EXCHANGE AND PURCHASE AGREEMENT
Exhibit 10.1
EXECUTION COPY
EXCHANGE AND PURCHASE AGREEMENT
This Exchange and Purchase Agreement (this “Agreement”) is made and entered into as of this 14th day of December, 2006, by and between (the “Holder”), and Credence Systems Corporation, a Delaware corporation (the “Company”).
RECITALS
WHEREAS, the Holder currently holds $ principal amount of the Company’s 1.5% Convertible Subordinated Notes due 2008 (the “Outstanding Notes”);
WHEREAS, the Holder desires to exchange the Outstanding Notes for an equal principal amount of the Company’s 3.5% Convertible Senior Subordinated Notes due 2010 (the “Exchange Notes”) on the terms and conditions set forth in this Agreement (the “Note Exchange”);
WHEREAS, the Company desires to issue to the Holder $ principal amount of Exchange Notes in exchange for the Outstanding Notes in the Note Exchange;
WHEREAS, the Company desires to issue and sell to the Holder $ principal amount of the Company’s 3.5% Convertible Senior Subordinated Notes due 2010, which shall have identical terms (except for principal amount) as those set forth in the Exchange Notes (the “New Notes,” and together with the Exchange Notes, the “3.5% Notes”) at a purchase price of $950 per $1,000 principal amount of New Notes;
WHEREAS, the Holder desires to purchase $ principal amount of New Notes at a purchase price of $950 per $1,000 principal amount of New Notes on the terms and conditions set forth in this Agreement (the “Sale of New Notes” and together with the Note Exchange, the Transaction”);
WHEREAS, the 3.5% Notes will be issued pursuant to the Indenture, to be entered into by the Company and the Trustee named therein (the “Indenture”), substantially in the form of Exhibit A hereto;
WHEREAS, in connection with the issuance of the 3.5% Notes the Company will agree to provide the Holder registration rights pursuant to the Registration Rights Agreement, to be entered into by the Company and the Holder, the other holders of Outstanding Notes exchanging such notes for 3.5% Notes and any other purchasers of the 3.5% Notes to be issued by the Company, if any (the “Registration Rights Agreement”), substantially in the form of Exhibit B hereto;
NOW, THEREFORE, in consideration of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
ARTICLE I
Exchange
Section 1.1 Exchange and Sale of the 3.5% Notes.
(a) Upon the terms and subject to the conditions of this Agreement, at the Closing (as defined herein), the Company shall issue and exchange to the Holder, and the Holder agrees to accept from the Company, $ in aggregate principal amount of Exchange Notes, together with all accrued and unpaid interest paid in cash on the Outstanding Notes to, but excluding, the Closing Date, for $ aggregate principal amount of Outstanding Notes.
(b) Upon the terms and subject to the conditions of this Agreement, at the Closing, the Company shall sell to the Holder, and the Holder agrees to purchase from the Company, the $ aggregate principal amount of New Notes at a purchase price of 95% of the principal amount thereof (the Purchase Price”).
Section 1.2 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) is anticipated to take place on the third business day after the date hereof at the offices of the Company, 0000 Xxxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxx 00000, or on such other date and at such other place as the parties may agree in writing (the “Closing Date”). At the Closing, (i) the Holder shall deliver or cause to be delivered to the Company (A) all of such Holder’s right, title and interest in and to all of the Outstanding Notes, and all documentation related thereto, and whatever documents of conveyance or transfer may be necessary or desirable to transfer to and confirm in the Company all right, title and interest in and to the Outstanding Notes and (B) the Purchase Price, and (ii) the Company shall issue to the Holder the 3.5% Notes and pay to the Holder in cash by wire transfer of immediately available funds an amount equal to the accrued and unpaid interest on the Holder’s Outstanding Notes to, but excluding, the day of the Closing.
Section 1.3 Conditions to Closing. (i) The obligation of the Holder hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Holder’s sole benefit and may be waived by the Holder at any time in its sole discretion by providing the Company with prior written notice thereof:
(a) The Company shall have executed and delivered this Agreement to Holder;
(b) The Company and the Trustee shall have executed and delivered the Indenture;
(c) The Company shall have executed and delivered the 3.5% Notes in the aggregate principal amount set forth in Section 1.1;
(d) The Company shall have executed and delivered the Registration Rights Agreement to Holder;
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(e) The Company shall have submitted an additional share listing application for the shares of Common Stock issuable upon conversion of the 3.5% Notes with the Nasdaq Global Select Market and the shares of Common Stock issuable upon conversion of the 3.5% Notes shall have been approved by the Nasdaq Global Select Market for listing prior to the Closing;
(f) The Company shall have delivered to the Holder and Xxxxx Xxxxxxx & Co. a certificate of the Company, dated the Closing Date, executed by the secretary of the Company certifying in such capacity and on behalf of the Company (i) as to the incumbency and signature of the officer of the Company who executed this Agreement and the 3.5% Notes; and (ii) as to the adoption of resolutions of the board of directors of the Company which are in full force and effect on the Closing Date, authorizing (x) the execution and delivery of this Agreement, the Indenture, the Registration Rights Agreement and the 3.5% Notes; and (y) the performance of the obligations of the Company hereunder and thereunder;
(g) The Company shall have delivered to the Holder and Xxxxx Xxxxxxx & Co. a certificate of the Chief Executive Officer or Chief Financial Officer of the Company, dated the Closing Date, to the effect that the representations and warranties of the Company in this Agreement are true and correct on and as of the Closing Date with the same effect as if made on the Closing Date and that the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date;
(h) Simultaneously with the Closing, the Company shall issue an aggregate principal amount of 3.5% Notes that, together with notes issued to Other Holders (as defined below) is not less than $122,500,000, of which at least $72,500,000 million aggregate principal amount shall be Exchange Notes;
(i) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, there shall have been no suspension or material limitation of trading in the Common Stock on The Nasdaq Global Select Market;
(j) The 3.5% Notes shall have been approved for trading on The PORTAL Market of the National Association of Securities Dealers, Inc., subject only to notice of issuance at or prior to the time of purchase;
(k) The Company shall have obtained a Committee on Uniform Securities Identification Procedures number (CUSIP number) for the 3.5% Notes;
(l) The 3.5% Notes satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act; and
(m) The Company shall have delivered to Holder and Xxxxx Xxxxxxx & Co. the opinion of Xxxxxxxx & Xxxxxxxx LLP, dated as of the Closing Date, in substantially the form of Exhibit C attached hereto.
(ii) The obligation of the Company hereunder to consummate the transactions contemplated hereby at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole
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benefit and may be waived by the Company at any time in its sole discretion by providing the Holder with prior written notice thereof:
(a) The Holder shall have executed and delivered to the Company this Agreement;
(b) The Holder shall have executed and delivered to the Company the Registration Rights Agreement; and
(c) The Holder shall have delivered, or caused to be delivered, to the Company the Outstanding Notes being exchanged pursuant to this Agreement and the Purchase Price in accordance with the written instructions of the Company.
Section 1.4 Exchange of Sale of Additional Notes. Simultaneously with the Closing, the Company (i) shall enter into one or more agreements substantially identical to this Agreement (the “Other Agreements”) with one or more holders (the “Other Holders”) of Outstanding Notes to exchange Exchange Notes with one or more Other Holders for Outstanding Notes, subject to the terms of the Indenture, in an aggregate principal amount that, together with the Exchange Notes issued pursuant to this Agreement, is not less than $72,500,000, and (ii) may issue New Notes pursuant to one or more Other Agreements, subject to the terms of the Indenture, with one or more Other Holders and/or any new Holders, so long as the purchase price for any such New Notes is not less than $950 per $1,000 principal amount of New Notes.
ARTICLE II
Representations and Warranties of the Holder
The Holder hereby makes the following representations and warranties, each of which is true and correct on the date hereof and shall survive the Closing Date and the transactions contemplated hereby to the extent set forth herein.
Section 2.1 Existence and Power.
(a) The Holder is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby.
(b) The execution of this Agreement by the Holder and the consummation by the Holder of the transactions contemplated hereby do not and will not constitute or result in a breach, violation, conflict or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license to which the Holder is a party, whether written or oral, express or implied, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Holder or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Holder, except for such breaches, conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Holder to perform its obligations hereunder.
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Section 2.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Holder and constitutes a legal, valid and binding obligation of the Holder, enforceable against the Holder in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity.
Section 2.3 Title to Outstanding Notes. The Holder is the sole beneficial owner of and has good and valid title to the Outstanding Notes being exchanged by such Holder hereby, free and clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto. The Holder has not, in whole or in part, (i) assigned, transferred, hypothecated, pledged or otherwise disposed of the Outstanding Notes or its rights in such Outstanding Notes being exchanged or redeemed by such Holder hereby, or (ii) given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to such Outstanding Notes.
Section 2.4 Investment Decision. The Holder is either (i) a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) or (ii) an “accredited investor” within the meaning of Rule 501 of Regulation D under the Securities Act, and in either case was not organized for the purpose of acquiring the 3.5% Notes or the shares of the Company’s common stock (the “Common Stock”), $0.001 par value per share, into which the 3.5% Notes may be converted (the “Underlying Common Stock”). The Holder (or its authorized representative) is familiar with the Company’s objectives and business plan, has had the opportunity to review the Company’s filings with the Securities and Exchange Commission (the “SEC”), including, without limitation, the Company’s Annual Report on Form 10-K filed on January 17, 2006, the Company’s Quarterly Reports on Form 10-Q filed on each of March 10, 2006, June 9, 2006 and September 11, 2006, the Company’s Definitive Proxy Statement filed on February 24, 2006, and the Company’s Current Reports on Form 8-K filed on March 2, 2006, March 21, 2006, March 25, 2006, May 25, 2006, August 9, 2006, August 24, 2006, September 11, 2006, November 13, 2006, December 7, 2006 and December 8, 2006 and the Company’s Amended Current Report on Form 8-K/A filed on December 8, 2006 (all of such filings with the SEC referred to, collectively, as the “SEC Documents”). The Holder has reviewed copies of each of the Indenture and the Registration Rights Agreement, including copies of each of the Indenture and Registration Rights Agreement marked to show the differences between such documents and the respective indenture and registration rights agreement related to the Outstanding Notes, and has had an opportunity to ask questions of the Company and to obtain from representatives of the Company such information as is necessary to determine the changes reflected in each such document, including the changes to the terms of the 3.5% Notes compared with the Outstanding Notes. The Holder has had such opportunity to ask questions of the Company and its representative and to obtain from representatives of the Company such information as is necessary to permit it to evaluate the merits and risks of its investment in the Company and has independently, without reliance upon any representatives of the Company and based on such information as the Holder deemed appropriate, made its own analysis and decision to enter into this Agreement. The Holder has had the opportunity to consult with its accounting, tax, financial and legal advisors to be able to evaluate the risks involved in the exchange of the Outstanding Notes pursuant hereto and to make an informed investment decision with respect to such exchange. The Holder acknowledges
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that the Company is relying on the truth and accuracy of the foregoing representations and warranties in the offering of the 3.5% Notes to the Holder without having first registered the 3.5% Notes or the Underlying Common Stock under the Securities Act.
Section 2.5 Purchase Entirely for Own Account. The Holder is acquiring the 3.5% Notes for its own account and not towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the Securities Act; provided, however that by making the representations herein, the Holder does not agree to hold any of such 3.5% Notes for any minimum or other specific term and reserves the right to dispose of such 3.5% Notes or the Underlying Common Stock at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act and pursuant to the applicable terms of this Agreement. The Holder is acquiring the 3.5% Notes to be issued to the Holder hereunder in the ordinary course of its business. The Holder does not presently have any understanding, directly or indirectly, with any person to distribute any of the 3.5% Notes to be issued to the Holder hereunder.
Section 2.6 Restricted Securities. The Holder understands that neither the 3.5% Notes nor the Underlying Common Stock have been registered under the Securities Act, and are being issued hereunder by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Holder’s representations as expressed herein. The Holder understands that the 3.5% Notes (and the Underlying Common Stock) are “restricted securities” under applicable U.S. federal and state securities laws and that, pursuant to these laws, the Holder must hold the 3.5% Notes (and the Underlying Common Stock) indefinitely unless they are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available. The Holder further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the 3.5% Notes (and the Underlying Common Stock), and on requirements relating to the Company which may be outside the Holder’s control, and which, except as set forth in the Registration Rights Agreement, the Company is under no obligation and may not be able to satisfy.
Section 2.7 No Public Market. The Holder understands that no public market now exists for the 3.5% Notes, and that the Company has made no assurance that a public market will ever exist for the 3.5% Notes.
Section 2.8 Legends. The Holder understands that the 3.5% Notes and any shares of Underlying Common Stock will bear one or more of the legends required by the Indenture, and the removal of such legends shall be governed by the terms of the Indenture.
Section 2.9 Affiliate Status. The Holder is not, and has not been during the preceding three months, an “affiliate” of the Company as such term is defined in Rule 144 under the Securities Act.
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ARTICLE III
Representations, Warranties and Covenants of the Company
The Company hereby makes the following representations, warranties, and covenants each of which is true and correct on the date hereof and shall survive the date of the Closing and the transactions contemplated hereby to the extent set forth herein.
Section 3.1 Existence and Power.
(a) The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the power, authority and capacity to execute and deliver this Agreement, to perform the Company’s obligations hereunder, and to consummate the transactions contemplated hereby.
(b) The execution of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby (i) does not require the consent, approval, authorization, order, registration or qualification of, or filing with, any governmental authority or court, or body or arbitrator having jurisdiction over the Company other than as contemplated in the Registration Rights Agreement, state securities regulators, the Nasdaq Global Select Market, The Depository Trust Company and The PORTAL Market; and (ii) does not and will not constitute or result in a breach, violation or default under any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, or with the Company’s Certificate of Incorporation or by-laws, or any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, governmental authority, arbitrator, mediator or similar body on the part of the Company or on the part of any other party thereto or cause the acceleration or termination of any obligation or right of the Company or any other party thereto.
Section 3.2 Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except that such enforcement may be subject to (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity.
Section 3.3 Capitalization. At the Closing, the authorized capital stock of the Company will consist of 150,000,000 shares of Common Stock, par value $0.001 per share, and 1,000,000 shares of Preferred Stock, par value $0.001 per share. As of the close of business on December 11, 2006, there were 100,610,772 shares of Common Stock issued and outstanding. All such issued and outstanding shares have been duly authorized and validly issued, and are fully paid and non-assessable, and were issued in compliance with all applicable state and federal laws concerning the issuance of securities and all applicable pre-emptive, participation, rights of first refusal and other similar rights.
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Section 3.4 Valid Issuance of the 3.5% Notes. The 3.5% Notes, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement and the Indenture, will constitute legal and binding obligations of the Company, be validly issued and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by the Holder, and enforceable against the Company in accordance with their terms, except that such enforcement may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (b) general principles of equity. Assuming the accuracy of the representations of the Holder in Section 2 of this Agreement and subject to the filing of Form D pursuant to Regulation D under the Securities Act and state securities laws, the 3.5% Notes will be issued in compliance in all material respects with all applicable federal and state securities laws. The Underlying Common Stock has been duly reserved for issuance, and upon issuance in accordance with the terms of the Company’s Certificate of Incorporation, as amended, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under applicable federal and state securities laws and liens or encumbrances created by or imposed by the Holder. Based in part upon the representations of the Holder in Section 2 of this Agreement, the 3.5% Notes and the Underlying Common Stock, when issued and delivered in accordance with the terms of the 3.5% Notes and the Indenture, will be issued in compliance in all material respects with all applicable federal and state securities laws.
Section 3.5 Financial Statements. Except as qualified in the SEC Documents, the audited and unaudited financial statements and schedules included in the SEC Documents, present fairly in all material respects the consolidated financial position of the Company and its subsidiaries as of the dates indicated and the consolidated results of operations and cash flows of the Company and its subsidiaries for the periods specified; except as qualified in the SEC Documents, such financial statements and schedules have been prepared in conformity with generally accepted accounting principles applied on a consistent basis during the periods involved.
Section 3.6 Legal Proceedings. No legal or governmental proceedings or investigations are pending or, to the knowledge of the Company, threatened to which the Company is a party or to which the property of the Company or any of its subsidiaries is subject that are not described in the SEC Documents, except for such proceedings or investigations which would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. As used in this Agreement, the term “Material Adverse Effect” shall mean when used in respect of any matter relating to the Company a material adverse effect on the business, condition (financial or otherwise), properties or results of operations of the Company and its subsidiaries, considered as one enterprise, or would materially adversely affect the ability of the Company to perform its obligations under this Agreement, the Indenture, the Registration Rights Agreement and the 3.5% Notes.
Section 3.7 Compliance with Laws; Permits. The Company and its subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to have such certificates, authorizations and permits would not reasonably be expected to have a Material Adverse Effect, and none of the Company and its subsidiaries has received any
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notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit which would reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect. The Company and its subsidiaries are and have been in compliance with all applicable laws, statutes, ordinances, rules, regulations, orders, judgments, decisions, decrees, standards, and requirements relating to their respective businesses, except where any such non-compliance would not reasonably be expected to have a Material Adverse Effect.
Section 3.8 No Material Adverse Effect. Since the respective dates as of which information is given in the SEC Documents, there has not been any event or occurrence having a Material Adverse Effect on the Company or its subsidiaries, except as reflected or disclosed in a subsequent SEC Document.
ARTICLE IV
Miscellaneous Provisions
Section 4.1 Notice. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid) to such address and to the attention of such person as the recipient party has specified by prior written notice to the sending party. Notices will be deemed to have been given hereunder when delivered personally, three business days after deposit in the U.S. mail postage prepaid with return receipt requested and two business days after deposit postage prepaid with a reputable overnight courier service for delivery on the next business day.
Section 4.2 Entire Agreement. This Agreement and the other documents and agreements executed in connection with the Transaction embody the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersede all prior and contemporaneous oral or written agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.
Section 4.3 Assignment; Binding Agreement. This Agreement and the various rights and obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their successors and assigns.
Section 4.4 Counterparts. This Agreement may be executed in multiple counterparts, and on separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.
Section 4.5 Remedies Cumulative. Except as otherwise provided herein, all rights and remedies of the parties under this Agreement are cumulative and without prejudice to any other rights or remedies available at law.
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Section 4.6 Governing Law. This Agreement shall in all respects be construed in accordance with and governed by the substantive laws of the State of New York, without reference to its choice of law rules.
Section 4.7 No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any person not a party hereto, or any such person’s dependents or heirs, any right to any benefits hereunder, and no such party shall be entitled to xxx any party to this Agreement with respect thereto.
Section 4.8 Waiver; Consent. This Agreement may not be changed, amended, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto. No waiver of any of the provisions or conditions of this Agreement or any of the rights of a party hereto shall be effective or binding unless such waiver shall be in writing and signed by the party claimed to have given or consented thereto. Except to the extent otherwise agreed in writing, no waiver of any term, condition or other provision of this Agreement, or any breach thereof shall be deemed to be a waiver of any other term, condition or provision or any breach thereof, or any subsequent breach of the same term, condition or provision, nor shall any forbearance to seek a remedy for any noncompliance or breach be deemed to be a waiver of a party’s rights and remedies with respect to such noncompliance or breach.
Section 4.9 Word Meanings. The words such as “herein”, “hereinafter”, “hereof”, and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such words appear unless the context otherwise requires. The singular shall include the plural, and vice versa, unless the context otherwise requires. The masculine shall include the feminine and neuter, and vice versa, unless the context otherwise requires.
Section 4.10 No Broker. Neither party has engaged any third party as broker or finder or incurred or become obligated to pay any broker’s commission or finder’s fee in connection with the transactions contemplated by this Agreement other than such fees and expenses for which it shall be solely responsible.
Section 4.11 Further Assurances. The Holder and the Company each hereby agree to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions, as either party may reasonably request in connection with the transactions contemplated by this Agreement.
Section 4.12 Costs and Expenses. The Holder and the Company shall each pay their own respective costs and expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement, including, but not limited to, attorneys’ fees.
Section 4.13 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.
Section 4.14 Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.
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IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.
| HOLDER: | ||
| By: |
| |
| Name: | ||
| Title: | ||
| THE COMPANY: | ||
| CREDENCE SYSTEMS CORPORATION | ||
| By: |
| |
| Name: | ||
| Title: | ||
Signature Page to Exchange and Release Agreement
Exhibit A
Form of Indenture
Exhibit B
Form of Registration Rights Agreement
Exhibit C
Form of Opinion of Xxxxxxxx Xxxxxxxx LLP
| 1. | The Company has been duly incorporated and is an existing corporation in good standing under the laws of the State of Delaware with corporate power and authority to own its properties and conduct its business as described in the Company’s most recent filing on Form 10-K with the Securities and Exchange Commission (the “SEC”). |
| 2. | The Company is duly qualified as a foreign corporation for the transaction of business and is in good standing in the States of [ ]. |
| 3. | The Company has an authorized equity capitalization as set forth in its Amended and Restated Certificate of Incorporation, filed as Exhibit 3.1 to the Company’s Form 10-Q for the quarter ended April 30, 2000. |
| 4. | The shares of Common Stock initially issuable upon conversion of the 3.5% Notes (the “Conversion Shares”) have been duly authorized and reserved for issuance upon such conversion and, when issued and delivered in accordance with the provisions of the 3.5% Notes and the Indenture, will be duly and validly issued and fully paid and non-assessable. The stockholders of the Company have no preemptive rights with respect to the issuance of the Conversion Shares under the Certificate of Incorporation, Bylaws or DGCL. |
| 5. | The Exchange and Purchase Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms. |
| 6. | The 3.5% Notes being issued on the date hereof have been duly authorized by the Company and, when executed by the Company and authenticated by the Trustee in the manner provided for in the Indenture and issued and delivered to the Holder in accordance with the terms of the Exchange and Purchase Agreement, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms and will be entitled to the benefits of the Indenture. |
| 7. | The Indenture has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms. |
| 8. | The Registration Rights Agreement has been duly authorized, executed and delivered by the Company and constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms. |
| 9. | The issuance and sale of the 3.5% Notes being delivered on the date hereof, the issuance of the Conversion Shares, if any (assuming conversion on the |
date hereof pursuant to the terms of the 3.5% Notes) and the performance by the Company of its obligations under the Indenture, the 3.5% Notes and the Exchange and Purchase Agreement and the consummation of the transactions therein contemplated do not conflict with and did not result in a breach or violation by the Company of any of the terms or provisions of, or constitute a default under any Reviewed Agreement listed on Exhibit A hereto, nor will such actions result in any violation by the Company of (i) the Certificate of Incorporation or the Bylaws, (ii) any U.S. federal or New York or Delaware (under the DGCL) state statute applicable to the Company, (iii) any rule or any regulation known to us of any U.S. federal or New York or Delaware (under the DGCL) state court or governmental agency or body having jurisdiction over the Company or any of its properties, or (iv) any order, judgment or decree known to us to which the Company is a party.
| 10. | No consent, approval, authorization, order, registration or qualification of or with any U.S. federal or Delaware (under the DGCL) state court or governmental agency or body is required for the issue and sale of the 3.5% Notes on the date hereof or the consummation by the Company of the transactions contemplated by the Exchange and Purchase Agreement or the Indenture, except as may be expressly contemplated by the Exchange and Purchase Agreement, the Indenture, 3.5% Notes and the Registration Rights Agreement. |
| 11. | Assuming the filing of a Form D in accordance with Regulation D under the Securities Act, no registration of the 3.5% Notes or the Conversion Shares under the Securities Act is required for the offer, sale and delivery of the 3.5% Notes by the Company to the Holder pursuant to the Exchange and Purchase Agreement (it being understood that no opinion is expressed as to any resale of the 3.5% Notes or the Conversion Shares). |
