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INVESTOR AGREEMENT Between HARRIS CORPORATION and HARRIS STRATEX NETWORKS, INC.

Investors Rights Agreement

INVESTOR AGREEMENT 

Between 

HARRIS CORPORATION 

and 

HARRIS STRATEX NETWORKS, INC. 

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HARRIS CORPORATION | HARRIS STRATEX NETWORKS, INC.

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Title: INVESTOR AGREEMENT Between HARRIS CORPORATION and HARRIS STRATEX NETWORKS, INC.
Governing Law: Delaware     Date: 1/2/2007
Industry: COMEQP     Law Firm: Sullivan & Cromwell LLP; Bingham McCutchen LLP    

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EX-10.1 Investor Agreement
Table of Contents

EXHIBIT 10.1

 

 

INVESTOR AGREEMENT

Between

HARRIS CORPORATION

and

HARRIS STRATEX NETWORKS, INC.

Dated: January 26, 2007

 

 

E-1


Table of Contents

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

ARTICLE I

Definitions and Construction

 

1.1.

 

 

Certain Definitions

 

 

E-4

 

 

1.2.

 

 

Additional Definitions

 

 

E-6

 

 

1.3.

 

 

Terms Generally

 

 

E-6

 

 

ARTICLE II

Scope of Agreement

 

2.1.

 

 

Scope of Agreement

 

 

E-7

 

 

2.2.

 

 

Governing Instruments and Class B Common Stock

 

 

E-7

 

 

ARTICLE III

Boards of Directors

 

3.1.

 

 

Role and Composition of the Board

 

 

E-7

 

 

3.2.

 

 

Removal and Vacancies

 

 

E-8

 

 

3.3.

 

 

Committees

 

 

E-9

 

 

3.4.

 

 

Voting Requirements

 

 

E-9

 

 

3.5.

 

 

Determination of Total Voting Power

 

 

E-9

 

 

ARTICLE IV

Covenants

 

4.1.

 

 

Standstill Provisions

 

 

E-9

 

 

4.2.

 

 

Access to Information, Audit and Inspection

 

 

E-9

 

 

4.3.

 

 

Related Party Transactions

 

 

E-10

 

 

4.4.

 

 

Freedom of Action

 

 

E-10

 

 

4.5.

 

 

Preemptive Right

 

 

E-11

 

 

4.6.

 

 

Covenants Relating to Financial, Accounting and Disclosure Matters

 

 

E-12

 

 

4.7.

 

 

Option Exercise

 

 

E-16

 

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Table of Contents

 

 

 

 

 

 

 

 

 

 

ARTICLE V

Miscellaneous

 

5.1.

 

 

Termination

 

 

E-16

 

 

5.2.

 

 

Governing Law and Venue; Waiver Of Jury Trial

 

 

E-16

 

 

5.3.

 

 

Severability

 

 

E-17

 

 

5.4.

 

 

Amendment; Waiver

 

 

E-17

 

 

5.5.

 

 

Assignment

 

 

E-17

 

 

5.6.

 

 

No Third-Party Beneficiaries

 

 

E-18

 

 

5.7.

 

 

Notices

 

 

E-18

 

 

5.8.

 

 

Entire Agreement

 

 

E-19

 

 

5.9.

 

 

No Challenges; Specific Performance

 

 

E-19

 

 

5.10.

 

 

Headings

 

 

E-19

 

 

5.11.

 

 

Counterparts

 

 

E-19

 

 

5.12.

 

 

Relationship of Parties

 

 

E-19

 

 

5.13.

 

 

Construction

 

 

E-19

 

 

5.14.

 

 

Effectiveness

 

 

E-19

 

 

5.15.

 

 

Enforcement by the Company

 

 

E-19

 

 

Exhibit A—

 

 

Amended and Restated Certificate of Incorporation

 

 

A-1

 

 

Exhibit B—

 

 

Amended and Restated Bylaws

 

 

B-1

 

E-3


Table of Contents

INVESTOR AGREEMENT

      INVESTOR AGREEMENT (the “Agreement”), dated as of January 26, 2007, between HARRIS CORPORATION, a Delaware corporation (“Harris”), and HARRIS STRATEX NETWORKS, INC., a Delaware corporation (the “Company”).

      WHEREAS, Harris, the Company, and Stratex Networks, Inc., a Delaware corporation (“Stratex”), and Stratex Merger Corp., a Delaware Corporation and wholly owned subsidiary of the Company have entered into an Amended and Restated Formation, Contribution and Merger Agreement, dated as of December 18, 2006 as amended by that certain letter agreement, dated January 26, 2007 (the “Formation Agreement”), among the parties thereto pursuant to which the Company was formed to acquire Stratex pursuant to the Merger and to receive the Contributed Assets from Harris in the Contribution Transaction, in each case on the terms and subject to the conditions set forth in the Formation Agreement; and

      WHEREAS, Harris and Stratex would not have entered into the Formation Agreement without the undertakings contained in this Agreement and the execution and delivery of this Agreement is a condition to closing under the Formation Agreement.

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants in the Agreements the parties agree as follows:

ARTICLE I

Definitions and Construction

      1.1.     Certain Definitions. All capitalized terms used but not defined in this Agreement shall have the meanings assigned to them in the Formation Agreement. In addition, the following terms shall have the meanings specified below:

      “Affiliate” shall have the meaning assigned to such term by Rule 405 under the Securities Act; provided, however, that neither the Company nor any of its Subsidiaries shall be deemed to be an Affiliate of Harris or any of its other Subsidiaries.

      “Agreements” means, collectively, the Formation Agreement, the Ancillary Agreements attached thereto as exhibits and any other agreements provided or contemplated by any of the foregoing.

      “Arm’s Length Terms” means, with respect to any transaction, terms and conditions for such transaction that are no less favorable in any material respect to the Company and its Subsidiaries, taken as a whole, than those which could have been obtained in an arm’s length negotiation between informed and willing unrelated parties under no compulsion to act taking into account all the facts and circumstances then prevailing; provided, however, that notwithstanding the foregoing any terms and conditions of a transaction approved by a majority of the Class A Directors shall be deemed to be Arm’s Length Terms.

      “Audit Independent Director” means any Director who satisfies the requirements of Rule 4350(d)(2)(A) of the NASDAQ Rules with respect to the Company.

      A Person shall be deemed the “beneficial owner” of, and shall be deemed to “beneficially own”, any securities which such Person or any of its Affiliates would be deemed to “beneficially own” within the meaning of Rule 13d-3 under the Exchange Act if the references to “within 60 days” in Rule 13d-3(d)(1)(i) were omitted.

      “Board” means the board of directors of the Company.

      “Business Day” means any day other than a Saturday, a Sunday or a day on which banks in The City of New York are authorized or obligated by Law or executive order to close.

      “Class A Common Stock” means the Class A Common Stock, par value $0.01, of the Company.

      “Class A Director” means any Director other than a Class B Director.

      “Class B Common Stock” means the Class B Common Stock, par value $0.01, of the Company.

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Table of Contents

      “Class B Director” means any of the Initial Harris Directors, any Director elected by a separate class vote of the holders of the Class B Common Stock and any Director appointed to replace or fill any vacancy created by the removal, resignation, death or incapacity of any Class B Director.

      “Closing Date” means the date on which the Closing occurred under the Formation Agreement.

      “Common Stock” means, collectively, the Class A Common Stock and the Class B Common Stock.

      “Director” means any director who is a member of the Board.

      “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

      “Fair Market Value” means, with respect to any transaction, the fair market value of the total consideration paid or payable for goods or services pursuant to such transaction.

      “Governing Instruments” means, collectively, the Amended and Restated Certificate of Incorporation and Amended and Restated By-Laws of the Company attached hereto as Exhibit A and Exhibit B, respectively, as they may be amended from time to time.

      “Government Entity” means any domestic or foreign governmental, regulatory or administrative authority, agency, instrumentality, commission, body, court or other entity, whether legislative, executive, judicial or otherwise, and any arbitration panel, arbitrator or other entity with authority to resolve any dispute.

      “Initial Directors” means, collectively, the Initial Harris Directors and Initial Stratex Directors.

      “Initial Harris Directors” means Guy M. Campbell, Eric C. Evans, Howard L. Lance, Dr. Mohsen Sohi and Dr. James C. Stoffel.

      “Initial Stratex Directors” means William A. Hasler, Clifford H. Higgerson, Charles D. Kissner, and Edward F. Thompson.

      “Law” means any federal, state, local or foreign law, statute, ordinance, rule, regulation, judgment, order, injunction, decree, arbitration award, agency requirement, license or permit of any Government Entity.

      “Litigation” means any claim, suit, action, arbitration, inquiry, investigation or other proceeding of any nature (whether criminal, civil, legislative, administrative, regulatory, prosecutorial or otherwise) by or before any arbitrator or Government Entity.

      “NASDAQ Rules” means the rules promulgated by The Nasdaq Stock Market, Inc. which apply to issuers whose common stock is listed on the Nasdaq Global Market

      “Nominee” means, with respect to any Person, any nominee, custodian or other Person who holds shares of Common Stock for such Person without investment discretion.

      “Person” means any individual, corporation (including not-for-profit), general or limited partnership, limited liability company, joint venture, estate, trust, association, organization, Government Entity or other entity of any kind or nature.

      “Securities Act” shall mean the Securities Act of 1933, as amended.

      “Subsidiary” means, with respect to any Person, (i) any corporation more than 50% of the outstanding Voting Power of which is owned, directly or indirectly, by such Person, any of its other Subsidiaries or any combination thereof or (ii) any Person other than a corporation in which such Person, any of its other Subsidiaries or any combination thereof has, directly or indirectly, majority economic ownership or the power to direct or cause the direction of the policies, management and affairs thereof; provided, however, that notwithstanding the foregoing neither the Company nor any of its Subsidiaries shall be deemed to be a Subsidiary of Harris or any of its other Subsidiaries for purposes of this Agreement.

      “Transfer” means to sell, transfer or assign.

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Table of Contents

      “Total Voting Power” means, at any time, the total number of votes then entitled to be cast generally in the election of Class A Directors by all holders of Voting Securities (including the holders of Class B Common Stock).

      “Voting Securities” means, at any time, all classes of capital stock or other securities of the Company then outstanding and entitled to vote generally in the election of the Class A Directors.

      1.2.     Additional Definitions. The following terms are defined in the Sections indicated:

 

 

 

Defined Term:

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