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Exhibit 2.1
AGREEMENT AND PLAN OF
MERGER
BY AND
AMONG
TRIKON TECHNOLOGIES,
INC.
AVIZA TECHNOLOGY,
INC.
NEW ATHLETICS,
INC.
BASEBALL ACQUISITION CORP.
I
AND
BASEBALL ACQUISITION CORP.
II
D ATED
AS OF M ARCH 14,
2005
TABLE OF CONTENTS
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| Article 1. The Mergers |
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2 |
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Section 1.1 |
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Certificate of Incorporation and Bylaws of New
Athletics |
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2 |
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Section
1.2 |
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The
Trikon Merger |
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2 |
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Section
1.3 |
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The Aviza
Merger |
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2 |
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Section
1.4 |
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Effective
Time of the Mergers |
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2 |
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Section
1.5 |
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Closing |
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2 |
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Section
1.6 |
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Effect of
the Mergers |
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2 |
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Section
1.7 |
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Certificates of Incorporation and Bylaws of the Surviving
Corporations |
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3 |
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Section
1.8 |
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Directors
and Officers of the Surviving Corporations |
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3 |
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| Article 2. Conversion of Securities; Exchange of
Certificates |
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4 |
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Section 2.1 |
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Conversion of Securities |
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3 |
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Section
2.2 |
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Exchange
of Certificates. |
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6 |
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Section
2.3 |
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Stock
Transfer Books |
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9 |
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Section
2.4 |
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Stock
Options |
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10 |
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Section
2.5 |
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Dissenting Shares |
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11 |
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| Article 3. Representations and Warranties of
Aviza |
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11 |
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Section 3.1 |
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Organization and Qualification; Subsidiaries |
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11 |
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Section
3.2 |
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Certificate of Incorporation and Bylaws; Corporate Books and
Records |
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12 |
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Section
3.3 |
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Capitalization |
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12 |
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Section
3.4 |
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Authority. |
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13 |
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Section
3.5 |
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No
Conflict; Required Filings and Consents. |
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14 |
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Section
3.6 |
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Permits;
Compliance With Law |
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14 |
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Section
3.7 |
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Financial
Statements. |
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15 |
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Section
3.8 |
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Disclosure Documents |
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16 |
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Section
3.9 |
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Absence
of Certain Changes or Events |
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16 |
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Section 3.10 |
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Employee
Benefit Plans. |
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16 |
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Section
3.11 |
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Labor and
Other Employment Matters. |
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20 |
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Section
3.12 |
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Tax
Treatment |
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22 |
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Section
3.13 |
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Contracts |
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22 |
i
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Section
3.14 |
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Litigation |
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23 |
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Section 3.15 |
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Environmental Matters |
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23 |
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Section
3.16 |
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Intellectual Property. |
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24 |
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Section
3.17 |
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Taxes. |
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26 |
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Section
3.18 |
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Insurance |
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28 |
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Section
3.19 |
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Vote
Required |
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28 |
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Section
3.20 |
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Brokers |
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28 |
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Section
3.21 |
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Real
Property |
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28 |
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| Article 4. Representations and Warranties of
Trikon |
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29 |
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Section
4.1 |
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Organization and Qualification; Subsidiaries |
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29 |
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Section
4.2 |
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Certificate of Incorporation and Bylaws; Corporate Books and
Records |
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30 |
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Section
4.3 |
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Capitalization |
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30 |
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Section
4.4 |
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Authority. |
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31 |
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Section
4.5 |
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No
Conflict; Required Filings and Consents. |
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31 |
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Section
4.6 |
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Permits;
Compliance With Law |
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32 |
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Section
4.7 |
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SEC
Filings; Financial Statements. |
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33 |
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Section
4.8 |
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Disclosure Documents |
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34 |
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Section
4.9 |
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Absence
of Certain Changes or Events |
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34 |
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Section
4.10 |
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Employee
Benefit Plans. |
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35 |
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Section 4.11 |
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Labor and
Other Employment Matters. |
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38 |
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Section
4.12 |
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Tax
Treatment |
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40 |
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Section
4.13 |
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Contracts |
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40 |
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Section
4.14 |
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Litigation |
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41 |
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Section
4.15 |
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Environmental Matters |
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42 |
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Section
4.16 |
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Intellectual Property. |
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42 |
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Section
4.17 |
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Taxes. |
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44 |
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Section
4.18 |
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Insurance. |
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47 |
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Section
4.19 |
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Opinion
of Trikon Financial Advisor |
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47 |
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Section
4.20 |
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Vote
Required |
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47 |
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Section
4.21 |
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Brokers |
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47 |
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Section
4.22 |
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Real
Property |
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47 |
ii
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| Article 5. Covenants |
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48 |
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Section 5.1 |
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Conduct
of Business by Aviza Pending the Closing |
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48 |
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Section
5.2 |
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Conduct
of Business by Trikon Pending the Closing |
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51 |
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Section
5.3 |
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Cooperation |
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54 |
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Section
5.4 |
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Registration Statement; Proxy Statement |
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54 |
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Section
5.5 |
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Trikon
Stockholders’ Meeting |
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55 |
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Section
5.6 |
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Access to
Information; Confidentiality. |
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55 |
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Section
5.7 |
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No
Solicitation of Transactions. |
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56 |
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Section
5.8 |
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Appropriate Action; Consents; Filings. |
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58 |
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Section
5.9 |
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Certain
Notices |
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59 |
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Section
5.10 |
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Public
Announcements |
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59 |
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Section 5.11 |
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NASDAQ
Listing |
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59 |
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Section
5.12 |
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Employee
Benefit Matters |
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60 |
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Section
5.13 |
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Indemnification of Directors and Officers and Pension Plan
Trustees. |
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60 |
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Section
5.14 |
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Tax-Free
Treatment. |
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61 |
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Section
5.15 |
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Affiliate
Agreements |
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62 |
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Section
5.16 |
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Other
Registration Statements |
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62 |
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Section
5.17 |
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New
Athletics Board Composition |
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62 |
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| Article 6. Closing Conditions |
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63 |
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Section
6.1 |
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Conditions to Obligations of Each Party Under This
Agreement |
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63 |
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Section
6.2 |
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Additional Conditions to Obligations of Trikon |
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64 |
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Section
6.3 |
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Additional Conditions to Obligations of Aviza |
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65 |
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| Article 7. Termination, Amendment and Waiver |
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65 |
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Section
7.1 |
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Termination |
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65 |
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Section
7.2 |
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Effect of
Termination. |
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68 |
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Section
7.3 |
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Amendment |
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69 |
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Section
7.4 |
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Waiver |
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70 |
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Section
7.5 |
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Fees and
Expenses |
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70 |
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| Article 8. General Provisions |
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70 |
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Section
8.1 |
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Non-Survival of Representations and Warranties |
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70 |
iii
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Section
8.2 |
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Notices |
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70 |
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Section 8.3 |
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Certain
Definitions |
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71 |
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Section 8.4 |
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Terms
Defined Elsewhere |
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76 |
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Section
8.5 |
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Headings |
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79 |
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Section
8.6 |
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Severability |
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79 |
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Section
8.7 |
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Entire
Agreement |
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79 |
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Section
8.8 |
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Assignment |
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80 |
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Section
8.9 |
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Parties in
Interest |
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80 |
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Section 8.10 |
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Mutual
Drafting |
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80 |
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Section
8.11 |
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Governing
Law; Consent to Jurisdiction; Waiver of Trial by Jury |
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80 |
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Section
8.12 |
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Counterparts |
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81 |
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Section
8.13 |
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Specific
Performance |
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81 |
EXHIBITS
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| EXHIBIT A |
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Stockholder Agreement |
| EXHIBIT
B |
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Form of
Irrevocable Written Consent |
| EXHIBIT
C |
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New
Athletics Certificate |
| EXHIBIT
D |
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New
Athletics Bylaws |
| EXHIBIT
E |
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Certificate of Incorporation of Trikon Surviving
Corporation |
| EXHIBIT
F |
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Bylaws of
Trikon Surviving Corporation |
| EXHIBIT
G |
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Certificate of Incorporation of Aviza Surviving
Corporation |
| EXHIBIT
H |
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Bylaws of
Aviza Surviving Corporation |
| EXHIBIT
I |
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Form of
Tax Representation Letter of New Athletics and Trikon Merger
Sub |
| EXHIBIT
J |
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Form of
Tax Representation Letter of New Athletics and Aviza Merger
Sub |
| EXHIBIT
K |
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Form of
Tax Representation Letter of Trikon |
| EXHIBIT
L |
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Form of
Tax Representation Letter of Aviza |
| EXHIBIT M |
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Form of
Tax Representation Letter of VPVP |
| EXHIBIT
N |
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Form of
Trikon Affiliate Agreement |
| EXHIBIT
O |
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Form of
Aviza Affiliate Agreement |
iv
THIS AGREEMENT AND PLAN OF
MERGER , dated as of March 14, 2005 (this “
Agreement ”), is entered into by and among Trikon
Technologies, Inc., a Delaware corporation (“ Trikon
”), Aviza Technology, Inc., a Delaware corporation (“
Aviza ”), New Athletics, Inc., a newly-formed Delaware
corporation (“ New Athletics ”), Baseball
Acquisition Corp. I, a Delaware corporation and a wholly owned
subsidiary of New Athletics (“ Trikon Merger Sub
”), and Baseball Acquisition Corp. II, a Delaware corporation
and a wholly owned subsidiary of New Athletics (“ Aviza
Merger Sub ”).
WHEREAS , the
respective Boards of Directors of Trikon (the “ Trikon
Board ”), Aviza (the “ Aviza Board ”),
Trikon Merger Sub and Aviza Merger Sub deem it advisable and in the
best interests of each corporation and its respective stockholders
that Trikon and Aviza combine in order to advance the interests of
Trikon and Aviza and their respective stockholders;
WHEREAS, the
combination of Trikon and Aviza shall be effected through (i) the
merger of Trikon Merger Sub with and into Trikon and (ii) the
merger of Aviza Merger Sub with and into Aviza, such that each of
Trikon and Aviza become wholly owned subsidiaries of New Athletics
and the stockholders of each of Trikon and Aviza become
stockholders of New Athletics, in each case, upon the terms and
subject to the conditions of this Agreement and in accordance with
the General Corporation Law of the State of Delaware (the “
DGCL ”);
WHEREAS , by executing
this Agreement, New Athletics, Trikon, Aviza, Trikon Merger Sub and
Aviza Merger Sub intend (i) to adopt this Agreement as a plan of
reorganization; (ii) that the Mergers (as defined in Section 1.3
hereof) be treated as an integrated transaction for U.S. federal
income Tax purposes; (iii) that the Mergers, taken together,
qualify as an exchange described in Section 351 of the Internal
Revenue Code of 1986, as amended (the “ Code ”)
and the regulations promulgated thereunder and (iv) that the Trikon
Merger (as defined in Section 1.2 hereof) qualify as a
reorganization within the meaning of Section 368(a) of the
Code;
WHEREAS , concurrently
with the execution of this Agreement, and as a material inducement
to the parties’ willingness to enter into this Agreement,
each of New Athletics, Trikon, VantagePoint Venture Partners IV
(Q), L.P., VantagePoint Venture Partners IV, L.P. and VantagePoint
Venture Partners IV Principals Fund, L.P. have entered into the
Stockholder Agreement in the form attached hereto as Exhibit
A (the “ Stockholder Agreement ”) to become
effective as of the Effective Time (except as otherwise expressly
stated therein); and
WHEREAS , immediately
following the execution of this Agreement, and as a material
inducement to the parties’ willingness to enter into this
Agreement, each of VantagePoint Venture Partners IV (Q), L.P.,
VantagePoint Venture Partners IV, L.P. and VantagePoint Venture
Partners IV Principals Fund, L.P. will adopt this Agreement and
approve the Aviza Merger (as defined in Section 1.3 hereof) by
executing and delivering an irrevocable written consent in the form
attached hereto as Exhibit B .
NOW , THEREFORE
, in consideration of the foregoing and the respective
representations, warranties, covenants and agreements set forth in
this Agreement and intending to be legally bound hereby, the
parties hereto agree as follows:
Article 1.
The Mergers
Section 1.1
Certificate of Incorporation and Bylaws of New Athletics .
Trikon and Aviza shall cause the Certificate of Incorporation and
Bylaws of New Athletics to be amended as of immediately prior to
the Effective Time (as defined in Section 1.4 hereof) to be in the
forms attached hereto as Exhibit C (the “ New
Athletics Certificate ”) and Exhibit D (the
“ New Athletics Bylaws ”), respectively. From
the date hereof until the Effective Time, Trikon and Aviza shall
consult with each other prior to causing or permitting New
Athletics to take any action inconsistent with the provisions of
this Agreement without the prior written consent of the
other.
Section 1.2 The
Trikon Merger . Upon the terms and subject to the provisions of
this Agreement, and in accordance with the relevant provisions of
the DGCL, Trikon Merger Sub shall merge with and into Trikon (the
“ Trikon Merger ”) at the Effective Time (as
defined in Section 1.4 hereof). Trikon Merger Sub has been formed
solely to effectuate the Trikon Merger and conducts no business or
activity other than in connection with the Trikon
Merger.
Section 1.3 The
Aviza Merger . Upon the terms and subject to the provisions of
this Agreement, and in accordance with the relevant provisions of
the DGCL, Aviza Merger Sub shall merge with and into Aviza (the
“ Aviza Merger ” and, together with the Trikon
Merger, the “ Mergers ”) at the Effective Time
(as defined in Section 1.4 hereof). Aviza Merger Sub has been
formed solely to effectuate the Aviza Merger and conducts no
business or activity other than in connection with the Aviza
Merger.
Section 1.4
Effective Time of the Mergers . Upon the terms and subject
to the provisions of this Agreement, a certificate of merger with
respect to each Merger in such form as is required by the relevant
provisions of the DGCL (each, with respect to one of the Mergers, a
“ Certificate of Merger ” and collectively, with
respect to both Mergers, the “ Certificates of Merger
”) shall be duly prepared, executed and acknowledged and
thereafter delivered to the Secretary of State of the State of
Delaware for filing, as provided in the DGCL, as early as
practicable on the Closing Date (as defined in Section 1.5 hereof).
Each Merger shall become effective at such time as is specified in
the applicable Certificate of Merger (the time at which both
Mergers have become effective being hereinafter referred to as the
“ Effective Time ”).
Section 1.5
Closing . The closing of the Mergers (the “
Closing ”) shall take place at such time and place to
be agreed upon by Trikon and Aviza, on a date to be specified by
Trikon and Aviza, which shall be no later than the second (2
nd ) Business Day after the satisfaction or, if
permissible, the waiver of all of the conditions set forth in
Article 6 hereof, unless another date is agreed to in writing by
Trikon and Aviza (such date, the “ Closing Date
”).
Section 1.6 Effect
of the Mergers . As a result of the Trikon Merger, the separate
corporate existence of Trikon Merger Sub shall cease and Trikon
shall continue as the surviving corporation in the Trikon Merger
(the “ Trikon Surviving Corporation ”). As a
result of the Aviza Merger, the separate corporate existence of
Aviza Merger Sub shall cease and Aviza shall continue as the
surviving corporation in the Aviza Merger (the “ Aviza
Surviving Corporation ” and, together with the Trikon
Surviving Corporation, the “ Surviving
2
Corporations ”). The
effects of the Mergers shall be as provided in the applicable
provisions of the DGCL. Without limiting the generality of the
foregoing, at the Effective Time, except as otherwise provided
herein, (i) all the property, rights, privileges, powers and
franchises of Trikon and Trikon Merger Sub shall vest in the Trikon
Surviving Corporation, and all debts, liabilities and duties of
Trikon and Trikon Merger Sub shall become the debts, liabilities
and duties of the Trikon Surviving Corporation and (ii) all the
property, rights, privileges, powers and franchises of Aviza and
Aviza Merger Sub shall vest in the Aviza Surviving Corporation, and
all debts, liabilities and duties of Aviza and Aviza Merger Sub
shall become the debts, liabilities and duties of the Aviza
Surviving Corporation.
Section 1.7
Certificates of Incorporation and Bylaws of the Surviving
Corporations . At the Effective Time, (i) the Certificate of
Incorporation and Bylaws of the Trikon Surviving Corporation shall
be amended in their entirety to contain the provisions set forth in
the Certificate of Incorporation and Bylaws of Trikon Merger Sub,
each as in effect immediately prior to the Effective Time and as
set forth in Exhibits E and F hereto (except that the
name of the Trikon Surviving Corporation shall be “Trikon
Technologies, Inc.”) and (ii) the Certificate of
Incorporation and Bylaws of the Aviza Surviving Corporation shall
be amended in their entirety to contain the provisions set forth in
the Certificate of Incorporation and Bylaws of Aviza Merger Sub,
each as in effect immediately prior to the Effective Time and as
set forth in Exhibits G and H hereto (except that the
name of the Aviza Surviving Corporation shall be “Aviza,
Inc.”).
Section 1.8
Directors and Officers of the Surviving Corporations . The
parties hereto shall use their reasonable best efforts to cause the
directors of Trikon Merger Sub immediately prior to the Effective
Time to be the initial directors of the Trikon Surviving
Corporation, each to hold office in accordance with the Certificate
of Incorporation and Bylaws of the Trikon Surviving Corporation.
The corporate officers of Trikon immediately prior to the Effective
Time shall be the initial officers of the Trikon Surviving
Corporation, each to hold office in accordance with the Certificate
of Incorporation and Bylaws of the Trikon Surviving Corporation.
The parties hereto shall use their reasonable best efforts to cause
the directors of Aviza Merger Sub immediately prior to the
Effective Time to be the initial directors of the Aviza Surviving
Corporation, each to hold office in accordance with the Certificate
of Incorporation and Bylaws of the Aviza Surviving Corporation. The
corporate officers of Aviza immediately prior to the Effective Time
shall be the initial officers of the Aviza Surviving Corporation,
each to hold office in accordance with the Certificate of
Incorporation and Bylaws of the Aviza Surviving
Corporation.
3
Article 2.
Conversion of Securities;
Exchange of Certificates
Section 2.1
Conversion of Securities . At the Effective Time, by virtue
of the Mergers and without any action on the part of New Athletics,
Trikon, Trikon Merger Sub, Aviza, Aviza Merger Sub or the holders
of any of the following securities:
Section 2.1.1 Conversion
Generally.
Section 2.1.1.1
Trikon Common Stock . Each share of common stock, par value
$0.001 per share, of Trikon (“ Trikon Common Stock
”) issued and outstanding immediately prior to the Effective
Time (other than any shares of Trikon Common Stock to be canceled
pursuant to Section 2.1.2 hereof) shall be converted, subject to
Section 2.2.5 hereof, into the right to receive a number of shares
of common stock, par value $0.0001 per share, of New Athletics
(“ New Athletics Common Stock ”) equal to the
Trikon Exchange Ratio. All such shares of Trikon Common Stock shall
no longer be outstanding and shall automatically be canceled and
shall cease to exist, and each certificate previously representing
any such shares shall thereafter represent the right to receive a
certificate representing the shares of New Athletics Common Stock
into which such Trikon Common Stock was converted in the Trikon
Merger. Certificates previously representing shares of Trikon
Common Stock shall be exchanged for certificates representing whole
shares of New Athletics Common Stock issued in consideration
therefor upon the surrender of such certificates in accordance with
the provisions of Section 2.2 hereof, without interest. No
fractional share of New Athletics Common Stock shall be issued, and
in lieu thereof, a cash payment shall be made pursuant to Section
2.2.5 hereof.
Section 2.1.1.2
Trikon Warrants . At the Effective Time, all unexercised and
unexpired warrants to purchase shares of Trikon Common Stock
(“ Trikon Warrants ”) then outstanding shall be
assumed by New Athletics. Each Trikon Warrant so assumed by New
Athletics under this Agreement shall continue to have, and be
subject to, the same terms and conditions as set forth in such
Trikon Warrant and any agreements executed in connection therewith
as in effect immediately prior to the Effective Time, except that
(i) each Trikon Warrant shall be exercisable (or shall become
exercisable in accordance with its terms) for that number of whole
shares of New Athletics Common Stock equal to the product of (x)
the number of shares of Trikon Common Stock that were issuable upon
the exercise of such Trikon Warrant immediately prior to the
Effective Time multiplied by (y) the Trikon Exchange Ratio,
rounded down to the nearest whole number of shares of New Athletics
Common Stock and (ii) the per share exercise price for the shares
of New Athletics Common Stock issuable upon the exercise of such
Trikon Warrant shall be equal to the quotient determined by
dividing (x) the exercise price per share of Trikon Common Stock at
which such Trikon Warrant was exercisable immediately prior to the
Effective Time by (y) the Trikon Exchange Ratio, rounded up
to the nearest whole cent.
Section 2.1.1.3
Aviza Common Stock . Each share of common stock, par value
$0.001 per share, of Aviza (“ Aviza Common Stock
”) issued and outstanding immediately prior to the Effective
Time (other than any shares of Aviza Common Stock to be canceled
pursuant to Section 2.1.2 hereof and Dissenting Shares in
accordance with Section 2.5 hereof) shall be converted, subject to
Section 2.2.5 hereof, into the right to receive a number of shares
of New Athletics Common Stock equal to the Aviza Exchange Ratio.
All such shares of Aviza Common Stock shall no longer be
outstanding and shall automatically be canceled and shall cease to
exist, and each certificate previously representing any such shares
shall thereafter represent the right to receive a certificate
representing the shares of New Athletics Common Stock into which
such Aviza Common Stock was converted in the Aviza Merger.
Certificates previously representing shares of Aviza Common Stock
shall be exchanged for certificates
4
representing whole shares of New
Athletics Common Stock issued in consideration therefor upon the
surrender of such certificates in accordance with the provisions of
Section 2.2 hereof, without interest. No fractional share of New
Athletics Common Stock shall be issued, and in lieu thereof, a cash
payment shall be made pursuant to Section 2.2.5 hereof.
Section 2.1.1.4
Aviza Series A Preferred Stock . Each share of Series A
Preferred Stock, par value $0.001 per share, of Aviza (the “
Aviza Series A Preferred Stock ”) issued and
outstanding immediately prior to the Effective Time (other than any
shares of Aviza Series A Preferred Stock to be canceled pursuant to
Section 2.1.2 hereof and Dissenting Shares in accordance with
Section 2.5 hereof), shall be converted, subject to Section 2.2.5
hereof, into the right to receive a number of shares of New
Athletics Common Stock equal to the product of (x) that number of
shares of Aviza Common Stock into which such share of Aviza Series
A Preferred Stock would have been convertible immediately prior to
the Effective Time multiplied by (y) the Aviza Exchange
Ratio. All such shares of Aviza Series A Preferred Stock shall no
longer be outstanding and shall automatically be canceled and shall
cease to exist, and each certificate previously representing any
such shares shall thereafter represent the right to receive a
certificate representing the shares of New Athletics Common Stock
into which such Aviza Series A Preferred Stock was converted in the
Aviza Merger. Certificates previously representing shares of Aviza
Series A Preferred Stock shall be exchanged for certificates
representing whole shares of New Athletics Common Stock issued in
consideration therefor upon the surrender of such certificates in
accordance with the provisions of Section 2.2 hereof, without
interest. No fractional share of New Athletics Common Stock shall
be issued, and in lieu thereof, a cash payment shall be made
pursuant to Section 2.2.5 hereof.
Section 2.1.1.5
Aviza Series B Preferred Stock . Each share of Series B
Preferred Stock, par value $100 per share, of Aviza (the “
Aviza Series B Preferred Stock ” and, together with
the Aviza Series A Preferred Stock, the “ Aviza Preferred
Stock ”) issued and outstanding immediately prior to the
Effective Time shall remain issued and outstanding after the
Effective Time and shall be unaffected by the Mergers.
Section 2.1.1.6
Aviza Warrants . At the Effective Time, all unexercised and
unexpired warrants to purchase shares of Aviza Series A Preferred
Stock (“ Aviza Warrants ”) then outstanding
shall be cancelled and extinguished without
consideration.
Section 2.1.2 Cancellation
of Certain Shares . Each share of New Athletics Common Stock
issued and outstanding immediately prior to the Effective Time
shall be surrendered and cancelled. Each share of Trikon Stock held
by Aviza or any wholly owned subsidiary of Aviza, in the treasury
of Trikon or by any wholly owned subsidiary of Trikon immediately
prior to the Effective Time shall be canceled and extinguished
without any conversion thereof and no payment shall be made with
respect thereto. Each share of Aviza Stock held by Trikon or any
wholly owned subsidiary of Trikon, in the treasury of Aviza or by
any wholly owned subsidiary of Aviza immediately prior to the
Effective Time shall be canceled and extinguished without any
conversion thereof and no payment shall be made with respect
thereto.
Section 2.1.3 Trikon
Merger Sub . Each share of common stock, par value $0.001 per
share, of Trikon Merger Sub issued and outstanding immediately
prior to the Effective Time shall be converted into and be
exchanged for one newly and validly issued, fully paid and
nonassessable share of common stock of the Trikon Surviving
Corporation.
5
Section 2.1.4 Aviza Merger
Sub . Each share of common stock, par value $0.001 per share,
of Aviza Merger Sub issued and outstanding immediately prior to the
Effective Time shall be converted into and be exchanged for one
newly and validly issued, fully paid and nonassessable share of
common stock of the Aviza Surviving Corporation.
Section 2.1.5 Change in
Shares . If between the date of this Agreement and the
Effective Time the outstanding shares of New Athletics Common
Stock, Trikon Stock, Aviza Common Stock or Aviza Series A Preferred
Stock shall have been changed into a different number of shares or
a different class, by reason of any stock dividend, subdivision,
reclassification, recapitalization, split, combination or exchange
of shares, the Exchange Ratios shall be correspondingly adjusted to
reflect such stock dividend, subdivision, reclassification,
recapitalization, split, combination or exchange of
shares.
Section 2.2
Exchange of Certificates .
Section 2.2.1 Exchange
Agent . As promptly as practicable after the Effective Time,
New Athletics shall deposit, or shall cause to be deposited, with
American Stock Transfer & Trust Co. or another bank or trust
company designated by New Athletics and reasonably satisfactory to
each of Aviza and Trikon (the “ Exchange Agent
”), for the benefit of the holders of shares of Trikon Stock
and Aviza Stock, for exchange in accordance with this Article 2,
through the Exchange Agent, certificates representing the shares of
New Athletics Common Stock (such certificates for shares of New
Athletics Common Stock, together with cash in lieu of fractional
shares and any dividends or distributions with respect thereto,
being hereinafter referred to as the “ Exchange Fund
”) issuable pursuant to Section 2.1 hereof in exchange for
outstanding shares of Trikon Stock and Aviza Stock. The Exchange
Agent shall, pursuant to irrevocable instructions, deliver the New
Athletics Common Stock contemplated to be issued pursuant to
Section 2.1 hereof out of the Exchange Fund. Except as contemplated
by Section 2.2.5 hereof, the Exchange Fund shall not be used for
any other purpose.
Section 2.2.2 Exchange
Procedures . Promptly after the Effective Time, New Athletics
shall instruct the Exchange Agent to mail to each holder of record
of a certificate or certificates which immediately prior to the
Effective Time represented outstanding shares of Trikon Stock,
Aviza Series A Preferred Stock or Aviza Common Stock (collectively,
the “ Certificates ”) (A) a 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 Exchange Agent and
shall be in customary form) and (B) instructions for use in
effecting the surrender of the Certificates in exchange for
certificates representing shares of New Athletics Common Stock and
cash in lieu of fractional shares and any dividends or
distributions with respect thereto. Upon surrender of a Certificate
for cancellation to the Exchange Agent together with such letter of
transmittal, properly completed and duly executed, and such other
documents as may be required pursuant to such instructions, the
holder of such Certificate shall be entitled to receive in exchange
therefor a certificate representing that number of whole shares of
New Athletics Common Stock which such holder has the right to
receive in respect of the shares of Trikon Stock, Aviza Series A
Preferred Stock or Aviza Common Stock, as the case may
be,
6
formerly represented by such Certificate
(after taking into account all shares of Trikon Stock, Aviza Series
A Preferred Stock or Aviza Common Stock, as the case may be, then
held by such holder), cash in lieu of fractional shares of New
Athletics Common Stock to which such holder is entitled pursuant to
Section 2.2.5 hereof and any dividends or other distributions to
which such holder is entitled pursuant to Section 2.2.3 hereof, and
the Certificate so surrendered shall forthwith be canceled. No
interest shall be paid or shall accrue on any cash in lieu of
fractional shares or on any unpaid dividends and distributions
payable to holders of Certificates. In the event of a transfer of
ownership of shares of Trikon Stock, Aviza Series A Preferred Stock
or Aviza Common Stock which is not registered in the transfer
records of Trikon or Aviza, respectively, a certificate
representing the proper number of shares of New Athletics Common
Stock may be issued to a transferee if the Certificate representing
such shares of Trikon Stock, Aviza Series A Preferred Stock or
Aviza Common Stock, as the case may be, is presented to the
Exchange Agent, accompanied by all documents required to evidence
and effect such transfer and by evidence that any applicable stock
transfer Taxes have been paid. Until surrendered as contemplated by
this Section 2.2, each Certificate shall be deemed at any time
after the Effective Time to represent only the right to receive
upon such surrender the certificate representing shares of New
Athletics Common Stock, cash in lieu of any fractional shares of
New Athletics Common Stock to which such holder is entitled
pursuant to Section 2.2.5 hereof and any dividends or other
distributions to which such holder is entitled pursuant to Section
2.2.3 hereof. Certificates surrendered for exchange by any person
constituting an “affiliate” of either Trikon or Aviza
for purposes of Rule 145(c) under the Securities Act shall not be
exchanged until New Athletics has received an Affiliate Agreement
(as defined in Section 5.15 hereof) from such person.
Section 2.2.3
Distributions with Respect to Unexchanged Shares of New Athletics
Common Stock . No dividends or other distributions declared or
made after the Effective Time with respect to New Athletics Common
Stock with a record date after the Effective Time shall be paid to
the holder of any unsurrendered Certificate with respect to the
shares of New Athletics Common Stock represented thereby, and no
cash payment in lieu of fractional shares shall be paid to any such
holder pursuant to Section 2.2.5 hereof, unless and until the
holder of such Certificate shall surrender such Certificate.
Subject to the effect of escheat, Tax or other applicable Laws,
following surrender of any such Certificate, there shall be paid to
the holder of the certificates representing whole shares of New
Athletics Common Stock issued in exchange therefor, without
interest, (A) promptly, the amount of any cash payable with respect
to a fractional share of New Athletics Common Stock to which such
holder is entitled pursuant to Section 2.2.5 hereof and the amount
of dividends or other distributions with a record date after the
Effective Time theretofore paid with respect to such whole shares
of New Athletics Common Stock and (B) at the appropriate payment
date, the amount of dividends or other distributions, with a record
date after the Effective Time but prior to surrender and a payment
date occurring after surrender, payable with respect to such whole
shares of New Athletics Common Stock.
Section 2.2.4 Further
Rights in Trikon Stock and Aviza Stock . All shares of New
Athletics Common Stock issued upon conversion of the shares of
Trikon Stock, Aviza Series A Preferred Stock and Aviza Common Stock
in accordance with the terms hereof (including any cash paid
pursuant to Section 2.2.3 or Section 2.2.5 hereof) shall be deemed
to have been issued in full satisfaction of all rights pertaining
to such shares of Trikon Stock, Aviza Series A Preferred Stock or
Aviza Common Stock, as the case may be.
7
Section 2.2.5 Fractional
Shares . No certificates or scrip representing fractional
shares of New Athletics Common Stock shall be issued upon the
surrender for exchange of Certificates, no dividend or distribution
with respect to New Athletics Common Stock shall be payable on or
with respect to any fractional share and such fractional share
interests shall not entitle the owner thereof to any rights of a
stockholder of New Athletics.
Section 2.2.5.1 As
promptly as practicable following the Effective Time, the Exchange
Agent shall determine the difference between (A) the number of full
shares of New Athletics Common Stock delivered to the Exchange
Agent by New Athletics pursuant to Section 2.2.1 hereof and (B) the
aggregate number of full shares of New Athletics Common Stock to be
distributed to holders of Trikon Stock, Aviza Series A Preferred
Stock and Aviza Common Stock pursuant to Section 2.2.2 hereof (such
difference being the “ Excess Shares ”). As soon
after the Effective Time as practicable, the Exchange Agent, as
agent for such holders of New Athletics Common Stock, shall sell
the Excess Shares at then prevailing prices on the Nasdaq National
Market (“ NASDAQ ”), all in the manner provided
in this Section 2.2.5.
Section 2.2.5.2 The
sale of the Excess Shares by the Exchange Agent shall be executed
on NASDAQ and shall be executed in round lots to the extent
practicable. Until the net proceeds of any such sale or sales have
been distributed to such holders of Trikon Stock and Aviza Stock,
the Exchange Agent shall hold such proceeds in trust for such
holders of Trikon Stock and Aviza Stock as part of the Exchange
Fund. New Athletics shall pay all commissions, transfer taxes and
other out-of-pocket transaction costs of the Exchange Agent
incurred in connection with such sale or sales of Excess Shares. In
addition, New Athletics shall pay the Exchange Agent’s
compensation and expenses in connection with such sale or sales.
The Exchange Agent shall determine the portion of such net proceeds
to which each holder of Trikon Stock and Aviza Stock shall be
entitled, if any, by multiplying the amount of the aggregate net
proceeds by a fraction, the numerator of which is the amount of the
fractional share interest to which such holder of Trikon Stock,
Aviza Series A Preferred Stock or Aviza Common Stock, as the case
may be, is entitled (after taking into account all shares of New
Athletics Common Stock to be issued to such holder) and the
denominator of which is the aggregate amount of fractional share
interests to which all holders of Trikon Stock, Aviza Series A
Preferred Stock and Aviza Common Stock are entitled.
Section 2.2.5.3 As
soon as practicable after the determination of the amount of cash,
if any, to be paid to holders of Trikon Stock, Aviza Series A
Preferred Stock and Aviza Common Stock with respect to any
fractional share interests, the Exchange Agent shall promptly pay
such amounts to such holders of Trikon Stock, Aviza Series A
Preferred Stock and Aviza Common Stock subject to and in accordance
with the terms of Section 2.2.3 hereof.
Section 2.2.6 Termination
of Exchange Fund . Any portion of the Exchange Fund which
remains undistributed to the former stockholders of Trikon or Aviza
for six (6) months after the Effective Time shall be delivered to
New Athletics upon demand, and
8
any former stockholder of Trikon or
Aviza who have not theretofore complied with this Article 2 shall
thereafter look only to New Athletics for the shares of New
Athletics Common Stock, any cash in lieu of fractional shares of
New Athletics Common Stock to which they are entitled pursuant to
Section 2.2.5 hereof and any dividends or other distributions with
respect to New Athletics Common Stock to which they are entitled
pursuant to Section 2.2.3 hereof, in each case, without any
interest thereon.
Section 2.2.7 No
Liability . None of New Athletics, Trikon, Aviza or the
Exchange Agent shall be liable to any holder of shares of Trikon
Stock or Aviza Stock for any such shares of New Athletics Common
Stock (or dividends or distributions with respect thereto) or cash
from the Exchange Fund delivered to a public official pursuant to
any abandoned property, escheat or similar Law.
Section 2.2.8 Lost
Certificates . If any Certificate shall have been lost, stolen
or destroyed, upon the making of an affidavit of that fact by the
person claiming such Certificate to be lost, stolen or destroyed
and, if required by New Athletics or one of the Surviving
Corporations, the making of an indemnity and/or posting by such
person of a bond, in such reasonable amount as New Athletics or one
of the Surviving Corporations may direct, as indemnity against any
claim that may be made against it with respect to such Certificate,
the Exchange Agent shall issue in exchange for such lost, stolen or
destroyed Certificate the shares of New Athletics Common Stock, any
cash in lieu of fractional shares of New Athletics Common Stock to
which the holders thereof are entitled pursuant to Section 2.2.5
hereof and any dividends or other distributions to which the
holders thereof are entitled pursuant to Section 2.2.3 hereof, in
each case, without any interest thereon.
Section 2.2.9
Withholding . New Athletics, each of the Surviving Corporations
or the Exchange Agent shall be entitled to deduct and withhold from
the consideration otherwise payable pursuant to this Agreement to
any holder of Trikon Stock or Aviza Stock such amounts as New
Athletics, either of the Surviving Corporations or the Exchange
Agent are required to deduct and withhold under the Code, or any
provision of state, local or foreign Tax Law, with respect to the
making of such payment. To the extent that amounts are so withheld
by New Athletics, either of the Surviving Corporations or the
Exchange Agent, such withheld amounts shall be treated for all
purposes of this Agreement as having been paid to the holder of
Trikon Stock or Aviza Stock, as the case may be, in respect of whom
such deduction and withholding was made.
Section 2.3 Stock
Transfer Books . At the Effective Time, the stock transfer
books of Trikon and Aviza shall be closed and thereafter, there
shall be no further registration of transfers of shares of Trikon
Stock or Aviza Stock theretofore outstanding on the records of
Trikon or Aviza, respectively. From and after the Effective Time,
the holders of Certificates shall cease to have any rights with
respect to the shares of Trikon Stock or Aviza Stock represented
thereby except as otherwise provided herein or by Law. On or after
the Effective Time, any Certificates presented to the Exchange
Agent or New Athletics for any reason shall be converted into the
shares of New Athletics Common Stock, any cash in lieu of
fractional shares of New Athletics Common Stock to which the
holders thereof are entitled pursuant to Section 2.2.5 hereof and
any dividends or other distributions to which the holders thereof
are entitled pursuant to Section 2.2.3 hereof.
9
Section 2.4 Stock
Options .
Section 2.4.1 Trikon
Options . At the Effective Time, all unexercised and unexpired
options to purchase shares of Trikon Common Stock (“
Trikon Options ”) outstanding immediately prior to the
Effective Time under the Trikon Technologies, Inc. 1991 Stock
Option Plan, the Trikon, Inc. 1998 Directors Stock Option Plan, the
Trikon Technologies, Inc. 2004 Equity Incentive Plan or any other
plan, agreement or arrangement listed on Section 2.4.1 of the
Trikon Disclosure Schedule (collectively, the “ Trikon
Stock Option Plans ”), whether or not then exercisable,
shall be assumed by New Athletics. Section 2.4.1 of the Trikon
Disclosure Schedule includes information with respect to any rights
that provide for the acceleration or other changes in the vesting
provisions or other terms under the Trikon Options or Trikon Stock
Option Plans as a result of the Trikon Merger (either alone or in
connection with additional or subsequent events). Each Trikon
Option so assumed by New Athletics under this Agreement shall in
all material respects continue to have, and be subject to, the same
terms and conditions as set forth in the Trikon Stock Option Plan
and any agreements thereunder governing such Trikon Option
immediately prior to the Effective Time, except that (i) each
Trikon Option shall be exercisable (or shall become exercisable in
accordance with its terms) for that number of whole shares of New
Athletics Common Stock equal to the product of (x) the number of
shares of Trikon Common Stock that were issuable upon the exercise
of such Trikon Option immediately prior to the Effective Time
multiplied by (y) the Trikon Exchange Ratio, rounded down to
the nearest whole number of shares of New Athletics Common Stock
and (ii) the per share exercise price for the shares of New
Athletics Common Stock issuable upon the exercise of such Trikon
Option shall be equal to the quotient determined by dividing (x)
the exercise price per share of Trikon Common Stock at which such
Trikon Option was exercisable immediately prior to the Effective
Time by (y) the Trikon Exchange Ratio, rounded up to the
nearest whole cent. The conversion of any Trikon Options which are
incentive stock options within the meaning of Section 422 of the
Code, into options to purchase New Athletics Common Stock is
intended to be made so as not to constitute a
“modification” of such Trikon Options within the
meaning of Section 424 of the Code. Continuous employment with
Trikon or its subsidiaries shall be credited to the optionee for
purposes of determining the vesting of all assumed Trikon Options
after the Effective Time.
Section 2.4.2 Aviza
Options . At the Effective Time, all unexercised and unexpired
options to purchase shares of Aviza Common Stock (“ Aviza
Options ”) outstanding immediately prior to the Effective
Time under the Aviza Technology, Inc. 2003 Equity Incentive Plan or
any other plan, agreement or arrangement listed on Section 2.4.2 of
the Aviza Disclosure Schedule (collectively, the “ Aviza
Stock Option Plans ”), whether or not then exercisable,
shall be assumed by New Athletics. Section 2.4.2 of the Aviza
Disclosure Schedule includes information with respect to any rights
that provide for the acceleration or other changes in the vesting
provisions or other terms under the Aviza Options or Aviza Stock
Option Plans as a result of the Aviza Merger (either alone or in
connection with additional or subsequent events). Each Aviza Option
so assumed by New Athletics under this Agreement shall in all
material respects continue to have, and be subject to, the same
terms and conditions as set forth in the Aviza Stock Option Plan
and any agreements thereunder governing such Aviza Option
immediately prior to the Effective Time, except that (i) each Aviza
Option shall be exercisable (or shall become exercisable in
accordance with its terms) for that number of whole shares of New
Athletics Common Stock equal to the product of (x) the number of
shares of Aviza
10
Common Stock that were issuable upon the
exercise of such Aviza Option immediately prior to the Effective
Time multiplied by (y) the Aviza Exchange Ratio, rounded
down to the nearest whole number of shares of New Athletics Common
Stock and (ii) the per share exercise price for the shares of New
Athletics Common Stock issuable upon the exercise of such Aviza
Option shall be equal to the quotient determined by dividing (x)
the exercise price per share of Aviza Common Stock at which such
Aviza Option was exercisable immediately prior to the Effective
Time by (y) the Aviza Exchange Ratio, rounded up to the
nearest whole cent. The conversion of any Aviza Options which are
incentive stock options within the meaning of Section 422 of the
Code, into options to purchase New Athletics Common Stock is
intended to be made so as not to constitute a
“modification” of such Aviza Options within the meaning
of Section 424 of the Code. Continuous employment with Aviza or its
subsidiaries shall be credited to the optionee for purposes of
determining the vesting of all assumed Aviza Options after the
Effective Time.
Section 2.5
Dissenting Shares . Notwithstanding anything in this
Agreement to the contrary, shares of Aviza Stock, if any, issued
and outstanding immediately prior to the Effective Time and held by
a holder who has not voted in favor of the Aviza Merger and who has
delivered a written demand for appraisal of such shares in
accordance with Section 262 of the DGCL (a “ Dissenting
Stockholder ”) shall not be converted into the right to
receive shares of New Athletics Common Stock as provided in Section
2.1 hereof at or after the Effective Time, unless and until such
holder fails to perfect or effectively withdraws or otherwise loses
such holder’s right to appraisal under the DGCL. A Dissenting
Stockholder may receive payment of the fair value of the shares of
Aviza Stock issued and outstanding immediately prior to the
Effective Time and held by such Dissenting Stockholder (“
Dissenting Shares ”) in accordance with the provisions
of the DGCL, provided that such Dissenting Stockholder complies
with Section 262 of the DGCL. At the Effective Time, all Dissenting
Shares shall be cancelled and cease to exist and shall represent
only the right to receive the fair value thereof in accordance with
the DGCL. If, after the Effective Time, any Dissenting Stockholder
fails to perfect or effectively withdraws or otherwise loses such
Dissenting Stockholder’s right to appraisal, such Dissenting
Stockholder’s Dissenting Shares shall thereupon be treated as
if they had been converted, as of the Effective Time, into the
right to receive shares of New Athletics Common Stock as provided
in Section 2.1. Aviza shall give Trikon (i) prompt notice of any
demands for appraisal, withdrawals of demands for appraisal and any
other instruments served under the DGCL and (b) the opportunity to
participate in all negotiations, proceedings or settlements with
respect to demands for appraisal under the DGCL. Aviza shall not
voluntarily make any payment with respect to any demands for
appraisal and shall not, except with Trikon’s prior written
consent, settle or offer to settle any such demands.
Article 3.
Representations and
Warranties of Aviza
Except as set forth in the
Disclosure Schedule delivered by Aviza to Trikon prior to the
execution of this Agreement (the “ Aviza Disclosure
Schedule ”), which identifies exceptions by specific
Section references, Aviza hereby represents and warrants to Trikon
as follows:
Section 3.1
Organization and Qualification; Subsidiaries . Aviza is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware.
11
Each subsidiary of Aviza (each an
“ Aviza Subsidiary ” and, collectively, the
“ Aviza Subsidiaries ”) has been duly organized,
and is validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization, as the case may
be. Each of Aviza and each Aviza Subsidiary has the requisite power
and authority and all necessary governmental approvals to own,
lease and operate its properties and to carry on its business as it
is now being conducted. Each of Aviza and each Aviza Subsidiary is
duly qualified or licensed to do business, and is in good standing,
in each jurisdiction where the character of the properties owned,
leased or operated by it or the nature of its business makes such
qualification, licensing or good standing necessary, except for
such failures to be so qualified, licensed or in good standing that
would not, individually or in the aggregate, reasonably be expected
to have an Aviza Material Adverse Effect. Section 3.1 of the Aviza
Disclosure Schedule sets forth a true and complete list of all of
the Aviza Subsidiaries. None of Aviza or any Aviza Subsidiary holds
an Equity Interest in any other person other than the Aviza
Subsidiaries.
Section 3.2
Certificate of Incorporation and Bylaws; Corporate Books and
Records . The copies of Aviza’s Third Amended and
Restated Certificate of Incorporation (the “ Aviza
Certificate ”) and Bylaws (the “ Aviza
Bylaws ”) previously delivered to Trikon are complete and
correct copies thereof as in effect on the date hereof. Aviza is
not in violation of any of the provisions of the Aviza Certificate
or the Aviza Bylaws. True and complete copies of all minute books
of Aviza have been made available by Aviza to Trikon.
Section 3.3
Capitalization . The authorized capital stock of Aviza
consists of Ten Million Twenty Thousand (10,020,000) shares of
Aviza Preferred Stock, Ten Million (10,000,000) of which are
designated Series A Preferred Stock and Twenty Thousand (20,000) of
which are designated Series B Preferred Stock, and Seventeen
Million (17,000,000) shares of Aviza Common Stock. As of the date
hereof, (A) Five Million Eight Hundred Four Thousand Four Hundred
Forty-Six (5,804,446) shares of Aviza Series A Preferred Stock were
issued and outstanding, each of which was validly issued and fully
paid, nonassessable and free of preemptive rights and convertible
into one (1) share of Aviza Common Stock; (B) Twenty Thousand
(20,000) shares of Aviza Series B Preferred Stock were issued and
outstanding, each of which was validly issued and fully paid,
nonassessable and free of preemptive rights; (C) Two Hundred Eighty
Thousand One Hundred (280,100) shares of Aviza Common Stock were
issued and outstanding, all of which were validly issued and fully
paid, nonassessable and free of preemptive rights; (D) no shares of
Aviza Stock were held in the treasury of Aviza or by the Aviza
Subsidiaries; (E) One Million Nine Hundred Thirty-Three Thousand
Five Hundred (1,933,500) shares of Aviza Common Stock were issuable
(and such number was reserved for issuance) upon exercise of Aviza
Options outstanding as of such date and (F) Three Million Five
Hundred Fifty-Five Thousand Six Hundred (3,555,600) shares of Aviza
Series A Preferred Stock were issuable (and such number was
reserved for issuance) upon exercise of Aviza Warrants outstanding
as of such date. Except for (A) Aviza Options to purchase One
Million Nine Hundred Thirty-Three Thousand Five Hundred (1,933,500)
shares of Aviza Common Stock and (B) Aviza Warrants to purchase
Three Million Five Hundred Fifty-Five Thousand Six Hundred
(3,555,600) shares of Aviza Series A Preferred Stock, there are no
options, warrants or other rights, agreements, arrangements or
commitments of any character to which Aviza or any Aviza Subsidiary
is a party or by which Aviza or any Aviza Subsidiary is bound
relating to the issued or unissued capital stock or other Equity
Interests of Aviza or any Aviza Subsidiary, or securities
convertible into or exchangeable for such capital stock or other
Equity Interests, or obligating
12
Aviza or any Aviza Subsidiary to issue
or sell any shares of its capital stock or other Equity Interests,
or securities convertible into or exchangeable for such capital
stock of, or other Equity Interests in, Aviza or any Aviza
Subsidiary. Since October 31, 2004, Aviza has not issued any shares
of its capital stock, or securities convertible into or
exchangeable for such capital stock or other Equity Interests,
other than those shares of capital stock reserved for issuance as
set forth in this Section 3.3. Aviza has previously provided Trikon
with a true and complete list, as of the date hereof, of the prices
at which all outstanding Aviza Options and Aviza Warrants may be
exercised, the number of Aviza Options and Aviza Warrants
outstanding at each such price and the vesting schedule for each
Aviza Option. All shares of Aviza Stock subject to issuance
pursuant to Aviza Options and Aviza Warrants, upon issuance on the
terms and conditions specified in the instruments pursuant to which
they are issuable, will be duly authorized, validly issued, fully
paid, nonassessable and free of preemptive rights. There are no
outstanding contractual obligations of Aviza or any Aviza
Subsidiary (A) restricting the transfer of; (B) affecting the
voting rights of; (C) requiring the repurchase, redemption or
disposition of, or containing any right of first refusal with
respect to; (D) requiring the registration for sale of or (E)
granting any preemptive or antidilutive right with respect to, any
shares of Aviza Stock or any capital stock of, or other Equity
Interests in, Aviza or any Aviza Subsidiary. Each outstanding share
of capital stock of each Aviza Subsidiary is duly authorized,
validly issued, fully paid, nonassessable and free of preemptive
rights and is owned, beneficially and of record, by Aviza or
another Aviza Subsidiary free and clear of all security interests,
liens, claims, pledges, options, rights of first refusal,
agreements, limitations on Aviza’s or such other Aviza
Subsidiary’s voting rights, charges and other encumbrances of
any nature whatsoever. There are no outstanding contractual
obligations of Aviza or any Aviza Subsidiary to provide funds to,
or make any investment (in the form of a loan, capital contribution
or otherwise) in, any Aviza Subsidiary or any other person, other
than guarantees by Aviza of any indebtedness or other obligations
of any wholly owned Aviza Subsidiary.
Section 3.4
Authority .
Section 3.4.1 Aviza
has all necessary corporate power and authority to execute and
deliver this Agreement and each Ancillary Agreement to which it is
a party, to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated by this Agreement and each
Ancillary Agreement to be consummated by Aviza. The execution and
delivery of this Agreement and each Ancillary Agreement to which it
is a party by Aviza and the consummation by Aviza of the
transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action of Aviza and
no other corporate proceedings on the part of Aviza and no votes of
Aviza’s stockholders are necessary to authorize this
Agreement or any Ancillary Agreement or to consummate the
transactions contemplated hereby and thereby other than, with
respect to the Aviza Merger, as provided in Section 3.19 hereof.
The Aviza Board has approved this Agreement and each Ancillary
Agreement to which Aviza is a party, declared advisable the
transactions contemplated hereby and thereby and has directed that
this Agreement and each Ancillary Agreement and the transactions
contemplated hereby and thereby be submitted to Aviza’s
stockholders for adoption and approval. This Agreement and each
Ancillary Agreement to which Aviza is a party has been duly
authorized and validly executed and delivered by Aviza and
constitutes a legal, valid and binding obligation of Aviza,
enforceable against Aviza in accordance with its respective
terms.
13
Section 3.4.2 Aviza
has taken all appropriate actions so that the restrictions on
business combinations contained in Section 203 of the DGCL will not
apply with respect to or as a result of this Agreement or any
Ancillary Agreement and the transactions contemplated hereby and
thereby, including the Aviza Merger, without any further action on
the part of Aviza’s stockholders or the Aviza Board. No other
state takeover statute or similar statute or regulation is
applicable to or purports to be applicable to the Aviza Merger or
any other transaction contemplated by this Agreement or any
Ancillary Agreement.
Section 3.5 No
Conflict; Required Filings and Consents .
Section 3.5.1 The
execution and delivery of this Agreement and each Ancillary
Agreement to which Aviza is party by Aviza does not, and the
performance hereof and thereof by Aviza will not, (A) (assuming the
Aviza stockholder approval set forth in Section 3.19 hereof is
obtained) conflict with or violate any provision of the Aviza
Certificate or the Aviza Bylaws or any equivalent organizational
documents of any Aviza Subsidiary; (B) assuming that all consents,
approvals, authorizations and permits described in Section 3.5.2
hereof have been obtained and all filings and notifications
described in Section 3.5.2 hereof have been made and any waiting
periods thereunder have terminated or expired, conflict with or
violate any Law applicable to Aviza or any Aviza Subsidiary or by
which any property or asset of Aviza or any Aviza Subsidiary is
bound or affected or (C) require any consent or approval under,
result in any breach of or any loss of any benefit under,
constitute a change of control or default (or an event which with
notice or lapse of time or both would become a default) under or
give to others any right of termination, vesting, amendment,
acceleration or cancellation of, or result in the creation of a
lien or other encumbrance on any property or asset of Aviza or any
Aviza Subsidiary pursuant to, any note, bond, mortgage, indenture,
Contract, agreement, lease, license, Aviza Permit or other
instrument or obligation, except, with respect to clauses (B) and
(C), for any such conflicts, violations, breaches, defaults or
other occurrences which would not, individually or in the
aggregate, reasonably be expected to (1) prevent or materially
delay consummation of the Aviza Merger; (2) otherwise prevent or
materially delay performance by Aviza of any of its material
obligations under this Agreement or any Ancillary Agreement to
which it is a party or (3) have an Aviza Material Adverse
Effect.
Section 3.5.2 The
execution and delivery of this Agreement and each Ancillary
Agreement to which Aviza is a party by Aviza does not, and the
performance hereof and thereof by Aviza will not, require any
consent, approval, authorization or permit of, or filing with or
notification to, any Governmental Entity or any other person,
except (A) under the Exchange Act, the Securities Act, any
applicable Blue Sky Law, the HSR Act, foreign or supranational
antitrust and competition laws and the filing and recordation of
the Certificates of Merger as required by the DGCL and (B) where
failure to obtain such consents, approvals, authorizations or
permits, or to make such filings or notifications to a person other
than a Governmental Entity, would not, individually or in the
aggregate, reasonably be expected to (x) prevent or materially
delay consummation of the Aviza Merger; (y) otherwise prevent or
materially delay performance by Aviza of any of its material
obligations under this Agreement or any Ancillary Agreement to
which it is a party or (z) have an Aviza Material Adverse
Effect.
Section 3.6
Permits; Compliance With Law . Each of Aviza and each Aviza
Subsidiary is in possession of all authorizations, licenses,
permits, certificates, approvals and
14
clearances of any Governmental Entity
necessary for Aviza and each Aviza Subsidiary to own, lease and
operate its properties or to carry on its respective businesses
substantially as it is being conducted as of the date hereof (the
“ Aviza Permits ”), and all such Aviza Permits
are valid and in full force and effect, except where the failure to
have, or the suspension or cancellation of, or failure to be valid
or in full force and effect of, any of the Aviza Permits would not,
individually or in the aggregate, reasonably be expected to (A)
prevent or materially delay consummation of the Aviza Merger; (B)
otherwise prevent or materially delay performance by Aviza of any
of its material obligations under this Agreement or any Ancillary
Agreement to which it is a party or (C) have an Aviza Material
Adverse Effect. None of Aviza or any Aviza Subsidiary is in
conflict with, or in default or violation of, (x) any Law
applicable to Aviza or any Aviza Subsidiary or by which any
property or asset of Aviza or any Aviza Subsidiary is bound or
affected or (y) any Aviza Permits, except for any such conflicts,
defaults or violations that would not, individually or in the
aggregate, reasonably be expected to (A) prevent or materially
delay consummation of the Aviza Merger; (B) otherwise prevent or
materially delay performance by Aviza of any of its material
obligations under this Agreement or any Ancillary Agreement to
which it is a party or (C) have an Aviza Material Adverse
Effect.
Section 3.7
Financial Statements .
Section 3.7.1 Section
3.7.1 of the Aviza Disclosure Schedule sets forth the audited
consolidated balance sheets of Aviza and the consolidated Aviza
Subsidiaries (or their predecessors) as of September 24, 2004 (the
“ Aviza Balance Sheet ”), October 9, 2003 and
December 31, 2002 and the related audited consolidated statements
of operations and cash flows of Aviza and the consolidated Aviza
Subsidiaries (or their predecessors) for the periods then ended
(collectively, the “ Aviza Financial Statements
”). The Aviza Financial Statements were prepared in
accordance with GAAP applied (except as may be indicated in the
notes thereto) on a consistent basis throughout the periods
indicated (except as may be indicated in the notes thereto), and
each presented fairly in all material respects the consolidated
financial position, results of operations and cash flows of Aviza
and the consolidated Aviza Subsidiaries as of the respective dates
thereof and for the respective periods indicated therein. The books
and records of Aviza and each Aviza Subsidiary have been, and are
being, maintained in accordance with applicable legal and
accounting requirements.
Section 3.7.2 Except
as and to the extent set forth on the Aviza Balance Sheet,
including the notes thereto, none of Aviza or any consolidated
Aviza Subsidiary has any liabilities or obligations of any nature
(whether accrued, absolute, contingent or otherwise) that would be
required to be reflected on a balance sheet or in notes thereto
prepared in accordance with GAAP, except for liabilities or
obligations incurred in the ordinary course of business since
September 24, 2004 that would not, individually or in the
aggregate, reasonably be expected to (A) prevent or materially
delay consummation of the Aviza Merger; (B) otherwise prevent or
materially delay performance by Aviza of any of its material
obligations under this Agreement or any Ancillary Agreement to
which it is a party or (C) have an Aviza Material Adverse
Effect.
Section 3.7.3 Each of
Aviza and the Aviza Subsidiaries maintains a system of internal
accounting controls sufficient to provide reasonable assurance that
(A) transactions are executed in accordance with management’s
general or specific authorizations; (B) transactions are recorded
as necessary to permit preparation of financial statements
in
15
conformity with GAAP and to maintain
asset accountability; (C) access to assets is permitted only in
accordance with management’s general or specific
authorization and (D) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any
differences.
Section 3.8
Disclosure Documents . The Registration Statement, the Proxy
Statement and any Other Filings, and any amendments or supplements
thereto, do not, and will not, at (A) the time the Registration
Statement is declared effective; (B) the time the Proxy Statement
(or any amendment thereof or supplement thereto) is first mailed to
the stockholders of Trikon; (C) the time of the Trikon
Stockholders’ Meeting and (D) the Effective Time, contain any
untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make
the statements made therein, in light of the circumstances under
which they were made, not misleading. The representations and
warranties contained in this Section 3.8 shall only apply to
statements or omissions included in the Registration Statement, the
Proxy Statement or any Other Filings based upon information
furnished in writing by Aviza to New Athletics or Trikon
specifically for use therein.
Section 3.9 Absence
of Certain Changes or Events . Since September 24, 2004, except
as specifically contemplated by this Agreement, Aviza and each
Aviza Subsidiary has conducted its businesses in the ordinary
course consistent with past practice and, since such date, there
has not been (A) any Aviza Material Adverse Effect or an event or
development that would, individually or in the aggregate,
reasonably be expected to have an Aviza Material Adverse Effect;
(B) any event or development that would, individually or in the
aggregate, reasonably be expected to prevent or materially delay
the performance of this Agreement or any Ancillary Agreement to
which it is a party by Aviza or (C) any action taken by Aviza or
any Aviza Subsidiary during the period from September 25, 2004,
through the date of this Agreement that, if taken during the period
from the date of this Agreement through the Effective Time, would
constitute a breach of Section 5.1 hereof.
Section 3.10
Employee Benefit Plans .
Section 3.10.1 Section
3.10.1 of Aviza Disclosure Schedule sets forth a true and complete
list of each “employee benefit plan” as defined in
Section 3(3) of ERISA (whether or not subject to ERISA) and any
other plan, policy, program, practice or agreement (whether written
or oral) providing compensation or other benefits to any current or
former director, officer, employee or consultant (or to any
dependent or beneficiary thereof) of Aviza or any Aviza ERISA
Affiliate (including where those people are domiciled outside the
United States), which are now, or were within the past three (3)
years, maintained, sponsored or contributed to by Aviza or any
Aviza ERISA Affiliate, or under which Aviza or any Aviza ERISA
Affiliate has any obligation or liability, whether actual or
contingent, including, without limitation, all incentive, bonus,
deferred compensation, vacation, holiday, cafeteria, medical,
disability, stock purchase, stock option, stock appreciation,
phantom stock, restricted stock or other stock-based compensation
plans, policies, programs or practices (each an “ Aviza
Benefit Plan ”). Neither Aviza nor, to the knowledge of
Aviza, or any other person has any express or implied commitment,
whether legally enforceable or not, to materially modify, change or
terminate any Aviza Benefit Plan, other than with respect to a
modification, change or termination required by ERISA or the
Code.
16
With respect to each Aviza
Benefit Plan, Aviza has delivered to Trikon true, correct and
complete copies of (A) each Aviza Benefit Plan (or, if not written,
a written summary of its material terms), including without
limitation all plan documents, adoption agreements, trust
agreements, insurance contracts or other funding vehicles and all
amendments thereto; (B) all summaries and summary plan
descriptions, including any summary of material modifications; (C)
the three (3) most recent annual reports (Form 5500 series) filed
with the IRS (or foreign equivalent) with respect to such Aviza
Benefit Plan; (D) the three (3) most recent actuarial reports or
other financial statements relating to such Aviza Benefit Plan; (E)
the most recent determination or opinion letter, if any, issued by
the IRS with respect to any Aviza Benefit Plan and any pending
request for such a determination letter; (F) the three (3) most
recent nondiscrimination tests performed under the Code (including
401(k) and 401(m) tests) for each Aviza Benefit Plan and (G) all
filings made with any Governmental Entity, including but not
limited any filings under the Voluntary Compliance Resolution or
Closing Agreement Program or the Department of Labor Delinquent
Filer Program.
Section 3.10.2 Each
Aviza Benefit Plan has been administered in all material respects
in accordance with its terms and all applicable Laws, including
ERISA and the Code, and contributions required to be made under the
terms of any of Aviza Benefit Plans as of the date of this
Agreement have been timely made or, if not yet due, have been
properly reflected on the Aviza Balance Sheet. With respect to the
Aviza Benefit Plans, no event has occurred and, to the knowledge of
Aviza, there exists no condition or set of circumstances in
connection with which Aviza could be subject to any material
liability (other than for routine benefit liabilities) under the
terms of, or with respect to, such Aviza Benefit Plans, ERISA, the
Code or any other applicable Law.
Section 3.10.3 (A)
Each Aviza Benefit Plan which is intended to qualify under Section
401(a), Section 401(k), Section 401(m) or Section 4975(e)(7) of the
Code has either received a favorable determination letter from the
IRS as to its qualified status and each trust established in
connection with any Aviza Benefit Plan which is intended to be
exempt from federal income taxation under Section 501(a) of the
Code is so exempt, and to Aviza’s knowledge no fact or event
has occurred that could adversely affect the qualified status of
any such Aviza Benefit Plan or the exempt status of any such trust;
(B) to Aviza’s knowledge there has been no prohibited
transaction (within the meaning of Section 406 of ERISA or Section
4975 of the Code and other than a transaction that is exempt under
a statutory or administrative exemption) with respect to any Aviza
Benefit Plan that could result in liability to Aviza or an Aviza
ERISA Affiliate; (C) each Aviza Benefit Plan can be amended,
terminated or otherwise discontinued after the Effective Time in
accordance with its terms, without liability (other than liability
for ordinary administrative expenses typically incurred in a
termination event); (D) to the knowledge of Aviza, no suit,
administrative proceeding, claim, demand, dispute, action or other
litigation has been brought, is pending or is threatened or
reasonably anticipated, against, in connection with, or with
respect to any Aviza Benefit Plan, including any audit, inquiry or
proceeding by the IRS or United States Department of Labor or any
other Governmental Entity (other than routine benefits claims); (E)
no Aviza Benefit Plan is a multiemployer pension plan (as defined
in Section 3(37) of ERISA) (“ Multiemployer Plan
”) or other pension plan subject to Title IV of ERISA and
none of Aviza or any Aviza ERISA Affiliate has sponsored or
contributed to or been required to contribute to a Multiemployer
Plan or other pension plan subject to Title IV of ERISA; (F) no
material liability under Title IV of ERISA or any other retirement
benefit
17
plan for the benefit of current or
former Aviza employees which has as its sponsor or principal
company a company that was not Aviza or an Aviza ERISA Affiliate
has been incurred by Aviza or any Aviza ERISA Affiliate that has
not been satisfied in full, and no condition exists that presents a
material risk to Aviza or any Aviza ERISA Affiliate of incurring or
being subject (whether primarily, jointly or secondarily) to a
material liability thereunder; (G) none of the assets of Aviza or
any Aviza ERISA Affiliate is, or may reasonably be expected to
become, the subject of any lien arising under ERISA or Section
412(n) of the Code; (H) all Tax, annual reporting and other
governmental filings required by ERISA and the Code or other
applicable Laws have been timely filed with the appropriate
Governmental Entity and all notices and disclosures have been
timely provided to participants; (I) all contributions and payments
to Aviza Benefit Plans in respect of employees based in the United
States are deductible under Sections 162 or 404 of the Code; (J) no
amount is subject to Tax as unrelated business taxable income under
Section 511 of the Code and (K) no excise Tax could be imposed upon
Aviza under Chapter 43 of the Code.
Section 3.10.4 With
respect to each Aviza Benefit Plan required to be set forth in
Section 3.10.1 of the Aviza Disclosure Schedule that is subject to
Title IV or Part 3 of Title I of ERISA or Section 412 of the Code
(other than a Multiemployer Plan), (A) no “reportable
event” (within the meaning of Section 4043 of ERISA, other
than an event for which the reporting requirements have been waived
by regulations) has occurred or is expected to occur; (B) there was
not an “accumulated funding deficiency” (within the
meaning of Section 302 of ERISA or Section 412 of the Code),
whether or not waived, as of the most recently ended plan year of
such Aviza Benefit Plan; (C) there is no “unfunded benefit
liability” (within the meaning of Section 4001(a)(18) of
ERISA, but excluding from the definition of “current
value” of “assets” accrued but unpaid
contributions) and each such plan has been maintained in compliance
with the minimum funding standards of ERISA and the Code; (D) Aviza
and each Aviza ERISA Affiliate has made when due any
“required installments” within the meaning of Section
412(m) of the Code and Section 302(e) of ERISA, whichever may
apply; (E) none of Aviza or any Aviza ERISA Affiliate is required
to provide security under Section 401(a)(29) of the Code; (F) all
premiums (and interest charges and penalties for late payment, if
applicable) have been paid when due to the Pension Benefit Guaranty
Corporation (“ PBGC ”); (G) each such plan is
fully funded on a termination basis as of the Effective Time and
(H) no filing has been made by Aviza or any Aviza ERISA Affiliate
with the PBGC and no proceeding has been commenced by the PBGC to
terminate any Aviza Benefit Plan and no condition exists which
could constitute grounds for the termination of any such Aviza
Benefit Plan by the PBGC.
Section 3.10.5 With
respect to each Aviza Benefit Plan that is a Multiemployer Plan,
(A) none of Aviza or any Aviza ERISA Affiliate has incurred any
withdrawal liability under Section 4201 of ERISA nor does Aviza or
any Aviza ERISA Affiliate expect to withdraw in a “complete
withdrawal” or “partial withdrawal” within the
meaning of Section 4203 and 4205 of ERISA; (B) all contributions
required to be made to any such Aviza Benefit Plan have been timely
made and (C) to the best knowledge of Aviza, no such Multiemployer
Plan has been terminated or has been in or is about to be in
reorganization under ERISA so as to result directly or indirectly
in any increase in contributions under Section 4243 of ERISA or in
liability contingent or otherwise to Aviza or any Aviza ERISA
Affiliate. Neither Aviza nor any Aviza ERISA Affiliate has ever
maintained, established, sponsored or participated in, or
contributed to, any plan described in Section 413(c) of the Code or
a “funded welfare plan” within the meaning of Section
418 of the Code. No Aviza Benefit Plan provides health benefits
that are not fully insured through an insurance
contract.
18
Section 3.10.6 No
amount that could be received (whether in cash, securities,
property or the vesting of property), as a result of the
consummation of the transactions contemplated by this Agreement or
any Ancillary Agreement (either alone or upon the occurrence of any
additional or subsequent events), by any employee, officer or
director of Aviza or any Aviza ERISA Affiliate who is a
“disqualified individual” (as such term is defined in
proposed Treasury Regulation Section 1.280G-1) under any Aviza
Benefit Plan, loan, employment, severance, termination or other
agreement could be characterized as an “excess parachute
payment” (as defined in Section 280G(b)(1) of the Code). Set
forth in Section 3.10.6 of the Aviza Disclosure Schedule is the
estimated maximum amount that could be paid to any disqualified
individual as a result of the transactions contemplated by this
Agreement or any Ancillary Agreement under all employment,
severance and termination agreements, other compensation
arrangements and Aviza Benefit Plans currently in
effect.
Section 3.10.7 Except
as required by Law, no Aviza Benefit Plan provides any retiree or
post-employment medical or life insurance benefits to any person.
No Aviza Benefit Plan is a voluntary employee benefit association
under Section 501(a)(9) of the Code. Aviza and each Aviza ERISA
Affiliate are in material compliance with (i) the requirements of
the applicable health care continuation and notice provisions of
the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (“ COBRA ”), and the regulations
(including proposed regulations) thereunder and any similar state
Law and (ii) the applicable requirements of the Health Insurance
Portability and Accountability Act of 1996, as amended (“
HIPAA ”), and the regulations (including proposed
regulations) thereunder.
Section 3.10.8 With
respect to any Aviza Benefit Plan for the benefit of employees,
former employees or dependents thereof who perform services outside
of the United States (each, an “ Aviza Foreign
Plan ”): (A) if intended to qualify for special Tax
treatment, the Aviza Foreign Plans meet all requirements for such
treatment; (B) if intended to be funded and/or book-reserved, the
Aviza Foreign Plans are fully funded and/or book reserved, as
appropriate, based upon reasonable actuarial assumptions; (C) no
material liability exists or reasonably could be imposed upon the
assets of Aviza or any Aviza ERISA Affiliate by reason of such
Aviza Foreign Plans; (D) no Aviza ERISA Affiliate is or has ever
been the sponsor or principal employer to any Aviza Foreign Plan
that is a plan, scheme or arrangement for the provision of any
pension, superannuation, retirement (including on early retirement)
or death benefits (including in the form of a lump sum) except for
any such benefits that are sponsored by a Governmental Entity or
required by statute (together referred to as “ Pension
Benefits ”); (E) no employee or former employee of Aviza
or any Aviza Subsidiary who is domiciled in the U.K., Germany or
Holland (or any of their dependents) is entitled to, as a result of
the Acquired Rights Directive 2001/23/EC or any national
legislation implementing the Acquired Rights Directive 2001/23/EC,
to any Pension Benefits that become payable before their normal
retirement age as stated in their contract of employment or the
benefit scheme itself and (F) the assets of each Aviza Foreign Plan
that provided Pension Benefits are sufficient to satisfy its
respective liabilities (current and contingent) as of the date of
this Agreement or have been properly accrued in the Aviza Financial
Statements in accordance with generally accepted accounting
principles.
19
Section 3.10.9 The
execution of this Agreement and the consummation of the
transactions contemplated hereby will not, to the knowledge of
Aviza, cause a violation of Section 402 of the Sarbanes-Oxley Act
of 2002.
Section 3.11 Labor
and Other Employment Matters .
Section 3.11.1 Each of
Aviza and each Aviza Subsidiary is in compliance, in all material
respects, with all applicable Laws respecting labor, employment,
fair employment practices, terms and conditions of employment,
workers’ compensation, occupational safety, plant closings,
and wages and hours. None of Aviza or any Aviza Subsidiary is
liable for any payment to any trust or other fund or to any
Governmental Entity, with respect to unemployment compensation
benefits, social security or other benefits or obligations for
employees (other than routine payments to be made in the ordinary
course of business and consistent with past practice). Aviza and
each Aviza Subsidiary has withheld and reported all amounts
required by Law or by agreement to be withheld and reported with
respect to wages, salaries and other payments to employees and is
not liable for any arrears of wages or any Taxes or any penalty for
failure to comply with any of the foregoing. To the knowledge of
Aviza, there are no pending, threatened or reasonably anticipated
claims or actions against Aviza under any workers’
compensation policy or long-term disability policy. Neither Aviza
nor any Aviza Subsidiary has direct or indirect liability with
respect to any misclassification of any person as an independent
contractor rather than as an employee, or with respect to any
employee leased from another employer, except as would not result
in material liability to Aviza or any Aviza Subsidiary.
Section 3.11.2 Aviza
has identified in Section 3.11.2 of the Aviza Disclosure Schedule
and has made available to Trikon true and complete copies of (A)
all severance and employment agreements with directors, officers or
employees of or consultants to Aviza or any Aviza Subsidiary; (B)
all severance programs and policies of Aviza and each Aviza
Subsidiary with or relating to its employees and (C) all plans,
programs, agreements and other arrangements of Aviza and each Aviza
Subsidiary with or relating to its directors, officers, employees
or consultants which contain change in control provisions. None of
the execution and delivery of this Agreement or any Ancillary
Agreement or the consummation of the transactions contemplated
hereby or thereby will (either alone or in conjunction with any
other event, such as termination of employment) (A) result in any
payment (including, without limitation, severance, unemployment
compensation, parachute or otherwise) becoming due to any director
or any employee of Aviza or any Aviza Subsidiary or affiliate from
Aviza or any Aviza Subsidiary or affiliate under any Aviza Benefit
Plan or otherwise, other than continuation of health care coverage
as required by COBRA or similar state Law; (B) significantly
increase any benefits otherwise payable under any Aviza Benefit
Plan or (C) result in any acceleration of the time of payment or
vesting of any material benefits. No individual who is a party to
an employment agreement listed in Section 3.11.2 of the Aviza
Disclosure Schedule or any agreement incorporating change in
control provisions with Aviza has terminated employment or been
terminated, nor, to the knowledge of Aviza, has any event occurred
that could give rise to a termination event, in either case under
circumstances that has given, or could give, rise to a severance
obligation on the part of Aviza under such agreement. Section
3.11.2 of the Aviza Disclosure Schedule sets forth Aviza’s
best estimates of the amounts payable to the executives listed
therein, as a result of the transactions contemplated by this
Agreement, or any Ancillary
20
Agreement, either alone or in connection
with additional or subsequent events (including any cash-out or
acceleration of options and restricted stock and any
“gross-up” payments with respect to any of the
foregoing), based on compensation data applicable as of the date of
the Aviza Disclosure Schedule and the assumptions stated
therein.
Section 3.11.3 To the
knowledge of Aviza, there are no pending, threatened or reasonably
anticipated claims (other than claims for benefits in the ordinary
course), lawsuits or arbitrations which have been asserted or
instituted against any Aviza Benefit Plan, any fiduciaries thereof
with respect to their duties to Aviza Benefit Plans or the assets
of any of the trusts under any of Aviza Benefit Plans which could
reasonably be expected to result in any material liability of Aviza
or any Aviza Subsidiary to the PBGC, the Department of Treasury,
the Department of Labor or any Multiemployer Plan.
Section 3.11.4 No work
stoppage or labor strike against Aviza or any Aviza ERISA Affiliate
is, to the knowledge of Aviza, pending or threatened or reasonably
anticipated. Aviza does not know of any activities or proceedings
of any labor union to organize any employees of Aviza or any Aviza
Subsidiary. To the knowledge of Aviza, there are no actions, suits,
claims, labor disputes or grievances pending, threatened or
reasonably anticipated relating to any labor, safety or
discrimination matters involving any employee of Aviza or any Aviza
Subsidiary, including, without limitation, charges of unfair labor
practices or discrimination complaints, which, if adversely
determined would, individually or in the aggregate, result in a
material liability to Aviza or any Aviza Subsidiary. Neither Aviza
nor any Aviza Subsidiary has engaged in any unfair labor practices
within the meaning of the National Labor Relations Act. Neither
Aviza nor any Aviza Subsidiaries are presently, or have been in the
past, a party to, or bound by, any collective bargaining agreement
or union contract with respect to employees and no collective
bargaining agreement is being negotiated with respect to employees.
Neither Aviza nor any Aviza Subsidiaries have incurred any material
liability or material obligation under the Worker Adjustment and
Retraining Notification Act or any similar state or local Law which
remains unsatisfied.
Section 3.11.5
Labor and Other Employment Matters .
Section 3.11.5.1
Workforce . A true and complete list setting forth the name,
length of service and date of birth of all employees of Aviza or an
Aviza Subsidiary who are domiciled outside of the United States
(“ Aviza Non-U.S. Employees ”) has been made
available by Aviza to Trikon.
Section 3.11.5.2
Terms and Conditions of Engagement . True and complete
copies of all documents containing the material terms and
conditions of engagement in respect of each Aviza Non-U.S. Employee
and the particulars of all employment policies (whether contractual
or otherwise) that apply to Aviza Non-U.S. Employees have been made
available by Aviza to Trikon. No European Aviza Subsidiary has a
legal obligation or ex gratia arrangement to pay pensions,
gratuities, superannuation, allowances or any other benefit to any
person who is not Aviza Non-U.S. Employee.
Section 3.11.5.3
Transfer of Undertakings . During the twelve (12)-month
period prior to the Effective Time, no European Aviza Subsidiary
has been party to
21
any relevant transfer as defined in the
local legislation of each member state of the European Union
implementing the Acquired Rights Directive 2001/23/EC (a “
Relevant Transfer ”). No Aviza Non-U.S. Employee (or
former employee) has transferred to any European Aviza Subsidiary
under a Relevant Transfer who at any time prior to the Relevant
Transfer: (i) was a member of an occupational pension scheme or
(ii) was a member of a scheme providing an interest in or option
over shares where that scheme has not been materially replicated by
the European Aviza Subsidiary.
Section 3.11.5.4
Employees Representatives and Collective Agreements . No
European Aviza Subsidiary has, within the past two (2) years,
recognized (or done any act which would reasonably be construed as
recognition of) any trade union, whether voluntarily or not. No
European Aviza Subsidiary is obligated to consult with any works
council, staff association or any other employee labor
representative. Each European Aviza Subsidiary has materially
complied with all collective, workforce and other agreements and
obligations affecting its relations with, or the conditions of
service of its employees. Each European Aviza Subsidiary has at all
times materially complied with its obligations to inform and/or
consult with employee representatives of its employees.
Section 3.12 Tax
Treatment . None of Aviza, any Aviza Subsidiary or, to the
knowledge of Aviza, any of Aviza’s affiliates has taken or
agreed to take any action that would prevent the Mergers, taken
together, from qualifying as an exchange described in Section 351
of the Code and the regulations promulgated thereunder. To
Aviza’s knowledge, there is no agreement, plan or other
circumstance that would prevent the Mergers, taken together, from
qualifying as an exchange described in Section 351 of the Code and
the regulations promulgated thereunder.
Section 3.13
Contracts . None of Aviza or any Aviza Subsidiary is a party
to or bound by any Contract (A) any of the benefits to any party of
which will be increased, or the vesting of the benefits to any
party of which will be accelerated, by the occurrence of any of the
transactions contemplated by this Agreement or any Ancillary
Agreement, or the value of any of the benefits to any party of
which will be calculated on the basis of any of the transactions
contemplated by this Agreement or any Ancillary Agreement or (B)
which, as of the date hereof, (1) would be a “material
contract” (as such term is defined in Item 601(b)(10) of
Regulation S-K of the SEC); (2) which involves aggregate
expenditures in excess of $250,000 (or, in the case of purchase
orders and supply contracts, $500,000); (3) which involves annual
expenditures in excess of $250,000 and is not cancelable within one
year; (4) which contains any non-compete or exclusivity provisions
with respect to any line of business or geographic area with
respect to Aviza, any Aviza Subsidiary or any of Aviza’s
current or future affiliates, or which restricts the conduct of any
line of business by Aviza, any Aviza Subsidiary or any of
Aviza’s current or future affiliates or any geographic area
in which Aviza, any Aviza Subsidiary or any of Aviza’s
current or future affiliates may conduct business, in each case in
any material respect or (5) which would prohibit or materially
delay the consummation of the Aviza Merger or any of the
transactions contemplated by this Agreement or any Ancillary
Agreement. Each Contract of the type described in this Section
3.13, whether or not set forth in Section 3.13 of the Aviza
Disclosure Schedule, is referred to herein as an “ Aviza
Material Contract .” Each Aviza Material Contract is
valid and binding on Aviza and each Aviza Subsidiary that is a
party thereto and, to Aviza’s knowledge, each other party
thereto, and in full force and effect, and Aviza and
22
each Aviza Subsidiary has in all
material respects performed all obligations required to be
performed by it to the date hereof under each Aviza Material
Contract and, to Aviza’s knowledge, each other party to each
Aviza Material Contract has in all material respects performed all
obligations required to be performed by it under such Aviza
Material Contract. None of Aviza or any Aviza Subsidiary knows of,
or has received notice of, any violation or default under (or any
condition which with the passage of time or the giving of notice
would cause such a violation of or default under) any Aviza
Material Contract or any other Contract to which it is a party or
by which it or any of its properties or assets is bound. Section
3.13 of the Aviza Disclosure Schedule provides Aviza’s good
faith estimate of the additional costs which will accrue to Aviza
under the contracts described in clause (A) of this Section 3.13 as
a result of the transactions contemplated by this Agreement or any
Ancillary Agreement, and such estimate is, in the aggregate,
accurate in all material respects.
Section 3.14
Litigation . Section 3.14 of the Aviza Disclosure Schedule
sets forth, as of the date hereof, to the knowledge of Aviza, all
suits, claims, actions, proceedings or investigations pending or
threatened in writing against Aviza or any Aviza Subsidiary or for
which Aviza or any Aviza Subsidiary is obligated to indemnify a
third party. To the knowledge of Aviza, there are no suits, claims,
actions, proceedings or investigations pending or threatened in
writing against Aviza or any Aviza Subsidiary or for which Aviza or
any Aviza Subsidiary is obligated to indemnify a third party that
(1) has had or would, individually or in the aggregate, reasonably
be expected to have an Aviza Material Adverse Effect or (2)
challenges the validity or propriety, or seeks to prevent or
materially delay consummation of the Aviza Merger or any other
transaction contemplated by this Agreement or any Ancillary
Agreement. None of Aviza or any Aviza Subsidiary is subject to any
outstanding order, writ, injunction, decree or arbitration ruling,
award or other finding which has had or would, individually or in
the aggregate, reasonably be expected to (1) prevent or materially
delay consummation of the Aviza Merger; (2) otherwise prevent or
materially delay performance by Aviza of any of its material
obligations under this Agreement or any Ancillary Agreement to
which it is a party or (3) result in an Aviza Material Adverse
Effect.
Section 3.15
Environmental Matters . Except as would not, individually or
in the aggregate, reasonably be expected to have an Aviza Material
Adverse Effect:
Section 3.15.1 No
fact, circumstance or condition exists with respect to Aviza or any
Aviza Subsidiary or any property currently or formerly owned,
operated or leased by Aviza or any Aviza Subsidiary or any property
to which Aviza or any Aviza Subsidiary arranged for the disposal or
treatment of Hazardous Materials that would reasonably be expected
to result in Aviza or any Aviza Subsidiary incurring any costs or
liabilities under any Environmental Law.
Section 3.15.2 Aviza
and each Aviza Subsidiary (A) is in compliance with all, and is not
presently incurring and is not reasonably likely to actually incur
any liability with respect to any violation of any, applicable
Environmental Laws; (B) holds or has applied for all Environmental
Permits necessary to conduct their current operations; (C) is in
compliance with their respective Environmental Permits and (D) does
not have knowledge of the release of any Hazardous Materials in,
on, under or above any real property owned or leased by Aviza or
any Aviza Subsidiary.
23
Section 3.15.3 None of
Aviza or any Aviza Subsidiary has received any written notice,
demand, letter, claim or request for information alleging that
Aviza or any Aviza Subsidiary may be in violation of, or is
reasonably likely to incur liability under, any Environmental
Law.
Section 3.15.4 None of
Aviza or any Aviza Subsidiary (A) has entered into or agreed to any
consent decree or order or is subject to any judgment, decree or
judicial order relating to compliance with Environmental Laws,
Environmental Permits or the investigation, sampling, monitoring,
treatment, remediation, removal or cleanup of Hazardous Materials
and, to the knowledge of Aviza, no investigation, litigation or
other proceeding is pending or threatened in writing with respect
thereto or (B) is an indemnitor in connection with any claim
threatened or asserted in writing by any third-party indemnitee for
any liability under any Environmental Law or relating to any
Hazardous Materials.
Section 3.15.5 None of
the real property owned or leased by Aviza or any Aviza Subsidiary
is listed or, to the knowledge of Aviza, proposed for listing on
the “National Priorities List” under CERCLA, as updated
through the date hereof, or any similar state or foreign list of
sites requiring investigation or cleanup.
Section 3.16
Intellectual Property .
Section 3.16.1
General. Section 3.16.1 of the Aviza Disclosure Schedule
lists all of the Intellectual Property Rights owned by Aviza that
Aviza has registered or has applied for registration with any
Governmental Entity (including the United States Patent and
Trademark Office). In the three (3)-year period immediately
preceding the date of this Agreement, Aviza has not transferred
ownership of any Intellectual Property Rights that were subject to
a registration or application with any Governmental Entity. To the
knowledge of Aviza, Aviza owns or has the valid and enforceable
right to use, whether through ownership, licensing or otherwise,
all Intellectual Property material to the businesses of Aviza and
each Aviza Subsidiary as such businesses are conducted on the date
hereof. No written claim of invalidity or conflicting ownership
rights with respect to any material Intellectual Property owned or
used by Aviza (“ Aviza Material Intellectual Property
,” and the Intellectual Property Rights therein, the “
Aviza Material Intellectual Property Rights ”) has
been made by a third party against Aviza or any Aviza Subsidiary
and no such Aviza Material Intellectual Property is, to the
knowledge of Aviza, the subject of any pending or threatened
action, suit, claim, investigation, arbitration or other
proceeding. No person has given written notice to Aviza or any
Aviza Subsidiary that the use of any Aviza Material Intellectual
Property by Aviza or any Aviza Subsidiary or any of their licensees
(under license from Aviza or any Aviza Subsidiary) is infringing,
misappropriating or otherwise violating any third-party
Intellectual Property Rights. To Aviza’s knowledge,
Aviza’s making, using, selling, manufacturing, marketing,
licensing, reproduction, distribution or publishing of its process,
machine, manufacture or product has not involved and does not
involve any infringement, misappropriation or violation of any
Intellectual Property Rights of any third party. To Aviza’s
knowledge, there exists no prior act or current conduct or use by
Aviza, any Aviza Subsidiary or any third party that has materially
affected, voided or invalidated any Aviza Material Intellectual
Property. The execution, delivery and performance by Aviza of this
Agreement and each Ancillary Agreement to which Aviza is a party
and the consummation of the transactions contemplated hereby and
thereby will not breach,
24
violate or conflict with any instrument
or agreement to which Aviza is a party concerning any Aviza
Material Intellectual Property, and will not as a result of any
such agreement or instrument to which Aviza is bound cause the
impairment or invalidity of any Aviza Material Intellectual
Property.
Section 3.16.2
Outbound and Inbound Licenses . Other than non-exclusive
licenses granted in the ordinary course of business, Section 3.16.2
of the Aviza Disclosure Schedule accurately identifies each
Contract pursuant to which (i) any person has been granted any
license under, or otherwise has received or acquired any right
(whether or not currently exercisable) or interest in, any Aviza
Material Intellectual Property and (ii) Aviza or any Aviza
Subsidiary has been granted any license under, or otherwise has
received or acquired any right (whether or not currently
exercisable) or interest in, any material third-party Intellectual
Property. Following the Closing Date, the Aviza Surviving
Corporation will be permitted to exercise all of Aviza’s and
the Aviza Subsidiaries’ rights under such Contracts to the
same extent Aviza and the Aviza Subsidiaries would have been able
to had the transactions contemplated by this Agreement not
occurred. Aviza is not bound by, and no Aviza Material Intellectual
Property is subject to, any Contract containing any covenant or
other provision that in any way limits or restricts the ability of
Aviza or any Aviza Subsidiary to use, exploit, assert or enforce
any Aviza Material Intellectual Property anywhere in the
world.
Section 3.16.3 Neither
this Agreement nor the transactions contemplated by this Agreement
will result in (i) Aviza’s granting to any third party,
forfeiting or terminating any right to or with respect to any Aviza
Material Intellectual Property; (ii) Aviza’s being bound by,
or subject to, any non-compete or other restriction on the
operation or scope of its business or (iii) Aviza’s being
obligated to pay any royalties or other amounts to any third party
in excess of those payable by Aviza prior to the
Closing.
Section 3.16.4
Aviza Material Intellectual Property . Aviza exclusively
owns, or has the license to use, all right, title, and interest to
and in Aviza Material Intellectual Property free and clear of any
encumbrances (other than non-exclusive licenses granted in the
ordinary course of business). Aviza and its Subsidiaries have taken
reasonable steps to protect their right, title and interest in all
Aviza Material Intellectual Property in the ordinary course of
business. Without limiting the generality of the foregoing: (i)
Aviza and the Aviza Subsidiaries have taken reasonable steps to
maintain the confidentiality of and otherwise protect and enforce
their rights in all material proprietary information that Aviza or
any Aviza Subsidiary holds, or purports to hold, as a trade secret;
(ii) all documents and instruments necessary to perfect and
maintain the rights of Aviza or any Aviza Subsidiary in Aviza
Material Intellectual Property Rights have been validly executed,
delivered, and filed in a timely manner with the appropriate
Governmental Entity except where Aviza has made a reasonable
business judgment not to maintain or perfect such Aviza Material
Intellectual Property Rights through registration with a
Governmental Entity; (iii) no funding, facilities, or personnel of
any Governmental Entity were used, directly or indirectly, to
develop or create, in whole or in part, any Aviza Material
Intellectual Property and (iv) Aviza or any Aviza Subsidiary is not
and never was a member or promoter of, or a contributor to, any
industry standards body or similar organization that could require
or obligate Aviza or any Aviza Subsidiary to grant or offer to any
other person any license or right to any Aviza Material
Intellectual Property Rights. To Aviza’s knowledge, no person
has infringed, misappropriated, or otherwise violated, and no
person is (or is suspected to be) currently infringing,
misappropriating or otherwise violating any Aviza Material
Intellectual Property Rights.
25
Section 3.16.5 Employees
and Contractors . Each person who is or was an employee or
contractor of Aviza or any Aviza Subsidiary and who is or was
involved in the creation or development of any Aviza Material
Intellectual Property has signed a valid, enforceable agreement
containing an assignment of Intellectual Property to Aviza and
appropriate confidentiality provisions, except to the extent such
an agreement is not permitted by relevant Law. To Aviza’s
knowledge, no current employee of Aviza or any Aviza Subsidiary is
(and no former employee of Aviza or any Aviza Subsidiary was,
during the term of his or her employment with Aviza or any Aviza
Subsidiary) bound by or otherwise subject to any Contract
restricting him or her from performing his or her duties for Aviza
or any Aviza Subsidiary or (B) in breach of any Contract with any
former employer or other person concerning Intellectual Property
rights or confidentiality.
Section 3.16.6 Bugs .
To Aviza’s knowledge, none of the software (including
firmware and other software embedded in hardware devices) owned,
developed (or currently being developed), used, marketed,
distributed, licensed or sold by Aviza or any Aviza Subsidiary
contains any bug, defect (including any material deviation from
such software’s written specifications) or error that
materially and adversely affects the use, functionality or
performance of such software or any product or system containing or
used in conjunction with such software.
Section 3.17
Taxes .
Section 3.17.1 Aviza
and each Aviza Subsidiary has timely filed all Tax Returns with the
appropriate taxing authority required to be filed, taking into
account any extensions of time within which to file such Tax
Returns, and all such Tax Returns were complete and correct in all
material respects. All Taxes due and payable by any of Aviza and
the Aviza Subsidiaries (whether or not shown due on such filed Tax
Returns) have been paid, and the unpaid Taxes of Aviza and the
Aviza Subsidiaries did not, as of the dates of the most recent
Aviza Financial Statements, exceed the reserve for Tax liability
(excluding any reserve for deferred Taxes established to reflect
timing differences between book and Tax income) set forth on the
face of the balance sheets (rather than in any notes thereto)
contained in such Aviza Financial Statements, and none of Aviza or
any Aviza Subsidiary has incurred any liability for Taxes since the
date of the most recent Aviza Financial Statements other than in
the ordinary course of business, in each case subject to such
exceptions as would not be reasonably expected to be
material.
Section 3.17.2 Except
as would not be reasonably expected to be material: (A) no
deficiencies for Taxes with respect to any of Aviza and the Aviza
Subsidiaries have been claimed, proposed or assessed by a Tax
authority or other Governmental Entity; (B) to the knowledge of
Aviza, there are no pending or threatened audits, assessments,
investigations or other actions for or relating to any liability in
respect of Taxes of any of Aviza and the Aviza Subsidiaries; (C)
there are no matters under discussion with any Governmental Entity,
or known to Aviza or any Aviza Subsidiary with respect to Taxes
that are likely to result in an additional Liability for Taxes with
respect to any of Aviza and the Aviza Subsidiaries and (D) no claim
has
26
ever been made by an authority in a
jurisdiction where any of Aviza or Aviza Subsidiaries does not file
Tax Returns that it is or may be subject to taxation by that
jurisdiction. Neither Aviza nor any of the Aviza Subsidiaries nor
any predecessor has waived any statute of limitations in respect of
Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency, nor has any request been made in writing
for any such extension or waiver.
Section 3.17.3 There
are no Tax liens upon any asset of Aviza or any Aviza Subsidiary
except liens for current Taxes not yet due and payable and liens
for Taxes that are being contested in good faith by appropriate
proceedings and for which adequate reserves, if required in
accordance with GAAP, have been provided in Aviza’s most
recent Aviza Financial Statements, subject to such exceptions as
would not be reasonably expected to be material.
Section 3.17.4 Aviza
and each Aviza Subsidiary has withheld and paid all Taxes required
to have been withheld and paid in connection with amounts paid or
owing to any employee, independent contractor, creditor,
stockholder or other third party.
Section 3.17.5 None of
Aviza or any Aviza Subsidiary is liable for the Taxes of any person
(other than Aviza or the Aviza Subsidiaries) under Treasury
Regulation Section 1.1502-6 (or any similar provision of state,
local or foreign Law, including any arrangement for group Tax
relief within a jurisdiction), as a transferee or successor, by
contract or otherwise which could reasonably be expected to be
material. None of Aviza or any Aviza Subsidiary has ever been a
member of any affiliated group (within the meaning of Section
1504(a) of the Code) filing a consolidated federal income Tax
Return (other than a group the common parent of which was
Aviza).
Section 3.17.6 Aviza
has not been a United States real property holding corporation
within the meaning of Section 897(c)(2) of the Code during the
applicable period described in Section 897(c)(1)(A)(ii) of the
Code.
Section 3.17.7 None of
Aviza or any Aviza Subsidiary is a party to any contract, plan or
arrangement, under which it is obligated to make or to provide, or
could be become obligated to make or to provide, a payment or
benefit that would be nondeductible under Section 280G of the
Code.
Section 3.17.8 None of
Aviza or any Aviza Subsidiary is a party to, is bound by or has any
obligation under any Tax sharing, Tax allocation or Tax indemnity
agreement or similar contract or arrangement.
Section 3.17.9 Neither
Aviza nor any Aviza Subsidiary has been a party to any distribution
in which the parties to such distribution treated the distribution
as one to which Section 355 of the Code is applicable.
Section 3.17.10
Neither Aviza nor any Aviza Subsidiary (A) is a partner for Tax
purposes with respect to any joint venture, partnership, or other
arrangement or contract which is treated as a partnership for Tax
purposes; (B) owns a single member limited liability company which
is treated as a disregarded entity; (C) is a stockholder of a
“controlled foreign corporation” as defined in Section
957 of the Code (or any similar provision of state, local or
foreign Law; (D) is a “personal holding company” as
defined in Section 542 of the Code (or any similar provision of
state, local or foreign Law) or (E) is a “passive foreign
investment company” within the meaning of Section 1297 of the
Code.
27
Section 3.17.11
Neither Aviza nor any Aviza Subsidiary has engaged in a transaction
that is the same as or substantially similar to one of the types of
transactions that the IRS has determined to be a Tax avoidance
transaction and identified by notice, regulation or other form of
published guidance as a listed transaction, as set forth in
Treasury Regulation Section 1.6011-4(b)(2).
Section 3.17.12
Neither Aviza nor any Aviza Subsidiary has or has had a permanent
establishment in any foreign country, as defined in any applicable
Tax treaty or convention between the United States and such foreign
country.
Section 3.17.13
Neither Aviza nor any Aviza Subsidiary has agreed or is required to
make any adjustment under Section 481(a) of the Code as a result of
any change in method of accounting.
Section 3.18
Insurance . Aviza maintains insurance coverage with
reputable insurers, or maintains self-insurance practices, in such
amounts and covering such risks as are in accordance with normal
industry practice for companies engaged in businesses similar to
that of Aviza (taking into account the cost and availability of
such insurance). Section 3.18 of the Aviza Disclosure Schedule sets
forth a list of all of Aviza’s insurance policies.
Section 3.19 Vote
Required . The affirmative vote of each of (A) the holders of
at least sixty-six and two-thirds percent (66 2 / 3 %) of the outstanding shares of Aviza Series A Preferred
Stock and (B) the holders of a majority in voting power of the
outstanding shares of Aviza Series A Preferred Stock and Aviza
Common Stock, voting together as a single class on an as-converted
basis, are the only votes of the holders of Aviza Stock or other
Equity Interests of Aviza necessary to adopt this Agreement and
approve the Aviza Merger.
Section 3.20
Brokers . Except as set forth on Section 3.20 of the Aviza
Disclosure Schedule, no broker, finder or investment banker (other
than the Aviza Financial Advisor) is entitled to any brokerage,
finder’s or other fee or commission in connection with the
Aviza Merger based upon arrangements made by or on behalf of Aviza
or any Aviza Subsidiary. Aviza has heretofore made available to
Trikon a true and complete copy of all agreements between Aviza and
the Aviza Financial Advisor pursuant to which such firm would be
entitled to any payment relating to the Aviza Merger or any other
transaction contemplated by this Agreement or any Ancillary
Agreement.
Section 3.21 Real
Property .
Section 3.21.1 Section
3.21.1 of the Aviza Disclosure Schedule sets forth a complete and
accurate list of all real property currently or previously owned by
Aviza or any Aviza Subsidiary (collectively, the “ Aviza
Owned Real Property ”). Except as set forth on Section
3.21.1 of the Aviza Disclosure Schedule, neither Aviza nor any
Aviza Subsidiary owns or has ever owned any real property. Aviza or
an Aviza Subsidiary owns all of the Aviza Owned Real Property free
and clear of all Encumbrances, other than Permitted
Encumbrances.
28
Section 3.21.2 Section
3.21.2 of the Aviza Disclosure Schedule sets forth a complete and
accurate list of all leases, licenses and other agreements to which
Aviza or any Aviza Subsidiary is a party pertaining to the use or
occupancy of any real property by Aviza or any Aviza Subsidiary
(collectively, the “ Aviza Leases ,” the subject
premises thereof, the “ Aviza Leased Real Property
” and, together with the Aviza Owned Property, the “
Aviza Real Property ”). Aviza has provided Trikon with
a true and complete copy of each Aviza Lease. Each of Aviza and the
Aviza Subsidiaries has complied in all material respects with the
material terms of the Aviza Leases to which it is a party and under
which it is currently in occupancy and enjoys peaceful and
undisturbed possession of such Aviza Leased Real Property under the
Aviza Leases. Neither Aviza nor any Aviza Subsidiary has
transferred, mortgaged or assigned any interest in any Aviza Lease,
nor has Aviza or any Aviza Subsidiary subleased or otherwise
granted rights of use or occupancy of any Aviza Leased Real
Property to any other person. Each Aviza Lease is in full force and
effect and no material breach by Aviza or any Aviza Subsidiary
exists under any Aviza Lease.
Section 3.21.3 Each of
the plants, buildings, structures and facilities located on the
Aviza Owned Real Property is in reasonably good repair and
operating condition in all material respects, ordinary wear and
tear excepted. To the knowledge of Aviza, there are no pending or
threatened activities of any Governmental Entity either planned, in
process or completed which would reasonably be expected to give
rise to any material special assessment against any Aviza Owned
Real Property.
Article 4.
Representations and
Warranties of Trikon
Except as set forth in the
Disclosure Schedule delivered by Trikon to Aviza prior to the
execution of this Agreement (the “ Trikon Disclosure
Schedule ”), which identifies exceptions by specific
Section references, Trikon hereby represents and warrants to Aviza
as follows:
Section 4.1
Organization and Qualification; Subsidiaries . Trikon is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. Each subsidiary of Trikon
(each a “ Trikon Subsidiary ” and, collectively,
the “ Trikon Subsidiaries ”) has been duly
organized, and is validly existing and in good standing under the
laws of the jurisdiction of its incorporation or organization, as
the case may be. Each of Trikon and each Trikon Subsidiary has the
requisite power and authority and all necessary governmental
approvals to own, lease and operate its properties and to carry on
its business as it is now being conducted. Each of Trikon and each
Trikon Subsidiary is duly qualified or licensed to do business, and
is in good standing, in each jurisdiction where the character of
the properties owned, leased or operated by it or the nature of its
business makes such qualification, licensing or good standing
necessary, except for such failures to be so qualified, licensed or
in good standing that would not, individually or in the aggregate,
reasonably be expected to have a Trikon Material Adverse Effect.
Section 4.1 of the Trikon Disclosure Schedule sets forth a true and
complete list of all of the Trikon Subsidiaries. None of Trikon or
any Trikon Subsidiary holds an Equity Interest in any other person
other than the Trikon Subsidiaries.
29
Section 4.2
Certificate of Incorporation and Bylaws; Corporate Books and
Records . The copies of Trikon’s Certificate of
Incorporation (the “ Trikon Certificate ”) and
Bylaws (the “ Trikon Bylaws ”) that are listed
as exhibits to Trikon’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2003 (the “ Trikon Form
10-K ”) are complete and correct copies thereof as in
effect on the date hereof. Trikon is not in violation of any of the
provisions of the Trikon Certificate or the Trikon Bylaws. True and
complete copies of all minute books of Trikon and each Trikon
Subsidiary have been made available by Trikon to Aviza.
Section 4.3
Capitalization . The authorized capital stock of Trikon
consists of Twenty Million (20,000,000) shares of preferred stock,
par value $0.001 per share, of Trikon (the “ Trikon
Preferred Stock ” and, together with the Trikon Common
Stock, the “ Trikon Stock ”) and Fifty Million
(50,000,000) shares of Trikon Common Stock. As of the date hereof,
(A) no shares of Trikon Preferred Stock were issued and
outstanding; (B) Fifteen Million Seven Hundred Fifty-Four Thousand
Nine Hundred Eighty-Five (15,754,985) shares of Trikon Common Stock
were issued and outstanding, all of which were validly issued,
fully paid, nonassessable and free of preemptive rights; (C) no
shares of Trikon Preferred Stock or Trikon Common Stock were held
in the treasury of Trikon or by the Trikon Subsidiaries; (D) One
Million Five Hundred Forty-Nine Thousand Two Hundred Sixty-Three
(1,549,263) shares of Trikon Common Stock were issuable (and such
number was reserved for issuance) upon exercise of Trikon Options
outstanding as of such date and (E) Four Hundred Ninety-Five
Thousand Ninety-Three (495,093) shares of Trikon Common Stock were
issuable (and such number was reserved for issuance) upon exercise
of Trikon Warrants outstanding as of such date. Except for (A)
Trikon Options to purchase One Million Five Hundred Forty-Nine
Thousand Two Hundred Sixty-Three (1,549,263) shares of Trikon
Common Stock and (B) Trikon Warrants to purchase Four Hundred
Ninety-Five Thousand Ninety-Three (495,093) shares of Trikon Common
Stock, there are no options, warrants or other rights, agreements,
arrangements or commitments of any character to which Trikon or any
Trikon Subsidiary is a party or by which Trikon or any Trikon
Subsidiary is bound relating to the issued or unissued capital
stock or other Equity Interests of Trikon or any Trikon Subsidiary,
or securities convertible into or exchangeable for such capital
stock or other Equity Interests, or obligating Trikon or any Trikon
Subsidiary to issue or sell any shares of its capital stock or
other Equity Interests, or securities convertible into or
exchangeable for such capital stock of, or other Equity Interests
in, Trikon or any Trikon Subsidiary. Since October 31, 2004, Trikon
has not issued any shares of its capital stock, or securities
convertible into or exchangeable for such capital stock or other
Equity Interests, other than those shares of capital stock reserved
for issuance as set forth in this Section 4.3. Trikon has
previously provided Aviza with a true and complete list, as of the
date hereof, of the prices at which all outstanding Trikon Options
and Trikon Warrants may be exercised, the number of Trikon Options
and Trikon Warrants outstanding at each such price and the vesting
schedule for each Trikon Option. All shares of Trikon Stock subject
to issuance pursuant to Trikon Options and Trikon Warrants, upon
issuance on the terms and conditions specified in the instruments
pursuant to which they are issuable, will be duly authorized,
validly issued, fully paid, nonassessable and free of preemptive
rights. There are no outstanding contractual obligations of Trikon
or any Trikon Subsidiary (A)
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