\nARTICLE VIII TERMINATION……………………………………………….. 36
\n 8.01 TERMINATION…………………………………………. 36
\n 8.02 EFFECT OF TERMINATION AND ABANDONMENT………………….. 37
\n 8.03 TERMINATION FEES…………………………………….. 37
\n 8.04 CHANGES IN FORBEARANCES………………………………. 39<\/p>\nARTICLE IX MISCELLANEOUS……………………………………………… 39
\n 9.01 SURVIVAL……………………………………………. 39
\n 9.02 WAIVER; AMENDMENT……………………………………. 39
\n 9.03 COUNTERPARTS………………………………………… 39
\n 9.04 GOVERNING LAW AND VENUE………………………………. 39
\n 9.05 EXPENSES……………………………………………. 39
\n 9.06 NOTICES…………………………………………….. 40
\n 9.07 ENTIRE UNDERSTANDING; NO THIRD-PARTY BENEFICIARIES………. 40
\n 9.08 SEVERABILITY………………………………………… 40
\n 9.09 ASSIGNMENT………………………………………….. 41
\n 9.10 ENFORCEMENT…………………………………………. 41
\n 9.11 INTERPRETATION………………………………………. 41
\n<\/c><\/c><\/c><\/s><\/caption>\n<\/table>\n
ii<\/p>\n
AGREEMENT AND PLAN OF MERGER, dated as of August 28, 2000 (this
\n“AGREEMENT”), by and among SABRE HOLDINGS CORPORATION, a Delaware corporation
\n(“PARENT”), SABRE INC., a Delaware corporation and a wholly-owned subsidiary of
\nParent (“MERGER SUB”), and GETTHERE INC., a Delaware corporation (the
\n“COMPANY”).<\/p>\n
WHEREAS, the Boards of Directors of Parent, Merger Sub and the Company each
\nhave determined that it is advisable and in the best interests of their
\nrespective corporations and their respective stockholders that Parent acquire
\nthe Company upon the terms and subject to the conditions set forth;<\/p>\n
WHEREAS, in furtherance thereof, it is proposed that the acquisition be
\naccomplished by Merger Sub commencing a cash tender offer (as it may be amended
\nfrom time to time as permitted by this Agreement, the “OFFER”) to purchase all
\nof the issued and outstanding shares of common stock, par value $0.0001 per
\nshare, of the Company (the “COMPANY COMMON STOCK”) and preferred stock, par
\nvalue $0.0001 per share, of the Company (the “COMPANY PREFERRED STOCK”) (the
\nshares of Company Common Stock and Company Preferred Stock are referred to
\nherein as “COMPANY SHARES”), for $17.75 per Company Share (such amount or any
\ngreater amount per Company Shares paid pursuant to the Offer being hereinafter
\nreferred to as the “OFFER PRICE”), net to the seller in cash, upon the terms and
\nsubject to the conditions set forth in this Agreement;<\/p>\n
WHEREAS, by resolutions duly adopted in accordance with the General
\nCorporation Law of the State of Delaware (the “DGCL”), the respective Boards of
\nDirectors of the Company, Parent and Merger Sub have approved and adopted this
\nAgreement, the merger of Merger Sub with and into the Company (the “MERGER”) in
\naccordance with the DGCL, and the transactions contemplated hereby; and<\/p>\n
WHEREAS, as further conditions and inducements to the willingness of Parent
\nto enter into this Agreement, (1) each of American Express Travel Related
\nServices Company, Inc. (“AMEX”) and other corporate stockholders of the Company
\ncollectively holding not less than 23% of the presently outstanding shares of
\nthe Company Shares has entered into an agreement with Parent and Merger Sub,
\nsubstantially in the form of Exhibit A hereto and (2) each of Gadi Maier and
\nRichard D.C. Whilden, stockholders of the Company collectively holding the power
\nto vote not less than 5% of the outstanding Company Shares, has entered into an
\nagreement with Parent and Merger Sub, substantially in the form of Exhibit B
\nhereto (each of the foregoing agreements with AmEx, certain corporate
\nstockholders and the individual stockholders, a “STOCKHOLDERS AGREEMENT”, and
\ncollectively, the “STOCKHOLDERS AGREEMENTS”), concurrently with the execution of
\nthis Agreement.<\/p>\n
NOW, THEREFORE, in consideration of the premises, and of the mutual
\ncovenants, representations, warranties and agreements contained herein, the
\nparties hereto agree as follows:<\/p>\n
ARTICLE I
\n CERTAIN DEFINITIONS<\/p>\n
1.01 CERTAIN DEFINITIONS. The following terms are used in this Agreement
\nwith the meanings set forth below:<\/p>\n
“ACQUISITION PROPOSAL” means any offer or other proposal which, if
\n consummated, would result in an Acquisition Transaction; provided that
\n solely for purposes of the definition of Superior Proposal, all references
\n to 20% in the definition of Acquisition Transaction shall be deemed
\n references to 50%.<\/p>\n
“ACQUISITION TRANSACTION” means a transaction or series of transactions
\n that, directly or indirectly, constitutes an acquisition by a Person
\n (including a group of Persons that would qualify as a “group” within the
\n meaning of Section 13(d) of the Exchange Act) of (A) assets or businesses
\n that constitute or represent more than 20% of the total revenue, operating
\n income, assets or<\/p>\n
1<\/p>\n
earnings before interest, taxes, depreciation and amortization of the
\n Company and its Subsidiaries, taken as a whole, or (B) more than 20% of the
\n outstanding shares of the voting securities of the Company or capital stock
\n of, or other equity or voting interests in, any Subsidiary or Subsidiaries
\n of the Company which, taken together, directly or indirectly hold at least
\n the share of assets or businesses referred to in clause (A) above, whether
\n by means of (a) a merger, share exchange or consolidation, or any similar
\n transaction, (b) a purchase, lease or other sale, transfer or disposition,
\n or (c) a purchase or other acquisition (including by way of merger,
\n consolidation, share exchange or otherwise).<\/p>\n
“AFFILIATE” means, with respect to any specified Person, any other
\n Person directly or indirectly controlling or controlled by or under direct
\n or indirect common control with such specified Person. For the purposes of
\n this definition, “control,” when used with respect to any specified Person,
\n means the power to direct the management and policies of such Person,
\n directly or indirectly, whether through the ownership of voting securities,
\n by contract or otherwise; and the terms “controlling” and “controlled” have
\n correlative meanings.<\/p>\n
“AGREEMENT” means this Agreement, as amended or modified from time to
\n time in accordance with Section 9.02.<\/p>\n
“ANTITRUST AUTHORITIES” has the meaning assigned in Section 6.07(c).<\/p>\n
“BANKRUPTCY AND EQUITY EXCEPTION” has the meaning assigned in
\n Section 4.02(d)(i).<\/p>\n
“BUSINESS DAY” means any day other than Saturday, Sunday and any day on
\n which banks in the State of New York are required or authorized by law or
\n regulation to be closed.<\/p>\n
“BYLAWS” has the meaning assigned in Section 3.01(c).<\/p>\n
“CERTIFICATE” has the meaning assigned in Section 3.04(b).<\/p>\n
“CERTIFICATE OF INCORPORATION” has the meaning assigned in
\n Section 3.01(b).<\/p>\n
“CLOSING” and “CLOSING DATE” have the meanings assigned in
\n Section 3.03.<\/p>\n
“CODE” means the Internal Revenue Code of 1986, as amended.<\/p>\n
“COMPANY” has the meaning assigned in the preamble to this Agreement.<\/p>\n
“COMPANY COMMON STOCK” has the meaning assigned in the recitals.<\/p>\n
“COMPANY COMPENSATION AND BENEFIT PLANS” has the meaning assigned in
\n Section 4.02(n)(i).<\/p>\n
“COMPANY FINANCIAL STATEMENTS” has the meaning assigned in
\n Section 4.02(g)(ii).<\/p>\n
“COMPANY INTELLECTUAL PROPERTY” means (a) all inventions (whether
\n patentable or unpatentable and whether or not reduced to practice), all
\n improvements thereon, and all patents, patent applications and patent
\n disclosures, together with all reissuances, continuations,
\n continuations-in-part, revisions, extensions and reexaminations thereof,
\n (b) all trademarks, service marks, trade dress, logos, trade names, domain
\n names, and corporate names, together with all translations, adaptations,
\n derivations and combinations thereof and including all goodwill associated
\n therewith, and all applications, registrations and renewals in connection
\n therewith, (c) all copyrights and all applications, registrations and
\n renewals in connection therewith, (d) all mask works and all applications,
\n registrations and renewals in connection therewith, (e) all trade secrets
\n and confidential business information (including ideas, research and
\n development, know-how, formulas, compositions, manufacturing and production
\n processes and techniques, methods, schematics, technology, technical data,
\n designs, drawings, flowcharts, block diagrams, specifications, customer and
\n supplier lists, pricing and cost information and business and marketing
\n plans and proposals), (f) all computer software (including source code,
\n object code, data and<\/p>\n
2<\/p>\n
documentation related thereto), (g) all copies and tangible embodiments of
\n the foregoing categories of intellectual property listed in subsections
\n (a) through (f) herein (in whatever form or medium), and (h) all licenses,
\n sublicenses, agreements, or permissions related to the foregoing categories
\n of intellectual property listed in subsections (a) through (f) herein
\n (categories (a) through (h) herein are collectively referred to as
\n “INTELLECTUAL PROPERTY”) which is owned by the Company or its Subsidiaries
\n or is used or has been used in connection with the Company or its
\n Subsidiaries to conduct their business.<\/p>\n
“COMPANY OPTIONS” means, collectively, outstanding options to purchase
\n Company Shares under the Company Shares Plans.<\/p>\n
“COMPANY PREFERRED STOCK” has the meaning assigned in the recitals.<\/p>\n
“COMPANY PROXY STATEMENT” has the meaning assigned in Section 4.03(d).<\/p>\n
“COMPANY REQUISITE VOTE” has the meaning assigned in
\n Section 4.02(d)(i).<\/p>\n
“COMPANY SEC DOCUMENTS” has the meaning assigned in Section 4.02(g)(i).<\/p>\n
“COMPANY SHAREHOLDERS MEETING” has the meaning assigned in
\n Section 6.03.<\/p>\n
“COMPANY SHARES” has the meaning assigned in the recitals.<\/p>\n
“COMPANY SHARES PLANS” has the meaning assigned in
\n Section 4.02(b)(iii).<\/p>\n
“CONFIDENTIALITY AGREEMENT” has the meaning assigned in
\n Section 6.05(b).<\/p>\n
“CONTENT DELIVERY AGREEMENT” means a Contract whereby the Company
\n provides certain travel information and travel reservation services to the
\n customers of another entity through such entity’s wireless communications
\n services.<\/p>\n
“CONSTITUTIVE DOCUMENTS” means, with respect to any Person (other than
\n an individual), such Person’s articles or certificate of incorporation and
\n bylaws or similar organizational documents.<\/p>\n
“CONTINUING EMPLOYEES” has the meaning assigned in Section 6.08(b).<\/p>\n
“CONTRACT” means, with respect to any Person, any agreement, indenture,
\n debt instrument, contract, lease or legally binding commitment to which such
\n Person or any of its Subsidiaries is a party or by which any of them may be
\n bound or to which any of their properties may be subject.<\/p>\n
“COSTS” has the meaning assigned in Section 6.10(a).<\/p>\n
“DGCL” has the meaning assigned in the recitals.<\/p>\n
“DISCLOSED CONTRACTS” has the meaning assigned in
\n Section 4.02(s)(i)(R).<\/p>\n
“DISCLOSURE SCHEDULE” has the meaning assigned in Section 4.01.<\/p>\n
“DISSENTERS’ SHARES” means Company Shares the holders of which shall
\n have perfected and not withdrawn or lost their appraisal rights in
\n accordance with Section 262 of the DGCL.<\/p>\n
“DLJ” has the meaning assigned in Section 4.02(m)(i).<\/p>\n
“DROP DEAD DATE” has the meaning assigned in Section 8.01(c).<\/p>\n
“EFFECTIVE TIME” means the time at which the Merger becomes effective in
\n accordance with Section 3.02.<\/p>\n
“EMPLOYEE” means each current former, or retired employee, officer,
\n consultant, independent contractor or director of the Company or any of its
\n Subsidiaries.<\/p>\n
3<\/p>\n
“ENVIRONMENTAL LAW(S)” means the Comprehensive Environmental Response,
\n Compensation and Liability Act, 42 U.S.C. SectionSection 9601 ET SEQ., the
\n Resource Conservation and Recovery Act, 42 U.S.C. SectionSection 6901 ET
\n SEQ., the Clean Air Act, 42 U.S.C. SectionSection 7401 ET. SEQ., the Clean
\n Water Act (Federal Water Pollution Control Act), 33 U.S.C. SectionSection
\n 1251 ET SEQ., the Occupational Safety and Health Act, 29 U.S.C.
\n SectionSection 641, ET SEQ., all rules and regulations promulgated pursuant
\n to any of the above statutes, and any other foreign, federal, state or local
\n law, statute, ordinance, rule or regulation governing Environmental Matters,
\n including any common law cause of action providing any right or remedy
\n relating to Environmental Matters and all applicable judicial and
\n administrative decisions, orders, and decrees relating to Environmental
\n Matters.<\/p>\n
“ENVIRONMENTAL MATTER” means any matter arising out of, relating to, or
\n resulting from pollution, contamination, protection of the environment,
\n human health or safety, sanitation, and any matter arising out of, relating
\n to, or resulting from emissions, discharges, disseminations, releases or
\n threatened releases, of Hazardous Substances into the air (indoor and
\n outdoor), surface water, groundwater, soil, land surface or subsurface,
\n buildings, facilities, real or personal property or fixtures or otherwise
\n arising out of, relating to, or resulting from the manufacture, processing,
\n distribution, use, treatment, storage, disposal, transport, handling,
\n release or threatened release of Hazardous Substances.<\/p>\n
“ENVIRONMENTAL PERMITS” has the meaning assigned in Section 4.02(u).<\/p>\n
“EPARTNER AGREEMENT” means a Contract whereby the Company provides
\n online travel reservation services through a private label web site hosted
\n by the Company through which the customers of another entity can access the
\n Company’s reservation system.<\/p>\n
“ERISA” means the Employee Retirement Income Security Act of 1974, as
\n amended.<\/p>\n
“ERISA AFFILIATE” has, with respect to any Person, the meaning assigned
\n in Section 4.02(n)(iv).<\/p>\n
“ESPP” has the meaning assigned in Section 6.08(a).<\/p>\n
“EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended,
\n and the rules and regulations thereunder.<\/p>\n
“EXCHANGE AGENT” has the meaning assigned in Section 3.06(a).<\/p>\n
“EXCHANGE RATIO” means the Offer Price divided by the average closing
\n price of Parent Common Stock for the five (5) trading days immediately
\n preceding the Effective Time.<\/p>\n
“FLIGHTREZ AGREEMENT” means a Contract pursuant to which the Company
\n provides online travel reservations services through a private label web
\n site hosted by the Company through which an airline’s customers can access
\n the Company’s reservation system.<\/p>\n
“GAAP” means generally accepted accounting principles in the United
\n States.<\/p>\n
“GLOBAL MANAGER AGREEMENT” means a Contract whereby the Company provides
\n online travel reservations services through a web site hosted by the Company
\n through which employees of another entity and other authorized users can
\n access the Company’s reservation system.<\/p>\n
“GOVERNMENTAL AUTHORITY” means any United States or foreign government,
\n any state or other political subdivision thereof, any entity exercising
\n executive, legislative, judicial, regulatory or administrative functions of
\n or pertaining to government, including, without limitation, the SEC, NYSE,
\n Nasdaq or any other government authority, agency, department, board,
\n commission or instrumentality and any court, tribunal or arbitrator(s) of
\n competent jurisdiction.<\/p>\n
“HAZARDOUS SUBSTANCES” means any pollutants, contaminants, toxic or
\n hazardous or extremely hazardous substances, materials, wastes,
\n constituents, compounds, chemicals (including, without limitation, petroleum
\n or any by-products or fractions thereof, any form of natural gas, lead,<\/p>\n
4<\/p>\n
asbestos and asbestos-containing materials, building construction materials
\n and debris, polychlorinated biphenyls (“PCBS”) and PCB-containing equipment,
\n radon and other radioactive elements, ionizing radiation, electromagnetic
\n field radiation and other non-ionizing radiation, infectious, carcinogenic,
\n mutagenic, or etiologic agents, pesticides, defoliants, explosives,
\n flammables, corrosives and urea formaldehyde foam insulation) that are
\n regulated by, or may form the basis of liability under, any Environmental
\n Law.<\/p>\n
“HSR ACT” means the Hart-Scott-Rodino Antitrust Improvements Act of
\n 1976, as amended, and the rules and regulations thereunder.<\/p>\n
“INDEMNIFIED PARTIES” has the meaning assigned in Section 6.10(a).<\/p>\n
“INFORMATION STATEMENT” has the meaning assigned in Section 2.03.<\/p>\n
“INSURANCE AMOUNT” has the meaning assigned in Section 6.10(c).<\/p>\n
“IRS” means the United States Internal Revenue Service.<\/p>\n
“LIENS” means a charge, mortgage, pledge, security interest, claim,
\n lien, or encumbrance of any nature whatsoever.<\/p>\n
“LITIGATION” has the meaning assigned in Section 4.02(j).<\/p>\n
“MATERIAL ADVERSE EFFECT” means, with respect to Parent, the Company or
\n the Surviving Corporation, respectively, an effect or change that,
\n individually or in the aggregate with other such effects or changes, is both
\n material and adverse with respect to the respective financial condition,
\n results of operations, assets or business of Parent and its Subsidiaries,
\n the Company and its Subsidiaries or the Surviving Corporation and its
\n Subsidiaries, in each case taken as a whole; provided that none of the
\n following alone shall be deemed, in and of itself, to constitute a Material
\n Adverse Effect: (a) a change in the market price or trading volume of
\n Company Shares, (b) a loss by the Company of its suppliers, customers or
\n employees that is directly and principally related to Parent being a party
\n to this Agreement or (c) changes in general economic conditions or changes
\n affecting the industry generally (as opposed to Parent-specific or
\n Company-specific changes) in which Parent or the Company operates.<\/p>\n
“MATERIAL CONTRACT” has the meaning assigned in Section 4.02(s)(i)(R).<\/p>\n
“MERGER” has the meaning assigned in the recitals.<\/p>\n
“MERGER CONSIDERATION” has the meaning assigned in Section 3.04(a).<\/p>\n
“MERGER SUB” has the meaning assigned in the preamble to this Agreement.<\/p>\n
“MERGER SUB INSIDERS” has the meaning assigned in Section 2.03.<\/p>\n
“MINIMUM TENDER CONDITION” has the meaning assigned in Annex A hereto.<\/p>\n
“NASDAQ” means the National Association of Securities Dealers Automated
\n Quotations System.<\/p>\n
“NEW POTENTIAL DISNEY WARRANT” has the meaning assigned in
\n Section 3.08(b).<\/p>\n
“NEW WARRANT” has the meaning assigned in Section 3.08(a).<\/p>\n
“NYSE” means the New York Stock Exchange, Inc.<\/p>\n
“OFFER” has the meaning assigned in the recitals.<\/p>\n
“OFFER DOCUMENTS” has the meaning assigned in Section 2.01(b).<\/p>\n
“OFFER PRICE” has the meaning assigned in the recitals.<\/p>\n
5<\/p>\n
“OFFER TO PURCHASE” has the meaning assigned in Section 2.01(b).<\/p>\n
“OLD POTENTIAL DISNEY WARRANT” has the meaning assigned in
\n Section 3.08(b).<\/p>\n
“OLD WARRANT” has the meaning assigned in Section 3.08(a).<\/p>\n
“ORIGINATORS” has the meaning assigned in Section 4.02(q)(iii).<\/p>\n
“PARENT” has the meaning assigned in the preamble to this Agreement.<\/p>\n
“PARENT COMMON STOCK” has the meaning assigned in Section 3.07(a).<\/p>\n
“PENSION PLAN” has the meaning assigned in Section 4.02(n)(iii).<\/p>\n
“PERSON” means any individual, bank, corporation, limited liability
\n company, partnership, association, joint-stock company, business trust,
\n unincorporated organization or other entity.<\/p>\n
“REPORTS” has the meaning assigned in Section 4.02(f).<\/p>\n
“REPRESENTATIVES” means, with respect to any Person, such Person’s
\n directors, officers, employees, legal and financial advisors or any
\n representatives of such legal and financial advisors.<\/p>\n
“RESTRAINTS” has the meaning assigned in Section 7.01(c).<\/p>\n
“RESTRICTED SHARE” has the meaning assigned in Section 3.07(b).<\/p>\n
“RESTRICTED STOCK AGREEMENT” has the meaning assigned in
\n Section 3.07(b).<\/p>\n
“RIGHTS” means, with respect to any Person, securities or obligations
\n convertible into or exercisable or exchangeable for, or giving any Person
\n any preemptive or other right to subscribe for or acquire, or any Warrants
\n or options (including, in the case of the Company, the Company Options),
\n calls or commitments relating to, or any stock or equity appreciation right
\n or other instrument the value of which is determined in whole or in part by
\n reference to the market price or value of, shares of capital stock of such
\n Person.<\/p>\n
“SCHEDULE 14D-9” has the meaning assigned in Section 2.02(b).<\/p>\n
“SCHEDULE TO” has the meaning assigned in Section 2.01(b).<\/p>\n
“SEC” means the Securities and Exchange Commission.<\/p>\n
“SECURITIES ACT” means the Securities Act of 1933, as amended, and the
\n rules and regulations thereunder.<\/p>\n
“SECURITIES LAWS” means, collectively, the Securities Act and the
\n Exchange Act and all state securities laws and the rules and regulations
\n thereunder.<\/p>\n
“STATE FILINGS” has the meaning assigned in Section 2.01(b).<\/p>\n
“STOCKHOLDERS AGREEMENT” has the meaning assigned in the recitals.<\/p>\n
“SUBSIDIARY” with respect to a Person, shall mean (x) any partnership of
\n which such Person or any of its Subsidiaries is a general partner or
\n (y) any other entity in which such Person or any of its Subsidiaries owns or
\n has the power to vote more than 50% of the equity interests in such entity
\n having general voting power to participate in the election of the governing
\n body of such entity.<\/p>\n
“SUBSIDIARY COMMON STOCK” has the meaning assigned in Section 3.04(e).<\/p>\n
“SUPERIOR PROPOSAL” has the meaning assigned in Section 6.06(a).<\/p>\n
“SURVIVING CORPORATION” has the meaning assigned in Section 3.01(a).<\/p>\n
6<\/p>\n
“TAX” means all federal, state, local, special Taxing Authority and
\n foreign income, profits, franchise, gross receipts, license, premium,
\n environmental (including taxes under Section 59A of the Code), capital
\n stock, severance, stamp, payroll, sales, employment, unemployment,
\n disability, use, transfer, property, withholding, excise, production,
\n occupation, windfall profits, customs duties, social security (or similar),
\n registration, value added, alternative or add-on minimum, estimated,
\n occupancy and other taxes, duties or governmental assessments of any nature
\n whatsoever, together with all interest, penalties and additions imposed with
\n respect to such amounts and any interest in respect of such penalties and
\n additions; and the terms “TAXES” and “TAXABLE” have correlative meanings.<\/p>\n
“TAXING AUTHORITY” means any Governmental Authority responsible for Tax
\n matters.<\/p>\n
“TAX RETURNS” means all returns and reports (including elections,
\n declarations, disclosures, schedules, estimates and information returns and
\n any amendment thereto) required to be supplied to a Tax authority relating
\n to Taxes.<\/p>\n
“TREASURY SHARES” means shares of Company Common Stock, if any, owned by
\n the Company or any of its Subsidiaries.<\/p>\n
“WARRANTS” means all outstanding warrants, and commitments to issue
\n warrants, to purchase equity interests in the Company.<\/p>\n
ARTICLE II
\n OFFER<\/p>\n
2.01 THE OFFER.<\/p>\n
(a) Within a reasonable period of time after the date of the execution
\n of this Agreement, Merger Sub shall, as soon as practicable, but in no event
\n later than the tenth Business Day after the date of this Agreement, commence
\n and Parent shall cause Merger Sub to commence (within the meaning of
\n Rule 14d-2 under the Exchange Act), the Offer. The obligation of Merger Sub
\n to commence the Offer and to accept for payment, and pay for Company Shares
\n tendered pursuant to the Offer shall be subject to (i) those conditions set
\n forth in Annex A (any of which may be waived by Merger Sub in its sole
\n discretion; provided, however, that, without the consent of the Company,
\n except as contemplated by Section 2.01(e), Merger Sub shall not waive the
\n Minimum Tender Condition), and (ii) the receipt by Merger Sub of a
\n certificate signed by duly authorized officers of the Company (as provided
\n in Annex A(c)(iii)) to the effect that the condition to the obligation of
\n the Merger Sub set forth in Annex A(c)(iii) has been satisfied. Subject to
\n the provisions of this Agreement, the Offer shall initially expire on the
\n twentieth business day from and after the date the Offer is commenced,
\n including the date of the commencement of the Offer as the first business
\n day in accordance with Rule 14d-2, unless this Agreement is terminated in
\n accordance with Article VIII, in which case the Offer (whether or not
\n previously extended in accordance with the terms hereof) shall expire on
\n such date of termination.<\/p>\n
(b) As soon as practicable on the date of commencement of the Offer,
\n Parent and Merger Sub shall file with the SEC with respect to the Offer a
\n Tender Offer Statement on Schedule TO (together with all amendments and
\n supplements thereto, the “SCHEDULE TO”), which will comply in all material
\n respects with the provisions of applicable federal securities laws and will
\n contain an offer to purchase relating to the Offer (the “OFFER TO PURCHASE”)
\n and forms of related letters of transmittal and summary advertisement (which
\n documents, together with any supplements or amendments thereto, are referred
\n to herein collectively as the “OFFER DOCUMENTS”). Parent and Merger Sub
\n shall make all filings required by applicable state law relating to the
\n Offer (the “STATE FILINGS”) as and when required by applicable state law.
\n Parent and Merger Sub will deliver copies of the proposed forms of the
\n Schedule TO, the Offer Documents and the State Filings (as well as<\/p>\n
7<\/p>\n
any change thereto) to the Company within a reasonable time prior to the
\n commencement of the Offer for prompt review and comment by the Company and
\n its counsel. Parent and Merger Sub will provide the Company and its counsel
\n in writing any comments that Merger Sub, Parent or their counsel may receive
\n from the SEC or its staff or any applicable state authority with respect to
\n the Offer Documents or the State Filings promptly after the receipt thereof.
\n Parent and Merger Sub shall promptly correct any information in the Schedule
\n TO, the Offer Documents or the State Filings that shall have become false or
\n misleading in any material respect and take all steps necessary to cause
\n such Schedule TO, Offer Documents or State Filings as so corrected to be
\n filed with the SEC and any applicable state authority and disseminated to
\n the stockholders of the Company, as and to the extent required by applicable
\n law. Parent and Merger Sub will provide copies of any amendments or
\n supplements to the Offer Documents, the Schedule TO or the State Filings
\n prior to any filing of such amendments or supplements with the SEC or any
\n applicable state authority in order to provide the Company and its counsel
\n with a reasonable opportunity to review and comment.<\/p>\n
(c) Each of Parent and Merger Sub expressly reserves the right to modify
\n the terms of the Offer, except that neither Parent nor Merger Sub shall,
\n without the prior written consent of the Company, (i) decrease the price per
\n Company Shares payable in the Offer, (ii) change the form of consideration
\n payable in the Offer, (iii) decrease the number of Company Shares sought
\n pursuant to the Offer (except as contemplated by Section 2.01(e)),
\n (iv) change or modify the conditions to the Offer in a manner adverse to the
\n Company or holders of Company Shares, (v) impose additional conditions to
\n the Offer, or (vi) amend any term of the Offer in any manner adverse to the
\n Company or holders of Company Shares. So long as this Agreement is in effect
\n and the conditions contained in Annex A have not been satisfied or waived,
\n Parent shall cause Merger Sub to cause the Offer not to expire until 30
\n Business Days after such time as all of the conditions contained in Annex A
\n have been satisfied or waived, except for the Minimum Tender Condition.
\n Merger Sub may, without the consent of the Company, further extend the
\n Offer, (i) for any period required by any rule, regulation, interpretation
\n or position of the SEC or the staff thereof applicable to the Offer and
\n (ii) from time to time, for an aggregate period of not more than ten
\n (10) business days (for all such extensions under this clause (ii)) beyond
\n the latest expiration date that would be permitted under the preceding
\n sentence or clause (i) of this sentence. Subject to and in accordance with
\n the terms and conditions of the Offer and this Agreement (but subject to the
\n right of termination in accordance with Article VIII), Merger Sub shall, and
\n Parent shall cause Merger Sub to, accept for payment and pay for, in
\n accordance with the terms of the Offer, all Company Shares validly tendered
\n and not withdrawn pursuant to the Offer as soon as practicable after the
\n expiration of the Offer. In addition to the foregoing, Merger Sub may
\n provide for a “subsequent offering period” to the extent provided in
\n Rule 14d-11 under the Exchange Act after the purchase of Company Shares
\n pursuant to the Offer.<\/p>\n
(d) On or prior to the date that Merger Sub becomes obligated to accept
\n for payment and pay for Company Shares pursuant to the Offer, Parent will
\n provide or cause to be provided to Merger Sub the funds necessary to pay for
\n all Company Shares that Merger Sub becomes obligated to accept for payment
\n and pay for pursuant to the Offer.<\/p>\n
(e) Notwithstanding anything to the contrary in this Agreement, Merger
\n Sub may waive the Minimum Tender Condition without the consent of the
\n Company as long as Merger Sub is permitted by applicable law to and does
\n exercise the Options (as defined in the Stockholders Agreements) immediately
\n following the consummation of the Offer and acquires title to all of the
\n Company Shares subject thereto and as a result of such exercise and purchase
\n of Shares under the Offer, the aggregate amount of Company Shares acquired
\n by Merger Sub exceeds the Minimum Tender Condition.<\/p>\n
8<\/p>\n
2.02 COMPANY ACTIONS.<\/p>\n
(a) The Company hereby consents to the Offer and represents that the
\n Company’s Board of Directors, at a meeting duly called and held, has adopted
\n resolutions approving the Offer, the Merger and this Agreement, determining
\n that the terms of the Offer and the Merger are fair to, and in the best
\n interests of, the Company’s stockholders and recommending acceptance of the
\n Offer and approval of the Merger and this Agreement by the stockholders of
\n the Company; provided, however, that the Board of Directors of the Company
\n may modify, withdraw or change such recommendation solely to the extent that
\n the Company and the Board of Directors are permitted to do so under
\n Section 6.06 of this Agreement. Subject to the foregoing and Section 6.06,
\n the Company hereby consents to the inclusion in the Offer Documents of the
\n recommendations of the Company’s Board of Directors described in this
\n Section.<\/p>\n
(b) The Company shall file with the SEC on the date of the commencement
\n of the Offer a Solicitation\/Recommendation Statement on Schedule 14D-9
\n (together with all amendments and supplements thereto, the
\n “Schedule 14D-9”) containing such recommendations of the Board of Directors
\n in favor of the Offer and the Merger; provided, however, that the Board of
\n Directors of the Company may modify, withdraw or change such recommendation
\n solely to the extent that the Board of Directors and the Company are
\n permitted to do so under Section 6.06 of this Agreement. The Company will
\n deliver the proposed forms of the Schedule 14D-9 and the exhibits thereto to
\n Parent within a reasonable time prior to the commencement of the Offer for
\n prompt review and comment by Parent and its counsel. Parent and its counsel
\n shall be given a reasonable opportunity to review any amendments and
\n supplements to the Schedule 14D-9 prior to their filing with the SEC or
\n dissemination to stockholders of the Company. The Company will provide
\n Parent and its counsel in writing any comments that the Company or its
\n counsel may receive from the SEC or its staff with respect to the
\n Schedule 14D-9 promptly after receipt thereof, and shall disseminate the
\n Schedule 14D-9 as required by Rule 14d-9 promulgated under the Exchange Act.
\n The Company shall promptly correct any information in the Schedule 14D-9
\n that shall have become false or misleading in any material respect and take
\n all steps necessary to cause such Schedule 14D-9 as so corrected to be filed
\n with the SEC and disseminated to the stockholders of the Company, as and to
\n the extent required by applicable federal securities laws.<\/p>\n
(c) In connection with the Offer, the Company shall furnish to, or cause
\n to be furnished to, Parent mailing labels, security position listings and
\n any available listing or computer file containing the names and addresses of
\n the record holders and non-objecting beneficial owners of the Company Shares
\n as of a recent date and shall furnish Parent with such information and
\n assistance as Parent or its agents may reasonably request in communicating
\n the Offer to the stockholders of the Company. Subject to the requirements of
\n applicable law, and except for such steps as are necessary to disseminate
\n the Offer Documents and any other documents necessary to consummate the
\n Offer or the Merger, Parent and Merger Sub shall, and shall cause each of
\n their Affiliates to, hold the information contained in any of such labels
\n and lists in confidence, use such information only in connection with the
\n Offer and the Merger, and, if this Agreement is terminated, promptly deliver
\n to the Company all copies of such information, labels, listings and files or
\n extracts therefrom then in their possession, in the possession of their
\n agents or representatives or under their control.<\/p>\n
2.03 DIRECTORS OF THE COMPANY.<\/p>\n
Promptly upon the acceptance of and payment for a number of Company
\n Shares by Merger Sub pursuant to the Offer that satisfies the Minimum Tender
\n Condition (and, to the extent the Minimum Tender Condition is waived
\n pursuant to Section 2.01(e), the exercise of the Options as contemplated by
\n Section 2.01(e)), Merger Sub shall be entitled to designate such number of
\n directors, rounded up to the next whole number, on the Board of Directors of
\n the Company as will<\/p>\n
9<\/p>\n
give Merger Sub, subject to compliance with Section 14(f) of the Exchange
\n Act, representation on the Board of Directors of the Company equal to the
\n product of (a) the number of directors on the Board of Directors of the
\n Company and (b) the percentage that such number of votes represented by
\n Company Shares so purchased and Company Shares otherwise held by Parent and
\n its affiliates, if any, bears to the number of votes represented by Company
\n Shares outstanding, and the Company shall at such time, subject to
\n applicable law, cause Merger Sub’s designees to be so elected by its
\n existing Board of Directors. Subject to applicable law, the Company shall
\n take all action requested by Parent necessary to effect any such election,
\n including mailing to its stockholders the information statement (the
\n “INFORMATION STATEMENT”) containing the information required by
\n Section 14(f) of the Exchange Act and Rule 14(f)-1 promulgated thereunder,
\n and the Company shall make such mailing with the mailing of the
\n Schedule 14D-9 (provided that Parent and Merger Sub shall have provided to
\n the Company on a timely basis all information required to be included in the
\n Information Statement with respect to Merger Sub’s designees). In connection
\n with the foregoing, the Company will, subject to applicable law, promptly
\n either increase the size of the Board of Directors of the Company and\/or
\n obtain the resignation of such number of its current directors as is
\n necessary to enable Merger Sub’s designees to be elected or appointed to the
\n Company’s Board of Directors as provided above; provided, however, that
\n prior to the Effective Time the Board of Directors of the Company shall
\n always have at least two (2) members who are neither officers, directors,
\n stockholders or designees of Merger Sub or any of its affiliates (“MERGER
\n SUB INSIDERS”). If the number of directors who are not Merger Sub Insiders
\n is reduced below two (2) for any reason prior to the Effective Time, then
\n the remaining director who is not a Merger Sub Insider shall be entitled to
\n designate a person to fill such vacancy who is not a Merger Sub Insider and
\n who shall be a director not deemed to be a Merger Sub Insider for all
\n purposes of this Agreement. Following the election of Merger Sub’s designees
\n to the Company’s Board of Directors pursuant to this Section 2.03 and prior
\n to the Effective Time, (i) any amendment or termination of this Agreement by
\n the Company, (ii) any extension or waiver by the Company of the time for the
\n performance of any of the obligations or other acts of Parent or Merger Sub
\n under this Agreement or (iii) any waiver of the Company’s rights hereunder
\n shall, in any such case, require the concurrence of a majority of the
\n directors of the Company then in office who are not Merger Sub Insiders.<\/p>\n
ARTICLE III
\n THE MERGER<\/p>\n
3.01 THE MERGER. At the Effective Time:<\/p>\n
(a) STRUCTURE AND EFFECTS OF THE MERGER. The Merger will occur and the
\n separate corporate existence of Merger Sub will thereupon cease. The Company
\n will be the surviving corporation in the Merger (sometimes hereinafter
\n referred to as the “SURVIVING CORPORATION”) and will continue to be governed
\n by the laws of the State of Delaware, and the separate corporate existence
\n of the Company, with all its rights, privileges, immunities, powers and
\n franchises, will continue unaffected by the Merger except as set forth in
\n this Article III. The Merger will have the effects specified in the DGCL.<\/p>\n
(b) CERTIFICATE OF INCORPORATION. The certificate of incorporation of
\n the Surviving Corporation (the “CERTIFICATE OF INCORPORATION”) shall be the
\n certificate of incorporation of Merger Sub as in effect immediately prior to
\n the Effective Time, until duly amended in accordance with the terms thereof
\n and the DGCL.<\/p>\n
(c) BYLAWS. The bylaws of the Surviving Corporation (the “BYLAWS”) will
\n be the bylaws of Merger Sub as in effect immediately prior to the Effective
\n Time, until duly amended in accordance with the terms thereof and the
\n Certificate of Incorporation.<\/p>\n
10<\/p>\n
(d) DIRECTORS. The directors of the Surviving Corporation will be the
\n directors of Merger Sub immediately prior to the Effective Time, and such
\n directors, together with any additional directors as may thereafter be
\n elected, will hold such office until such time as their successors shall be
\n duly elected or appointed and qualified or until their earlier death,
\n resignation or removal in accordance with the Certificate of Incorporation
\n and the Bylaws.<\/p>\n
3.02 EFFECTIVE TIME. The Merger will become effective upon the filing, in
\nthe office of the Secretary of State of the State of Delaware, of a certificate
\nof merger in accordance with Section 251 of the DGCL, or at such later date and
\ntime as may be set forth in such certificate (the “EFFECTIVE TIME”). Subject to
\nthe satisfaction or waiver of the conditions set forth in Article VII, the
\nparties will cause the Merger to become effective (a) on a date that is not
\nlater than three Business Days after the last of the conditions set forth in
\nArticle VII (other than conditions that by their terms cannot be satisfied until
\nthe time of Closing) shall have been satisfied or waived in accordance with the
\nterms of this Agreement or (b) on such other date as the parties may agree in
\nwriting.<\/p>\n
3.03 CLOSING. The closing of the Merger (the “CLOSING”) will take place at
\nthe offices of Fried, Frank, Harris, Shriver & Jacobson, One New York Plaza, New
\nYork, New York, or at such other place as the parties shall agree, on the date
\n(the “CLOSING DATE”) when the Effective Time is to occur.<\/p>\n
3.04 MERGER CONSIDERATION. Subject to the terms and conditions of this
\nAgreement, at the Effective Time, by virtue of the Merger and without any action
\non the part of Parent, Merger Sub or any holder of shares of capital stock of
\nthe Company:<\/p>\n
(a) Each Company Share issued and outstanding immediately prior to the
\n Effective Time (other than Dissenters’ Shares, Treasury Shares and shares
\n held directly or indirectly by Parent), will be converted into the right to
\n receive, from the Surviving Corporation, an amount of cash equal to the
\n Offer Price (the “MERGER CONSIDERATION”).<\/p>\n
(b) At the Effective Time, each Company Share, other than Dissenter’s
\n Shares, shall no longer be outstanding, shall be canceled and retired and
\n shall cease to exist, and each certificate (a “CERTIFICATE”) formerly
\n representing any of such Company Shares shall thereafter represent only the
\n right to receive the Offer Price.<\/p>\n
(c) In the event that, subsequent to the date of this Agreement but
\n prior to the Effective Time, the Company changes the number of Company
\n Shares issued and outstanding as a result of a stock split, stock
\n combination, stock dividend, recapitalization, redenomination of share
\n capital or other similar transaction, the Merger Consideration and other
\n items dependent thereon shall be appropriately adjusted to provide to the
\n holders of Company Shares the same economic effect as contemplated by this
\n Agreement prior to such stock split, stock combination, stock dividend,
\n recapitalization, redenomination of share capital or other similar
\n transaction.<\/p>\n
(d) Each Company Share that, immediately prior to the Effective Time, is
\n a Treasury Share or is owned directly or indirectly by Parent, will be
\n canceled and retired and will cease to exist, and no exchange or payment
\n will be made therefor.<\/p>\n
(e) At the Effective Time, each share of common stock, par value $0.01
\n per share (“SUBSIDIARY COMMON STOCK”), of Merger Sub issued and outstanding
\n immediately prior to the Effective Time shall remain outstanding and each
\n certificate therefor shall continue to evidence one share of common stock of
\n the Surviving Corporation.<\/p>\n
3.05 RIGHTS AS STOCKHOLDERS; STOCK TRANSFERS. At the Effective Time,
\nholders of Company Shares (other than holders of Dissenters’ Shares) will cease
\nto be, and will have no rights as, stockholders of the Company, other than the
\nright to receive (a) any dividend or other distribution with respect to such
\nCompany Shares with a record date occurring prior to the Effective Time, and
\n(b) the Offer Price.<\/p>\n
11<\/p>\n
After the Effective Time, there will be no transfers on the stock transfer books
\nof the Company or the Surviving Corporation of Company Shares.<\/p>\n
3.06 EXCHANGE PROCEDURE.<\/p>\n
(a) As of the Effective Time, Parent shall deposit or cause to be
\n deposited in trust with a bank or trust company (which has been organized
\n under the laws of the United States or any state of the United States and
\n which has capital and surplus of at least $500,000,000) designated by Parent
\n (the “EXCHANGE AGENT”), for the benefit of the holders of Certificates, the
\n aggregate consideration payable in the Merger in respect of Company Shares
\n outstanding as of the Effective Time. Such deposited funds shall be used for
\n no other purpose. As soon as practicable after the Effective Time, the
\n Exchange Agent shall mail to each holder of record of a Certificate, other
\n than the Company, and any wholly-owned Subsidiary of the Company, (i) a
\n letter of transmittal (which shall specify that delivery shall be effected,
\n and risk of loss and title to the Certificates shall pass, only upon
\n delivery of the Certificates to the Exchange Agent and shall be in a form
\n and have such other provisions as Parent may reasonably specify) and
\n (ii) instructions for use in effecting the surrender of the Certificates in
\n exchange for cash. Upon surrender of a Certificate for cancellation to the
\n Exchange Agent, together with such letter of transmittal, duly executed, and
\n such other documents as may reasonably be required by the Exchange Agent,
\n the holder of such Certificate shall be entitled to receive cash in an
\n amount equal to the product of the number of Company Shares represented by
\n such Certificate multiplied by the Merger Consideration, less any applicable
\n withholding taxes, and such Certificate shall be forthwith canceled. Until
\n surrendered as contemplated by this Section 3.06(a), each Certificate shall
\n be deemed at any time after the Effective Time to represent only the right
\n to receive, upon surrender of such Certificate in accordance with this
\n Section 3.06(a), the applicable amount of cash.<\/p>\n
(b) NO FURTHER OWNERSHIP RIGHTS IN COMPANY SHARES. All cash paid upon
\n the surrender of Certificates in accordance with the terms of this
\n Article III shall be deemed to have been exchanged and paid in full
\n satisfaction of all rights pertaining to the Company Shares theretofore
\n represented by such Certificates and there shall be no further registration
\n of transfers on the stock transfer books of the Surviving Corporation of the
\n Company Shares represented by such Certificates that were outstanding
\n immediately prior to the Effective Time. If, after the Effective Time,
\n Certificates are presented to the Surviving Corporation for any reason, they
\n shall be canceled and exchanged as provided in this Article III, except as
\n otherwise provided by applicable law.<\/p>\n
(c) NO LIABILITY. Neither Parent, Merger Sub nor the Company nor any of
\n their Subsidiaries shall be liable to any holder of Company Shares for any
\n cash delivered to a public official pursuant to any applicable abandoned
\n property, escheat or similar law.<\/p>\n
(d) LOST, STOLEN OR DESTROYED CERTIFICATES. In the event any Certificate
\n shall have been lost, stolen or destroyed, upon the making of an affidavit
\n setting forth that fact by the Person claiming such loss, theft or
\n destruction and, the granting of a reasonable indemnity against any claim
\n that may be made against Parent, Merger Sub or the Exchange Agent with
\n respect to such Certificate, Parent or Merger Sub shall cause the Exchange
\n Agent to issue to such Person the applicable amount of the Merger
\n Consideration with respect to such lost, stolen or destroyed Certificate to
\n which the holder thereof may be entitled pursuant to this Article III.<\/p>\n
3.07 OPTIONS; OTHER EQUITY AWARDS.<\/p>\n
(a) At the Effective Time, each then outstanding Company Option, whether
\n vested or unvested, will be converted into an option to acquire a number of
\n shares of Parent common stock, par value $0.01 per share (“PARENT COMMON
\n STOCK”), equal to the product, rounded to the nearest whole share, of
\n (i) the number of Company Shares subject to such Company Option and
\n (ii) the<\/p>\n
12<\/p>\n
Exchange Ratio. Such converted Company Options shall have a per share
\n exercise price, rounded to the nearest whole cent, equal to (x) the
\n aggregate exercise price for the Company Shares purchasable pursuant to such
\n Company Option divided by (y) the number of shares of Parent Common Stock
\n deemed purchasable under such Company Option in accordance with the
\n foregoing; provided, however, that in the case of any Company Option which
\n is an “incentive stock option” as defined under Section 422 of the Code, the
\n adjustments provided by this Section 3.07 shall be effected in a manner
\n consistent with Section 424(a) of the Code. Prior to the Effective Time, the
\n Company and Parent will make all necessary arrangements with respect to the
\n Company Shares Plans and the stock plans of Parent to permit the assumption
\n of such Company Options by Parent pursuant to this Section 3.07.
\n Notwithstanding the foregoing, each Company Option held by a non-employee
\n director shall, at the election of each such director, at the Effective Time
\n be cancelled and such holder shall receive in settlement thereof a cash
\n payment in an amount, if any, equal to the product of (i) the Offer Price
\n minus the per share exercise price for such Company Option and (ii) the
\n total number of Company Shares which the holder of such Company Option is
\n entitled to purchase under such Company Option.<\/p>\n
(b) At the Effective Time, each Company Share that has been acquired
\n pursuant to the exercise of a Company Option or a stock purchase agreement
\n entered into under any of the Company Shares Plans (a “RESTRICTED STOCK
\n AGREEMENT”), which share is then subject to a risk of forfeiture, including
\n a repurchase right by the Company at a price equal to the original price, if
\n any, paid for such share (a “RESTRICTED SHARE”), shall be converted into the
\n right to receive the Offer Price in accordance with Section 3.04, and such
\n Merger Consideration shall continue to be subject to the same terms,
\n conditions and restrictions as were applicable to such Restricted Share and
\n shall be paid to the holder of such Restricted Share, without interest, only
\n upon the lapse of any risk of forfeiture or repurchase rights in accordance
\n with the vesting schedule to which such Restricted Share is subject.<\/p>\n
(c) At the Effective Time, Parent will assume each then outstanding
\n Company Option, as converted pursuant to this Section 3.07, in accordance
\n with the terms of the Company Shares Plan under which such Company Option
\n was granted and the agreement, if any, by which it is evidenced and each
\n Restricted Stock Agreement. At the Effective Time, the Company shall assign
\n to Parent and Parent shall assume the Company’s repurchase rights under each
\n Company Option and each Restricted Stock Agreement. At or prior to the
\n Effective Time, Parent will take all corporate action necessary to reserve
\n for issuance a sufficient number of shares of Parent Common Stock for
\n delivery upon exercise of Company Options assumed by it in accordance with
\n this Section 3.07. On the date on which the Merger occurs, Parent will
\n file a registration statement on Form S-8, or another appropriate form, with
\n respect to shares of Parent Common Stock subject to such Company Options,
\n and will use its reasonable efforts to maintain the effectiveness of that
\n registration statement (and maintain the current status of the prospectus or
\n prospectuses contained therein) for so long as such Company Options remain
\n outstanding. Except as otherwise specifically provided by this
\n Section 3.07, the terms of the Company Options and Restricted Stock
\n Agreements (including any vesting schedule), and the relevant Company Shares
\n Plans, as in effect on the Effective Time, shall remain in full force and
\n effect with respect to the Company Options and Restricted Shares after
\n giving effect to the Merger and the assumptions by Parent as set forth
\n above.<\/p>\n
(d) As soon as practicable following the Effective Time, Parent shall
\n deliver to the holders of Company Options and Restricted Shares appropriate
\n notices setting forth such holders’ rights pursuant to the respective
\n Company Shares Plans and the agreements evidencing the grants of such
\n Company Options and Restricted Shares.<\/p>\n
13<\/p>\n
3.08 WARRANTS.<\/p>\n
(a) At the Effective Time, Parent shall grant to Northwest Airlines and
\n Imperial Bank, each holders of outstanding warrants to purchase Company
\n Shares (an “OLD WARRANT”), a warrant to purchase Parent Shares (a “NEW
\n WARRANT”). With respect to any such New Warrant (i) the number of shares of
\n Parent Common Stock subject to such New Warrant will be determined by
\n multiplying the number of Company Shares for which the corresponding Old
\n Warrant was exercisable by the Exchange Ratio (for Northwest, this
\n calculation will be made upon exercise of the New Warrant), rounding any
\n fractional shares down to the nearest whole share, and (ii) the exercise
\n price per share of such New Warrant will be determined by dividing the
\n exercise price per share applicable to the Old Warrant by the Exchange
\n Ratio, and rounding the exercise price thus determined down to the nearest
\n whole cent. Except as provided above, the converted or substituted New
\n Warrants shall be subject to the same terms and conditions (including
\n expiration date, vesting and exercise provisions) as were applicable to the
\n Old Warrants immediately prior to the Effective Time.<\/p>\n
(b) Disney has entered into an ePartner Agreement with the Company
\n through which under certain conditions, the Company will issue to Disney a
\n warrant (the “OLD POTENTIAL DISNEY WARRANT”). Parent hereby agrees to adopt
\n the agreement and under the conditions specified in the existing ePartner
\n Agreement and will issue to Disney a warrant (the “NEW POTENTIAL DISNEY
\n WARRANT”). With respect to the New Potential Disney Warrant (i) the number
\n of shares of Parent Common Stock subject to such New Potential Disney
\n Warrant will be determined by multiplying the number of Company Shares for
\n which the corresponding Old Potential Disney Warrant was exercisable by the
\n Exchange Ratio, rounding any fractional shares down to the nearest whole
\n share, and (ii) the exercise price per share of such New Potential Disney
\n Warrant will be determined by dividing the exercise price per share
\n applicable to the Old Potential Disney Warrant by the Exchange Ratio, and
\n rounding the exercise price thus determined down to the nearest whole cent.
\n Except as provided above, the converted or substituted New Potential Disney
\n Warrant shall be subject to the same terms and conditions (including
\n expiration date, vesting and exercise provisions) as were applicable to the
\n Old Potential Disney Warrant immediately prior to the Effective Time.<\/p>\n
3.09 DISSENTING STOCKHOLDERS. Dissenters’ Shares will be paid for by
\nParent in accordance with Section 262 of the DGCL. The Company shall give Parent
\n(a) prompt notice of any written demands for fair value received by the Company,
\nwithdrawals of such demands, and any other related instruments served pursuant
\nto Section 262 of the DGCL and received by the Company and (b) the opportunity
\nto direct all negotiations and proceedings with respect to demands for fair
\nvalue under the DGCL. The Company shall not, except with the prior written
\nconsent of Parent, voluntarily make any payment with respect to any demands for
\nfair value for Dissenters’ Shares or offer to settle, or settle, any such
\ndemands.<\/p>\n
ARTICLE IV
\n REPRESENTATIONS AND WARRANTIES<\/p>\n
4.01 DISCLOSURE SCHEDULES. On or prior to the date hereof, the Company
\ndelivered to Parent, and Parent delivered to the Company, a schedule (with
\nrespect to each such party, its “DISCLOSURE SCHEDULE”) setting forth, among
\nother things, items the disclosure of which is necessary or appropriate either
\n(a) in response to an express informational requirement contained in or
\nrequested by a provision hereof or (b) as an exception to one or more
\nrepresentations or warranties contained in Section 4.02 or 4.03, respectively,
\nor to one or more of its covenants contained in Article V or VI.<\/p>\n
14<\/p>\n
4.02 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. References below to
\nthe “knowledge of the Company” shall mean the actual knowledge of Gadi Maier,
\nKen Pelowski, Bob Brown, David Muhlitner, Eric Sirkin, David Breyfogle and John
\nAnderson. Except as specifically disclosed in the Company Disclosure Schedule
\nreferencing the specific section, the Company hereby represents and warrants to
\nParent as follows:<\/p>\n
(a) DUE ORGANIZATION, GOOD STANDING AND CORPORATE POWER.<\/p>\n
(i) The Company is a corporation duly organized, validly existing and
\n in good standing under the laws of the jurisdiction of its incorporation
\n and has all requisite corporate power and authority to own, lease and
\n operate its properties and to carry on its business as now being
\n conducted. The Company is duly qualified or licensed to do business and
\n is in good standing in each jurisdiction in which the property owned,
\n leased or operated by it or the nature of the business conducted by it
\n makes such qualification necessary, except in such jurisdictions where
\n the failure to be so qualified or licensed and in good standing could not
\n reasonably be expected, individually or in the aggregate, to have a
\n Material Adverse Effect on the Company. The respective Constitutive
\n Documents of the Company do not contain any provision limiting or
\n otherwise restricting the ability of the Company to control its
\n Subsidiaries. The Company Disclosure Schedule sets forth a list of all
\n Subsidiaries of the Company and their respective jurisdictions of
\n incorporation or organization and identifies the Company’s (direct or
\n indirect) percentage of equity ownership therein.<\/p>\n
(ii) Each Subsidiary is a corporation duly organized, validly
\n existing and in good standing (with respect to jurisdictions which
\n recognize the concept of good standing) under the laws of the
\n jurisdiction of its incorporation and each has all requisite corporate
\n power and authority to own, lease and operate its properties and to carry
\n on its business as now being conducted, except where the failure to be so
\n organized, existing and in good standing or to have such power and
\n authority could not be reasonably expected, individually or in the
\n aggregate, to have a Material Adverse Effect on the Company. Each
\n Subsidiary is duly qualified or licensed to do business and is in good
\n standing in each jurisdiction in which the property owned, leased or
\n operated by it or the nature of the business conducted by it makes such
\n qualification necessary, except in such jurisdictions where the failure
\n to be so qualified or licensed and in good standing could not reasonably
\n be expected, individually or in the aggregate, to have a Material Adverse
\n Effect on the Company. The respective Constitutive Documents of the
\n Subsidiaries do not contain any provision limiting or otherwise
\n restricting the ability of the Company to control its Subsidiaries.<\/p>\n
(b) CAPITAL STOCK.<\/p>\n
(i) The Company has (A) 200,000,000 authorized shares of Company
\n Common Stock, of which 35,116, 995 shares were outstanding as of
\n August 23, 2000, and (B) 10,000,000 authorized shares of Company
\n Preferred Stock, of which one share of Series D1, par value $0.0001 per
\n share, one share of Series D2, par value $0.0001 per share and one share
\n of Series D3, par value $0.0001 per share were outstanding as of
\n August 23, 2000. All of the outstanding shares of Company Common Stock
\n and Company Preferred Stock have been duly authorized and are validly
\n issued, fully paid and nonassessable, and have not been issued in
\n violation of any preemptive rights.<\/p>\n
(ii) Set forth on the Company Disclosure Schedule is a list of all
\n existing Rights of any kind with respect to the Company, and no other
\n securities or obligations evidencing Rights are authorized, issued or
\n outstanding. The Company does not have outstanding any bonds, debentures,
\n notes or other obligations the holders of which have the right to vote
\n (or which are convertible into or exercisable for securities having the
\n right to vote) with the stockholders of the Company on any matter.<\/p>\n
15<\/p>\n
(iii) Set forth on the Company’s Disclosure Schedule is a list of
\n each Company Compensation and Benefit Plan under which any shares of
\n capital stock of the Company or any Rights with respect thereto have been
\n or may be awarded or issued (“COMPANY SHARES PLANS”). As of August 23,
\n 2000, the Company has outstanding Company Options representing the right
\n to acquire 8,559,076 shares of Company Common Stock. As of August 23,
\n 2000, there were 21,014,599 shares of Company Common Stock authorized for
\n issuance pursuant to the Company Shares Plans. Except as described in the
\n immediately preceding sentence, the Company has no Company Common Stock
\n authorized for issuance pursuant to any Company Shares Plans.<\/p>\n
(c) SUBSIDIARIES. No equity securities of any of the Company’s
\n Subsidiaries are or may become required to be issued (other than to the
\n Company or a wholly-owned Subsidiary of the Company) by reason of any Rights
\n with respect thereto. There are no Contracts by which any of the Company’s
\n Subsidiaries is or may be bound to sell or otherwise issue any shares of its
\n capital stock, and there are no Contracts relating to the rights of the
\n Company to vote or to dispose of such shares. All of the shares of capital
\n stock of each of the Company’s Subsidiaries are validly issued, fully paid
\n and nonassessable and subject to no Rights and are owned by the Company or a
\n Subsidiary of the Company free and clear of any Liens.<\/p>\n
(d) CORPORATE AUTHORITY AND ACTION.<\/p>\n
(i) The Company has the requisite corporate power and authority, and
\n has taken all corporate action necessary, in order to authorize the
\n execution and delivery of, and performance of its obligations under this
\n Agreement and, subject only to obtaining the requisite adoption of this
\n Agreement by the holders of a majority of the Company Shares entitled to
\n vote at the Company Shareholders Meeting (the “COMPANY REQUISITE VOTE”),
\n to consummate the Merger. This Agreement constitutes a valid and legally
\n binding agreement of the Company, enforceable against the Company in
\n accordance with its terms, subject to bankruptcy, insolvency,
\n reorganization, moratorium, fraudulent transfer and similar laws of
\n general applicability relating to or affecting creditors’ rights and to
\n general equity principles (the “BANKRUPTCY AND EQUITY EXCEPTION”).<\/p>\n
(ii) The Company has taken all action necessary in order to exempt
\n this Agreement, the Stockholders Agreements and the Merger and the other
\n transactions contemplated hereby and thereby from, and this Agreement,
\n the Stockholders Agreements and the Merger and the other transactions
\n contemplated hereby and thereby are exempt from, the requirements of
\n Section 203 of the DGCL.<\/p>\n
(e) GOVERNMENTAL FILINGS; NO VIOLATIONS. Other than those filings and\/or
\n notices made (i) pursuant to Section 3.02, (ii) under the HSR Act, the
\n Exchange Act and the Securities Act, (iii) under state securities or “blue
\n sky” laws and (iv) under rules and regulations of Nasdaq, and (v) such other
\n filings and\/or notices as to which any failure to file such filings or
\n notices could not be reasonably expected to be material to the Company, no
\n notices, reports, applications or other filings are required to be made by
\n the Company or any of its Subsidiaries with, nor are any consents,
\n registrations, approvals, permits or authorizations required to be obtained
\n by any of them from, any Governmental Authority in connection with the
\n execution and delivery of this Agreement by the Company and the consummation
\n by the Company of the Merger and the other transactions contemplated hereby.
\n Subject to obtaining the Company Requisite Vote, and the making or obtaining
\n of all filings, notices, applications, consents, registrations, approvals,
\n permits or authorizations with or of any relevant Governmental Authority
\n with respect to the Merger and the other transactions contemplated hereby,
\n the execution, delivery and performance by the Company of this Agreement and
\n the consummation by the Company of the Merger and the other transactions
\n contemplated hereby do not and will not (1) constitute a breach or violation
\n of, or a<\/p>\n
16<\/p>\n
default under, any law, rule or regulation or any judgment, decree, order,
\n governmental or non-governmental permit or license, or (2) constitute a
\n breach or violation of, or a default under, or cause or allow the
\n acceleration or creation of a Lien (with or without the giving of notice,
\n passage of time or both) pursuant to, any Material Contract of it or of any
\n of its Subsidiaries or to which the Company or any of the Company’s
\n Subsidiaries or its or their properties is subject or bound or
\n (3) constitute a breach or violation of, or a default under, the
\n Constitutive Documents of the Company or any of its Subsidiaries or
\n (4) require any consent or approval under any such law, rule, regulation,
\n judgment, decree, order, governmental or non-governmental permit or license
\n or the consent or approval of any other party to any such Contract except,
\n in the case of clauses (1) and (4), as could not, individually or in the
\n aggregate, reasonably be expected to have a Material Adverse Effect on the
\n Company.<\/p>\n
(f) REPORTS. The Company and its Subsidiaries have filed all reports,
\n registrations, statements and other filings, together with any amendments
\n required to be made with respect thereto, that they were required to file
\n since September 15, 1999 with (i) the SEC or (ii) any other applicable
\n Governmental Authority (all such reports and statements, including the
\n financial statements, exhibits and schedules thereto, being collectively
\n referred to herein as the “REPORTS”), including all Reports required under
\n the Securities Laws. Each of the Reports, when filed, complied as to form
\n with the statutes, rules, regulations and orders enforced or promulgated by
\n the Governmental Authority with which they were filed.<\/p>\n
(g) COMPANY SEC DOCUMENTS AND FINANCIAL STATEMENTS.<\/p>\n
(i) Since November 22, 1999, the Company has timely filed all
\n required reports, schedules, forms, statements and other documents
\n (including exhibits and all other information incorporated therein) with
\n the SEC (“COMPANY SEC DOCUMENTS”). As of their respective dates (and
\n without giving effect to any amendments or modifications filed after the
\n date of this Agreement), each of the Company SEC Documents, including the
\n financial statements, exhibits and schedules thereto, filed and publicly
\n available with the SEC prior to the date hereof complied (and each of the
\n Company SEC Documents filed after the date of this Agreement, will
\n comply) as to form with applicable Securities Laws and did not (or in the
\n case of statements, circulars or reports filed after the date of this
\n Agreement, will not) contain any untrue statement of a material fact or
\n omit to state a material fact required to be stated therein or necessary
\n to make the statements made therein, in the light of the circumstances
\n under which they were made, not misleading.<\/p>\n
(ii) Each of the Company’s consolidated statements of financial
\n condition or balance sheets included in or incorporated by reference into
\n the Company SEC Documents, including the related notes and schedules,
\n fairly presented in all material respects (or, in the case of Company SEC
\n Documents filed after the date of this Agreement, will fairly present in
\n all material respects) the consolidated financial position of the Company
\n and its Subsidiaries as of the date of such balance sheet and each of the
\n Company’s consolidated statements of income, cash flows and changes in
\n stockholders’ equity included in or incorporated by reference into the
\n Company SEC Documents, including any related notes and schedules
\n (collectively, the foregoing financial statements and related notes and
\n schedules are referred to as the “COMPANY FINANCIAL STATEMENTS”), fairly
\n presented in all material respects (or, in the case of Company SEC
\n Documents filed after the date of this Agreement, will fairly present in
\n all material respects) the consolidated results of operations, cash flows
\n and changes in stockholders’ equity, as the case may be, of the Company
\n and its Subsidiaries for the periods set forth therein (subject, in the
\n case of unaudited statements, to normal year-end audit adjustments), in
\n each case in accordance with GAAP consistently applied during the periods
\n involved (except as may be noted therein and except, in the case of
\n unaudited statements, for the absence of notes).<\/p>\n
17<\/p>\n
(h) ABSENCE OF UNDISCLOSED LIABILITIES. Except as disclosed in the
\n Company Financial Statements filed prior to the date hereof, none of the
\n Company or its Subsidiaries has any obligation or liability (absolute,
\n accrued, contingent or otherwise), that, individually or in the aggregate,
\n has had or could reasonably be expected to have a Material Adverse Effect on
\n the Company.<\/p>\n
(i) ABSENCE OF CERTAIN CHANGES OR EVENTS. Except as expressly
\n contemplated by this Agreement or the transactions contemplated hereby,
\n since January 31, 2000, the Company and its Subsidiaries have conducted
\n their business only in the ordinary and usual course consistent with past
\n practice, and there has not been (i) any Material Adverse Effect on the
\n Company or any development or combination of developments that
\n individually or in the aggregate has had or could reasonably be expected
\n to have a Material Adverse Effect on the Company, (ii) any declaration,
\n setting aside or payment of any dividend or other distribution (whether
\n in cash, stock or property) with respect to any of the Company’s capital
\n stock, (iii) any split, dividend, combination, recapitalization or
\n similar transaction with respect to any of the Company’s capital stock or
\n any issuance or the authorization of any issuance of any other securities
\n in respect of, in lieu of or in substitution for shares of the Company’s
\n capital stock, except for issuances of Company Shares upon the exercise
\n of Company Options awarded prior to the date hereof in accordance with
\n their terms, (iv) any granting by the Company or any of its Subsidiaries
\n to any Employee of any increase in compensation, bonus or other benefits
\n (including the right to accelerated vesting with respect to any Company
\n Option or Restricted Share or any other change in control related benefit
\n or compensation), except for normal increases in the ordinary course of
\n business and in accordance with past practice or as was required under
\n any employment agreements in effect as of January 31, 2000, (v) any
\n granting by the Company or any of its Subsidiaries to any Employee of any
\n increase in severance or termination pay, except in the ordinary course
\n of business and consistent with past practice, (vi) any entry by the
\n Company or any of its Subsidiaries into, or any amendments of, any
\n Company Compensation and Benefit Plan, (vii) except as required by a
\n change in GAAP and concurred in by the Company’s independent auditors,
\n any change in accounting methods, principles or practices by the Company
\n materially affecting its assets, liabilities or business or (viii) any
\n tax election made or changed that would be Material to the Company or any
\n of its tax attributes or any settlement or compromise of any Material tax
\n audit.<\/p>\n
(j) LITIGATION; REGULATORY ACTION. There are no material civil,
\n criminal, or administrative actions, suits or litigation, proceedings,
\n investigations or controversies (“LITIGATION”) before any court, arbitrator,
\n mediator, or Governmental Authority pending against or involving the Company
\n or any of its Subsidiaries, and, to the Company’s knowledge, no such
\n Litigation has been threatened.<\/p>\n
(k) COMPLIANCE WITH LAWS. Each of the Company and its Subsidiaries:<\/p>\n
(i) in the conduct of business is in compliance with all applicable
\n federal, state, local and foreign statutes, laws, regulations,
\n ordinances, rules, judgments, orders or decrees applicable thereto
\n except, in each case, as could not, individually or in the aggregate,
\n reasonably be expected to have a Material Adverse Effect on the Company;<\/p>\n
(ii) has all permits, licenses, authorizations, orders and approvals
\n of, and has made or obtained all filings, notices, applications,
\n consents, registrations or permits with, to or of all Governmental
\n Authorities that are required in order to permit it to own and operate
\n its businesses as presently conducted; and all such permits, licenses,
\n authorizations, orders and approvals are in full force and effect and, to
\n the Company’s knowledge, no suspension or cancelation of any of them is
\n threatened or reasonably likely; and all such filings, applications and
\n registrations are current, except, in each of the foregoing cases, any
\n permits, licenses, authorizations, orders, approvals, filings, notices,
\n applications, consents, registrations, or<\/p>\n
18<\/p>\n
permits the lack of which could not, individually or in the aggregate,
\n reasonably be expected to have a Material Adverse Effect on the Company.<\/p>\n
(l) VOTE REQUIRED. The Company Requisite Vote is the only vote of the
\n holders of any class or series of the Company capital stock necessary to
\n adopt this Agreement and approve the transactions contemplated hereby.<\/p>\n
(m) BROKERS; FINANCIAL OPINION. (i) None of the Company or its Subsidiaries,
\nor any of their directors, officers or employees, has employed any broker or
\nfinder, or incurred any broker’s or finder’s commissions or fees, in connection
\nwith the transactions contemplated hereby, except that the Company has engaged
\nDonaldson, Lufkin & Jenrette Securities Corporation (“DLJ”) as its financial
\nadvisors, the arrangements with which have been provided to Parent.<\/p>\n
(ii) The Company has received the oral opinion (to be subsequently
\n confirmed in writing) of DLJ, on or prior to the date of this Agreement,
\n to the effect that, subject to certain qualifications and limitations
\n stated by DLJ, as of the date of such opinion, the consideration to be
\n received by the holders of Company Shares in the Offer and the Merger is
\n fair from a financial point of view to such holders (other than Parent
\n and its affiliates).<\/p>\n
(n) EMPLOYEE BENEFIT PLANS.<\/p>\n
(i) The Company Disclosure Schedule contains a complete list of all
\n material bonus, vacation, deferred compensation, severance, pension,
\n retirement, profit-sharing, thrift, savings, employee stock ownership,
\n stock bonus, stock purchase, restricted stock and stock option plans, all
\n employment, change-in-control, severance, consulting, employee loan, or
\n similar agreements or contracts, all medical, dental, disability, health
\n and life insurance plans, all other employee benefit and fringe benefit
\n plans, contracts or arrangements, whether written or oral and whether or
\n not legally binding, maintained, sponsored, contributed to or required to
\n be contributed to by the Company or any of its Subsidiaries for the
\n benefit of any Employee or the beneficiaries of any Employee, or pursuant
\n to which the Company or any of its Subsidiaries may have any material
\n liability (collectively, the “COMPANY COMPENSATION AND BENEFIT PLANS”).<\/p>\n
(ii) True and complete copies of the Company Compensation and Benefit
\n Plans, including, any trust instruments and\/or insurance contracts, if
\n any, forming a part thereof, and all amendments thereto have been
\n supplied to Parent. Neither the Company nor any of its Subsidiaries has
\n any plan or commitment whether legally binding or not, to establish any
\n new Company Compensation and Benefit Plan or to modify or to terminate
\n any Company Compensation and Benefit Plan (except as required by this
\n Agreement or as may be necessary to ensure compliance with the qualifying
\n requirements imposed by the Code).<\/p>\n
(iii) Each of the Company Compensation and Benefit Plans has in all
\n material respects been administered in accordance with the terms thereof
\n and all applicable law. Each Company Compensation and Benefit Plan which
\n is an “employee pension benefit plan” within the meaning of Section 3(2)
\n of ERISA (each such plan, a “PENSION PLAN”) and which is intended to be
\n qualified under Section 401(a) of the Code is so qualified and has
\n received a favorable determination letter from the IRS, and the Company
\n is not aware of any circumstances which could result in the revocation or
\n denial of any such favorable determination letter. No Pension Plan is
\n subject to Title IV of ERISA or Section 412 of the Code and neither the
\n Company, nor any of its Subsidiaries nor any ERISA Affiliate of the
\n Company or any of its Subsidiaries has at any time sponsored, maintained,
\n contributed to or been required to contribute to any employee pension
\n benefit plan subject to Title IV of ERISA or Section 412 of the Code. No
\n “prohibited transaction,” within the meaning of Section 4975 of the Code
\n or Section 406 of ERISA, has occurred with respect to any Company
\n Compensation and Benefit Plan that is not<\/p>\n
19<\/p>\n
exempt from such provisions of the Code or ERISA pursuant to
\n Section 4975 of the Code or Section 404 of ERISA. Except as previously
\n disclosed in the Company Disclosure Schedule, there is no pending or, to
\n the Company’s knowledge, threatened litigation or governmental audit,
\n examination or investigation relating to the Company Compensation and
\n Benefit Plans.<\/p>\n
(iv) Neither the Company nor any of its Subsidiaries has at any time
\n had any ERISA Affiliates (other than the Company or any of its
\n Subsidiaries). For purposes of this Agreement, the term “ERISA AFFILIATE”
\n means, with respect to any Person, each business or entity which is a
\n member of a “controlled group of corporations,” under “common control” or
\n an “affiliate service group” with such Person within the meaning of
\n Section 414(b), (c) or (m) of the Code, or is under “common control” with
\n such Person, within the meaning of Section 4001(a)(14) of ERISA.<\/p>\n
(v) All contributions, premiums and payments required to be made
\n under the terms of any Company Compensation and Benefit Plan have been
\n made.<\/p>\n
(vi) Neither the Company nor any of its Subsidiaries (A) maintains or
\n contributes to any Company Compensation and Benefit Plan which provides,
\n or has any liability to provide, life insurance, medical, severance or
\n other employee welfare benefits to any Employee upon his or her
\n retirement or termination of employment or service, except as may be
\n required by Section 4980B of the Code; or (B) has ever represented,
\n promised or contracted (whether in oral or written form) to any Employee
\n (either individually or to employees as a group) that such Employee(s)
\n would be provided with life insurance, medical, severance or other
\n employee welfare benefits upon their retirement or termination of
\n employment or service, except to the extent required by Section 4980B of
\n the Code.<\/p>\n
(vii) The execution of, and performance of the transactions
\n contemplated in, this Agreement will not (either alone or upon the
\n occurrence of any additional or subsequent events) (A) constitute an
\n event under any Company Compensation and Benefit Plan, trust or loan that
\n will or may result in any payment (whether of severance pay or
\n otherwise), acceleration, forgiveness of indebtedness, deemed
\n satisfaction of goals or conditions, vesting, distribution, increase in
\n benefits or obligation to fund benefits with respect to any Employee,
\n (B) result in the triggering or imposition of any restrictions or
\n limitations on the right of the Company, any of its Subsidiaries or the
\n Surviving Corporation to amend or terminate any Company Compensation and
\n Benefit Plan and receive the full amount of any excess assets remaining
\n or resulting from such amendment or termination, subject to applicable
\n taxes, or (C) result in any payment or benefit that will or may be made
\n by the Company, any of its Subsidiaries, the Surviving Corporation or any
\n of their respective affiliates that will be characterized as an “excess
\n parachute payment,” within the meaning of Section 280G(b)(1) of the Code.<\/p>\n
(viii) Each of the Company and its Subsidiaries (A) is in compliance
\n in all material respects with all applicable federal, state and local
\n laws, rules and regulations respecting employment, employment practices,
\n labor, terms and conditions of employment and wages and hours, in each
\n case, with respect to any Employee; (B) has withheld all amounts required
\n by law or by agreement to be withheld from the wages, salaries and other
\n payments to Employees; (C) is not liable for any arrears of wages or any
\n taxes or any penalty for failure to comply with any of the foregoing; and
\n (D) except for liabilities arising in the ordinary course of business, is
\n not liable for any payment to any trust or other fund or to any
\n governmental or administrative authority, with respect to unemployment
\n compensation benefits, social security or other benefits for Employees.<\/p>\n
(ix) The contributions of the Company and any of its Subsidiaries to
\n any trust described in Section 501(c)(9) of the Code have complied in all
\n respects with Section 419A of the Code.<\/p>\n
20<\/p>\n
(x) There is no commitment covering any Employee that, individually
\n or in the aggregate, would be reasonably likely to give rise to the
\n payment of any amount that would result in a loss of tax deduction
\n pursuant to Section 162(m) of the Code.<\/p>\n
(o) LABOR RELATIONS. Each of the Company and its Subsidiaries is in
\n compliance with all currently applicable laws respecting employment
\n including, without limitation, the Immigration Reform and Control Act, the
\n Worker Adjustment and Retraining Notification Act, any such laws respecting
\n employment discrimination, disability rights or benefits, equal opportunity,
\n plant closure issues, affirmative action, workers’ compensation, employee
\n benefits, severance payments, labor relations, employee leave issues, wage
\n and hour standards, occupational safety and health requirements and
\n unemployment insurance and related matters, other than any requirements
\n where any noncompliance could not, individually or in the aggregate,
\n reasonably be expected to be material to the Company. Neither the Company
\n nor any of its Subsidiaries is a party to, is negotiating or is bound by any
\n collective bargaining agreement, contract or other agreement or
\n understanding with a labor union or labor organization, nor is the Company
\n or any of its Subsidiaries the subject of a proceeding asserting that the
\n Company or any such Subsidiary has committed an unfair labor practice
\n (within the meaning of the National Labor Relations Act) or seeking to
\n compel it or such Subsidiary to bargain with any labor organization as to
\n wages and conditions of employment, nor is there any strike or other labor
\n dispute involving the Company or any of its Subsidiaries pending or, to its
\n knowledge, threatened, nor is it aware of any activity involving the
\n Company’s or any of its Subsidiaries’ employees seeking to certify a
\n collective bargaining unit or engaging in any other organization activity.<\/p>\n
(p) TAX MATTERS.<\/p>\n
(i) All Tax Returns required to be filed by the Company or its
\n Subsidiaries either on a separate or combined or consolidated basis on or
\n prior to the Effective Time have been or will be prepared in good faith
\n and timely filed with the appropriate Governmental Authority on or prior
\n to the Effective Time or by the due date thereof including extensions,
\n except where the failure to file such Tax Returns could not reasonably be
\n expected to be material to the Company. All such Tax Returns are (or, as
\n to Tax Returns not filed on the date hereof, will be) complete and
\n accurate in all material respects.<\/p>\n
(ii) All Taxes required to be paid (whether or not shown as due on
\n the Tax Returns) either (i) have been fully paid (except with respect to
\n matters contested in good faith as set forth in the Company Disclosure
\n Schedule) or (ii) are adequately reflected as a liability on the
\n Company’s or its Subsidiaries’ books and records. Except for an
\n immaterial amount of Taxes, all Taxes required to be collected or
\n withheld from third parties have been collected or withheld.<\/p>\n
(iii) With respect to any period for which Tax Returns have not yet
\n been filed, or for which Taxes are not yet due or owing, the Company and
\n its Subsidiaries have made, in accordance with past practice and custom,
\n due and sufficient accruals for such Taxes in their respective books and
\n records and financial statements.<\/p>\n
(iv) The Company and getthere Limited, and to the knowledge of the
\n Company, its Subsidiaries other than getthere Limited, have not waived
\n any statute of limitations, or agreed to any extension of time, with
\n respect to federal income or state Taxes or a Tax assessment or
\n deficiency.<\/p>\n
(v) As of this date, (i) there are not pending or, to the knowledge
\n of the Company, threatened, any audits, examinations, investigations or
\n other proceedings in respect of Taxes or Tax matters and (ii) there are
\n not any unresolved questions or claims concerning the<\/p>\n
21<\/p>\n
Company’s or any of its Subsidiaries’ Tax liability that were raised by
\n any Taxing Authority in a communication to the Company or any Subsidiary.<\/p>\n
(vi) The Company has made available to Parent correct and complete
\n copies of the United States federal income and all state income or
\n franchise and sales or use Tax Returns filed by the Company for each of
\n its fiscal years ended on or about December 31, 1995, 1996, 1997 and
\n 1998.<\/p>\n
(vii) The Company has made available to Parent correct and complete
\n copies of the United States federal income and all state income or
\n franchise and sales or use Tax Returns filed by each Subsidiary in the
\n possession of the Company.<\/p>\n
(viii) The Company has not distributed the stock of a “controlled
\n corporation” (within the meaning of that term as used in section 355(a)
\n of the Code) in a transaction subject to section 355 of the Code within
\n the past two years.<\/p>\n
(ix) None of the Company and its Subsidiaries currently is the
\n beneficiary of any extension of time within which to file any Tax Return.<\/p>\n
(x) No claim has ever been made in writing by an authority in a
\n jurisdiction where any of the Company and its Subsidiaries does not file
\n Tax Returns that it is or may be subject to taxation by that
\n jurisdiction, nor is the Company aware of any facts that would give rise
\n to such a claim.<\/p>\n
(xi) The Company Disclosure Schedule lists all federal, state, local
\n and foreign Tax Returns filed with respect to any of the Company and its
\n Subsidiaries for taxable periods ending on or after January 31, 2000,
\n indicates those Tax Returns of the Company that have been audited, and
\n indicates those Tax Returns of the Company and its Subsidiaries that
\n currently are subject of an audit.<\/p>\n
(xii) None of the Company and its Subsidiaries is a party to any Tax
\n allocation or sharing agreement.<\/p>\n
(xiii) As of January 31, 2000, the net operating loss carryforward of
\n the Company and its Subsidiaries for federal income Tax purposes was not
\n less than $40,000,000, and except as set forth in the Company Disclosure
\n Schedule, the Company and its Subsidiaries are not subject to any
\n limitations (e.g. Sections 382 and 384 of the Code or under the
\n consolidated return regulations pursuant to Section 1502 of the Code or
\n similar provisions of state laws affecting such net operating loss
\n carryforwards for state income tax or state franchise tax purposes) on
\n its ability to use the net operating loss carryforward other than those
\n that may arise as a result of the transactions contemplated by this
\n Agreement.<\/p>\n
(xiv) The Company Disclosure Schedule lists, as of January 31, 2000,
\n all net operating loss carryforwards of the Company for state income tax
\n or state franchise tax purposes.<\/p>\n
(q) INTELLECTUAL PROPERTY.<\/p>\n
(i) Each item of Company Intellectual Property owned by the Company
\n or its Subsidiaries that is a patent, patent application, trademark,
\n trademark application, service mark, service mark application, logo,
\n trade name, domain name, corporate name, copyright registration,
\n copyright application, mask work registration, or mask work application
\n is set forth on the Company Disclosure Schedule.<\/p>\n
(ii) The Company and its Subsidiaries possess all right, title and
\n interest in and to the Company Intellectual Property owned by the Company
\n or its Subsidiaries that is material to the business of the Company, free
\n and clear of any Liens, and have the right to require the applicant of
\n any Company Intellectual Property of the Company, its Subsidiaries, or
\n its<\/p>\n
22<\/p>\n
Employees that is material to the business of the Company that is an
\n application, including but not limited to patent applications, trademark
\n applications, service mark applications, copyright applications, or mask
\n work applications, to transfer ownership to the Company or its
\n Subsidiaries of the application and of the registration once it issues.
\n All registered patents, trademarks, service marks and copyrights listed
\n on the Company Disclosure Schedule that are material to the business of
\n the Company are valid and subsisting and in full force and effect.<\/p>\n
(iii) The Company and its Subsidiaries have obtained valid and
\n effective assignments from all of their employees, former employees,
\n independent contractors and former independent contractors (collectively
\n defined herein as “ORIGINATORS”) of all of such Originators’ rights in
\n any Intellectual Property developed by such Originators while employed by
\n or under contract with the Company and its Subsidiaries, except where any
\n failure to obtain such assignments could not reasonably be expected to be
\n material to the Company and its Subsidiaries, taken as a whole.<\/p>\n
(iv) The Company or its Subsidiaries own or have the right to use all
\n Company Intellectual Property that is necessary for the ownership,
\n maintenance and operation of the Company’s and its Subsidiaries’
\n properties and assets and the conduct of the Company’s and its
\n Subsidiaries’ businesses as they have been and are currently conducted;
\n and the Company and its Subsidiaries have the right to use all of the
\n Company Intellectual Property in all jurisdictions in which the Company
\n and its Subsidiaries have conducted or presently conduct their
\n businesses; and the consummation of the transactions contemplated hereby
\n will not alter or impair any such rights in any manner that could
\n reasonably be expected to be material to the Company and its
\n Subsidiaries, taken as a whole.<\/p>\n
(v) To the knowledge of the Company, the Company owns or has the
\n right to use all of the Intellectual Property that the Company reasonably
\n believes is necessary for the conduct of the businesses set forth on
\n Section 5.01(a)(ii)(A) of the Company’s Disclosure Schedule.<\/p>\n
(vi) To the Company’s knowledge, the Company and its Subsidiaries
\n have not, and the continued operation of the businesses as presently
\n conducted will not interfere with, infringe upon, misappropriate or
\n otherwise come into conflict with any Intellectual Property rights of
\n third parties, and the Company or its Subsidiaries have not received any
\n charge, complaint, claim, demand or notice so alleging (including any
\n claim that the Company and its Subsidiaries must license or refrain from
\n using any Intellectual Property rights of any third party).<\/p>\n
(vii) To the Company’s knowledge, no third party has interfered with,
\n infringed upon, misappropriated or otherwise come into conflict with any
\n Company Intellectual Property in any manner that could reasonably be
\n expected to have a Material Adverse Effect on the Company.<\/p>\n
(viii) No action, suit, proceeding, hearing, investigation, charge,
\n complaint, claim or demand has been made, is pending, or, to the
\n knowledge of the Company, is threatened which challenges the legality,
\n validity, enforceability, use or ownership of any Company Intellectual
\n Property owned by the Company that is material to the business of the
\n Company.<\/p>\n
(ix) To the Company’s knowledge, no action, suit, proceeding,
\n hearing, investigation, charge, complaint, claim or demand has been made,
\n is pending or is threatened, which challenges the legality, validity,
\n enforceability, use or ownership of any Company Intellectual Property
\n owned by a Person other than the Company or its Subsidiaries.<\/p>\n
(r) NO TERMINATION OF BUSINESS RELATIONSHIP. As of the date hereof, none
\n of the Persons that are parties to the Contracts listed on Section 4.02(r)
\n of the Company Disclosure Schedule with which the Company or any Subsidiary
\n has a material business relationship has given notice in<\/p>\n
23<\/p>\n
writing of any intention to cancel or otherwise terminate, prior to the end
\n of the applicable Contract term, its Contract with the Company or any
\n Subsidiary and, to the knowledge of the Company as of the date hereof, no
\n event has occurred or failed to occur which (i) would, to the knowledge of
\n the Company as of the date hereof, precipitate the cancelation or
\n termination of such Contract or (ii) would entitle any such entity or
\n customer to terminate such Contract.<\/p>\n
(s) CONTRACTS. (i) Set forth in the Company Disclosure Schedule is a
\n true and complete list of the following Contracts, whether written or oral,
\n entered into by either the Company or any of its Subsidiaries, as of the
\n date hereof:<\/p>\n
(A) Global Manager Agreements that are material to the business of the
\n Company;<\/p>\n
(B) ePartner Agreements that are material to the business of the
\n Company;<\/p>\n
(C) Content Delivery Agreements;<\/p>\n
(D) FlightRez Agreements that are material to the business of the
\n Company;<\/p>\n
(E) Contracts in respect of any joint venture, partnership or other
\n similar arrangement (including, without limitation, any joint development
\n agreement), other than Contracts referred to in the preceding paragraphs
\n (A) through (D) whether or not required to be scheduled;<\/p>\n
(F) Contracts through which the Company committed to issue Warrants
\n after the date hereof if certain terms or milestones are achieved;<\/p>\n
(G) Contracts under which the Company or any Subsidiary may have an
\n obligation to or has agreed to reimburse any Person for amounts in excess of
\n $25,000 received by the Company or such Subsidiary in the event certain
\n milestones or minimum requirements are not achieved;<\/p>\n
(H) Contracts relating to the acquisition by the Company or any
\n Subsidiary of any operating business or the capital stock of any other
\n Person that have not been consummated or that have been consummated but
\n contain warranties, representations, covenants, guaranties, indemnities or
\n other obligations that remain in effect;<\/p>\n
(I) Contracts relating to joint defense, settlement, compromise or other
\n actions or restrictions on actions by the Company that would materially
\n affect the Company’s position with respect to any pending, or to the
\n knowledge of the Company, threatened litigation by or against the Company;<\/p>\n
(J) Contracts (or group of related Contracts) relating to the purchase
\n of supplies, products, goods, or services if the termination of any such
\n Contract could individually or in the aggregate reasonably be expected to
\n have a Material Adverse Effect on the Company;<\/p>\n
(K) Contracts relating to the lending or borrowing of money or other
\n indebtedness for borrowed money in excess of $75,000 or pursuant to which
\n the Company or any of its Subsidiaries’ assets are or may become subject to
\n a lien, charge, mortgage or other encumbrance;<\/p>\n
(L) Contracts under which the Company or any Subsidiary has agreed to
\n indemnify any person for in excess of $2 million, except for indemnification
\n obligations incurred in the ordinary course of business, it being understood
\n that business interruption is not in the ordinary course, and except those
\n contracts already set forth on the Company Disclosure Schedule pursuant to
\n clauses (A) through (K) above;<\/p>\n
(M) Contracts that contain non-competition, exclusivity or other similar
\n provisions that would materially limit, impair or restrict the ability of
\n the Company, the Surviving Corporation or any of their Subsidiaries to do
\n business in any line of business or in any geographical area or with any
\n person;<\/p>\n
24<\/p>\n
(N) Contracts relating to advertising arrangements, except those
\n contracts terminable (other than in the case of default by a party thereto)
\n on 90 days’ or less notice without any penalty and those involving receipt
\n or payment of less than $75,000 in any year;<\/p>\n
(O) Contracts pursuant to which the Company accesses the global
\n distribution system operated by another entity;<\/p>\n
(P) Contracts pursuant to which the Company or any Subsidiary leases,
\n subleases or otherwise has the right to use any real property;<\/p>\n
(Q) Contracts with any Employee of the Company or consultant relating to
\n severance, bonus or similar arrangements that become operative in connection
\n with or as a result of the Merger; and<\/p>\n
(R) Contracts (other than those specified in any of clauses (A) through
\n (Q) of this clause (i)) if the termination of such Contract could reasonably
\n be expected to have a Material Adverse Effect on the Company (individually,
\n a “MATERIAL CONTRACT”, and collectively, the “Material Contracts”) (all
\n Contracts required to be listed in clauses (A) through (R) are collectively,
\n the “DISCLOSED CONTRACTS”).<\/p>\n
(ii) Unless precluded by an applicable confidentiality agreement or
\n except as specified in the Company Disclosure Schedule, true and complete
\n copies of all Disclosed Contracts listed on the Company Disclosure
\n Schedule have been made available to Parent. All of the Disclosed
\n Contracts referred to in the preceding paragraph (i) clauses (A) through
\n (R) are, and after giving effect to the Merger will be, legal, valid,
\n binding, in full force and effect and enforceable in accordance with
\n their terms against the Company, or the applicable Subsidiary (as the
\n case may be), and, to the knowledge of the Company, against the
\n respective counterparties to such Disclosed Contracts subject to (x) the
\n Bankruptcy and Equity Exception and (y) obtaining the consent of the
\n other party to such Disclosed Contract in connection with the Merger.
\n None of the Company or any of its Subsidiaries or, to the knowledge of
\n the Company as of the date hereof, any other party, is in breach,
\n violation or default under any Disclosed Contract listed or required to
\n be listed on the Company Disclosure Schedule where such breach, violation
\n or default could reasonably be expected to have a Material Adverse Effect
\n on the Company. To the knowledge of the Company, no event exists which,
\n with notice or lapse of time or both, would constitute a material breach,
\n violation or default, or give rise to any material lien, charge or
\n encumbrance or right of termination, modification, cancelation,
\n prepayment, suspension, limitation, revocation or acceleration, under any
\n Disclosed Contract listed or required to be listed on the Company
\n Disclosure Schedule.<\/p>\n
(t) INSURANCE. The Company and each Subsidiary maintain in full force
\n and effect insurance with responsible and reputable insurance companies or
\n associations in such amounts, on such terms, with such deductibles, and
\n covering such risks (including fire, casualty, and liability), as is
\n consistent with industry practice. There is no material default with respect
\n to any provision contained in any insurance policy, nor has the Company or
\n any Subsidiary failed to give any notice or present any claim under any such
\n policy in due and timely fashion. All premiums due and payable with respect
\n to the insurance policies have been paid. All such policies are in full
\n force and effect. Neither the Company nor any Subsidiary has failed to give
\n any notice or present any claim under any such insurance policy in due and
\n timely fashion or as required by any of such insurance policies or has
\n otherwise, through any act, omission or non-disclosure, jeopardized or
\n impaired full recovery of any claim under such policies, and there are no
\n claims by the Company or any Subsidiary under any of such policies to which
\n any insurance company is denying liability or defending under a reservation
\n of rights or similar clause. No notice of cancelation or non-renewal of any
\n such policy has been received by the Company or any Subsidiary.<\/p>\n
25<\/p>\n
(u) ENVIRONMENTAL. Except as could not individually or in the aggregate
\n reasonably be expected to have a Material Adverse Effect on the Company,
\n (i) the Company and its Subsidiaries are in compliance with all applicable
\n Environmental Laws, have obtained, and are in material compliance with, all
\n permits, licenses, authorizations, registrations and other governmental
\n consents required by applicable Environmental Laws (“ENVIRONMENTAL
\n PERMITS”), and have made all appropriate filings for issuance or renewal of
\n such Environmental Permits; (ii) to the knowledge of the Company, there is
\n no material contamination of, and there have been no material releases or
\n threatened releases of Hazardous Substances at, any real property owned,
\n leased or operated by the Company, or any of its Subsidiaries, and
\n (iii) there are no civil, criminal or administrative actions, suits or
\n proceedings pending against the Company before any court or Governmental
\n Authority or, to the knowledge of the Company, threatened against the
\n Company that are based on or related to any Environmental Matters.<\/p>\n
4.03 REPRESENTATIONS AND WARRANTIES OF PARENT. Except as specifically
\ndisclosed in the Parent SEC Documents or in the Parent Disclosure Schedule
\nreferencing the specific Section, Parent hereby represents and warrants to the
\nCompany as follows:<\/p>\n
(a) DUE ORGANIZATION, GOOD STANDING AND CORPORATE POWER.<\/p>\n
(i) Parent is a corporation duly organized, validly existing and in
\n good standing under the laws of the jurisdiction of its incorporation and
\n has all requisite corporate power and authority to own, lease and operate
\n its properties and to carry on its business as now being conducted.
\n Parent is duly qualified or licensed to do business and is in good
\n standing in each jurisdiction in which the property owned, leased or
\n operated by it or the nature of the business conducted by it makes such
\n qualification necessary, except in such jurisdictions where the failure
\n to be so qualified or licensed and in good standing could not reasonably
\n be expected to, individually or in the aggregate, have a Material Adverse
\n Effect on Parent.<\/p>\n
(ii) Merger Sub is a corporation duly organized, validly existing and
\n in good standing under the laws of the jurisdiction of its incorporation
\n and has all requisite corporate power and authority to own, lease and
\n operate its properties and to carry on its business as now being
\n conducted, except where the failure to be so organized, existing and in
\n good standing or to have such power and authority could not reasonably be
\n expected to, individually or in the aggregate, have a Material Adverse
\n Effect on Parent. Merger Sub is duly qualified or licensed to do business
\n and is in good standing in each jurisdiction in which the property owned,
\n leased or operated by it or the nature of the business conducted by it
\n makes such qualification necessary, except in such jurisdictions where
\n the failure to be so qualified or licensed and in good standing could not
\n reasonably be expected, individually or in the aggregate, to have a
\n Material Adverse Effect on Parent.<\/p>\n
(b) CORPORATE AUTHORITY AND ACTION. Parent and Merger Sub each have the
\n requisite corporate power and authority, and have taken all corporate action
\n necessary, in order to authorize the execution and delivery of, and
\n performance of their respective obligations under, this Agreement and to
\n consummate the Merger. This Agreement is a valid and binding agreement of
\n Parent and Merger Sub, enforceable in accordance with its terms, subject to
\n the Bankruptcy and Equity Exception.<\/p>\n
(c) GOVERNMENTAL FILINGS; NO VIOLATIONS. Other than those filings and\/or
\n notices made (i) pursuant to Section 3.02, (ii) under the HSR Act, the
\n Exchange Act and the Securities Act, (iii) under the rules and regulations
\n of the NYSE and (iv) such other filings and\/or notices as to which any
\n failure to file such filings or notices could not be reasonably expected to
\n be material to Parent, no notices, reports, applications or other filings
\n are required to be made by Parent or Merger Sub with, nor are any consents,
\n registrations, approvals, permits or authorizations required to be obtained
\n by either of them from, any Governmental Authority in connection with the<\/p>\n
26<\/p>\n
execution and delivery of this Agreement by Parent and by Merger Sub and the
\n consummation by Parent and Merger Sub of the Merger and the other
\n transactions contemplated hereby. The making or obtaining of all filings,
\n notices, applications, consents, registrations, approvals, permits or
\n authorizations with or of any relevant Governmental Authority with respect
\n to the Merger and the other transactions contemplated hereby, the execution,
\n delivery and performance of this Agreement, and the consummation of the
\n Merger and other transactions contemplated hereby, does not and will not
\n (1) constitute a breach or violation of, or a default under, any law, rule
\n or regulation or any judgment, decree, order, governmental or
\n non-governmental permit or license, or any Contract of it or to which Parent
\n or its properties are subject or bound, (2) constitute a breach or violation
\n of, or a default under, the Constitutive Documents of Parent or Merger Sub,
\n or (3) require any consent or approval under any such law, rule, regulation,
\n judgment, decree, order, governmental permit or license, or the consent or
\n approval of any other party to any such Contract except, in the case of
\n clauses (1) and (3), as could not individually or in the aggregate,
\n reasonably be expected to have a Material Adverse Effect on the Parent.<\/p>\n
(d) OFFER DOCUMENTS; COMPANY PROXY STATEMENT; SCHEDULE 14D-9. None of
\n the Offer Documents, the Schedule TO or the State Filings nor any
\n information supplied by Parent or Merger Sub for inclusion in the
\n Schedule 14D-9 will, at the time the Offer Documents, the Schedule TO, the
\n State Filings, the Schedule 14D-9 or any amendments or supplements thereto,
\n are filed with the SEC or any applicable state authority or are first
\n published, sent or given to stockholders of the Company, as the case may be,
\n contain any untrue statement of a material fact or omit to state any
\n material fact required to be stated therein or necessary in order to make
\n the statements made therein, in the light of the circumstances under which
\n they are made, not misleading. The information supplied by Parent and Merger
\n Sub for inclusion in the letter to stockholders, notice of meeting, proxy
\n statement and form of proxy, or the information statement, as the case may
\n be, to be distributed to stockholders in connection with the Merger, or any
\n schedule required to be filed with the SEC in connection therewith
\n (collectively, the “COMPANY PROXY STATEMENT”), will not, on the date the
\n Company Proxy Statement (or any amendment or supplement thereto) is first
\n mailed to stockholders of the Company, contain any untrue statement of a
\n material fact or omit to state any material fact required to be stated
\n therein or necessary in order to make the statements therein, in the light
\n of the circumstances under which they are made, not misleading, or shall, at
\n the time of the Company Shareholders Meeting, omit to state any material
\n fact necessary to correct any statement in any earlier communication with
\n respect to the solicitation of proxies for the Company Shareholder Meeting
\n which shall have become false or misleading. Notwithstanding the foregoing,
\n Parent and Merger Sub make no representation or warranty with respect to any
\n information supplied by or on behalf of the Company which is contained in
\n any of the Offer Documents, the Schedule TO, the State Filings, the Company
\n Proxy Statement or any amendment or supplement thereto. The Offer Documents
\n and the Schedule TO shall comply as to form in all material respects with
\n the requirements of the Exchange Act and the rules and regulations
\n thereunder.<\/p>\n
ARTICLE V
\n ACTIONS PENDING THE EFFECTIVE TIME<\/p>\n
5.01 FORBEARANCES OF THE COMPANY. Except as set forth in the Company’s
\nDisclosure Schedule or as expressly contemplated by this Agreement (including
\nSection 8.04), without the prior written consent of Parent (such consent not to
\nbe unreasonably withheld or delayed), during the period from the date<\/p>\n
27<\/p>\n
of this Agreement to the Effective Time, the Company will not, and will cause
\neach of its Subsidiaries not to:<\/p>\n
(a) ORDINARY COURSE.<\/p>\n
(i) Conduct the business of the Company and its Subsidiaries other
\n than in the ordinary and usual course, or fail to use reasonable efforts
\n to preserve intact its business organizations and assets and maintain its
\n rights, franchises and existing relations with clients, customers,
\n suppliers, employees and business associates.<\/p>\n
(ii) (A) enter into any new line of business, (B) incur or commit to
\n any capital expenditures or (C) otherwise engage in any practice, take
\n any action, or enter into any transaction which would cause any
\n representation or warranty set forth in Section 4.02 (i) to be untrue in
\n any material respect.<\/p>\n
(b) CAPITAL STOCK. Issue, sell or otherwise permit to become
\n outstanding, or authorize the creation of, any additional shares of capital
\n stock of the Company or any of its Subsidiaries (other than issuances or
\n sales by a Subsidiary to the Company or a wholly-owned Subsidiary of the
\n Company) or any Rights in respect thereof (including any rights issued under
\n any stockholders rights plan or similar plan), or enter into any agreement
\n with respect to the foregoing other than (i) pursuant to Rights that are
\n described in Section 4.02(b)(ii), (ii) grants of options and stock purchase
\n rights to employees or replacements of executive officers (but no other
\n executive officers), under existing Company Shares Plans in the ordinary
\n course of business which (A) have vesting and termination provisions that
\n are consistent with past practice, but no more advantageous than, those
\n vesting and termination provisions provided in the Company’s current forms
\n of option agreements and (B) have an exercise price not less than fair
\n market value.<\/p>\n
(c) DIVIDENDS, ETC. (i) Declare, set aside for payment or pay any
\n dividend or other distribution (whether in cash, stock or property) on or in
\n respect of, or declare or make any distribution on, any shares of capital
\n stock of the Company or any of its Subsidiaries, other than dividends and
\n distributions from direct or indirect wholly-owned Subsidiaries of the
\n Company to the Company or another direct or indirect wholly-owned Subsidiary
\n of the Company, or (ii) directly or indirectly adjust, split, combine,
\n redeem, reclassify, purchase or otherwise acquire, any shares of its capital
\n stock.<\/p>\n
(d) COMPENSATION; EMPLOYMENT AGREEMENTS; ETC.<\/p>\n
(i) Hire or otherwise enter into any arrangement with any executive
\n officer or (ii) enter into, amend, modify or renew any employment,
\n consulting, severance or similar contract with any Employee (other than
\n an employee hired on an “at will” basis, who may be terminated by the
\n Company on no more than 30 days’ notice without penalty), or grant any
\n salary or wage increase or increase any employee benefit (including
\n incentive or bonus payments), except (A) for normal individual increases
\n in compensation to employees in the ordinary course of business
\n consistent with past practice, (B) for other changes that are required by
\n applicable law, (C) to satisfy contractual obligations that are existing
\n as of the date hereof, (D) in connection with the engagement of
\n independent contractors, consultants or new hires of employees or
\n replacements of executive officers (but no other executive officers) in
\n the ordinary course of business and (E) for arrangements specifically
\n contemplated by this Agreement.<\/p>\n
(e) BENEFIT PLANS. Enter into, establish, adopt or amend (except as may
\n be required by applicable law or this Agreement) any pension, retirement,
\n stock option, stock purchase, savings, profit sharing, deferred
\n compensation, change in control, severance, consulting, bonus, group
\n insurance or other employee benefit, incentive or welfare contract, plan or
\n arrangement, or any<\/p>\n
28<\/p>\n
trust agreement (or similar arrangement) related thereto, in respect of any
\n director, officer or employee of the Company or any of its Subsidiaries.<\/p>\n
(f) NO REORGANIZATIONS OR DISPOSITIONS. The Company shall not, and shall
\n not permit any Subsidiary to, adopt a plan or agreement of complete or
\n partial liquidation, dissolution, merger, consolidation, restructuring,
\n recapitalization or other reorganization of the Company or any of its
\n Subsidiaries or sell, lease, encumber or otherwise dispose of, or agree to
\n sell, lease, encumber or otherwise dispose of, any of its assets (including
\n capital stock of Subsidiaries), except in the ordinary course of business,
\n consistent with past practices, or as contemplated by this Agreement.<\/p>\n
(g) NO ACQUISITIONS OR JOINT VENTURES. The Company shall not, and shall
\n not permit any of its Subsidiaries to, acquire or agree to acquire by
\n merging or consolidating with, or by purchasing a substantial equity
\n interest in or a substantial portion of the assets of, or by any other
\n manner, any business or any corporation, partnership, association or other
\n business organization or division thereof or otherwise acquire or agree to
\n acquire any assets (other than the acquisition of assets used in the
\n operations of the business of the Company and its Subsidiaries in the
\n ordinary course). Except in the ordinary course of business consistent with
\n past practice, the Company shall not, and shall not permit any of its
\n Subsidiaries to, enter into, or agree to enter into any joint venture or
\n partnership, or any discussions with respect to any joint venture or
\n partnership.<\/p>\n
(h) CONSTITUTIVE DOCUMENTS. Amend the Constitutive Documents of the
\n Company or any of its Subsidiaries.<\/p>\n
(i) ACCOUNTING METHODS; INCOME TAX ELECTIONS; TAX RETURNS. Except as
\n disclosed in the Company SEC Documents filed prior to the date of this
\n Agreement and except as required by changes in GAAP as concurred in by the
\n Company’s independent auditors, the Company shall not change its methods of
\n accounting in effect at January 31, 2000. The Company shall not (i) change
\n its fiscal year or (ii) make any material Tax election, other than in the
\n ordinary course of business consistent with past practice, without the
\n consent of Parent. The Company shall prepare and file all Tax Returns
\n required to be filed and pay all required Taxes due in accordance with
\n applicable law.<\/p>\n
(j) CLAIMS. Settle any material claim, action or proceeding, except for
\n any such claim, action or proceeding involving solely money damages where,
\n if the relevant litigation has been the subject of a reserve, the amount
\n paid or to be paid in settlement or compromise does not exceed such reserve,
\n and, in any case, the relevant litigation is not reasonably likely to
\n establish an adverse precedent that would be material to the Company’s
\n business or require material changes in the Company’s business practices.<\/p>\n
(k) INDEBTEDNESS. Incur any indebtedness for borrowed money other than
\n in the ordinary course of business consistent with past practice.<\/p>\n
(l) ADVERSE ACTIONS. Except as otherwise explicitly permitted by this
\n Agreement, knowingly take any action that is reasonably likely to result in
\n any of the conditions to the Merger set forth in Article VII not being
\n satisfied, except as may be expressly required by applicable law or
\n regulation; or<\/p>\n
(m) COMMITMENTS. Agree, commit to or enter into any agreement to take
\n any of the actions referred to in Section 5.01(a) through (l).<\/p>\n
29<\/p>\n
ARTICLE VI
\n COVENANTS<\/p>\n
6.01 EFFORTS.<\/p>\n
(a) Subject to the terms and conditions of this Agreement, each of the
\n Company, Parent and Merger Sub will use its commercially reasonable efforts
\n in good faith to take, or cause to be taken (including causing any of its
\n Subsidiaries to take), all actions, and to do, or cause to be done, all
\n things necessary, proper or desirable, or advisable under applicable laws,
\n so as to permit consummation of the Merger as promptly as practicable and
\n otherwise to enable consummation of the transactions contemplated hereby and
\n will cooperate fully with the other parties hereto to that end; and, in
\n furtherance of the foregoing, the parties agree to use their respective
\n commercially reasonable efforts to prevent the entry of any Restraints and
\n to appeal as promptly as practicable any such Restraints that may be
\n entered.<\/p>\n
(b) Without limiting the generality of Section 6.01(a), the Company
\n will use its commercially reasonable efforts to obtain the consent or
\n approval of all Persons party to a Disclosed Contract with the Company or
\n any of its Subsidiaries, to the extent such consent or approval is required
\n in order to consummate the Merger or for the Surviving Corporation to
\n receive the benefits of such Contract.<\/p>\n
6.02 COMPANY PROXY STATEMENT. If required under applicable law, the
\nCompany and Parent shall prepare the Company Proxy Statement, file it with the
\nSEC under the Exchange Act as promptly as practicable after Merger Sub purchases
\nthe Company Shares pursuant to the Offer, and use all reasonable efforts to have
\nit cleared by the SEC. As promptly as practicable after the Company Proxy
\nStatement has been cleared by the SEC, the Company shall mail the Company Proxy
\nStatement to the stockholders of the Company as of the record date for the
\nCompany Shareholder Meeting.<\/p>\n
6.03 STOCKHOLDER MEETINGS.<\/p>\n
(a) After consummation of the Offer, in the event Merger Sub acquires
\n less than 90 percent of the Company Shares, the Company will take all action
\n necessary to convene a special meeting of the holders of the Company Shares
\n at which the holders of the Company Shares will consider the adoption of
\n this Agreement (including any adjournments or postponements thereof, the
\n “COMPANY SHAREHOLDERS MEETING”) as promptly as practicable to consider and
\n vote on the Merger and this Agreement. At the Company Shareholders Meeting,
\n or if any action is taken by written consent with respect to the Merger,
\n Parent shall, and shall cause Merger Sub and any Affiliate of Parent owning
\n or holding Company Shares, to vote all Company Shares owned or held by
\n Parent, Merger Sub and any such Affiliate in favor of the Merger and the
\n Merger Agreement. Subject to the terms of this Agreement and subject to its
\n fiduciary obligations under applicable law, the Board of Directors of the
\n Company shall recommend to its stockholders the adoption of this Agreement
\n at the Company Shareholders Meeting and shall use commercially reasonable
\n efforts to solicit such adoption. In the event that subsequent to the date
\n hereof, the Board of Directors of the Company determines that the Offer is
\n no longer fair to, or in the best interests of, the Company’s Stockholders,
\n or that this Agreement is no longer advisable and either makes no
\n recommendation or recommends that its stockholders reject the Offer and this
\n Agreement, the Company shall nevertheless submit this Agreement to the
\n holders of the Company Shares for adoption at the Company Shareholders
\n Meeting unless this Agreement shall have been terminated in accordance with
\n its terms prior to the Company Shareholders Meeting.<\/p>\n
(b) Parent and Merger Sub shall not, and they shall cause their
\n subsidiaries not to, sell, transfer, assign, encumber or otherwise dispose
\n of the Company Shares acquired pursuant to the Offer or otherwise prior to
\n the Company Shareholder Meeting; provided, however, that this
\n Section 6.03(b) shall not apply to the sale, transfer, assignment,
\n encumbrance or other disposition<\/p>\n
30<\/p>\n
of any or all such Company Shares in transactions involving solely Parent,
\n Merger Sub and\/or one or more of their wholly-owned subsidiaries.<\/p>\n
(c) Notwithstanding the foregoing, in the event that Merger Sub shall
\n acquire Company Shares representing at least 90% of the votes represented by
\n all outstanding Common Stock, the parties hereto agree, at the request of
\n Merger Sub, to take all necessary and appropriate action to cause the Merger
\n to become effective, in accordance with Section 253 of the DGCL, as soon as
\n reasonably practicable after such acquisition, without a meeting of the
\n stockholders of the Company.<\/p>\n
6.04 PUBLICITY. The initial press release concerning the Merger and the
\nother transactions contemplated by this Agreement shall be a joint press release
\nin such form agreed to by the parties and thereafter the Company and Parent each
\nshall consult with the other and provide each other the opportunity to review,
\ncomment upon and use commercially reasonable efforts to agree on, any press
\nrelease or other public announcements with respect to the Merger and the other
\ntransactions contemplated by this Agreement prior to issuing any press releases
\nor otherwise making public announcements with respect to the Merger and the
\nother transactions contemplated by this Agreement and neither party shall issue
\nany press release or otherwise make any public announcements with respect
\nthereto without the other’s prior consent, except as may be required by law or
\ncourt process or by obligations pursuant to any listing agreement with or rules
\nof any applicable securities exchange or Nasdaq.<\/p>\n
6.05 ACCESS; INFORMATION.<\/p>\n
(a) The Company will, upon reasonable notice and subject to applicable
\n laws relating to the exchange of information, afford Parent and its
\n authorized Representatives reasonable access during normal business hours
\n throughout the period prior to the Effective Time or the termination of this
\n Agreement to its and its Subsidiaries’ books, records (including tax returns
\n and work papers of independent auditors), properties, personnel and such
\n other information as Parent may reasonably request and, during such period,
\n it shall furnish promptly to Parent (i) a copy of each material report,
\n schedule and other document filed by it pursuant to the requirements of the
\n Securities Laws, and (ii) all other information concerning the business,
\n properties and personnel of the Company and its Subsidiaries as Parent may
\n reasonably request. Notwithstanding the foregoing, the Company shall not be
\n obligated pursuant to this Section 6.05(a) to provide Parent with, or access
\n to, information that is competitively sensitive.<\/p>\n
(b) Each of Parent and the Company confirm that any information obtained
\n pursuant to this Section 6.05 will be subject to the terms of the letter
\n agreement, dated July 27, 2000 (as it may be amended from time to time, the
\n “CONFIDENTIALITY AGREEMENT”), between Parent and the Company.<\/p>\n
(c) No investigation by a party of the business and affairs of the other
\n shall affect or be deemed to modify or waive any representation, warranty,
\n covenant or agreement in this Agreement or the conditions to consummation of
\n the Merger contained in Article VII.<\/p>\n
6.06 ACQUISITION PROPOSALS.<\/p>\n
(a) The Company will not, and will cause its officers, directors,
\n agents, advisors and Affiliates not to, solicit or encourage inquiries or
\n proposals with respect to, or engage in any negotiations concerning, or
\n provide any confidential information to, or have any discussions with, any
\n Person relating to any Acquisition Proposal, other than the transactions
\n contemplated by this Agreement; PROVIDED, that nothing contained in this
\n Agreement shall prevent the Company or its Board of Directors from
\n (i) providing (or authorizing the provision of) information to, or engaging
\n in (or authorizing) discussions or negotiations with, any Person who has
\n made a bona fide written Acquisition Proposal received after the date hereof
\n which did not result from a breach of this Section 6.06; or
\n (ii) recommending such an Acquisition Proposal to its stockholders (and in<\/p>\n
31<\/p>\n
connection therewith withdrawing its favorable recommendation to
\n stockholders to accept the Offer and approve this Agreement), if and only to
\n the extent that, (x) in the case of actions referred to in clause (i), the
\n Company’s Board of Directors determines in good faith that such Acquisition
\n Proposal has a reasonable probability of resulting in a Superior Proposal
\n or, in the case of actions referred to in clause (ii), is a Superior
\n Proposal, (y) in the case of actions referred to in each of clauses (i) and
\n (ii), the Company’s Board of Directors, after having consulted with and
\n considered the advice of outside counsel to such Board, determines in good
\n faith that providing such information or engaging in such negotiations or
\n discussions, or making such recommendation, is required in order to
\n discharge the directors’ fiduciary duties in accordance with Delaware law
\n and (z) the Company receives from such Person a confidentiality agreement
\n substantially in the form of the Confidentiality Agreement (which shall not
\n preclude the making of any Acquisition Proposal). For purposes of this
\n Agreement, a “SUPERIOR PROPOSAL” means any Acquisition Proposal by a third
\n party on terms which the Company’s Board of Directors determines in its good
\n faith judgment, after consultation with its financial advisors, to be more
\n favorable to stockholders than the Merger and the other transactions
\n contemplated hereby, (x) after taking into account the likelihood and timing
\n of consummation of such transaction on the terms set forth therein, taking
\n into account all legal, financial (including the financing terms of any such
\n proposal), regulatory and other aspects of such proposal and any other
\n relevant factors permitted under applicable law, (y) after giving Parent the
\n greater of (i) five Business Days following Parent’s receipt of the
\n information specified in the last sentence of this subsection (a) or
\n (ii) three business days after receipt by Parent of the notice specified in
\n this clause (y) to respond to such third-party Superior Proposal once the
\n Board of Directors of the Company has notified Parent that in the absence of
\n any further action by Parent it would consider such Acquisition Proposal to
\n be a Superior Proposal, and (z) then taking into account any amendment or
\n modification to this Agreement proposed by Parent. The Company also agrees
\n immediately to cease and cause to be terminated any activities, discussions
\n or negotiations conducted prior to the date of this Agreement with any
\n parties other than Parent, with respect to any of the foregoing. The Company
\n shall promptly (within 24 hours) advise Parent following the receipt by it
\n of any Acquisition Proposal and the material terms thereof (including the
\n identity of the Person making such Acquisition Proposal), and advise Parent
\n of any material developments (including any change in such terms) with
\n respect to such Acquisition Proposal as promptly as practicable after the
\n occurrence thereof.<\/p>\n
(b) Nothing contained in this Section 6.06 or any other provision of
\n this Agreement will prohibit the Company or the Company’s Board of Directors
\n from notifying any third party that contacts the Company on an unsolicited
\n basis after the date hereof concerning an Acquisition Proposal of the
\n Company’s obligations under this Section 6.06.<\/p>\n
(c) Nothing contained in this Section 6.06 or any other provision of
\n this Agreement will prohibit the Board of Directors of the Company from
\n complying with Rule 14d-9 and Rule 14e-2 promulgated under the Exchange Act
\n with regard to a tender or exchange offer by a third party or from making
\n such disclosure as may be required by applicable law.<\/p>\n
6.07 REGULATORY APPLICATIONS; CONSENTS.<\/p>\n
(a) The Company, Parent and their respective Subsidiaries shall
\n cooperate and use their respective commercially reasonable efforts to
\n prepare all documentation, and to effect all filings, notices, applications,
\n consents, registrations, approvals, permits or authorizations with, to, or
\n of all third parties and Governmental Authorities necessary to consummate
\n the transactions contemplated by this Agreement as promptly as reasonably
\n practicable. Each of the Company and Parent shall have the right to review
\n in advance, and to the extent practicable each will consult with the other,
\n in each case subject to applicable laws relating to the exchange of
\n information, with respect to all material written information submitted to
\n any third party or any Governmental<\/p>\n
32<\/p>\n
Authority in connection with the transactions contemplated by this
\n Agreement. In exercising the foregoing right, each of the Company and Parent
\n agrees to act reasonably and as promptly as practicable. Each of the Company
\n and Parent agrees that it will consult with the other party hereto with
\n respect to the obtaining of all material consents, registrations, approvals,
\n permits and authorizations of all third parties and Governmental Authorities
\n necessary to consummate the transactions contemplated by this Agreement and
\n each party will keep the other party apprised of the status of material
\n matters relating to completion of the transactions contemplated hereby.<\/p>\n
(b) Subject to applicable laws governing the exchange of information,
\n each of the Company and Parent will, upon request, furnish the other party
\n with all information concerning itself, its Subsidiaries, directors,
\n officers and stockholders and such other matters as may be reasonably
\n necessary or advisable in connection with any filing, notice or application
\n made by or on behalf of such other party or any of its Subsidiaries to any
\n third party or Governmental Authority.<\/p>\n
(c) Parent and the Company shall use commercially reasonable efforts to
\n comply with the notice and reporting requirements of the HSR Act. Parent and
\n the Company shall use commercially reasonable efforts to comply
\n substantially with any additional requests for information, including
\n requests for production of documents and production of witnesses for
\n interviews or depositions, by the Antitrust Division of the United States
\n Department of Justice, the United States Federal Trade Commission (the
\n “ANTITRUST AUTHORITIES”) or the antitrust or competition law authorities of
\n any other jurisdiction.<\/p>\n
(d) Parent shall exercise its commercially reasonable efforts, and the
\n Company shall cooperate fully with Parent, to prevent the entry in any
\n Litigation brought by an Antitrust Authority or any other Person of any
\n Restraints which would restrain, enjoin, prohibit or make unlawful or delay
\n the consummation of the transactions contemplated by this Agreement.<\/p>\n
(e) Nothing in this Section 6.07 shall be deemed to require Parent or
\n any of its Subsidiaries to waive any material rights or agree to any
\n material limitations on its operations or to dispose of any material asset
\n or collection of assets prior to, at, or after the Closing Date.<\/p>\n
6.08 EMPLOYEE MATTERS.<\/p>\n
(a) Before the Effective Time, the Company shall take all action
\n necessary to terminate the Company’s 1999 Employee Stock Purchase Plan (the
\n “ESPP”). The Company shall take all action necessary to ensure that no
\n participant in the ESPP will be permitted on or after the date of this
\n Agreement to increase the portion of his or her compensation that he or she
\n elects to have withheld for the purchase of Company Common Stock under the
\n ESPP.<\/p>\n
(b)The Company and Parent agree that the individuals who immediately
\n prior to the Effective Time are employees of the Company and its
\n Subsidiaries (the “CONTINUING EMPLOYEES”) shall, during the period
\n commencing at the Effective Time and ending on the first anniversary of the
\n Effective Time, be provided with employee benefits that are no less
\n advantageous in the aggregate to (in Parent’s discretion) either (i) the
\n employee benefits provided to the Continuing Employees as a group
\n immediately prior to the Effective Time (but excluding in any event awards
\n under stock options and other equity-based plans) or (ii) the employee
\n benefits provided to those individuals who following the Effective Time are
\n similarly situated employees of Parent other than the Continuing Employees
\n (but excluding in any event awards under stock option and other equity-based
\n plans, flight privileges and any retiree medical benefits) and provided,
\n that nothing herein shall limit the right of any entity to make any changes
\n to or to terminate any employee benefit plan or arrangement or to terminate
\n the employment of any person following the Effective Time. To the extent
\n that Continuing Employees receive medical, dental or health insurance
\n benefits after the Effective Time, Parent shall waive any pre-existing
\n condition exclusions and actively-at-work requirements for Continuing
\n Employees and their covered dependents and provide<\/p>\n
33<\/p>\n
that any out-of-pocket expenses incurred during the portion of the calendar
\n year preceding the Effective Time by a Continuing Employee or a Continuing
\n Employee’s covered dependents shall be taken into account under any such
\n medical, dental or health plans provided to such Continuing Employees for
\n purposes of satisfying applicable deductible, coinsurance and maximum
\n out-of-pocket provisions. Continuing Employees shall also receive credit for
\n services with the Company or its Subsidiaries for purposes of eligibility
\n and vesting, but not benefits accrued, under any employee benefit plan
\n sponsored by Parent. Without limiting the generality of the foregoing, the
\n Company and Parent agree to the matters set forth in the Parent’s Disclosure
\n Schedule.<\/p>\n
(c) Prior to the Effective Time, Parent and the Company shall take all
\n such reasonable steps as may be required to cause any dispositions of
\n Company Shares (including derivative securities with respect to Company
\n Shares) or acquisitions of Parent Shares (including derivative securities
\n with respect to Parent Shares) resulting from the transactions contemplated
\n by this Agreement by each individual who is subject to the reporting
\n requirements of Section 16(a) of the Exchange Act to be exempt under
\n Rule 16b-3 promulgated under the Exchange Act.<\/p>\n
(d) At Parent’s request, the Company shall, prior to the Effective Time
\n take all action necessary to terminate each of the Company Compensation and
\n Benefit Plans that is a 401(k) plan or other defined contribution retirement
\n plan.<\/p>\n
(e) The Surviving Corporation shall assume each obligation of the
\n Company relating to a change in control set forth in each Contract listed on
\n Section 4.02(n)(i) of the Company’s Disclosure Schedule and the Surviving
\n Corporation shall perform such agreements in the same manner and to the same
\n extent as the Company would be required to perform such agreements in the
\n absence of the Merger.<\/p>\n
6.09 NOTIFICATION OF CERTAIN MATTERS.<\/p>\n
(a) The Company shall give prompt notice to Parent, and Parent or Merger
\n Sub shall give prompt notice to the Company, of any fact, event or
\n circumstance known to it that is reasonably likely, individually or taken
\n together with all other facts, events and circumstances known to it, to
\n result in a breach of any of its representations, warranties, covenants or
\n agreements contained herein such that any of the conditions set forth in
\n Article VII would not be satisfied not taking into account for the
\n applicability of this Section 6.09, the proviso to Annex A(c)(iii)(A).<\/p>\n
(b) The Company will promptly notify Parent, and Parent will promptly
\n notify the Company, of:<\/p>\n
(i) any notice or other communication from any Person alleging that
\n any material consent of such Person is or may be required as a condition
\n to consummation of the Merger; or<\/p>\n
(ii) any material notice or other communication from any Governmental
\n Authority in connection with the transactions contemplated by this
\n Agreement.<\/p>\n
6.10 INDEMNIFICATION; DIRECTORS’ AND OFFICERS’ INSURANCE.<\/p>\n
(a) From and after the Effective Time, Parent will indemnify and hold
\n harmless each present and former director and officer of the Company or any
\n of its Subsidiaries, determined as of immediately prior to the Effective
\n Time (the “INDEMNIFIED PARTIES”), against any and all costs or expenses
\n (including reasonable attorneys’ fees), judgments, fines, losses, claims,
\n damages or liabilities (collectively, “COSTS”) arising from, relating to or
\n otherwise in respect of, any actual or threatened claim, action, suit,
\n proceeding or investigation, whether civil, criminal, administrative or
\n investigative, arising out of matters existing or occurring at or prior to
\n the Effective Time, whether asserted or claimed prior to, at or after the
\n Effective Time (including with respect to the transactions contemplated by
\n this Agreement), to the fullest extent permitted under applicable law;
\n PROVIDED that Parent shall not be required to indemnify any Indemnified
\n Party pursuant to this<\/p>\n
34<\/p>\n
Section 6.10 if it is determined that the Indemnified Party acted in bad
\n faith and not in a manner such Indemnified Party believed to be in or not
\n opposed to the best interests of the Company. Parent shall, and shall cause
\n the Surviving Corporation to, advance expenses as incurred to the fullest
\n extent permitted under applicable law provided the Person to whom expenses
\n are advanced provides an undertaking to repay such advances if it is
\n ultimately determined that such Person is not entitled to indemnification.<\/p>\n
(b) Any Indemnified Party wishing to claim indemnification under
\n Section 6.10(a), upon learning of any such claim, action, suit, proceeding
\n or investigation, must promptly notify Parent thereof, but the failure to so
\n notify shall not relieve Parent of any liability it may have to such
\n Indemnified Party to the extent such failure does not materially prejudice
\n Parent. In the event of any such claim, action, suit, proceeding or
\n investigation (whether arising before or after the Effective Time), after
\n the Effective Time (i) Parent or the Surviving Corporation shall have the
\n right to assume the defense thereof and Parent shall not be liable to such
\n Indemnified Parties for any legal expenses of other counsel or any other
\n expenses subsequently incurred by such Indemnified Parties in connection
\n with the defense thereof, except that if Parent or the Surviving Corporation
\n elects not to assume such defense or counsel for the Indemnified Parties
\n advises that there are issues which raise conflicts of interest between
\n Parent or the Surviving Corporation and the Indemnified Parties, the
\n Indemnified Parties may retain counsel satisfactory to them, and Parent or
\n the Surviving Corporation shall pay all reasonable fees and expenses of such
\n counsel for the Indemnified Parties promptly as statements therefor are
\n received; PROVIDED, HOWEVER, that Parent shall be obligated pursuant to this
\n Section 6.10 to pay for only one firm of counsel (unless the use of one
\n counsel for such Indemnified Parties would present such counsel with a
\n conflict of interest) for all Indemnified Parties in any jurisdiction,
\n (ii) the Indemnified Parties will cooperate in the defense of any such
\n matter and (iii) Parent shall not be liable for any settlement effected
\n without its prior written consent; and PROVIDED, FURTHER, that Parent shall
\n not have any obligation hereunder to any Indemnified Party when and if a
\n court of competent jurisdiction shall ultimately determine, and such
\n determination shall have become final, that the indemnification of such
\n Indemnified Party in the manner contemplated hereby is prohibited by
\n applicable law.<\/p>\n
(c) For a period of six years from the Effective Time, Parent will
\n provide director’s and officer’s liability insurance that serves to
\n reimburse the present and former officers and directors of the Company or
\n any of the Company’s Subsidiaries (determined as of the Effective Time) with
\n respect to claims against such directors and officers arising from facts or
\n events which occurred before the Effective Time, which insurance shall
\n contain at least the same coverage and amounts, and contain terms and
\n conditions no less advantageous in any material respect, as that coverage
\n currently provided by the Company; PROVIDED, HOWEVER, that in no event shall
\n Parent be required to expend per annum more than 150 percent of the current
\n aggregate annual amount expended by the Company (such amount, the “INSURANCE
\n AMOUNT”) to maintain or procure such directors and officers insurance
\n coverage; PROVIDED, FURTHER, that if Parent is unable to maintain or obtain
\n the insurance called for by this Section 6.10(c), Parent shall use its
\n commercially reasonable efforts to obtain as much comparable insurance as is
\n available for the Insurance Amount; PROVIDED, FURTHER, that officers and
\n directors of the Company or any Company Subsidiary may be required to make
\n application and provide customary representations and warranties to Parent’s
\n insurance carrier for the purpose of obtaining such insurance.<\/p>\n
(d) If Parent or any of its successors or assigns shall consolidate with
\n or merge into any other entity and shall not be the continuing or surviving
\n entity, then and in each case, proper provision shall be made so that
\n successors and assigns of Parent shall assume the obligations set forth in
\n this Section 6.10.<\/p>\n
(e) The provisions of this Section 6.10 are intended to be for the
\n benefit of, and enforceable in accordance with their terms by, the
\n Indemnified Parties.<\/p>\n
35<\/p>\n
6.11 TAX RETURNS.<\/p>\n
At least 30 days prior to the due date for filing the 1999 and January 1,
\n2000 to January 31, 2000 United States federal income Tax Returns, any 1999 and
\nJanuary 1, 2000 to January 31, 2000 state income or franchise Tax Returns and
\nany 1999 and 2000 state sales or use Tax Returns of the Company and its
\nSubsidiaries, the Company shall make available to Parent a draft of such Tax
\nReturns as the Company or such Subsidiary proposes to file. Parent shall have
\nthe opportunity to review and comment on the draft of such Tax Returns.<\/p>\n
ARTICLE VII
\n CONDITIONS TO CONSUMMATION OF THE MERGER<\/p>\n
7.01 CONDITIONS TO EACH PARTY’S OBLIGATION TO EFFECT THE MERGER. The
\nrespective obligations of each of Parent, Merger Sub and the Company to
\nconsummate the Merger is subject to the fulfillment or written waiver by Parent
\nand the Company prior to the Closing of each of the following conditions:<\/p>\n
(a) STOCKHOLDER APPROVAL. Unless Merger Sub shall have acquired
\n 90 percent of the Shares, this Agreement shall have been duly adopted by the
\n stockholders of the Company by the Company Requisite Vote. The parties
\n understand, acknowledge and agree that any and all Company Shares acquired
\n by Merger Sub pursuant to the Offer, or acquired in connection with the
\n Stockholders Agreements, shall be voted for the Merger at the Company
\n Shareholders Meeting.<\/p>\n
(b) GOVERNMENTAL AND REGULATORY CONSENTS. All approvals, consents and
\n authorizations of, filings and registrations with, and applications and
\n notifications to all Governmental Authorities required for the consummation
\n of the Merger shall have been obtained or made and shall be in full force
\n and effect and all waiting periods required by law shall have expired;
\n PROVIDED, HOWEVER, that none of the preceding shall be deemed obtained or
\n made if it shall require Parent or any of its Subsidiaries to waive any
\n material rights or agree to any material limitations on its operations or to
\n dispose of any material asset or collection of assets prior to, at, or after
\n the Closing Date.<\/p>\n
(c) NO INJUNCTION. No Governmental Authority of competent jurisdiction
\n shall have enacted, issued, promulgated, enforced or entered any statute,
\n rule, regulation, judgment, decree, injunction or other order (whether
\n temporary, preliminary or permanent) (individually, a “RESTRAINT” or
\n collectively, “RESTRAINTS”) which is in effect and restrains, enjoins or
\n otherwise prohibits consummation of the Merger or the other transactions
\n contemplated by this Agreement.<\/p>\n
(d) OFFER. Merger Sub shall have purchased Company Shares pursuant to
\n the Offer.<\/p>\n
ARTICLE VIII
\n TERMINATION<\/p>\n
8.01 TERMINATION. This Agreement may be terminated, and the Merger may be
\nabandoned at any time prior to the Effective Time:<\/p>\n
(a) MUTUAL CONSENT. By the mutual consent of Parent and the Company.<\/p>\n
(b) BREACH. By Parent, on the one hand, or the Company, on the other
\n hand, in the event of either: (i) a breach by the other party of any
\n representation or warranty contained herein, which breach cannot be or has
\n not been cured within 30 days after the giving of written notice to the
\n breaching party of such breach; or (ii) a breach by the other party of any
\n of the covenants or agreements contained herein, which breach cannot be or
\n has not been cured within 30 days after the giving of written notice to the
\n breaching party of such breach and, in the case of clauses (i) and (ii),
\n which breach, individually or in the aggregate with other such breaches,
\n would cause the conditions set forth in Annex A(c)(iii), in the case of a
\n breach by the Company, not to be satisfied or is reasonably likely to
\n prevent, materially delay or materially impair the ability of the<\/p>\n
36<\/p>\n
Company, Merger Sub or Parent to consummate the Merger and the other
\n transactions contemplated by this Agreement.<\/p>\n
(c) DELAY. By Parent or the Company in the event that the purchase of
\n Shares pursuant to the Offer has failed to occur on or before February 28,
\n 2001, except to the extent that such failure arises out of or results from
\n the knowing action or inaction of the party seeking to terminate pursuant to
\n this Section 8.01(c) (which action or inaction constitutes a breach of this
\n Agreement) and PROVIDED, FURTHER that either party may elect to extend the
\n term of the Agreement until not later than April 30, 2001 (the “DROP DEAD
\n DATE”) if any applicable regulatory approvals required to be obtained to
\n satisfy the condition set forth in Section 7.01(b) shall not have been
\n obtained by February 28, 2001 but all other conditions to the Closing shall
\n have been fulfilled or capable of being fulfilled by such date.<\/p>\n
(d) NO REGULATORY APPROVAL. (i) By Parent or the Company, if the
\n approval of any Governmental Authority required for consummation of the
\n Offer or Merger and the other transactions contemplated by this Agreement
\n shall have been denied by final nonappealable action of such Governmental
\n Authority, or such Governmental Authority shall have requested the permanent
\n withdrawal of any application therefor.<\/p>\n
(e) FAILURE TO RECOMMEND, ETC. By Parent, if at any time prior to the
\n purchase of Shares pursuant to the Offer, the Company’s Board of Directors
\n shall have failed to make its recommendation referred to in Section 6.03,
\n withdrawn such recommendation or modified or changed such recommendation in
\n a manner adverse to the interests of Parent.<\/p>\n
(f) ACQUISITION PROPOSAL. By Parent, if the Company or its Board of
\n Directors shall take any of the actions described in clause (ii) of the
\n proviso to the first sentence of Section 6.06(a).<\/p>\n
(g) FAILURE TO SATISFY MINIMUM TENDER CONDITION. By Parent or the
\n Company in the event that the Minimum Tender Condition shall not have been
\n satisfied 30 Business Days after all of the conditions set forth in
\n Annex A, except for the Minimum Tender Condition, shall have been satisfied
\n or waived.<\/p>\n
8.02 EFFECT OF TERMINATION AND ABANDONMENT. In the event of termination of
\nthis Agreement and the abandonment of the Merger pursuant to this Article VIII,
\nno party to this Agreement shall have any liability or further obligation to any
\nother party hereunder except (a) as set forth in Sections 8.03 and 9.01 and
\n(b) that termination will not relieve a breaching party from liability for any
\nwillful breach of this Agreement.<\/p>\n
8.03 TERMINATION FEES.<\/p>\n
(a) The Company agrees to pay to Parent a cash fee of $22,500,000
\n (i) if this Agreement is terminated by Parent pursuant to Sections 8.01(b),
\n 8.01(e) or 8.01(f) or by the Company or Parent pursuant to Section 8.01(c),
\n if prior to the time of such termination, an Acquisition Proposal shall have
\n been made to the Company or its stockholders or shall have become publicly
\n known; provided, if the Agreement is terminated pursuant to
\n Section 8.01(c), the Acquisition Proposal shall have been made or become
\n known within the 60-day period immediately preceding the date of such
\n termination; or (ii) if the Offer is terminated by Parent prior to the
\n purchase of Shares pursuant to Section 8.01(g) and prior to the termination
\n of the Offer an Acquisition Proposal shall have been made to the Company or
\n its stockholders or shall have been made publicly known, and concurrently
\n with such termination or within six months after such termination, either<\/p>\n
(x) the Company shall have entered into an agreement to engage in an
\n Acquisition Transaction or an Acquisition Transaction approved by the
\n Board of Directors of the Company shall have occurred, or<\/p>\n
37<\/p>\n
(y) the Board of Directors of the Company shall have authorized,
\n recommended or approved an Acquisition Transaction or shall have publicly
\n announced an intention to authorize, recommend or approve an Acquisition
\n Transaction.<\/p>\n
(b) Any payment required to be made pursuant to Section 8.03(a) shall be
\n payable, without setoff, by wire transfer in immediately available funds to
\n an account specified by Parent, not later than three Business Days after the
\n date of termination of this Agreement which gives rise to the Company’s
\n obligation pursuant to Section 8.03(a) to make such payment. The payment by
\n the Company of a fee pursuant to Section 8.03(a) which is based upon the
\n Company’s knowing and intentional breach of its representations, warranties,
\n covenants or agreements shall be Parent’s sole remedy with respect to such
\n breach and Parent hereby waives any and all rights, claims and causes of
\n action it may have against the Company with respect to such breach.
\n Notwithstanding anything in this Agreement to the contrary, in no event
\n shall the amounts payable by the Company under this Section 8.03 exceed
\n $22,5000,000 in the aggregate.<\/p>\n
(c) Parent agrees to pay the Company a cash fee of $22,500,000:<\/p>\n
(i) if prior to the termination of this Agreement pursuant to
\n Section 8.01(c) an Antitrust Authority obtains a non-appealable, final
\n injunction enjoining consummation of the Merger or an Antitrust Authority
\n obtains a preliminary injunction enjoining the Merger following an
\n evidentiary hearing on the merits at which Parent and the Company have
\n been afforded an opportunity to present in court testimony from fact and
\n expert witnesses;<\/p>\n
(ii) if after the Drop Dead Date, Parent terminates this Agreement
\n and at such time (A) an Antitrust Authority shall have commenced an
\n injunctive action seeking to enjoin consummation of the Merger or
\n asserted in writing an intention to file such an injunctive action,
\n (B) the Company shall have complied, and shall be in compliance with, its
\n covenants set forth in Section 6.07, and (C) all of the conditions set
\n forth in Annex A(c)(iii) shall have been satisfied by the Company;<\/p>\n
(iii) if after the Drop Dead Date, the Company shall terminate this
\n Agreement pursuant to Section 8.01(c) and at such time (A) an Antitrust
\n Authority shall have commenced an injunctive action seeking to enjoin
\n consummation of the Merger or asserted in writing an intention to file
\n such an injunctive action, (B) Parent shall not be contesting such
\n injunctive action in good faith with a reasonable belief that Parent will
\n prevail, (C) the Company shall have complied, and shall be in compliance
\n with, its covenants set forth in Section 6.07, and (D) all of the
\n conditions set forth in Annex
\n A(c)(iii) shall have been satisfied by the Company; or<\/p>\n
(iv) if at any time after 90 days from the Drop Dead Date, the
\n Company shall terminate this Agreement pursuant to Section 8.01(c) and at
\n such time (A) an Antitrust Authority shall have commenced an injunctive
\n action seeking to enjoin consummation of the Merger or asserted in
\n writing an intention to file such an injunctive action, (B) the Company
\n shall have complied, and shall be in compliance with, its covenants set
\n forth in Section 6.07(c), and (C) all of the conditions set forth in
\n Annex A(c)(iii) shall have been satisfied by the Company.<\/p>\n
(d) Any payment required to be made under paragraph (c) above shall be
\n payable, without setoff, by wire transfer in immediately available funds to
\n an account specified by the Company, not later than three Business Days
\n following such termination.<\/p>\n
(e) Each party acknowledges that the agreements contained in this
\n Section 8.03 are an integral part of the transactions contemplated by this
\n Agreement and that, without these agreements, the parties would not have
\n entered into this Agreement; accordingly, if a party fails to pay promptly
\n any amount due pursuant to this Section 8.03, and, in order to obtain such
\n payment, the recipient party commences a suit which results in a judgment
\n against the payor party for the<\/p>\n
38<\/p>\n
payment set forth in this Section 8.03, the payor party shall pay to the
\n recipient party its costs and expenses (including attorneys’ fees) in
\n connection with such suit, together with interest on any amount due pursuant
\n to this Section 8.03 from the date such amount became payable until the date
\n of such payment at the prime rate of Citibank N.A. in effect on the date
\n such payment was required to be made plus two (2) percent.<\/p>\n
8.04 CHANGES IN FORBEARANCES. In the event that<\/p>\n
(a) the Drop Dead Date has occurred, (b) neither party has terminated
\n this Agreement, and (c) all of the conditions set forth in
\n Annex A(c)(iii) have been satisfied by the Company other than any condition
\n requiring any approval, consent, or authorization of any Antitrust
\n Authority, the Company shall not be required to comply with any of the
\n covenants specified in the following sections of this Agreement:
\n Section 5.01(a)(ii)(A) (new lines of business), Section 5.01(a)(ii)(B)
\n (capital expenditures), but not in excess of an additional $8,000,000 in the
\n aggregate, Section 5.01(d) (compensation and employment), and
\n Section 5.019(m) (commitments, as they relate to the covenants listed
\n above).<\/p>\n
ARTICLE IX
\n MISCELLANEOUS<\/p>\n
9.01 SURVIVAL. No representations or warranties contained in this
\nAgreement shall survive the Effective Time or termination of this Agreement. The
\nagreements of the parties contained in Sections 6.04, 8.02 and 8.03 and in this
\nArticle IX shall survive the termination of this Agreement.<\/p>\n
9.02 WAIVER; AMENDMENT. Prior to the Effective Time, any provision of this
\nAgreement may be (a) waived by the party benefited by the provision in a writing
\nsigned by such party, or (b) amended or modified at any time, by an agreement in
\nwriting between the parties hereto and executed in the same manner as this
\nAgreement, except that after adoption of this Agreement by the stockholders of
\nthe Company, no amendment may be made which under applicable law would require
\nfurther approval of such stockholders without obtaining such required further
\napproval.<\/p>\n
9.03 COUNTERPARTS. This Agreement may be executed in one or more
\ncounterparts, each of which shall be deemed to constitute an original.<\/p>\n
9.04 GOVERNING LAW AND VENUE. This Agreement shall be governed by, and
\ninterpreted in accordance with, the laws of the State of Delaware (without
\nregard to the conflicts of laws principles thereof). The parties hereby
\nirrevocably submit to the jurisdiction of the Federal courts of the United
\nStates of America and the state courts of the State of Delaware, in each case
\nlocated in the State of Delaware, solely in respect of the interpretation and
\nenforcement of the provisions of this Agreement and of the documents referred to
\nin this Agreement, and in respect of the transactions contemplated hereby, and
\nhereby waive, and agree not to assert, as a defense in any action, suit or
\nproceeding for the interpretation or enforcement hereof or thereof or of any
\nsuch document, that it is not subject thereto or that such action, suit or
\nproceeding may not be brought or is not maintainable in said courts or that the
\nvenue thereof may not be appropriate or that this Agreement or any such document
\nmay not be enforced in or by such courts, and the parties hereto irrevocably
\nagree that all claims with respect to such action or proceeding shall be heard
\nand determined in such a Delaware Federal or state court. The parties hereby
\nconsent to and grant any such court jurisdiction over the Person of such parties
\nand over the subject matter of such dispute.<\/p>\n
9.05 EXPENSES. Whether or not the Merger is consummated, each party hereto
\nwill bear all expenses incurred by it in connection with this Agreement, and the
\ntransactions contemplated hereby, except that each of the Company and Parent
\nshall bear one-half of the costs and expenses of filing, printing and
\ndistributing the Company Proxy Statement and related documents.<\/p>\n
39<\/p>\n
9.06 NOTICES. All notices, requests and other communications hereunder to
\na party shall be in writing and shall be deemed given (a) on the date of
\ndelivery, if personally delivered or telecopied (with confirmation), (b) on the
\nfirst Business Day following the date of dispatch, if delivered by a recognized
\nnext-day courier service, or (c) on the third Business Day following the date of
\nmailing, if mailed by registered or certified mail (return receipt requested),
\nin each case to such party at its address or telecopy number set forth below or
\nsuch other address or numbers as such party may specify by notice to the parties
\nhereto.<\/p>\n
If to the Company, to:
\n 4045 Campbell Avenue
\n Menlo Park, California 94025
\n Attention: General Counsel
\n Facsimile: (650) 752 – 1978<\/p>\n
With a copy to:<\/p>\n
Orrick, Herrington & Sutcliffe LLP
\n Old Federal Reserve Bank Building
\n 400 Sansome Street
\n San Francisco, California 94111
\n Attention: Richard V. Smith, Esq.
\n Facsimile: (415) 773-5759<\/p>\n
If to Parent or Merger Sub, to:
\n 4225 Amon Carter Blvd., MD 3204
\n Fort Worth, Texas 76155
\n Attenton: Chief Financial Officer
\n With a copy to: General Counsel
\n Facsimile: (817) 967-4911<\/p>\n
With a copy to:<\/p>\n
Fried, Frank, Harris, Shriver & Jacobson
\n One New York Plaza
\n New York, New York 10004
\n Attention: Charles M. Nathan, Esq.
\n Facsimile: (212) 859-4000<\/p>\n
9.07 ENTIRE UNDERSTANDING; NO THIRD-PARTY BENEFICIARIES. This Agreement
\nand the Confidentiality Agreement and the documents referred to herein and
\ntherein represent the entire understanding of the parties hereto with reference
\nto the transactions contemplated hereby and thereby and such agreements
\nsupersede any and all other oral or written agreements heretofore made. Except
\nfor Section 6.10, insofar as such Section expressly provides certain rights to
\nthe Indemnified Parties named therein, nothing in this Agreement, expressed or
\nimplied, is intended to confer upon any Person, other than the parties hereto or
\ntheir respective successors and permitted assigns, any rights, remedies,
\nobligations or liabilities under or by reason of this Agreement.<\/p>\n
9.08 SEVERABILITY. The provisions of this Agreement shall be deemed
\nseverable and the invalidity or unenforceability of any provision shall not
\naffect the validity or enforceability of the other provisions hereof. If any
\nprovision of this Agreement, or the application thereof to any Person or any
\ncircumstance, is invalid or unenforceable, (a) a suitable and equitable
\nprovision shall be substituted therefor in order to carry out, so far as may be
\nvalid and enforceable, the intent and purpose of such invalid or unenforceable
\nprovision and (b) the remainder of this Agreement and the application of such
\nprovision to other Persons or circumstances shall not be affected by such
\ninvalidity or unenforceability,<\/p>\n
40<\/p>\n
nor shall such invalidity or unenforceability affect the validity or
\nenforceability of such provision, or the application thereof, in any other
\njurisdiction.<\/p>\n
9.09 ASSIGNMENT. Neither this Agreement nor any of the rights, interests
\nor obligations hereunder shall be assigned or delegated, in whole or in part
\n(except by operation of law), by any of the parties hereto without the prior
\nwritten consent of each other party hereto, except that Parent and Merger Sub
\nmay assign or delegate in their sole discretion any or all of their rights,
\ninterests or obligations under this Agreement to any, direct or indirect,
\nwholly-owned subsidiary of Parent, but no such assignment shall relieve Parent
\nof any of its obligations hereunder. Subject to the preceding sentence, this
\nAgreement shall be binding upon, inure to the benefit of and be enforceable by,
\nthe parties hereto and their respective successors and assigns.<\/p>\n
9.10 ENFORCEMENT. The parties agree that irreparable damage would occur in
\nthe event that any of the provisions of this Agreement were not performed in
\naccordance with their terms or were otherwise breached. It is accordingly agreed
\nthat the parties hereto shall be entitled to an injunction or injunctions to
\nprevent breaches of this Agreement and to enforce specifically the terms and
\nprovisions of this Agreement, this being in addition to any other remedy to
\nwhich they are entitled at law or in equity.<\/p>\n
9.11 INTERPRETATION. When a reference is made in this Agreement to a
\nRecital, Section, Exhibit or Schedule, such reference shall be to a Recital or
\nSection of, or Exhibit or Schedule to, this Agreement unless otherwise
\nindicated. The table of contents and headings contained in this Agreement are
\nfor reference purposes only and are not part of this Agreement. Whenever the
\nwords “include,” “includes” or “including” are used in this Agreement, they
\nshall be deemed followed by the words “without limitation”.<\/p>\n
41<\/p>\n
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
\nexecuted in counterparts by their duly authorized officers, all as of the day
\nand year first above written.<\/p>\n
\n
\n SABRE HOLDINGS CORPORATION<\/p>\n By: \/s\/ WILLIAM J. HANNIGAN
\n —————————————
\n Name: William J. Hannigan
\n Title: PRESIDENT<\/p>\n
GETTHERE INC.<\/p>\n
By: \/s\/ GADI MAIER
\n —————————————
\n Name: Gadi Maier
\n Title: PRESIDENT AND CEO<\/p>\n
SABRE INC.<\/p>\n
By: \/s\/ WILLIAM J. HANNIGAN
\n —————————————
\n Name: William J. Hannigan
\n Title: PRESIDENT
\n<\/c><\/c><\/s><\/table>\n
(SIGNATURE PAGE TO MERGER AGREEMENT)<\/p>\n
42<\/p>\n
ANNEX A<\/p>\n
CONDITIONS TO THE OFFER<\/p>\n
The capitalized terms used in this Annex A have the meanings set forth in
\nthe attached Agreement, except that the term “the Agreement” shall be deemed to
\nrefer to the attached Agreement. Notwithstanding any other provision of the
\nOffer, Merger Sub shall not be obligated to accept for payment or pay for,
\nsubject to Rule 14e-l(c) of the Exchange Act, any Company Shares, not
\ntheretofore accepted for payment and may terminate or amend the Offer if
\n(a) that number of Company Shares, which would represent at least a majority of
\nthe Company Shares entitled to vote that are outstanding on a fully diluted
\nbasis after giving effect to the exercise or conversion of all Rights, shall not
\nhave been validly tendered and not withdrawn immediately prior to the expiration
\nof the Offer (the “MINIMUM TENDER CONDITION”), (b) any applicable waiting period
\nunder the HSR Act shall not have expired or been terminated prior to the
\nexpiration of the Offer or (c) prior to the expiration of the Offer, any of the
\nfollowing conditions exist or shall occur:<\/p>\n
(i) Parent is unable to obtain any approval, consent, authorization or
\n clearance from any or all Governmental Authorities as required for the
\n consummation of the Merger or one of the preceding shall require Parent or
\n any of its Subsidiaries to waive any material rights or agree to any
\n material limitations on its operations or to dispose of any material asset
\n or collection of assets prior to, at, or after the Closing Date;<\/p>\n
(ii) A Governmental Authority of competent jurisdiction has enacted,
\n issued, promulgated, enforced or entered any type of Restraint which is in
\n effect and restrains, enjoins or otherwise prohibits consummation of the
\n Merger or the purchase of the Company Shares under the Offer;<\/p>\n
(iii) (A) the representations and warranties of the Company set forth
\n in this Agreement shall have failed to be true and correct in any respect
\n (in the case of any representation or warranty containing materiality or
\n knowledge qualifiers) or in any material respect (in the case of those
\n representations or warranties not containing materiality or knowledge
\n qualifiers), as applicable as of the date of this Agreement and as of the
\n date of the purchase of the Company Shares under the Offer as though made on
\n and as of the date of the purchase of the Company Shares under the Offer
\n (except that representations and warranties that by their terms speak as of
\n the date of this Agreement or some other date shall be true and correct only
\n as of such date); PROVIDED, HOWEVER, that if the condition set forth in this
\n sentence cannot be satisfied due to occurrences, changes or events after the
\n date of this Agreement that, taken as a whole, could not reasonably be
\n expected to have a Material Adverse Effect on the Company, then such
\n condition shall be deemed satisfied notwithstanding any such occurrences,
\n changes or events. Parent and Merger Sub shall have received a certificate,
\n dated as of the purchase of the Company Shares under the Offer, signed on
\n behalf of the Company by the Chief Executive Officer and the Chief Financial
\n Officer of the Company to such effect; or<\/p>\n
(B) the Company shall have failed to perform in all material respects any
\nobligation required to be performed by it under the Agreement at or prior to the
\npurchase of the Company Shares under the Offer, and Parent shall have received a
\ncertificate, dated as of the purchase of the Company Shares under the Offer,
\nsigned on behalf of the Company by the Chief Executive Officer and the Chief
\nFinancial Officer of the Company to such effect; or<\/p>\n
(iv) the Agreement shall have been terminated in accordance with its
\n terms.<\/p>\n
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