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Exhibit 2.1
Execution
Copy
AGREEMENT AND PLAN OF
MERGER
dated as of January 26,
2005
by and
among
MAPICS,
INC.,
MAGELLAN MERGER SUB,
INC.,
INFOR INTERNATIONAL
LIMITED,
and
INFOR GLOBAL SOLUTIONS
TOPCO LTD.
TABLE OF
CONTENTS
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Page
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ARTICLE 1 THE MERGER
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2 |
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1.01
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The Merger
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2 |
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1.02
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Effective Time
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2 |
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1.03
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Effects of the Merger
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2 |
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1.04
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Articles of Incorporation and Bylaws of
the Surviving Corporation
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2 |
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1.05
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Directors
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3 |
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1.06
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Officers
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3 |
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1.07
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Closing
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3 |
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1.08
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Additional Actions
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3 |
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ARTICLE 2 EFFECT OF THE MERGER ON THE
CAPITAL STOCK OF THE COMPANY AND MERGER SUB
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3 |
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2.01 |
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Effect on Shares of Capital
Stock
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3 |
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2.02 |
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Options; Warrants; Stock
Plans
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5 |
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2.03 |
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Payment for Common Shares, Options and
Warrants in the Merger
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7 |
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ARTICLE 3 REPRESENTATIONS AND
WARRANTIES OF THE COMPANY
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10 |
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3.01 |
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Organization and
Qualification
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10 |
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3.02 |
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Charter Documents and Bylaws
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11 |
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3.03 |
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Capitalization
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11 |
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3.04 |
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Authority Relative to this
Agreement
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12 |
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3.05 |
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Company Subsidiaries
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13 |
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3.06 |
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No Violation; Required Filings and
Consents
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13 |
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3.07 |
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SEC Reports and Financial
Statements
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14 |
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3.08 |
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Compliance with Applicable
Laws
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15 |
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3.09 |
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Absence of Certain Changes or
Events
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15 |
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3.10 |
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Change of Control
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17 |
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3.11 |
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Litigation
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17 |
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3.12 |
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Information in Proxy
Statement
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17 |
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3.13 |
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Benefit Plans
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18 |
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3.14 |
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Taxes
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20 |
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3.15 |
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Intellectual Property
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22 |
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3.16 |
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Licenses and Permits
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25 |
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3.17 |
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Material Contracts
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25 |
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3.18 |
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Environmental Laws
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26 |
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3.19 |
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Rights Plan
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27 |
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3.20 |
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Opinion of Financial Advisor
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27 |
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3.21 |
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Brokers
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27 |
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3.22 |
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Special Committee and Company Board
Recommendations
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27 |
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3.23 |
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Required Shareholder Vote
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27 |
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3.24 |
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Related Party Transactions
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28 |
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3.25 |
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Properties and Assets
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28 |
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3.26 |
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Labor Matters
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28 |
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3.27 |
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Insurance
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29 |
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3.28 |
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Company Expenses
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29 |
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3.29 |
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State Takeover Statutes
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30 |
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ARTICLE 4 REPRESENTATIONS AND
WARRANTIES OF MERGER SUB, INFOR AND PARENT
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30 |
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4.01 |
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Organization and
Qualification
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30 |
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4.02 |
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Charter Documents and Bylaws
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31 |
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4.03 |
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Authority Relative to this
Agreement
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31 |
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4.04 |
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No Violation; Required Filings and
Consents
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31 |
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4.05 |
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Litigation
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32 |
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4.06 |
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Financing
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32 |
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4.07 |
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Brokers
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32 |
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4.08 |
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Information to be Supplied
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32 |
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4.09 |
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Expenses
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33 |
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ARTICLE 5 COVENANTS
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33 |
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5.01 |
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Interim Operations
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33 |
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5.02 |
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Shareholders Meeting
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37 |
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5.03 |
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Filings and Consents
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38 |
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5.04 |
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Access to Information
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39 |
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5.05 |
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Notification of Certain
Matters
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39 |
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5.06 |
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Public Announcements
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39 |
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5.07 |
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Indemnification; Directors’ and
Officers’ Insurance
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40 |
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5.08 |
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Further Assurances; Reasonable Best
Efforts
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42 |
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5.09 |
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[Intentionally Omitted]
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42 |
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5.10 |
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No Solicitation
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42 |
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5.11 |
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Third Party Standstill
Agreements
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44 |
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5.12 |
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SEC Reports
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44 |
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5.13 |
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Delisting
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44 |
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5.14 |
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Financing
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44 |
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5.15 |
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Rights Agreement
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45 |
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5.16 |
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Shareholder Litigation
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45 |
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5.17 |
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Conveyance Taxes
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46 |
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5.18 |
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Special Meeting
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46 |
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5.19 |
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State Takeover Laws
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46 |
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5.20 |
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Transition Assistance
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46 |
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5.21 |
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Termination of Agreements
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46 |
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ARTICLE 6 CONDITIONS TO CONSUMMATION
OF THE MERGER
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46 |
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6.01 |
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Conditions to the Obligations of Each
Party
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46 |
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6.02 |
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Conditions to Obligations of Parent,
Merger Sub and Infor
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47 |
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6.03 |
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Conditions to Obligation of the
Company
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49 |
ii
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ARTICLE 7 TERMINATION
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49 |
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7.01 |
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Termination by Mutual Consent
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49 |
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7.02 |
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Termination by Parent, Merger Sub, Infor
or the Company
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50 |
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7.03 |
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Termination by Parent, Merger Sub and
Infor
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50 |
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7.04 |
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Termination by the Company
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51 |
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7.05 |
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Effect of Termination
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51 |
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ARTICLE 8
MISCELLANEOUS
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52 |
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8.01 |
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Payment of Fees and Expenses
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52 |
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8.02 |
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Guarantee
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53 |
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8.03 |
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No Survival
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53 |
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8.04 |
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Modification or Amendment
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53 |
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8.05 |
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Entire Agreement; Assignment
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53 |
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8.06 |
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Validity
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54 |
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8.07 |
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Notices
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54 |
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8.08 |
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Governing Law
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55 |
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8.09 |
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Descriptive Headings
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55 |
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8.10 |
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Counterparts
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55 |
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8.11 |
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Certain Definitions
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55 |
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8.12 |
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Specific Performance
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55 |
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8.13 |
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Extension; Waiver
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56 |
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8.14 |
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Third-Party Beneficiaries
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56 |
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8.15 |
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Severability
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56 |
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8.16 |
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Submission to Jurisdiction
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56 |
iii
AGREEMENT AND PLAN OF
MERGER
THIS AGREEMENT AND PLAN OF
MERGER (this “ Agreement ”), dated as of January
26, 2005, is entered into by and among MAPICS, Inc., a Georgia
corporation (the “ Company ”), Magellan Merger
Sub, Inc., a Georgia corporation (“ Merger Sub
”), Infor International Limited, a Cayman Islands company
(“ Infor ”), and Infor Global Solutions Topco
Ltd., a Cayman Islands company (“ Parent
”).
RECITALS
WHEREAS, a special committee
of the board of directors of the Company, consisting solely of
disinterested directors (the “ Special Committee
”), subject to the terms and conditions set forth herein, has
(i) declared the advisability of this Agreement and the Merger,
(ii) recommended that the board of directors of the Company (the
“ Company Board ”) approve this Agreement, and
(iii) received a written opinion of the Financial Advisor (as
defined in Section 3.20 ) as set forth in Section
3.20 herein;
WHEREAS, the Company Board,
based upon the recommendation of the Special Committee and subject
to the terms and conditions set forth herein, has (i) declared the
advisability of this Agreement and the Merger and approved this
Agreement and the Merger, and (ii) resolved to recommend approval
and adoption of this Agreement and the Merger by the shareholders
of the Company;
WHEREAS, the board of
directors of Merger Sub has (i) declared the advisability of this
Agreement and the Merger, (ii) approved this Agreement and the
Merger, and (iii) resolved to recommend approval and adoption of
this Agreement and the Merger by the shareholders of Merger
Sub;
WHEREAS, Magellan Holdings,
Inc., the sole shareholder of Merger Sub and a direct, wholly-owned
subsidiary of Infor, has approved this Agreement and the
Merger;
WHEREAS, Infor and Merger Sub
are indirect subsidiaries of Parent, and the consummation of the
Merger is and will be of direct benefit to Parent;
WHEREAS, the Special
Committee, the Company Board and the board of directors of Merger
Sub have approved the merger of Merger Sub with and into the
Company, with the Company as the surviving corporation, upon the
terms and subject to the conditions set forth in this Agreement and
the Georgia Business Corporation Code (the “ GBCC
”), whereby (i) each issued and outstanding share of the
common stock, par value $.01 per share (the “ Common
Shares ”), of the Company (other than Common Shares to be
canceled pursuant to Section 2.01(b) and Dissenting Shares
(as defined in Section 2.01(d)) ), shall be converted into
the right to receive the Merger Consideration (as defined in
Section 2.01(a) ), (ii) each Cash-Pay Option (as defined in
Section 2.02(b) ) shall be converted into the right to
receive the Cash-Pay Option Consideration (as defined in Section
2.02(b) ), (iii) each Warrant (as defined in Section
2.02(d) ) shall be converted into the right to receive the
Warrant Consideration (as defined in Section 2.02(d) ), (iv)
each Purchase Plan Cash Option (as defined in Section
2.02(e) ) shall be converted into the right to receive the
Purchase Plan Cash Option Consideration (as defined in
Section
2.02(e) ), and (v) each DSIP
Deferred Right (as defined in Section 2.02(f) ) shall be
converted into the right to receive the DSIP Deferred Grant
Consideration (as defined in Section 2.02(f) );
and
WHEREAS, the Company, Merger
Sub, and Infor desire to make certain representations, warranties,
covenants and agreements in connection with the Merger, and also to
prescribe various conditions to the Merger.
NOW, THEREFORE, in
consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth herein, the parties
hereto agree as follows:
ARTICLE 1
THE MERGER
1.01 The Merger . At
the Effective Time (as defined in Section 1.02 ), subject to
the terms and conditions of this Agreement and in accordance with
the provisions of the GBCC, Merger Sub shall be merged (the “
Merger ”) with and into the Company. Following the
Merger, the separate corporate existence of Merger Sub shall cease,
and the Company shall continue as the surviving corporation
(sometimes hereinafter referred to as the “ Surviving
Corporation ”) and shall continue to be governed by the
laws of the State of Georgia.
1.02 Effective Time .
As soon as practicable following the Closing (as defined in
Section 1.07 ), the Company will cause a Certificate of
Merger substantially in the form attached hereto as Exhibit
1.02 (the “ Certificate of Merger ”) to be
duly executed, acknowledged and filed, in the manner required by
the GBCC, with the Secretary of State of the State of Georgia, and
the parties shall take such other and further actions as may be
required by law to make the Merger effective. The date and time the
Merger becomes effective in accordance with applicable law is
referred to herein as the “ Effective Time
.”
1.03 Effects of the
Merger . The Merger shall have the effects set forth herein, in
the Certificate of Merger and in the GBCC. Without limiting the
generality of the foregoing, and subject thereto, at the Effective
Time, all the properties, rights, privileges, powers and franchises
of the Company and the Merger Sub shall vest in the Surviving
Corporation, and all debts, liabilities and duties of the Company
and the Merger Sub shall become the debts, liabilities and duties
of the Surviving Corporation.
1.04 Articles of
Incorporation and Bylaws of the Surviving Corporation
.
(a) The Articles of
Incorporation of Merger Sub, as in effect immediately prior to the
Effective Time, shall be the Articles of Incorporation of the
Surviving Corporation until duly amended; provided that such
Articles of Incorporation shall be amended to reflect that the name
of the Surviving Corporation shall be “MAPICS,
Inc.”
(b) The Bylaws of Merger Sub,
as in effect immediately prior to the Effective Time, shall be the
Bylaws of the Surviving Corporation, until duly amended.
2
1.05 Directors . The
directors of Merger Sub immediately prior to the Effective Time
shall be the initial directors of the Surviving Corporation and
shall hold office until their respective successors are duly
elected and qualified, or their earlier death, resignation or
removal in accordance with applicable law and the Surviving
Corporation’s Articles of Incorporation and
Bylaws.
1.06 Officers . The
officers of Merger Sub immediately prior to the Effective Time
shall be the initial officers of the Surviving Corporation and
shall hold office until their respective successors are duly
elected and qualified, or their earlier death, resignation or
removal.
1.07 Closing . Subject
to the conditions contained in this Agreement, the closing of the
Merger (the “ Closing ”) shall take place (a) at
the offices of Kirkland & Ellis, 153 East 53 rd
Street, New
York, New York 10022, on the day immediately following the last to
occur of (i) March 14, 2005 and (ii) the third business day
following the satisfaction (or waiver if permissible) of the
conditions set forth in Article 6 that by their terms are
not to be satisfied at the Closing or (b) at such other place and
time and/or on such other date as the Company and Merger Sub may
agree in writing. The date on which the Closing occurs is
hereinafter referred to as the “ Closing Date
.”
1.08 Additional
Actions . If, at any time after the Effective Time, the
Surviving Corporation shall consider or be advised that any deeds,
bills of sale, assignments or assurances in law or any other acts
are necessary or desirable to vest, perfect or confirm, of record
or otherwise, in the Surviving Corporation its right, title or
interest in, to or under any of the rights, properties or assets of
the Company or Merger Sub, the Company and its officers and
directors shall be deemed to have granted to the Surviving
Corporation an irrevocable power of attorney to execute and deliver
all such deeds, assignments and assurances in law and to take all
acts necessary, proper or desirable to vest, perfect or confirm
title to and possession of such rights, properties or assets in the
Surviving Corporation, and the officers and directors of the
Surviving Corporation are authorized in the name of the Company to
take any and all such action.
ARTICLE 2
EFFECT OF THE MERGER ON
THE CAPITAL STOCK
OF THE COMPANY AND MERGER
SUB
2.01 Effect on Shares of
Capital Stock .
(a) Common Shares of the
Company . As of the Effective Time, by virtue of the Merger and
without any action on the part of the holder of any Common Shares,
the Company or Merger Sub, each Common Share that is issued and
outstanding immediately prior to the Effective Time (other than (i)
Dissenting Shares, and (ii) those Common Shares to be canceled
pursuant to Section 2.01(b) ) shall be canceled and
extinguished and converted into the right to receive $12.75 in cash
(the “ Merger Consideration ”), payable to the
holder thereof, without interest or dividends thereon, less any
applicable withholding of taxes, in the manner provided in
Section 2.03 . All such Common Shares, when so converted,
shall no longer be outstanding and shall automatically be canceled
and each holder of a certificate or certificates representing any
such Common Shares shall cease to have any rights with respect
thereto, except the right to receive the consideration specified in
the preceding sentence.
3
(b) Cancellation of
Certain Common Shares . As of the Effective Time, by virtue of
the Merger and without any action on the part of the holder of any
Common Shares, the Company or Merger Sub, each Common Share that is
owned by the Company or any wholly owned subsidiary as treasury
stock or otherwise or owned by Merger Sub or Infor or any of their
respective subsidiaries immediately prior to the Effective Time
shall automatically be canceled and shall cease to exist, and no
cash or other consideration shall be delivered or deliverable in
exchange therefor.
(c) Capital Stock of
Merger Sub . As of the Effective Time, each share of common
stock, par value $.01 per share, of Merger Sub (“ Merger
Sub Common Stock ”) issued and outstanding immediately
prior to the Effective Time shall, by virtue of the Merger and
without any action on the part of the holders of Merger Sub Common
Stock, the Company or Merger Sub, be converted into one validly
issued, fully paid and non-assessable share of common stock, par
value $.01 per share, of the Surviving Corporation (“
Surviving Corporation Common Stock ”). Each
certificate that, immediately prior to the Effective Time,
represented issued and outstanding shares of Merger Sub Common
Stock shall, from and after the Effective Time, automatically and
without the necessity of presenting the same for exchange,
represent the shares of the Surviving Corporation capital stock
into which such shares have been converted pursuant to the terms
hereof; provided, however, that the record holder thereof shall
receive, upon surrender of any such certificate, a certificate
representing the shares of Surviving Corporation Common Stock into
which the shares of Merger Sub Common Stock formerly represented
thereby shall have been converted pursuant to the terms
hereof.
(d) Dissenting Shares
. Notwithstanding anything in this Agreement to the contrary, any
Common Shares issued and outstanding immediately prior to the
Effective Time and held by a holder (a “ Dissenting
Shareholder ”) who timely delivers to the Company such
holder’s notice of intent to demand payment for such
holder’s shares if the Merger is effected, thereafter does
not vote in favor of the Merger or consent thereto in writing and
who otherwise properly demands appraisal for such Common Shares in
accordance with the GBCC (“ Dissenting Shares ”)
shall not be converted into a right to receive the Merger
Consideration at the Effective Time in accordance with Section
2.01(a) hereof, but shall represent and become the right to
receive such consideration as may be determined to be due to such
Dissenting Shareholder pursuant to the laws of the State of
Georgia, unless and until such holder fails to perfect or withdraws
or otherwise loses such holder’s right to appraisal and
payment under the GBCC. If, after the Effective Time, such holder
fails to perfect or withdraws or otherwise loses such
holder’s right to appraisal, such former Dissenting Shares
held by such holder shall be treated as if they had been converted
as of the Effective Time into a right to receive, upon surrender as
provided above, the Merger Consideration, without any interest or
dividends thereon, in accordance with Section 2.01(a) . The
Company shall give Merger Sub prompt notice of any demands received
by the Company for appraisal of Common Shares, withdrawals of such
demands and any other instruments served pursuant to the GBCC and
received by the Company, and Merger Sub shall have the right to
direct all negotiations and proceedings with respect to such
demands. The Company shall not make any payment with respect to, or
settle or offer to settle, any such demands, except with the prior
written consent of Merger Sub, such consent not to be unreasonably
withheld or delayed.
4
2.02 Options; Warrants;
Stock Plans .
(a) For purposes of this
Agreement, the term “ Option ” means each
outstanding unexercised option to purchase Common Shares, whether
or not then vested or fully exercisable, granted on or prior to the
date hereof to any current or former employee or director of the
Company or any subsidiary of the Company or any other person,
whether under any stock option plan or otherwise (including,
without limitation, under the Marcam Corporation 1994 Stock Plan,
as amended; the Marcam Corporation Amended and Restated 1987 Stock
Plan, as amended; the MAPICS, Inc. Amended and Restated 1998
Non-Employee Directors Stock Incentive Plan, as amended (the
“ DSIP ”); the MAPICS, Inc. Amended and Restated
1998 Non-Employee Director Stock Option Plan, as amended; the
MAPICS, Inc. Amended and Restated 1998 Long-Term Incentive Plan, as
amended; the Symix Systems, Inc. Non-Qualified Stock Option Plan
for Key Employees and Directors, as amended; and the Frontstep,
Inc. 1999 Non-Qualified Stock Option Plan for Key Employees, as
amended) (collectively, the “ Stock Plans
”).
(b) The Company shall take
all actions necessary so that (i) immediately prior to the
Effective Time, each outstanding Option granted under the Stock
Plans held by those holders of record listed on the Option
Schedule included as part of Section 3.03(a) of the
Company Disclosure Schedule under the heading “Cash-Pay
Options” (the “ Cash-Pay Options ”) shall
become immediately vested and exercisable in full and (ii) at the
Effective Time, all Options shall be canceled, in each case, in
accordance with and pursuant to the terms of the Stock Plans under
which such Options were granted. In consideration of such
cancellation, each holder of a Cash-Pay Option canceled in
accordance with this Section 2.02(b) will be entitled to
receive in settlement of such Cash-Pay Option as promptly as
practicable following the Effective Time, but in no event later
than 10 business days after the Effective Time, a cash payment from
the Payment Fund (as defined in Section 2.03 ), subject to
any required withholding of taxes, equal to the product of (i) the
total number of Common Shares otherwise issuable upon exercise of
such Cash-Pay Option and (ii) the Merger Consideration per Common
Share less the applicable exercise price per Common Share otherwise
issuable upon exercise of such Cash-Pay Option (the “
Cash-Pay Option Consideration ”); provided, however,
that with respect to any person subject to Section 16 of the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), any such amount shall be paid as soon
as practicable after the first date payment can be made without
liability to such person under Section 16(b) of the Exchange Act.
The Company Board will fully accelerate the vesting schedule of the
Options issued under the Company’s Stock Plans.
(c) [Intentionally
Omitted]
(d) For purposes of this
Agreement, the term “ Warrant ” means each
outstanding unexercised warrant to purchase Common Shares granted
on or prior to the date hereof to any person (including, without
limitation, pursuant to that certain Common Share Purchase Warrant
dated February 18, 2003, pursuant to which the holder thereof is
entitled to purchase 134,270 Common Shares at an exercise price of
$7.81 per share). The Company shall take all actions necessary so
that, at the Effective Time, each Warrant shall be canceled, in
each
5
case, in accordance with and pursuant to
the terms of each such Warrant. In consideration of such
cancellation, each holder of a Warrant canceled in accordance with
this Section 2.02(d) will be entitled to receive in
settlement of such Warrant as promptly as practicable following the
Effective Time, but in no event later than 10 business days after
the Effective Time, a cash payment from the Payment Fund, subject
to any required withholding of taxes, equal to the product of (i)
the total number of Common Shares otherwise issuable upon exercise
of such Warrant and (ii) the Merger Consideration per Common Share
less the applicable exercise price per Common Share otherwise
issuable upon exercise of such Warrant (the “ Warrant
Consideration ”).
(e) With respect to the
Company’s 2000 Employee Stock Purchase Plan, as amended (the
“ Purchase Plan ”), the Company shall (i) take
all actions thereunder to terminate all outstanding options under
the Purchase Plan (each, a “ Purchase Plan Cash Option
” and collectively, the “ Purchase Plan Cash
Options ”) at the close of business on the day
immediately prior to the Effective Time (including the refund of
all payroll deductions not used to purchase stock as required by
Article 15 of the Purchase Plan) and (ii) in consideration for such
termination, provide each of the participants thereunder, in lieu
of Common Shares that would have otherwise been issuable upon the
exercise of the outstanding Purchase Plan Cash Options, a cash
payment from the Payment Fund, subject to any required withholding
of taxes, equal to the product of (A) the total number of Common
Shares the participant would have otherwise been issued upon the
exercise of the Purchase Plan Cash Options (determined for this
purpose by dividing the dollar amount of the payroll deductions
refunded to the participant as provided in clause (i) above which
would have otherwise been eligible to purchase Common Shares under
the Purchase Plan by 85% of the fair market value of a Common Share
(as determined in accordance with the Purchase Plan) on the first
business day of the applicable Payment Period (as defined in the
Purchase Plan)) and (B) the excess, if any, of the Merger
Consideration over 85% of the fair market value of a Common Share
on the first business day of the applicable Payment Period (the
“ Purchase Plan Cash Option Consideration ”);
provided, however, that with respect to any person subject to
Section 16(a) of the Exchange Act, any such amount shall be paid as
soon as practicable after the first date payment can be made
without liability to such person under Section 16(b) of the
Exchange Act.
(f) The Company shall (i)
take all actions necessary to cause the termination (effective as
of the close of business on the day immediately prior to the
Effective Time) of the rights of each participant in the DSIP who
has made an election under Section 6(d) of the DSIP to defer a
grant of Common Shares under the DSIP (such rights, the “
DSIP Deferred Rights ”) and (ii) in consideration for
such termination, provide each such participant, in lieu of Common
Shares that would have otherwise been issuable on the Deferred
Grant Date (as defined in the DSIP), a cash payment from the
Payment Fund, subject to any required withholding of taxes, equal
to the product of (A) the total number of Common Shares the
participant would have otherwise been issued on the Deferred Grant
Date and (B) the Merger Consideration (the “ DSIP Deferred
Grant Consideration ”); provided, however, that with
respect to any person subject to Section 16(a) of the Exchange Act,
any such amount shall be paid as soon as practicable after the
first date payment can be made without liability to such person
under Section 16(b) of the Exchange Act.
6
(g) Prior to the Effective
Time, the Company shall take all actions (including, if
appropriate, amending the terms of the relevant Stock Plans or the
Purchase Plan or amending or waiving relevant agreements providing
for vesting conditions on Common Shares or Options therefor) that
are necessary to give effect to the transactions contemplated by
this Section 2.02 .
(h) Except as otherwise
provided herein or agreed to in writing by Merger Sub and the
Company or as may be necessary to administer Options remaining
outstanding following the Effective Time, the Stock Plans and the
Purchase Plan shall terminate effective as of the Effective Time
and no participant in the Stock Plans or the Purchase Plan shall
thereafter be granted any rights thereunder to acquire any equity
securities of the Company, the Surviving Corporation, Infor or any
subsidiary of any of the foregoing.
(i) The Company covenants
that prior to the Effective Time it will take all actions necessary
under that certain SEC no-action letter, dated January 12, 1999, to
Skadden, Arps, Slate, Meagher & Flom, to provide that the
cancellation and cash-out and conversion of Cash-Pay Options, the
Purchase Plan Cash Options and the DSIP Deferred Rights, pursuant
to this Section 2.02 , will qualify for exemption under Rule
16b-3(d) or (e), as applicable, under the Exchange Act.
2.03 Payment for Common
Shares, Options and Warrants in the Merger .
(a) Prior to the Effective
Time, Merger Sub shall appoint a commercial bank or trust company
reasonably acceptable to the Company to act as exchange and paying
agent, registrar and transfer agent (the “ Agent
”) for the purpose of (i) exchanging certificates
representing, immediately prior to the Effective Time, Common
Shares for the aggregate Merger Consideration, (ii) making payment
of the aggregate Cash-Pay Option Consideration in exchange for the
cancellation of all Cash-Pay Options, (iii) making payment of the
aggregate Warrant Consideration in exchange for the cancellation of
all Warrants, (iv) making payment of the aggregate Purchase Plan
Cash Option Consideration in exchange for the cancellation of all
Purchase Plan Cash Options, and (v) making payment of the aggregate
DSIP Deferred Grant Consideration in exchange for the cancellation
of all DSIP Deferred Rights. Subject to the Company’s
obligations to deposit cash in the Payment Fund described in this
Section 2.03(a) , at or prior to the Effective Time, Merger
Sub shall deposit, or Merger Sub shall otherwise take all steps
necessary to cause to be deposited, in trust with the Agent for the
benefit of the holders of Common Shares, Cash-Pay Options,
Warrants, Purchase Plan Cash Options and DSIP Deferred Rights, as
the case may be, cash in an aggregate amount equal to (i) the sum
of (A) the product of (I) the number of Common Shares issued and
outstanding immediately prior to the Effective Time and entitled to
receive the Merger Consideration in accordance with Section
2.01(a) and (II) the Merger Consideration and (B) the amount
necessary for the payment in full of the Cash-Pay Option
Consideration, the Warrant Consideration, the Purchase Plan Cash
Option Consideration and the DSIP Deferred Grant Consideration less
(ii) the amount to be deposited by the Company as provided in this
Section 2.03(a) (such aggregate amount described in (i) and
(ii), together with the amount to be deposited by the Company as
provided in this Section 2.03(a) being hereinafter referred
to as the “ Payment Fund ”). Prior to the
Effective Time, the Company shall deposit, or the Company shall
otherwise take all steps necessary to cause to be deposited, in
trust for the benefit of the holders of Common Shares, Cash Pay
Options, Warrants, Purchase Plan Cash Options and DSIP Deferred
Rights, as the case may be, cash in an aggregate amount
7
(subject to the following sentence) of
not less than $24 million with the Agent for deposit into the
Payment Fund (the “ Company Cash Deposit ”),
which deposit shall be used solely and exclusively for purposes of
paying the consideration specified in Section 2.02 , and
shall not be used to satisfy any other obligations of the Company
or any of its subsidiaries; provided, however, that the Company
shall retain such portion of the Company Cash Deposit as is
necessary for purposes of paying the consideration specified in
Section 2.02 to the holders of Cash Pay Options, Purchase
Plan Cash Options, Warrants and DSIP Deferred Rights, which
consideration shall be paid directly by the Company. Without
limiting the Company’s obligations set forth in the preceding
sentence, the Company shall, as of the Effective Time, have
sufficient unrestricted domestic cash on hand to pay (i) any unpaid
Expenses contemplated by Section 3.28 (including, without
limitation, those incurred or which may be incurred by the
Financial Advisor and counsel to the Company) and Expenses incurred
in connection with any litigation with respect to, arising from or
related to the Transactions, (ii) any compensation, remuneration or
other amounts which may be payable by the Company in connection
with the Change of Control Agreements (as defined in Section
3.10 ) (assuming that each employee of the Company that is a
party to a Change of Control Agreement is terminated without Cause
immediately following the consummation of the Merger) and (iii) the
cost of the Tail Policy (as defined in Section 5.07
(d) ), and shall use commercially reasonable efforts to
deposit all other available domestic cash of the Company (taking
into account the reasonable short-term working capital needs of the
Company) with the Agent for deposit into the Payment Fund. For
purposes of determining the aggregate amount of cash to be
deposited by Merger Sub pursuant to this Section 2.03(a) ,
Merger Sub shall assume that no holder of Common Shares will
perfect their right to appraisal of their Common Shares under the
GBCC. The Agent shall, pursuant to instructions provided by Merger
Sub, make the payments provided for in Section 2.01 and
Section 2.02 of this Agreement out of the Payment Fund (it
being understood that any and all interest earned on funds made
available to the Agent pursuant to this Agreement shall be turned
over to the party depositing such funds with the Agent). The
Payment Fund shall not be used for any other purpose except as
provided in this Agreement.
(b) Promptly after the
Effective Time, but in no event later than 10 business days after
the Effective Time, the Surviving Corporation shall cause the Agent
to mail to each record holder of certificates (the “
Certificates ”) that immediately prior to the
Effective Time represented Common Shares (i) a notice of the
effectiveness of the Merger, (ii) a form letter of transmittal
which shall specify that delivery shall be effected, and risk of
loss and title to the Certificates shall pass, only upon proper
delivery of the Certificates to the Agent, and (iii) instructions
for use in surrendering such Certificates and receiving the Merger
Consideration in respect thereof.
(c) Upon surrender to the
Agent of a Certificate, together with such letter of transmittal
duly executed and completed in accordance with the instructions
thereto, the holder of such Certificate shall be entitled to
receive, within 10 business days after such surrender, in exchange
therefor, in the case of Common Shares (other than Common Shares to
be canceled pursuant to Section 2.01(b) ), cash in an amount
equal to the product of (i) the number of Common Shares formerly
represented by such Certificate and (ii) the Merger Consideration,
which amounts shall be paid by Agent by check or wire transfer in
accordance with the instructions provided by such holder. No
interest or dividends will be paid or accrued on the consideration
payable upon the surrender of any Certificate. If the consideration
provided for
8
herein is to be delivered in the name of
a person other than the person in whose name the Certificate
surrendered is registered, it shall be a condition of such delivery
that the Certificate so surrendered shall be properly endorsed or
otherwise in proper form for transfer and that the person
requesting such delivery shall pay any transfer or other taxes
required by reason of such delivery to a person other than the
registered holder of the Certificate, or that such person shall
establish to the satisfaction of the Surviving Corporation that
such tax has been paid or is not applicable. Until surrendered in
accordance with the provisions of this Section 2.03 , each
Certificate (other than Certificates representing Dissenting Shares
or Common Shares to be canceled pursuant to Section 2.01(b)
) shall represent, for all purposes, in the case of Certificates
representing Common Shares (other than Common Shares to be canceled
pursuant to Section 2.01(b) ), only the right to receive an
amount in cash equal to the Merger Consideration multiplied by the
number of Common Shares formerly evidenced by such Certificate
without any interest or dividends thereon.
(d) The consideration issued
upon the surrender of Certificates in accordance with this
Agreement shall be deemed to have been issued in full satisfaction
of all rights pertaining to such Common Shares formerly represented
thereby. After the Effective Time, there shall be no transfers on
the stock transfer books of the Surviving Corporation of any Common
Shares that were outstanding immediately prior to the Effective
Time. If, after the Effective Time, Certificates are presented to
the Surviving Corporation, they shall be canceled and exchanged as
provided in this Article 2 .
(e) Any portion of the
Payment Fund (including any amounts that may be payable to the
former shareholders of the Company in accordance with the terms of
this Agreement) which remains unclaimed by the former shareholders
of the Company upon the 180 th day immediately
following the Closing Date shall be returned to the Surviving
Corporation, upon demand, and any former shareholders of the
Company who have not theretofore complied with this Article
2 shall, subject to Section 2.03(f) , thereafter look to
the Surviving Corporation only as general unsecured creditors
thereof for payment of any Merger Consideration, without any
interest or dividends thereon, that may be payable in respect of
each Common Share held by such shareholder. Following the Closing,
the Agent shall retain the right to invest and reinvest the Payment
Fund on behalf of the Surviving Corporation in securities listed or
guaranteed by the United States government or certificates of
deposit of commercial banks that have, or are members of a group of
commercial banks that has, consolidated total assets of not less
than $500,000,000 and the Surviving Corporation shall receive the
interest earned thereon.
(f) None of Merger Sub, the
Company or Agent shall be liable to a holder of Certificates or any
other person in respect of any cash delivered to a public official
pursuant to any applicable abandoned property, escheat or similar
law. If any Certificates shall not have been surrendered upon the
seventh anniversary of the Closing Date (or immediately prior to
such earlier date on which any Merger Consideration, dividends
(whether in cash, stock or property) or other distributions with
respect to Common Shares in respect of such Certificate would
otherwise escheat to or become the property of any Governmental
Authority (as defined in Section 3.06(b) ), any such shares,
cash, dividends or distributions in respect of such Certificate
shall, to the extent permitted by applicable law, become the
property of the Surviving Corporation, free and clear of all claims
or interests of any person previously entitled thereto.
9
(g) In the event any
Certificate shall have been lost, stolen or destroyed, upon the
making of an affidavit (in form and substance acceptable to the
Surviving Corporation) of that fact by the person (who shall be the
record owner of such Certificate) claiming such Certificate to be
lost, stolen or destroyed and, if required by the Surviving
Corporation, the posting by such person of a bond in such amount as
the Surviving Corporation may direct as indemnity against any claim
that may be made against it with respect to such Certificate, the
Agent will issue in exchange for such lost, stolen or destroyed
Certificate the Merger Consideration deliverable in respect thereof
pursuant to this Agreement.
(h) Each of the Agent, the
Surviving Corporation and Infor shall be entitled to deduct and
withhold from the consideration otherwise payable to any holder of
Common Shares, Options, Warrants, Purchase Plan Cash Options or
DSIP Deferred Rights pursuant to this Agreement such amounts as may
be required to be deducted or withheld with respect to the making
of such payment under the Internal Revenue Code of 1986, as amended
(the “ Code ”), or any applicable provision of
state, local or foreign tax law. To the extent that amounts are so
deducted or withheld and paid over to the appropriate taxing
authority by Agent, the Surviving Corporation or Infor, such
amounts shall be treated for all purposes of this Agreement as
having been paid to the person to whom such amounts would otherwise
have been paid.
ARTICLE 3
REPRESENTATIONS AND
WARRANTIES OF THE COMPANY
Except as set forth in the
Company’s SEC Reports (as defined below) publicly filed after
the filing date of the Company’s report on Form 10-K for the
fiscal year ended September 30, 2003 (regardless of whether any
representation or warranty in this Article 3 is expressly
qualified by a reference to such SEC Reports) or in the disclosure
schedule delivered by the Company to Merger Sub and Infor prior to
the execution of this Agreement (the “ Company Disclosure
Schedule ”) (it being agreed that any disclosure set
forth on any particular Section of the Company Disclosure Schedule
shall be deemed disclosed in another Section of the Company
Disclosure Schedule if disclosure with respect to the particular
Section is sufficient to make reasonably clear the relevance of the
disclosure to such other Section), the Company represents and
warrants to each of Merger Sub and Infor as of the date hereof and
as of the Effective Time that:
3.01 Organization and
Qualification . The Company and each of its subsidiaries (as
described in Section 3.05 ) is a corporation or limited
liability company, as the case may be, duly organized or formed, as
the case may be, validly existing and in good standing (to the
extent applicable) under the laws of its state or jurisdiction of
incorporation or formation, as the case may be, and has the
requisite power and authority to carry on its business as now being
conducted, except where the failure to be in good standing (to the
extent applicable) would not, individually or in the aggregate,
have a Company Material Adverse Effect (as defined below). Except
as set forth on Section 3.01 of the Company Disclosure
Schedule, the Company and each of its subsidiaries is duly
qualified or licensed as a foreign corporation to do business, and
is in good standing (to the extent applicable), in each
jurisdiction where the nature of its business makes such
qualification or licensing necessary, except where the failure to
be so qualified or licensed and in good standing (to the extent
applicable) would not, individually or in the
10
aggregate, have a Company Material
Adverse Effect. As used in this Agreement, the term “
Company Material Adverse Effect ” means any effect,
event, or change that (i) is, or is reasonably likely to be,
materially adverse to the business, financial condition or results
of operations of the Company and its subsidiaries, taken as a
whole, other than any Excluded Matters or (ii) prevents or
materially delays, or is reasonably likely to prevent or materially
delay, the ability of the Company and its subsidiaries to perform
in all material respects their obligations under this Agreement or
to consummate the transactions contemplated hereby (the “
Transactions ”) in accordance with the terms hereof,
other than any of the Excluded Matters described in clauses (c),
(e), (f) or (h) of the following sentence. As used in this
Agreement, “ Excluded Matters ” means any one or
more of the following effects, events or changes: (a) general
changes in economic conditions or changes in the software industry
generally which do not have a materially disproportionate effect on
the Company and its subsidiaries taken as a whole, (b) a change in
the market price or trading volume of the Common Shares, in and of
itself, or any change in the financial markets generally, (c) the
effect of any change arising in connection with any “act of
God” including, without limitation, weather, natural
disasters and earthquakes, hostilities, acts of war, sabotage or
terrorism or military actions or any escalation or material
worsening of any such hostilities, acts of war, sabotage or
terrorism or military actions, (d) the effect of any change caused
by the taking of any action required or expressly permitted by this
Agreement, (e) the effect of any change caused by the taking of any
action by the Company that has been approved in writing by Parent,
Infor or Merger Sub, (f) any change or effect resulting from a
change in accounting rules or procedures announced by the Financial
Accounting Standards Board, the SEC or any other accounting body
with authority to promulgate U.S. generally accepted accounting
principles, (g) resulting from a breach of this Agreement by
Parent, Infor or Merger Sub, (h) resulting from or arising out of
any change in any Law applicable to the Company or its industry or
(i) resulting from the public announcement of the
Transactions.
3.02 Charter Documents and
Bylaws . The Company has heretofore made available to Merger
Sub or its representatives a complete and correct copy of the
articles of incorporation and the bylaws of the Company in full
force and effect as of the date hereof. The Company is not in
violation of any of the provisions of its articles of incorporation
or bylaws. The Company has heretofore made available to Merger Sub
or its representatives a complete and correct copy of the articles
of incorporation and the bylaws (or equivalent organizational
documents) of each subsidiary of the Company in full force and
effect as of the date hereof. No subsidiary of the Company is in
material violation of any of the provisions of its articles of
incorporation or bylaws (or equivalent organizational
documents).
3.03 Capitalization
.
(a) The authorized capital
stock of the Company consists of 90,000,000 Common Shares and
1,000,000 shares of preferred stock, par value $1.00 per share (the
“ Preferred Stock ”), of which 30,000 shares
have been designated as Series F Junior Participating Preferred
Stock pursuant to the Amended and Restated Rights Agreement, dated
as of March 30, 1998, as amended, between the Company and SunTrust,
as rights agent (the “ Rights Agreement ”). As
of the close of business on January 24, 2005, (i) 26,152,052 Common
Shares were issued and outstanding (which amount includes the
353,684 treasury shares described in clause (v) below), (ii) no
shares of Preferred Stock were issued and outstanding, (iii)
6,083,588
11
Common Shares were reserved for issuance
pursuant to the Stock Plans, of which 4,404,997 Common Shares are
subject to outstanding Options, (iv) 500,000 Common Shares were
reserved for issuance pursuant to the Purchase Plan, of which
158,619 Common Shares remain available for sale thereunder, (v)
353,684 Common Shares were held by the Company in its treasury and
(vi) except as set forth in this Section 3.03 , the Company
has not issued or granted any rights with respect to any capital
stock of the Company or any rights or securities exercisable or
convertible therefor. The Company has outstanding Cash-Pay Options
pursuant to which an aggregate of 3,632,035 Common Shares are
issuable and the weighted average exercise price for such Cash-Pay
Options is $7.86056. Since the close of business on January 24,
2005, the Company has not taken any action which, if taken after
the date of this Agreement, would be prohibited under Section
5.01(b) . The Company has outstanding Warrants pursuant to
which an aggregate of 134,270 Common Shares are issuable and the
weighted average exercise price for such Warrants is $7.81. Except
as set forth in this Section 3.03 and the Rights Agreement
or as may exist or arise pursuant to the terms of the Purchase Plan
or the DSIP, there are not now, and at the Effective Time there
will not be, any options, warrants, calls, subscriptions, or other
rights, or other agreements or commitments of any character
relating to the issued or unissued capital stock of the Company or
obligating the Company to issue, transfer or sell any shares of
capital stock of, or other equity interests in, the Company or any
subsidiary of the Company. Section 3.03(a) of the Company
Disclosure Schedule sets forth the name of each holder of an
Option, together with the grant date, exercise price and number of
Common Shares issuable upon exercise of each such Option. All
issued and outstanding Common Shares are duly authorized, validly
issued, fully paid, non-assessable and free of preemptive rights.
All of the outstanding shares of capital stock of, or other equity
interests in, each subsidiary of the Company have been duly
authorized and validly issued and are fully paid and non-assessable
and, except as set forth on Section 3.03(a) of the Company
Disclosure Schedule, are owned by either the Company or another of
its wholly-owned subsidiaries, free and clear of all liens,
charges, claims or encumbrances. There are no outstanding options,
warrants, calls, subscriptions, convertible securities or other
rights, or other agreements or commitments, obligating any
subsidiary of the Company to issue, transfer or sell any shares of
its capital stock or other equity interests. There are no
outstanding obligations of the Company or any of its subsidiaries
to repurchase, redeem or otherwise acquire any shares of capital
stock of, or other equity interests in, the Company or any
subsidiary of the Company.
(b) Other than as set forth
on Section 3.03(b) of the Company Disclosure Schedule, to
the knowledge of the Company, there are no shareholders agreements,
voting trusts or other agreements or understandings relating to
voting or disposition of any shares of capital stock of the Company
or granting to any person or group of persons the right to elect,
or to designate or nominate for election, a director to the Company
Board.
3.04 Authority Relative to
this Agreement . The Company has the requisite corporate power
and authority to execute and deliver this Agreement, to perform its
obligations hereunder and, subject to the adoption of this
Agreement and the Merger by the holders of a majority of the
outstanding Common Shares entitled to vote thereon, to consummate
the Transactions pursuant to the GBCC. The execution and delivery
of this Agreement and the consummation of the Merger and the other
Transactions have been duly and validly authorized by all necessary
corporate action and no other corporate proceedings on the part of
the Company are necessary to authorize the Company’s
execution and delivery of this Agreement or to consummate
the
12
Transactions (other than the adoption of
this Agreement and the Merger by the holders of a majority of the
outstanding Common Shares entitled to vote thereon and the filing
or recordation of appropriate merger documents as required by the
GBCC). This Agreement has been duly and validly executed and
delivered by the Company, and (assuming this Agreement constitutes
a valid and binding obligation of Merger Sub and Infor) constitutes
the valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or
other similar laws relating to creditors’ rights generally
and to general principles of equity.
3.05 Company
Subsidiaries . Section 3.05 of the Company Disclosure
Schedule contains a correct and complete list of each subsidiary of
the Company and the jurisdiction in which each such subsidiary is
incorporated or organized. Section 3.05 of the Company
Disclosure Schedule sets forth for each subsidiary of the Company:
(i) its authorized capital stock or share capital; (ii) the number
of issued and outstanding shares of capital stock or share capital;
and (iii) the Company’s direct or indirect equity interest
therein. Except for equity interest in its subsidiaries, the
Company does not own, directly or indirectly, any capital stock or
other ownership interest in any Person. No subsidiary of the
Company owns, directly or indirectly, any capital stock or other
ownership interest in any Person, except for the capital stock
and/or other ownership interest in another wholly-owned subsidiary
of the Company.
3.06 No Violation;
Required Filings and Consents .
(a) The execution and
delivery by the Company of this Agreement does not, and the
performance of this Agreement by the Company and the consummation
of the Transactions will not, (i) conflict with or violate any
provision of the Company’s articles of incorporation or
bylaws or conflict with or violate any provision of the articles of
incorporation or bylaws or equivalent organization documents of any
subsidiary of the Company, (ii) assuming that all consents,
approvals, authorizations and other actions described in Section
3.06(b) have been obtained and all filings and obligations
described in Section 3.06(b) have been made or complied
with, conflict with or violate any foreign or domestic (federal,
state or local) law, statute, ordinance, rule, regulation, permit,
license, injunction, writ, judgment, decree or order (each, a
“ Law ” and, collectively, “ Laws
”) applicable to the Company or any of its subsidiaries or by
which any asset of the Company or any of its subsidiaries is bound
or affected, (iii) except as set forth in Section 3.06(a) of
the Company Disclosure Schedule, conflict with, result in any
breach of or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, or give to
others any right of termination, amendment, acceleration or
cancellation of, or require any payment under, or give rise to a
loss of any benefit to which the Company or any subsidiary of the
Company is entitled under any provision of any contract,
instrument, permit, concession, franchise, license, loan or credit
agreement, note, bond, mortgage, indenture, lease or other property
agreement, partnership or joint venture agreement or other legally
binding agreement, whether oral or written (each, a “
Contract ” and, collectively, “ Contracts
”), applicable to the Company or any such subsidiary or their
respective properties or assets or (iv) to the Company’s
knowledge, result in the creation or imposition of a lien, claim,
security interest or other charge, title imperfection or
encumbrance (each, a “ Lien ” and, collectively,
“ Liens ”) on any asset of the Company or any
subsidiary of the Company, except in the case of clauses (ii),
(iii) and (iv) of this Section 3.06(a) , to the extent that
any such conflict, violation, breach, default, right, loss or Lien
would not, individually or in the aggregate, have a Company
Material Adverse Effect.
13
(b) The execution and
delivery by the Company of this Agreement does not, and the
performance of this Agreement and the consummation by the Company
of the Transactions will not, require any consent, approval,
authorization or permit of, or filing with or notification to, any
domestic (federal, state or local) or foreign government or
governmental, regulatory or administrative authority, agency,
commission, board, bureau, court or instrumentality or arbitrator
of any kind (“ Governmental Authority ”), except
(i) for applicable requirements, if any, of the Exchange Act, the
Securities Act of 1933, as amended (the “ Securities
Act ”), the Nasdaq National Market (“ Nasdaq
”), the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
as amended (the “ HSR Act ”), and the rules and
regulations thereunder, any required consent, approval,
authorization, permit, filing or notification pursuant to
applicable foreign merger control or competition laws and
regulations and filing and recordation of appropriate documents for
the Merger as required by the GBCC, (ii) for any applicable
notification requirement with respect to the various transactions
contemplated under Section 2.02 and Section 2.03 with
respect to the Stock Plans and the Purchase Plan and (iii) where
the failure to obtain such consents, approvals, authorizations or
permits, or to make such filings or notifications, would not,
individually or in the aggregate, have a Company Material Adverse
Effect.
3.07 SEC Reports and
Financial Statements .
(a) The Company has filed all
forms, reports, statements, schedules and other documents due to be
filed at any time on or after September 30, 2001 (the “
SEC Reports ”) with the Securities and Exchange
Commission (the “ SEC ”) required to be filed by
it pursuant to the federal securities laws and the SEC rules and
regulations thereunder. The Company has made available to Merger
Sub or its representatives copies of all such SEC Reports. Except
as described in Section 3.07(a) of the Company Disclosure
Schedule, the SEC Reports (i) were prepared in all material
respects in accordance with the requirements of the Securities Act,
the Exchange Act and the published rules and regulations of the SEC
thereunder, each as applicable to such SEC Reports and (ii) did not
as of the time they were filed contain any untrue statement of a
material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made,
not misleading, except to the extent corrected prior to the date
hereof by a subsequently filed SEC Report. No subsidiary of the
Company is subject to the periodic reporting requirements of the
Exchange Act. As of the date hereof, there are no material
unresolved comments issued by the staff of the SEC with respect to
any of the SEC Reports.
(b) Except as described in
Section 3.07(b) of the Company Disclosure Schedule, each of
the consolidated financial statements (including, in each case, any
notes thereto) of the Company included in the SEC Reports has been
prepared in all material respects in accordance with the published
rules and regulations of the SEC (including Regulation S-X) and in
accordance with United States generally accepted accounting
principles applied on a consistent basis throughout the periods
indicated (except as otherwise stated in such financial statements,
including the related notes) and each fairly presents, in all
material respects, the consolidated financial position, results of
operations and cash flows of the Company and its
14
consolidated subsidiaries as at the
respective dates thereof and for the respective periods indicated
therein, except as otherwise set forth in the notes thereto
(subject, in the case of unaudited statements, to the absence of
complete footnote disclosure and to normal and recurring year-end
adjustments, none of which, individually or in the aggregate, has
had or could reasonably be expected to have a Company Material
Adverse Effect). Except as set forth on Section 3.07(b) of
the Company Disclosure Schedule, neither the Company nor any of its
subsidiaries have any outstanding indebtedness for borrowed
money.
(c) Except as disclosed in
Section 3.07(c) of the Company Disclosure Schedule, neither
the Company nor any of its subsidiaries is subject to any
liabilities or obligations of any kind or nature (whether accrued,
absolute, contingent, determinable or otherwise), except
liabilities set forth on the face of the September 30, 2004 balance
sheet included in the Company’s report on Form 10-K for the
year ended September 30, 2004, liabilities incurred in the ordinary
course of business and consistent with past practice, liabilities
incurred in connection with the Transactions and liabilities that
have not had and would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse
Effect.
(d) Except as set forth in
Section 3.07(d) of the Company Disclosure Schedule, none of
the Company or any of its subsidiaries is indebted to any director
or officer of the Company or any of its subsidiaries (except for
amounts due as normal salaries and bonuses or in reimbursement of
ordinary business expenses and directors’ fees) and no such
person is indebted to the Company or any of its subsidiaries, and
there have been no other transactions of the type required to be
disclosed pursuant to Items 402 or 404 of Regulation S-K
promulgated by the SEC.
(e) Except as set forth in
Section 3.07(e) of the Company Disclosure Schedule, the
Company has heretofore furnished or made available to Merger Sub or
its representatives a complete and correct copy of any amendments
or modifications which have not yet been filed with the SEC to SEC
Reports which previously have been filed by the Company with the
SEC pursuant to the Securities Act and the rules and regulations
promulgated thereunder or the Exchange Act and the rules and
regulations promulgated thereunder.
3.08 Compliance with
Applicable Laws . Except as set forth on Section 3.08 of
the Company Disclosure Schedule, (i) neither the Company nor any of
its subsidiaries is in violation of any Order (as defined in
Section 6.01(b) ) of any Governmental Authority or any Law
of any Governmental Authority applicable to the Company or any
subsidiary of the Company or any of their respective properties or
assets and (ii) the business operations of the Company and its
subsidiaries have been conducted in compliance with all Laws of
each Governmental Authority, except in each case for possible
violations which would not, individually or in the aggregate, have
a Company Material Adverse Effect.
3.09 Absence of Certain
Changes or Events . Except as set forth in Section 3.09
of the Company Disclosure Schedule or as contemplated by this
Agreement, since September 30, 2004, the Company and its
subsidiaries have conducted their businesses only in the ordinary
course of business and in a manner consistent with past practice
and there has not been:
(a) any material change in
any method of accounting or accounting practice by the Company or
any of its subsidiaries, except for any such change required by
reason of a concurrent change in United States generally accepted
accounting principles;
15
(b) any declaration, setting
aside or payment of any dividend (whether in cash, stock or other
property) or other distribution in respect of the Company’s
securities or any redemption, purchase or other acquisition of any
of the Company’s securities;
(c) any issuance or the
authorization of any issuance of any securities in respect of, in
lieu of or in substitution for shares of its capital
stock;
(d) any amendment of any
material term of any outstanding security of the Company or any of
its subsidiaries;
(e) any issuance by the
Company or any of its subsidiaries of any notes, bonds or other
debt securities or any capital stock or other equity securities or
any securities convertible, exchangeable or exercisable into any
capital stock or other equity securities, except for (i) the
granting of Options and (ii) the issuance of any Common Shares
pursuant to the exercise of any Options or Warrants;
(f) any incurrence,
assumption or guarantee by the Company or any of its subsidiaries
of any indebtedness for borrowed money;
(g) except in the ordinary
course of business consistent with past practice (and in no event
in connection with the incurrence, assumption or guarantee of any
indebtedness for borrowed money), any creation or assumption by the
Company or any of its subsidiaries of any Lien on any material
assets;
(h) except for loans or
advances to employees for reimbursable business expenses and travel
advances incurred in the ordinary course of business consistent
with past practice, any making of any loan, advance or capital
contributions to or investment in any entity or person, other than
loans, advances or capital contributions to or investments in
wholly owned subsidiaries;
(i) any entry into any
Contract related to the acquisition or disposition of any business
or any material assets;
(j) any effect, event or
change that has had or is reasonably likely to have a Company
Material Adverse Effect;
(k) any material increase in
the benefits under, or the establishment, material amendment or
termination of, any Benefit Plan (as defined in Section
3.13(b) ) covering current or former employees, officers or
directors of the Company or any of its subsidiaries, or any
material increase in the compensation payable or to become payable
to or any other material change in the employment terms for any
directors or officers of the Company or any of its subsidiaries or
any other employee reasonably expected to earn noncontingent cash
compensation in excess of $100,000 per year;
16
(l) any entry by the Company
or any of its subsidiaries into any employment, consulting,
severance, termination, change-of-control or indemnification
agreement with any director or officer of the Company or any of its
subsidiaries or entry into any such agreement with any person for a
noncontingent cash amount reasonably expected to be in excess of
$100,000 per year or outside the ordinary course of business;
or
(m) any authorization of, or
agreement by the Company or any of its subsidiaries to take, any of
the actions described in this Section 3.09 , except as
expressly contemplated by this Agreement.
3.10 Change of Control
. Section 3.10 of the Company Disclosure Schedule sets forth
the amount of any compensation or remuneration of any kind or
nature which is or may become payable to any Employee (as defined
in Section 3.13(a) ), in whole or in part, by reason of the
execution and delivery of this Agreement or the consummation of the
Transactions. For purposes hereof, the term “ Change of
Control Agreements ” shall mean those agreements set
forth in item #1 of Section 3.10 of the Company Disclosure
Schedule.
3.11 Litigation .
Schedule 3.11 sets forth, as of the date hereof, each suit,
claim, action, proceeding or investigation pending or, to the
knowledge of the Company, threatened against the Company or any of
its subsidiaries, at law or in equity, that could reasonably be
expected to result in Losses to the Company in excess of $50,000.
There is no suit, claim, action, proceeding or investigation
pending or, to the knowledge of the Company, threatened against the
Company or any of its subsidiaries, at law or in equity, that,
individually or in the aggregate, would reasonably be expected to
have a Company Material Adverse Effect. As of the date hereof,
neither the Company nor any of its subsidiaries is subject to any
outstanding order, writ, injunction or decree.
3.12 Information in Proxy
Statement .
(a) Each document required to
be filed by the Company with the SEC in connection with the
Transactions (the “ Company Disclosure Documents
”), including, without limitation, the proxy or information
statement of the Company containing information required by
Regulation 14A under the Exchange Act, and, if applicable, Rule
13e-3 and Schedule 13E-3 under the Exchange Act (together with all
amendments and supplements thereto, the “ Proxy
Statement ”), to be filed with the SEC in connection with
the Merger, will, when filed, comply as to form in all material
respects with the applicable requirements of the Exchange Act. The
representations and warranties contained in this Section
3.12(a) will not apply to statements or omissions included in
the Company Disclosure Documents based upon information furnished
to the Company in writing by Merger Sub or Infor or any of their
representatives specifically for use therein.
(b) At the time the Proxy
Statement or any amendment or supplement thereto is first mailed to
shareholders of the Company and at the time such shareholders vote
on adoption of this Agreement and the Merger, the Proxy Statement,
as supplemented or amended, if applicable, will not contain any
untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not
misleading. At the time of the filing of any Company
17
Disclosure Document other than the Proxy
Statement and at the time of any distribution thereof, such Company
Disclosure Document will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. The
representations and warranties contained in this Section
3.12(b) will not apply to statements or omissions included in
the Company Disclosure Documents based upon information furnished
to the Company in writing by Merger Sub or Infor or any of their
representatives specifically for use therein.
3.13 Benefit Plans
.
(a) Except as disclosed in
Section 3.13(a) of the Company Disclosure Schedule, there
exist no employment, consulting, severance, retention, termination
or change-of-control agreements, arrangements or understandings
between the Company or any of its subsidiaries and any individual
who is or was a current or former employee, independent contractor,
officer or director (or any dependent, beneficiary or relative of
any of the foregoing) of the Company or any of its subsidiaries
(collectively, the “ Employees ”) with respect
to which the annual cash, noncontingent payments thereunder exceed
$125,000 or where the contingent and noncontingent annual cash
compensation is reasonably likely to exceed $200,000.
(b) Section 3.13(b) of
the Company Disclosure Schedule contains a complete list of all (i)
“employee pension benefit plans” (as defined in Section
3(2) of the Employee Retirement Income Security Act of 1974, as
amended (“ ERISA ”)) (collectively, the “
Pension Plans ”), (ii) “employee welfare benefit
plans” (as defined in Section 3(1) of ERISA) and (iii) other
bonus, deferred compensation, severance pay, pension,
profit-sharing, retirement, insurance, stock purchase, stock
option, vacation pay, sick pay or other fringe benefit plan,
arrangement or practice maintained, or contributed to, by the
Company or any of its subsidiaries for the benefit of any of the
Employees or with respect to which the Company has any liability,
excluding any non-United States benefit plans or arrangements (the
foregoing clauses (i), (ii) and (iii) collectively, the “
Benefit Plans ”). Except as set forth in Section
3.13(b) of the Company Disclosure Schedule, neither the Company
nor any of its subsidiaries maintains any benefit plan or
arrangement for employees outside of the United States other than
those required by applicable local law. The Company has delivered
or made available to Merger Sub or its representatives correct and
complete copies of (i) each Benefit Plan, (ii) the three most
recent annual reports on Form 5500 filed with the Internal Revenue
Service with respect to each Benefit Plan (and all attachments
thereto), (iii) the most recent summary plan description for each
Benefit Plan for which such summary plan description is required
and (iv) each trust agreement and group annuity contract relating
to any Benefit Plan.
(c) Except as disclosed in
Section 3.13(c) of the Company Disclosure Schedule, all
Pension Plans intended to be qualified plans may either rely on
opinion letters issued for the form of plan or have been the
subject of favorable determination letters from the Internal
Revenue Service to the effect that such Pension Plans are qualified
and exempt from Federal income taxes under Section 401(a) and
501(a), respectively, of the Code (taking into account the laws
commonly referred to as “GUST”), and no such
determination letter has been revoked. To the knowledge of the
Company, there is no reasonable basis for the revocation of any
such opinion or determination letter.
18
(d) None of the Benefit Plans
is, and none of the Company or any of its subsidiaries has ever
maintained or had an obligation to contribute to (i) a
“single employer plan” (as such term is defined in
Section 4001(a)(15) of ERISA) subject to Section 412 of the Code or
Section 302 of Title I of ERISA or Title IV of ERISA, (ii) a
“multiple employer plan” (as such term is defined in
ERISA), (iii) any “multiemployer plan” as that term is
defined in Section 4001(a)(3) of ERISA) (a “ Multiemployer
Plan ”), or (iv) a funded welfare benefit plan (as such
term is defined in Section 419 of the Code). Each Benefit Plan and
all related trusts, insurance contracts and funds has been
maintained, funded and administered in all material respects in
accordance with the terms of such Benefit Plan and in compliance in
all material respects with the applicable provisions of ERISA, the
Code and other applicable laws. There are no unpaid contributions,
premiums or other payments due prior to the date hereof with
respect to any Benefit Plan that are required to have been made
under the terms of such Benefit Plan, any related insurance
contract or any applicable law. None of the Company or any of its
subsidiaries has incurred any liability or taken any action, and
the Company does not have any knowledge of, any action or event
that could reasonably be expected to cause any one of them to incur
any liability (i) under Section 412 of the Code or Section 302 of
Title I of ERISA or Title IV of ERISA with respect to any
“single-employer plan” (as such term is defined in
Section 4001(a)(15) of ERISA), (ii) on account of a partial or
complete withdrawal (as such term is defined in Sections 4203 and
4205 of ERISA, respectively) with respect to any Multiemployer
Plan, or (iii) on account of unpaid contributions to any
Multiemployer Plan. Neither the Company nor any of its subsidiaries
has any unfunded liabilities with respect to any deferred
compensation, retirement or other Benefit Plan.
(e) To the knowledge of the
Company, neither the Company nor any of its subsidiaries has
engaged in a “prohibited transaction” (as such term is
defined in Section 406 of ERISA and Section 4975 of the Code) or
any other breach of fiduciary responsibility with respect to any
Benefit Plan subject to ERISA that reasonably could be expected to
subject the Company or any of its subsidiaries or any Employee to
(i) any material tax or penalty on prohibited transactions imposed
by Section 4975 or (ii) any liability under Section 502(i) or
Section 502(l) of ERISA. As of the date of this Agreement, with
respect to any Benefit Plan: (i) no filing, application or other
matter is pending with the Internal Revenue Service, the Pension
Benefit Guaranty Corporation, the United States Department of Labor
or any other governmental body and (ii) there is no action, suit,
investigation, inquiry or claim pending, other than routine claims
for benefits.
(f) None of the Company or
any of its subsidiaries has any obligation to provide any health
benefits or other welfare benefits to retired or other former
employees, except as specifically required by Part 6 of Title I of
ERISA (“ COBRA ”). Except as disclosed in
Section 3.13(f) of the Company Disclosure Schedule, each
Benefit Plan that provides health or welfare benefits is fully
insured. Incurred but not reported claims under each such Benefit
Plan that is not fully insured have been properly
accrued.
(g) Except as described in
Section 3.13(g) of the Company Disclosure Schedule, neither
the Benefit Plans nor any other arrangement obligates the Company
or any of its subsidiaries to pay any separation, severance,
termination or similar benefit, accelerate any vesting schedule, or
alter the timing of any benefit payment, in whole or in part, as a
result of any transaction contemplated by this Agreement or, in
whole or in part, as a result of a change in control or ownership
within the meaning of any Benefit Plan (or any other arrangement)
or Section 280G of the Code.
19
(h) Neither the Company nor
any subsidiary has any liability (potential or otherwise) with
respect to any “employee benefit plan” (as defined in
Section 3(3) of ERISA) solely by reason of being treated as a
single employer under Section 414 of the Code with any other
entity.
3.14 Taxes
.
(a) Except as set forth in
Section 3.14(a) of the Company Disclosure Schedule: (i) the
Company and each of its subsidiaries has timely filed all material
Tax Returns required to be filed by it after taking into account
all valid extensions of time for such filings, and each such Tax
Return has been prepared in substantial compliance with all
applicable laws and regulations and is true and correct in all
material respects; (ii) the Company and each of its subsidiaries
has paid (or the Company has paid on behalf of its subsidiaries)
all material Taxes (as hereinafter defined) required to be paid in
respect of the periods covered by such returns and has made
adequate provision in the Company’s financial statements for
payment of all material Taxes that have not been paid, whether or
not shown as due and payable on any Tax Return, in respect of all
taxable periods or portions thereof ending on or before the date
hereof; and (iii) neither the Company nor any of its subsidiaries
has incurred any material liability for Taxes subsequent to the
date of the most recent financial statements contained in the SEC
Reports other than in the ordinary course of the Company’s or
such subsidiary’s business.
(b) Except as set forth in
Section 3.14(b) of the Company Disclosure Schedule: (i) no
material Tax Return of the Company or any of its subsidiaries is
under audit or examination by any taxing authority, and no written
notice of such an audit or examination or any other audit or
examination with respect to material Taxes has been received by the
Company or any of its subsidiaries; (ii) each material deficiency
resulting from any audit or examination relating to Taxes by any
taxing authority has been paid, except for deficiencies currently
being contested in good faith and for which adequate reserves, as
applicable, have been established in the Company’s financial
statements in accordance with United States generally accepted
accounting principles; (iii) there are no material Liens for Taxes
upon the assets of the Company or any of its subsidiaries, except
Liens relating to current Taxes not yet due and payable or
otherwise being contested in good faith as to which appropriate
reserves have been established in the Company’s financial
statements in accordance with United States generally accepted
accounting principles; (iv) all material Taxes which the Company or
any of its subsidiaries are required by law to withhold or to
collect for payment have been duly withheld and collected; (v) none
of the Company or any of its subsidiaries has consented to extend
the time in which any Tax may be assessed or collected by any
taxing authority; and (vi) to the knowledge of the Company, no
written claim has been made by any taxing authority in a
jurisdiction where the Company and its subsidiaries do not file Tax
Returns that the Company or any of its subsidiaries is or may be
subject to taxation in that jurisdiction, other than such claims
which would not reasonably be expected to have a Company Material
Adverse Effect.
(c) Except as set forth in
Section 3.14(c) of the Company Disclosure Schedule, there is
no Contract or other arrangement, plan or agreement by or with the
Company
20
or any of its subsidiaries covering any
person that, individually or collectively, could give rise to the
payment of any amount by the Company or any of its subsidiaries
that would not be deductible by the Company or such subsidiary by
reason of Sections 280G or 162(m) of the Code (or any corresponding
provision of state, local or foreign law).
(d) Except as set forth in
Section 3.14(d) of the Company Disclosure Schedule, each of
the Company and its subsidiaries has made available to Merger Sub
and Infor or its representatives true, correct and complete copies
of all material income Tax Returns, and all examination reports and
statements of deficiencies assessed against or agreed to by any of
the Company or any of its subsidiaries that have been filed by or
submitted to any of the Company or any of its subsidiaries for all
taxable years not barred by the statute of limitations.
(e) Except as set forth in
Section 3.14(e) of the Company Disclosure Schedule, none of
the Company or any of its subsidiaries (i) has been a member of an
affiliated group filing a consolidated federal income Tax Return
(other than a group the common parent of which was the Company),
(ii) is a party to or bound by any Tax allocation or Tax sharing
agreement with any persons or entity other than the Company and its
subsidiaries, (iii) has any liability for the Taxes of any Person
(other than any of the Company or any of its subsidiaries) under
Treas. Reg. § 1.1502-6 (or any similar provision of state,
local or foreign law), as a transferee or successor, by contract,
or otherwise or (iv) has any material liability for the Taxes of
any Person other than the Company, the subsidiaries of the Company
or in connection with the acquisition, directly or indirectly, of
any Person acquired by the Company or any of its
subsidiaries.
(f) Except as set forth in
Section 3.14(f) of the Company Disclosure Schedule, none of
the Company or any of its subsidiaries will be required to include
any item of income in, or exclude any item of deduction from,
taxable income for any taxable period (or portion thereof) ending
after the Closing Date as a result of any (i) change in method of
accounting for a taxable period ending on or prior to the Closing
Date under Code Section 481(c) (or any corresponding or similar
provision of state, local or foreign income Tax Law); (ii)
“closing agreement” as described in Code § 7121
(or any corresponding or similar provision of state, local or
foreign income Tax Law); (iii) deferred intercompany gain or any
excess loss account described in Treasury Regulations under Code
§ 1502 (or any corresponding or similar provision of state,
local or foreign income Tax Law); (iv) installment sale made prior
to the Closing Date; or (v) repaid amount received on or prior to
the Closing Date.
(g) None of the Company or
any of its subsidiaries has been a U.S. real property holding
corporation within the meaning of Section 897(c)(2) of the Code
during the applicable period specified in Section
(897)(c)(1)(A)(ii) of the Code.
(h) Except as set forth in
Section 3.14(h) of the Company Disclosure Schedule, none of
the Company or any of its subsidiaries has distributed stock of
another Person, or had its stock distributed by another Person, in
a transaction that was purported or intended to be governed in
whole or in part by Code Sections 355 or 361.
(i) As used in this
Section 3.14 , the terms (i) “ Tax ”
(and, with correlative meaning, “ Taxes ”)
means: (A) any federal, state, local or foreign net income, gross
income,
21
gross receipts, windfall profit,
severance, property, production, sales, use, license, excise,
franchise, employment, payroll, withholding, alternative or add-on
minimum, ad valorem, value added, transfer, stamp or environmental
tax, or any other tax of any kind whatsoever, together with any
interest or penalty or addition to tax imposed by any Governmental
Authority and (B) any liability of the Company or any of its
subsidiaries for payments of a type described in clause (A) as a
result of (I) any obligation of the Company or any of its
subsidiaries under any tax sharing agreement or tax indemnity
agreement or (II) the Company or any of its subsidiaries being a
member of an affiliated group (other than one of which the Company
is the parent); and (ii) “ Tax Return ” means
any report, return or other information or document required to be
supplied to or filed with a taxing authority in connection with
Taxes.
3.15 Intellectual
Property .
(a) As used in this
Agreement, the term “ Intellectual Property ”
means: (i) registered and unregistered trademarks, service marks,
trade names, Internet domain names, and trade dress (including the
good will associated with each); (ii) patents, patent applications,
patent disclosures, inventions and related know how; (iii)
registered and unregistered copyrights, copyrightable works and
mask works; (iv) computer software, data and databases including,
but not limited to, object code, source code, related documentation
and all copyrights therein; (v) trade secrets and confidential
information; and (vi) all other intellectual property
rights.
(b) Section 3.15(b) of
the Company Disclosure Schedule sets forth a complete and accurate
list of all: (i) patented and registered Intellectual Property, and
pending patent applications and disclosures or applications for
registration of Intellectual Property, owned or filed by the
Company or any of its
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