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Exhibit
2.1
Execution Copy
AGREEMENT OF MERGER
DATED AS OF
DECEMBER 26, 2006
AMONG
CENVEO, INC.,
MOUSE ACQUISITION CORP.
AND
CADMUS COMMUNICATIONS CORPORATION
TABLE OF CONTENTS
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TABLE OF CONTENTS
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TABLE OF CONTENTS
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vi
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EXHIBIT(S)
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-v-
INDEX OF DEFINED TERMS
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Defined Term
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Section
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8.15(a)
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8.15(b)
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Preamble
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1.3
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8.15(c)
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3.2(a)
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2.2
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5.2(b)
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1.2
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1.2
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2.7
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Preamble
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3.7
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Recitals
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8.15(d)
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8.16(a)
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3.13(a)
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3.10
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5.2(b)
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3.3
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1.9(a)
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3.5(a)
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5.2(b)
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1.9(b)
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8.15(e)
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3.2(a)
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5.12
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5.16(a)
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5.15(a)
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3.4(a)
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8.15(b)
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5.6(a)
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3.21
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5.4(c)
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1.3
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3.14(a)
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3.12(a)
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3.14(a)
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8.15(f)
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3.4(b)
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1.8(a)
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3.14(l)
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-vi-
INDEX OF DEFINED TERMS
(Continued)
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Defined Term
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Section
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5.4(c)
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3.5(b)
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3.4(b)
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8.15(g)
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3.4(b)
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5.6(a)
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5.16(a)
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5.16(a)
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8.15(h)
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8.15(i)
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3.4(a)
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3.2(b)
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1.9(a)
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3.19
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3.19
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8.15(j)
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Recitals
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1.8(a)
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Preamble
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8.15(k)
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3.4(b)
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5.16(a)
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3.4(a)
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Preamble
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8.16(a)
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5.15(a)
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5.15(b)
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2.1
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3.14(c)
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8.15(l)
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1.3
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8.15(m)
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5.2(a)
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3.11(a)
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8.15(n)
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5.5(a)
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8.15(o)
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1.3
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3.5(a)
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3.5(a)
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5.16(a)
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8.15(p)
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8.15(q)
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1.1
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8.15(s)
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8.15(r)
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7.1(b)
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7.2(b)
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7.2(b)
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Recitals
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1.1
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-vii-
AGREEMENT OF MERGER
This Agreement of Merger dated as of December 26, 2006
(this " Agreement ") is among Cenveo, Inc., a Colorado
corporation (" Parent "), Mouse Acquisition Corp., a
Virginia corporation and an indirect wholly owned subsidiary of
Parent (" Merger Sub "), and Cadmus Communications
Corporation, a Virginia corporation (the " Company ").
Capitalized terms used but not defined elsewhere herein have the
meanings assigned to them in Section 8.15.
The respective Boards of Directors of Parent, Merger Sub and the
Company desire to enter into a transaction whereby Merger Sub will
merge with and into the Company (the " Merger "), pursuant
to which each issued and outstanding share of the Company’s
common stock, par value $0.50 per share (" Company Common
Stock "), not owned directly or indirectly by the Company will
be converted into the right to receive the Merger
Consideration.
In furtherance thereof, the respective Boards of Directors of
Parent, Merger Sub and the Company have adopted this Agreement and
the transactions contemplated hereby, including, without
limitation, the Merger. The Board of Directors of the Company has
recommended that its shareholders approve this Agreement and the
consummation of the transactions contemplated hereby, including,
without limitation, the Merger.
Concurrently with the execution and delivery of this Agreement,
and as a condition and inducement to the willingness of Parent and
Merger Sub to enter into this Agreement, Parent and certain of the
Company’s shareholders are entering into a Voting Agreement
(the "Voting Agreement" ) with respect to the voting of
Company Common Stock in connection with the Merger.
Parent, Merger Sub and the Company desire to make certain
representations, warranties and agreements in connection with, and
to prescribe certain conditions to, the Merger.
In consideration of the foregoing and the mutual covenants,
representations, warranties and agreements set forth herein, and
intending to be legally bound, the parties agree as follows:
ARTICLE 1
THE MERGER
Section 1.1. The Merger . Upon the terms and subject
to the conditions set forth in this Agreement, and in accordance
with the Virginia Stock Corporation Act (the "VSCA "),
Merger Sub shall be merged with and into Company at the Effective
Time and the separate corporate existence of Merger Sub shall
thereupon cease. The Company shall be the surviving corporation in
the Merger (the " Surviving Corporation ") and shall
continue to be governed by the Laws of the Commonwealth of
Virginia, and the separate corporate existence of the Company, with
all of its rights, privileges, immunities, powers and franchises
shall continue unaffected by the Merger except as otherwise
provided herein.
Section 1.2. Closing . The closing of the Merger
(the " Closing ") shall occur as promptly as practicable
after the satisfaction or waiver of the conditions set forth in
Article 6, and in any event no later than 10:00 a.m., local time,
on the third Business Day after the
satisfaction or waiver of the conditions set
forth in Article 6, other than conditions which by their nature are
to be satisfied at Closing, or such other time and date as Parent
and the Company shall agree in writing, unless this Agreement has
been theretofore terminated pursuant to its terms (the actual time
and date of the Closing is referred to as the " Closing Date
"). The Closing shall be held at the offices of Hughes
Hubbard & Reed LLP, One Battery Park Plaza, New York, NY
10004 or such other place as Parent and the Company shall agree in
writing.
Section 1.3. Effective Time . At the Closing, the
parties hereto shall (a) file articles of merger, in customary
form (the " Articles of Merger "), together with the related
plan of merger meeting the requirements of Section 13.1-716 of
the VSCA (such plan of merger, the "Plan of Merger" ),
substantially in the form attached hereto to Exhibit A ,
with the State Corporation Commission of the Commonwealth of
Virginia (the "SCC" ) and (b) duly make all other
filings and recordings required by the VSCA in order to effectuate
the Merger. The Merger shall become effective upon the issuance of
a certificate of merger by the SCC or at such later time as may be
agreed to by Parent and the Company in writing and specified in the
Articles of Merger (the date and time that the Merger becomes
effective is referred to as the " Effective Time ").
Section 1.4. Effects of the Merger . The Merger
shall have the effects set forth in this Agreement and §
13.1-721 of the VSCA.
Section 1.5. Articles of Incorporation . The
articles of incorporation of Merger Sub, as in effect immediately
prior to the Effective Time, shall be the articles of incorporation
of the Surviving Corporation (except that the name of the Surviving
Corporation shall be "Cadmus Communications Corporation"), until
thereafter amended in accordance with applicable Law.
Section 1.6. Bylaws . Merger Sub’s bylaws, as
in effect immediately prior to the Effective Time, shall be the
bylaws of the Surviving Corporation (except that the name of the
Surviving Corporation shall be "Cadmus Communications
Corporation"), until thereafter amended in accordance with
applicable Law.
Section 1.7. Officers and Directors . The officers
of the Company immediately prior to the Effective Time shall be the
officers of the Surviving Corporation, until the earlier of their
resignation or removal or until their respective successors are
duly elected and qualified, as the case may be. The directors of
Merger Sub immediately prior to the Effective Time shall be the
directors of the Surviving Corporation, until the earlier of their
resignation or removal or until their respective successors are
duly elected and qualified, as the case may be.
Section 1.8. Effect on Capital Stock . At the
Effective Time, pursuant to this Agreement and by virtue of the
Merger and without any action on the part of the holder of any
shares of Company Common Stock or any shares of capital stock of
Merger Sub:
(a) Each share of Company Common Stock issued and outstanding
immediately prior to the Effective Time (other than shares canceled
pursuant to Section 1.8(c) below, the "Excluded Shares"
) shall be cancelled and converted into the right to receive an
amount in cash equal to $24.75, without interest (the " Merger
Consideration "), payable to the holder thereof upon surrender
of the certificate formerly representing such shares of Company
Common Stock in accordance with Article 2.
-2-
(b) All shares of Company Common Stock shall
cease to be outstanding and shall be automatically canceled and
retired and shall cease to exist, and each holder of a certificate
that, immediately prior to the Effective Time, represented any
shares of Company Common Stock shall thereafter cease to have any
rights with respect to such shares of Company Common Stock, other
than the right to receive the Merger Consideration.
(c) Each share of Company Common Stock that is owned directly or
indirectly by Parent, Merger Sub, the Company or any wholly-owned
Subsidiary of the Company immediately prior to the Effective Time
shall be automatically canceled and retired and shall cease to
exist, and no consideration shall be made or delivered in exchange
therefor.
(d) Each share of common stock, par value $0.01 per share, of
Merger Sub issued and outstanding immediately prior to the
Effective Time shall be converted into one validly issued, fully
paid and nonassessable share of common stock, par value $0.01 per
share, of the Surviving Corporation, which shall constitute the
only outstanding shares of capital stock of the Surviving
Corporation.
Section 1.9. Company Stock Options and Other
Equity-Based Awards .
(a) Awards of restricted shares of Company Common Stock from the
Company (collectively, " Company Restricted Shares ")
granted under the Cadmus Communications Corporation FY 2005-2007
Executive Long-Term Incentive Plan, as corrected April 18,
2005 (the "LTIP "), shall vest, immediately prior to the
Effective Time, to the extent provided under Section 8(b) of
the LTIP and, as of the Effective Time, such vested Company
Restricted Shares shall become shares of Company Common Stock that
are converted into the right to receive the Merger Consideration as
provided in Section 1.8(a). Any Company Restricted Shares that
have not vested immediately prior to the Effective Time
pursuant to the preceding sentence shall be automatically canceled
and retired and shall cease to exist as of immediately prior to the
Effective Time, and no consideration shall be made or delivered in
exchange therefor.
(b) All outstanding options to acquire shares of Company Common
Stock from the Company (collectively, " Company Stock
Options ") heretofore granted under any Company Stock Plan
shall become exercisable and vested immediately prior to the
Effective Time and cease to represent, as of the Effective Time, a
right to acquire shares of Company Common Stock and shall be
converted, in settlement and cancellation thereof, into the right
to receive, at the Effective Time, a lump sum cash payment by the
Surviving Corporation of an amount equal to (i) the excess, if
any, of (A) the per share Merger Consideration over
(B) the exercise price per share of Company Common Stock
subject to such Company Stock Option, multiplied by
(ii) the number of shares of Company Common Stock for which
such Company Stock Option shall not theretofore have been
exercised.
(c) No Person shall have any right under the Company Stock Plans
or under any other plan, program, agreement or arrangement with
respect to equity interests of the Company or any of its
Subsidiaries, or for the issuance or grant of any right of any
kind, contingent or accrued, to receive benefits measured by the
value of a number of shares of Company Common Stock (including
restricted stock units, deferred stock units and dividend
equivalents), at and after the Effective Time (except as otherwise
expressly set forth in this Section 1.9 or Article 2).
-3-
(d) Promptly after the Effective Time and not
later than three Business Days after the Closing Date (unless
additional time is required to process payments under the
Company’s payroll systems), the Surviving Corporation shall
pay to each holder of Company Stock Options the cash payments
specified in this Section 1.9. The Company’s payroll
processor shall be instructed to promptly pay the holders of
Company Stock Options the amounts they are entitled to receive
hereunder. No interest shall be paid or accrue on the cash payments
contemplated by this Section 1.9. The Surviving Corporation
and Parent shall be entitled to deduct and withhold from the
consideration otherwise payable pursuant to this Agreement to any
holder of Company Stock Options any Taxes that either of them is
required or permitted to deduct and withhold under applicable Law.
To the extent that amounts are so deducted and withheld by the
Surviving Corporation or Parent and paid over to the appropriate
taxing authority, the amounts so deducted and withheld shall be
treated for all purposes of this Agreement as having been paid to
the holder of the Company Stock Options in respect of which such
deduction and withholding was made by the Surviving Corporation or
Parent, as the case may be, and the Paying Agent, the Surviving
Corporation or Parent shall provide to the holders of such
securities written notice of the amounts so deducted or
withheld.
(e) Prior to the Effective Time, the Company shall use its
commercially reasonable efforts to effectuate the provisions of
this Section 1.9, including the conversion of each Company
Stock Option into the right to receive an amount in cash as
described in Section 1.9(b). Notwithstanding any other
provision of this Section 1.9, payment may be withheld in
respect of any employee stock option until such necessary consents
are obtained.
Section 1.10. Certain Adjustments . If, between the
date of this Agreement and the Effective Time: (a) the
outstanding shares of Company Common Stock shall have been
increased, decreased, changed into or exchanged for a different
number of shares or different class, in each case, by reason of any
reclassification, recapitalization, stock split, split-up,
combination or exchange of shares; (b) a stock dividend or
dividend payable in any other securities of the Company shall be
declared with a record date within such period; or (c) any
similar event shall have occurred, then in each instance referred
to in the preceding clauses (a) through (c) the Merger
Consideration shall be appropriately adjusted to provide the
holders of shares of Company Common Stock (and Company Stock
Options) the same economic effect as contemplated by this Agreement
prior to such event.
ARTICLE 2
CONVERSION OF SHARES
Section 2.1. Paying Agent . At or prior to the
Effective Time, Parent shall designate, and enter into an agreement
with, a bank or trust company reasonably acceptable to the Company
to act as paying agent in the Merger (the " Paying Agent ").
Parent shall deposit with the Paying Agent as of the Effective
Time, for the benefit of the holders of shares of Company Common
Stock, cash sufficient to effect the payment of the Merger
Consideration to which such holders are entitled pursuant to
Section 1.8(a) and this Article 2.
-4-
Section 2.2. Payment Procedures . As
promptly as practicable, but in no event later than three Business
Days, after the Effective Time, Parent shall cause the Paying Agent
to mail to each holder of record of one or more certificates that,
prior to the Effective Time, represented shares of Company Common
Stock that were converted into the right to receive the Merger
Consideration pursuant to Section 1.8(a) (the "
Certificates "): (a) a letter of transmittal (which
shall specify that delivery shall be effected, and risk of loss and
title to the Certificates shall pass, only upon delivery of the
Certificates to the Paying Agent and shall be in such a form and
have such other provisions as Parent may reasonably specify); and
(b) instructions for use in effecting the surrender of the
Certificates in exchange for the Merger Consideration. Upon
surrender of a Certificate for cancellation to the Paying Agent or
to such other agent or agents as Parent may appoint, together with
such letter of transmittal, duly executed and completed, and such
other documents as the Paying Agent may reasonably require, the
holder of such Certificate shall be entitled to receive the Merger
Consideration in exchange for each share of Company Common Stock
formerly represented by such Certificate, and the Certificate so
surrendered shall forthwith be canceled. No interest shall be paid
or accrue on the Merger Consideration. If any portion of the Merger
Consideration is to be made to a Person other than the Person in
whose name the applicable surrendered Certificate is registered,
then it shall be a condition to the payment of such Merger
Consideration that (i) the Certificate so surrendered shall be
properly endorsed or shall be otherwise in proper form for transfer
and (ii) the Person requesting such payment shall have
(A) paid any transfer and other Taxes required by reason of
such payment in a name other than that of the registered holder of
the Certificate surrendered or (B) established to the
reasonable satisfaction of Parent that any such Taxes either have
been paid or are not payable.
Section 2.3. Undistributed Merger Consideration .
Any portion of the funds made available to the Paying Agent
pursuant to Section 2.1 that remains undistributed to holders
of Certificates on the date that is one year after the Effective
Time shall be delivered to Parent or its designee, and any holders
of Certificates who have not theretofore complied with this Article
2 shall thereafter look only to Parent for the Merger Consideration
to which such holders are entitled pursuant to Section 1.8(a)
and this Article 2. Any portion of the funds made available to the
Paying Agent pursuant to Section 2.1 that remains unclaimed by
holders of Certificates on the date that is five years after the
Effective Time or such earlier date immediately prior to such time
as such amounts would otherwise escheat to or become property of
any Governmental Entity shall, to the extent permitted by Law,
become the property of the Surviving Corporation, free and clear of
all claims or interests of any Person previously entitled
thereto.
Section 2.4. No Liability . None of Parent, Merger
Sub, the Company, the Surviving Corporation, the Paying Agent or
their respective directors, officers, employees and representatives
shall be liable to any Person in respect of any Merger
Consideration delivered to a public official pursuant to any
applicable abandoned property, escheat or similar Law.
Section 2.5. Investment of Merger Consideration .
The Paying Agent shall invest the funds made available to the
Paying Agent pursuant to Section 2.1 as directed by Parent on
a daily basis in obligations of or guaranteed by the United States
of America and backed by the full faith and credit of the United
States of America or in commercial paper obligations rated A-2/P-2
or better by Moody’s Investors Services, Inc. and
Standard & Poor’s Corporation, respectively (or
money market funds rated Aaa or better by Moody’s Investors
Services, Inc. or AAA or better by Standard & Poor’s
Corporation); provided , however , that no such gain
or loss thereon shall affect
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the amounts payable to holders of Certificates
pursuant to Section 1.8(a) and this Article 2. Any interest
and other income resulting from such investments shall be the
property of, and shall promptly be paid to, Parent.
Section 2.6. Lost Certificates . If any Certificate
shall have been lost, stolen or destroyed, then, upon the making of
an affidavit of that fact by the Person claiming such Certificate
to be lost, stolen or destroyed and, if required by the Surviving
Corporation, the posting by such Person of a bond in such
reasonable amount as the Surviving Corporation may direct as
indemnity against any claim that may be made against it with
respect to such Certificate, the Paying Agent shall deliver in
exchange for such lost, stolen or destroyed Certificate the
applicable Merger Consideration with respect to the shares of
Company Common Stock formerly represented thereby.
Section 2.7. Withholding Rights. The Paying Agent,
the Surviving Corporation and Parent shall be entitled to deduct
and withhold from the consideration otherwise payable pursuant to
this Agreement to any holder of shares of Company Common Stock with
respect to the making of such payment that either of them is
required or entitled to deduct and withhold under the Internal
Revenue Code of 1986, as amended (the " Code "), or any
provision of any other Tax law. To the extent that amounts are so
deducted and withheld by the Surviving Corporation or Parent and
paid over to the appropriate taxing authority, the amounts so
deducted and withheld shall be treated for all purposes of this
Agreement as having been paid to the holder of such shares of
Company Common Stock in respect of which such deduction and
withholding was made by the Surviving Corporation or Parent, as the
case may be, and the Paying Agent, the Surviving Corporation or
Parent shall provide to the holders of such securities written
notice of the amounts so deducted or withheld.
Section 2.8. Further Assurances . At and after the
Effective Time, the officers and directors of the Surviving
Corporation will be authorized to execute and deliver, in the name
and on behalf of the Company or Merger Sub, all deeds, bills of
sale, assignments and assurances and to take and do, in the name
and on behalf of the Company or Merger Sub, all other actions and
things to vest, perfect or confirm of record or otherwise in the
Surviving Corporation all right, title and interest in, to and
under all of the rights, properties or assets acquired or to be
acquired by the Surviving Corporation as a result of, or in
connection with, the Merger.
Section 2.9. Stock Transfer Books . The stock
transfer books of the Company shall be closed immediately upon the
Effective Time, and there shall be no further registration of
transfers of shares of Company Common Stock thereafter on the
records of the Company. At or after the Effective Time, any
Certificates presented to the Paying Agent, Parent or the Surviving
Corporation for any reason shall, subject to compliance with the
provisions of this Article 2 by the holder thereof, be converted
into the right to receive the Merger Consideration with respect to
the shares of Company Common Stock formerly represented
thereby.
-6-
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company represents and warrants to Parent and Merger Sub as
follows:
Section 3.1. Organization and Qualification . Each
of the Company and its Subsidiaries is a corporation or other
entity duly organized, validly existing and in good standing under
the Laws of the jurisdiction of its incorporation or organization
and has full corporate or other power and authority to own, operate
and lease the properties owned or used by it and to carry on its
business as and where such is now being conducted, except where the
failure to be so standing, individually or in the aggregate, has
not had and would not reasonably be expected to have a Material
Adverse Effect on the Company. Each of the Company and its
Subsidiaries is duly licensed or qualified to do business as a
foreign corporation, and is in good standing, in each jurisdiction
wherein the character of the properties owned or leased by it, or
the nature of its business, makes such licensing or qualification
necessary, except where the failure to be so licensed or qualified,
individually or in the aggregate, has not had and would not
reasonably be expected to have a Material Adverse Effect on the
Company. The copies of the articles of incorporation and bylaws of
the Company, including any amendments thereto, that have been made
available by the Company to Parent prior to the date of this
Agreement are correct and complete copies of such instruments as
presently in effect.
Section 3.2. Capitalization .
(a) As of December 22, 2006 (the " Capitalization
Date "), the authorized capital stock of the Company consisted
entirely of: (i) 16,000,000 shares of Company Common Stock, of
which 9,532,029 shares of Company Common Stock were issued and
outstanding; and (ii) 1,000,000 shares of Serial Preferred
Stock, par value $1.00 per share, none of which were issued and
outstanding or held in the treasury of the Company. All issued and
outstanding shares of capital stock of the Company and its
Subsidiaries are validly issued, fully paid and nonassessable. As
of the Capitalization Date, there were (x) Company Stock
Options representing in the aggregate the right to acquire 439,520
shares of Company Common Stock and (y) Company Restricted
Shares relating to in the aggregate 320,318 shares of Company
Common Stock under the Company Stock Plans. Schedule 3.2(a)
to the Company Disclosure Schedule sets forth a correct and
complete list, as of the Capitalization Date, of the number of
shares of Company Common Stock subject to Company Stock Options,
the number of unvested Company Restricted Shares or other rights to
purchase or receive Company Common Stock, or benefits based on the
value of Company Common Stock, granted under the Company Stock
Plans, the Employee Benefit Plans or otherwise, and the holders who
are executive officers of the Company (including breakdowns by
individuals for holders who are directors or executive officers of
the Company), the dates of grant and the exercise prices thereof.
No bonds, debentures, notes or other indebtedness of the Company
having the right to vote (or convertible into, or exchangeable for,
securities having the right to vote) on any matters on which
holders of capital stock of the Company may vote (" Company
Voting Debt ") are issued or outstanding. There are no
outstanding obligations of the Company or its Subsidiaries to
repurchase, redeem or otherwise acquire any shares of capital stock
or other equity interests of the Company or any of its
Subsidiaries. Except as set forth above, no shares of capital stock
or other voting securities of the Company have been issued or
reserved for issuance or are outstanding, other than the shares of
Company Common Stock reserved for issuance under the Company Stock
Plans. Except as set forth above, there are no options, warrants,
rights, convertible or exchangeable securities, "phantom" stock
rights, stock appreciation rights, stock-based performance units,
commitments, Contracts, arrangements or undertakings of any kind to
which the Company or any of its Subsidiaries is a party or by which
any of them is bound: (A) obligating the Company or any of
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its Subsidiaries to issue, deliver or sell, or
cause to be issued, delivered or sold, additional shares of capital
stock or other equity interests in, or any security convertible or
exercisable for or exchangeable into any capital stock of or other
equity interest in, the Company or any of its Subsidiaries or any
Company Voting Debt; (B) obligating the Company or any of its
Subsidiaries to issue, grant, extend or enter into any such option,
warrant, call, right, security, unit, commitment, Contract,
arrangement or undertaking; or (C) giving any Person the right
to receive any economic benefit or right similar to or derived from
the economic benefits and rights accruing to holders of capital
stock of the Company or any of its Subsidiaries.
(b) Except as set forth on Schedule 3.2(b) to the Company
Disclosure Schedule, the Company owns, directly or indirectly, all
of the issued and outstanding shares of capital stock and other
equity interests of its Subsidiaries, free and clear of all liens,
pledges, charges, encumbrances and other security interests of any
nature whatsoever (collectively, " Liens "). A correct and
complete list of all of the Company’s Subsidiaries, together
with the jurisdiction of incorporation or organization of each
Subsidiary and the percentage of each Subsidiary’s
outstanding capital stock or other equity interests owned by the
Company or another of its Subsidiaries, is set forth in Schedule
3.2(b)-1 to the Company Disclosure Schedule. A correct and
complete list of all corporations, partnerships, limited liability
companies, associations and other entities (excluding the
Company’s Subsidiaries) in which the Company or any
Subsidiary of the Company owns any joint venture, partnership,
strategic alliance or similar interest, together with the
jurisdiction of incorporation or organization of each such entity
and the percentage of each such entity’s outstanding capital
stock or other equity interests owned by the Company or any of its
Subsidiaries, is set forth in Schedule 3.2(b)-2 to the
Company Disclosure Schedule. Except for its interest in the
Subsidiaries, joint venture or similar entities as set forth in
Schedule 3.2(b)-2 to the Company Disclosure Schedule, the
Company does not own, directly or indirectly, any capital stock
interest, equity membership interest, partnership interest, joint
venture interest or other equity interest in any Person. Neither
the Company nor any of its Subsidiaries is obligated to make any
contribution to the capital of, make any loan to or guarantee the
debts of any joint venture or similar entity (excluding the
Company’s wholly-owned Subsidiaries).
(c) Parent has prior to the date of this Agreement received a
correct and complete copy of each Company Stock Plan.
Section 3.3. Authorization . The Company has full
corporate power and authority to execute and deliver this Agreement
and the related Plan of Merger and to consummate the transactions
contemplated hereby and thereby, subject, in the case of the
consummation of the Merger, to the approval and adoption of this
Agreement and the related Plan of Merger by the affirmative vote of
the holders of at least a majority of the shares of Company Common
Stock entitled to vote on the Merger (the " Company Requisite
Shareholder Vote "). The execution and delivery of this
Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby have been duly authorized by all
necessary corporate action on the part of the Company, and no other
corporate proceedings on the part of the Company or its
shareholders are necessary to authorize this Agreement and to
consummate the transactions contemplated hereby, other than the
approval of this Agreement and the Merger by the Company Requisite
Shareholder Vote. This Agreement has been duly executed and
delivered by the Company and constitutes a valid and legally
binding obligation of the Company enforceable
-8-
against the Company in accordance with its terms,
subject (as to enforceability) to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’
rights and to general equity principles. Article 15 of the VSCA is
not applicable to the Merger, and none of the Company’s
shareholders will have any appraisal, dissenters’ or similar
rights by reason of this Agreement or the related Plan of Merger or
the transactions contemplated hereby or thereby, including, without
limitation, the Merger.
Section 3.4. No Violation .
(a) The execution and delivery of this Agreement by the Company
do not, and the consummation by the Company of the Merger and the
other transactions contemplated hereby will not, conflict with, or
result in any violation of, or constitute a default (with or
without notice or lapse of time, or both) under, or give rise to a
right of, or result by its terms in the, termination, amendment,
cancellation or acceleration of any obligation under, or to
increased, additional, accelerated or guaranteed rights or
entitlements of any Person under, or create any obligation to make
a payment to any other Person under, or result in the creation of a
Lien on, or the loss of, any assets, including Company Intellectual
Property, of the Company or any of its Subsidiaries pursuant to:
(i) any provision of the articles of incorporation, bylaws or
similar organizational document of the Company or any of its
Subsidiaries; or (ii) any written or oral agreement, contract,
loan or credit agreement, note, mortgage, bond, indenture, lease,
benefit plan, permit, franchise, license or other instrument or
arrangement (each, a " Contract ") to which the Company or
any of its Subsidiaries is a party or by which any of their
respective properties or assets is bound, or any judgment,
injunction, ruling, order or decree (each, an "Order") or any
constitution, treaty, statute, law, principle of common law,
ordinance, rule or regulation of any Governmental Entity (each, a
"Law") applicable to the Company or any of its Subsidiaries or
their respective properties or assets, except, in the case of this
clause (ii), as: (A) individually or in the aggregate, has not
had and would not reasonably be expected to have a Material Adverse
Effect on the Company; (B) would not prevent or materially
delay the consummation of the transactions contemplated hereby; or
(C) set forth on Schedule 3.4(a) to the Company
Disclosure Schedule.
(b) No consent, approval, Order or authorization of, or
registration, declaration or filing with, any supranational,
national, state, provincial, municipal, local or foreign
government, any instrumentality, subdivision, court, administrative
agency or commission or other authority thereof, or any
quasi-governmental body exercising any regulatory, judicial,
administrative, taxing, importing or other governmental or
quasi-governmental authority (each, a " Governmental Entity
") or any other Person (including, without limitation, any labor
union, labor organization, works council or group of employees of
the Company or any of its Subsidiaries) is required to be obtained
or made by or with respect to the Company or any of its
Subsidiaries in connection with the execution and delivery of this
Agreement by the Company or the consummation of the Merger and the
other transactions contemplated hereby, except as set forth on
Schedule 3.4(b) to the Company Disclosure Schedule and for
those required under or in relation to: (i) the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended
(the " HSR Act ") and other Regulatory Laws; (ii) the
Securities Exchange Act of 1934, as amended (the " Exchange
Act "); (iii) the VSCA with respect to the filing of the
Articles of Merger; and (iv) such consents, approvals,
Orders,
-9-
authorizations, registrations, declarations and
filings the failure of which to make or obtain, individually or in
the aggregate, has not had and would not reasonably be expected to
have a Material Adverse Effect on the Company. Consents, approvals,
Orders, authorizations, registrations, declarations and filings
required under or in relation to any of clauses (i) through
(iii) above are referred to as the " Necessary Consents
."
Section 3.5. Filings with the SEC; Financial Statements;
Sarbanes-Oxley Act .
(a) The Company has filed all required registration statements,
prospectuses, reports, forms and other documents (if any) required
to be filed by it with the Securities and Exchange Commission (the
" SEC ") since July 1, 2004 (collectively, including
all exhibits thereto, the " Company SEC Reports "). No
Subsidiary of the Company is required to file any registration
statement, prospectus, report, schedule, form, statement or other
document with the SEC. Except as set forth on Schedule
3.5(a) to the Company Disclosure Schedule, none of the Company
SEC Reports, as of their respective dates (and, if amended or
superseded by a filing prior to the date of this Agreement, then on
the date of such filing), contained any untrue statement of a
material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not
misleading. All of the Company SEC Reports, as of their respective
dates (and as of the date of any amendment to the respective
Company SEC Report), complied as to form in all material respects
with the applicable requirements of the Securities Act of 1933, as
amended (the " Securities Act "), and the Exchange Act.
(b) Each of the financial statements (including the related
notes and schedules thereto) of the Company included in the Company
SEC Reports, as of their respective dates (and as of the date of
any amendment to the respective Company SEC Report), complied as to
form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC
with respect thereto, have been prepared in accordance with
generally accepted accounting principles in the United States ("
GAAP ") (except, in the case of unaudited statements, as
permitted by Form 10-Q of the SEC) applied on a consistent basis
during the periods and the dates involved (except as may be
indicated in the notes thereto) and fairly present, in all material
respects, the consolidated financial position and consolidated
results of operations and cash flows of the Company and its
consolidated Subsidiaries as of the respective dates or for the
respective periods set forth therein, subject, in the case of the
unaudited interim financial statements, to the absence of notes and
normal year-end adjustments that have not been and are not expected
to be material in amount.
(c) Except for liabilities reserved or reflected in a balance
sheet included in the Company SEC Reports filed prior to the date
of this Agreement or as set forth on Schedule 3.5(c) to the
Company Disclosure Schedule, the Company and its Subsidiaries have
no liabilities, absolute or contingent, other than:
(i) current liabilities incurred in the ordinary course of
business consistent with past practice after September 30,
2006; or (ii) liabilities that, individually or in the
aggregate, has not had and would not reasonably be expected to have
a Material Adverse Effect on the Company.
(d) Each of the principal executive officer and the principal
financial officer of the Company (or each former principal
executive officer and former principal financial officer
-10-
of the Company, as applicable) has made all
certifications required under Sections 302 and 906 of the
Sarbanes-Oxley Act of 2002 with respect to the Company SEC Reports,
and the Company has made available to Parent a summary of any
disclosure made by the Company’s management to the
Company’s auditors and the audit committee of the
Company’s Board of Directors referred to in such
certifications. (For purposes of the preceding sentence, "principal
executive officer" and "principal financial officer" shall have the
meanings ascribed to such terms in the Sarbanes-Oxley Act of
2002.)
(e) The Company maintains a system of internal control over
financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of
the Exchange Act) sufficient to provide reasonable assurance to the
Company and its Board of Directors (i) that the Company
maintains records that in reasonable detail accurately and fairly
reflect their respective transactions and dispositions of assets,
(ii) that transactions of the Company and its Subsidiaries are
recorded as necessary to permit preparation of financial statements
in conformity with GAAP, (iii) that receipts and expenditures
of the Company and its Subsidiaries are executed only in accordance
with authorizations of management and the Board of Directors of the
Company and (iv) regarding prevention or timely detection of
the unauthorized acquisition, use or disposition of the
Company’s assets that could have a material effect on the
Company’s financial statements. The Company has evaluated the
effectiveness of the Company’s internal control over
financial reporting and, to the extent required by applicable Law,
presented in any applicable Company SEC Report that is a report on
Form 10-K or Form 10-Q or any amendment thereto its conclusions
about the effectiveness of the internal control over financial
reporting as of the end of the period covered by such report or
amendment based on such evaluation. To the extent required by
applicable Law, the Company has disclosed, in any applicable
Company SEC Report that is a report on Form 10-K or Form 10-Q or
any amendment thereto, any change in the Company’s internal
control over financial reporting that occurred during the period
covered by such report or amendment that has materially affected,
or is reasonably likely to materially affect, the Company’s
internal control over financial reporting. The Company has
disclosed, based on the most recent evaluation of internal control
over financial reporting, to the Company’s auditors and the
audit committee of the Company’s Board of Directors
(A) all significant deficiencies and material weaknesses in
the design or operation of internal control over financial
reporting that are reasonably likely to adversely affect the
Company’s ability to record, process, summarize and report
financial information and (B) any fraud, whether or not
material, that involves management or other employees who have a
significant role in the Company’s internal control over
financial reporting.
(f) The Company has designed disclosure controls and procedures
(as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange
Act) to ensure that material information relating to the Company,
including its consolidated Subsidiaries, is made known to its
principal executive officer and principal financial officer. The
Company has evaluated the effectiveness of the Company’s
disclosure controls and procedures and, to the extent required by
applicable Law, presented in any applicable Company SEC Report that
is a report on Form 10-K or Form 10-Q or any amendment thereto its
conclusions about the effectiveness of the disclosure controls and
procedures as of the end of the period covered by such report or
amendment based on such evaluation.
-11-
(g) Except as set forth on Schedule 3.5(g)
to the Company Disclosure Schedule, the date of each Company Stock
Option that is reflected in the Company’s books and records
is the actual date of grant thereof (as determined under GAAP). All
Company Stock Options were granted with an exercise price at least
equal to the fair market value of Company Stock on the date of
grant of such Company Stock Option and no Company Stock Option has
been amended to reduce the exercise price from that in effect on
the date of grant (except pursuant to non-discretionary
antidilution provisions governing such Company Stock Option). The
financial statements of the Company included in the Company SEC
Reports fairly reflect in all material respects amounts required to
be shown as expense in connection with the grant and/or amendment
of any Company Stock Option.
Section 3.6. Proxy Statement . None of the
information contained or incorporated by reference in the Proxy
Statement will, on the date on which it is first mailed to the
Company’s shareholders or at the time of the Company
Shareholders 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
light of the circumstances under which they were made, not
misleading; provided that the Company makes no representation
regarding information provided in writing by Parent or its
Subsidiaries for inclusion in the Proxy Statement. The Proxy
Statement will comply as to form in all material respects with the
requirements of the Exchange Act.
Section 3.7. Board Approval . The Board of Directors
of the Company, by resolutions duly adopted by the unanimous vote
at a meeting duly called and held and not subsequently rescinded or
modified in any way (the " Company Board Approval "), has
duly (a) determined that (i) this Agreement and the
related Plan of Merger and the transactions contemplated hereby and
thereby, including, without limitation, the Merger, are advisable
and in the best interests of the Company and its shareholders and
(ii) the cash consideration for outstanding shares of Company
Common Stock in the Merger is fair to the shareholders of the
Company, (b) adopted this Agreement and the related Plan of
Merger and the transactions contemplated hereby and thereby,
including, without limitation, the Merger, and (c) recommended
that the shareholders of the Company approve this Agreement and the
related Plan of Merger and the transactions contemplated hereby and
thereby, including, without limitation, the Merger, and directed
that such matter be submitted to a vote by the Company’s
shareholders at the Company Shareholders Meeting.
Section 3.8. Absence of Certain Changes . Except as
disclosed in the Company SEC Reports filed prior to the date of
this Agreement, since September 30, 2006:
(a) except as set forth on Schedule 3.8(a) to the Company
Disclosure Schedule, the Company and its Subsidiaries have
conducted their respective businesses only in the ordinary course
of business consistent with past practice;
(b) except as set forth on Schedule 3.8(b) to the Company
Disclosure Schedule, there has not been any action taken by the
Company or any of its Subsidiaries that would have required the
consent of Parent under clause (b), (c) (in respect of the
Company and any Subsidiary that is not a wholly-owned Subsidiary
only), (d), (g), (h), (i), (j), (k) or (o) of
Section 5.1 if such action was taken after the date of this
Agreement;
-12-
(c) there has not been any change, event,
development, condition, occurrence or combination of changes,
events, developments, conditions or occurrences that, individually
or in the aggregate, has had or would reasonably be expected to
have a Material Adverse Effect on the Company; and
(d) except as set forth on Schedule 3.8(d) to the Company
Disclosure Schedule, neither the Company nor any of its
Subsidiaries has increased the compensation or benefits of, or
granted or paid any benefits to, any director or officer, or taken
any similar action, except, in the case of this clause (d):
(i) to the extent required under the terms of any agreements,
trusts, plans, funds or other arrangements disclosed in the Company
SEC Reports filed prior to the date of this Agreement; (ii) to
the extent required by applicable Law; or (iii) for increases
(other than in equity-based compensation) in the ordinary course of
business consistent with past practice. Without limitation, except
as disclosed in the Company SEC Reports filed prior to the date of
this Agreement, since December 31, 2005, neither the Company
nor any of its Subsidiaries has adopted or entered into any
arrangement that is a material Foreign Benefit Plan.
Section 3.9. Litigation; Orders . Except as
disclosed in the Company SEC Reports filed prior to the date of
this Agreement or as set forth on Schedule 3.9 to the
Company Disclosure Schedule, there is no claim, action, suit,
arbitration, proceeding, investigation or inquiry, whether civil,
criminal or administrative, pending or, to the knowledge of the
Company, threatened against the Company or any of its Subsidiaries
or any of their respective officers or directors (in such capacity)
or any of their respective businesses or assets, at law or in
equity, before or by any Governmental Entity or arbitrator, except
as, individually or in the aggregate, has not had and would not
reasonably be expected to have a Material Adverse Effect on the
Company or to prevent or materially delay the consummation of the
transactions contemplated hereby. Except as disclosed in the
Company SEC Reports filed prior to the date of this Agreement, none
of the Company, any of its Subsidiaries or any of their respective
businesses or assets is subject to any Order of any Governmental
Entity that, individually or in the aggregate, has had or would
reasonably be expected to have a Material Adverse Effect on the
Company or to prevent or delay the consummation of the transactions
contemplated hereby.
Section 3.10. Permits; Compliance with Laws . Except
as disclosed in the Company SEC Reports filed prior to the date of
this Agreement and except as, individually or in the aggregate, has
not had and would not reasonably be expected to have a Material
Adverse Effect on the Company, the Company and its Subsidiaries
hold all permits, licenses, franchises, variances, exemptions,
Orders and approvals of all Governmental Entities that are
necessary for the operation of their respective businesses as now
being conducted (collectively, the " Company Permits "), and
no suspension or cancellation of any of the Company Permits is
pending or, to the knowledge of the Company, threatened. The
Company and its Subsidiaries are in compliance with, and the
Company and its Subsidiaries have not received any notices of
noncompliance with respect to, the Company Permits and any Laws,
except for instances of noncompliance where neither the costs to
comply nor the failure to comply, individually or in the aggregate,
has or would reasonably be expected to have a Material Adverse
Effect on the Company. Without limitation, during the three years
prior to the date of this Agreement, none of the Company, any of
its Subsidiaries or any director, officer, or employee of, or, to
the knowledge of the Company, any agent or other Person associated
with or acting on behalf of the Company or any of its Subsidiaries
has, directly or indirectly: (a) used any funds of the
-13-
Company or any of its Subsidiaries for unlawful
contributions, unlawful gifts, unlawful entertainment or other
unlawful expenses relating to political activity; (b) made any
unlawful payment to foreign or domestic governmental officials or
employees or to foreign or domestic political parties or campaigns
from funds of the Company or any of its Subsidiaries;
(c) violated any provision of the Foreign Corrupt Practices
Act of 1977, as amended, or any similar Law; (d) established
or maintained any unlawful fund of monies or other assets of the
Company or any of its Subsidiaries; (e) made any fraudulent
entry on the books or records of the Company or any of its
Subsidiaries; or (f) made any unlawful bribe, unlawful rebate,
unlawful payoff, unlawful influence payment, unlawful kickback or
other unlawful payment to any Person, private or public, regardless
of form, whether in money, property or services, to obtain
favorable treatment in securing business, to obtain special
concessions for the Company or any of its Subsidiaries, to pay for
favorable treatment for business secured or to pay for special
concessions already obtained for the Company or any of its
Subsidiaries, except, in each case referred to in clauses
(a) through (f), where such acts, individually or in the
aggregate, has not had and would not reasonably be expected to have
a Material Adverse Effect on the Company.
Section 3.11. Tax Matters . Except as set forth on
Schedule 3.11 to the Company Disclosure Schedule:
(a) All material Taxes of the Company and its Subsidiaries
attributable to periods or portions thereof ending on or before the
date of the consolidated balance sheet of the Company and its
Subsidiaries for the fiscal year ended June 30, 2006 included
in the Company SEC Reports (the " Recent Balance Sheet ")
were paid prior to the date of the Recent Balance Sheet or have
been included in a liability accrual for Taxes on the Recent
Balance Sheet. Since the date of the Recent Balance Sheet, neither
the Company nor any of its Subsidiaries has incurred any material
Taxes other than Taxes incurred in the ordinary course of business
consistent with past practice.
(b) Each of the Company and its Subsidiaries has timely filed
all material Tax Returns required to be filed (taking into account
any extension of time within which to file), and all such Tax
Returns were and are correct and complete in all material respects.
The Company has provided Parent with access to complete and
accurate copies of all such Tax Returns for which the statute of
limitations is still open.
(c) Each of the Company and its Subsidiaries has duly withheld,
collected and timely paid all material Taxes that it was required
to withhold, collect and pay relating to amounts paid or owing to
any employee, independent contractor, creditor, stockholder or
other Person.
(d) No Tax audit or other administrative proceeding or court
proceedings are presently pending or threatened in writing with
regard to any material Taxes of the Company or any of its
Subsidiaries. No claim has been made in writing by any taxing
authority in a jurisdiction where the Company or any of its
Subsidiaries does not file Tax Returns that the Company or any of
its Subsidiaries is or may be subject to Tax or required to file a
Tax Return in such jurisdiction, except for those instances where
neither the imposition of any such Tax nor the filing of any such
Tax Return (and the obligation to pay the Taxes reflected thereon),
individually or in the aggregate, has had or would reasonably be
expected to have a Material
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Adverse Effect on the Company. There are no
outstanding waivers or comparable consents that have been given by
the Company or any of its Subsidiaries regarding the application of
the statute of limitations with respect to any Taxes or Tax
Returns. There are no Liens on any of the assets of the Company and
its Subsidiaries that arose in connection with any failure to pay
Taxes, other than Liens for Taxes that are not yet due and
payable.
(e) Neither the Company nor any of its Subsidiaries has
requested or received any material Tax ruling, private letter
ruling, technical advice memorandum, competent authority relief or
similar agreement or entered into a material closing agreement or
contract with any taxing authority that, in each case, was
requested or received in a year, or dictates the Tax treatment of
any item in a year, with respect to which the applicable statute of
limitations is open. Neither the Company nor any of its
Subsidiaries is subject to a Tax sharing, allocation,
indemnification or similar agreement (except such agreements as are
solely between or among the Company and its Subsidiaries) pursuant
to which it could have an obligation to make a material payment to
any Person in respect of Taxes.
(f) The Company has not during the last five years been a member
of an Affiliated group of corporations that filed a consolidated
tax return except for groups for which it was the parent
corporation. For any year with respect to which the statute of
limitations is open, none of the Company’s Subsidiaries has
ever been a member of an Affiliated group of corporations that
filed a consolidated tax return except for groups of which the
Company was the parent corporation.
(g) Neither the Company nor any of its Subsidiaries is
participating or has participated in a reportable or listed
transaction within the meaning of Treas. Reg. Section 1.6011-4
or Section 6707A(c) of the Code. The Company and each of its
Subsidiaries have disclosed on their federal income Tax Returns all
positions taken therein that could reasonably be expected to give
rise to a substantial understatement of federal income Tax within
the meaning of Section 6662 of the Code.
(h) Neither the Company nor any of its Subsidiaries has been the
"distributing corporation" or a "controlled corporation" (within
the meaning of Section 355 of the Code) with respect to a
transaction described in Section 355 of the Code within the
two-year period ending on the date of this Agreement.
(i) Neither the Company nor any of its Subsidiaries has received
any dividend intended to qualify for the deduction described in
Section 965 or any predecessor thereto of the Code.
Section 3.12. Environmental Matters .
(a) The Company and each of its Subsidiaries are in compliance
with all applicable Laws and Orders relating to pollution,
protection of the environment or human health, occupational safety
and health or sanitation, including the Comprehensive Environmental
Response, Compensation and Liability Act, as amended, and all other
applicable Laws and Orders relating to emissions, spills,
discharges, generation, storage, leaks, injection, leaching,
seepage, releases or threatened releases of Hazardous Substances
into the environment (including
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ambient air, surface water, ground water, land
surface or subsurface strata) or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Substances, together
with any plan, notice or demand letter issued, entered, promulgated
or approved thereunder (collectively, " Environmental Laws
"), except for instances of noncompliance where neither the costs
to comply nor the failure to comply, individually or in the
aggregate, have had or would reasonably be expected to have a
Material Adverse Effect on the Company. Neither the Company nor any
of its Subsidiaries has received any written notice of (i) any
material violation of an Environmental Law or (ii) the
institution of any claim, action, suit, proceeding, investigation
or inquiry by any Governmental Entity or other Person alleging that
the Company or any of its Subsidiaries may be in material violation
of or materially liable under any Environmental Law.
(b) Neither the Company nor any of its Subsidiaries has
(i) placed, held, located, released, transported or disposed
of any Hazardous Substances on, under, from or at any of the
properties currently or previously owned or operated by the Company
or any of its Subsidiaries, except in a manner that, individually
or in the aggregate, has not had and would not reasonably be
expected to have a Material Adverse Effect on the Company,
(ii) any liability for any Hazardous Substance disposal or
contamination on any of the Company’s or any of its
Subsidiaries’ properties or any other properties that,
individually or in the aggregate, has or would reasonably be
expected to have a Material Adverse Effect on the Company,
(iii) reason to know of the presence of any Hazardous
Substances on, under or at any of the Company’s or any of its
Subsidiaries’ properties or any other properties but arising
from the conduct of operations on the Company’s or any of its
Subsidiaries’ properties, except in a manner that,
individually or in the aggregate, has not had and would not
reasonably be expected to have a Material Adverse Effect on the
Company, or (iv) received any written notice of (A) any
actual or potential liability for the response to or remediation of
Hazardous Substances at or arising from any of the Company’s
or any of its Subsidiaries’ properties or any other
properties or (B) any actual or potential liability for the
costs of response to or remediation of Hazardous Substances at or
arising from any of the Company’s or any of its
Subsidiaries’ properties or any other properties, in the case
of both subclause (A) and (B), that, individually or in the
aggregate, has had or would reasonably be expected to have a
Material Adverse Effect on the Company.
(c) Except as set forth on Schedule 3.12(c) to the
Company Disclosure Schedule, there are no underground storage
tanks, asbestos, asbestos-containing materials, polychlorinated
biphenyls (PCBs) or PCB wastes located, contained, used or stored
at or on any of the Company’s or any of its
Subsidiaries’ properties that, individually or in the
aggregate, are material. To the knowledge of the Company, no
underground storage tanks, asbestos, asbestos-containing materials,
polychlorinated biphenyls (PCBs) or PCB wastes were previously
located, contained, used or stored at or on any of the
Company’s or any of its Subsidiaries’ properties that,
individually or in the aggregate, are material.
(d) The Company has prior to the date of this Agreement provided
to Parent: (i) all copies of all material reports, studies,
analyses or tests, and any results of monitoring programs, in the
possession or control of the Company within the last two years
pertaining to the generation, storage, use, handling,
transportation, treatment, emission, spillage, disposal, release or
removal of Hazardous Materials at, in, on or under any of the
Company’s or any of its Subsidiaries’ properties; and
(ii) a copy of any environmental investigation or assessment
conducted by the Company or any of its Subsidiaries within the past
three years or any environmental consultant engaged by any of
them.
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Section 3.13. Intellectual Property
.
(a) Except as set forth on Schedule 3.13(a) to the
Company Disclosure Schedule, the Company and its Subsidiaries have
good title to or, with respect to items not owned by the Company or
its Subsidiaries, sufficient rights to use all material
Intellectual Property Rights that are owned or licensed by the
Company or any of its Subsidiaries or utilized by the Company or
any of its Subsidiaries in the conduct of their respective
businesses (all of the foregoing items are hereinafter referred to
as the " Company Intellectual Property "). To conduct the
business of the Company and its Subsidiaries as presently
conducted, neither the Company nor any of its Subsidiaries requires
any material Intellectual Property Rights that the Company and its
Subsidiaries do not already own or license. The Company has no
knowledge of any infringement or misappropriation by others of
Intellectual Property Rights owned by the Company or any of its
Subsidiaries. The conduct of the businesses of the Company and its
Subsidiaries does not infringe on or misappropriate any
Intellectual Property Rights of others, except where such
infringement or misappropriation, individually or in the aggregate,
has not had and would not reasonably be expected to have a Material
Adverse Effect on the Company.
(b) Except as set forth on Schedule 3.13(b) to the
Company Disclosure Schedule, no claims with respect to Company
Intellectual Property are pending or, to the knowledge of the
Company, threatened by any Person (i) to the effect that the
manufacture, sale or use of any product, process or service as now
used or offered or proposed for use or sale by the Company or any
of its Subsidiaries infringes on any Intellectual Property Rights
of any Person, (ii) against the use by the Company or any of
its Subsidiaries of any Company Intellectual Property or
(iii) challenging the ownership, validity, enforceability or
effectiveness of any Company Intellectual Property, except in the
case of clause (i) through (iii) where such claims,
individually or in the aggregate, have not had and would not
reasonably be expected to have a Material Adverse Effect on the
Company.
Section 3.14. Employee Benefits .
(a) Schedule 3.14(a) to the Company Disclosure Schedule
sets forth a correct and complete list of all "employee benefit
plans," as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974, as amended (" ERISA "), other
than any Multiemployer Plan, and all other material employee
benefits, arrangements, perquisite programs, payroll practices or
(without regard to materiality) executive compensation Contracts
that are maintained by the Company or any of its Subsidiaries or to
which the Company or any of its Subsidiaries is obligated to
contribute, for current or former employees or directors (or
dependents or beneficiaries thereof) of the Company or any of its
Subsidiaries (collectively, the " Employee Benefit Plans
").
(b) Schedule 3.14(b) to the Company Disclosure Schedule
sets forth a correct and complete list of all Multiemployer Plans.
With respect to each Multiemployer Plan: (i) if the Company,
any of its Subsidiaries or any ERISA Affiliate was to experience a
withdrawal or partial withdrawal from such plan, no withdrawal
liability under Title IV of ERISA would be
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incurred, except as set forth on such schedule;
and (ii) none of the Company, any of its Subsidiaries or any
ERISA Affiliate has received any notification, nor has any reason
to believe, that any Multiemployer Plan is in reorganization, has
been terminated, is insolvent or may reasonably be expected to be
in reorganization, to be insolvent or to be terminated. During the
last five years, none of the Company, its current or former
Subsidiaries or any current or former ERISA Affiliate has
(i) withdrawn from any Multiemployer Plan in a complete or
partial withdrawal under circumstances in which any withdrawal
liability was not satisfied in full or (ii) engaged in a
transaction that is subject to Section 4069 of ERISA. During
the last five years, none of the Company, any of its Subsidiaries
or any ERISA Affiliate is or has ever been a party to any multiple
employer plan, as that term is defined in Section 413(c) of
the Code, or
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