Exhibit 2.1
AGREEMENT
AND PLAN OF MERGER AND REORGANIZATION
among:
TORREYPINES
THERAPEUTICS,
INC.,
a Delaware corporation;
ECP ACQUISITION, INC.,
a Delaware corporation; and
RAPTOR PHARMACEUTICALS CORP. ,
a Delaware corporation
___________________________
Dated as of July 27, 2009
___________________________
LEGAL_US_W # 62319343.5
TABLE OF CONTENTS
Page
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SECTION 1
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DESCRIPTION OF TRANSACTION
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2
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1.1
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Merger of Merger Sub with and into
Raptor
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2
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1.2
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Effect of the Merger
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2
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1.3
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Closing; Effective Time
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2
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1.4
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Certificate of Incorporation and Bylaws;
Directors and Officers
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2
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1.5
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Conversion of Shares
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3
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1.6
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Stock Options; Warrants
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4
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1.7
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Closing of Raptor’s Transfer
Books
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6
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1.8
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Exchange of Certificates
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6
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1.9
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Tax Consequences
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7
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1.10
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Appraisal Rights
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7
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1.11
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Further Action
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8
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SECTION 2
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REPRESENTATIONS AND WARRANTIES OF TPT
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8
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2.1
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Organization and Good Standing
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8
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2.2
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Authority; No Conflict
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9
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2.3
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Capitalization
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10
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2.4
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SEC Reports
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12
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2.5
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Financial Statements
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13
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2.6
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Property; Sufficiency of Assets
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14
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2.7
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Real Property; Equipment; Leasehold
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14
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2.8
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Proprietary Rights
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14
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2.9
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No Undisclosed Liabilities
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17
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2.10
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Taxes
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17
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2.11
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Employee Benefits
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20
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2.12
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Compliance with Legal Requirements; Governmental
Authorizations
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23
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2.13
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Environmental Matters
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25
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2.14
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Legal Proceedings
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26
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2.15
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Absence of Certain Changes and Events
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27
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2.16
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Contracts; No Defaults
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28
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2.17
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Insurance
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31
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2.18
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Labor Matters
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31
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2.19
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Interests of Officers and Directors
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32
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2.20
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Rights Plan; DGCL Section 203
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32
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2.21
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Brokers; Fees and Expenses
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33
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2.22
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Trading on NASDAQ
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33
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2.23
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Valid Issuance
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33
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2.24
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Disclosure
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33
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2.25
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TPT Action
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33
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SECTION 3
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REPRESENTATIONS AND WARRANTIES OF RAPTOR
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34
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3.1
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Organization and Good Standing
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34
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3.2
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Authority; No Conflict
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34
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3.3
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Capitalization
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36
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3.4
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SEC Reports
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37
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LEGAL_US_W # 62319343.5
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TABLE OF CONTENTS
(continued)
Page
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3.5
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Financial Statements
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38
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3.6
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Proprietary Rights
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39
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3.7
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No Undisclosed Liabilities
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41
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3.8
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Taxes
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41
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3.9
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Compliance with Legal Requirements; Governmental
Authorizations
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42
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3.10
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Legal Proceedings
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43
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3.11
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Absence of Certain Changes and Events
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44
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3.12
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Contracts; No Defaults
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44
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3.13
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Raptor Action
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45
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3.14
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Rights Plan
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45
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3.15
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Disclosure
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45
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SECTION 4
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CERTAIN PRE-CLOSING COVENANTS
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45
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4.1
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Access and Investigation
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45
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4.2
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Operation of TPT’s Business
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46
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4.3
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Operation of Raptor’s Business
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50
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4.4
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No Control of the TPT Corporations’
Business
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51
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4.5
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No Solicitation
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51
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4.6
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Registration Statement; Prospectus/Joint Proxy
Statement
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53
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4.7
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TPT Stockholders’ Meeting
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53
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4.8
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Raptor Stockholders’ Meeting
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54
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4.9
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Regulatory Approvals
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55
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4.10
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Disclosure
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56
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4.11
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Tax Matters
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57
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4.12
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Resignation of Officers and Directors
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57
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4.13
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Listing
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57
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4.14
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Rule 16b-3
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58
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4.15
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Employment; Employee Benefits
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58
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4.16
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State Takeover Laws
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58
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4.17
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Board of Directors; Officers
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58
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4.18
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Charter Amendments
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58
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4.19
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Indemnification of Officers and
Directors
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58
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SECTION 5
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CONDITIONS PRECEDENT TO OBLIGATIONS OF RAPTOR
|
59
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5.1
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Accuracy of Representations and
Warranties
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60
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5.2
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Performance of Covenants
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60
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5.3
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Effectiveness of Form S-4 Registration
Statement
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60
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5.4
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Stockholder Approval
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60
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5.5
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Dissenters’ Rights
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60
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5.6
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Listing
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61
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5.7
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No Material Adverse Effect
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61
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5.8
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Consents
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61
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5.9
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No Restraints
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61
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5.10
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No Litigation
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61
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LEGAL_US_W # 62319343.5
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TABLE OF CONTENTS
(continued)
Page
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5.11
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Tax Opinion
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61
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5.12
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Cash and Cash Equivalents
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61
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5.13
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Resignations
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62
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5.14
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Ancillary Agreements and Deliveries
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62
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5.15
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Releases
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62
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SECTION 6
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CONDITIONS PRECEDENT TO OBLIGATIONS OF TPT
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62
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6.1
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Representations and Warranties
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62
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6.2
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Performance of Covenants
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62
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6.3
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Effectiveness of Form S-4 Registration
Statement
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62
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6.4
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Stockholder Approval
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63
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6.5
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Listing
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63
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6.6
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No Material Adverse Effect
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63
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6.7
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Consents
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63
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6.8
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No Restraints
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63
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6.9
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No Litigation
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63
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6.10
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Tax Opinion
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63
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6.11
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Ancillary Agreements and Deliveries
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64
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SECTION 7
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TERMINATION
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64
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7.1
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Termination
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64
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7.2
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Effect of Termination
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65
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7.3
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Expenses
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66
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SECTION 8
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MISCELLANEOUS PROVISIONS
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67
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8.1
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Amendment
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67
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8.2
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Remedies Cumulative; Waiver
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67
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8.3
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No Survival
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67
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8.4
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Entire Agreement
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68
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8.5
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Execution of Agreement; Counterparts; Electronic
Signatures
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68
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8.6
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Governing Law
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68
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8.7
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Consent to Jurisdiction; Venue
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68
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8.8
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WAIVER OF JURY TRIAL
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68
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8.9
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Disclosure Schedules
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69
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8.10
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Attorneys’ Fees
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69
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8.11
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Assignments and Successors
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69
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8.12
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No Third Party Rights
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69
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8.13
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Notices
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70
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8.14
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Cooperation; Further Assurances
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71
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8.15
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Construction; Usage
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71
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8.16
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Enforcement of Agreement
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72
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8.17
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Severability
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72
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8.18
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Time of Essence
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72
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LEGAL_US_W # 62319343.5
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AGREEMENT AND PLAN OF MERGER AND
REORGANIZATION
THIS AGREEMENT AND PLAN OF MERGER AND REORGANIZATION is made and entered into as of July 27, 2009, by
and among RAPTOR PHARMACEUTICALS CORP. , a Delaware corporation (“
Raptor ”), TORREYPINES
THERAPEUTICS,
INC., a Delaware corporation (“
TPT ”), and ECP ACQUISITION, INC. , a Delaware corporation and a wholly owned
subsidiary of TPT (“ Merger Sub ”).
Capitalized terms used in this Agreement are defined in
Exhibit A .
RECITALS
A. Raptor,
TPT and Merger Sub intend to effect a merger of Merger Sub with and
into Raptor in accordance with the Delaware General Corporation Law
(the “ DGCL ”) and this Agreement (the
“ Merger ”). Upon consummation of the
Merger, Merger Sub will cease to exist, and Raptor will become a
wholly owned subsidiary of TPT.
B. It
is intended that the Merger qualify as a tax-free reorganization
within the meaning of Section 368(a) of the Internal Revenue
Code of 1986, as amended (the “ Code
”).
C. The
respective boards of directors of Raptor, TPT and Merger Sub have
each adopted a resolution approving and declaring the advisability
of this Agreement, the Merger and each of the other Contemplated
Transactions, as applicable.
D. As
a condition and inducement to Raptor’s, TPT’s and
Merger Sub’s willingness to enter into this Agreement and to
consummate the Merger, concurrently with the execution and delivery
of this Agreement, directors and executive officers of TPT and
Raptor, respectively, who own TPT Common Stock and Raptor Common
Stock, respectively, are executing voting agreements in favor of
Raptor and TPT, respectively (the “ Voting
Agreements ”) whereby such TPT stockholders and
Raptor stockholders have agreed to vote their shares of TPT Common
Stock and Raptor Common Stock, as applicable, in accordance
therewith, respectively, each in the manner and subject to the
other terms and conditions set forth therein.
E. Each
of Evelyn Graham, Craig Johnson and Paul Schneider, respectively,
have executed and delivered amended and restated employment
agreements with TPTX, Inc., a Delaware corporation and wholly-owned
subsidiary of TPT (the “ Employment Agreements
”), the forms of which are attached hereto as Exhibits
B , C and D , respectively, such Employment
Agreements to become effective as of the Effective Date.
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LEGAL_US_W # 62319343.5
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AGREEMENT
The parties to this Agreement,
intending to be legally bound, agree as follows:
SECTION 1
DESCRIPTION OF
TRANSACTION
1.1
Merger of Merger Sub with and into Raptor . Upon the terms
and subject to the conditions set forth in this Agreement, at the
Effective Time, Merger Sub shall be merged with and into Raptor,
and the separate existence of Merger Sub shall cease. Following the
Effective Time, Raptor shall continue as the surviving corporation
(the “ Surviving Corporation
”).
1.2
Effect of the Merger . The Merger shall have the effects set
forth in this Agreement and in the applicable provisions of the
DGCL.
1.3
Closing; Effective Time . The consummation of the Merger
(the “ Closing ”) shall take place at the
offices of Paul, Hastings, Janofsky & Walker LLP, 515 S. Flower
St., 25th Flr., Los Angeles, California 90071, at 10:00 a.m. on a
date to be agreed upon in writing by TPT and Raptor (the “
Closing Date ”), which shall be no later than
the third Business Day after the satisfaction or waiver of the last
to be satisfied or waived of the conditions set forth in
Sections 5 and 6 (other than those conditions that by their
nature are to be satisfied at the Closing, but subject to the
satisfaction or waiver of such conditions). Subject to the
provisions of this Agreement, a certificate of merger satisfying
the applicable requirements of the DGCL (the “
Certificate of Merger ”) shall be duly executed
by Raptor and, simultaneously with or as soon as practicable
following the Closing, filed with the Secretary of State of the
State of Delaware (the “ Secretary of State
”). The Merger shall become effective upon the later of:
(a) the date and time of the filing of the Certificate of
Merger with the Secretary of State, or (b) such later date and
time as may be specified in the Certificate of Merger with the
Consent of the Parties. The date and time the Merger becomes
effective is referred to in this Agreement as the “
Effective Time .”
1.4
Certificate of Incorporation and Bylaws; Directors and
Officers . At the Effective Time:
(a) the
certificate of incorporation of Raptor shall be amended as a result
of the Merger to contain terms and conditions acceptable to Raptor,
in its sole and absolute discretion, subject to the requirements of
Section 4.18 of this Agreement, and, as so amended, shall be the
certificate of incorporation of the Surviving Corporation from and
after the Effective Time, until thereafter changed or amended as
provided therein or by applicable Legal Requirement;
(b) the
bylaws of Raptor shall be amended to contain terms and conditions
acceptable to Raptor, in its sole and absolute discretion, subject
to the requirements of Section 4.19 of this Agreement, and, as so
amended, shall be the bylaws of the Surviving Corporation from and
after the Effective Time, until thereafter changed or amended as
provided therein or by applicable Legal Requirement;
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LEGAL_US_W # 62319343.5
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(c) the
certificate of incorporation of TPT shall be amended and restated
immediately prior to the Merger so as to (i) accomplish the Reverse
Stock Split, (ii) change the name of TPT to Raptor Pharmaceutical
Corp. or such other name as Raptor shall determine and (iii) to
contain such other terms and conditions as are acceptable to
Raptor, in its sole and absolute discretion, subject to the
requirements of Section 4.18 of this Agreement, and as so amended,
shall be the certificate of incorporation of TPT from and after the
Effective Time, until thereafter changed or amended as provided
therein or by applicable Legal Requirement (the “
TPT Charter Amendment ”);
and
(d) the
directors and officers of TPT and the Surviving Corporation
immediately after the Effective Time shall be the respective
individuals who are directors and officers of Raptor immediately
prior to the Effective Time.
|
|
1.5
|
Conversion of Shares .
|
(a) At
the Effective Time, by virtue of the Merger and without any further
action on the part of Raptor, TPT, Merger Sub or any stockholder of
Raptor, TPT or Merger Sub:
(i) each
share of Raptor Common Stock then held by Raptor or any wholly
owned Subsidiary of Raptor (or held in Raptor’s treasury)
shall be canceled and retired and shall cease to exist, and no
consideration shall be delivered in exchange therefor;
(ii) each
share of Raptor Common Stock then held by TPT, Merger Sub or any
wholly-owned Subsidiary of TPT shall be canceled and retired and
shall cease to exist, and no consideration shall be delivered in
exchange therefor; and
(iii) subject
to Sections 1.5(b) and 1.5(c), each share of Raptor Common Stock
outstanding immediately prior to the Effective Time (excluding
shares to be cancelled pursuant to Sections 1.5(a)(i) and
1.5(a)(ii) and excluding Dissenting Shares) shall be converted
solely into the right to receive shares of TPT Common Stock equal
to the Exchange Ratio; and
(iv) each
share of the common stock, $0.0001 par value per share, of Merger
Sub then outstanding shall be converted into one share of common
stock of the Surviving Corporation.
(b) If,
between the date of this Agreement and the Effective Time, the
outstanding shares of TPT Common Stock or Raptor Common Stock are
changed into a different number or class of shares by reason of any
stock split, stock dividend, reverse stock split (including,
without limitation, the Reverse Stock Split), reclassification,
recapitalization or other similar transaction or event, then the
Exchange Ratio and the inputs thereto shall be appropriately
adjusted to provide the holders of Raptor Common Stock, Raptor
Stock Options and Raptor Warrants and TPT Common Stock, TPT
Restricted Stock Units, TPT Stock Options and TPT Warrants the same
economic effect as contemplated by this Agreement prior to such
event. No fractional shares of TPT Common Stock shall be issued in
connection with the Reverse Stock Split, and no certificates or
scrip for any such fractional shares shall be issued. Any holder of
TPT Common Stock who would otherwise be entitled to receive a
fraction of a share of TPT Common Stock (after aggregating all
fractional shares of TPT Common Stock
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LEGAL_US_W # 62319343.5
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issuable to such holder) shall, in
lieu of such fraction of a share and upon surrender of such
holder’s certificate representing such fractional shares of
TPT Common Stock, be paid in cash the dollar amount (provided to
the nearest whole cent), without interest, determined by
multiplying such fraction by the closing price of a share of TPT
Common Stock on the NASDAQ Global Market or the NASDAQ Capital
Market, as applicable, on the date immediately preceding the
effective date of the Reverse Stock Split.
(c) No
fractional shares of TPT Common Stock shall be issued in connection
with the Merger, and no certificates or scrip for any such
fractional shares shall be issued. Any holder of Raptor Common
Stock who would otherwise be entitled to receive a fraction of a
share of TPT Common Stock (after aggregating all fractional shares
of TPT Common Stock issuable to such holder) shall, in lieu of such
fraction of a share and, upon surrender of such holder’s
Raptor Stock Certificate(s), be paid in cash the dollar amount
(rounded to the nearest whole cent), without interest, determined
by multiplying such fraction by the closing price of a share of TPT
Common Stock on the NASDAQ Global Market or the NASDAQ Capital
Market, as applicable, on the Closing Date.
(d) If
any shares of Raptor Common Stock outstanding immediately prior to
the Effective Time are unvested or are subject to a repurchase
option, risk of forfeiture or other condition under any applicable
restricted stock purchase agreement or other agreement with Raptor,
then the shares of TPT Common Stock issued in exchange for such
shares of Raptor Common Stock will also be unvested and subject to
the same repurchase option, risk of forfeiture or other condition,
and the certificates representing such shares of TPT Common Stock
shall accordingly be marked with appropriate legends.
|
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1.6
|
Stock Options; Warrants .
|
(a) Subject
to Section 1.6(d), at the Effective Time, each Raptor Stock Option
that is outstanding and unexercised immediately prior to the
Effective Time, whether or not vested, shall be converted into and
become an option to purchase TPT Common Stock, and TPT shall assume
each such Raptor Stock Option in accordance with the terms (as in
effect as of the date of this Agreement) of the Raptor Stock Option
Plan under which such Raptor Stock Option was issued and the terms
of the stock option agreement by which such Raptor Stock Option is
evidenced. All rights with respect to Raptor Common Stock under
Raptor Stock Options assumed by TPT shall thereupon be converted
into rights with respect to TPT Common Stock. Accordingly, from and
after the Effective Time: (i) each Raptor Stock Option assumed by
TPT may be exercised solely for shares of TPT Common Stock; (ii)
the number of shares of TPT Common Stock subject to each Raptor
Stock Option assumed by TPT shall be determined by multiplying (A)
the number of shares of Raptor Common Stock that were subject to
such Raptor Stock Option, as in effect immediately prior to the
Effective Time by (B) the Exchange Ratio and rounding the resulting
number down to the nearest whole number of shares of TPT Common
Stock; (iii) the per share exercise price for the TPT Common Stock
issuable upon exercise of each Raptor Stock Option assumed by TPT
shall be determined by dividing (A) the per share exercise price of
Raptor Common Stock subject to such Raptor Stock Option, as in
effect immediately prior to the Effective Time, by (B) the Exchange
Ratio and rounding the resulting exercise price up to the nearest
whole cent; and (iv) any restriction on the exercise of any Raptor
Stock Option assumed by TPT shall continue in full force and effect
and the term, exercisability,
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LEGAL_US_W # 62319343.5
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vesting schedule and other
provisions of such Raptor Stock Option shall otherwise remain
unchanged; provided , however , that: (A) to the
extent provided under the terms of a Raptor Stock Option, such
Raptor Stock Option assumed by TPT in accordance with this Section
1.6(a) shall, in accordance with its terms, be subject to further
adjustment as appropriate to reflect any stock split, division or
subdivision of shares, stock dividend, reverse stock split
(including, without limitation, the Reverse Stock Split),
consolidation of shares, reclassification, recapitalization or
other similar transaction with respect to TPT Common Stock
occurring after the date of this Agreement; and (B) TPT’s
board of directors or a committee thereof shall succeed to the
authority and responsibility of Raptor’s board of directors
or any committee thereof with respect to each Raptor Stock Option
assumed by TPT. Notwithstanding anything to the contrary in this
Section 1.6(a), the conversion of each Raptor Stock Option
(regardless of whether such option qualifies as an “incentive
stock option” within the meaning of Section 422 of the Code)
into an option to purchase shares of TPT Common Stock shall be made
in a manner consistent with Treasury Regulation Section 1.424-1,
such that the conversion of a Raptor Stock Option shall not
constitute a “modification” of such Raptor Stock Option
for purposes of Section 409A or Section 424 of the Code.
(b) TPT
shall file with the SEC, no later than 60 days after the Effective
Time, a registration statement on Form S-8, if available for use by
TPT, relating to the shares of TPT Common Stock issuable with
respect to Raptor Stock Options assumed by TPT in accordance with
Section 1.6(a).
(c) Subject
to Section 1.6(d), at the Effective Time, each Raptor Warrant that
is outstanding and unexercised immediately prior to the Effective
Time, shall become converted into and become a warrant to purchase
TPT Common Stock and TPT shall assume each such Raptor Warrant in
accordance with its terms. All rights with respect to Raptor Common
Stock under Raptor Warrants assumed by TPT shall thereupon be
converted into rights with respect to TPT Common Stock.
Accordingly, from and after the Effective Time: (i) each Raptor
Warrant assumed by TPT may be exercised solely for shares of TPT
Common Stock; (ii) the number of shares of TPT Common Stock subject
to each Raptor Warrant assumed by TPT shall be determined by
multiplying (A) the number of shares of Raptor Common Stock
issuable upon exercise of the Raptor Warrant immediately prior to
the Effective Time by (B) the Exchange Ratio and rounding the
resulting number down to the nearest whole number of shares of TPT
Common Stock; (iii) the per share exercise price for the TPT Common
Stock issuable upon exercise of each Raptor Warrant assumed by TPT
shall be determined by dividing the effective per share exercise
price of Raptor Common Stock that are subject to such Raptor
Warrant, as in effect immediately prior to the Effective Time, by
the Exchange Ratio and rounding the resulting exercise price up to
the nearest whole cent; and (iv) any restriction on any Raptor
Warrant assumed by TPT shall continue in full force and effect and
the term and other provisions of such Raptor Warrant shall
otherwise remain unchanged; provided , however , that
to the extent provided under the terms of a Raptor Warrant, such
Raptor Warrant assumed by TPT in accordance with this Section
1.6(c) shall, in accordance with its terms, be subject to further
adjustment as appropriate to reflect any stock split, division or
subdivision of shares, stock dividend, reverse stock split
(including, without limitation, the Reverse Stock Split),
consolidation of shares, reclassification, recapitalization or
other similar transaction with respect to TPT Common Stock
occurring after the date of this Agreement.
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(d) Prior
to the Effective Time, Raptor shall take all actions that may be
necessary (under the Raptor Stock Option Plan, the Raptor Warrants
and otherwise) to effectuate the provisions of this Section 1.6 and
to ensure that, from and after the Effective Time, holders of
Raptor Stock Options and Raptor Warrants have no rights with
respect thereto other than those specifically provided in this
Section 1.6.
1.7
Closing of Raptor’s Transfer Books . At the Effective
Time: (a) all holders of certificates representing shares of
Raptor Common Stock that were outstanding immediately prior to the
Effective Time shall cease to have any rights as stockholders of
Raptor other than the right to receive shares of TPT Common Stock
(and cash in lieu of any fractional share of TPT Common Stock) as
contemplated by Section 1.5; and (b) the stock transfer
books of Raptor shall be closed with respect to all shares of
Raptor Common Stock outstanding immediately prior to the Effective
Time. No further transfer of any such shares of Raptor Common Stock
shall be made on such stock transfer books after the Effective
Time. If, after the Effective Time, a valid certificate previously
representing any shares of Raptor Common Stock (a “
Raptor Stock Certificate ”) is presented to the
Exchange Agent or to the Surviving Corporation or TPT, such Raptor
Stock Certificate shall be canceled and shall be exchanged as
provided in Section 1.8.
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1.8
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Exchange of Certificates .
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(a) On
or prior to the Closing Date, Raptor and TPT shall together select
a reputable bank, transfer agent or trust company to act as
exchange agent in the Merger (the “ Exchange
Agent ”). Promptly after the Effective Time, TPT
shall deposit with the Exchange Agent (i) certificates
representing the shares of TPT Common Stock issuable pursuant to
Section 1.5 and (ii) cash sufficient to make payments in
lieu of fractional shares in accordance with Section 1.5(c).
The shares of TPT Common Stock and cash amounts so deposited with
the Exchange Agent, together with any dividends or distributions
received by the Exchange Agent with respect to such shares, are
referred to collectively as the “ Exchange Fund
.”
(b) As
soon as reasonably practicable after the Effective Time, the
Exchange Agent will mail to the record holders of Raptor Stock
Certificates (i) a letter of transmittal in customary form and
containing such provisions as Raptor may reasonably specify
(including a provision confirming that delivery of Raptor Stock
Certificates shall be effected, and risk of loss and title to such
Raptor Stock Certificates shall pass, only upon delivery of such
Raptor Stock Certificates to the Exchange Agent), and
(ii) instructions for use in effecting the surrender of Raptor
Stock Certificates in exchange for certificates representing TPT
Common Stock. Upon surrender of a Raptor Stock Certificate to the
Exchange Agent for exchange, together with a duly executed letter
of transmittal and such other documents as may be reasonably
required by the Exchange Agent or Raptor, (A) the holder of
such Raptor Stock Certificate shall be entitled to receive in
exchange therefor a certificate representing the number of whole
shares of TPT Common Stock that such holder has the right to
receive pursuant to the provisions of Section 1.5 (and cash in
lieu of any fractional share of TPT Common Stock), and (B) the
Raptor Stock Certificate so surrendered shall be canceled. Until
surrendered as contemplated by this Section 1.8, each Raptor
Stock Certificate shall be deemed, from and after the Effective
Time, to represent only the right to receive shares of TPT Common
Stock (and cash in lieu of any fractional share of TPT Common
Stock) as contemplated by this Section 1. If any Raptor Stock
Certificate shall have been lost, stolen or destroyed, Raptor or
the Exchange Agent may, in its
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discretion and as a condition
precedent to the issuance of any certificate representing TPT
Common Stock, require the owner of such lost, stolen or destroyed
Raptor Stock Certificate to provide an appropriate affidavit and to
deliver a bond (in such sum as Raptor or the Exchange Agent may
reasonably direct) as indemnity against any claim that may be made
against the Exchange Agent, Raptor or the Surviving Corporation
with respect to such Raptor Stock Certificate.
(c) No
dividends or other distributions declared or made with respect to
TPT Common Stock with a record date after the Effective Time shall
be paid to the holder of any un-surrendered Raptor Stock
Certificate with respect to the shares of TPT Common Stock that
such holder has the right to receive in the Merger until such
holder surrenders such Raptor Stock Certificate in accordance with
this Section 1.8 (at which time such holder shall be entitled,
subject to the effect of applicable escheat or similar laws, to
receive all such dividends and distributions, without
interest).
(d) Any
portion of the Exchange Fund that remains undistributed to holders
of Raptor Stock Certificates as of the date 180 days after the
Effective Time shall be delivered to TPT upon demand, and any
holders of Raptor Stock Certificates who have not theretofore
surrendered their Raptor Stock Certificates in accordance with this
Section 1.8 shall thereafter look only to TPT for satisfaction
of their claims for TPT Common Stock, cash in lieu of fractional
shares of TPT Common Stock and any dividends or distributions with
respect to TPT Common Stock.
(e) Each
of the Exchange Agent, Raptor, TPT and the Surviving Corporation
shall be entitled to deduct and withhold from any consideration
payable or otherwise deliverable pursuant to this Agreement to any
holder or former holder of Raptor Common Stock such amounts as may
be required to be deducted or withheld therefrom under the Code or
any provision of state, local or foreign tax law or under any other
applicable Legal Requirement. To the extent such amounts are so
deducted or withheld, such amounts shall be treated for all
purposes under this Agreement as having been paid to the Person to
whom such amounts would otherwise have been paid.
(f) No
Merger Party shall be liable to any holder or former holder of
Raptor Common Stock or to any other Person with respect to any
shares of TPT Common Stock or Raptor Common Stock (or dividends or
distributions with respect thereto) or for any cash amounts,
properly delivered to any public official pursuant to any
applicable abandoned property law, escheat law or similar Legal
Requirement.
1.9
Tax Consequences . For federal income tax purposes, the
Merger is intended to constitute a reorganization within the
meaning of Section 368(a) of the Code. The parties to this
Agreement hereby adopt this Agreement as a “plan of
reorganization” within the meaning of
Sections 1.368-2(g) and 1.368-3(a) of the United States
Treasury Regulations.
(a) Notwithstanding
anything to the contrary contained in this Agreement, any shares of
Raptor Common Stock that, as of immediately prior to the Effective
Time, are held by
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holders who have as of such time
exercised and perfected appraisal rights under Section 262 of the
DGCL with respect to such shares (collectively, the “
Dissenting Shares ”) shall not be converted
into or represent the right to receive shares of TPT Common Stock
in accordance with Section 1.5(a)(iii), or cash in lieu of
fractional shares in accordance with Section 1.5(c), attributable
to such Dissenting Shares, and the holder or holders of such
Dissenting Shares shall be entitled only to such rights as may be
granted to such holder or holders pursuant to Section 262 of the
DGCL; provided , however , that if such
appraisal rights shall not be perfected or the holders of such
Dissenting Shares shall otherwise lose their appraisal rights with
respect to such Dissenting Shares, then, as of the later of the
Effective Time or the time of the failure to perfect such status or
the loss of such rights, such Dissenting Shares shall automatically
be converted into and shall represent only the right to receive
(upon the surrender of such holder’s Raptor Stock
Certificate(s) in accordance with Section 1.8) shares of TPT Common
Stock in accordance with Section 1.5(a)(iii) and cash in lieu of
fractional shares in accordance with Section 1.5(c).
(b) Raptor
shall give TPT prompt notice of any written demand received by
Raptor prior to the Effective Time to require Raptor to purchase
shares of Raptor Common Stock pursuant to Section 262 of the DGCL,
withdrawals of such demands and any other instruments served on
Raptor and any material correspondence received by Raptor in
connection with such demands.
1.11
Further Action . If, at any time after the Effective Time,
any further action is determined by TPT to be necessary or
desirable to carry out the purposes of this Agreement or to vest
the Surviving Corporation with full right, title and possession of
and to all rights and property of Merger Sub and Raptor, the
officers and directors of the Surviving Corporation shall be fully
authorized (in the name of Raptor, Merger Sub and otherwise) to
take such action.
SECTION 2
REPRESENTATIONS AND WARRANTIES OF
TPT
Each of TPT and Merger Sub
represents and warrants to Raptor as follows except as set forth in
the TPT Disclosure Schedule:
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2.1
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Organization and Good Standing
.
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(a) The
TPT Corporations are corporations or other Entities duly organized,
validly existing, and in good standing under the laws of their
respective jurisdictions of incorporation or organization, with
full corporate power or other Entity authority to conduct their
respective businesses as now being conducted, to own or use the
respective properties and assets that they purport to own or use,
and to perform all their respective obligations under TPT
Corporation Contracts. Each of the TPT Corporations is duly
qualified to do business as a foreign corporation or other Entity
and is in good standing under the laws of each state or other
jurisdiction in which either the ownership or use of the properties
owned or used by it, or the nature of the activities conducted by
it, requires such qualification, except where the failure to be so
qualified could not reasonably be expected, individually or in the
aggregate, to result in a TPT Material Adverse Effect.
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(b) Part
2.1(b) of the TPT Disclosure Schedule lists all TPT Corporations
and indicates as to each the type of Entity, its jurisdiction of
organization and, except in the case of TPT, its stockholders or
other equity holders. Part 2.1(b) of the TPT Disclosure Schedule
lists, and TPT has delivered to Raptor copies of, the certificate
or articles of incorporation, by-laws and other organizational
documents (collectively, “ Organizational
Documents ”) of each of the TPT Subsidiaries, as
currently in effect.
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2.2
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Authority; No Conflict .
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(a) TPT
has all necessary corporate power and authority to execute and
deliver this Agreement and the other agreements referred to in this
Agreement, to perform its obligations hereunder and thereunder and
to consummate the Merger and the other transactions contemplated
hereby and thereby (collectively, and including the execution,
delivery and performance by certain stockholders of the Voting
Agreements, the “ Contemplated Transactions
”), subject to obtaining the Required TPT Stockholder Vote
and the filing of the Certificate of Merger required by the DGCL.
The execution and delivery of this Agreement by TPT and the
consummation by TPT of the Contemplated Transactions have been duly
and validly authorized by all necessary corporate action and no
other corporate proceedings on the part of TPT are necessary to
authorize this Agreement or to consummate the Contemplated
Transactions (other than the approval of the issuance of the TPT
Common Stock to be issued in the Merger, the filing of the TPT
Charter Amendment and the election of the persons identified on
Part 4.17 of the TPT Disclosure Schedule to the TPT board of
directors immediately after the Effective Time by the holders of a
majority of the outstanding shares of TPT Common Stock (the “
Required TPT Stockholder Vote ”) and the filing
of appropriate merger documents as required by the DGCL). The board
of directors of TPT has unanimously approved this Agreement,
declared it to be advisable and subject to Section 4.7(c) resolved
to recommend to the stockholders of TPT that they vote in favor of
the adoption of this Agreement in accordance with the DGCL. The
board of directors of TPT has unanimously rescinded its approval of
a plan of liquidation and dissolution for TPT and has unanimously
approved the cancellation of the meeting of its stockholders that
it previously called and adjourned to approve such plan. This
Agreement has been duly and validly executed and delivered by TPT
and constitutes the legal, valid and binding obligations of TPT,
enforceable against TPT in accordance with its terms, subject to:
(i) laws of general application relating to bankruptcy, insolvency
and the relief of debtors; and (ii) rules of law governing specific
performance, injunctive relief and other equitable
remedies.
(b) Except
as set forth in Part 2.2(b) of the TPT Disclosure Schedule and
subject to obtaining the Required TPT Stockholder Vote and filing
of the Certificate of Merger required by the DGCL, neither the
execution and delivery of this Agreement nor the consummation of
any of the Contemplated Transactions do or will, directly or
indirectly (with or without notice or lapse of time or both),
(i) contravene, conflict with, or result in a violation of
(A) any provision of the Organizational Documents of any of
the TPT Corporations, or (B) any resolution adopted by the
board of directors or the stockholders of any of the TPT
Corporations; (ii) contravene, conflict with, or result in a
violation of, or give any Governmental Body or other Person the
right to challenge any of the Contemplated Transactions or to
exercise any remedy or obtain any relief under, any Legal
Requirement or any Order to which any of the TPT Corporations, or
any of the assets owned or used by any of the TPT Corporations, is
or may be
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subject; (iii) contravene,
conflict with, or result in a violation of any of the terms or
requirements of, or give any Governmental Body the right to revoke,
withdraw, suspend, cancel, terminate, or modify, any Governmental
Authorization that is held by any of the TPT Corporations, or that
otherwise relates to the business of, or any of the assets owned or
used by, any of the TPT Corporations; (iv) cause any of the
TPT Corporations to become subject to, or to become liable for the
payment of, any Tax; (v) cause any of the assets owned by any
of the TPT Corporations to be reassessed or revalued by any Taxing
Authority or other Governmental Body; (vi) contravene,
conflict with, or result in a violation or breach of any provision
of, or give any Person the right to declare a default or exercise
any remedy under, or to accelerate the maturity or performance of,
or to cancel, terminate, or modify, or create or give rise to any
rights to or in any third Person to any payment of royalties or
license fees, any rights to data or return of data or records, or
to a right to terminate or amend any TPT Corporation Contract,
including, without limitation, any license agreement, distribution
agreement, development agreement, clinical trial agreement or other
Contract affecting the rights of any TPT Corporation or its
respective Affiliates or any of any TPT Corporation’s
products, whether to use, manufacture, develop, distribute, or
market any of such products currently in clinical trial,
development or otherwise; (vii) require a Consent from any
Person, including, without limitation, any licensor of any product
being developed by any TPT Corporation or any of its respective
Affiliates, or which is the subject of any clinical trial or other
investigational or developmental or clinical trial program by any
TPT Corporation or any of its respective Affiliates; or
(viii) result in the imposition or creation of any Encumbrance
upon or with respect to any of the assets owned or used by any of
the TPT Corporations, except, in the case of clauses (ii), (iii),
(iv), (v), (vi), (vii) and (viii), for any such conflicts,
violations, breaches, defaults or other occurrences that would not
prevent or delay consummation of the Merger in any material
respect, or otherwise prevent TPT from performing its obligations
under this Agreement in any material respect, and could not
reasonably be expected to, individually or in the aggregate, result
in a TPT Material Adverse Effect.
(c) The
execution and delivery of this Agreement by TPT do not, and the
performance of this Agreement and the consummation of the
Contemplated Transactions by TPT will not, require any Consent of,
or filing with or notification to, any Governmental Body, except
(i) for (A) applicable requirements, if any, of the
Exchange Act, the Securities Act and state securities or
“blue sky” laws (“ Blue Sky Laws
”), (B) the filing of the TPT Charter Amendment, (C) the
filing of a Certificate of Merger as required by the DGCL, and
(D) applicable requirements of NASDAQ and (ii) where
failure to obtain such Consents, or to make such filings or
notifications, would not prevent or delay consummation of the
Merger in any material respect, or otherwise prevent TPT from
performing its obligations under this Agreement in any material
respect, and could not reasonably be expected to, individually or
in the aggregate, result in a TPT Material Adverse
Effect.
(a) The
authorized capital stock of TPT consists of 150,000,000 shares of
TPT Common Stock and 15,000,000 shares of TPT Preferred Stock. As
of the date hereof, (i) 15,999,058 shares of TPT Common Stock
are issued and outstanding, all of which have been duly authorized
and validly issued, and are fully paid and nonassessable,
(ii) 2,761,952 shares of TPT Common Stock are reserved for
issuance upon the exercise of outstanding stock options
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granted pursuant to the TPT Stock
Plan (the “ TPT Stock Options ”),
(iii) zero shares of TPT Common Stock are reserved for
issuance upon the settlement of outstanding restricted stock units
granted pursuant to the TPT Stock Plan (the “ TPT
Restricted Stock Units ”), (iv) 1,657,614 shares
of TPT Common Stock are reserved for issuance upon exercise of
warrants of TPT (the “TPT Warrants ”),
(v) zero shares of TPT Common Stock are held in the treasury of
TPT, (vi) 855,116 shares of TPT Common Stock are reserved for
issuance pursuant to TPT Stock Options not yet granted, and
(vii) 100,000 shares of TPT Preferred Stock (designated Series
A Preferred Stock, par value $0.001 per share) are reserved for
issuance upon exercise of the Rights issued pursuant to the Rights
Agreement dated May 13, 2005 between TPT and American Stock
Transfer & Trust Company (replacing The Nevada Agency and
Trust Company), as Rights Agent, as amended (the “ TPT
Rights Agreement ”). No shares of TPT Preferred Stock
are outstanding. There are not any bonds, debentures, notes or
other indebtedness or, except as described in the immediately
preceding sentence, securities of TPT having the right to vote (or
convertible into, or exchangeable for, securities having the right
to vote) on any matters on which stockholders of TPT may vote.
Except as set forth in the second sentence of this
Section 2.3, as of the date hereof, no shares of capital stock
or other voting securities of TPT are issued, reserved for issuance
or outstanding and no shares of capital stock or other voting
securities of TPT will be issued or become outstanding after the
date hereof other than upon exercise of the TPT Stock Options and
the TPT Warrants outstanding as of the date hereof.
(b) Except
as set forth in this Section 2.3 or in Part 2.3 of the TPT
Disclosure Schedule or in the Voting Agreements, there are no
options, stock appreciation rights, warrants or other rights,
Contracts, arrangements or commitments of any character
(collectively, “ Options ”) relating to
the issued or unissued capital stock of any of the TPT
Corporations, or obligating any of the TPT Corporations to issue,
grant or sell any shares of capital stock of, or other equity
interests in, or securities convertible into equity interests in,
TPT or any of its Subsidiaries. Since January 1, 2009, TPT has not
issued any shares of its capital stock or Options in respect
thereof, except upon the conversion of the securities or the
exercise or settlement, as applicable, of the TPT Stock Options,
the TPT Warrants and the TPT Restricted Stock Units.
(c) All
shares of TPT Common Stock subject to issuance as described above
on or before the Closing will, upon issuance on the terms and
conditions specified in the instruments pursuant to which they are
issuable, be duly authorized, validly issued, fully paid and
nonassessable. None of the TPT Corporations has any Contract or
other obligation to repurchase, redeem or otherwise acquire any
shares of TPT Common Stock or any capital stock of any of
TPT’s Subsidiaries, or make any investment (in the form of a
loan, capital contribution or otherwise) in any of TPT’s
Subsidiaries or any other Person. Each outstanding share of capital
stock of each of TPT’s Subsidiaries is duly authorized,
validly issued, fully paid and nonassessable and each such share is
owned by TPT or another TPT Corporation and is free and clear of
all Encumbrances. None of the outstanding equity securities or
other securities of any of the TPT Corporations was issued in
violation of the Securities Act or any other Legal Requirement.
None of the TPT Corporations owns, or has any Contract or other
obligation to acquire, any equity securities or other securities of
any Person (other than Subsidiaries of TPT) or any direct or
indirect equity or ownership interest in any other business. None
of the TPT Corporations is or has ever been a general partner of
any general or limited partnership.
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(a) Except
as set forth on Part 2.4-1 of the TPT Disclosure Schedule, TPT has
on a timely basis filed all forms, reports and documents required
to be filed by it with the SEC since October 4, 2006 (such
documents, as supplemented or amended since the time of filing, the
“ TPT SEC Reports ”). The TPT SEC Reports
(i) were or will be prepared in accordance with the
requirements of the Securities Act and the Exchange Act, as the
case may be, and, to the extent then applicable, SOX, including in
each case, the rules and regulations thereunder and
(ii) except to the extent that information contained in any
TPT SEC Reports has been revised, modified or superseded (prior to
the date of this Agreement) by a later filed TPT SEC Report, did
not at the time they were filed with the SEC, or will not at the
time they are filed with the SEC, contain any untrue statement of a
material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements made
therein, in the light of the circumstances under which they were
made, not misleading. No Subsidiary of TPT is or has been required
to file any form, report, registration statement or other document
with the SEC. TPT maintains disclosure controls and procedures
required by Rule 13a-15 or 15d-15 under the Exchange Act; and such
controls and procedures are designed to ensure that all material
information concerning TPT and its Subsidiaries is made known on a
timely basis to the individuals responsible for the preparation of
TPT’s filings with the SEC and other public disclosure
documents. Except as set forth on Part 2.4-2 of the TPT Disclosure
Schedule, to TPT’s Knowledge, each director and executive
officer of TPT has filed with the SEC on a timely basis all
statements required by Section 16(a) of the Exchange Act and the
rules and regulations thereunder since October 4, 2006. As used in
this Section 2.4, the term “file” shall be broadly
construed to include any manner in which a document or information
is furnished, supplied or otherwise made available to the SEC. With
respect to TPT’s Annual Reports on Form 10-K for each fiscal
year of TPT beginning on or after October 4, 2006
and TPT’s Quarterly Reports on Form 10-Q for each of the
first three fiscal quarters in each of such fiscal years of TPT,
all certifications and statements with respect thereto and required
by Rules 13a-14 and 15d-14 under the Exchange Act and
Sections 302 and 906 of SOX, and the rules and regulations of
the SEC promulgated thereunder, complied with such rules and
regulations and the statements contained in such certifications
statements were true and correct as of the date of the filing
thereof.
(b) Since
October 4, 2006, neither TPT nor any of its Subsidiaries or, to
TPT’s Knowledge, any Representative of TPT or any of its
Subsidiaries has received or has otherwise had or obtained
knowledge of any complaint, allegation, assertion or claim, whether
written or oral, regarding the accounting or auditing practices,
procedures, methodologies or methods of TPT or any of its
Subsidiaries or their internal control over financial reporting,
including any complaint, allegation, assertion or claim that TPT or
any of its Subsidiaries has engaged in questionable accounting or
auditing practices.
(c) The
TPT Corporations have implemented and maintain a system of internal
control over financial reporting (as defined in Rules 13a-15(f) and
15d-15(f) under the Exchange Act) sufficient to provide reasonable
assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in
accordance with GAAP, including, without limitation, that
(i) transactions are executed in accordance with
management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to
maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or
specific authorization, and (iv) the recorded accountability
for assets is compared with the
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existing assets at reasonable
intervals and appropriate action is taken with respect to any
differences. Except as set forth in Part 2.4(c) of the TPT
Disclosure Schedule, since October 4, 2006, (A) there have not
been any changes in the TPT Corporations’ internal control
over financial reporting that have materially affected, or are
reasonably likely to materially affect, the TPT Corporations’
internal control over financial reporting; (B) all significant
deficiencies and material weaknesses in the design or operation of
the TPT Corporations’ internal control over financial
reporting which are reasonably likely to adversely affect the TPT
Corporations’ ability to record, process, summarize and
report financial information have been disclosed to TPT’s
outside auditors and the audit committee of TPT’s board of
directors, and (C) there has not been any fraud, whether or
not material, that involves management or other employees who have
a significant role in the TPT Corporations’ internal control
over financial reporting. Part 2.4(c) of the TPT Disclosure
Schedule lists, and TPT has made available to Raptor copies of, all
reports and other documents concerning internal control filed with
the SEC or delivered to TPT by its auditors since October 4, 2006.
TPT has made available to Raptor copies of all policies, manuals
and other documents promulgating such disclosure controls and
procedures.
(d) TPT
is, and since October 4, 2006 has been, in compliance with the
applicable provisions of SOX and the applicable listing and
corporate governance rules and regulations of NASDAQ.
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2.5
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Financial Statements .
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(a) The
financial statements and notes contained or incorporated by
reference in the TPT SEC Reports (i) complied as to form in all
material respects with the published rules and regulations of the
SEC (including Regulation S-X) as of the date of the filing of such
reports; (ii) were prepared in accordance with GAAP (except as may
be indicated in the notes to such financial statements or, in the
case of unaudited financial statements, as permitted by Form 10-Q
of the SEC, and except that the unaudited financial statements may
not contain footnotes to the extent permitted by Regulation S-X and
are subject to normal and recurring year-end adjustments that will
not, individually or in the aggregate, be material in amount), and
(iii) fairly present in all material respects the consolidated
financial position of the TPT Corporations as of the respective
dates thereof and the consolidated results of operations, changes
in stockholders’ equity and cash flows of the TPT
Corporations as at the respective dates of and for the periods
referred to in such financial statements. The financial statements
referred to in this Section 2.5 reflect the consistent application
of such accounting principles throughout the periods involved,
except as disclosed in the notes to such financial statements. No
financial statements of any Person other than TPT and its
Subsidiaries are required by GAAP to be included in the
consolidated financial statements of TPT.
(b) Part
2.5(b) of the TPT Disclosure Schedule lists, and TPT has delivered
to Raptor copies of, the documents creating or governing, all of
TPT’s Off-Balance Sheet Arrangements.
(c) Part
2.5(c) of the TPT Disclosure Schedule contains a description of all
non-audit services performed by TPT’s auditors for the TPT
Corporations since the beginning of the immediately preceding
fiscal year of TPT and the fees paid for such services. All such
non-audit services have been approved as required by Section 202 of
SOX.
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2.6
Property; Sufficiency of Assets . The TPT Corporations
(a) have good and valid title to all property material to the
business of the TPT Corporations and reflected in the latest
audited financial statements included in the TPT SEC Reports as
being owned by the TPT Corporations or acquired after the date
thereof (except for property sold or otherwise disposed of in the
ordinary course of business since the date thereof), free and clear
of all Encumbrances except (i) statutory Encumbrances securing
payments not yet due and (ii) such imperfections or
irregularities of title or Encumbrances as do not affect the use of
the properties or assets subject thereto or affected thereby or
otherwise materially impair business operations at such properties,
in either case in such a manner as to have a TPT Material Adverse
Effect, and (b) are collectively the lessee of all property
material to the business of the TPT Corporations and reflected as
leased in the latest audited financial statements included in the
TPT SEC Reports (or on the books and records of TPT as of the date
thereof) or acquired after the date thereof (except for leases that
have expired by their terms) and are in possession of the
properties purported to be leased thereunder, and each such lease
is valid and in full force and effect without default thereunder by
the lessee or the lessor, other than defaults that would not have a
TPT Material Adverse Effect.
2.7
Real Property; Equipment; Leasehold . Except as set forth in
Part 2.7-1 of the TPT Disclosure Schedule, none of the TPT
Corporations own any real property or any interest in real
property. Part 2.7-2 of the TPT Disclosure Schedule contains a
true, complete and accurate list of all the TPT Corporations’
real property leases. With respect to such real property leases:
(a) such TPT Corporation’s possession and quiet enjoyment of
real property under such lease has not been materially disturbed,
(b) such TPT Corporation is not, and to the Knowledge of TPT, no
other party to such lease is, in breach of such lease, (c) to the
Knowledge of TPT, there are no disputes with respect to such lease
and (d) other than such TPT Corporation, there is no other Person
in possession of the real property under such lease.
(a)
Registered IP . Part 2.8(a) of the TPT Disclosure Schedule
contains a complete and accurate list of all Registered IP owned or
purported to be owned by or filed in the name of any TPT
Corporation, which list identifies (i) the jurisdiction in which
each item of Registered IP has been registered or filed, and (ii)
any item of Registered IP that is jointly owned with any other
Person.
(b)
Third Party IP and Inbound Licenses . Part 2.8(b) of the TPT
Disclosure Schedule contains a complete and accurate list of all
Intellectual Property Rights or Intellectual Property licensed to
any TPT Corporation (other than non-customized, executable code,
internal use software licenses for software that is not
incorporated into, or used directly in the development,
manufacturing, or distribution of, any TPT Corporation’(s)
products or services and that is generally available on standard
terms for less than $2,000), and the corresponding Contracts in
which such Intellectual Property Rights or Intellectual Property is
licensed to any TPT Corporation (all of which are deemed to be TPT
Material Contracts for purposes of Section 2.16).
(c)
Outbound Licenses . Part 2.8(c) of the TPT Disclosure
Schedule contains a complete and accurate list of all Contracts
currently in effect in which any Person has been granted any
license under, or otherwise transferred or conveyed any right or
interest in, any TPT
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IP. No TPT Corporation is bound by,
and no TPT IP is subject to, any Contract containing any covenant
or other provision that in any way limits or restricts the ability
of any TPT Corporation to use, exploit, assert, or enforce the TPT
IP anywhere in the world which limitations or restrictions would
reasonably be expected to have a TPT Material Adverse
Effect.
(d)
Demand Letters . Part 2.8(d) of the TPT Disclosure Schedule
contains a complete and accurate list (and TPT has provided true,
complete and accurate copies to Raptor) of all letters and other
written or electronic communications or correspondence since
October 4, 2006 between any TPT Corporation or any of their
respective Representatives and any other Person regarding any
actual, alleged, possible, potential, or suspected infringement or
misappropriation of TPT IP, along with a brief description of the
current status of each such matter.
(e)
Ownership Free and Clear . The TPT Corporations exclusively
own all right, title, and interest to and in the TPT IP (other than
Intellectual Property Rights exclusively licensed to any TPT
Corporation, as identified in Part 2.8(b) of the TPT Disclosure
Schedule) free and clear of any Encumbrances (other than
non-exclusive licenses granted pursuant to the license agreements
listed in Part 2.8(c) of the TPT Disclosure Schedule).
(f)
Valid and Enforceable . To TPT’s Knowledge all TPT IP
is valid, subsisting, and enforceable. Without limiting the
generality of the foregoing:
(i) Each
U.S. patent application and U.S. patent owned by any TPT
Corporation was filed within one year of a printed publication,
public use, or offer for sale of each invention described in the
U.S. patent application or U.S. patent. Each foreign patent
application and foreign patent owned by any TPT Corporation was
filed or claims priority to a patent application filed prior to
each invention described in the foreign patent application or
foreign patent being made available to the public. No trademark or
trade name owned, used, or applied for by any TPT Corporation
conflicts or interferes with any trademark or trade name owned,
used, or applied for by any other Person. TPT has no Knowledge with
respect to and is not aware of any other basis for a claim that any
of the TPT IP is invalid or unenforceable.
(ii) All
TPT IP that is Registered IP is in compliance with all formal Legal
Requirements and all filings, payments, and other actions required
to be made or taken to maintain such Registered IP in full force
and effect have been made by the applicable deadline. Part
2.8(f)(ii) of the TPT Disclosure Schedule contains a complete and
accurate list of all actions, filings, and payments that must be
taken or made within ninety (90) days after the Closing Date in
order to maintain such Registered IP in full force and
effect.
(iii) No
Legal Proceeding (including any interference, opposition, reissue,
or reexamination proceeding) is pending or, to TPT’s
Knowledge, threatened, and since October 4, 2006 there has been no
Legal Proceeding, in which the scope, validity, or enforceability
of any TPT IP is being, has been, or could reasonably be expected
to be contested or challenged.
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(g)
Trade Secrets . Each TPT Corporation has taken all
reasonable steps to maintain the confidentiality of and otherwise
protect and enforce its respective rights in its respective Trade
Secrets.
(h)
Employees and Contractors . All employees and contractors of
any TPT Corporation who were involved in the creation or
development of the TPT IP have signed agreements containing
intellectual property assignments and confidentiality provisions.
No past or present shareholder, officer, director, or employee of
any TPT Corporation has any claim, right, or interest to or in any
TPT IP.
(i)
Chain of Title . TPT has properly recorded assignments from
all named inventors for all patents and patent applications
included in the Registered IP owned or purported to be owned by any
TPT Corporation.
(j)
Impairment of Goodwill . The goodwill associated with or
inherent in the each TPT Corporation’s respective trademarks
(both registered and unregistered) has not been
impaired.
(k)
Infringement of TPT IP by Third Parties . To TPT’s
Knowledge, no Person has infringed, misappropriated, or otherwise
violated, and no Person is currently infringing, misappropriating,
or otherwise violating, any TPT IP.
(l)
Government Rights . No government funding or personnel were
used, directly or indirectly, to develop or create, in whole or in
part, any TPT IP.
(m)
Effects of This Transaction . Neither the execution or
delivery of this Agreement nor the performance of this Agreement
and the consummation of the Contemplated Transactions will, with or
without notice or lapse of time, result in, or give any other
Person the right or option to cause or declare, (i) a loss of, or
Encumbrance or restriction on, any TPT IP or any license to
Intellectual Property or Intellectual Property Rights held by any
TPT Corporation; (ii) a breach of any license agreement listed or
required to be listed in Part 2.9(b) of the TPT Disclosure
Schedule; (iii) the release or delivery of any TPT IP to any other
Person; or (iv) the grant, assignment, or transfer to any other
Person of any license or other right or interest under, to, or in
any of the TPT IP.
(n)
No Infringement of Third Party IP Rights . To TPT’s
Knowledge no TPT Corporation has ever infringed, misappropriated,
or otherwise violated the Intellectual Property Rights of any other
Person, which infringement or misappropriation would reasonably be
expected to have a TPT Material Adverse Effect. Without limiting
the generality of the foregoing, to TPT’s Knowledge no
product, information, or service ever manufactured, produced,
distributed, published, used, provided, or sold by or on behalf of
any TPT Corporation, and no Intellectual Property ever owned, used,
or developed by any TPT Corporation, has infringed,
misappropriated, or otherwise violated the Intellectual Property
Rights of any other Person, which infringement or misappropriation
would reasonably be expected to have a TPT Material Adverse
Effect.
(o)
Pending, Threatened, or Possible IP Infringement Claims .
There are no pending or to TPT’s Knowledge threatened
infringement, misappropriation, or similar claims or
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Legal Proceedings against any TPT
Corporation or against any other Person who would be entitled to
indemnification by any TPT Corporation for such claim or Legal
Proceeding. No TPT Corporation has ever received any notice or
other communication (in writing or otherwise) of any actual,
alleged, possible, potential, or suspected infringement or
misappropriation of any other Person’s Intellectual Property
Rights by any TPT Corporation or by any product or service
developed, manufactured, distributed, provided, or sold by or on
behalf of any TPT Corporation.
(p)
Other Infringement Liability . Except as may be set forth in
the TPT Contracts listed on Parts 2.8(b) and (c) of the TPT
Disclosure Schedule, no TPT Corporation is bound by any Contract,
or any commitment or promise, to indemnify any other Person for
intellectual property infringement, misappropriation, or similar
claims (other than the express infringement indemnities included in
standard form sales or license agreements entered into by any TPT
Corporation in the ordinary course of business). No TPT Corporation
has assumed from any other Person any existing or potential
liability for infringement, misappropriation, or violation of
Intellectual Property Rights.
(q)
Infringement Claims Relating to Third Party IP Licensed to
TPT . To TPT’s Knowledge there are no pending or
threatened claims or proceedings involving Intellectual Property or
Intellectual Property Rights licensed to any TPT Corporation that
could reasonably be expected to adversely affect the use or
exploitation thereof by any TPT Corporation or the manufacturing,
distribution, or sale of any products or services currently being
developed, offered, manufactured, distributed, or sold by any TPT
Corporation.
(r)
Sufficiency . To TPT’s Knowledge, each TPT Corporation
owns or otherwise has all Intellectual Property Rights needed to
conduct their respective businesses as currently conducted or
planned to be conducted.
(s)
Employee Issues . No current employee of any TPT Corporation
is subject to any Contract restricting him or her from performing
his or her duties for any TPT Corporation.
2.9
No Undisclosed Liabilities . Except as set forth in Part 2.9
of the TPT Disclosure Schedule, the TPT Corporations have no
liabilities or obligations of any nature (whether absolute,
accrued, contingent, determined, determinable, choate, inchoate or
otherwise), except for (a) liabilities or obligations
reflected or reserved against in the TPT Balance Sheet, or
(b) current liabilities incurred in the ordinary course of
business, consistent with past practice, since the date of the TPT
Balance Sheet that, individually or in the aggregate, would not
have a TPT Material Adverse Effect.
(a)
Jurisdiction . Part 2.10(a) of the TPT Disclosure Schedule
contains a true, correct and complete list of all jurisdictions
(whether foreign or domestic) in which each of the TPT Corporations
does or is required to file Tax Returns. No claim has ever been
made in writing by a Governmental Body in a jurisdiction where the
TPT Corporations do not file Tax Returns that they are or may be
subject to taxation or to a requirement to file Tax Returns in that
jurisdiction.
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(b)
Timely Filing of Tax Returns . The TPT Corporations have
filed or caused to be filed all Tax Returns that are or were
required to be filed by or with respect to any of them, either
separately or as a member of a group of corporations, pursuant to
applicable Legal Requirements. All Tax Returns filed by (or that
include on a consolidated basis) any of the TPT Corporations were
(and, as to Tax Returns not filed as of the date hereof, will be)
in all respects true, complete and correct and filed on a timely
basis.
(c)
Payment of Taxes . The TPT Corporations have, within the
time and in the manner prescribed by law, paid (and until Closing
will pay within the time and in the manner prescribed by law) all
Taxes that are due and payable.
(d)
Withholding Taxes . Each of the TPT Corporations have
complied (and until the Closing will comply) with all applicable
Legal Requirements relating to the payment and withholding of Taxes
(including, but not limited to, withholding and reporting
requirements under the Code or Sections 1441 through 1464, 3401
through 3406, 6041 and 6049 of the Code, and similar provisions
under any other laws) and have, within the times and in the manner
prescribed by law, withheld from employee wages and paid over to
proper Governmental Bodies all amounts required.
(e)
Audits . Except as set forth in Part 2.10(e) of the TPT
Disclosure Schedule, no Tax Return of any of the TPT Corporations
is under audit or examination by any Taxing Authority, and no
written notice of such an audit or examination has been received by
any of the TPT Corporations and, the TPT Corporations have no
Knowledge of any threatened audits, investigations or claims for or
relating to Taxes, and there are no matters under discussion with
any Taxing Authority with respect to Taxes. Except as set forth in
Part 2.10(e) of the TPT Disclosure Schedule, no issues relating to
Taxes were raised in writing by the relevant Taxing Authority
during any presently pending audit or examination. Part 2.10(e) of
the TPT Disclosure Schedule lists, and TPT has delivered to Raptor
copies of, all examiner’s or auditor’s reports, notices
of proposed adjustments or similar commissions received by any of
the TPT Corporations from any Taxing Authority since October 4,
2006. The U.S. Federal Income Tax Returns of the TPT Corporations
consolidated in such returns have been examined by and settled with
the Internal Revenue Service for all years, or all years are
otherwise closed, through the taxable year ended December 31,
2005.
(f)
Tax Reserves . The charges, accruals, and reserves with
respect to Taxes on the respective books of each of the TPT
Corporations are adequate (and until Closing will continue to be
adequate) to pay all Taxes not yet due and payable and have been
determined in accordance with GAAP. No differences exist between
the amounts of the book basis and the tax basis of assets (net of
liabilities) that are not accounted for on any accrual on the books
of the TPT Corporations for federal income tax purposes. Except as
disclosed in Part 2.10(f) of the TPT Disclosure Schedule, there
exists no proposed assessment of Taxes against any of the TPT
Corporations.
(g)
Tax Liens . No Encumbrance for Taxes exists with respect to
any assets or properties of any of the TPT Corporations, nor will
any such Encumbrance exist at Closing except for statutory liens
for Taxes not yet due.
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(h)
Tax Sharing Agreements . Part 2.10(h) of the TPT Disclosure
Schedule lists, and TPT has delivered to Raptor copies of, any Tax
sharing agreement, Tax allocation agreement, Tax indemnity
obligation or similar written or unwritten agreement, arrangement,
understanding or practice with respect to Taxes that is in effect
(including any advance pricing agreement, Closing Agreement or
other agreement relating to Taxes with any Taxing Authority) to
which any of the TPT Corporations is a party or by which any of the
TPT Corporations is bound. No such agreements shall be modified or
terminated prior to Closing without the Consent of
Raptor.
(i)
Extensions of Time for Filing Tax Returns . None of the TPT
Corporations has requested any extension of time within which to
file any Tax Return, which Tax Return has not since been
filed.
(j)
Waiver of Statutes of Limitations . None of the TPT
Corporations has executed any outstanding waivers or comparable
consents regarding the application of the statute of limitations
with respect to any Taxes or Tax Returns.
(k)
Powers of Attorney . No power of attorney currently in force
has been granted by any of the TPT Corporations concerning any
Taxes or Tax Return.
(l)
Tax Rulings . None of the TPT Corporations has received or
been the subject of a Tax Ruling or a request for Tax Ruling. None
of the TPT Corporations has entered into a Closing Agreement with
any Governmental Body that would have a continuing effect after the
Closing Date.
(m)
Availability of Tax Returns . Part 2.10(m) of the TPT
Disclosure Schedule lists, and TPT has made available to Raptor
true, complete and accurate copies of all material Tax Returns, and
any amendments thereto, filed by or on behalf of, or which include,
any of the TPT Corporations, for the years ended December 31, 2006,
2007 and 2008.
(n)
Opinions of Counsel . Part 2.10(n) of the TPT Disclosure
Schedule lists, and TPT has provided to Raptor true, complete and
accurate copies of all opinions of counsel, whether inside or
outside counsel, and all opinions of accountants or other tax
advisors, which have been received by any of the TPT Corporations
with respect to Taxes.
(o)
Intercompany Transactions . None of the TPT Corporations has
engaged in any transactions with Affiliates which would require the
recognition of income by any of the TPT Corporations with respect
to such transaction for any period ending on or after the Closing
Date.
(p)
Real Property Transfer Tax . Except as set forth in
Part 2.10(p) of the TPT Disclosure Schedule, none of the TPT
Corporations owns any interest in real estate as a result of which
ownership the Merger or any related Contemplated Transaction would
be subject to any realty transfer Tax or similar Tax.
(q)
Section 162(m) . The disallowance of a deduction under
Section 162(m) of the Code for employee remuneration would not
reasonably be expected to apply to any amount
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paid or payable by any of the TPT
Corporations under any TPT Corporation Contract, Benefit Plan,
program, arrangement or understanding currently in
effect.
(r)
Section 280G . None of the TPT Corporations is a party to
any agreement, contract or arrangement that has resulted or would
reasonably be expected to result, separately or in the aggregate,
in the payment of a “parachute payment” within the
meaning of Section 280G of the Code.
(s)
Qualification as a Reorganization . None of the TPT
Corporations has taken any action, nor to TPT’s Knowledge is
there any fact or circumstance, that could reasonably be expected
to prevent the Merger from qualifying as a reorganization within
the meaning of Section 368(a) of the Code.
(t)
Section 355 Representation . None of the TPT Corporations
has constituted either a “distributing corporation” or
a “controlled corporation” in a distribution of stock
qualifying for tax free treatment under Section 355 of the
Code (i) in the two years prior to the date of this Agreement
or (ii) in a distribution which could otherwise constitute
part of a “plan” or “series of related
transactions” (within the meaning of Section 355(e) of
the Code) in connection with the Merger.
(a) Except
as required under this Agreement, since December 31, 2008, there
has not been (i) any adoption or amendment of any Benefit Plan, or
(ii) any adoption of, or amendment to, or change in employee
participation or coverage under, any Benefit Plan that would
increase the expense of maintaining such Benefit Plan above the
level of the expense incurred in respect thereof for the fiscal
year ended on December 31, 2008. Except as expressly contemplated
hereby, neither the execution and delivery of this Agreement nor
the consummation of the Contemplated Transactions will (either
alone or in conjunction with any other event) result in, cause the
accelerated vesting or delivery of, or increase the amount or value
of, any payment or benefit to any employee of any TPT Corporation
and all Benefit Plans permit continuation by TPT upon consummation
of the Contemplated Transactions without the Consent of any
participant.
(b) For
purposes of this Agreement, the following definitions apply:
“ Controlled Group Liability ” means any
and all liabilities under (i) Title IV of ERISA, (ii) section 302
of ERISA, (iii) sections 412, 430 and 4971 of the Code, (iv) the
continuation coverage requirements of section 601 et seq. of ERISA
and section 4980B of the Code, and (v) corresponding or similar
provisions of foreign laws or regulations, and “ ERISA
Affiliate ” means, with respect to any Entity, trade
or business, any other Entity, trade or business that is a member
of a group described in Section 414(b), (c), (m) or (o) of the Code
or Section 4001 (b)(1) of ERISA that includes the first Entity,
trade or business, or that is a member of the same
“controlled group” as the first Entity, trade or
business pursuant to Section 4001(a)(14) of ERISA.
(c) Part
2.11(c) of the TPT Disclosure Schedule includes a true, correct and
complete list of all Benefit Plans.
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(d) With
respect to each Benefit Plan, TPT has delivered to Raptor a true,
correct and complete copy of: (i) each writing constituting a part
of such Benefit Plan, including without limitation all plan
documents, benefit schedules, trust agreements, and insurance
contracts and other funding vehicles; (ii) the three most recent
Annual Report (Form 5500 Series) and accompanying schedules, if
any; (iii) the current summary plan description and any summaries
of material modifications, if any; (iv) the most recent annual
financial report, if any; (v) the most recent actuarial report, if
any; (vi) the most recent determination letter from the IRS, if
any, (vii) all contracts relating to each Benefit Plan, including
administrative service agreements and group insurance contracts;
(viii) all minutes from all fiduciary and administrative committee
meetings during the past three years for all Benefit Plans that are
employee pension benefit plans within the meaning of ERISA Section
2; and (ix) all correspondence to or from any governmental Entity
relating to any Benefit Plan. Except as specifically provided in
the foregoing documents delivered to Raptor, there are no
amendments to any Benefit Plan or any new Benefit Plan that have
been adopted or approved nor has TPT undertaken to make any such
amendments or adopt or approve any new Benefit Plan since December
31, 2008.
(e) Part
2.11(e) of the TPT Disclosure Schedule identifies each Benefit Plan
that is intended to be a “qualified plan” within the
meaning of Section 401(a) of the Code (“ Qualified
Plans ”). The Internal Revenue Service has issued a
favorable determination letter, or opinion letter, with respect to
each Qualified Plan that has not been revoked, and, there are no
existing circumstances nor any events that have occurred that could
reasonably be expected to adversely affect the qualified status of
any Qualified Plan or the related trust. No Benefit Plan is
intended to meet the requirements of Code Section
501(c)(9).
(f) All
contributions required to be made to any Benefit Plan by applicable
Legal Requirements or by any plan document or other contractual
undertaking, and all premiums due or payable with respect to
insurance policies funding any Benefit Plan, for any period through
the date hereof have been timely made or paid in full or, to the
extent not required to be made or paid on or before the date
hereof, have been fully reflected on the financial statements
contained in the TPT SEC Reports.
(g) Each
Benefit Plan has been maintained and administered in compliance
with its terms and in all respects with the applicable requirements
of ERISA, the Code and any other applicable Legal Requirements.
There is not now, nor to TPT’s Knowledge, do any
circumstances exist that could give rise to, any requirement for
the posting of security with respect to a Benefit Plan or the
imposition of any Encumbrance on the assets of the any TPT
Corporation under ERISA or the Code. No prohibited transaction has
occurred with respect to any Benefit Plan. None of the TPT
Corporations has, nor to TPT’s Knowledge has any other
Person, engaged in any transaction with respect to any Benefit Plan
that could reasonably be expected to subject any of the TPT
Corporations to any Tax or penalty (civil or otherwise) imposed by
ERISA, the Code or other applicable law or any participant to any
Tax or penalty (civil or otherwise) imposed by ERISA, the Code or
other applicable law (other than ordinary income tax in the normal
course). All amendments required to be adopted before the effective
dates for any qualified Benefit Plan to continue to be qualified
have been or will be duly and timely adopted. Each Benefit Plan can
be amended, terminated or otherwise discontinued after the Closing
in accordance with its terms, without liability to Raptor, the
Surviving Corporation or any of the TPT Corporations (other than
ordinary administration expenses).
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(h) No
Benefit Plan is subject to Title IV or Section 302 of ERISA or
Section 412, 430, or 4971 of the Code. All liabilities in
connection with the termination of any Benefit Plan that was
sponsored, maintained or contributed to by any TPT Corporation, or
with respect to which any of them had any liability, at any time
have been fully satisfied.
(i) No
Benefit Plan is a “multiemployer plan” within the
meaning of Section 4001(a)(3) of ERISA or a plan that has two or
more contributing sponsors at least two of whom are not under
common control, within the meaning of Section 4063 of ERISA and the
TPT Corporations have no liabilities with respect to any such
plan.
(j) There
does not now exist, nor do any circumstances exist that could
result in, any Controlled Group Liability that would be a liability
of any TPT Corporation, Raptor or the Surviving Corporation
following the Closing. Without limiting the generality of the
foregoing, neither any TPT Corporation nor any ERISA Affiliate of
any TPT Corporation has engaged in any transaction described in
Section 4069 or Section 4204 of ERISA.
(k) No
TPT Corporation has any liability for life, health, medical or
other welfare benefits to former employees or beneficiaries or
dependents thereof, except for health continuation coverage as
required by Section 4980B of the Code or Part 6 of Title I of ERISA
and similar state laws and at no expense to any TPT Corporation.
With respect to each Benefit Plan that is an employee welfare
benefit plan (within the meaning of Section 3(1) of ERISA), all
claims under such Benefit Plan are (i) insured pursuant to a
contract of insurance whereby the insurance company bears any risk
of loss with respect to such claims, (ii) covered under a contract
with a health maintenance organization (an “HMO”)
pursuant to which the HMO bears the liability for claims or (iii)
reflected as a liability or accrued for on the financial
statements. Each individual who has elected and is currently
entitled to COBRA continuation coverage and each individual who is
entitled to elect COBRA continuation coverage is listed in Part
2.11(k)-1 of the TPT Disclosure Schedule. Part 2.11(k)-2 of the TPT
Disclosure Schedule sets forth the date and type of the qualifying
event for each person listed on such Schedule. Each individual who
has elected COBRA continuation coverage has been charged the
maximum COBRA premium permitted by COBRA and the TPT Corporations
and the Benefit Plans have no obligation to charge any participant
a lesser amount.
(l) All
stock options or share appreciation rights granted by any of the
TPT Corporations were granted using an exercise price or a base
price, as the case may be, of not less than the fair market value
of the underlying shares in accordance with applicable guidance
under Section 409A of the Code on the date of grant, and are not
otherwise subject to the requirements of Section 409A of the Code.
None of the TPT Corporations is subject to any agreement or
contract that would require it to “gross up” or
otherwise compensate any current or former employee, officer,
director, or other service provider because of the imposition of
any income, excise, or other tax on a payment or benefit provided
to such person.
(m) No
Benefit Plan is subject to the laws other than those of the United
States. No individual who was classified by any of the TPT
Corporations as an independent contractor is or has ever been
eligible to participate in any Benefit Plans.
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(n) There
are no pending or, to TPT’s Knowledge, threatened claims
(other than claims for benefits in the ordinary course), lawsuits
or arbitrations which have been asserted or instituted against the
Benefit Plans, any fiduciaries thereof with respect to their duties
to the Benefit Plans or the assets of any of the trusts under any
of the Benefit Plans which could result in any liability of any TPT
Corporation or any Benefit Plan.
(o) Part
2.11(o) of the TPT Disclosure Schedule contains a true, complete
and accurate list as of the date of this Agreement of all loans and
advances made by any of the TPT Corporations to any employee,
director, consultant or independent contract, other than routine
travel and expense advances made to employees in the ordinary
course of business. No TPT Corporation has, since October 1, 2002,
extended or maintained credit, arranged for the extension of
credit, or renewed an extension of credit, in the form of a
personal loan to or for any director or executive officer (or
equivalent thereof) of TPT. Part 2.11(o) of the TPT Disclosure
Schedule identifies any extension of credit maintained by the TPT
Corporations to which the second sentence of Section 13(k)(1) of
the Exchange Act applies.
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2.12
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Compliance with Legal Requirements; Governmental
Authorizations .
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(a) Except
as set forth in Part 2.12(a) of the TPT Disclosure Schedule, the
TPT Corporations are, and at all times since October 4, 2006 have
been, in material compliance with each Legal Requirement that is or
was applicable to any of them or to the conduct or operation of
their business or the ownership or use of any of their assets,
including, without limitation, any regulation issued under any such
Legal Requirement; no event has occurred or circumstance exists
that (with or without notice or lapse of time or both) (i) may
constitute or result in a material violation by any of the TPT
Corporations of, or a substantial failure on the part of any of the
TPT Corporations to comply with, any Legal Requirement, or
(ii) may give rise to any obligation on the part of any of the
TPT Corporations to undertake, or to bear all or any portion of the
cost of, any substantial remedial action of any nature; and none of
the TPT Corporations has received, at any time since October 4,
2006, any notice or other communication (whether oral or written)
from any Governmental Body or any other Person regarding
(x) any actual, alleged, possible, or potential violation of,
or failure to comply with, any Legal Requirement, (y) any
actual, alleged, possible, or potential obligation on the part of
any of the TPT Corporations to undertake, or to bear all or any
portion of the cost of, any remedial action of any nature, or (z)
any investigation with respect to any such Legal Requirement,
including Legal Requirements of the United States Food and Drug
Administration (the “ FDA ”), the
European Medicines Agency (“ EMEA ”) and
other comparable Governmental Bodies.
(b) The
TPT Corporations have all material Governmental Authorizations
required to conduct their respective businesses as now being
conducted. Such Governmental Authorizations are valid and in full
force and effect, and the TPT Corporations and Persons acting in
concert with and on behalf of the TPT Corporations are in
compliance in all material respects with all such Governmental
Authorizations. TPT has provided to Raptor a true, accurate and
complete copy of all such material Governmental Authorizations from
the FDA and the EMEA.
(c) The
TPT Corporations and, to TPT’s Knowledge, Persons acting in
concert with and on behalf of any TPT Corporation:
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(i) have
not used in any capacity the services of any individual or Entity
debarred, excluded, or disqualified under 21 U.S.C. Section 335a,
42 U.S.C. Section 1320a-7, 21 C.F.R. Section 312.70, or any similar
laws, rules or regulations; and
(ii) have
not been convicted of any crime or engaged in any conduct that has
resulted, or would reasonably be expected to result, in debarment,
exclusion, or disqualification under 21 U.S.C. Section 335a, 42
U.S.C. Section 1320a-7, 21 C.F.R. Section 312.70, or any similar
laws, rules regulations.
(d) None
of the TPT Corporations, and (to the Knowledge of TPT) no
Representative of any TPT Corporation with respect to any matter
relating to any of the TPT Corporations, has: (i) used any funds
for unlawful contributions, gifts, entertainment or other unlawful
expenses relating to political activity; (ii) made any unlawful
payment to foreign or domestic government officials or employees or
to foreign or domestic political parties or campaigns or violated
any provision of the Foreign Corrupt Practices Act of 1977, as
amended; or (iii) made any other unlawful payment.
(e) No
product or product candidate manufactured, tested, distributed,
held or marketed by or on behalf of any of the TPT Corporations has
been recalled, withdrawn, suspended or discontinued (whether
voluntarily or otherwise) since October 4, 2006. At no time since
October 4, 2006, has any of the TPT Corporations received notice
that any Governmental Body or institutional review board or
comparable body has commenced, or threatened to initiate, any
proceeding seeking the recall, market withdrawal, suspension or
withdrawal of approval, or seizure of any such product or product
candidate; the imposition of material sales, marketing or
production restriction on any product or product candidate; or the
suspension, termination or other restriction of preclinical or
clinical research by or on behalf of any of the TPT Corporations,
including any action regarding any investigator participating in
any such research, nor is any such proceeding pending. TPT has,
prior to the execution of this Agreement, provided to Raptor all
information about serious adverse drug experiences since October 4,
2006 obtained or otherwise received by any of the TPT Corporations
from any source, in the United States or outside the United States,
including information derived from clinical investigations prior to
any market authorization approvals, commercial marketing
experience, postmarketing clinical investigations, postmarketing
surveillance studies or registries, reports in the scientific
literature, and unpublished scientific papers relating to any
product or product candidate manufactured, tested, distributed,
held or marketed by any of the TPT Corporations or any of their
licensors or licensees in the possession of any of the TPT
Corporations (or to which any of them has access), except for any
adverse drug experiences that would not, or would not reasonably be
expected to, individually or in the aggregate, have a TPT Material
Adverse Effect.
(f) None
of the TPT Corporations, or, to TPT’s Knowledge, Persons
acting in concert with or on behalf of any TPT Corporation, or, to
TPT’s Knowledge, any officers, employees or agents of the
same has with respect to any product that is manufactured, tested,
distributed, held or marketed by or on behalf of any of any TPT
Corporation made an untrue statement of a material fact or
fraudulent statement to the FDA, the EMEA or any other Governmental
Body, failed to disclose a material fact required to be disclosed
to the FDA, the EMEA or any other Governmental Body, or committed
an act, made a statement, or failed to make a statement that, at
the time such disclosure was made, would reasonably be expected
to
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provide a basis for the FDA to
invoke its policy respecting “Fraud, Untrue Statements of
Material Facts, Bribery, and Illegal Gratuities” set forth in
56 Fed. Reg. 46191 (September 10, 1991) or for the EMEA or any
other Governmental Body to invoke any similar policy.
(g) All
preclinical safety pharmacology and toxicology studies and all
clinical studies relating to product or product candidates,
conducted by or on behalf of any TPT Corporation have been, or are
being, conducted in compliance with the applicable requirements of
the FDA’s Good Laboratory Practice and Good Clinical Practice
requirements, including regulations under 21 C.F.R. Parts 50, 54,
56, 58, 312 and applicable guidance documents, as amended from time
to time, the Animal Welfare Act, and all applicable similar
requirements in other jurisdictions, and all requirements relating
to protection of human subjects.
(h) TPT
(or another TPT Corporation) and its Affiliates have filed with the
FDA, the EMEA, any other Governmental Authority, and any
institutional review board or comparable body, all filings,
reports, responses, required notices, supplemental applications,
and annual or other reports, responses to requests for information
or other submissions required by applicable Legal Requirement, or
requested by FDA, EMEA or any other Governmental Body
having jurisdiction over any TPT Corporation or their
respective businesses and/or clinical trials and applications,
including but not limited to all reports of clinical trials,
reports of adverse consequences or adverse reactions, and similar
reports regarding the conduct of and results of clinical trials,
each investigational new drug application or any comparable foreign
regulatory application, including any such report related to the
manufacture, testing, study, or sale of any product or product
candidate, as applicable.
(i) TPT
(or another TPT Corporation) and its Affiliates have maintained and
currently maintain all records, documents, reports and other
information required under FDA guidance to support any IND, NDA or
ANDA applications for each product under development or undergoing
clinical trial, including without limitation, all records,
documents and other information related to Good Laboratory
Practice, Good Clinical Practice, or Good Manufacturing Practice
for each such product or proposed product; all records relating to
the qualification and selection of clinical investigators; all
records related to the qualification and selection of,
and informed Consent given by, each participant in any trial; and
all clinical reports or records and analysis of clinical trial
results.
(j) TPT
(or another TPT Corporation) and its Affiliates
have manufactured all products used in clinical trials in
accordance with Good Manufacturing Practice, and have maintained
all records regarding purity, concentration, and shelf life,
allocation of product to investigators, and recovery or destruction
of outdated or unused clinical trial product.
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2.13
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Environmental Matters .
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(a) Each
of the TPT Corporations: (i) is and has been in compliance in all
material respects with, and has not been and is not in material
violation of or subject to any material liability under, any
applicable Environmental Requirements; and (ii) possesses all
permits and other Environmental Authorizations, and is in
compliance with the terms and conditions thereof.
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(b) None
of the TPT Corporations has received any notice or other
communication (in writing or otherwise), whether from a
Governmental Body, citizens group, TPT Representative or otherwise,
that alleges that any of the TPT Corporations is not or might not
be in compliance with any Environmental Requirement or
Environmental Authorization, and, to the Knowledge of TPT, there
are no circumstances that may prevent or interfere with the
compliance by any of the TPT Corporations with any Environmental
Requirement or Environmental Authorization in the
future.
(c) To
the Knowledge of TPT: (i) all property that is or was leased to,
controlled by or used by any of the TPT Corporations, and all
surface water, groundwater and soil associated with or adjacent to
such property, is free of any Materials of Environmental Concern or
material environmental contamination of any nature; (ii) none of
the property that is or was leased to, controlled by or used by any
of the TPT Corporations contains any underground storage tanks,
asbestos, equipment using PCBs or underground injection wells; and
(iii) none of the property that is or was leased to, controlled by
or used by any of the TPT Corporations contains any septic tanks in
which process wastewater or any Materials of Environmental Concern
have been Released.
(d) For
purposes of this Agreement: (i) “Environmental
Requirement” means any federal, state, local or
foreign Legal Requirement, Order, writ, injunction, directive,
authorization, judgment, decree, grant, franchise, Contract or
other governmental restriction and requirement, whether judicial or
administrative, relating to pollution or protection of human health
and safety, natural resources or the Environment (including ambient
air, surface water, ground water, land surface or subsurface
strata), including any Legal Requirement relating to emissions,
discharges, releases or threatened releases of Materials of
Environmental Concern, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal,
transport or handling of Materials of Environmental Concern; (ii)
“Environmental Authorization” means any
Governmental Authorization required under applicable Environmental
Requirements; (iii) “Materials of Environmental
Concern” include chemicals, pollutants, contaminants,
wastes, toxic substances, petroleum and petroleum products and any
other substance that is now or hereafter regulated by any
Environmental Requirement or that is otherwise a danger to health,
reproduction or the Environment; and (iv)
“Release” means any spilling, leaking,
emitting, discharging, depositing, escaping, leaching, dumping or
other releasing into the Environment, whether intentional or
unintentional.
(a) Except
as set forth in Part 2.14 of the TPT Disclosure Schedule, there is
no pending Legal Proceeding (i) that has been commenced by or
against any of the TPT Corporations or that otherwise relates to or
may affect the business of, or any of the assets owned or used by,
any of the TPT Corporations, except for such Legal Proceedings as
could not reasonably be expected to, individually or in the
aggregate, result in a TPT Material Adverse Effect, (ii) that
challenges, or that may have the effect of preventing, delaying,
making illegal, or otherwise interfering with, any of the
Contemplated Transactions, or (iii) against any director or
officer of any of the TPT Corporations pursuant to Section 8A
or 20(b) of the Securities Act or Section 21(d) or 21C of the
Exchange Act.
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(b) To
TPT’s Knowledge, (i) no Legal Proceeding that if pending
would be required to be disclosed under the preceding paragraph has
been threatened, and (ii) no event has occurred or
circumstance exists that may give rise to or serve as a basis for
the commencement of any such Legal Proceeding.
2.15
Absence of Certain Changes and Events . Except as set forth
in Part 2.15 of the TPT Disclosure Schedule or as otherwise
expressly contemplated by this Agreement, since the date of the TPT
Balance Sheet, the TPT Corporations have conducted their businesses
only in the ordinary course of business, consistent with past
practices and there has not been any TPT Material Adverse Effect,
and no event has occurred or circumstance exists that may result in
a TPT Material Adverse Effect, any action or event of the type
described in Section 4.2 or:
(a) any
material loss, damage or destruction to, or any material
interruption in the use of, any of the assets of any of the TPT
Corporations (whether or not covered by insurance) that has had or
could reasonably be expected to have a TPT Material Adverse
Effect;
(b) (i) any
declaration, accrual, set aside or payment of any dividend or any
other distribution in respect of any shares of capital stock of any
TPT Corporation, or (ii) any repurchase, redemption or other
acquisition by any TPT Corporation of any shares of capital stock
or other securities;
(c) any
sale, issuance or grant, or authorization of the issuance of,
(i) any capital stock or other security of any TPT Corporation
(except for TPT Common Stock issued upon the valid exercise of
outstanding TPT Stock Options, TPT Warrants, or the valid
settlement of outstanding TPT Restricted Stock Units),
(ii) any option, warrant or right to acquire any capital stock
or any other security of any TPT Corporation (except for TPT Stock
Options, TPT Warrants, and TPT Restricted Stock Units
described in Section 2.3), or (iii) any instrument convertible
into or exchangeable for any capital stock or other security of any
TPT Corporation;
(d) any
amendment or waiver of any of the rights of any TPT Corporation
under, or acceleration of vesting under, (i) any provision of
the TPT Stock Plan, (ii) any provision of any Contract
evidencing any outstanding TPT Stock Option, TPT Warrant, or TPT
Restricted Stock Unit, or (iii) any restricted stock purchase
agreement;
(e) any
amendment to any Organizational Document of any of the TPT
Corporations, any merger, consolidation, share exchange, business
combination, recapitalization, reclassification of shares, stock
split, reverse stock split or similar transaction involving any TPT
Corporation;
(f) any
creation of any Subsidiary, other than Merger Sub, of any TPT
Corporation or acquisition by any TPT Corporation of any equity
interest or other interest in any other Person;
(g) any
capital expenditure by any TPT Corporation which, when added to all
other capital expenditures made on behalf of the TPT Corporations
since the date of the TPT Balance Sheet, exceeds $25,000 in the
aggregate;
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(h) except
in the ordinary course of business and consistent with past
practice, any action by any TPT Corporation to (i) enter into
or suffer any of the assets owned or used by it to become bound by
any TPT Material Contract, or (ii) amend or terminate, or
waive any material right or remedy under any TPT Material
Contract;
(i) any
(i) acquisition, lease or license by any TPT Corporation of
any material right or other material asset from any other Person,
(ii) sale or other disposal or lease or license by any TPT
Corporation of any material right or other material asset to any
other Person, or (iii) waiver or relinquishment by any TPT
Corporation of any right, except for rights or other assets
acquired, leased, licensed or disposed of in the ordinary course of
business and consistent with past practices;
(j) any
write-off as uncollectible of, or establishment of any
extraordinary reserve with respect to, any account receivable or
other indebtedness of any TPT Corporation;
(k) any
pledge of any assets of or sufferance of any of the assets of any
TPT Corporation to become subject to any Encumbrance, except for
pledges of immaterial assets made in the ordinary course of
business and consistent with past practices;
(l) any
(i) loan by any TPT Corporation to any Person, or
(ii) incurrence or guarantee by any TPT Corporation of any
indebtedness for borrowed money;
(m) any
(i) adoption, establishment, entry into or amendment by any
TPT Corporation of any Benefit Plan or (ii) payment of any
bonus or any profit sharing or similar payment to, or material
increase in the amount of the wages, salary, commissions, fringe
benefits or other compensation or remuneration payable to, any of
the directors, officers or employees of any TPT
Corporation;
(n) any
change of the methods of accounting or accounting practices of any
TPT Corporation in any material respect;
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(o)
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any material Tax election by any TPT
Corporation;
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(p) any
commencement or settlement of any Legal Proceeding by any TPT
Corporation; or
(q) any
agreement or commitment to take any of the actions referred to in
clauses (b) through (p) above.
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2.16
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Contracts; No Defaults .
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(a) Part
2.16(a) of the TPT Disclosure Schedule lists, and, except to the
extent filed in full without redaction as an exhibit to a TPT SEC
Report, TPT has delivered to Raptor copies of, each TPT Corporation
Contract and other instrument or document currently in effect or
pursuant to which TPT has continuing obligations (including any
amendment to any of the following):
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(i) described
in any paragraphs of Item 601(b) of Regulation S-K of the
SEC;
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(ii)
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with any director, officer or Affiliate of
TPT;
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(iii) evidencing,
governing or relating to indebtedness for borrowed
money;
(iv) not
entered into in the ordinary course of business that involves
expenditures or receipts in excess of $25,000;
(v) currently
in effect that in any way purports to restrict the business
activity of any TPT Corporation or any of its Affiliates, or to
limit the freedom of any TPT Corporation or any of its Affiliates
to engage in any line of business or to compete with any Person or
in any geographic area or to hire or retain any Person;
(vi) relating
to the employment of, or the performance of services by, any
employee or consultant not terminable by TPT or its Subsidiaries on
ninety (90) days notice without liability, or pursuant to which any
of the TPT Corporations is or may become obligated to make any
severance, termination or similar payment to any current or former
employee or director, or pursuant to which any of the TPT
Corporations is or may become obligated to make any bonus or
similar payment (other than payments constituting base salary) in
excess of $5,000 to any current or former employee or
director;
(vii) relating
to the acquisition, transfer, development, sharing or licensing of
any TPT IP (except for any Contract pursuant to which (1) any
Intellectual Property is licensed to any TPT Corporation under any
third party software license generally available to the public, or
(2) any Intellectual Property is licensed by any of the TPT
Corporations to any Person on a nonexclusive basis);
(viii) providing
for indemnification of any officer, director, employee or
agent;
(ix) currently
in force (A) relating to the acquisition, issuance, voting,
registration, sale or transfer of any securities,
(B) providing any Person with any preemptive right, right of
participation, right of maintenance or any similar right with
respect to any securities, or (C) providing any of the TPT
Corporations with any right of first refusal with respect to, or
right to repurchase or redeem, any securities, except for Contracts
evidencing TPT Stock Options, TPT Warrants or TPT Restricted Stock
Units;
(x) incorporating
or relating to any guaranty, any warranty or any indemnity or
similar obligation not entered into in the ordinary course of
business, except for Contracts substantially identical to the
standard forms of end user licenses previously delivered by TPT to
Raptor;
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(xi)
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relating to any currency hedging;
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(xii)
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containing “standstill” or similar
provisions;
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(xiii) (A) to
which any Governmental Body is a party or under which any
Governmental Body has any rights or obligations, or
(B) directly or indirectly benefiting any Governmental Body
(including any subcontract or other Contract between any TPT
Corporation and any contractor or subcontractor to any Governmental
Body);
(xiv) requiring
that any of the TPT Corporations give any notice or provide any
information to any Person prior to considering or accepting any
Acquisition Proposal or similar proposal, or prior to entering into
any discussions, agreement, arrangement or understanding relating
to any Acquisition Transaction or similar transaction;
(xv) contemplating
or involving the payment or delivery of cash or other consideration
in an amount or having a value in excess of $25,000 in the
aggregate, or contemplating or involving the performance of
services after the date of this Agreement having a value in excess
of $25,000 in the aggregate;
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(xvi)
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required to be listed on Part 2.7-2 of the TPT
Disclosure Schedule;
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(xvii) that could
reasonably be expected to have a material effect on the business,
condition, capitalization, assets, liabilities, operations or
financial performance of any of the TPT Corporations or on any of
the Contemplated Transactions; and
(xviii) any
other Contract, if a breach of such Contract could reasonably be
expected to have a TPT Material Adverse Effect.
Each of the foregoing is a “
TPT Material Contract
.”
(b) Each
TPT Material Contract is valid and in full force and effect, and is
enforceable in accordance with its terms, subject to: (i) laws of
general application relating to bankruptcy, insolvency and the
relief of debtors; and (ii) rules of law governing specific
performance, injunctive relief and other equitable
remedies.
(c) Except
as set forth in Part 2.16(c) of the TPT Disclosure Schedule:
(i) none of the TPT Corporations has violated or breached, or
committed any default under, any TPT Material Contract, except for
violations, breaches and defaults that have not had and would not
reasonably be expected to have a TPT Material Adverse Effect; and,
to the TPT’s Knowledge, no other Person has violated or
breached, or committed any default under, any TPT Material
Contract, except for violations, breaches and defaults that have
not had and would not reasonably be expected to have a TPT Material
Adverse Effect; (ii) to the TPT’s Knowledge, no event
has occurred, and no circumstance or condition exists, that (with
or without notice or lapse of time) will or would reasonably be
expected to, (A) result in a violation or breach of any of the
provisions of any TPT Material Contract, (B) give any Person
the right to declare a default or exercise any remedy under any TPT
Material Contract, (C) give any Person the right to accelerate
the maturity or performance of any TPT Material Contract, or
(D) give any Person the right to cancel, terminate or modify
any TPT Material Contract, except in each such case for defaults,
acceleration rights, termination rights and other rights that have
not had and would not reasonably be expected to have a TPT Material
Adverse Effect; and (iii) since October 4, 2006, none of the
TPT Corporations has received any notice or other communication
regarding any actual or possible violation or breach of, or default
under, any TPT Corporation Contract, except
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in each such case for defaults,
acceleration rights, termination rights and other rights that have
not had and would not reasonably be expected to have a TPT Material
Adverse Effect.
2.17
Insurance . Part 2.17 of the TPT Disclosure Schedule sets
forth a true, correct and complete list of all insurance policies
and fidelity bonds for the current policy year relating to any TPT
Corporation (and to any predecessor corporation thereof, including,
without limitation Axonyx Inc.), and its respective employees,
officers and directors. All such insurance policies and fidelity
bonds shall continue in full force and effect at and after the
Effective Time with such limits and coverage as is currently in
effect without the Consent of any Person or further action by any
Merger Party hereto. Each TPT Corporation maintains, and has
maintained, without interruption during its existence, policies of
insurance covering such risk and events, including, without
limitation, personal injury, property damage and general liability,
in amounts that are adequate, in light of prevailing industry
practices, for its business and operations, including, without
limitation, amounts that are intended to cover the Lawsuits and all
Costs associated therewith. None of the TPT Corporations has
received notice of termination or cancellation of any such policy.
None of the TPT Corporations has reached or exceeded its policy
limits for any insurance policy in effect at any time during the
past five (5) years. All premiums required to be paid with respect
thereto covering all periods up to and including the Effective Time
have been or will be paid in a timely fashion and there has been no
lapse in coverage under such policies or failure of payment that
will cause coverage to lapse during any period for which any TPT
Corporation has conducted its operations. None of the TPT
Corporations has any material obligation for retrospective premiums
for any period prior to the Effective Time. All such policies are
in full force and effect and will remain in full force and effect
up to and including the Effective Time, and, where applicable, at
or after the Effective Time, unless replaced with comparable
insurance policies having comparable or more favorable terms and
conditions. No insurer has put any TPT Corporation on notice that
coverage will be denied with respect to any claim submitted to such
insurer by any TPT Corporation (including any predecessor
corporation thereof, including, without limitation Axonyx Inc.).
There are no material claims by any TPT Corporation pending under
any of such policies or bonds as to which coverage has been
questioned, denied or disputed by the underwriters of such policies
or bonds or in respect of which such underwriters have reserved
their rights.
2.18
Labor Matters . Except as disclosed in the TPT SEC Reports,
(i) none of the TPT Corporations is a party to, or bound by,
any collective bargaining agreement, contract or other agreement or
understanding with a labor union or labor organization;
(ii) none of the TPT Corporations is the subject of any Legal
Proceeding asserting that any of the TPT Corporations has committed
an unfair labor practice or seeking to compel it to bargain with
any labor organization as to wages or conditions of employment;
(iii) there is no strike, work stoppage or other labor dispute
involving any of the TPT Corporations pending or, to TPT’s
Knowledge, threatened; (iv) no complaint, charge or Legal
Proceeding by or before any Governmental Body brought by or on
behalf of any employee, prospective employee, former employee,
retiree, labor organization or other representative of its
employees is pending or, to TPT’s Knowledge, threatened
against any of the TPT Corporations; (v) no grievance is
pending or, to TPT’s Knowledge, threatened against any of the
TPT Corporations; and (vi) none of the TPT Corporations is a
party to, or otherwise bound by, any Consent decree with, or
citation by, any Governmental Body relating to employees or
employment practices. No labor organization or group of employees
of any TPT Corporation has made a pending demand for recognition
or
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certification, and there are no
representation or certification proceedings or petitions seeking a
representation proceeding presently pending or threatened to be
brought or filed, with the National Labor Relations Board or any
other labor relations tribunal or authority. Each of the TPT
Corporations has complied with the Worker Adjustment and Retraining
Notification Act and any similar state law, such as California
Labor Code Section 1400, et seq. The TPT Corporations have not
implemented any employee layoffs, hours reductions, or employment
terminations that, standing alone or when aggregated with other
past or future layoffs, hours reductions, or employment
terminations could implicate the WARN Act or any similar state law,
such as California Labor Code Section 1400, et. seq. Each of the
TPT Corporations has been and is in material compliance with all
applicable Legal Requirements respecting employment and employment
practices, terms and conditions of employment, including, without
limitation, wages and hours, labor relations, employment
discrimination, disability rights or benefits, equal opportunity,
plant closure or mass layoff issues, affirmative action, leaves of
absence, occupational health and safety, workers compensation and
unemployment insurance. None of the current or former independent
contractors of the TPT Corporations was improperly classified as a
non-employee and no current or former employees classified as
“exempt” from overtime requirements were improperly
classified as exempt. The TPT Corporations do not have any material
unsatisfied obligations to any past or present employees or
qualified beneficiaries pursuant to COBRA, HIPAA, or any state law
governing health care coverage extension or continuation other than
the payment of benefits in the ordinary course of business. Part
2.18 of the TPT Disclosure Schedule accurately identifies each
former employee of any of the TPT Corporations who is receiving or
is scheduled to receive (or whose spouse or other dependent is
receiving or is scheduled to receive) any benefits (whether from
any of the TPT Corporations or otherwise) relating to such former
employee’s employment with any of the TPT Corporations; and
such Schedule accurately describes such benefits. The TPT
Corporations have maintained worker’s compensation coverage
as required by applicable state law through the purchase of
insurance and not by self-insurance or otherwise
2.19
Interests of Officers and Directors . None of the officers
or directors of any of the TPT Corporations or any of their
respective Affiliates (other than the TPT Corporations), or any
“associate” (as such term is defined in Rule 14a-1
under the Exchange Act) of any such offer or director, has any
interest in any property, real or personal, tangible or intangible,
used in or pertaining to the business of the TPT Corporations, or
in any supplier, distributor or customer of the TPT Corporations,
or any other relationship, contract, agreement, arrangement or
understanding with the TPT Corporations, except as disclosed in the
TPT SEC Reports and except for the normal rights of a stockholder
and rights under the Plans and the TPT Stock Options, the TPT
Warrants and the TPT Restricted Stock Units.
2.20
Rights Plan; DGCL Section 203 . TPT has amended the TPT
Rights Agreement and taken all other action necessary or
appropriate so that the execution and delivery of this Agreement by
the Parties hereto, and the consummation by TPT of the Merger and
the Contemplated Transactions, do not and will not cause Raptor or
any of its stockholders, Subsidiaries or Affiliates to be within
the definition of “Acquiring Person” under the TPT
Rights Agreement. TPT has taken all appropriate actions so that the
restrictions on business combinations contained in Section 203 of
the DGCL will not apply to Raptor with respect to or as a result of
the Contemplated Transactions.
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2.21
Brokers; Fees and Expenses . Except for the Expenses
incurred by TPT, no broker, finder, investment banker or other
Person (other than the TPT Financial Advisor) is entitled to any
brokerage, finder’s or other fee or commission in connection
with the Merger and the Contemplated Transactions based upon
arrangements made by or on behalf of any TPT
Corporation.
2.22
Trading on NASDAQ . As of the date of this Agreement, shares
of TPT Common Stock are listed for trading on the NASDAQ Global
Market and trading in TPT Common Stock on the NASDAQ Global Market
has not been suspended.
2.23
Valid Issuance . The TPT Common Stock to be issued in the
Merger will, when issued in accordance with the provisions of this
Agreement, be validly issued, fully paid and nonassessable. The TPT
Common Stock described in the preceding sentence will be issued in
compliance with all federal securities laws and all applicable Blue
Sky Laws.
2.24
TPT Budget . Part 2.24 of the TPT Disclosure Schedule sets
forth the projected spending estimate of the TPT Corporations from
September 1, 2009 through February 28, 2010 pursuant to the
Employment Agreements (or such agreements they
supersede).
2.25
Disclosure . None of the information supplied or to be
supplied by or on behalf of TPT for inclusion or incorporation by
reference in the Form S-4 Registration Statement will, at the time
the Form S-4 Registration Statement is filed with the SEC or at the
time it becomes effective under the Securities Act, 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 therein, in the light of the circumstances under
which they are made, not misleading. None of the information
supplied or to be supplied by or on behalf of TPT for inclusion or
incorporation by reference in the Prospectus/Joint Proxy Statement
will, at the time the Prospectus/Joint Proxy Statement is mailed to
the stockholders of TPT or at the time of the TPT
Stockholders’ Meeting, 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
therein, in the light of the circumstances under which they are
made, not misleading. The Prospectus