TENDER AND SUPPORT AGREEMENT
Exhibit 99.2
EXECUTION COPY
This TENDER AND SUPPORT AGREEMENT, dated as of October 8, 2009 (this “Agreement”), is
among Xxxxxxxx-Xxxxx Corporation , a Delaware corporation (“Parent”), Boxer Acquisition,
Inc., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), and
each of the individuals or entities listed on a signature page hereto (each, a
“Stockholder”). Capitalized terms used but not defined herein have the meanings assigned
to them in the Agreement and Plan of Merger dated as of the date of this Agreement (the “Merger
Agreement”) among Parent, Merger Sub and I-Flow Corporation , a Delaware corporation (the
“Company”).
WHEREAS, each Stockholder beneficially owns (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended) shares of common stock of the Company, par value $0.001 per share
(“Company Common Stock”);
WHEREAS, concurrently with the execution and delivery of this Agreement, Parent, Merger Sub
and the Company are entering into the Merger Agreement, a copy of which has been made available to
each Stockholder, which provides for, among other things, the making of a tender offer (such offer,
as it may be amended from time to time as permitted by the Merger Agreement, the “Offer”)
by Merger Sub for all of the outstanding shares of Company Common Stock, together with the
associated Rights, and the merger of Merger Sub with and into the Company (the “Merger”),
upon the terms and subject to the conditions set forth therein; and
WHEREAS, as an inducement to and condition to Parent’s and Merger Sub’s willingness to enter
into the Merger Agreement, Parent has required that each Stockholder enter into this Agreement.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants,
representations, warranties and agreements set forth herein, and intending to be legally bound, the
parties hereby agree as follows:
SECTION 1. Agreement to Tender
(a) Each Stockholder hereby agrees to validly tender or cause to be tendered in the Offer any
and all shares of Company Common Stock currently beneficially owned by such Stockholder (excluding
for purposes of this Section 1 any shares of Company Common Stock that are the subject of
unexercised Company Stock Options and any Company RSUs) and any additional shares of Company Common
Stock with respect to which such Stockholder becomes the beneficial owner (including, without
limitation, whether by purchase, by the exercise of Company Stock Options or otherwise) after the
date of this Agreement (collectively, but excluding any shares that are disposed of in compliance
with Section 7(b), the “Subject Shares”) pursuant to and in accordance with the
terms of the Offer no later than five (5) Business Days after the receipt by such Stockholder of
all documents or instruments required to be delivered
pursuant to the terms of the Offer, including but not limited to the letter of transmittal in
the case of certificated Subject Shares. In furtherance of the foregoing, at the time of such
tender, each Stockholder shall (i) deliver to the depositary designated in the Offer (the
“Depositary”) (A) a
letter of transmittal with respect to its Subject Shares complying with
the terms of the Offer, (B) a certificate or certificates representing such Subject Shares or an
“agent’s message” (or such other evidence, if any, of transfer as the Depositary may reasonably
request) in the case of a book-entry transfer of any Subject Shares and (C) all other documents or
instruments, to the extent applicable, in the form required to be delivered by the other
stockholders of the Company pursuant to the terms of the Offer, and/or (ii) instruct its broker or
such other Person that is the holder of record of any Subject Shares to tender such Subject Shares
pursuant to and in accordance with the terms of the Offer. Each Stockholder agrees that once its
Subject Shares are tendered, such Stockholder will not withdraw or cause to be withdrawn any of
such Subject Shares from the Offer, unless and until this Agreement shall have been terminated in
accordance with Section 12(d).
(b) If the Offer is terminated or withdrawn by Merger Sub, or the Merger Agreement is
terminated prior to the Acceptance Time, Parent and Merger Sub shall promptly return, and shall
cause any depository acting on behalf of Parent and Merger Sub to return, all tendered Shares to
the registered holders of the Shares tendered in the Offer (and in connection with the foregoing,
Merger Sub shall direct the depository to so return such tendered Shares within three Business Days
of any such termination or withdrawal).
SECTION 2. Documentation and Information. Each Stockholder (i) consents to and authorizes
the publication and disclosure by Parent of such Stockholder’s identity and holdings of Subject
Shares, the nature of such Stockholder’s commitments, arrangements and understandings under this
Agreement (including, for the avoidance of doubt, the disclosure of this Agreement) and any other
information, in each case, that Parent reasonably determines is required to be disclosed by
applicable Law in any press release, the Offer Documents, the Company Disclosure Documents
(including all schedules and documents filed with the SEC) or any other disclosure document in
connection with the Offer, the Merger and the material transactions contemplated by the Merger
Agreement and (ii) agrees to promptly give to Parent any information it may reasonably require for
the preparation of any such disclosure documents. Each Stockholder agrees to promptly notify Parent
of any required corrections with respect to any information supplied by such Stockholder
specifically for use in any such disclosure document, if and to the extent that any such
information shall have become false or misleading in any material respect.
SECTION 3. Voting Agreement.
(a) Each Stockholder irrevocably and unconditionally agrees that if such Stockholder’s
Subject Shares have not been previously accepted for payment pursuant to the Offer, such
Stockholder shall, at any meeting (whether annual or special and whether or not an adjourned or
postponed meeting) of the holders of Company Common Stock, however called (each, a “Company
Stockholders Meeting”):
(i) be present, in person or represented by proxy, or otherwise cause such Stockholder’s
Subject Shares to be counted for purposes of determining the presence of a quorum at such meeting
(to the fullest extent that such Subject Shares may be counted for quorum purposes under applicable
Law); and
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(ii) vote (or cause to be voted) with respect to all such Stockholder’s Subject Shares to the
fullest extent that such Subject Shares are entitled to be voted at the time of any vote:
(A) in favor of (1) the adoption of the Merger Agreement and (2) without limitation of the
preceding clause (1), the approval of any proposal to adjourn or postpone the Company Stockholders
Meeting to a later date if there are not sufficient votes for adoption of the Merger Agreement on
the date on which the Company Stockholders Meeting is held; and
(B) against (1) any action (including any amendment to the Company’s certificate of
incorporation or bylaws, as in effect on the date hereof), agreement or transaction that would
reasonably be expected to frustrate the purposes of, impede, hinder, interfere with, nullify,
prevent, delay or adversely affect, in each case in any material respect, the consummation of the
transactions contemplated by the Merger Agreement, including the Offer, (2) any Acquisition
Proposal and any action in furtherance of any Acquisition Proposal, (3) any merger, acquisition,
sale, consolidation, reorganization, recapitalization, extraordinary dividend, dissolution,
liquidation or winding up of or by the Company, or any other extraordinary transaction involving
the Company (other than the Merger) and (4) any action, proposal, transaction or agreement that
would reasonably be expected to result in a breach, in any material respect, of any covenant,
representation or warranty or any other obligation or agreement of such Stockholder under this
Agreement.
(b) Notwithstanding the foregoing or any contrary provision hereof, and for the purpose of
clarification, (i) until the later of the Acceptance Time or the receipt by such Stockholder of the
portion of the Merger Consideration to which such Stockholder is entitled in accordance with the
terms of the Offer and the Merger Agreement, such Stockholder shall retain all voting and other
rights with respect to the Subject Shares, subject to such Stockholder’s voting and other
obligations hereunder and (ii) no covenant or agreement herein of such Stockholder, and no action
taken or omitted to be taken by such Stockholder pursuant to the terms of this Agreement or the
Merger Agreement, is intended, nor shall it be deemed or construed, to constitute the consent or
approval of such Stockholder (whether in such Stockholder’s capacity as a stockholder, director or
officer of the Company or otherwise) for any purpose under any employment, severance,
change-in-control or similar agreement or arrangement to which such Stockholder is a party,
including, without limitation, the consent or approval of such Stockholder (whether in such
Stockholder’s capacity as a stockholder, director or officer of the Company or otherwise) to (A)
any change in the composition of the Board of Directors of the Company that might be deemed to
result in a “Change in Control” pursuant to the provisions of Section 3 of the Agreement re: Change
of Control, as amended and supplemented, to which such Stockholder and the Company are a party
(with respect to each such Stockholder, such Stockholder’s “CIC Agreement”) or (B) any change to
the authority, duties, job location or any other matter applicable to such Stockholder in his
capacity as an executive, officer or director of the Company
that might constitute a “Qualifying Termination” under Section 5(a) of such Stockholder’s CIC
Agreement.
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SECTION 4. Irrevocable Proxy. Each Stockholder hereby revokes (or agrees to cause to be
revoked) any proxies that it has heretofore granted. Each Stockholder hereby irrevocably appoints
Parent as attorney-in-fact and proxy for and on behalf of such Stockholder, for and in the name,
place and stead of such Stockholder, to:
(a) attend any and all Company Stockholder Meetings;
(b) vote, express consent or dissent or issue instructions to the record holder to vote such
Stockholder’s Subject Shares in accordance with the provisions of Section 3 at any and all
Company Stockholder Meetings; and
(c) grant or withhold, or issue instructions to the record holder to grant or withhold, in
accordance with the provisions of Section 3, all written consents with respect to the
Subject Shares at any and all Company Stockholder Meetings.
The foregoing proxy shall be deemed to be a proxy coupled with an interest, is irrevocable
(and as such shall survive and not be affected by the death, incapacity, mental illness or insanity
of such Stockholder) until the end of the Agreement Period (as defined below) and shall not be
terminated by operation of Law or upon the occurrence of any other event other than the termination
of this Agreement pursuant to Section 12(d). Each Stockholder authorizes such attorney and
proxy to substitute any other Person to act hereunder, to revoke any substitution and to file this
proxy and any substitution or revocation with the Secretary of the Company. Each Stockholder hereby
affirms that the irrevocable proxy set forth in this Section 4 is given in connection with
and granted in consideration of and as an inducement to Parent and Merger Sub entering into the
Merger Agreement and that such irrevocable proxy is given to secure the obligations of such
Stockholder under Section 3 hereof. Parent covenants and agrees with each Stockholder that
Parent will exercise the foregoing proxy in accordance with the provisions of Section 3
hereof.
SECTION 5. Representations and Warranties of Each Stockholder. Each Stockholder, severally
but not jointly as to any other Stockholder, represents and warrants to Parent and Merger Sub as
follows (it being understood that, except where expressly stated to be given or made as of the date
hereof only, the representations and warranties contained in this Agreement shall be made as of the
date hereof, as of the Acceptance Time and, if such Stockholder’s Subject Shares have not been
previously accepted for payment pursuant to the Offer, as of the date of each Company Stockholders
Meeting:
(a) Organization. If such Stockholder is not an individual, it is duly organized and validly
existing and in good standing under the laws of the jurisdiction of its organization.
(b) Authorization. If such Stockholder is not an individual, it has full corporate, limited
liability company, partnership or trust power and authority to execute and deliver this Agreement
and to perform its obligations hereunder. If such Stockholder is an individual, he has full legal
capacity, right and authority to execute and deliver this Agreement and to perform his
obligations hereunder. If such Stockholder is not an individual, the execution, delivery and
performance by such Stockholder of this Agreement and the consummation by such Stockholder
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of the
transactions contemplated hereby have been duly authorized by all necessary action on the part of
such Stockholder. This Agreement has been duly executed and delivered by such Stockholder and
constitutes a valid and legally binding obligation of such Stockholder in accordance with its
terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar Laws relating to or affecting creditors’ rights generally and general
equitable principles (whether considered in a proceeding in equity or at law).
(c) No Violation.
(i) The execution and delivery of this Agreement by such Stockholder does not, and the
performance by such Stockholder of such Stockholder’s obligations hereunder will not, (A) if such
Stockholder is not an individual, contravene, conflict with, or result in any violation or breach
of any provision of its articles of incorporation, bylaws or similar organizational documents, (B)
assuming compliance with the matters referred to in Section 5(c)(ii), contravene, conflict
with, or result in a violation or breach of any provision of applicable Law or any judgment,
injunction, order or decree of any Governmental Authority with competent jurisdiction or (C)
constitute a default, or an event that, with or without notice or lapse of time or both, could
become a default, under, or cause or permit the termination, cancellation, acceleration or other
change of any right or obligation or the loss of any benefit to which such Stockholder is entitled
under any provision of any agreement or other instrument binding upon such Stockholder, except, in
the case of clauses (B) and (C), for such matters as would not, individually or in the aggregate,
reasonably be expected to prevent, delay, impair or otherwise adversely affect, in each case, in
any material respect, the ability of Stockholder to perform its obligations hereunder or to
consummate the transactions contemplated hereby.
(ii) No consent, approval, order, authorization or permit of, or registration, declaration or
filing with or notification to, any Governmental Authority or any other Person is required by or
with respect to such Stockholder in connection with the execution and delivery of this Agreement by
such Stockholder or the performance by such Stockholder of such Stockholder’s obligations
hereunder, except for the filing with the SEC of any Schedules 13D or 13G or amendments to
Schedules 13D or 13G and filings under Section 16 of the 1934 Act as may be required in connection
with this Agreement and the transactions contemplated hereby.
(d) Ownership of Subject Shares. As of the date hereof, such Stockholder is, and (except with
respect to any Subject Shares Transferred in accordance with Section 7(b) hereof or
accepted for payment pursuant to the Offer) at all times during the Agreement Period will be, the
beneficial owner of, and have good and marketable title to, such Stockholder’s Subject Shares with
no restrictions on such Stockholder’s rights of disposition pertaining thereto. Other than as
provided in this Agreement, Stockholder has, and (except with respect to any Shares Transferred in
accordance with Section 7(b)) at all times during the Agreement Period will have, with
respect to such Stockholder’s Subject Shares, the sole power, directly or indirectly, to vote,
dispose of, exercise and convert, as applicable, such Subject Shares, and to demand or waive any
appraisal
rights or issue instructions pertaining to such Subject Shares with respect to the matters set
forth in this Agreement, in each case with no limitations, qualifications or restrictions on such
rights, and, as such, has, and (except with respect to any Shares Transferred in accordance with
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Section 7(b)) at all times during the Agreement Period will have, the complete and
exclusive power to, directly or indirectly, (A) issue (or cause the issuance of) instructions with
respect to the matters set forth in Section 4, (B) agree to all matters set forth in this
Agreement and (C) demand and waive appraisal or dissent rights. Except to the extent of any
Subject Shares acquired after the date hereof (which shall become Subject Shares upon that
acquisition), the number of shares of the Company Common Stock set forth on Schedule A
opposite the name of such Stockholder are the only shares of Company Common Stock beneficially
owned by such Stockholder on the date of this Agreement. Other than the Subject Shares and any
shares of Company Common Stock that are the subject of unexercised Company Stock Options and any
Company RSUs held by such Stockholder (the number of which is set forth opposite the name of such
Stockholder on Schedule A), such Stockholder does not own any shares of Company Common Stock or any
options to purchase or rights to subscribe for or otherwise acquire any securities of the Company
and has no interest in or voting rights with respect to any securities of the Company. Except as
provided in this Agreement, there are no agreements or arrangements of any kind, contingent or
otherwise, to which such Stockholder is a party obligating Stockholder to Transfer or cause to be
Transferred, any of such Stockholder’s Subject Shares. Except pursuant to this Agreement, no Person
has any contractual or other right or obligation to purchase or otherwise acquire any of such
Stockholder’s Subject Shares.
(e) No Other Proxies. None of such Stockholder’s Subject Shares are subject to any voting
agreement or proxy on the date of this Agreement, except pursuant to this Agreement.
(f) Absence of Litigation. With respect to such Stockholder, as of the date hereof, there is
no action, suit, investigation or proceeding pending against, or, to the knowledge of such
Stockholder, threatened against or otherwise affecting, such Stockholder or any of its or his
properties or assets (including such Stockholder’s Subject Shares) that could reasonably be
expected to impair in any material respect the ability of such Stockholder to perform its or his
obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.
(g) Opportunity to Review; Reliance. Such Stockholder has had the opportunity to review the
Merger Agreement and this Agreement with counsel of its own choosing. Such Stockholder understands
and acknowledges that Parent and Merger Sub are entering into the Merger Agreement in reliance upon
such Stockholder’s execution, delivery and performance of this Agreement.
(h) Finders’ Fees. No investment banker, broker, finder or other intermediary is entitled to
a fee or commission from Parent, Merger Sub or the Company in respect of this Agreement based upon
any arrangement or agreement made by or on behalf of such Stockholder in its or his capacity as
such.
SECTION 6. Representations and Warranties of Parent and Merger Sub. Each of Parent and Merger
Sub hereby, severally and not jointly, represent and warrant to each Stockholder, as of the date
hereof, as of the date of each Company Stockholders Meeting and as
of the Acceptance Time, that (a) such party has full power and authority to execute and
deliver this Agreement and to perform its obligations hereunder, (b) the execution, delivery and
performance by such party of this Agreement and the consummation by such party of the
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transactions
contemplated hereby have been duly authorized by all necessary action on the part of such party and
(c) this Agreement constitutes a valid and legally binding obligation of such party in accordance
with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar Laws relating to or affecting creditors’ rights
generally and general equitable principles (whether considered in a proceeding in equity or at
law).
SECTION 7. No Proxies for or Liens on Subject Shares.
(a) Except pursuant to the terms of this Agreement, during the Agreement Period, no
Stockholder shall (nor permit any Person under such Stockholder’s control to), without the prior
written consent of Parent, directly or indirectly, (i) grant any proxies, powers of attorney,
rights of first offer or refusal, or enter into any voting trust or voting agreement or arrangement
with respect to any Subject Shares, (ii) sell (including short sell), assign, transfer, tender,
pledge, encumber, grant a participation interest in, hypothecate or otherwise dispose of (including
by gift) (each, a “Transfer”) any Subject Shares, (iii) otherwise permit any Liens to be
created on any Subject Shares, or (iv) enter into any contract, agreement, option, instrument or
other arrangement or understanding with respect to the direct or indirect Transfer of any Subject
Shares. No Stockholder shall, and shall not permit any Person under such Stockholder’s control or
any of its or their respective representatives to, seek or solicit any such Transfer or any such
contract, agreement, option, instrument or other arrangement or understanding. Without limiting
the foregoing, Stockholder shall not take any other action that would in any way restrict, limit or
interfere in any material respect with the performance of Stockholder’s obligations hereunder or
the transactions contemplated by the Merger Agreement.
(b) Notwithstanding the foregoing, each Stockholder shall have the right to Transfer all or
any portion of its or his Subject Shares to a Permitted Transferee of such Stockholder if and only
if such Permitted Transferee shall have agreed in writing, in a manner reasonably acceptable in
form and substance to Parent, (i) to accept such Subject Shares subject to the terms and conditions
of this Agreement and (ii) to be bound by this Agreement and to agree and acknowledge that such
Person shall constitute a Stockholder for all purposes of this Agreement. “Permitted
Transferee” means, with respect to any Stockholder, (A) any other Stockholder, (B) a spouse,
lineal descendant or antecedent, brother or sister, adopted child or grandchild or the spouse of
any child, adopted child, grandchild or adopted grandchild of such Stockholder, (C) any trust, the
trustees of which include only the Persons named in clauses (A) or (B) and the beneficiaries of
which include only the Persons named in clauses (A) or (B), (D) any corporation, limited liability
company or partnership, the stockholders, members or general or limited partners of which include
only the Persons named in clauses (A) or (B), or (E) if such Stockholder is a trust, the
beneficiary or beneficiaries authorized or entitled to receive distributions from such trust.
(c) Each Stockholder hereby authorizes Parent and Merger Sub to direct the Company to impose
stop orders to prevent the Transfer of any Subject Shares on the books of the Company in violation
of this Agreement.
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SECTION 8. Waiver of Appraisal Rights. Each Stockholder hereby irrevocably waives any and all
rights he or it may have as to appraisal, dissent or any similar or related matter with respect to
any of such Stockholder’s Subject Shares that may arise with respect to the Merger or any of the
transactions contemplated by the Merger Agreement, including, without limitation, under Section 262
of the DGCL.
SECTION 9. Notices of Certain Events. Each Stockholder shall notify Parent of any
development occurring after the date hereof that causes, or that would reasonably be expected to
cause, any breach of any of the representations and warranties of such Stockholder set forth in
Section 5.
SECTION 10. Further Assurances. Parent and each Stockholder will each execute and deliver,
or cause to be executed and delivered, all further documents and instruments and use their
respective commercially reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary, proper or advisable under applicable Laws and regulations,
to perform their respective obligations under this Agreement.
SECTION 11. Certain Adjustments. In the event of a stock split, stock dividend or
distribution, or any change in the Company Common Stock by reason of a stock split, reverse stock
split, recapitalization, combination, reclassification, readjustment, exchange of shares or the
like, the term “Subject Shares” shall be deemed to refer to and include such shares as well as all
such stock dividends and distributions and any securities into which or for which any or all of
such shares may be changed or exchanged or which are received in the transaction.
SECTION 12. Miscellaneous.
(a) Notices. All notices and other communications hereunder shall be in writing and shall be
deemed duly given (i) on the date of delivery if delivered personally, or if by facsimile, upon
written confirmation of receipt by facsimile, (ii) on the first (1st) Business Day following the
date of dispatch if delivered utilizing a next-day service by a nationally recognized next-day
commercial courier or (iii) on the earlier of confirmed receipt or the fifth (5th) Business Day
following the date of mailing if delivered by registered or certified mail, return receipt
requested, postage prepaid. All notices hereunder shall be delivered to the addresses set forth
below, or pursuant to such other instructions as may be designated in writing by the party to
receive such notice:
If to Parent or Merger Sub, to:
Xxxxxxxx-Xxxxx Corporation
X.X. Xxx 000000
Xxxxxx, Xxxxx 00000
Attention: Xxxx X. Xxxxx
Xxxx X. Xxxxxx
Facsimile: (000) 000-0000
X.X. Xxx 000000
Xxxxxx, Xxxxx 00000
Attention: Xxxx X. Xxxxx
Xxxx X. Xxxxxx
Facsimile: (000) 000-0000
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with a copy (which shall not constitute notice) to:
Sidley Austin LLP
Xxx Xxxxx Xxxxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxx X. Xxxxx, Esq.
Xxxxxxx X. XxXxxxx, Esq.
Facsimile: (000) 000-0000
Xxx Xxxxx Xxxxxxxx
Xxxxxxx, Xxxxxxxx 00000
Attention: Xxxx X. Xxxxx, Esq.
Xxxxxxx X. XxXxxxx, Esq.
Facsimile: (000) 000-0000
(ii) If to a Stockholder, to his, her or its address set forth on a signature page hereto,
with a copy to:
Xxxxxx, Xxxx & Xxxxxxxx LLP
0000 Xxxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxxxx 00000
Attention: Xxxx X. Xxxxxxxxx, Esq.
Xxxxxxxx X. Xxxxx, Esq.
Facsimile: (000) 000-0000
0000 Xxxxxxxxx Xxxxx, Xxxxx 0000
Xxxxxx, Xxxxxxxxxx 00000
Attention: Xxxx X. Xxxxxxxxx, Esq.
Xxxxxxxx X. Xxxxx, Esq.
Facsimile: (000) 000-0000
(b) Amendment and Waivers.
(i) Any provision of this Agreement may be amended or waived during the Agreement Period if,
but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Agreement or, in the case of a waiver, by each party against whom the waiver is
to be effective.
(ii) No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any
other or further exercise thereof or the exercise of any other right, power or privilege. The
rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies
provided by Law.
(c) Binding Effect; Benefit; Assignment.
(i) The provisions of this Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns. No provision of this Agreement is
intended to confer any rights, benefits, remedies, obligations or liabilities hereunder upon any
Person other than the parties hereto and their respective successors and assigns.
(ii) Neither any Stockholder, on the one hand, nor Parent or Merger Sub, on the other hand,
may assign this Agreement or any of his or its rights, interests or obligations hereunder (whether
by operation of Law or otherwise) without the prior written approval of Parent or such Stockholder,
as applicable, except that each of Parent and Merger Sub may transfer or assign their respective
rights and obligations under this Agreement, in whole or from
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time to time in part, to one or more
of their respective Affiliates at any time; provided that such transfer or assignment shall not
relieve such Person of its obligations under this Agreement.
(d) Termination. This Agreement shall automatically terminate and become void and of no
further force or effect on the earliest to occur of (i) the Effective Time, (ii) the termination of
this Agreement by written notice from Parent to the Stockholders, (iii) the occurrence of an
Adverse Recommendation Change, (iv) the termination, or modification in a manner adverse to the
stockholders of the Company, of the Offer and (v) the termination of the Merger Agreement in
accordance with its terms (the period from the date hereof through such time being referred to as
the “Agreement Period”); provided that (A) Sections 12(a), 12(b),
12(e), 12(h) and 12(n) shall survive such termination and (B) no such
termination shall relieve or release any Stockholder, Parent or Merger Sub from any obligations or
liabilities arising out of his or its breach of this Agreement prior to its termination.
(e) Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.
(i) This Agreement shall be governed by and construed in accordance with the law of the State
of Delaware, without regard to the conflicts of law rules of such state.
(ii) The parties hereto agree that any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this Agreement or the
transactions contemplated hereby shall be brought in the Delaware Chancery Court or, if such court
shall not have jurisdiction, in any federal court located in the State of Delaware or other
Delaware state court, and each of the parties hereby irrevocably consents to the jurisdiction of
such courts (and of the appropriate appellate courts therefrom) in any such suit, action or
proceeding and irrevocably waives, to the fullest extent permitted by law, any objection that it
may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any
such court or that any such suit, action or proceeding brought in any such court has been brought
in an inconvenient forum.
(iii) EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT UNDERSTANDS AND HAS
CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (C) IT MAKES SUCH WAIVERS VOLUNTARILY, AND (D) IT HAS
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 12(e)(iii).
(f) Severability. If any term, provision, covenant or restriction of this Agreement is held
by a court of competent jurisdiction or other Governmental Authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or
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invalidated so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner materially adverse to any party. Upon such a determination, the parties shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in an acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.
(g) Specific Performance. The parties hereto agree that irreparable damage would occur if any
provision of this Agreement were not performed in accordance with the terms hereof and that the
parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or
to enforce specifically the performance of the terms and provisions hereof, in addition to any
other remedy to which they are entitled at law or in equity.
(h) Expenses. All costs and expenses incurred in connection with this Agreement shall be paid
by or on behalf of the party incurring such cost or expense, whether or not the transactions
contemplated by this Agreement are consummated.
(i) Counterparts; Effectiveness. This Agreement may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument. This Agreement shall become effective when each party hereto shall
have received a counterpart hereof signed by all of the other parties hereto. Until and unless each
party has received a counterpart hereof signed by the other party hereto, this Agreement shall have
no effect and no party shall have any right or obligation hereunder (whether by virtue of any other
oral or written agreement or other communication).
(j) Entire Agreement. This Agreement constitutes the entire agreement between the parties
with respect to the subject matter hereof and supersedes all prior agreements and understandings,
both oral and written, between the parties with respect to the subject matter hereof.
(k) Headings. The Section headings contained in this Agreement are inserted for convenience
only and shall not affect in any way the meaning or interpretation of this Agreement.
(l) Interpretation. Any reference to any national, state, local or foreign Law shall be
deemed also to refer to all rules and regulations promulgated thereunder, unless the context
otherwise requires. When a reference is made in this Agreement to Sections or Schedules, such
reference shall be to a Section of or Schedule to this Agreement unless otherwise indicated.
Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be
deemed to be followed by the words “without limitation.” In this Agreement, the Stockholder
of any Company Common Stock held in trust shall be deemed to be the relevant trust and/or the
trustees thereof acting in their capacities as such trustees, in each case as the context may
require, including for purposes of such trustees’ representations and warranties as to the proper
organization of the trust, their power and authority as trustees and the non-contravention of the
trust’s governing instruments.
11
(m) No Presumption. This Agreement shall be construed without regard to any presumption or
rule requiring construction or interpretation against the party drafting or causing any instrument
to be drafted.
(n) Obligations. The obligations of each Stockholder under this Agreement are several and not
joint, and no Stockholder shall have any liability or obligation under this Agreement for any
breach hereunder by any other Stockholder.
(o) Stockholder Capacity. Each Stockholder is signing and entering this Agreement solely in
his capacity as the beneficial owner of Subject Shares, and nothing herein shall limit or affect in
any way any actions that may be hereafter taken by him in his capacity as an employee, officer or
director of the Company or any Subsidiary of the Company.
(p) Non-Survival 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.
(q) Further Assurances. This paragraph shall apply only with respect to the Stockholder or
Stockholders identified on Schedule A as being subject to this subparagraph (q). Notwithstanding
any other term or provision of this Agreement:
(i) the undersigned Stockholder has disclosed to Parent and Merger Sub, and each of Parent and
Merger Sub acknowledges, that, as of the date of this Agreement, the Subject Shares are subject to
a pledge, security and/or margin or similar agreement or agreements that provide for a security
interest or lien on the Subject Shares in favor of a third party or third parties and/or impose
certain restrictions, prohibitions and obligations with respect to the transfer, voting and/or
disposition of the Subject Shares (collectively, the “Pledge Arrangements”), which Pledge
Arrangements may materially conflict with the representations, warranties, covenants and/or
agreements of such Stockholder under this Agreement;
(ii) Each of Parent and Merger Sub agrees that none of the existence of the Pledge
Arrangements, the effect thereof on any aspect or character of the Subject Shares, the operation or
effectiveness of the Pledge Arrangements, nor the compliance by the undersigned Stockholder with
the terms and provisions of the Pledge Arrangements shall, in any case, be deemed or construed to
constitute a breach by such Stockholder of its representations, warranties, covenants or agreements
hereunder; and
(iii) such Stockholder shall use commercially reasonable efforts to enable the timely
achievement of the voting and tendering objectives contemplated under this Agreement with respect
to the Subject Shares.
[The next page is the signature page]
12
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
Xxxxxxxx-Xxxxx Corporation |
||||
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | President — Xxxxxxxx-Xxxxx Healthcare | |||
Boxer Acquisition, Inc. |
||||
By: | /s/ Xxxxxx X. Xxxxx | |||
Name: | Xxxxxx X. Xxxxx | |||
Title: | President and Chief Executive Officer | |||
[Stockholder signatures begin on the next page]
Signature Page to Tender and Support Agreement
STOCKHOLDER |
||||
/s/ Xxxxxx X. Xxxxxxx | ||||
Name: | Xxxxxx X. Xxxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
Stockholder Signature Page to Tender and Support Agreement
STOCKHOLDER
|
||||
/s/ Xxxxx X. Xxxxxxxx | ||||
Name: | Xxxxx X. Xxxxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
15
STOCKHOLDER |
||||
/s/ Xxxxx X. Dal Porto | ||||
Name: | Xxxxx X. Dal Porto | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
16
STOCKHOLDER |
||||
/s/ Xxxx X. Xxxxxx | ||||
Name: | Xxxx X. Xxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
17
STOCKHOLDER |
||||
/s/ Xxxx X. Xxxxxxxx | ||||
Name: | Xxxx X. Xxxxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
18
STOCKHOLDER |
||||
/s/ Xxxx X. Xxxxxx | ||||
Name: | Xxxx X. Xxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
19
STOCKHOLDER |
||||
/s/ Xxxx X. Xxxxxx | ||||
Name: | Xxxx X. Xxxxxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
20
STOCKHOLDER |
||||
/s/ Xxxxx X. Xxx | ||||
Name: | Xxxxx X. Xxx | |||
Address: |
C/O I-Flow Corporation
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
00000 Xxxxxxx Xxxxx
Xxxx Xxxxxx, XX 00000
Attention: Chairman and Chief Executive
Officer
Facsimile: (000) 000-0000
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SCHEDULE A
Ownership of Company Common Stock
Number of Shares | Indicate by “X” | |||||||||||||||||||
Subject to | whether Stockholder | |||||||||||||||||||
Number of Shares | Unexercised Company | Number of Company | Number of Subject | is subject to | ||||||||||||||||
Name | Beneficially Owned | Stock Options | RSUs | Shares | subparagraph (q) | |||||||||||||||
Xxxxxx X. Xxxxxxx (1) |
946,904 | 681,914 | 0 | 1,628,818 | ||||||||||||||||
Xxxxx X. Xxxxxxxx (2) |
114,707 | 50,000 | 0 | 164,707 | ||||||||||||||||
Xxxxx X. Dal Porto (3) |
311,649 | 80,000 | 0 | 391,649 | ||||||||||||||||
Xxxx X. Xxxxxx (4) |
337,500 | 10,000 | 0 | 347,500 | ||||||||||||||||
Xxxx X. Xxxxxxxx (5) |
28,000 | 10,000 | 0 | 38,000 | ||||||||||||||||
Xxxx X. Xxxxxx (6) |
77,893 | 10,000 | 0 | 87,893 | X | |||||||||||||||
Xxxx X. Xxxxxx (7) |
19,000 | 10,000 | 0 | 29,000 | X | |||||||||||||||
Xxxxx X. Xxx (8) |
299,140 | 10,000 | 0 | 309,140 | X |
(1) | “Number of Shares Beneficially Owned” includes 111,525 shares of unvested restricted stock and 33,473 shares of common stock held of record by Xx. Xxxxxxx’x spouse. | |
(2) | “Number of Shares Beneficially Owned” includes 37,176 shares of unvested restricted stock. | |
(3) | “Number of Shares Beneficially Owned” includes 74,351 shares of unvested restricted stock. | |
(4) | “Number of Shares Beneficially Owned” includes 5,000 shares of unvested restricted stock and 322,500 shares of common stock held of record by Northlea Partners, Ltd., a limited partnership, of which Xx. Xxxxxx is a general partner (as to which Xx. Xxxxxx disclaims beneficial ownership except to the extent of his pecuniary interest therein). | |
(5) | “Number of Shares Beneficially Owned” includes 5,000 shares of unvested restricted stock. | |
(6) | “Number of Shares Beneficially Owned” includes 5,000 shares of unvested restricted stock, 1,000 shares of common stock held of record by Xx. Xxxxxx’x spouse and 41,893 shares of common stock held of record by Windy City, Inc., a Delaware corporation (“Windy City”), of which Xx. Xxxxxx is the President and a member of the board of directors. Xx. Xxxxxx has voting and dispositive power as to shares of common stock held by Windy City. Xx. Xxxxxx disclaims any and all beneficial ownership of securities held by Windy City. | |
(7) | “Number of Shares Beneficially Owned” includes 5,000 shares of unvested restricted stock. | |
(8) | “Number of Shares Beneficially Owned” includes 5,000 shares of unvested restricted stock and 640 shares of common stock held of record by Xx. Xxx’x spouse. |
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