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Exhibit 2.1
AMENDMENT NO. 1 TO
AGREEMENT AND PLAN OF MERGER
This AMENDMENT NO. 1 TO
AGREEMENT AND PLAN OF MERGER (this “ Amendment
”) is made as of October 1, 2007 by and among NetScout
Systems, Inc., a Delaware corporation (“ NetScout
”), Bradley Merger Sub LLC, a Delaware limited liability
company (“ Merger Sub ”), Network General
Central Corporation, a Delaware corporation (“ NetGen
”), Network General Corporation, a Delaware corporation
(“ NetGen Opco ”), and Silver Lake Partners,
L.P., a Delaware limited partnership, and TPG Starburst IV, LLC, a
Delaware limited liability company, in each case solely in its
capacity as a representative for the stockholders of NetGen (each,
in such capacity, a “ Stockholders Representative
”), and this Amendment amends that certain Agreement and Plan
of Merger (the “ Merger Agreement ”), dated as
of September 19, 2007, by and among NetScout, Merger Sub,
NetGen, NetGen Opco and the Stockholders
Representatives.
WHEREAS, in accordance with
Section 10.04 of the Merger Agreement, the parties hereto wish
to amend the Merger Agreement as specified herein.
NOW, THEREFORE, the parties
hereto agree as follows:
1. Amendments
.
(a) Section 1.01(a) of
the Merger Agreement is hereby amended by deleting the definition
of “Accredited Holder” and inserting the following
definition in lieu thereof:
““ Accredited
Holder ” shall mean any holder of NetGen Stock who no
later than 25 days after the date hereof has delivered to NetGen
and NetScout representations and warranties in the form letter set
forth as Exhibit B hereto (the “ Accredited
Investor Representations Letter ”).”
(b) Section 1.01(a) of
the Merger Agreement is hereby amended by adding the following
definition:
““ Bring-Down
Date ” shall mean (a) if the waiting period
applicable to the Merger under the HSR Act has not been terminated
prior to October 26, 2007 and has not have been extended on or
prior to October 26, 2007, in either case by the FTC or DOJ,
then October 30, 2007 or (b) if the waiting period
applicable to the Merger under the HSR Act has been terminated
prior to October 26, 2007 or has been extended on or prior to
October 26, 2007, in either case by the FTC or DOJ, then the
Closing Date.”
(c) Section 1.01(a) of
the Merger Agreement is hereby amended by deleting the definition
of “Fully Diluted Basis” and inserting the following
definition in lieu thereof:
““ Fully
Diluted Basis ” shall mean, when used with respect to the
outstanding number of shares of NetGen Stock as of the Effective
Time, the sum of (i) all shares of NetGen Stock outstanding
immediately prior to the Effective Time (including, as applicable
at such time, the
shares of NetGen Common Stock that are
reserved for issuance under any Deferred Compensation Agreement and
that have not been issued at such time or the shares of NetGen
Common Stock issued to the NetGen Deferred Compensation Trust
pursuant to such Deferred Compensation Agreement); (ii) all
shares of NetGen Common Stock issuable upon the exercise of all of
the vested portions of in-the-money NetGen Stock Options
outstanding immediately prior to the Effective Time; and
(iii) all shares of NetGen Common Stock underlying all of the
vested portions of in-the-money NetGen SARs outstanding immediately
prior to the Effective Time.”
(d) Section 1.01(a) of
the Merger Agreement is hereby amended by deleting the definition
of “NetGen Stockholders” and inserting the following
definition in lieu thereof:
““ NetGen
Stockholders ” means each of the stockholders of NetGen
immediately prior to the Effective Time.”
(e) Sections 2.06(b) and
(c) of the Merger Agreement are hereby amended in their
entirety and the following text is hereby inserted in lieu
thereof:
“(b) At least three
(3) Business Days prior to the Closing, NetGen will deliver to
NetScout a schedule (the “ Distribution Schedule
”) setting forth for (i) each holder of NetGen Shares
that is an Accredited Holder (based solely on the delivery by
Accredited Holders of the Accredited Investor Representations
Letter), the portion and mix of the Merger Consideration payable or
issuable, as the case may be, to such holder on or about the
Effective Time and the portion of the Escrow Cash and Escrow Shares
corresponding to such holder, and (ii) each holder of NetGen
Shares that is a Non-Accredited Holder, the portion of the Merger
Consideration payable to such holder in cash on or about the
Effective Time and the portion of the Escrow Cash corresponding to
such holder, in each case, in accordance with NetGen’
certificate of incorporation in effect as of the date hereof. The
Distribution Schedule will also list all holders of vested,
in-the-money NetGen Stock Options and the amount payable to each
such holder under Section 2.10 and all holders of vested,
in-the-money NetGen SARs and the amount payable to each such holder
under Section 2.10. NetScout shall be entitled to rely
exclusively on the Distribution Schedule in making distributions of
Merger Consideration pursuant to this Section 2.06.
(c) For purposes of this
Agreement, each of the following terms shall have the meaning set
forth below:
“ Accredited Cash
Consideration Per Share ” shall mean an amount in cash
equal to (a) the Total Consideration Per Share minus
(b) the Accredited Stock Consideration Per Share.
“ Accredited Stock
Consideration Per Share ” shall mean such number of
shares of NetScout Common Stock equal in value to the quotient of
(a) the Total Stock Consideration divided by (b) the
number of shares of outstanding NetGen Stock held by the Accredited
Holders as of the Effective Time.
“ Escrow Cash
” shall mean $10,000,000.
“ Escrow
Consideration ” shall mean the Escrow Cash and the Escrow
Shares.
“ Escrow Shares
” shall mean a number of shares of NetScout Common Stock
equal to $5,000,000 divided by the NetScout Common Stock
Value.
“ in-the-money
” shall mean (a) in respect of the NetGen Stock Options,
each NetGen Stock Option that has an exercise price per share that
is less than the Total Consideration Per Share, and (b) in
respect of the NetGen SARs, each NetGen SAR that has a base price
per share that is less than the Total Consideration Per
Share.
“ Merger
Consideration ” shall mean cash and/or shares of NetScout
Common Stock, as applicable, payable to NetGen Stockholders and
holders of NetGen Stock Options and NetGen SARs pursuant to this
ARTICLE II .
“ NetScout Common
Stock Value ” shall mean the average of the closing price
of one share of NetScout Common Stock on the Nasdaq
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