INVESTOR AGREEMENT Between HARRIS CORPORATION and HARRIS STRATEX NETWORKS, INC.Investors Rights Agreement |
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Table of Contents
INVESTOR AGREEMENT
Between
HARRIS CORPORATION
and
HARRIS STRATEX NETWORKS, INC.
Dated: January 26, 2007
E-1
Table of Contents
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ARTICLE I |
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Definitions and Construction |
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1.1. |
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Certain Definitions |
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1.2. |
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Additional Definitions |
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1.3. |
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Terms Generally |
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ARTICLE II |
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Scope of Agreement |
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2.1. |
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Scope of Agreement |
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2.2. |
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Governing Instruments and
Class B Common Stock |
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ARTICLE III |
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Boards of Directors |
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3.1. |
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Role and Composition of the
Board |
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3.2. |
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Removal and Vacancies |
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E-8 |
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3.3. |
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Committees |
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E-9 |
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3.4. |
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Voting Requirements |
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E-9 |
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3.5. |
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Determination of Total
Voting Power |
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ARTICLE IV |
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Covenants |
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4.1. |
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Standstill Provisions |
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4.2. |
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Access to Information,
Audit and Inspection |
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4.3. |
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Related Party Transactions |
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E-10 |
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4.4. |
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Freedom of Action |
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4.5. |
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Preemptive Right |
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4.6. |
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Covenants Relating to
Financial, Accounting and Disclosure Matters |
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4.7. |
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Option Exercise |
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E-16 |
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ARTICLE V |
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Miscellaneous |
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5.1. |
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Termination |
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5.2. |
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Governing Law and Venue;
Waiver Of Jury Trial |
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5.3. |
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Severability |
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5.4. |
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Amendment; Waiver |
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5.5. |
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Assignment |
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5.6. |
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No Third-Party
Beneficiaries |
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5.7. |
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Notices |
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5.8. |
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Entire Agreement |
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5.9. |
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No Challenges; Specific
Performance |
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5.10. |
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Headings |
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5.11. |
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Counterparts |
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5.12. |
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Relationship of Parties |
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E-19 |
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5.13. |
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Construction |
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E-19 |
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5.14. |
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Effectiveness |
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E-19 |
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5.15. |
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Enforcement by the Company |
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E-19 |
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Exhibit A— |
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Amended and Restated
Certificate of Incorporation |
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A-1 |
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Exhibit B— |
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Amended and Restated Bylaws |
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B-1 |
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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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“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:
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Defined Term: |






