AMENDMENT TO ASSET PURCHASE
AGREEMENT
This AMENDMENT TO
ASSET PURCHASE AGREEMENT, dated as of May 29, 2009 (this
“ Amendment ”), is made by and among Harris
Corporation, a Delaware corporation, Tyco Electronics Group S.A., a
company organized under the laws of Luxembourg, and, solely for the
limited purposes of Section 5 with respect to its obligations
under Section 11.09 of the Purchase Agreement (as defined
below), Tyco Electronics Ltd., a corporation incorporated under the
laws of Bermuda.
WHEREAS, the
parties hereto are parties to an Asset Purchase Agreement, dated as
of April 16, 2009 (the “ Purchase Agreement
”); and
WHEREAS, the
parties hereto desire to amend the Purchase Agreement as set forth
herein.
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and
agreements herein contained and other good and valuable
consideration, the receipt, adequacy and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows
(all capitalized terms used but not defined herein shall have the
meanings specified in the Purchase Agreement):
SECTION 1.
Amendments To The Purchase Agreement.
(a) The
definition of “ Assumed Intercompany Payables ”
in Section 1.01(a) of the Purchase Agreement is hereby amended
and restated in its entirety to read as follows:
“
Assumed Intercompany Payables ” means the trade
payables incurred in the ordinary course of business due and
payable by the Business to Seller and its Affiliates, but only to
the extent included in the calculation of Final Closing Working
Capital and excluding the payables due and payable by M/A-COM or
M/A-COM Canada to the Business in Ireland.”
(b) The
definition of “ Assumed Intercompany Receivables
” in Section 1.01(a) of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
“
Assumed Intercompany Receivables ” means the trade
receivables incurred in the ordinary course of business due and
owing to the Business from Seller and its Affiliates, but only to
the extent included in the calculation of Final Closing Working
Capital and excluding the receivables due and owing to the Business
in Ireland from M/A-COM or M/A-COM Canada.”
(c) Section 1.01(a)
of the Purchase Agreement is hereby amended to add the following
definitions:
“
Applicable Employee ” means the Business Employees
located in the Delayed Employee Transfer Countries, which Business
Employees are listed on a list to be delivered by Seller to Buyer
no later than two Business Days after the Closing Date.
“
Delayed Employee Transfer Countries ” means those
countries in which Business Employees are located other than the
United States, Ireland, Canada, Poland and the United
Kingdom.
“
Delayed Employee Transfer Date ” means each date on
which a Delayed Employee Transfer occurs.
“
Delayed Transfer ” means each transfer of Delayed
Transfer Purchased Assets and Delayed Transfer Assumed Liabilities
pursuant to Section 2.12.
“
Delayed Transfer Assumed Liabilities ” means those
Assumed Liabilities relating primarily to the Business in the
Delayed Transfer Country.
“
Delayed Transfer Country ” means Brazil.
“
Delayed Transfer Purchased Assets ” means those
Purchased Assets relating primarily to the Business in the Delayed
Transfer Country.
(d) The
following rows are hereby added in the appropriate alphabetical
order to the table at the end of Section 1.01(a) of the
Purchase Agreement:
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Delayed Employee Transfer
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2.11
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Delayed Transfer Purchase Price
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2.12
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(c)
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(e) The first
paragraph of Section 2.01 of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
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“Section 2.01.
Purchase and Sale . Except with respect to the Delayed
Transfer Purchased Assets, which are addressed in
Section 2.12, upon the terms and subject to the conditions of
this Agreement, Buyer agrees to purchase (or, subject to
Section 13.05, cause Buyer’s designated Affiliate(s) to
purchase) from Seller and its Affiliates and Seller agrees to sell,
convey, transfer, assign and deliver, or cause to be sold,
conveyed, transferred, assigned and delivered, to Buyer (or,
subject to Section 13.05, Buyer’s designated
Affiliate(s)) at the Closing, free and clear of all Liens, other
than Permitted Liens, all of Seller’s and its
Affiliates’ right, title and interest in, to and under the
following assets, properties and rights of Seller and its
Affiliates (the “ Purchased Assets
”):”
(f) The first
paragraph of Section 2.03 of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
“Section 2.03.
Assumed Liabilities . Except with respect to the Delayed
Transfer Assumed Liabilities, which are addressed in
Section 2.12, upon the terms and subject to the conditions of
this Agreement, Buyer agrees, effective at the time of the Closing,
to assume (or to cause to be assumed) all Liabilities to the extent
relating primarily to the ownership, use or operation of the
Purchased Assets or the Business, whether arising prior to, at or
after the Closing, other than the Excluded Liabilities (all of the
foregoing Liabilities to be so assumed being herein collectively
called the “ Assumed Liabilities ”);
provided that notwithstanding the transactions contemplated
hereby or any provision of this Agreement, all assets and
liabilities of the Subsidiary shall remain the assets and
liabilities of the Subsidiary. Without limitation of the foregoing,
Assumed Liabilities shall include the following:”
(g) Section 2.04(g)
of the Purchase Agreement is hereby amended and restated in its
entirety to read as follows:
“(g) all
Liabilities arising under the Excluded Plans, including any defined
benefit or defined contribution pension obligation (regardless of
whether such obligation is contained in an employment agreement,
collective bargaining agreement, national, industry or company
agreement, works council agreement or otherwise), other than any
such pension obligation that is solely governmental and, as an
initial matter, was not voluntary in nature and other than the
Canadian Registered Retirement Savings Plans and the Irish Benefit
Plan; any non-qualified deferred compensation arrangement; and any
post-retirement health and post-retirement life insurance plans
(other than the Com-Net Retirement Medical Plan); provided,
however , for the avoidance of doubt, that this
Section 2.04(g) does not include Liabilities for items to the
extent that they are accrued in the Closing Working Capital or
constitute vacation or paid time off;”
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(h) Section 2.05(a)
of the Purchase Agreement is hereby amended and restated in its
entirety to read as follows:
“(a)
Notwithstanding anything in this Agreement to the contrary, this
Agreement shall not constitute an agreement to assign any Purchased
Asset or any claim or right or any benefit arising thereunder or
resulting therefrom if such assignment, with or without the
consent, approval or waiver of, or notice to, a third party
thereto, would constitute a breach or other contravention of such
Purchased Asset or violation of any Applicable Law or in any way
adversely affect the rights of Buyer (or its designated
Affiliate(s)) or Seller (or an Affiliate of Seller) thereunder
unless and until any required consent, approval or waiver is
obtained. Seller and Buyer shall use their reasonable best efforts
(including the dedication of resources thereto, but without any
obligation to expend money, commence litigation or offer or grant
any financial or other accommodation to any third party) to obtain
the consent, approval or waiver of, or provide the required notice
to, such third parties to or of the assignment to Buyer (or,
subject to Section 13.05, its designated Affiliate(s)) of any
Purchased Asset or any claim or right or any benefit arising
thereunder or otherwise transfer the rights and benefits of any
Non-assignable Asset (as defined below) to Buyer or, subject to
Section 13.05, its designated Affiliate, including, in the
case of any non-transferable Permits, to cause the applicable
Governmental Authority to issue a new Permit to Buyer or its
Affiliate in place of such non-transferable Permit and with respect
to prime Government Contracts, to obtain all necessary approval and
consent of the applicable U.S. federal Governmental Authority to
novate such prime Government Contracts in accordance with FAR
Subpart 42.12. If such consent, approval or waiver is not obtained,
or such notice is not made, or if an attempted assignment thereof
would be ineffective or would adversely affect the rights of Seller
or any of its Affiliates thereunder so that Buyer (or, subject to
Section 13.05, its designated Affiliate(s)) would not in fact
receive all such rights, or if such asset is not transferable under
Applicable Law with or without such consent, approval, waiver or
notice (any assets so described, the “ Non-assignable
Assets ”), Seller and Buyer agree that Buyer will receive
the benefits and perform the obligations under such Non-assignable
Asset, and Seller and Buyer will use their commercially reasonable
efforts (but without any obligation to expend money, commence
litigation or offer or grant any financial or other accommodation
to any third party) to enter into a mutually agreeable arrangement
under which Buyer would assume the obligations and Seller would
provide to Buyer (or, subject to Section 13.05, its designated
Affiliate(s)) the benefits of any Non-assignable Asset, including
sub-contracting, sub-licensing, or sub-leasing to Buyer (or,
subject to Section 13.05, its designated Affiliate(s)), and
with respect to the prime Government Contracts, entering into and
taking commercially reasonable efforts to obtain any required
approvals or consents of any U.S.
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federal
Governmental Authority to the Subcontract prior to the Closing
Date), or under which Seller would enforce for the benefit of Buyer
(or, subject to Section 13.05, its designated Affiliate(s)),
with Buyer (or, subject to Section 13.05, its designated
Affiliate(s)) assuming Seller’s (or such Affiliate’s)
obligations under such Non-assignable Asset, any and all rights of
Seller or such Affiliate against a third party thereto. In
connection with any such arrangement, Buyer shall reimburse Seller
and its Affiliates for any reasonable and documented out-of-pocket
costs and expenses actually incurred by Seller or its Affiliates in
connection with the performance of any mutually agreeable
arrangement or that otherwise would have been incurred by Buyer or
its Affiliates had such Non-assignable Asset been assigned,
transferred or conveyed as contemplated by this Agreement,
including any Liability arising out of Buyer’s failure to
perform thereunder (such costs and expenses, the “
Alternative Arrangement Costs ”). Prior to the amount
of the deductible described in clause (B) of
Section 11.02(a) being exceeded (whether pursuant to
reimbursement under this sentence or pursuant to any other
provision of this Agreement or a combination of the foregoing),
Buyer will promptly reimburse Seller for all out-of pocket costs
and expenses actually incurred by Seller or its Affiliates (other
than Alternative Arrangement Costs) relating to or arising from the
failure to obtain a consent, approval or waiver for any
Non-assignable Assets (such costs and expenses, the “
Other Consent Costs ”) and any such reimbursement
shall be applied toward such deductible. After the amount of such
deductible has been exceeded, Buyer will promptly reimburse Seller
for 50% of Other Consent Costs. Seller will promptly pay to Buyer
(or, subject to Section 13.05, its designated Affiliate(s))
when received all monies received by Seller or an Affiliate of
Seller under any Purchased Asset or any claim or right or any
benefit arising thereunder, except to the extent the same
represents an Excluded Asset.”
(i) Section 2.07(b)
of the Purchase Agreement is hereby amended and restated in its
entirety to read as follows:
“(b) Seller
shall deliver or cause its Affiliates to deliver, as applicable, to
Buyer such deeds, bills of sale, endorsements, assignments, duly
endorsed certificates, stock powers and other good and sufficient
instruments of conveyance and assignment as reasonably necessary or
appropriate to vest in Buyer (or, subject to Section 13.05,
its designated Affiliate) all right, title and interest in, to and
under the Purchased Assets other than the Irish Purchased Assets,
which are addressed in Section 2.10, and the Delayed Transfer
Purchased Assets, which are addressed in
Section 2.12.”
(j) The
following section is hereby added as Section 2.11 of the
Purchase Agreement:
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“Section 2.11.
Delayed Employee Transfers . Promptly after the Closing
Date, but in no event later than the six (6) month anniversary
of the Closing Date, Buyer and Seller will or will cause their
Affiliates to transfer the Applicable Employees in each Delayed
Employee Transfer Country (each such transfer, a “ Delayed
Employee Transfer ”) pursuant to Section 9.04A.
Unless otherwise agreed in writing (or unless Buyer has not given
written notice prior to the six (6) month anniversary of the
Closing Date, in which case the Delayed Employee Transfer will take
place on such anniversary), Buyer shall give Seller at least thirty
(30) days’ prior written notice of any proposed Delayed
Employee Transfer. Notwithstanding any provision in the Purchase
Agreement or the Disclosure Schedule to the contrary, Buyer and
Seller agree that the Applicable Employees will remain employed by
Seller or its Affiliates, as the case may be, until the applicable
Delayed Employee Transfer Date or such earlier date when the
Applicable Employee voluntarily shall terminate his or her
employment. Buyer and Seller agree that the Applicable
Employees’ employment by Seller and its Affiliates subsequent
to the Closing Date shall be pursuant to substantially the same
terms and conditions, including substantially the same compensation
and benefits, as in effect with respect to the Applicable Employees
immediately prior to the Closing Date, except in such cases as
Seller or its Affiliates are required to change such terms or
conditions under Applicable Law or make changes to such terms and
conditions for employees generally; provided , that, if
possible, Seller and its Affiliates will avoid making any such
changes and, provided, further , that if any such changes
are made and as a result thereof Buyer or its Affiliates are
required to modify their benefit plans or other employee benefits
programs or policies in order to comply with Applicable Law, Seller
agrees, at Buyer’s request, to extend the transfer date
provided in this Section 2.11 by thirty (30) days with
respect to the affected Applicable Employees. Notwithstanding the
foregoing, Buyer and Seller agree that subsequent to the Closing
Date, the Applicable Employees shall not be granted any new awards
under any stock option or other equity-based compensation plan of
Seller or its Affiliates. Notwithstanding anything to the contrary
contained herein, the Delayed Employee Transfers are not required
to occur on the same date for all of the Delayed Employee Transfer
Countries.
(k) The
following section is hereby added as Section 2.12 of the
Purchase Agreement:
“Section 2.12.
Delayed Transfers . (a) Promptly after the Closing
Date, but in no event later than the six (6) month anniversary
of the Closing Date, (i) Buyer shall purchase (or, subject to
Section 13.05, cause Buyer’s designated Affiliate(s) to
purchase) from Seller and Seller shall sell, convey, transfer,
assign and deliver, or cause to be sold, conveyed,
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transferred,
assigned and delivered to Buyer (or, subject to Section 13.05,
Buyer’s des
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