnified Persons, in
which case there may be separate counsel for each similarly
situated group. With respect to any determination of whether any
Indemnified Person is entitled to indemnification by R&M
under this Section 6.06, such Indemnified Person shall have
the right, as contemplated by the DGCL, to require that such
determination be made by special, independent legal counsel
jointly selected by the Indemnified Person and R&M, and who
has not otherwise performed material services for R&M or
the Indemnified Person within the last three (3) years.
(b) R&M and the Surviving Entity shall not amend,
repeal or otherwise modify the certificate of incorporation or
bylaws of the Surviving Entity in any manner that would affect
adversely the rights thereunder or under the T-3 Certificate or
the T-3 Bylaws of any Indemnified Person to indemnification,
exculpation and advancement except to the extent required by
law. R&M shall, and shall cause the Surviving Entity to,
fulfill and honor any indemnification, expense advancement or
exculpation agreements between T-3 and any of its directors,
officers or employees existing immediately prior to the
Effective Time.
(c) R&M and the Surviving Entity shall, to the fullest
extent permitted by law, indemnify any Indemnified Person
against all reasonable costs and expenses (including reasonable
attorneys’ fees and expenses), relating to the enforcement
of such Indemnified Person’s rights under this
Section 6.06 or under any charter, bylaw or contract if
such Indemnified Person is ultimately determined to be entitled
to indemnification hereunder or thereunder, promptly following
such determination.
(d) In the event that R&M or the Surviving Entity or
any of their respective successors or assigns:
(i) consolidates with or merges into any other Person and
is not the continuing or Surviving Entity or entity of such
consolidation or merger or (ii) transfers or conveys all or
substantially all of its assets to any Person, then, and in each
such case, R&M and the Surviving Entity shall cause proper
provision to be made so that the successors and assigns of
R&M or the Surviving Entity, as the case may be, assume the
obligations set forth in this Section 6.06 contemporaneous
with the closing of any such consolidation, merger, transfer or
conveyance.
(e) At or prior to the Effective Time, R&M and the
Surviving Entity shall cause to be put in place and R&M
shall fully prepay immediately prior to the Effective Time,
“tail” insurance policies with a claims of at least
for six years following the Effective Time from an insurance
carrier with the same or better credit rating as T-3’s
current insurance carrier with respect to directors’ and
officers’ liability insurance in an amount and
47
scope of not less than the existing coverage and have other
terms at least as favorable to the insured persons as the
directors’ and officers’ liability insurance coverage
maintained by T-3 or the T-3 Subsidiaries as of the date of this
Agreement, as disclosed in the T-3 Disclosure Letter. R&M
shall maintain such policy in full force and effect, and
continue to honor the obligations thereunder.
(f) The provisions of this Section 6.06:
(i) shall survive consummation of the Merger and the Second
Merger (if required pursuant to Section 1.05),
(ii) are intended to be for the benefit of, and will be
enforceable by, the parties hereto and each Person entitled to
indemnification or insurance coverage or expense advancement
pursuant to this Section 6.06, and, his or her heirs and
his or her representatives, and (iii) are in addition to,
and not in substitution for, any other rights to indemnification
or contribution that any such Person may have by contract or
otherwise, including under the terms of the respective charters
or bylaws or comparable organizational documents of T-3 and the
T-3 Subsidiaries.
Section 6.07 Fees
and Expenses. All fees and expenses incurred
in connection with the Merger and the other transactions
contemplated by this Agreement shall be paid by the party
incurring such fees or expenses, whether or not such
transactions are consummated.
Section 6.08 Certain
Tax Matters. (a) None of R&M,
Merger Sub, Merger Sub II or T-3 shall take, nor shall they
permit any of their respective Subsidiaries, Affiliates,
Representatives or any “related person” (within the
meaning of such term as used in Treasury Regulations
Section 1.368-1)
to take, any action that would prevent the Merger and the Second
Merger (if required pursuant to Section 1.05), taken
together in the manner described in Revenue Ruling
2001-46 from
qualifying as a reorganization described in Section 368(a)
of the Code. Merger Sub and Merger Sub II shall not, in
connection with the transactions provided for in this Agreement,
elect or take action to be treated as an entity whose separate
existence from R&M is disregarded for U.S. federal
income Tax purposes, be merged with or into any entity whose
separate existence from R&M is disregarded for
U.S. federal income Tax purposes or transfer any portion of
its assets to R&M or an entity that is treated as a
disregarded entity for U.S. federal income Tax purposes.
R&M shall not, in connection with the transactions provided
for in this Agreement, take any action which would cause Merger
Sub or Merger Sub II to be treated as an entity whose
separate existence from R&M is disregarded for
U.S. federal income Tax purposes. The parties shall not
take any position inconsistent with the Intended Tax Treatment.
For the avoidance of doubt: (i) in determining whether the
Aggregate Stock Consideration Closing Value is 80% or more of
the Aggregate Reorganization Consideration Closing Value for
purposes of satisfying the requirements of
Section 368(a)(2)(E) of the Code, the Stock Consideration
shall be valued as of the close of the Business Day immediately
preceding the Closing Date, and (ii) in determining whether
the payment of Stock Consideration and other relevant amounts
pursuant to this Agreement satisfy the continuity of interest
requirement of Treasury
Regulation Section 1.368-1(e),
if the Second Merger is required by Section 1.05, the
“signing date rule” of Treasury
Regulation Section 1.368-1T(e)(2)
(or such successor provision having the same effect) shall be
applicable to the valuation of R&M Common Shares consistent
with IRS Notice
2010-25
(provided that the availability of such “signing date
rule” is not prevented by subsequent regulatory
pronouncement or statutory provision), and the parties shall
take any action required to satisfy such IRS Notice and shall
not adopt any treatment inconsistent with such treatment.
(b) T-3, R&M, Merger Sub and Merger Sub II each
shall use its commercially reasonable efforts to obtain the Tax
opinions described in Sections 7.02(d) and 7.03(d),
including by making representations and covenants requested by
Tax counsel in order to render such Tax opinions. Each of T-3,
R&M, Merger Sub and Merger Sub II shall use its
commercially reasonable efforts not to take or cause to be taken
any action that would cause to be untrue (or fail to take or
cause not to be taken any action which inaction would cause to
be untrue) any of the representations and covenants made to Tax
counsel in furtherance of such Tax opinions.
Section 6.09 Transaction
Litigation. T-3 shall give R&M the
reasonable opportunity to participate in the defense or
settlement of any stockholder litigation against T-3 or its
directors relating to the Merger and the other transactions
contemplated by this Agreement, and no such settlement shall be
agreed to without the prior written consent of R&M, which
consent shall not be unreasonably withheld, conditioned or
delayed.
Section 6.10 Public
Announcements. Except with respect to any T-3
Adverse Recommendation Change or any R&M Adverse
Recommendation Change made in accordance with the terms of this
Agreement,
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R&M and T-3 shall consult with each other before issuing,
and give each other the reasonable opportunity to review and
comment upon, any press release or other public statements with
respect to the transactions contemplated by this Agreement,
including the Merger, and shall not issue any such press release
or make any such public statement prior to such consultation,
except as such party may reasonably conclude may be required by
applicable Law, court process or by obligations pursuant to any
listing agreement with any national securities exchange or
national securities quotation system. T-3 and R&M agree
that the initial press release to be issued with respect to the
transactions contemplated by this Agreement shall be in the form
heretofore agreed to by the parties.
Section 6.11 Stock
Exchange Listing. R&M shall use
reasonable best efforts to cause the R&M Common Shares to
be issued in the Merger and any R&M Common Shares issuable
following the Effective Time in respect of rights under the T-3
Stock Plan to be approved for listing on the NYSE, subject to
official notice of issuance, prior to the Closing Date.
Section 6.12 Employee
Matters. (a) From the Effective Time
through August 31, 2011, the employees of T-3 and the T-3
Subsidiaries who remain in the employment of R&M and the
R&M Subsidiaries (including T-3 and any T-3 Subsidiary)
(the “Continuing Employees”) shall receive
compensation and benefits (other than equity compensation) that
is comparable in the aggregate to the compensation and benefits
(other than equity compensation) provided to such employees of
T-3 and the T-3 Subsidiaries immediately prior to the Effective
Time.
(b) With respect to any employee benefit plan maintained by
R&M or any of the R&M Subsidiaries in which Continuing
Employees and their eligible dependents will be eligible to
participate from and after the Effective Time, for all purposes,
including determining eligibility to participate, level of
benefits including benefit accruals (other than benefit accruals
under defined benefit plans) and vesting service recognized by
T-3 and any T-3 Subsidiary immediately prior to the Effective
Time shall be treated as service with R&M or the R&M
Subsidiaries; provided, however, that such service
need not be recognized to the extent that such recognition would
result in any duplication of benefits.
(c) With respect to any welfare plan maintained by R&M
or any R&M Subsidiary in which Continuing Employees are
eligible to participate after the Effective Time, R&M or
such R&M Subsidiary shall: (i) waive all limitations
as to preexisting conditions and exclusions with respect to
participation and coverage requirements applicable to such
employees to the extent such conditions and exclusions were
satisfied or did not apply to such employees under the welfare
plans of T-3 and the T-3 Subsidiaries prior to the Effective
Time and (ii) provide each Continuing Employee with credit
for any co-payments and deductibles paid and for out-of-pocket
maximums incurred prior to the Effective Time in satisfying any
analogous deductible or out-of-pocket requirements to the extent
applicable under any such plan.
(d) R&M shall, and shall cause the R&M
Subsidiaries to, honor, in accordance with its terms, each T-3
Benefit Plan and all obligations thereunder, including any
rights or benefits arising as a result of the transactions
contemplated hereby (either alone or in combination with any
other event).
(e) Nothing contained herein shall be construed as
requiring, and T-3 shall take no action that would have the
effect of requiring, R&M to continue any specific plans or
to continue the employment of any specific person. Furthermore,
no provision of this Agreement shall be construed as prohibiting
or limiting the ability of R&M to amend, modify or
terminate any plans, programs, policies, arrangements,
agreements or understandings of R&M or T-3. Without
limiting the scope of Section 9.07, nothing in this
Section 6.12 shall confer any rights or remedies of any
kind or description upon any Continuing Employee or any other
person other than the parties hereto and their respective
successors and assigns.
Section 6.13 Obligations
of Merger Sub and Merger Sub II. R&M
shall cause Merger Sub and Merger Sub II to perform their
respective obligations under this Agreement and to consummate
the transactions contemplated hereby upon the terms and subject
to the conditions set forth in this Agreement.
Section 6.14 Reasonable
Best Efforts. Except to the extent that the
parties’ obligations (and exceptions thereto) are
specifically set forth elsewhere in this Agreement, upon the
terms and subject to the conditions set forth in this Agreement,
each of the parties shall use reasonable best efforts to take,
or cause to be taken, all
49
actions, and to do, or cause to be done, and to assist and
cooperate with the other parties in doing, all things necessary,
proper or advisable to consummate and make effective, in the
most expeditious manner practicable, the Merger and the other
transactions contemplated by this Agreement.
Section 6.15 Investigation;
No Other Representations or
Warranties. (a) Each of R&M, Merger
Sub and Merger Sub II acknowledges and agrees that it has
made its own inquiry and investigation into, and, based thereon,
has formed an independent judgment concerning, T-3 and its
Subsidiaries and their businesses and operations, and R&M,
Merger Sub and Merger Sub II have requested such documents
and information from
T-3 as each
such party considers material in determining whether to enter
into this Agreement and to consummate the transactions
contemplated in this Agreement. Each of R&M, Merger Sub and
Merger Sub II acknowledges and agrees that it has had an
opportunity to ask all questions of and receive answers from T-3
with respect to any matter such party considers material in
determining whether to enter into this Agreement and to
consummate the transactions contemplated in this Agreement. In
connection with such investigation, R&M, Merger Sub, Merger
Sub II and their Representatives have received from T-3 or
its Representatives certain other estimates, projections and
other forecasts for T-3 and its Subsidiaries and certain
estimates, plans and budget information. Each of Parent
R&M, Merger Sub and Merger Sub II acknowledges and
agrees that there are uncertainties inherent in attempting to
make such projections, forecasts, estimates, plans and budgets;
that R&M, Merger Sub and Merger Sub II are familiar
with such uncertainties; that R&M, Merger Sub and Merger
Sub II are taking full responsibility for making their own
evaluation of the adequacy and accuracy of all estimates,
projections, forecasts, plans and budgets so furnished to them
or their representatives; and that R&M, Merger Sub and
Merger Sub II will not (and will cause all of their
respective Subsidiaries or any other Person acting on their
behalf to not) assert any claim or cause of action against T-3
or any of T-3’s Representatives with respect thereto, or
hold any such Person liable with respect to such projections,
forecasts, estimates, plans or budgets provided by R&M to
T-3 or any of its Representatives in connection with the
transactions contemplated by this Agreement, absent actual fraud.
(b) T-3 acknowledges and agrees that it has made its own
inquiry and investigation into, and, based thereon, has formed
an independent judgment concerning, R&M and its
Subsidiaries and their businesses and operations, and T-3 has
requested such documents and information from R&M as it
considers material in determining whether to enter into this
Agreement and to consummate the transactions contemplated in
this Agreement. T-3 acknowledges and agrees that it has had an
opportunity to ask all questions of and receive answers from
R&M with respect to any matter it considers material in
determining whether to enter into this Agreement and to
consummate the transactions contemplated in this Agreement. In
connection with such investigation, T-3 and its Representatives
have received from R&M or its Representatives certain other
estimates, projections and other forecasts for R&M and its
Subsidiaries and certain estimates, plans and budget
information. T-3 acknowledges and agrees that there are
uncertainties inherent in attempting to make such projections,
forecasts, estimates, plans and budgets; that T-3 is familiar
with such uncertainties; that T-3 is taking full responsibility
for making its own evaluation of the adequacy and accuracy of
all estimates, projections, forecasts, plans and budgets so
furnished to it or its representatives and that T-3 will not
(and will cause all of its Subsidiaries or any other Person
acting on their behalf to not) assert any claim or cause of
action against R&M or any of R&M’s
Representatives with respect thereto, or hold any such Person
liable with respect to such projections, forecasts, estimates,
plans or budgets provided by T-3 to R&M or any of its
Representatives in connection with the transactions contemplated
by this Agreement, absent actual fraud.
(c) Each of R&M, Merger Sub and Merger Sub II
agrees that, except for the representations and warranties made
by T-3 that are expressly set forth in Article III (as
modified by the T-3 Disclosure Letter or as disclosed in the T-3
SEC Documents), neither T-3 nor any other Person has made and
shall not be deemed to have made any representation or warranty
of any kind. Without limiting the generality of the foregoing,
each of R&M, Merger Sub and Merger Sub II agrees that
neither T-3, any holder of T-3’s securities nor any of
their respective Affiliates or Representatives, makes or has
made any representation or warranty to R&M, Merger Sub,
Merger Sub II or any of their Representatives or Affiliates
with respect to:
(i) any projections, forecasts or other estimates, plans or
budgets of future revenues, expenses or expenditures, future
results of operations (or any component thereof), future cash
flows (or any component thereof) or future financial condition
(or any component thereof) of T-3 or any of its
50
Subsidiaries or the future business, operations or affairs of
T-3 or any of its Subsidiaries heretofore or hereafter delivered
to or made available to R&M, Merger Sub, Merger Sub II
or their respective Representatives or Affiliates; or
(ii) any other information, statement or documents
heretofore or hereafter delivered to or made available to
R&M, Merger Sub, Merger Sub II or any of their
Representatives or Affiliates, except to the extent and as
expressly covered by a representation or warranty made by T-3
and contained in Article III.
(d) T-3 agrees that, except for the representations and
warranties made by R&M, Merger Sub and Merger Sub II
that are expressly set forth in Article IV (as modified by
the R&M Disclosure Letter or as disclosed in the R&M
SEC Documents), none of R&M, Merger Sub, Merger Sub II
or any other Person has made and shall not be deemed to have
made any representation or warranty of any kind. Without
limiting the generality of the foregoing, T-3 agrees that none
of R&M, Merger Sub, Merger Sub II, any holder of
R&M’s securities nor any of their respective
Affiliates or Representatives, makes or has made any
representation or warranty to T-3 or any of its Representatives
or Affiliates with respect to:
(i) any projections, forecasts or other estimates, plans or
budgets of future revenues, expenses or expenditures, future
results of operations (or any component thereof), future cash
flows (or any component thereof) or future financial condition
(or any component thereof) of R&M or any of its
Subsidiaries or the future business, operations or affairs of
R&M or any of its Subsidiaries heretofore or hereafter
delivered to or made available to T-3 or its Representatives or
Affiliates; or
(ii) any other information, statement or documents
heretofore or hereafter delivered to or made available to T-3 or
its Representatives or Affiliates, except to the extent and as
expressly covered by a representation or warranty made by
R&M, Merger Sub and Merger Sub II and contained in
Article IV.
Section 6.16 Section 16(b)
Matters. Prior to the Effective Time,
R&M, Merger Sub, Merger Sub II and T-3 shall take all
such steps, if any, as may be required to cause any dispositions
of equity securities of
T-3
(including derivative securities) or acquisitions of equity
securities of R&M (including derivative securities) in the
Merger by each individual who is subject to the reporting
requirements of Section 16(a) of the Exchange Act with
respect to T-3 to be exempt under
Rule 16b-3
under the Exchange Act.
ARTICLE VII
CONDITIONS
PRECEDENT
Section 7.01 Conditions
to Each Party’s Obligation to Effect the
Merger. The respective obligation of each
party to effect the Merger is subject to the satisfaction or
waiver on or prior to the Closing Date of the following
conditions:
(a) Shareholder and Stockholder
Approvals. The R&M Shareholder Approval
and the T-3 Stockholder Approval shall have been obtained.
(b) Listing. The R&M Common
Shares issuable as Stock Consideration pursuant to this
Agreement shall have been approved for listing on the NYSE,
subject to official notice of issuance.
(c) Approvals. The waiting periods
and approvals applicable to the consummation of the Merger
pursuant to the Antitrust Laws described in Section 7.01(c)
of the T-3 Disclosure Letter shall have expired, been terminated
or been obtained, as applicable. All other consents, approvals,
permits and authorizations required to be obtained prior to the
Effective Time from any Governmental Entity, including under any
Antitrust Laws other than as set forth in Section 7.01(c)
of the T-3 Disclosure Letter, shall have been obtained, and any
applicable waiting period shall have expired or been terminated,
except where the failure to comply would not be reasonably
likely to have, individually or in the aggregate, a Material
Adverse Effect (on the combined company following consummation
of the Merger).
(d) No Legal Restraints. No
applicable Law and no Judgment, preliminary, temporary or
permanent, or other legal restraint or prohibition
(collectively, the “Legal Restraints”) shall be
in effect that prevents the consummation of the Merger or the
Second Merger (if required pursuant to Section 1.05);
51
provided, however, that a party seeking to rely on
this condition to not complete the Closing shall have complied
with its obligations under Section 6.03 and 6.14 in all
material respects.
(e) Form S-4. The
Form S-4
shall have become effective under the Securities Act and shall
not be the subject of any stop order, and no proceedings for
that purpose shall have been initiated or threatened by the SEC.
Section 7.02 Conditions
to Obligations of T-3. The obligation of T-3
to consummate the Merger is further subject to the satisfaction
or waiver (by T-3) at or prior to the Closing of the following
conditions:
(a) Representations and
Warranties. (i) The representations and
warranties of R&M, Merger Sub and Merger Sub II
contained in this Agreement (except for the representations and
warranties contained in Section 4.03) shall be true and
correct at and as of the Closing Date as if made at and as of
such time (except to the extent expressly made as of an earlier
date, in which case as of such earlier date), except where the
failure of such representations and warranties to be true and
correct (without giving effect to any limitation as to
“materiality” or “R&M Material Adverse
Effect” set forth therein), individually or in the
aggregate, would not reasonably be expected to have a R&M
Material Adverse Effect, and (ii) the representations and
warranties of R&M, Merger Sub and Merger Sub II
contained in Section 4.03 shall be true and correct in all
material respects at and as of the Closing Date as if made at
and as of such time (except to the extent expressly made as of
an earlier date, in which case as of such earlier date). T-3
shall have received a certificate signed on behalf of each of
R&M, Merger Sub and Merger Sub II by an executive
officer of each of R&M, Merger Sub, and Merger Sub II,
respectively, to such effect.
(b) Performance of Obligations of R&M, Merger
Sub and Merger Sub II. R&M, Merger Sub
and Merger Sub II shall have performed, in all material
respects, all material covenants and obligations contained in
this Agreement required to be performed by them under this
Agreement at or prior to the Closing Date, and T-3 shall have
received a certificate signed on behalf of each of R&M,
Merger Sub and Merger Sub II by an executive officer of
each of R&M, Merger Sub and Merger Sub II
respectively, dated the Closing Date, certifying to such effect.
(c) Absence of R&M Material Adverse
Effect. Since the date of this Agreement,
there shall not have occurred any event or development that,
individually or in the aggregate, has had or is reasonably
expected to have a R&M Material Adverse Effect.
(d) Tax Opinion. T-3 shall have
received the opinion of Xxxxxx & Xxxxxx, or such other
nationally recognized Tax counsel reasonably satisfactory to T-3
as of the Closing Date, to the effect that either (i) the
Merger will qualify as a reorganization described in
Section 368(a)(2)(E) of the Code or (ii) the Merger
and the Second Merger, taken together, qualify as a
reorganization described in Section 368(a)(2)(D) of the
Code. In rendering the opinion described in this
Section 7.02(d), the Tax counsel rendering such opinion may
require and rely upon (and may incorporate by reference)
reasonable and customary representations and covenants,
including those contained in certificates of officers of T-3,
R&M, Merger Sub and Merger Sub II.
Section 7.03 Conditions
to Obligation of R&M. The obligation of
R&M, Merger Sub and Merger Sub II to consummate the
satisfaction or waiver (by R&M) at or prior to the Closing
is further subject to the following conditions:
(a) Representations and
Warranties. (i) The representations and
warranties of T-3 contained in this Agreement (except for the
representations and warranties contained in Section 3.03)
shall be true and correct at and as of the Closing Date as if
made at and as of such time (except to the extent expressly made
as of an earlier date, in which case as of such earlier date),
except where the failure of such representations and warranties
to be true and correct (without giving effect to any limitation
as to “materiality” or “T-3 Material Adverse
Effect” set forth therein), individually or in the
aggregate, would not reasonably be expected to have a T-3
Material Adverse Effect, and (ii) the representations and
warranties of T-3 contained in Section 3.03 shall be true
and correct in all material respects at and as of the Closing
Date as if made at and as of such time (except to the extent
expressly made as of an earlier
52
date, in which case as of such earlier date). R&M shall
have received a certificate signed on behalf of T-3 by an
executive officer of T-3 to such effect.
(b) Performance of Obligations of
T-3. T-3 shall have performed, in all
material respects, all material covenants and obligations
contained in this Agreement required to be performed by it under
this Agreement at or prior to the Closing Date, and R&M
shall have received a certificate signed on behalf of T-3 by an
executive officer of T-3 dated the Closing Date, certifying to
such effect.
(c) Absence of T-3 Material Adverse
Effect. Since the date of this Agreement,
there shall not have occurred any event or development that,
individually or in the aggregate, has had or is reasonably
expected to have a T-3 Material Adverse Effect.
(d) Tax Opinion. R&M shall
have received the opinion of Xxxxxxxx Xxxx LLP, or such other
nationally recognized Tax counsel reasonably satisfactory to
R&M, as of the Closing Date, to the effect that either
(i) the Merger will qualify as a reorganization described
in Section 368(a)(2)(E) of the Code or (ii) the Merger
and the Second Merger, taken together, qualify as a
reorganization described in Section 368(a)(2)(D) of the Code. In
rendering the opinion described in this Section 7.03(d),
the Tax counsel rendering such opinion may require and rely upon
(and may incorporate by reference) reasonable and customary
representations and covenants, including those contained in
certificates of officers of T-3, R&M, Merger Sub and Merger
Sub II.
(e) Appraisal Shares. The number
of Appraisal Shares for which demands for appraisal have not
been withdrawn shall not exceed 10% of the outstanding shares of
T-3 Common Stock.
ARTICLE VIII
TERMINATION,
AMENDMENT AND WAIVER
Section 8.01 Termination. This
Agreement may be terminated at any time prior to the Effective
Time, whether before or after receipt of the R&M
Shareholder Approval or the T-3 Stockholder Approval:
(a) by mutual written consent of T-3 and R&M;
(b) by action of the T-3 Board or the R&M Board if:
(i) the Merger is not consummated on or before the Outside
Date. The “Outside Date” shall mean
May 15, 2011; provided, however, that the
right to terminate this Agreement pursuant to this
Section 8.01(b)(i) shall not be available to any party
whose failure to perform or observe in any material respect any
of its obligations under this Agreement in any manner shall have
been the cause of, or resulted in, the failure of the Merger to
occur on or before such date;
(ii) the condition set forth in Section 7.01(d) is not
satisfied and the Legal Restraint giving rise to such
non-satisfaction shall have become final and non-appealable;
provided that the terminating party shall have complied
with its obligations under Section 6.03 and 6.14 in all
material respects;
(iii) the R&M Shareholder Approval is not obtained at
the R&M Shareholders Meeting duly convened (unless such
R&M Shareholders Meeting has been adjourned, in which case
at the final adjournment thereof); or
(iv) the T-3 Stockholder Approval is not obtained at the
T-3 Stockholders Meeting duly convened (unless such T-3
Stockholders Meeting has been adjourned, in which case at the
final adjournment thereof);
(c) by T-3, if R&M, Merger Sub or Merger Sub II
breaches or fails to perform any of its covenants or agreements
contained in this Agreement, or if any of the representations or
warranties of R&M, Merger Sub or Merger Sub II
contained herein fails to be true and correct, which breach or
failure: (i) would give rise to the failure of a condition
set forth in Section 7.02(a) or 7.02(b), and (ii) is
not reasonably capable of being cured by the Outside Date or, if
reasonably capable of being cured, R&M, Merger Sub or
Merger Sub II, as the case may be, is not diligently attempting,
or has ceased to diligently
53
attempt, to cure such breach or failure after receiving written
notice from T-3 (provided that T-3 is not then in breach
of any covenant or agreement contained in this Agreement and no
representation or warranty of T-3 contained in this Agreement
then fails to be true and correct such that the conditions set
forth in Section 7.03(a) or 7.03(b) could not then be
satisfied);
(d) by R&M, if T-3 breaches or fails to perform any of
its covenants or agreements contained in this Agreement, or if
any of the representations or warranties of T-3 contained herein
fails to be true and correct, which breach or failure:
(i) would give rise to the failure of a condition set forth
in Section 7.03(a) or 7.03(b), and (ii) is not
reasonably capable of being cured by the Outside Date or, if
reasonably capable of being cured, T-3 is not diligently
attempting, or has ceased to diligently attempt, to cure such
breach or failure after receiving written notice from R&M
(provided that R&M, Merger Sub or Merger Sub II
is not then in breach of any covenant or agreement contained in
this Agreement and no representation or warranty of R&M,
Merger Sub or Merger Sub II contained in this Agreement
then fails to be true and correct such that the conditions set
forth in Section 7.02(a) or 7.02(b) could not then be
satisfied);
(e) by R&M, prior to the T-3 Stockholders Meeting, if:
(i) a T-3 Adverse Recommendation Change occurs, or
(ii) the T-3 Board or a committee of the T-3 Board approves
or recommends any T-3 Acquisition Proposal (whether or not such
approval or recommendation is prohibited under
Section 5.02), or (iii) if the T-3 Board fails, within
10 Business Days after any tender offer or exchange offer
relating to the T-3 Common Stock by any Person (other than
R&M) is first published, given or sent, to send the holders
of the T-3 Common Stock a statement disclosing that the T-3
Board recommends rejection of such tender offer or exchange
offer, or (iv) T-3, any T-3 Subsidiary or their respective
Representatives commits a willful and material breach of any of
its obligations under Section 5.02;
(f) by T-3, prior to the R&M Stockholders Meeting, if:
(i) a R&M Adverse Recommendation Change occurs, or
(ii) the R&M Board or a committee of the R&M
Board approves or recommends any R&M Acquisition Proposal
(whether or not such approval or recommendation is prohibited
under Section 5.03), or (iii) if the R&M Board
fails, within 10 Business Days after any tender offer or
exchange offer relating to the R&M Common Shares by any
Person (other than T-3) is first published, given or sent, to
send the holders of the T-3 Common Shares a statement disclosing
that the R&M Board recommends rejection of such tender
offer or exchange offer, or (iv) R&M, any R&M
Subsidiary or any of their respective Representatives commits a
willful and material breach of any of its obligations under
Section 5.03;
(g) by T-3 (acting through the T-3 Board), solely in
response to a Superior T-3 Acquisition Proposal, if:
(i) concurrently therewith T-3 enters into an Acquisition
Agreement with respect to the Superior T-3 Acquisition Proposal,
(ii) the Superior T-3 Acquisition Proposal has not been
withdrawn and continues to be a Superior T-3 Acquisition
Proposal, (iii) the T-3 Stockholder Approval has not been
obtained, (iv) T-3 and its Representatives have complied in
all material respects with its obligations under
Section 5.02(c) with respect to such Superior T-3
Acquisition Proposal, and (v) T-3 pays all fees as required
pursuant to Section 8.02(b); or
(h) by R&M (acting through the R&M Board), solely
in response to a Superior R&M Acquisition Proposal, if:
(i) concurrently therewith R&M enters into an
Acquisition Agreement with respect to the Superior R&M
Acquisition Proposal, (ii) the Superior R&M
Acquisition Proposal has not been withdrawn and continues to be
a Superior R&M Acquisition Proposal, (iii) the
R&M Shareholder Approval has not been obtained,
(iv) R&M and its Representatives have complied in all
material respects with its obligations under
Section 5.03(c) with respect to such Superior R&M
Acquisition Proposal, and (v) R&M pays all fees as
required pursuant to Section 8.02(c).
Section 8.02 Effect
of Termination. (a) In the event of
termination of this Agreement by either R&M or T-3 as
provided in Section 8.01, this Agreement shall forthwith
become void and have no effect, and there shall be no liability
or obligation on the part of any party hereto except with
respect to Section 3.22, Section 4.19, the last
sentence of Section 6.02, Section 6.07, this
Section 8.02 and Article IX, which provisions shall
survive such termination indefinitely; provided,
however, that no such termination (or any provision of
this Agreement) shall relieve any party from liability for any
damages for fraud or any willful and
54
material breach by a party of any representation, warranty,
covenant or agreement set forth in this Agreement. For purposes
of this Agreement, “willful and material
breach” means a deliberate act or failure to act, which
act or failure to act constitutes in and of itself a material
breach of this Agreement that the breaching party is aware would
or would reasonably be expected to breach its obligations under
this Agreement.
(b) T-3 shall pay to R&M a fee of $12,000,000 (the
“T-3 Termination Fee”) if:
(i) R&M terminates this Agreement pursuant to
Section 8.01(e);
(ii) T-3 terminates this Agreement pursuant to
Section 8.01(g); or
(iii) (A) prior to the T-3 Stockholders Meeting, a T-3
Acquisition Proposal has been made to T-3 and has become
publicly known or has been made directly to the stockholders of
T-3 generally by any Person, and in each case such T-3
Acquisition Proposal has not been publicly withdrawn prior to
the T-3 Stockholder Meeting, (B) this Agreement is
terminated pursuant to Section 8.01(b)(iv), and
(C) within 12 months after such termination T-3 enters
into a definitive Contract to consummate a T-3 Acquisition
Proposal or a T-3 Acquisition Proposal is consummated. For
purposes of this Section 8.02(b)(iii)(C) only, the term
“T-3 Acquisition Proposal” shall have the
meaning assigned to such term in Section 9.03, except that
all references to “20%” therein shall be deemed to be
references to “50%.”
Any T-3 Termination Fee due under this Section 8.02(b)
shall be paid by wire transfer of
same-day
funds (x) in the case of clause (i) above, on the
Business Day immediately following the date of termination of
this Agreement and (y) in the case of clause (iii)
above, on the date of consummation of such T-3 Acquisition
Proposal.
(c) R&M shall pay to T-3 a fee of $24,000,000 (the
“R&M Termination Fee”) if:
(i) T-3 terminates this Agreement pursuant to
Section 8.01(f);
(ii) R&M terminates this Agreement pursuant to
Section 8.01(h); or
(iii) (A) prior to the R&M Shareholders Meeting,
a R&M Acquisition Proposal has been made to R&M and
has become publicly known or has been made directly to the
shareholders of R&M generally by any Person, and in each
case such R&M Acquisition Proposal has not been publicly
withdrawn prior to the R&M Shareholder Meeting, (B) this
Agreement is terminated pursuant to Section 8.01(b)(iii),
and (C) within 12 months after such termination
R&M enters into a definitive Contract to consummate a
R&M Acquisition Proposal or a R&M Acquisition Proposal
is consummated. For purposes of this
Section 8.02(c)(iii)(C) only, the term “R&M
Acquisition Proposal” shall have the meaning assigned
to such term in Section 9.03, except that all references to
“20%” therein shall be deemed to be references to
“50%.”
Any R&M Termination Fee due under this Section 8.02(c)
shall be paid by wire transfer of
same-day
funds (x) in the case of clause (i) above, on the
Business Day immediately following the date of termination of
this Agreement and (y) in the case of clause (iii)
above, on the date of the consummation of such R&M
Acquisition Proposal.
(d) R&M and T-3 acknowledge and agree that the
agreements contained in Sections 8.02(b) and 8.02(c) are an
integral part of the transactions contemplated by this
Agreement, and that, without these agreements, neither T-3 nor
R&M would enter into this Agreement. Accordingly, if T-3
fails promptly to pay the amount due pursuant to
Section 8.02(b) or R&M fails promptly to pay the
amount due pursuant to Section 8.02(c), and, in order to
obtain such payment, the Person owed such payment commences a
suit, action or other proceeding that results in a Judgment in
its favor for such payment, the Person owing such payment shall
pay to the Person owed such payment its costs and expenses
(including attorneys’ fees and expenses) in connection with
such suit, action or other proceeding, together with interest on
the amount of such payment from the date such payment was
required to be made until the date of payment at the rate of
3-month
LIBOR as of the date such payment was required to be made (as
adjusted thereafter on a quarterly basis to the then current
3-month
LIBOR) plus 3%.
55
Section 8.03 Amendment. This
Agreement may be amended by the parties at any time before or
after receipt of the R&M Shareholder Approval or the T-3
Stockholder Approval; provided, however, that:
(i) after receipt of the R&M Shareholder Approval,
there shall be made no amendment that by Law requires further
approval by the shareholders of R&M without the further
approval of such shareholders, (ii) after receipt of the
T-3 Stockholder Approval, there shall be made no amendment that
by Law requires further approval by the stockholders of T-3
without the further approval of such stockholders, (iii) no
amendment shall be made to this Agreement after the Effective
Time, and (iv) except as provided above in this
Section 8.03, no amendment of this Agreement shall require
the approval of the shareholders of R&M or the stockholders
of T-3. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties.
Section 8.04 Extension;
Waiver. At any time prior to the Effective
Time, the parties may (a) extend the time for the
performance of any of the obligations or other acts of the other
parties, (b) waive any inaccuracies in the representations
and warranties contained in this Agreement or in any document
delivered pursuant to this Agreement, (c) waive compliance
with any covenants and agreements contained in this Agreement,
or (d) waive the satisfaction of any of the conditions
contained in this Agreement. No extension or waiver by R&M
shall require the approval of the shareholders of R&M
unless such approval is required by Law, and no extension or
waiver by T-3 shall require the approval of the stockholders of
T-3 unless such approval is required by Law. Any agreement on
the part of a party to any such extension or waiver shall be
valid only if set forth in an instrument in writing signed on
behalf of such party. The failure of any party to this Agreement
to assert any of its rights under this Agreement or otherwise
shall not constitute a waiver of such rights.
Section 8.05 Procedure
for Termination, Amendment, Extension or
Waiver. A termination of this Agreement
pursuant to Section 8.01, an amendment of this Agreement
pursuant to Section 8.03 or an extension or waiver pursuant
to Section 8.04 shall, in order to be effective, require,
in the case of T-3, R&M, Merger Sub or Merger Sub II,
action by its Board of Directors, or the duly authorized
designee of its Board of Directors. Termination of this
Agreement prior to the Effective Time shall not require the
approval of the shareholders of R&M or the stockholders of
T-3.
ARTICLE IX
GENERAL
PROVISIONS
Section 9.01 Nonsurvival
of Representations and Warranties. None of
the representations and warranties in this Agreement or in any
instrument delivered pursuant to this Agreement shall survive
the Effective Time. This Section 9.01 shall not limit any
covenant or agreement of a party which by its terms contemplates
performance after the Effective Time.
Section 9.02 Notices. All
notices, requests, claims, demands and other communications
under this Agreement shall be in writing and shall be deemed
given upon receipt by the parties at the following addresses (or
at such other address for a party as shall be specified by like
notice):
if to T-3, to:
T-3 Energy Services, Inc.
0000 Xxxxxxx
Xxxxxxx, Xxxxx 00000
Attention: General Counsel
with a copy (which shall not constitute notice) to:
Xxxxxx & Xxxxxx L.L.P.
0000 Xxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Attention: Xxxxxxx X. XxXxxxxxxx
Xxxxxxx
X. Xxxx
56
if to R&M, Merger Sub or Merger Sub II, to:
Xxxxxxx & Xxxxx, Inc.
00 Xxxx Xxxxxx, Xxxxx 000
Xxxxxx, Xxxx
Attention: President and Chief Executive Officer
with a copy (which shall not constitute notice) to:
Xxxxxxxx Xxxx LLP
0000 Xxxxxxxxxx Xxxxx, X.X.
Xxxxxx, Xxxx 00000
Attention: Xxxx X. Xxxxxx
Section 9.03 Definitions. For
purposes of this Agreement:
“
Acquisition Agreement” means any letter
of intent, memorandum of understanding, agreement in principle,
merger agreement, acquisition agreement, option agreement, joint
venture agreement, alliance agreement, partnership agreement or
other similar agreement or arrangement constituting or related
to, or that is intended to or would reasonably be expected to
lead to, any T-3 Acquisition Proposal or R&M Acquisition
Proposal, or requiring, or reasonably expected to cause, T-3 or
R&M to abandon, terminate, delay or fail to consummate, or
that would otherwise impede, interfere with or be inconsistent
with, the Merger or any of the other transactions contemplated
by this Agreement, or requiring, or reasonably expected to
cause, T-3 or R&M to fail to comply with this Agreement
(other than a confidentiality agreement referred to in
Section 5.02(a) or Section 5.03(a), respectively).
“Adjusted Option” shall have the meaning
specified in Section 6.04(a)(i).
“Affiliate” of any Person means another
Person that directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common
control with, such first Person.
“Aggregate Reorganization Consideration Closing
Value” means the sum of: (i) the Aggregate
Stock Consideration Closing Value, (ii) the aggregate
amount of the Cash Consideration to be paid to holders of T-3
Common Stock, (iii) the aggregate amount of cash payable to
holders of T-3 Warrants pursuant to Section 6.05,
(iv) an amount equal to the product of: (A) the number
of R&M Common Shares that can be issued to the holders of
T-3 Warrants pursuant to Section 6.05, the number of
R&M Common Shares to be issued to the former holders of T-3
Restricted Shares with respect to T-3 Restricted Shares that
vest after the day this Agreement is executed, and the number of
R&M Common Shares to be issued to the holders of T-3 Stock
Options with respect to any such options that are exercised
after the day that this Agreement is executed, and (B) the
R&M Share Closing Price, (v) the amount of any cash
and the fair market value of any property that is distributed,
transferred or paid by T-3 to its stockholders (whether in a
redemption transaction or as a dividend distribution) in
connection with the Merger, and (vi) the amount of cash and
the fair market value of property used by R&M or its
Affiliates to purchase T-3 Common Stock other than in connection
with the Merger.
“Aggregate Stock Consideration Closing
Value” means the product of: (i) the number of
R&M Common Shares that would be issued in the Merger as
Merger Consideration if there were no reduction for cash to be
paid in lieu of fractional R&M Shares pursuant to
Section 2.03(f) (other than the number of R&M Common
Shares to be issued to the holders of the T-3 Warrants pursuant
to Section 6.05, the number of R&M Common Shares to be
issued to the former holders of T-3 Restricted Shares with
respect to T-3 Restricted Shares that vest after the day this
Agreement is executed, and the number of R&M Common Shares
to be issued to the former holders of T-3 Stock Options with
respect to any such options that are exercised after the day
that this Agreement is executed), and (ii) the R&M
Share Closing Price.
“Agreement” shall have the meaning
specified in the Preamble.
“Antitrust Laws” shall have the meaning
specified in Section 6.03(c).
“Appraisal Shares” shall have the
meaning specified in Section 2.02.
57
“Business Day” means any day other than
(i) a Saturday or a Sunday or (ii) a day on which
banking and savings and loan institutions are authorized or
required by Law to be closed in New York City or the State of
Delaware.
“Cash Consideration” shall have the
meaning specified in Section 2.01(c).
“Certificate” shall have the meaning
specified in Section 2.01(c).
“Certificate of Merger” shall have the
meaning specified in Section 1.03.
“Closing” shall have the meaning
specified in Section 1.02.
“Closing Date” shall have the meaning
specified in Section 1.02.
“Code” means the Internal Revenue Code
of 1986, as amended.
“Confidentiality Agreement” shall have
the meaning specified in Section 6.02.
“Consent” means any consent, approval,
clearance, waiver, waiting period expiration, Permit or order.
“Continuing Employees” shall have the
meaning specified in Section 6.12(a).
“Contract” shall mean any legally
binding contract, lease, license, indenture, note, bond,
agreement, concession, franchise or other instrument.
“Delaware Secretary of State” shall have
the meaning specified in Section 1.03.
“DGCL” shall have the meaning specified
in Section 1.01.
A “Divestiture” of any asset means (i) any
sale, transfer, license, separate holding, divestiture or other
disposition, or any prohibition of, or any limitation on, the
acquisition, ownership, operation, effective control or exercise
of full rights of ownership, of such asset or (ii) the
termination or amendment of any existing relationships or
contractual rights.
“Effective Time” shall have the meaning
specified in Section 1.03.
“Environmental Claim” means any
administrative, regulatory or judicial proceedings, suits,
orders, liens or investigations, or any written demands,
directives, claims or notices of noncompliance or violation by
or from any Person alleging liability arising out of, based on
or resulting from (i) the presence or Release of, or
exposure to, any Hazardous Materials at any location; or
(ii) the failure to comply with any Environmental Law or
any Permit issued pursuant to Environmental Law.
“Environmental Laws” means all
applicable Laws or Judgments of any Governmental Entity that are
in effect as of the date of this Agreement relating to pollution
or protection of natural resources, human health (to the extent
relating to exposure to Hazardous Materials) or the environment
(including ambient air, surface water, groundwater, land surface
or subsurface strata) including such Laws and Judgments relating
to the Release or threatened Release of, or exposure to,
Hazardous Materials and the generation, manufacture,
distribution, use, processing, treatment, storage, transport,
disposal or arrangement for transport or disposal of Hazardous
Materials.
“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended.
“Exchange Act” means the Securities
Exchange Act of 1934, as amended.
“Exchange Agent” shall have the meaning
specified in Section 2.03(a).
“Exchange Fund” shall have the meaning
specified in Section 2.03(a).
“Filed R&M Contract” shall have the
meaning specified in Section 4.14(a).
“Filed T-3 Contract” shall have the
meaning specified in Section 3.14(a).
“Filed T-3 SEC Documents” means T-3 SEC
Documents filed and publicly available prior to the date of this
Agreement.
58
“Form S-4”
means the registration statement on
Form S-4
in connection with the issuance by R&M of the Stock
Consideration, in which the Joint Proxy Statement shall be
included as a prospectus.
“GAAP” means generally accepted
accounting principles as in effect in the United States.
“Governmental Entity” means any foreign
or domestic federal, state, regional or local government or any
court of competent jurisdiction, regulatory or administrative
agency or commission or other governmental authority or
instrumentality.
“Grant Date” means the date on which the
grant of a stock option is, by its terms, to be effective.
“Hazardous Materials” means any
substance that, by its nature or its use, is regulated or as to
which liability might arise under any Environmental Law
including any: (i) chemical, product, material, substance
or waste defined as or included in the definition of
“hazardous substance,” “hazardous material,”
“hazardous waste,” “restricted hazardous
waste,” “extremely hazardous waste,” “solid
waste,” “toxic waste,” “extremely hazardous
substance,” “toxic substance,” “toxic
pollutant,” “contaminant,” “pollutant,”
or words of similar meaning or import found in any Environmental
Law; (ii) petroleum hydrocarbons, petroleum products,
petroleum substances, natural gas, crude oil, or any components,
fractions, or derivatives thereof Released into the environment;
and (iii) asbestos containing materials, polychlorinated
biphenyls, radioactive materials, urea formaldehyde foam
insulation or radon gas.
“HSR Act” means the
Xxxx-Xxxxx-Xxxxxx
Antitrust Improvements Act of 1976, as amended.
“Indebtedness” means, with respect to
any Person, without duplication, (i) all obligations of
such Person for borrowed money, or with respect to unearned
advances of any kind to such Person, (ii) all obligations
of such Person evidenced by bonds, debentures, notes or similar
instruments, (iii) all capitalized lease obligations of
such Person, (iv) all guarantees and arrangements having
the economic effect of a guarantee of such Person of any
Indebtedness of any other Person, and (v) all obligations
or undertakings of such Person to maintain or cause to be
maintained the financial position of others or to purchase the
obligations of others.
“Indemnified Liabilities” shall have the
meaning specified in Section 6.06(a).
“Indemnified Person” shall have the
meaning specified in Section 6.06(a).
“Intellectual Property Rights” means
patents, patent applications, patent rights, trademarks,
trademark rights, trade names, trade name rights, service marks,
service xxxx rights, copyrights and other proprietary
intellectual property rights and any such rights in computer
programs.
“Intended Tax Treatment” shall have the
meaning specified in the Recitals.
“Intermediate Surviving Entity” shall
have the meaning specified in Section 1.01.
“IRS” means the U.S. Internal
Revenue Service.
“Joint Proxy Statement” shall have the
meaning specified in Section 6.01(a).
“Judgment” means a judgment, settlement,
writ, order or decree of any court or other Governmental Entity.
“Knowledge” of: (i) T-3 means, with
respect to any matter in question, the knowledge of any of the
following Persons: Xxxxxx X. Xxxxxxx, Xxxxx X. Xxxxxxxx, Xxxxx
X. Xxxxxxxxxxxx and Xxxxx Xxxxx, and (ii) R&M, Merger
Sub or Merger Sub II means, with respect to any matter in
question, the knowledge of any of the following Persons: Xxxxx
X. Xxxxxxx, Xxxxxxxxxxx X. Xxx, Xxxxx Xxxxxxxx and Xxxxx X.
Xxxxx. A fact is “Known” to a Person if that
Person has Knowledge of the fact.
“Law” means any applicable statute, law
(including common law), ordinance, rule or regulation.
“Legal Restraints” shall have the
meaning specified in Section 7.01(d).
“Letter of Transmittal” shall have the
meaning specified in Section 2.03(b).
59
“Lien” means any pledge, lien, charge,
mortgage, encumbrance or security interest of any kind or nature
whatsoever
“Material Adverse Effect” with respect
to any Person means any event or development that materially and
adversely affects the business, properties, financial condition
or results of operations of such Person and its Subsidiaries,
taken as a whole, excluding any effect that is attributable to,
results from or arises in connection with (i) changes or
conditions generally affecting the industries in which such
Person and any of its Subsidiaries operate, except to the extent
such effect has a materially disproportionate effect on such
Person and its Subsidiaries, taken as a whole, relative to
others in the industries in which such Person and any of its
Subsidiaries operate, (ii) announcement of this Agreement
or consummation of the transactions contemplated hereby
(including any loss of customers or revenues in connection
therewith), (iii) the outbreak or escalation of hostilities
or any acts of war, sabotage or terrorism, or any earthquake,
hurricane, tornado or other natural disaster, except to the
extent such effect has a materially disproportionate effect on
such Person and its Subsidiaries, taken as a whole, relative to
others in the industries in which such Person and any of its
Subsidiaries operate, (iv) general economic or regulatory,
legislative or political conditions or securities, credit,
financial or other capital markets conditions, in each case in
the United States or any foreign jurisdiction, except to the
extent such effect has a materially disproportionate effect on
such Person and its Subsidiaries, taken as a whole, relative to
others in the industries in which such Person and any of its
Subsidiaries operate, or (v) any failure, in and of itself,
to meet projections, forecasts, estimates or predictions in
respect of revenues, earnings or other financial or operating
metrics for any period (it being understood that the underlying
facts or occurrences giving rise to or contributing to such
failure shall be taken into account in determining whether there
has been a Material Adverse Effect (except to the extent such
underlying facts or occurrences are excluded from being taken
into account by clauses (i) through (iv) of this
definition)).
“Merger” shall have the meaning
specified in Section 1.01.
“Merger Consideration” shall have the
meaning specified in Section 2.01(c).
“Merger Sub” shall have the meaning
specified in the Preamble.
“Merger Sub II” shall have the meaning
specified in the Preamble.
“Merger Sub Common Stock” shall have the
meaning specified in Section 2.01(a).
“NYSE” shall have the meaning specified
in Section 2.03(f).
“OGCL” shall have the meaning specified
in Section 4.03(b).
“Option Exchange Ratio” means 1.192
R&M Common Shares for each share of T-3 Common Stock.
“Outside Date” shall have the meaning
specified in Section 8.01(b).
“Permit” means any applicable franchise,
license, permit, registration, authorization, variance, waiver,
exemption or approval obtained from or issued by any
Governmental Entity.
“Person” means any natural person, firm,
corporation, partnership, company, limited liability company,
trust, joint venture, association, Governmental Entity or other
entity.
“R&M” shall have the meaning
specified in the Preamble.
“R&M Acquisition Proposal” means
any proposal or offer (whether or not in writing), with respect
to any (i) merger, consolidation, share exchange, other
business combination or similar transaction involving R&M,
(ii) sale, lease, contribution or other disposition,
directly or indirectly (including by way of merger,
consolidation, share exchange, other business combination,
partnership, joint venture, sale of capital stock of or other
equity interests in a R&M Subsidiary or otherwise) of any
business or assets of R&M or the R&M Subsidiaries
representing 20% or more of the consolidated revenues, net
income or assets of R&M and the R&M Subsidiaries,
taken as a whole, (iii) issuance, sale or other
disposition, directly or indirectly, to any Person (or the
stockholders of any Person) or group of securities (or options,
rights or warrants to purchase, or securities convertible into
or exchangeable for, such securities) representing 20% or more
of the voting power of R&M, (iv) transaction in which
any Person (or the stockholders of any Person) shall acquire,
directly or
60
indirectly, beneficial ownership, or the right to acquire
beneficial ownership, or formation of any group which
beneficially owns or has the right to acquire beneficial
ownership of, 20% or more of the R&M Common Shares or
(v) any combination of the foregoing (in each case, other
than the Merger).
“R&M Adverse Recommendation Change”
shall have the meaning specified in Section 5.03(b).
“R&M Articles” shall have the
meaning specified in Section 4.01.
“R&M Benefit Plans” shall have the
meaning specified in Section 4.10(a).
“R&M Board” shall have the meaning
specified in the Recitals.
“R&M Board Recommendation” shall
have the meaning specified in Section 6.01(d).
“R&M Capital Shares” shall have the
meaning specified in Section 4.03(a).
“R&M Code” shall have the meaning
specified in Section 4.01.
“R&M Common Shares” means the
common shares, without par value, of R&M.
“R&M Commonly Controlled Entity”
shall have the meaning specified in Section 4.10(a).
“R&M Disclosure Letter” shall have
the meaning specified in Article IV.
“R&M Financial Advisor” shall have
the meaning specified in Section 4.19.
“R&M Material Adverse Effect” means
a Material Adverse Effect with respect to R&M.
“R&M Material Contract” shall have
the meaning specified in Section 4.14(b).
“R&M Multiemployer Pension Plan”
shall have the meaning specified in Section 4.10(c).
“R&M Notice of Recommendation
Change” shall have the meaning specified in
Section 5.03(b).
“R&M Pension Plans” shall have the
meaning specified in Section 4.10(a).
“R&M Performance Share Unit” means
any restricted stock unit that is subject to performance-based
vesting and whose value is determined with reference to the
value of shares of R&M Common Shares, and granted under any
R&M Stock Plan.
“R&M Permits” shall have the
meaning specified in Section 4.01.
“R&M Restricted Stock Unit” means
any restricted stock unit payable in shares of R&M Common
Shares or whose value is determined with reference to the value
of shares of R&M Common Shares and granted under any
R&M Stock Plan.
“R&M SEC Documents” shall have the
meaning specified in Section 4.06(a).
“R&M Share Closing Price” means the
closing price of a R&M Common Share as reported on the NYSE
for the last trading session closing prior to the Closing Date,
except as otherwise provided in Section 6.08.
“R&M Shareholder Approval” shall
have the meaning specified in Section 4.04(a).
“R&M Shareholders Meeting” shall
have the meaning specified in Section 4.04(a).
“R&M Stock-Based Awards” shall have
the meaning specified in Section 4.03(a).
“R&M Stock Option” means any option
to purchase R&M Common Shares granted under any R&M
Stock Plan.
“R&M Stock Plans” means the
R&M 2004 Stock Incentive Plan and the R&M 1999
Long-Term Stock Incentive Plan.
“R&M Subsidiaries” shall have the
meaning specified in Section 4.01.
“R&M Termination Fee” shall have
the meaning specified in Section 8.02(c).
61
“R&M Voting Debt” shall have the
meaning specified in Section 4.03(b).
“Release” means any spilling, emitting,
leaking, dumping, injecting, pouring, depositing, disposing,
discharging, dispersing, leaching or migrating into or through
the environment (including ambient air, surface water,
groundwater, land surface or subsurface strata).
“Representatives” means, collectively, a
Person’s directors, officers, employees, investment
bankers, accountants, attorneys or other advisors, agents or
representatives.
“SEC” means the U.S. Securities and
Exchange Commission.
“Second Merger” shall have the meaning
specified in Section 1.05.
“Securities Act” shall mean the
Securities Act of 1933, as amended.
“Share Issuance” shall have the meaning
specified in Section 4.04(a).
“SOX” means the Xxxxxxxx-Xxxxx Act of
2002, as amended.
“Specified Parachute Payments” shall
have the meaning specified in Section 3.10(j).
“Stock Consideration” shall have the
meaning specified in Section 2.01(c).
A “Subsidiary” of any Person means another
Person, an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient
to elect at least a majority of its Board of Directors or other
governing body (or, if there are no such voting interests, more
than 50% of the equity interests of which) is owned directly or
indirectly by such first Person.
“Superior R&M Acquisition Proposal”
means any bona fide written proposal or offer made by a third
party or group pursuant to which such third party (or, in a
merger, consolidation or statutory share-exchange involving such
third party, the stockholders of such third party) or group
would acquire, directly or indirectly, all, or at least a
majority of the R&M Common Shares or assets of R&M or
any of the R&M Subsidiaries, that represent more than 50%
of the consolidated revenues, net income or assets of R&M
and the R&M Subsidiaries, taken as a whole, which the
R&M Board determines in good faith (after consultation with
outside counsel and its financial advisor) is (i) on terms
more favorable from a financial point of view to the holders of
R&M Common Shares than the Merger, taking into account all
the terms and conditions of such proposal and this Agreement
(including any changes proposed by T-3 to the terms of this
Agreement), and (ii) reasonably likely to be completed,
taking into account all financial, regulatory, legal and other
aspects of such proposal.
“Superior T-3 Acquisition Proposal”
means any bona fide written proposal or offer made by a third
party or group pursuant to which such third party (or, in a
merger, consolidation or statutory share-exchange involving such
third party, the stockholders of such third party) or group
would acquire, directly or indirectly, all, or at least a
majority of the T-3 Common Stock or assets of T-3 or any of the
T-3 Subsidiaries, that represent more than 50% of the
consolidated revenues, net income or assets of T-3 and the T-3
Subsidiaries, taken as a whole, which the T-3 Board determines
in good faith (after consultation with outside counsel and its
financial advisor) is: (i) more favorable from a financial
point of view to the holders of T-3 Common Stock than the
Merger, taking into account all the terms and conditions of such
proposal and this Agreement (including any changes proposed by
R&M to the terms of this Agreement), and
(ii) reasonably likely to be completed, taking into account
all financial, regulatory, legal and other aspects of such
proposal.
“Surviving Entity” shall mean, if the
Second Merger occurs, Merger Sub II or, if the Second
Merger is not required to occur under Section 1.05, T-3.
“Surviving Entity Bylaws” shall have the
meaning specified in Section 1.06.
“Surviving Entity Certificate” shall
have the meaning specified in Section 1.06.
“T-3” shall have the meaning specified
in the Preamble.
62
“T-3 Acquisition Proposal” means any
proposal or offer (whether or not in writing), with respect to
any (i) merger, consolidation, share exchange, other
business combination or similar transaction involving T-3,
(ii) sale, lease, contribution or other disposition,
directly or indirectly (including by way of merger,
consolidation, share exchange, other business combination,
partnership, joint venture, sale of capital stock of or other
equity interests in a T-3 Subsidiary or otherwise) of any
business or assets of T-3 or the T-3 Subsidiaries representing
20% or more of the consolidated revenues, net income or assets
of T-3 and the T-3 Subsidiaries, taken as a whole,
(iii) issuance, sale or other disposition, directly or
indirectly, to any Person (or the stockholders of any Person) or
group of securities (or options, rights or warrants to purchase,
or securities convertible into or exchangeable for, such
securities) representing 20% or more of the voting power of T-3,
or (iv) transaction in which any Person (or the
stockholders of any Person) shall acquire, directly or
indirectly, beneficial ownership, or the right to acquire
beneficial ownership, or formation of any group which
beneficially owns or has the right to acquire beneficial
ownership of, 20% or more of the T-3 Common Stock (in each case,
other than the Merger).
“T-3 Adverse Recommendation Change”
shall have the meaning specified in Section 5.02(b).
“T-3 Benefit Plans” shall have the
meaning specified in Section 3.10(a).
“T-3 Board” shall have the meaning
specified in the Recitals.
“T-3 Bylaws” shall have the meaning
specified in Section 3.01.
“T-3 Capital Stock” shall have the
meaning specified in Section 3.03(a).
“T-3 Certificate” shall have the meaning
specified in Section 3.01.
“T-3 Common Stock” shall have the
meaning specified in Section 2.01(b).
“T-3 Commonly Controlled Entity” shall
have the meaning specified in Section 3.10(a).
“T-3 Disclosure Letter” shall have the
meaning specified in Article III.
“T-3 Financial Advisor” shall have the
meaning specified in Section 3.22.
“T-3 Material Adverse Effect” means a
Material Adverse Effect with respect to T-3.
“T-3 Material Contract” shall have the
meaning specified in Section 3.14(b).
“T-3 Multiemployer Pension Plan” shall
have the meaning specified in Section 3.10(c).
“T-3 Notice of Recommendation Change”
shall have the meaning specified in Section 5.02(b).
“T-3 Pension Plans” shall have the
meaning specified in Section 3.10(a).
“T-3 Permits” shall have the meaning
specified in Section 3.01.
“T-3 Preferred Stock” shall have the
meaning specified in Section 3.03(a).
“T-3 Restricted Share” means any award
of T-3 Common Stock that is subject to restrictions based on
performance or continuing service and granted under the T-3
Stock Plan.
“T-3 SEC Documents” shall have the
meaning specified in Section 3.06(a).
“T-3 Stock-Based Awards” shall have the
meaning specified in Section 3.03(a).
“T-3 Stock Option” means any option to
purchase T-3 Common Stock granted under any T-3 Stock Plan.
“T-3 Stock Plan” means the T-3 2002
Stock Incentive Plan.
“T-3 Stockholder Approval” shall have
the meaning specified in Section 3.04(a).
“T-3 Stockholders” means holders of the
T-3 Common Stock.
“T-3 Stockholders Meeting” shall have
the meaning specified in Section 3.04(a).
“T-3 Subsidiaries” shall have the
meaning specified in Section 3.01.
63
“T-3 Termination Fee” shall have the
meaning specified in Section 8.02(b).
“T-3 Voting Debt” shall have the meaning
specified in Section 3.03(b).
“T-3 Warrants” means warrants to
purchase an aggregate of 8,595 shares of T-3 Common Stock
issued in 2001 at a price of $12.80 per share.
“Tax Return” means all Tax returns,
declarations, statements, reports, schedules, forms and
information returns and any amended Tax return, refund or
declaration of estimated Tax relating to Taxes.
“Taxes” means: (i) all taxes,
customs, tariffs, imposts, levies, duties, fees or other like
assessments or charges of any kind imposed by a Governmental
Entity, together with all interest, penalties and additions
imposed with respect to such amounts, and (ii) liability
for Taxes of any other Person of a kind described in
clause (i) imposed: (A) under Treas. Reg.
§1.1502-6 (or any similar provision of state or local Tax
Law) or otherwise as a result of being or having been before the
Closing Date a member of an affiliated, consolidated, combined
or unitary group for federal, state, local or foreign Tax
purposes, or (B) under any Contract containing an express
or implied obligation to indemnify any other Person.
“Voting Agreement” shall have the
meaning specified in the Recitals.
“Warrant Consideration” shall have the
meaning specified in Section 6.05.
“willful and material breach” shall have
the meaning specified in Section 8.02(a).
Section 9.04 Interpretation. When
a reference is made in this Agreement to an Article or a
Section, such reference shall be to an Article or a Section of
this Agreement unless otherwise indicated. The table of
contents, index of defined terms and headings contained in this
Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement. Any
capitalized term used in any Exhibit but not otherwise defined
therein shall have the meaning assigned to such term in this
Agreement. Whenever the words “include,”
“includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words
“without limitation.” The words “hereof,”
“hereto,” “hereby,” “herein” and
“hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement. The term
“or” is not exclusive. The word “extent” in
the phrase “to the extent” shall mean the degree to
which a subject or other thing extends, and such phrase shall
not mean simply “if.” The word “will” shall
be construed to have the same meaning and effect as the word
“shall.” The words “assets” and
“properties” shall be deemed to have the same meaning,
and to refer to all assets and properties, whether real or
personal, tangible or intangible. The definitions contained in
this Agreement are applicable to the singular as well as the
plural forms of such terms. Any agreement, instrument or Law
defined or referred to herein means such agreement, instrument
or Law as from time to time amended, modified or supplemented,
unless otherwise specifically indicated. References to a person
are also to its permitted successors and assigns. Unless
otherwise specifically indicated, all references to
“dollars” and “$” will be deemed references
to the lawful money of the United States of America.
Section 9.05 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 either the economic or legal substance of the
transactions contemplated hereby is not affected in any manner
materially adverse to any party or such party waives its rights
under this Section 9.05 with respect thereto. 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 the transactions contemplated
hereby are fulfilled to the extent possible.
Section 9.06 Counterparts. This
Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement, and shall
become effective when one or more counterparts have been signed
by each of the parties and delivered to the other parties.
Delivery of an executed counterpart of this Agreement by
facsimile or other electronic image scan transmission shall be
effective as delivery of an original counterpart hereof.
64
Section 9.07 Entire
Agreement; No Third-Party Beneficiaries. This
Agreement, taken together with the R&M Disclosure Letter
and the T-3 Disclosure Letter and the Confidentiality Agreement:
(a) constitutes the entire agreement, and supersedes all
prior agreements and understandings, both written and oral,
between the parties with respect to the Merger and the other
transactions contemplated by this Agreement and (b) except
for Section 6.05, is not intended to confer upon any Person
other than the parties any rights or remedies.
Section 9.08
Governing
Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE,
REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER ANY
APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS OF THE STATE OF
DELAWARE, EXCEPT FOR SUCH PROVISIONS WHERE
OHIO LAW IS
MANDATORILY APPLICABLE, WHICH PROVISIONS SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
OHIO.
Section 9.09 Assignment. Neither
this Agreement nor any of the rights, interests or obligations
under this Agreement shall be assigned, in whole or in part, by
operation of Law or otherwise by any of the parties without the
prior written consent of the other parties. Any purported
assignment without such consent shall be void. Subject to the
preceding sentences, this Agreement will be binding upon, inure
to the benefit of, and be enforceable by, the parties and their
respective successors and assigns.
Section 9.10 Specific
Enforcement. The parties acknowledge and
agree that irreparable damage would occur in the event that any
of the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached,
and that monetary damages, even if available, would not be an
adequate remedy therefor. It is accordingly agreed that, prior
to the termination of this Agreement pursuant to
Article VIII, the parties shall be entitled to an
injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the performance of terms and
provisions of this Agreement in any court referred to in
clause (a) below, without proof of actual damages (and each
party hereby waives any requirement for the securing or posting
of any bond in connection with such remedy), this being in
addition to any other remedy to which they are entitled at law
or in equity. The parties further agree not to assert that a
remedy of specific enforcement is unenforceable, invalid,
contrary to Law or inequitable for any reason, nor to assert
that a remedy of monetary damages would provide an adequate
remedy for any such breach. In addition, each of the parties
hereto (a) consents to submit itself to the personal
jurisdiction of any Delaware state court or any Federal court
located in the State of Delaware in the event any dispute arises
out of this Agreement, the Merger or any of the other
transactions contemplated by this Agreement, (b) agrees
that it will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such
court, and (c) agrees that it will not bring any action
relating to this Agreement, the Merger or any of the other
transactions contemplated by this Agreement in any court other
than any Delaware state court or any Federal court sitting in
the State of Delaware.
Section 9.11 Waiver
of Jury Trial. EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT,
ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, THE
MERGER, THE SECOND MERGER (IF REQUIRED PURSUANT TO
SECTION 1.05) OR ANY OF THE OTHER TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. Each party hereto: (a) certifies that no
Representative of any other party has represented, expressly or
otherwise, that such party would not, in the event of any
action, suit or proceeding, seek to enforce the foregoing waiver
and (b) acknowledges that it and the other parties hereto
have been induced to enter into this Agreement by, among other
things, the mutual waiver and certifications in this
Section 9.11.
65
IN WITNESS WHEREOF, T-3, R&M, Merger Sub and Merger
Sub II have duly executed this Agreement, all as of the
date first written above.
XXXXXXX & XXXXX, INC.
Name: Xxxxx X. Xxxxxxx
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Title:
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President and Chief Executive Officer
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T-3 ENERGY SERVICES, INC.
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By:
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/s/ XXXXXX
X. XXXXXXX
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Name: Xxxxxx X. Xxxxxxx
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Title:
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Chairman, President &
|
Chief Executive Officer
TRIPLE MERGER I, INC.
Name: Xxxxx X. Xxxxxxx
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Title:
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President and Chief Executive Officer
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TRIPLE MERGER II, INC.
Name: Xxxxx X. Xxxxxxx
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Title:
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President and Chief Executive Officer
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66
AMENDED
AND RESTATED
CERTIFICATE OF INCORPORATION
OF
T-3 ENERGY SERVICES, INC.
ARTICLE I
NAME
The name of the corporation is T-3 Energy Services, Inc. (the
“Corporation”).
ARTICLE II
REGISTERED
OFFICE AND AGENT
The address of its registered office in the State of Delaware is
0000 Xxxxxxxxxxx Xxxx, Xxxxx 000, in the City of
Wilmington, County of Xxx Xxxxxx, Xxxxx xx Xxxxxxxx 00000 and
the name of its registered agent at such address is the
Corporation Service Company.
ARTICLE III
EXISTENCE
The Corporation shall have perpetual existence.
ARTICLE IV
PURPOSE
The purpose of the Corporation is to engage in any lawful act or
activities for which corporations may be organized under the
General Corporation Law of the State of Delaware (as from time
to time in effect, the “DGCL”).
ARTICLE V
AUTHORIZED
CAPITAL STOCK
The Corporation shall have the authority to issue an aggregate
of 75,000,000 shares, consisting of 25,000,000 shares
of Preferred Stock, par value $.001 per share (“Preferred
Stock”) and 50,000,000 shares of Common Stock, par
value $.001 per share (“Common Stock”).
A. Issuance of Preferred
Stock. Preferred Stock may be issued from
time to time by the Board of Directors as shares of one or more
series. Subject to the provisions of this paragraph A and
limitations prescribed by law, the Board of Directors is vested
with the authority and is expressly authorized, prior to
issuance, by adopting resolutions providing for the issuance of,
or providing for a change in the number of, shares of any
particular series and, if and to the extent from time to time
required by the DGCL, by filing a certificate pursuant to the
DGCL, to establish or change the number of shares to be included
in each such series and to fix the designation and powers,
preferences and rights and the qualifications and limitations
thereof or restrictions thereon relating to the shares of each
such series, all to the maximum extent permitted by the DGCL.
The authority of the Board of Directors with respect to each
series shall include, but not be limited to, the determination
of the following:
(1) the distinctive serial designation of the series and
the number of shares constituting the series;
(2) the annual dividend rate, if any, on shares of the
series and the preferences, if any, over shares of any other
class or another series of the same class (or of shares of any
other class or of another series over such
series) with respect to dividends, and whether dividends shall
be cumulative and, if so, from which date or dates;
(3) whether the shares of the series shall be redeemable
and, if so, the terms and conditions of their redemption,
including the date or dates upon and after which such shares
shall be redeemable, and the amount per share payable in case of
redemption, which may vary under different conditions and at
different redemption dates;
(4) the obligation, if any, of the Corporation to purchase
or redeem shares of the series pursuant to a sinking fund or
purchase fund and the terms of any such obligation;
(5) whether shares of the series shall be convertible into,
or exchangeable for, shares of stock of any other class or
classes, shares of any series of the same class or any evidence
of indebtedness, and, if so, the terms and conditions of
conversion or exchange, including the price or prices or the
rate or rates of conversion or exchange;
(6) whether the shares of the series shall have voting
rights in addition to the voting rights provided by law, and, if
so, the terms of such voting rights, including whether such
shares shall have the right to vote with the Common Stock on
issues on an equal, greater or lesser basis;
(7) the rights of the shares of the series in the event of
a voluntary or involuntary liquidation, dissolution, winding up
or distribution of assets of the Corporation;
(8) whether the shares of the series shall be entitled to
the benefit of conditions and restrictions upon (i) the
creation of indebtedness of the Corporation or any subsidiary,
(ii) the issuance of any additional stock (including
additional shares of the series or of any other series) or
(iii) the payment of dividends or the making of other
distributions on the purchase, redemption or other acquisition
by the Corporation or any subsidiary of any outstanding stock of
the Corporation; and
(9) any other relative rights, powers, preferences,
qualifications, limitations or restrictions thereof, including,
but not limited to, any that may be determined in connection
with the adoption of any stockholder rights plan relating to any
such series.
Except as otherwise set forth in the resolution or resolutions
adopted by the Board of Directors providing for the issuance of
any series of Preferred Stock, the number of shares comprising
such series may be increased or decreased (but not below the
number of shares then outstanding) from time to time by like
action of the Board of Directors. The shares of Preferred Stock
of any one series shall be identical with the other shares in
the same series in all respects except as to the dates from and
after which dividends thereon shall cumulate, if cumulative.
B. Redeemed or Reacquired Shares of Preferred
Stock. Shares of any series of any Preferred
Stock that have been redeemed (whether through the operation of
a sinking fund or otherwise) or purchased by the Corporation, or
which, if convertible or exchangeable, have been converted into,
or exchanged for, shares of stock of any other class or classes,
any other series of the same class, or any evidences of
indebtedness, shall have the status of authorized and unissued
shares of Preferred Stock and may be reissued as a part of the
series of which they were originally a part, or may be
reclassified and reissued as part of a new series of Preferred
Stock to be created by resolution or resolutions of the Board of
Directors or as part of any other series of Preferred Stock, all
subject to the conditions or restrictions on issuance set forth
in the resolution or resolutions adopted by the Board of
Directors providing for the issuance of any series of Preferred
Stock and to any filing required by law.
C. Common Stock. The Common Stock
is junior to the Preferred Stock and is subject to all the
powers, rights, privileges, preferences and priorities of the
Preferred Stock as herein set forth and as may be stated in any
resolutions of the Board of Directors regarding Preferred Stock.
Subject to all rights of the Preferred Stock, dividends may be
paid on the Common Stock as and when declared by the Board of
Directors of the Corporation out of any funds of the Corporation
legally available for the payment thereof. After payment shall
have been made in full to the holders of the Preferred Stock in
the event of any liquidation, dissolution or winding up of the
affairs of the Corporation, the remaining assets and funds of
the Corporation shall be
A-2
distributed to the holders of Common Stock according to their
respective shares. Except as otherwise provided by law and
subject to the voting rights conferred on the Preferred Stock or
any series thereof by any Directors’ Resolution, the
holders of shares of Common Stock shall possess exclusive voting
rights for the election of directors and for all other purposes,
each holder of Common Stock on the date fixed for determining
the stockholders entitled to vote being entitled to one vote for
each share of Common Stock held of record by such holder.
D. Denial of Preemptive Rights. No
holder of any stock of the Corporation shall be entitled as
such, as a matter of right, to subscribe for or purchase any
part of any new or additional issue of stock of any class of the
Corporation, or of securities convertible into or exchangeable
for stock of any class, whether now or hereafter authorized, or
whether issued for cash or other consideration or by way of
dividend.
E. Denial of Cumulative Voting. No
holder of any stock of the Corporation shall have the right of
cumulative voting at any election of directors or upon any other
matter.
ARTICLE VI
AMENDMENT
OF BYLAWS
The Board of Directors shall have the power to make, alter,
amend and repeal the Corporation’s bylaws. Any bylaws made,
altered or amended by the Board of Directors under the powers
conferred hereby may be further altered or amended, or repealed,
by the directors or by the stockholders; provided, however, that
the bylaws shall not be altered, amended or repealed and no
provision inconsistent therewith shall be adopted by stockholder
action without the affirmative vote of at least a majority of
the voting power of the then outstanding shares entitled to vote
generally in the election of directors, voting together as a
single class.
ARTICLE VII
BOARD OF
DIRECTORS
The number of directors of the Corporation shall be such as from
time to time shall be fixed by, or in the manner provided in,
the bylaws. Election of directors need not be by ballot unless
the bylaws so provide.
ARTICLE VIII
DIRECTOR
LIABILITY
No director of the Corporation shall be personally liable to the
Corporation or to its stockholders for monetary damages for
breach of fiduciary duty as a director, provided that this
Article VIII shall not eliminate or limit the liability of
a director:
(1) for any breach of the director’s duty of loyalty
to the Corporation or its stockholders,
(2) for acts or omissions not in good faith or which
involve intentional misconduct or a knowing violation of law,
(3) under Section 174 of the DGCL, as it may hereafter
be amended from time to time, for any unlawful payment of a
dividend or unlawful stock purchase or redemption, or
(4) for any transaction from which the director derived an
improper personal benefit.
If the DGCL is amended to authorize corporate action further
eliminating or limiting the personal liability of directors,
then the liability of a director of the Corporation shall be
eliminated or limited to the fullest extent permitted by the
DGCL, as so amended. No amendment to or repeal of this
Article VIII will apply to, or have any effect on, the
liability or alleged liability of any director of the
Corporation for or with respect to any acts or omissions of the
director occurring prior to such amendment or repeal.
A-3
ARTICLE IX
INDEMNIFICATION
A. Mandatory Indemnification. Each
person who at any time is or was a director or officer of the
Corporation, and is threatened to be or is made a party to any
threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative, arbitrative or
investigative (a “Proceeding”), by reason of the fact
that such person is or was a director or officer of the
Corporation, or is or was serving at the request of the
Corporation as a director, officer, partner, venturer,
proprietor, member, employee, trustee, agent or similar
functionary of another domestic or foreign corporation,
partnership, joint venture, sole proprietorship, trust, employee
benefit plan or other for-profit or non-profit enterprise,
whether the basis of a Proceeding is alleged action in such
person’s official capacity or in another capacity while
holding such office, shall be indemnified and held harmless by
the Corporation to the fullest extent authorized by the DGCL, or
any other applicable law as may from time to time be in effect
against all expense, liability and loss (including, without
limitation, court costs and attorneys’ fees, judgments,
fines, excise taxes or penalties, and amounts paid or to be paid
in settlement) actually and reasonably incurred or suffered by
such person in connection with a Proceeding if such person acted
in good faith and in a manner the person reasonably believed to
be in or not opposed to the best interests of the Corporation,
and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his conduct was unlawful, and such
indemnification shall continue as to a person who has ceased to
be a director or officer of the Corporation or a director,
officer, partner, venturer, proprietor, member, employee,
trustee, agent or similar functionary of another domestic or
foreign corporation, partnership, joint venture, sole
proprietorship, trust, employee benefit plan or other for-profit
or non-profit enterprise, and shall inure to the benefit of such
person’s heirs, executors and administrators. The
Corporation’s obligations under this paragraph A
include, but are not limited to, the convening of any meeting,
and the consideration of any matter thereby, required by statute
in order to determine the eligibility of any person for
indemnification.
B. Advancement of
Expenses. Expenses incurred by a director or
officer of the Corporation in defending a Proceeding shall be
paid by the Corporation in advance of the final disposition of
such Proceeding to the fullest extent permitted by, and only in
compliance with, the DGCL or any other applicable laws as may
from time to time be in effect, including, without limitation,
any provision of the DGCL which requires, as a condition
precedent to such expense advancement, the delivery to the
Corporation of an undertaking, by or on behalf of such director
or officer, to repay all amounts so advanced if it shall
ultimately be determined that such director or officer is not
entitled to be indemnified under paragraph A of this
Article IX or otherwise. Repayments of all amounts so
advanced shall be upon such terms and conditions, if any, as the
Corporation’s Board of Directors deems appropriate.
C. Vesting. The Corporation’s
obligation to indemnify and to advance expenses under
paragraphs A and B of this Article IX shall arise, and
all rights granted to the Corporation’s directors and
officers hereunder shall vest, at the time of the occurrence of
the transaction or event to which a Proceeding relates, or at
the time that the action or conduct to which such Proceeding
relates was first taken or engaged in (or omitted to be taken or
engaged in), regardless of when such Proceeding is first
threatened, commenced or completed. Notwithstanding any other
provision of this Certificate of Incorporation or the bylaws of
the Corporation, no action taken by the Corporation, either by
amendment of this Certificate of Incorporation or the bylaws of
the Corporation or otherwise, shall diminish or adversely affect
any rights to indemnification or prepayment of expenses granted
under paragraphs A and B of this Article IX which
shall have become vested as aforesaid prior to the date that
such amendment or other corporate action is effective or taken,
whichever is later.
D. Enforcement. If a claim under
either or both of paragraphs A and B of this
Article IX is not paid in full by the Corporation within
thirty days after a written claim has been received by the
Corporation, the claimant may at any time thereafter bring suit
in a court of competent jurisdiction against the Corporation to
recover the unpaid amount of the claim and, if successful in
whole or in part, the claimant shall also be entitled to be paid
the expense of prosecuting such claim. It shall be a defense to
any such suit (other than a suit brought to enforce a claim for
expenses incurred in defending any Proceeding in advance of its
final disposition where the required undertaking, if any is
required, has been tendered to the Corporation) that the
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claimant has not met the standards of conduct which make it
permissible under the DGCL or other applicable law to indemnify
the claimant for the amount claimed, but the burden of proving
such defense shall be on the Corporation. The failure of the
Corporation (including its Board of Directors, independent legal
counsel, or stockholders) to have made a determination prior to
the commencement of such suit as to whether indemnification is
proper in the circumstances based upon the applicable standard
of conduct set forth in the DGCL or other applicable law shall
neither be a defense to the action nor create a presumption that
the claimant has not met the applicable standard of conduct. The
termination of any Proceeding by judgment, order, settlement,
conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, create a presumption that the person did
not act in good faith and in a manner which such person
reasonably believed to be in or not opposed to the best
interests of the Corporation, and, with respect to any criminal
Proceeding, had reasonable cause to believe that his conduct was
unlawful.
E. Nonexclusive. The
indemnification and advancement provided by this Article IX
shall not be deemed exclusive of any other rights to which a
person seeking indemnification and advancement may be entitled
under any statute, bylaw, other provisions of this Certificate
of Incorporation, agreement, vote of the stockholders or
disinterested directors or otherwise, both as to action in such
person’s official capacity and as to action in another
capacity while holding such office.
F. Permissive Indemnification. The
rights to indemnification and prepayment of expenses which are
conferred to the Corporation’s directors and officers by
paragraphs A and B of this Article IX may be conferred
upon any employee or agent of the Corporation if, and to the
extent, authorized by the Board of Directors.
G. Insurance. The Corporation
shall have power to purchase and maintain insurance, at its
expense, on behalf of any person who is or was a director,
officer, employee or agent of the Corporation, or is or was
serving at the request of the Corporation as a director,
officer, partner, venturer, proprietor, member, employee,
trustee, agent or similar functionary of another domestic or
foreign corporation, partnership, joint venture, sole
proprietorship, trust, employee benefit plan or other for-profit
or non-profit enterprise against any expense, liability or loss
asserted against such person and incurred by such person in any
such capacity, or arising out of such person’s status as
such, whether or not the Corporation would have the power to
indemnify him against such expense, liability or loss under the
Corporation’s bylaws, the provisions of this
Article IX, the DGCL or other applicable law.
H. Other Arrangements for
Indemnification. Without limiting the power
of the Corporation to procure or maintain insurance or other
arrangement on behalf of any of the persons as described in
paragraph G of this Article IX, the Corporation may,
for the benefit of persons eligible for indemnification by the
Corporation, (1) create a trust fund, (2) establish
any form of self-insurance, (3) secure its indemnity
obligation by grant of a security interest or other lien on the
assets of the Corporation or (4) establish a letter of
credit, guaranty or surety arrangement.
ARTICLE X
DGCL
SECTION 203
The Corporation elects to not be governed by Section 203 of
the DGCL.
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AMENDED
AND RESTATED
BYLAWS
OF
T-3 ENERGY SERVICES, INC.
ARTICLE I
OFFICES
Section 1. Registered
Office. The registered office of the
Corporation required by the General Corporation Law of the State
of Delaware to be maintained in the State of Delaware shall be
the registered office named in the Certificate of Incorporation
of the Corporation, or such other office as may be designated
from time to time by the Board of Directors in the manner
provided by law. Should the Corporation maintain a principal
office or place of business within the State of Delaware, such
registered office need not be identical to such principal office
or place of business of the Corporation.
Section 2. Other
Offices. The Corporation may also have
offices at such other places within or without the State of
Delaware as the Board of Directors may from time to time
determine or the business of the Corporation may require.
ARTICLE II
MEETINGS
OF STOCKHOLDERS
Section 1. Place
of Meetings. All meetings of the stockholders
will be held at the principal office of the Corporation, or at
such other place within or without the State of Delaware as may
be determined by the Board of Directors and stated in the notice
of the meeting or in duly executed waivers of notice of the
meeting.
Section 2. Annual
Meetings. An annual meeting of the
Corporation’s stockholders shall be held for the election
of directors at such date, time and place, either within or
without the State of Delaware, as may be designated by
resolution of the Board of Directors from time to time; provided
that each successive annual meeting shall be held on a date
within 13 months after the date of the preceding annual
meeting. At the annual meeting of stockholders, only such
business shall be conducted as shall have been properly brought
before the meeting.
Section 3. Postponement
or Adjournment of Meetings. The Board of
Directors may, at any time prior to the holding of a meeting of
stockholders, postpone such meeting to such time and place as is
specified in the notice of postponement of such meeting, which
notice shall be given in accordance with Article VI of
these bylaws at least ten days before the date to which the
meeting is postponed. In addition, any meeting of the
stockholders may be adjourned at any time by the Chairman of the
Board or such other person who shall be lawfully acting as
Chairman of the Meeting (defined below), if such adjournment is
deemed by the Chairman of the Meeting to be a reasonable course
of action under the circumstances.
Section 4. Notice
of Annual Meeting. Written or printed notice
of the annual meeting, stating the place, day and hour thereof,
will be served upon or mailed to each stockholder entitled to
vote thereat at such address as appears on the books of the
Corporation, not less than ten days nor more than 60 days
before the date of the meeting.
Section 5. Special
Meeting. Special meetings of the
stockholders, for any purpose or purposes, unless otherwise
prescribed by statute or the Certificate of Incorporation, may
only be called by the Chairman of the Board, the Vice Chairman
of the Board, the Chief Executive Officer, the President or the
Board of Directors by the written order of a majority of the
entire Board of Directors.
Section 6. Notice
of Special Meeting. Written notice of a
special meeting of stockholders, stating the place, day and hour
and purpose or purposes thereof, will be served upon or mailed
to each stockholder
entitled to vote thereat at such address as appears on the books
of the Corporation, not less than ten days nor more than
60 days before the date of the meeting.
Section 7. Business
at Special Meeting. Business transacted at
all special meetings will be confined to the purpose or purposes
stated in the notice.
Section 8. Stockholder
List. At least ten days before each meeting
of stockholders, a complete list of the stockholders entitled to
vote at such meeting or any adjournment thereof, arranged in
alphabetical order, with the address of and the number of shares
held by each stockholder, will be prepared by the Secretary.
Such list shall be open to the examination of any stockholder,
for any purpose germane to the meeting, during usual business
hours, for a period of ten days prior to the meeting, either at
a place within the city where the meeting is to be held, which
place shall be specified in the notice, or, if not so specified,
at the principal place of business of the Corporation. Such list
will also be produced and kept open at the time and place of the
meeting and shall be subject to the inspection of any
stockholder during the whole time of the meeting.
Section 9. Quorum. The
holders of a majority of the shares of capital stock issued and
outstanding and entitled to vote thereat, represented in person
or by proxy, will constitute a quorum at all meetings of the
stockholders for the transaction of business except as otherwise
provided by statute, the Certificate of Incorporation or these
bylaws. If, however, a quorum is not present or represented at
any meeting of the stockholders, the Chairman of the Meeting or
a majority of the shares of stock, present in person or
represented by proxy, although not constituting a quorum, shall
have power to postpone or recess the meeting without notice
other than announcement at the meeting of the date, time and
place of the postponed or recessed meeting. At any such
adjourned meeting at which a quorum is represented any business
may be transacted which might have been transacted at the
meeting as originally noticed.
Section 10. Majority
Vote. When a quorum is present at any
meeting, the vote of the holders of a majority of the shares
having voting power represented at the meeting in person or by
proxy will decide any question brought before the meeting,
unless the question is one upon which, by statute or express
provision of the Certificate of Incorporation or these bylaws, a
different vote is required, in which case such express provision
will govern and control the decision of such question. Where a
separate vote by class is required, the affirmative vote of the
majority of shares of such class present in person or
represented by proxy at the meeting shall be the act of such
class.
Section 11. Proxies. At
any meeting of the stockholders every stockholder having the
right to vote will be entitled to vote in person or by proxy
appointed by an instrument in writing subscribed by such
stockholder or his duly authorized attorney in fact and bearing
a date not more than eleven months prior to the date of the
meeting.
Section 12. Voting. Unless
otherwise provided by statute, the Certificate of Incorporation
or these bylaws, each stockholder will have one vote for each
share of stock having voting power, registered in his name on
the books of the Corporation.
Section 13. Voting
of Stock of Certain Holders;
Elections. Shares standing in the name of
another corporation, domestic or foreign, may be voted by such
officers, agent or proxy as the bylaws of such corporation may
prescribe, or in the absence of such provision, as the Board of
Directors of such corporation may determine. Shares standing in
the name of a deceased person may be voted by the executor or
administrator of such deceased person, either in person or by
proxy. Shares standing in the name of a guardian, conservator or
trustee may be voted by such fiduciary, either in person or by
proxy, but no fiduciary shall be entitled to vote shares held in
such fiduciary capacity without a transfer of such shares into
the name of the fiduciary. Shares standing in the name of a
receiver may be voted by the receiver. A stockholder whose
shares are pledged shall be entitled to vote such shares, unless
in the transfer by the pledgor on the books of the Corporation,
he has expressly empowered the pledgee to vote thereon, in which
case only the pledgee, or his proxy, may represent the stock and
vote thereon.
If shares or other securities having voting power stand of
record in the names of two or more persons, whether fiduciaries,
members of a partnership, joint tenants, tenants in common,
tenants by the entirety or otherwise, or if two or more persons
have the same fiduciary relationship respecting the same shares,
unless
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the Secretary of the Corporation is given in written notice to
the contrary and is furnished with a copy of the instrument or
order appointing them or creating the relationship wherein it is
so provided, their acts with respect to voting shall have the
following effect:
(a) If only one votes, his act binds all;
(b) If more than one vote, the act of the majority so
voting binds all;
(c) If more than one vote, but the vote is evenly split on
any particular matter, each fraction may vote the securities in
question proportionally, or any person voting the shares, or a
beneficiary, if any, may apply to the Court of Chancery or such
other court as may have jurisdiction to appoint an additional
person to act with the persons so voting the shares, which shall
then be voted as determined by a majority of such persons and
the person appointed by the Court.
All voting, except as required by the Certificate of
Incorporation or where otherwise required by law, may be by a
voice vote; provided, however, that upon demand therefor by
stockholders holding a majority of the issued and outstanding
stock present in person or by proxy at any meeting, a stock vote
shall be taken. Every stock vote shall be taken by written
ballots, each of which shall state the name of the stockholder
or proxy voting and such other information as may be required
under the procedure established for the meeting. All elections
of directors shall be by written ballot, unless otherwise
provided in the Certificate of Incorporation.
Section 14. Voting
of Stock Owned by the Corporation. Stock of
the Corporation belonging to the Corporation, or to another
corporation a majority of the shares entitled to vote in the
election of directors of which are held by the Corporation,
shall not be voted at any meeting of stockholders and shall not
be counted in the total number of outstanding shares for the
purpose of determining whether a quorum is present. Nothing in
this Section 14 shall limit the right of the Corporation to
vote shares of stock of the Corporation held by it in a
fiduciary capacity.
Section 15. Action
by Consent of Stockholders. Unless otherwise
restricted by the Certificate of Incorporation, any action
required or permitted to be taken at any annual or special
meeting of the stockholders may be taken without a meeting,
without prior notice and without a vote, if a consent in
writing, setting forth the action so taken, shall be signed by
the holders of outstanding stock having not less than the
minimum number of votes that would be necessary to authorize or
take such action at a meeting at which all shares entitled to
vote thereon were present and voted. Prompt notice of the taking
of the corporate action without a meeting by less than unanimous
written consent shall be given to those stockholders who have
not consented in writing.
ARTICLE III
BOARD OF
DIRECTORS
Section 1. Powers. The
business and affairs of the Corporation will be managed by a
Board of Directors. The Board may exercise all such powers of
the Corporation and do all such lawful acts and things as are
not by statute, by the Certificate of Incorporation or these
bylaws directed or required to be exercised or done by the
stockholders.
Section 2. Number
of Directors. The number of directors which
constitute the whole Board will be determined by resolution of
the Board of Directors from time to time; provided that no
decrease in the number of directors shall have the effect of
shortening the term of any incumbent director.
Section 3. Election
and Term. The directors shall be elected at
the annual meeting of stockholders, except as provided in
Section 4 of this Article III, and each director
elected shall hold office for the term for which he was elected
and until his successor shall be elected and shall qualify or
until his earlier death, resignation, disqualification or
removal from office. Directors need not be residents of Delaware
or stockholders of the Corporation.
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Section 4. Vacancies. If
any vacancy occurs in the Board of Directors caused by the
death, resignation, retirement, disqualification, or removal
from office of any director, or otherwise, or if any new
directorship is created by an increase in the authorized number
of directors, a majority of the directors then in office, though
less than a quorum, or a sole remaining director, may choose a
successor or fill the resulting vacancy or the newly created
directorship; and a director so chosen shall hold office until
the next election and until his successor shall be duly elected
and shall qualify, unless sooner removed.
Section 5. Resignation;
Removal. Any director may resign at any time.
Unless otherwise prescribed by law or the Certificate of
Incorporation, a director may be removed from office by the
affirmative vote of the holders of at least a majority of the
voting power of all outstanding shares of capital stock of the
Corporation generally entitled to vote in the election of
directors, voting together as a single class.
Section 6. Chairman
of the Board and Vice Chairman of the
Board. The Board of Directors may elect a
Chairman of the Board who shall preside at meetings of the Board
of Directors and stockholders and shall not be an officer of the
Corporation. The Board of Directors may also elect a Vice
Chairman of the Board who, in the absence or disability of the
Chairman of the Board, shall perform the duties and exercise the
powers of the Chairman of the Board and shall not be an officer
of the Corporation.
Section 7. Interested
Directors. A director who is directly or
indirectly a party to a contract or transaction with the
Corporation, or is a director or officer of or has a financial
interest in any other corporation, partnership, association or
other organization which is a party to a contract or transaction
with the Corporation, may be counted in determining whether a
quorum is present at any meeting of the Board of Directors or a
committee thereof at which such contract or transaction is
considered or authorized, and such director may participate in
such meeting and vote on such authorization to the extent
permitted by applicable law, including Section 144 of the
General Corporation Law of the State of Delaware.
ARTICLE IV
MEETINGS
AND COMMITTEES OF THE BOARD
Section 1. Regular
Meetings. Regular meetings of the Board may
be held at such time and place either within or without the
State of Delaware and with such notice or without notice as is
determined from time to time by the Board.
Section 2. Special
Meetings. Special meetings of the Board of
Directors may be called by the Chairman of the Board, the Vice
Chairman of the Board, the Chief Executive Officer or the
President on one days notice to each director, either personally
or by mail or telegram. Special meetings will be called by the
Chairman of the Board, the Vice Chairman of the Board, the Chief
Executive Officer or the President in like manner and on like
notice upon the written request of a majority of the Board of
Directors.
Section 3. Quorum
and Voting. At all meetings of the Board, a
majority of the directors will be necessary and sufficient to
constitute a quorum for the transaction of business. The act of
a majority of the directors present at any meeting at which
there is a quorum will be the act of the Board of Directors,
except as may be otherwise specifically provided by statute, the
Certificate of Incorporation or these bylaws. If a quorum is not
present at any meeting of directors, the directors present may
adjourn the meeting from time to time, without notice other than
announcement at the meeting, until a quorum is present.
Section 4. Telephone
Meetings. The directors may hold their
meetings in any manner permitted by law. Without limitation, at
any meeting of the Board, a member may attend by telephone,
radio, television, interactive media or similar means of
communication by means of which all participants can hear each
other and which permits him to participate in the meeting, and a
director so attending will be deemed present at the meeting for
all purposes, including the determination of whether a quorum is
present.
Section 5. Action
by Written Consent. Any action required or
permitted to be taken by the Board of Directors or any committee
of the Board of Directors under applicable statutory provisions,
the Certificate of Incorporation, or these bylaws, may be taken
without a meeting if a consent in writing, setting forth the
action so taken, is signed by all the members of the Board of
Directors or such committee, as the case may be. Any
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such consent shall be filed with the minutes of the meetings of
the Board of Directors or such committee, as the case may be.
Section 6. Committees
of Directors. The Board of Directors may
establish committees of the Board of Directors by resolution of
a majority of the whole Board of Directors. Each of such
committees shall consist of one or more members of the Board of
Directors. Each committee shall have and may exercise such of
the powers of the Board of Directors in the management of the
business and affairs of the Corporation as may be provided by
resolution of the Board of Directors. Each of such committees
may authorize the seal of the Corporation to be affixed to any
document or instrument. The Board of Directors may designate one
or more directors as alternate members of any such committee,
who may replace any absent or disqualified member at any meeting
of such committee. Meetings of committees may be called by the
chairman of the committee by written, telegraphic or telephonic
notice to all members of the committee and the Chief Executive
Officer and shall be at such time and place as shall be stated
in the notice of such meeting. Any member of a committee may
participate in any meeting by means of conference telephone or
similar communications equipment. In the absence or
disqualification of a member of any committee the chairman of
such committee may, if deemed advisable, appoint another member
of the Board of Directors to act at the meeting in the place of
the disqualified or absent member. The chairman of the committee
may fix such other rules and procedures governing conduct of
meetings as he shall deem appropriate.
ARTICLE V
COMPENSATION
OF DIRECTORS
The Board of Directors shall have the authority to fix the
compensation of directors. The Board shall also have the
authority to fix the compensation of members of committees of
the Board. No provision of these bylaws shall be construed to
preclude any director from serving the Corporation in any other
capacity and receiving compensation therefor.
ARTICLE VI
NOTICES
Section 1. Methods
of Notice. Whenever any notice is required to
be given to any stockholder under the provisions of any statute,
the Certificate of Incorporation or these bylaws, it will not be
construed to require personal notice, but such notice may be
given in writing by mail addressed to such stockholder at such
address as appears on the books of the Corporation, and such
notice shall be deemed to be given at the time when the same
shall be deposited in the United States mail with postage
thereon prepaid. Notice to directors may also be given by
telegram, by facsimile, by telephone or in person, and notice
given by such means shall be deemed given at the time it is
delivered.
Section 2. Waiver
of Notice. Whenever any notice is required to
be given to any stockholder or director under the provisions of
any statute, the Certificate of Incorporation or these bylaws, a
waiver thereof in writing signed by the person or persons
entitled to the notice, whether before or after the time stated
therein, will be deemed equivalent to the giving of such notice.
Attendance at any meeting will constitute a waiver of notice
thereof except as otherwise provided by statute.
ARTICLE VII
OFFICERS
Section 1. Executive
Officers. The officers of the Corporation
shall consist of a President, Vice President, Treasurer and
Secretary, each of whom shall be elected by the Board of
Directors. The Board of Directors may also elect additional
officers and assistant officers including, without limitation, a
Chief Executive Officer, additional vice presidents, including
one or more senior vice presidents, and one or more assistant
secretaries and assistant treasurers. Any two or more offices
may be held by the same person.
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Section 2. Election
and Qualification. The Board of Directors
shall elect the President, one or more Vice Presidents, a
Secretary and a Treasurer, none of whom need be a member of the
Board of Directors.
Section 3. Other
Officers and Agents. The Board of Directors
may elect or appoint such other officers, assistant officers and
agents as it deems necessary, who will hold their offices for
such terms and shall exercise such powers and perform such
duties as determined from time to time by the Board of Directors.
Section 4. Salaries. The
salaries of all officers of the Corporation, if any, shall be
fixed by the Board of Directors except as otherwise directed by
the Board of Directors.
Section 5. Term,
Removal and Vacancies. Each officer of the
Corporation shall hold office until his resignation or his
successor is chosen and qualified. Any officer may be removed at
any time by the Board of Directors with or without cause. If any
such office becomes vacant for any reason, the vacancy will be
filled by the Board of Directors.
Section 6. Chief
Executive Officer. The Chief Executive
Officer, if one is elected, shall preside at meetings of the
Board of Directors and stockholders if there is no Chairman of
the Board or Vice Chairman of the Board. The Chief Executive
Officer shall supervise and have overall executive charge of the
business, properties, administration and operations of the
Corporation with the powers of a general manager, including,
without limitation, the authority to initiate and defend
litigation and arbitration proceedings. The Chief Executive
Officer shall see that all orders and resolutions of the Board
of Directors (and committees thereof) are carried into effect.
In general, he shall perform all duties as from time to time may
be assigned to him by the Board of Directors. He shall from time
to time make such reports of the affairs of the Corporation as
the Board of Directors may require.
Section 7. President. The
President shall, subject to the Board of Directors and to the
authority of the Chief Executive Officer (if one is elected),
supervise and have overall executive charge of the business
properties, administration and operations of the Corporation
with the powers of a general manager, including, without
limitation, the authority to initiate and defend litigation and
arbitration proceedings. The President shall see that all orders
and resolutions of the Board of Directors (and committees
thereof) are carried into effect. In the absence or disability
of the Chief Executive Officer, the President shall perform the
duties of the Chief Executive Officer. The President shall have
such other powers and duties as may from time to time be
prescribed by duly adopted resolution of the Board of Directors.
Section 8. Vice
President. The Vice Presidents in the order
determined by the Board of Directors will, in the absence or
disability of the President, perform the duties and exercise the
powers of the President, and will perform such other duties as
the Board of Directors and President may prescribe.
Section 9. Secretary. The
Secretary will attend all meetings of the Board of Directors and
all meetings of the stockholders and record all votes and the
minutes of all proceedings in a book to be kept for that purpose
and will perform like duties for the standing committees when
required. He will give, or cause to be given, notice of all
meetings of the stockholders and special meetings of the Board
of Directors, and will perform such other duties as may be
prescribed by the Board of Directors and President. He will keep
in safe custody the seal of the Corporation and, when authorized
by the Board of Directors, affix the same to any instrument
requiring it, and when so affixed it shall be attested by his
signature or by the signature of an assistant secretary.
Section 10. Assistant
Secretaries. The assistant secretaries in the
order determined by the Board of Directors will perform, in the
absence or disability of the Secretary, the duties and exercise
the powers of the Secretary and will perform such other duties
as the Board of Directors and President may prescribe.
Section 11. Treasurer. The
Treasurer will have the custody of the corporate funds and
securities and will keep full and accurate accounts of receipts
and disbursements in books belonging to the Corporation and will
deposit all monies and other valuable effects in the name and to
the credit of the Corporation in such depositories as may be
designed by the Board of Directors. He will disburse the funds
of the Corporation as may be ordered by the Board of Directors,
taking proper vouchers for such disbursements, and will render
to
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the Board of Directors and President, whenever they may require
it, an account of all of his transactions as Treasurer and of
the financial condition of the Corporation.
Section 12. Assistant
Treasurers. The Assistant Treasurers in the
order determined by the Board of Directors, in the absence or
disability of the Treasurer, perform the duties and exercise the
powers of the Treasurer and will perform such other duties as
the Board of Directors and President may prescribe.
Section 13. Officer’s
Bond. If required by the Board of Directors,
any officer will give the Corporation a bond (to be renewed as
the Board of Directors may require) in such sum and with such
surety or sureties as is satisfactory to the Board of Directors
for the faithful performance of the duties of his office and for
the restoration to the Corporation, in case of his death,
resignation, retirement or removal from office, of all books,
papers, vouchers, money and other property of whatever kind in
his possession or under his control belonging to the Corporation.
ARTICLE VIII
SHARES
AND STOCKHOLDERS
Section 1. Certificates
Representing Shares. The certificates
representing shares of capital stock of the Corporation shall be
numbered and entered in the books of the Corporation as they are
issued and shall exhibit the holder’s name and number of
shares and be signed by (i) the Chief Executive Officer,
President or Vice-President and (ii) the Secretary or an
Assistant Secretary. The signature of any such officer may be
facsimile if the certificate is countersigned by a transfer
agent or registered by a registrar, other than the Corporation
itself or an employee of the Corporation. In case any officer
who has signed or whose facsimile signature has been placed upon
such certificate has ceased to be such officer before such
certificate is issued, it may be issued by the Corporation with
the same effect as if he were such officer at the date of its
issuance.
Section 2. Transfer
of Shares. Upon surrender to the Corporation
of a certificate for shares duly endorsed or accompanied by
proper evidence of succession, assignment or authority to
transfer, it will be the duty of the Corporation to issue a new
certificate to the person entitled thereto, cancel the old
certificate and record the transaction upon its books.
Notwithstanding the foregoing, no transfer will be recognized by
the Corporation if such transfer would violate federal or state
securities laws, the Certificate of Incorporation, or any
stockholders’ agreements which may be in effect at the time
of the purported transfer. The Corporation may, prior to any
such transfer, require a stockholder to provide (at such
stockholder’s expense) an opinion of counsel addressed to
the Corporation and its stock transfer agent and registrar to
the effect that any such transfer does not violate applicable
securities laws requiring registration or an exemption from
registration prior to any such transfer.
Section 3. Fixing
Record Date. For the purpose of determining
stockholders entitled to notice of or to vote at any meeting of
stockholders or any adjournment thereof, or entitled to receive
a distribution by the Corporation or a share dividend, or in
order to make a determination of stockholders for any other
proper purpose, the Board of Directors may provide that the
share transfer records be closed for a stated period but not to
exceed, in any case, sixty days. If the share transfer records
are closed for the purpose of determining stockholders entitled
to notice of or to vote at a meeting or stockholders, such books
must be closed for at least ten days immediately preceding such
meeting. In lieu of closing the share transfer records, the
Board of Directors may fix in advance a date as the record date
for any such determination of stockholders, such date, in any
case, to be not more than sixty days and, in case of a meeting
of stockholders, not less than ten days prior to the date on
which the particular action requiring such determination of
stockholders is to be taken. If the share transfer records are
not closed and no record date is fixed for the determination of
stockholders entitled to notice of or to vote at a meeting of
stockholders, or stockholders entitled to receive a distribution
or a share dividend, the date on which notice of the meeting is
mailed or the date on which the resolution of the Board of
Directors declaring such distribution or dividend is adopted, as
the case may be, will be the record date for such determination
of stockholders. When a determination of stockholders entitled
to vote at any meeting of stockholders has been made as herein
provided, such determination will apply to any adjournment
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thereof except where the determination has been made through the
closing of share transfer records and the stated period of
closing has expired.
Section 4. Registered
Stockholders. The Corporation is entitled to
recognize the exclusive right of a person registered on its
books as the owner of a share or shares to receive dividends,
and to vote as such owner, and for all other purposes; and the
Corporation is not bound to recognize any equitable or other
claim to or interest in such share or shares on the part of any
other person, whether or not it has express or other notice
thereof, except as otherwise provided by the laws of Delaware.
Section 5. Lost
Certificate. The Board of Directors may
direct a new certificate or certificates to be issued in place
of any certificate or certificates theretofore issued by the
Corporation alleged to have been lost or destroyed, upon the
making of an affidavit of that fact by the person claiming the
certificate to be lost or destroyed, such affidavit to be
satisfactory in form and substance to the Corporation. When
authorizing such issue of a new certificate or certificates, the
Board of Directors may, in its discretion and as a condition
precedent to the issuance thereof, require the owner of such
lost or destroyed certificate or certificates, or his legal
representatives, to advertise the same in such manner as it
shall require
and/or give
the Corporation a bond in form and substance satisfactory to the
Corporation and in such sum as the Corporation may direct as
indemnity against any claim that may be made against the
Corporation with respect to the certificate alleged to have been
lost or destroyed.
Section 6. Fractional
Share Interests. The Corporation may, but
shall not be required to, issue fractions of a share. If the
Corporation does not issue fractions of a share, it shall
(a) arrange for the disposition of fractional interests by
those entitled thereto, (b) pay in cash the fair value of
fractions of a share as of the time when those entitled to
receive such fractions are determined, or (c) issue scrip
or warrants in registered form (either represented by a
certificate or uncertificated) or bearer form (represented by a
certificate) which shall entitle the holder to receive a full
share upon the surrender of such scrip or warrants aggregating a
full share. A certificate for a fractional share or an
uncertificated fractional share shall, but scrip or warrants
shall not unless otherwise provided therein, entitle the holder
to exercise voting rights, to receive dividends thereon, and to
participate in any of the assets of the Corporation in the event
of liquidation. The Board of Directors may cause scrip or
warrants to be issued subject to the conditions that they shall
become void if not exchanged for certificates representing the
full shares or uncertificated full shares before a specified
date, or subject to the conditions that the shares for which
scrip or warrants are exchangeable may be sold by the
Corporation and the proceeds thereof distributed to the holders
of scrip or warrants, or subject to any other conditions which
the Board of Directors may impose.
ARTICLE IX
GENERAL
Section 1. Dividends. The
Board of Directors may from time to time declare, and, if so
declared, the Corporation pay, dividends on its outstanding
shares of capital stock in cash, in property, or in its own
shares, except when the declaration or payment thereof would be
contrary to law or the Certificate of Incorporation. Such
dividends may be declared at any regular or special meeting of
the Board of Directors, and the declaration and payment will be
subject to all applicable provisions of law, the Certificate of
Incorporation and these bylaws.
Section 2. Reserves. Before
payment of any dividend, there may be set aside out of any funds
of the Corporation available for dividends such sum or sums as
the directors from time to time, in their absolute discretion,
deem proper as a reserve fund to meet contingencies, or for
equalizing dividends, or for repairing or maintaining any
property of the Corporation, or for such other purpose as the
directors may think conducive to the interest of the
Corporation, and the directors may modify or abolish any such
reserve in the manner in which it was created.
Section 3. Checks. All
checks or demands for money and notes of the Corporation will be
signed by such officer or officers or such other person or
persons as the Board of Directors may from time to time
designate.
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Section 4. Corporate
Records. The Corporation will keep at its
registered office or principal place of business, or at the
office of its transfer agent or registrar, a record of its
stockholders giving the names and addresses of all stockholders
and the number and class of shares held by each. All other books
and records of the Corporation may be kept at such place or
places within or without the State of Delaware as the Board of
Directors may from time to time determine.
Section 5. Amendment. These
bylaws may be altered, amended or repealed or new bylaws may be
adopted at any annual meeting of the stockholders or at any
special meeting of the stockholders at which a quorum is present
or represented, provided notice of the proposed alteration,
amendment, repeal or adoption be contained in the notice of such
meeting, by the affirmative vote of the holders of a majority of
the shares entitled to vote at such meeting and present or
represented thereat, or by the affirmative vote of a majority of
the Board of Directors at any regular or special meeting of the
Board, subject to the right of the stockholders entitled to vote
with respect thereto to amend or repeal bylaws adopted or
amended by the Board.
Section 6. Indemnification. Except
as otherwise provided in the Certificate of Incorporation, each
director, officer and former director or officer of the
Corporation, and any person who may have served or who may
hereafter serve at the request of the Corporation as a director
or officer of another corporation in which it owns shares of
capital stock or of which it is a creditor, is hereby
indemnified by the Corporation against expenses actually and
necessarily incurred by him in connection with the defense of
any action, suit or proceeding in which he is made a party by
reason of being or having been such director or officer to the
fullest extent authorized by the General Corporation Law of the
State of Delaware, or any other applicable law as may from time
to time be in effect. Such indemnification will not be deemed
exclusive of any other rights to which such director, officer or
other person may be entitled under any agreement, vote of
stockholders, or otherwise. Without limitation, nothing in this
section shall limit any indemnification provisions in the
Certificate of Incorporation.
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