Exhibit 2.1
A MENDMENT TO A
SSET P URCHASE A GREEMENT
This Amendment (this “
Amendment ”) to the Asset Purchase Agreement (the
“ Asset Purchase Agreement ”) by and among
S ILICON G RAPHICS ,
I NC ., a Delaware corporation (the “
Seller ”) and each of the subsidiaries of the Seller
listed on Schedule I thereto (together with the Seller, the “
Selling Entities ”), and R ACKABLE S YSTEMS ,
I NC . a Delaware corporation (the “
Buyer ”) dated as of March 31, 2009, is being
entered into as of April 30, 2009, among the Seller, the
Selling Entities and the Buyer in accordance with Section 10.1
of the Asset Purchase Agreement. All capitalized terms used but not
otherwise defined in this Amendment have the meanings given to them
in the Asset Purchase Agreement. The Asset Purchase Agreement is
hereby amended as follows:
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1.
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Section 3.3 (Subsidiary Tax Escrow),
subsection 4.3(b), Section 4.4 (License), subsection 7.6(b)
and subsection 8.1(b) are deleted from the Asset Purchase Agreement
and replaced with “[Reserved].”
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2.
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The following
defined term and definition shall be added to
Section 1.1(a):
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“ “ Agent ”
means Wilmington Trust Corporation as agent for the Selling
Entities’ prepetition secured lenders.”
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3.
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Schedule
2.1(f) to the Asset
Purchase Agreement is amended and restated and is attached as
Exhibit 1 to this Amendment.
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4.
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Section 2.1(j) of the Asset Purchase
Agreement shall be replaced with the following:
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“(j) all of the stock of the
subsidiaries of the Selling Entities listed on Schedule 2.1(j) (the
“ Acquired Subsidiaries ”), except as otherwise
set forth on Schedule 2.1(j);”
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5.
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Schedule
2.1(j) to the Asset
Purchase Agreement is amended and restated and is attached as
Exhibit 2 to this Amendment.
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6.
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Schedule
2.2(h) to the Asset
Purchase Agreement is amended and restated and is attached as
Exhibit 3 to this Amendment (it being understood that the
definition of “Specified IP” shall take into account
the amendment and restatement of Schedule 2.2(h)
).
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7.
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Section 3.1 (Purchase Price) of the Asset
Purchase Agreement shall be replaced with the following:
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“3.1 Purchase
Price . In consideration
for the Purchased Assets, and subject to the terms and conditions
of this Agreement, and the entry and effectiveness of the Sale
Order, at the Closing, the Buyer and/or (in the Buyer’s sole
discretion) a Buyer Affiliate shall assume the Assumed Liabilities
by executing the Assumption Agreement and the Buyer shall pay to
the Agent (in the manner described in the next sentence) an amount
in cash equal to: (i) US$42,500,000;
minus (ii) the amount, if any,
by which the aggregate amount of the unrestricted cash of the
Acquired Subsidiaries and their subsidiaries as of the Closing (the
“ Subsidiary Closing Cash ”) is less than
US$5,000,000 (based on the applicable exchange rate quoted in the
Western Edition of the Wall Street Journal on the Business Day
immediately preceding the Closing, it being understood that the
amount to be subtracted from clause “(i)” pursuant to
clause “(ii)” can not exceed US$5,000,000) (the amount
determined by subtracting the amount described in clause
“(ii)” from the amount described in clause
“(i)” of this sentence, the “ Purchase
Price ”). At the Closing, the Buyer shall: (a) pay
and deliver to the Agent, by wire transfer of immediately available
U.S. funds to an account designated by the Agent prior to the
Closing, the Purchase Price less the Deposit (and less interest
accrued on the Deposit); and (b) instruct the Escrow Holder
(as defined below) to deliver the Deposit (and any interest accrued
thereon) to the Agent, by wire transfer of immediately available
U.S. funds to an account designated by the Agent prior to the
Closing.”
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8.
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All references
in the Asset Purchase Agreement to the “Base Purchase
Price” shall be deemed to be references to the
“Purchase Price.”
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9.
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Section 4.1 of the Asset Purchase Agreement
shall be amended and restated as follows:
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“Time and Place of the
Closing . Upon the terms
and subject to the satisfaction of the conditions contained in
Article VIII of this Agreement, the closing of the sale
of the Purchased Assets and the assumption of the Assumed
Liabilities contemplated by this Agreement (the “
Closing ”) shall take place at the offices of Cooley
Godward Kronish LLP, 3175 Hanover Street, Palo Alto, California, at
10:00 A.M. (local time) no later than the later of:
(a) May 8, 2009; and (b) the second Business Day
following the date on which the conditions set forth in
Article VIII have been satisfied (other than the
conditions with respect to actions the respective parties hereto
will take at the Closing itself) or, to the extent permitted,
waived by the applicable party in writing, or at such other place
and time as the Buyer and the Seller may mutually agree (it being
understood that if, as of the date on which all of the conditions
to the Buyer’s obligation to effect the purchase of the
Purchased Assets set forth in Section 8.1 and
Section 8.2, other than the requirement set forth in
Section 8.1(c) that the Sale Order shall be a Final Order,
have been satisfied, no Person has filed an appeal with respect to
the Sale Order and no stay relating to the Sale Order has been
issued, the Buyer shall waive the requirement in
Section 8.1(c) that the Sale Order shall be a “Final
Order”). The date and time at which the Closing actually
occurs is herein referred to as the “ Closing Date
.””
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10.
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Section 4.2.(j) of the Asset Purchase
Agreement shall be amended and restated as follows:
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“(j) Except as set forth on
Schedule 4.2(j) and subject to Section 7.15, stock
certificates representing all of the shares in the Acquired
Subsidiaries, duly endorsed (or accompanied by duly executed stock
powers) by the Selling Entity owning such shares (or other
appropriate instruments necessary to transfer the Selling
Entities’ equity interests therein to the Buyer or a Buyer
Affiliate.”
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11.
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A new
Schedule 4.2(j) shall be added to the Schedules to the Asset
Purchase Agreement and is attached as Exhibit 4 to this
Amendment.
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12.
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Subsection
(a) of Schedule 5.3 to the Asset Purchase Agreement is
amended and restated and is attached as Exhibit 5 to this
Amendment.
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13.
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The following
contract shall be added to the end of the first section entitled
“Patent License Agreements” of Schedule 2.1(e) and to
the end of subsection (e) of Schedule 5.3 to the Asset
Purchase Agreement:
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Title
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Parties
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Entered
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Subcontracting
Agreement, as amended by Amendment #1 dated September 2,
2004
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University of
Utah and Silicon Graphics, Inc.
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October 1,
2003
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14.
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Schedule
5.8(d) to the Asset
Purchase Agreement is amended and restated and is attached as
Exhibit 6 to this Amendment.
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15.
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The punctuation
mark at the end of subsection 4.2(j) of the Asset Purchase
Agreement shall be removed and replaced with “; and”
and a new subsection 4.2(k) shall be added to the Asset Purchase
Agreement as follows:
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“a License Agreement, in the
form attached as Exhibit 7 to the Amendment, dated as of
April 30, 2009, to this Agreement duly executed by the Selling
Entities.”
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16.
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Section 7.7(c) of the Asset Purchase
Agreement shall be amended and restated as follows:
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“After receipt of the list of
Specified Employees described in Section 7.7(a) above, but
prior to the Closing Date, the Selling Entities shall terminate,
effective as of a time prior to the Closing, all Persons who would
otherwise be Employees as of the Closing other than: (i) the
Specified Employees; and (ii) any Employees who are not
Specified Employees and whom the Selling Entities decide to retain
following the Closing (including Employees identified by the Seller
and agreed to by the Buyer prior to the Closing) (“
Retained Employees ”), and such termination shall be
deemed to have been made at the request, and with the consent, of
the Buyer. An Employee who satisfies the conditions described in
any of clauses “(A)” through “(C)” of this
sentence is referred to as a “ Terminated Employee
”: (A) such Employee is terminated pursuant to the
preceding sentence, (B) such Employee is terminated at any
other time on or after the Petition Date and prior to the Closing
at the direction or with the consent of the Buyer (such consent not
to be unreasonably withheld in the case of a proposed termination
for “cause”); or (C) such Employee is a Specified
Employee who does not become a Transferred Employee as of the
Closing.”
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17.
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A new
subsection 7.7(j) shall be added to the Asset Purchase Agreement as
follows:
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“(j) The Buyer shall indemnify
the directors and officers of the Seller against: (i) any
Liability imposed on them under the WARN Act with respect to
employees of the Selling Entities who were terminated prior to the
Petition Date; and (ii) the reasonable costs and expenses of
legal counsel incurred by them in defending a claim made against
them seeking to impose the Liability referred to in clause
“(i)” of this Section 7.7(j); provided,
however , that the maximum aggregate amount of indemnification
payments that the Buyer may be required to make pursuant to this
Section 7.7(j) shall be US$400,000.”
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18.
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A new
subsection 7.7(k) shall be added to the Asset Purchase Agreement as
follows:
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“(k) The Buyer shall provide,
to the extent not paid or funded prior to the Closing Date, the
funding for: (i) claims under the self-insured portion of the
Seller’s Group Health, Life, and Dental Plan (Plan 501), or
any successor, predecessor, or related plan (the “
Self-Insured Plan ”) that were incurred by eligible
participants in such plan (or other eligible dependents) for
medical, vision, and/or prescription drug expenses covered under
the Self-Insured Plan and incurred on or prior to the Closing Date
and not paid prior to the Closing Date (a “ Self Insured
Claim ”); (ii) the continuation of the stop loss
insurance policy related to the Self-Insured Plan (and terminal
liability coverage under such policy) as in effect on the Closing
Date (the “ Stop Loss Policy ”), and
(iii) claim administration fees and expenses relating to the
Self-Insured Plan pursuant to the Administrative Services Contract
(and any amendments or supplements thereto) between the Seller and
Aetna Life Insurance Company of Connecticut or any of its
affiliates (collectively, “Aetna”) (clauses (i),
(ii) and (iii) hereof, the “ Self-Insured Plan
Costs”) ; provided, however , that: (A) the
Buyer shall be obligated to provide funding for a Self Insured
Claim only to the extent such Self Insured Claim is not covered by
the Stop Loss Policy; and (B) the maximum aggregate amount of
funding that the Buyer may be required to provide pursuant to this
Section 7.7(k) shall be US$2,100,000. Unless the parties
otherwise agree after consulting with Aetna, the funding of the
amounts set forth in the preceding sentence shall be effected by
means of a US$2,100,000 reduction in the amount of cash otherwise
included in the Purchased Assets at the Closing under
Section 2.1(a) (with such amount to be held by the Seller in
trust (it being understood that the Seller shall not be required to
form an actual trust entity) for the benefit of the eligible
participants in such plan and, to the extent not utilized pursuant
to this Section 7.7(k), for the benefit of the Buyer, or, if
Aetna so agrees, by Aetna, in either case, with any portion of such
US$2,100,000 not utilized pursuant to this Section 7.7(k) by
the 180th day following the Closing Date becoming a Purchased Asset
to be delivered to the Buyer on the 180th day following the Closing
Date). The parties shall cause such
US$2,100,000 of funds to be used
for, and only for, the purposes contemplated by this
Section 7.7(k) (including the payment of Self-Insured Plan
Costs) and the Seller shall use its reasonable best efforts to keep
the Stop Loss Policy in effect for all relevant
periods.”
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19.
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Clause
“(iii)” of the second sentence of Section 7.9 of
the Asset Purchase Agreement is amended and restated as follows:
“(iii) the entry of an order in the form of
Exhibit C approving this Agreement, in a form and
substance reasonably acceptable to the Buyer and the Agent and not
subject to Rules 6004(h) and 6006(d) of the Federal Rules of
Bankruptcy Procedure (the “ Sale Order
”).”
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20.
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A new
subsection 7.15 shall be added to the Asset Purchase Agreement as
follows:
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“From and after the Closing,
the Selling Entities will use commercially reasonable efforts
(including, for avoidance of doubt, cooperate in the preparation
and submission of the relevant audited financial statements to the
registration authorities in Malaysia for the transfer of the shares
in Silicon Graphics Sdn. Bhd.) to deliver to Buyer or Buyer
Affiliate any stock certificates (or other appropriate instruments
of transfer) that are not delivered to the Buyer or Buyer Affiliate
at the Closing and secure the release of any Encumbrances on the
common stock (or other equity interests) of any Acquired
Subsidiaries that are not released as of the
Closing.”
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21.
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Section 8.2(a) of the Asset Purchase
Agreement is amended and restated as follows:
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“each of the Selling Entities
shall have performed and complied in all material respects with the
covenants contained in this Agreement which are required to be
performed and complied with by it on or prior to the Closing Date
(it being understood that the transfer of an aggregate amount of
approximately US$293,000 from Hong Kong and Malaysia to one or more
of the Selling Entities prior to April 28, 2009 shall not be
taken into account in determining whether this condition has been
satisfied);”
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22.
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Section 8.2(b) of the Asset Purchase
Agreement is amended and restated as follows:
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“each of the Selling
Entities’ representations and warranties which are set forth
in this Agreement (except for those contained in Sections 5.1 and
5.10) shall be true and correct in all respects as of the date of
this Agreement and as of the date the Sale Order is entered by the
Bankruptcy Court (the “ Sale Order Date ’) as
though made at and as of the Sale Order Date (except to the extent
that any such representation or warranty speaks as of a particular
date in which case such representation or warranty shall be true
and correct in all respects as of such date); provided,
however , that in determining the accuracy of such
representations and warranties for purposes of this
Section 8.2(b): (i) all materiality qualifications that
are contained in such representations and warranties and that limit
the scope of such representations and warranties shall be
disregarded; and (ii) any inaccuracies in such representations
and warranties shall be disregarded if the circumstances giving
rise to all such inaccuracies (considered collectively) do not
constitute, and would not reasonably be expected to have or result
in, a Material Adverse Effect;”
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23.
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Section 8.2(g) of the Asset Purchase
Agreement is amended and restated as follows:
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“between the date of this
Agreement and the Sale Order Date, there shall have not have
occurred any Material Adverse Effect, and no events, developments
or effects shall have occurred (and no circumstances or conditions
shall have come into existence) between the date of this Agreement
and the Sale Order Date that would reasonably be expected to have
or result in a Material Adverse Effect.”
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24.
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Any action that
may be taken by the Seller or any of the Selling Entities pursuant
to Section 9.1(a), Section 9.3 or Section 10.1 of
the Asset Purchase Agreement shall not be taken without the consent
of the Agent, not to be unreasonably withheld, conditioned or
delayed.
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25.
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The language in
the second bullet point of Annex A to the Asset Purchase Agreement
that reads “by no later than the date of the entry of the
Sale Order (as defined in the Agreement) (the “Sale Order
Date”)” shall be replaced with the following: “by
no later than the later of the entry of the Sale Order (as defined
in the Agreement) or May 1, 2009 (such later date being
referred to as the “Sale Order
Date”)”.
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26.
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All other
provisions of the Asse
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