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<PAGE>
Exhibit 2.4
Execution Copy
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MEMBERSHIP UNIT PURCHASE AGREEMENT
dated as of May 17, 2007
among
INVERNESS MEDICAL INNOVATIONS, INC.,
PROCTER & GAMBLE RHD, INC.
and
US CD LLC
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<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
ARTICLE 1 PURCHASE AND
SALE.............................................. 2
Section 1.1 Purchase and
Sale..................................... 2
Section 1.2 Purchase
Price........................................ 2
ARTICLE 2
CLOSING........................................................
2
Section 2.1
Closing............................................... 2
Section 2.2 Closing
Deliveries.................................... 2
ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF
IMA.......................... 3
Section 3.1 Organization and
Existence............................ 3
Section 3.2 Power and Authority; Binding
Agreement................ 3
Section 3.3
Noncontravention...................................... 3
Section 3.4 Compliance with
Laws.................................. 4
Section 3.5 Purchased
Units....................................... 4
Section 3.6 Securities Law
Compliance............................. 5
Section 3.7 Legal
Proceedings..................................... 5
Section 3.8 Certain Business
Practices............................ 5
Section 3.9 Brokers'
Fees......................................... 5
ARTICLE 4 REPRESENTATION AND WARRANTY OF
PGUS............................ 5
Section 4.1 Capitalization of the
Company......................... 5
Section 4.2 Purchase for
Investment............................... 6
ARTICLE 5
COVENANTS......................................................
6
Section 5.1
Filings............................................... 6
Section 5.2 Commercially Reasonable
Efforts....................... 6
Section 5.3 Public
Announcements.................................. 6
Section 5.4 Further
Assurances.................................... 6
Section 5.5
Expenses.............................................. 7
Section 5.6
Confidentiality....................................... 7
ARTICLE 6 TAX
MATTERS.................................................... 8
Section 6.1
Cooperation........................................... 8
Section 6.2 Transfer
Taxes........................................ 8
Section 6.3 Tax
Payments.......................................... 8
ARTICLE 7 CONDITIONS TO
CLOSING.......................................... 9
Section 7.1 Conditions to Each Party's
Obligation................. 9
Section 7.2 Conditions to PGUS's
Obligations...................... 10
Section 7.3 Conditions to IMA's
Obligation........................ 10
ARTICLE 8
INDEMNIFICATION................................................
11
Section 8.1 Indemnification of
PGUS............................... 11
Section 8.2 Indemnification of
IMA................................ 12
Section 8.3 Indemnification
Claims................................ 12
</TABLE>
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<PAGE>
<TABLE>
<S> <C>
Section 8.4
Survival.............................................. 14
Section 8.5 Sole and Exclusive
Remedy............................. 14
ARTICLE 9
TERMINATION....................................................
14
Section 9.1
Termination........................................... 14
Section 9.2 Effect of
Termination................................. 15
ARTICLE 10 GENERAL
PROVISIONS............................................ 15
Section 10.1
Notices............................................... 15
Section 10.2
Definitions........................................... 17
Section 10.3 Descriptive Headings; Certain
Interpretations......... 21
Section 10.4
Assignment............................................ 21
Section 10.5 Specific
Enforcement.................................. 21
Section 10.6 Entire
Agreement...................................... 21
Section 10.7 No Third-Party
Beneficiaries.......................... 21
Section 10.8
Counterparts.......................................... 21
Section 10.9 Governing
Law......................................... 22
Section 10.10
Arbitration........................................... 22
Section 10.11
Severability.......................................... 23
Section 10.12
Amendment............................................. 23
Section 10.13 Extension;
Waiver..................................... 23
</TABLE>
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<PAGE>
INDEX OF DEFINED TERMS
<TABLE>
<S> <C>
--A--
Affiliate..................................................................
17
Agreement..................................................................
1
Arbitration
Request........................................................
22
--B--
Business
Day...............................................................
17
--C--
CD
Business................................................................
1
Certificate of
Formation................................................... 1
Claim
Notice...............................................................
12
Closing....................................................................
2
Closing
Date...............................................................
2
Code.......................................................................
17
Company....................................................................
1
Confidential
Information...................................................
7
Constitutive
Documents.....................................................
17
Contingent
Obligation......................................................
17
Contract...................................................................
18
Contributed
Assets.........................................................
1
Contribution
Agreement.....................................................
1
--F--
Financial
Investor.........................................................
18
--G--
Governmental
Entity........................................................
18
--I--
IMA........................................................................
1
IMA Indemnified
Party...................................................... 12
IMA Indemnity
Threshold....................................................
11
IMS........................................................................
11
Indebtedness...............................................................
18
Indemnified
Party..........................................................
18
Indemnifying
Party.........................................................
18
Issued Membership
Units.................................................... 5
--J--
Judgment...................................................................
4
--K--
Knowledge..................................................................
18
--L--
Law........................................................................
4
Legal
Proceeding...........................................................
19
Lien.......................................................................
3
Limited Liability Company
Agreement........................................ 2
Losses.....................................................................
19
--M--
Material Adverse
Effect.................................................... 19
Members....................................................................
19
Membership
Interest........................................................
19
Membership
Units...........................................................
19
--O--
Option
Agreement...........................................................
19
Outside
Date...............................................................
14
--P--
Percentage
Interest........................................................
19
Person.....................................................................
20
PGIO.......................................................................
11
PGUS.......................................................................
1
PGUS Indemnified
Party..................................................... 11
Purchase
Price.............................................................
2
Purchased
Units............................................................
1
--R--
Representatives............................................................
20
--S--
Securities
Act.............................................................
5
Strategic
Investor.........................................................
20
Subsidiary.................................................................
20
Swiss
JV...................................................................
20
--T--
Tax........................................................................
20
Tax
Return.................................................................
20
Third Party
Claim..........................................................
20
Transaction
Agreements.....................................................
20
Transfer
Taxes.............................................................
8
--U--
UK
Newco...................................................................
20
Unipath....................................................................
11
Unipath Purchase
Agreement................................................. 11
US
Contribution............................................................
1
US
Purchase................................................................
1
</TABLE>
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<PAGE>
MEMBERSHIP UNIT PURCHASE AGREEMENT, dated as of May [17], 2007
(this
"Agreement"), among Inverness Medical Innovations, Inc., a
Delaware
corporation ("IMA"), Procter & Gamble RHD, Inc., an Ohio
corporation
("PGUS"), and US CD LLC, a Delaware limited liability company
(the
"Company")
INTRODUCTION
PGUS formed the Company pursuant to the Delaware Limited
Liability
Company Act, 6 Del C. Section 18-101 et seq., by filing the
certificate of
formation (the "Certificate of Formation") of the Company with
the Office of the
Secretary of State of the State of Delaware on December 22,
2006.
PGUS adopted the Limited Liability Company Agreement, effective
as of
December 22, 2006, of the Company.
Prior to the date hereof, PGUS contributed $100 in cash to the
Company
in exchange for 100 Membership Units (representing, upon such
contribution, a
100% Membership Interest).
IMA and certain of its Subsidiaries have restructured their
businesses.
IMA and certain of its Subsidiaries are in the business of
human
diagnostics and/or monitoring including developing,
manufacturing, marketing,
selling and distributing human diagnostics and monitoring
products for sale and
distribution through over-the-counter channels, including retail
outlets and
emerging channels located in such retail outlets (the "CD
Business").
Concurrently with the execution of this Agreement, IMA, PGUS and
the
Company are entering into a Contribution Agreement, dated as of
the date hereof
(the "Contribution Agreement"), pursuant to which IMA, subject
to the exceptions
set forth in the Contribution Agreement, is contributing, and is
causing certain
of its Subsidiaries to contribute, to the Company certain assets
of the CD
Business in the United States as described in the Contribution
Agreement (the
"Contributed Assets"), and the Company will assume certain
liabilities of the CD
Business in the United States, as set forth in the Contribution
Agreement. In
consideration for such contribution (the "US Contribution"), IMA
will receive
61,762,000 Membership Units (representing, upon such
contribution, an
approximately 100% Membership Interest). Such contribution shall
occur
immediately prior to consummation of the US Purchase (as defined
below).
PGUS desires to purchase from IMA and IMA desires to sell to
PGUS, in
each case, subject to the terms and conditions of this
Agreement, 30,880,950
Membership Units (representing an approximately 50% Membership
Interest) (the
"Purchased Units"). Such sale and purchase (the "US Purchase")
shall occur
immediately following the US Contribution.
Immediately following the consummation of the US Contribution
and the
US Purchase, each of PGUS and IMA shall own 30,881,050
Membership Units
(representing exactly a 50% Membership Interest).
<PAGE>
Concurrently with the execution of this Agreement, PGUS, IMA and
the
Company will enter into the Amended and Restated Limited
Liability Company
Agreement of the Company (the "Limited Liability Company
Agreement"), to provide
for, among other things, the admission of IMA as a Member of the
Company and to
establish the respective rights and obligations of PGUS and IMA
with respect to
the Company.
Capitalized terms shall have the meanings assigned to them in
Section
10.2 or as otherwise provided in this Agreement.
In consideration of the foregoing and the respective
representations,
warranties, covenants and agreements set forth herein, the
parties hereto agree
as follows:
ARTICLE 1
PURCHASE AND SALE
Section 1.1 Purchase and Sale. Subject to the terms and
conditions of
this Agreement, at the Closing, IMA shall sell and deliver to
PGUS, and PGUS
shall purchase from IMA, the Purchased Units, free and clear of
any Liens.
Section 1.2 Purchase Price. The purchase price (the "Purchase
Price")
for the Purchased Units shall be cash in the amount of
$30,881,050, payable by
wire transfer of immediately available funds to one or more bank
accounts
designated by IMA in writing on or prior to the date hereof.
ARTICLE 2
CLOSING
Section 2.1 Closing. The closing of the transactions
contemplated by
this Agreement (the "Closing") shall be held at the offices of
Covington &
Burling LLP, 1201 Pennsylvania Avenue, NW, Washington, DC, at
10:00 a.m. on the
date as soon as practicable, and in any event not later than two
Business Days,
following satisfaction of all conditions and taking of all other
actions (other
than those that by their terms are to be satisfied or taken at
the Closing) set
forth in Article 7 (or, to the extent permitted by Law, waived
by the parties
hereto entitled to the benefits thereof), or on such other date,
and at such
other time or place, as PGUS and IMA may mutually agree in
writing. The date on
which the Closing occurs is referred to in this Agreement as the
"Closing Date."
Section 2.2 Closing Deliveries. (a) At the Closing, PGUS shall
deliver
or cause to be delivered:
(i) to IMA, cash in an amount equal to the Purchase Price;
(ii) to IMA and the Company, the Contribution Agreement,
validly
executed by a duly authorized officer of PGUS; and
(iii) to IMA and the Company, this Agreement and each other
Transaction Agreement, validly executed by a duly authorized
officer of
PGUS.
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(b) At the Closing, IMA shall deliver or cause to be
delivered:
(i) to PGUS, a receipt, acknowledging IMA's receipt of the
Purchase
Price, validly executed by a duly authorized officer of IMA;
and
(ii) to PGUS and the Company, this Agreement and each other
Transaction Agreement, validly executed by a duly authorized
officer of
IMA.
(c) At the Closing, the Company shall deliver or cause to be
delivered
to each of PGUS and IMA this Agreement and each other
Transaction Agreement,
validly executed by a duly authorized officer of the
Company.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES OF IMA
IMA represents and warrants to PGUS as follows, as of the date
of this
Agreement and as of the Closing:
Section 3.1 Organization and Existence. IMA is duly organized,
validly
existing and in good standing under the Laws of the State of
Delaware, has all
requisite power and authority to carry on the CD Business as now
being conducted
and is duly qualified or licensed to do business and in good
standing in each
jurisdiction in which the nature of the CD Business or the
ownership, leasing or
operation of its properties makes such qualification or
licensing necessary,
except for those jurisdictions where the failure to be so
qualified or licensed
would not have a Material Adverse Effect. Other than
wholly-owned Subsidiaries,
IMA has no Subsidiaries that conduct the CD Business or own
Contributed Assets
other than Inverness Medical (Shanghai), Co., Ltd.
Section 3.2 Power and Authority; Binding Agreement. IMA has
all
requisite power and authority to execute and deliver this
Agreement, to
consummate the transactions contemplated hereby and to perform
its obligations
hereunder, and has the requisite power and authority to enter
into the
Transaction Agreements and to perform its obligations
thereunder. This Agreement
and each other Transaction Agreement is a valid and binding
obligation of IMA,
enforceable against it in accordance with its terms, except as
the same may be
limited by bankruptcy, insolvency, reorganization, moratorium or
other Laws
affecting the rights of creditors generally and subject to the
rules of law
governing (and all limitations on) specific performance,
injunctive relief and
other equitable remedies. Except as set forth in Section 3.2 of
the Disclosure
Schedule to the Contribution Agreement, no other act, approval
or proceeding on
the part of IMA is required to authorize the execution and
delivery of this
Agreement and the other Transaction Agreements or the
consummation of the
transactions contemplated hereby and thereby.
Section 3.3 Noncontravention. (a) The execution and delivery by
IMA of
this Agreement and the other Transaction Agreements, and the
consummation of the
transactions contemplated hereby and thereby and the compliance
by it with the
provisions hereof and thereof do not result in the creation of
any lien, pledge,
claim, charge, mortgage, encumbrance or other security interest
of any kind,
whether arising by Contract or by operation of Law (a "Lien"),
upon the
Purchased Units. The execution and delivery by IMA of this
Agreement and the
other
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<PAGE>
Transaction Agreements, and the consummation of the transactions
contemplated
hereby and thereby and the compliance by it with the provisions
hereof and
thereof do not (i) conflict with or result in any violation or
default (with or
without notice or lapse of time or both) under, (ii) give rise
to a right of, or
result in, termination or cancellation of, or acceleration of
any obligation
under, (iii) result in a loss of a material benefit under, or
(iv) give rise to
any increased, additional, accelerated or guaranteed rights or
entitlements
under, any provision of (A) IMA's Constitutive Documents, (B)
except as set
forth in Section 3.3(a) of the Disclosure Schedule to the
Contribution
Agreement, any material Contract to which IMA is a party or is
bound, or to
which any Purchased Units are subject, or (C) subject to the
governmental
filings and other matters referred to in Section 3.3(b), any
constitution, act,
statute, law (including common law), ordinance, treaty, rule or
regulation of
any Governmental Entity (a "Law"), or any judgment, order or
decree (a
"Judgment"), in each case applicable to IMA or the Purchased
Units.
(b) No consent, approval, license, permit, order or
authorization of,
registration, declaration or filing with, or notice to, any
Governmental Entity
is required by or with respect to IMA in connection with the
execution and
delivery of this Agreement, the other Transaction Agreements,
the consummation
of the transactions contemplated hereby or thereby or the
compliance by IMA with
the provisions hereof and thereof, except such consents,
approvals, orders,
authorizations, registrations, declarations, filings and
notices, (i) which have
been obtained or made or (ii) the failure of which to be
obtained or made
individually or in the aggregate would not impair in any
material respect the
ability of IMA to perform its obligations under this Agreement
or prevent or
materially impede or delay the consummation of the transactions
contemplated
hereby.
Section 3.4 Compliance with Laws. Except as set forth in Section
3.4
of the Disclosure Schedule to the Contribution Agreement, IMA is
in compliance
in all material respects with all applicable Laws and Judgments.
Except as set
forth in Section 3.4 of the Disclosure Schedule to the
Contribution Agreement,
since January 1, 2004, IMA has not received a written notice
from a Governmental
Entity alleging a possible violation (other than an immaterial
violation) by it
of any applicable Law or Judgment applicable to it or the
Purchased Units.
Section 3.5 Purchased Units. IMA is the lawful owner, of record
and
beneficially, of the Purchased Units and has, and will transfer
to PGUS at the
Closing, good and marketable title to the Purchased Units, free
and clear of all
Liens, and with no restriction on, or agreement relating to, the
voting rights
and the other incidents of record and beneficial ownership
pertaining to the
Purchased Units other than as set forth in the Limited Liability
Company
Agreement. The Purchased Units, when aggregated with the
Membership Units owned
by PGUS immediately prior to the Closing, will provide PGUS with
a 50%
Membership Interest. All of the Purchased Units are duly
authorized, validly
issued and outstanding, fully paid and nonassessable. There are
no rights to
acquire or options, warrants, call agreements, convertible
securities or other
commitments to issue, exchange or acquire, directly or
indirectly, any of the
Purchased Units entered into or granted by IMA except as set
forth in the
Limited Liability Company Agreement or the Option Agreement.
Other than the
Option Agreement and the Limited Liability Company Agreement,
there are no
agreements to which IMA is a party or by which it bound relating
to the
Purchased Units or any other securities or equity interests of
the Company,
whether or not outstanding.
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<PAGE>
Section 3.6 Securities Law Compliance. (a) IMA has not directly
or
indirectly offered any of the Purchased Units for sale, or
solicited any offer
to buy any of the Purchased Units, by means of any general
advertising or any
other form of general solicitation, or in any other manner that
would require
the sale of such Purchased Units to be subject to the
registration requirements
of the Securities Act of 1933, as amended (the "Securities
Act"), or any
applicable state securities or blue sky laws.
(b) IMA is not selling any of the Purchased Units on behalf of
the
Company in connection with the distribution of such Purchased
Units.
(c) IMA confirms that it did not acquire the Purchased Units
with a
view to, or for, the resale in connection with any distribution
thereof within
the meaning of the Securities Act which would not be exempt from
the
registration requirements of the Securities Act.
Section 3.7 Legal Proceedings. Except as disclosed in Section
3.7 of
the Disclosure Schedule to the Contribution Agreement, (a) IMA
is not, or since
January 1, 2004 has not been, a party to, or to its Knowledge
threatened with,
any material Legal Proceeding with respect to or in connection
with the CD
Business or the Purchased Units, (b) to the Knowledge of IMA,
there are no facts
or circumstances that would reasonably be expected to give rise
to any material
Legal Proceeding with respect to or in connection with the CD
Business or the
Purchased Units, and (c) there are no Judgments outstanding
against IMA with
respect to or in connection with the CD Business or the
Purchased Units.
Section 3.8 Certain Business Practices. Neither IMA nor any of
its
directors, officers, agents or employees, has (a) used any funds
for unlawful
contributions, gifts, entertainment or other unlawful expenses
related to
political activity; (b) made any unlawful payment to foreign or
domestic
government officials or employees or to foreign or domestic
political parties or
campaigns or violated any provision of the Foreign Corrupt
Practices Act of 1977
or similar Laws in any other jurisdiction or (c) made any
payment in the nature
of criminal bribery.
Section 3.9 Brokers' Fees. No broker, finder, financial
advisor,
investment banker or other Person is or will be entitled to any
brokerage,
finder's, financial advisor's or other similar fee or commission
in connection
with the transactions contemplated by this Agreement and the
Transaction
Agreements for which PGUS or the Company could be liable.
ARTICLE 4
REPRESENTATION AND WARRANTY OF PGUS
PGUS represents and warrants to IMA (in the case of Section 4.1)
and
to IMA and the Company (in the case of Section 4.2) as follows,
as of the date
of this Agreement and as of the Closing:
Section 4.1 Capitalization of the Company. The Company has
issued
61,762,100 Membership Units (the "Issued Membership Units"), of
which
immediately prior to the Closing, IMA and PGUS own beneficially
and of record
61,762,000 Membership Units and 100 Membership Units,
respectively. The Issued
Membership Units constitute all of the issued and outstanding
securities
representing Membership Interests of the Company.
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<PAGE>
Section 4.2 Purchase for Investment. PGUS is acquiring the
Purchased
Units for its own account for the purpose of investment, it
being understood
that the right to dispose of such Purchased Units shall be
entirely within the
discretion of PGUS. PGUS will refrain from transferring or
otherwise disposing
of any of the Purchased Units, or any interest therein, in such
manner as to
cause the Company or IMA to be in violation of the registration
requirements of
the Securities Act or applicable state securities or blue sky
laws.
ARTICLE 5
COVENANTS
Section 5.1 Filings. Each of the parties hereto agrees to
cooperate
fully with the others in the preparation and filing, whether
before or after the
Closing Date, of all documents and instruments required to be
filed by PGUS, IMA
or the Company in connection with the transactions contemplated
by this
Agreement and the other Transaction Agreements, including any
filings with any
applicable Federal or state securities regulator, applications
for business
certificates, applications for any trade, assumed or fictitious
name
certificates, or any applications for authority to do business,
or any
registrations or assignments of registrations of any patents,
trademarks, trade
names, service marks, copyrights or similar rights.
Section 5.2 Commercially Reasonable Efforts. Upon the terms
and
subject to the conditions set forth in this Agreement, each of
the parties
hereto shall use commercially reasonable efforts to take, or
cause to be taken,
all actions, and to do, or cause to be done, and to assist and
cooperate with
the other parties in doing, all things necessary, proper or
advisable to
consummate and make effective, in the most expeditious manner
practicable, the
transactions contemplated by this Agreement and the other
Transaction
Agreements, including (a) the obtaining of all necessary actions
or nonactions,
waivers, consents and approvals from Governmental Entities and
the making of all
necessary registrations and filings (including filings with
Governmental
Entities, if any) and the taking of all reasonable steps as may
be necessary to
obtain an approval or waiver from, or to avoid an action or
proceeding by, any
Governmental Entity, (b) the obtaining of all necessary
consents, approvals or
waivers from third parties, and (c) the execution and delivery
of any additional
instruments necessary to consummate the transactions
contemplated by this
Agreement and the other Transaction Agreements and to fully
carry out the
purposes of this Agreement and the other Transaction
Agreements.
Section 5.3 Public Announcements. No party to this Agreement
(nor any
agent or Representative thereof) shall make any disclosure or
public
announcement with respect to this Agreement, the other
Transaction Agreements
and the transactions contemplated hereby and thereby without the
written
approval of the other parties; provided, that any party may make
such disclosure
(including in filings with the Securities and Exchange
Commission) or public
announcement if it is advised by counsel that such disclosure or
public
announcement is legally advisable in light of the prior public
disclosure
practice of such party (in which case such party shall use its
reasonable best
efforts to consult with the other parties regarding such
disclosure or public
announcement prior to the making of such disclosure).
Section 5.4 Further Assurances. In case at any time after the
Closing
Date any further action is necessary or desirable to carry out
the purposes of
this Agreement, each of the parties hereto shall take or cause
to be taken all
such necessary action, including the execution
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<PAGE>
and delivery of such further instruments and documents, as may
be reasonably
requested by either party for such purposes or otherwise to
complete or perfect
the transactions contemplated hereby.
Section 5.5 Expenses. Whether or not the Closing occurs, each of
the
parties hereto shall bear its own fees and expenses incurred or
owed in
connection with this Agreement, the other Transaction Agreements
and the
transactions contemplated hereby and thereby and the
negotiations thereof
(including any due diligence or other investigation costs
relating to such
transactions), except that any income tax incurred by IMA in
connection with the
US Purchase shall be borne entirely by IMA.
Section 5.6 Confidentiality. Each party hereto will hold, and
will
cause its Affiliates, Representatives and employees to hold, in
strict
confidence from any Person (other than any such Affiliate,
Representative or
employee with a need to know), the terms of this Agreement and
all documents and
information concerning the other party or any of its Affiliates
furnished to it
by the other party or such other party's Affiliates,
Representatives and
employees in connection with this Agreement and the transactions
contemplated
hereby, including documents and information disclosed prior to
the date hereof
(collectively, "Confidential Information"); provided, that a
party hereto may
disclose, or cause its Affiliates, Representatives and employees
to disclose,
Confidential Information if and to the extent
(a) compelled to disclose by judicial or administrative
process
(including in connection with obtaining the necessary approvals
of this
Agreement, the Transaction Agreements and the transactions
contemplated hereby
and thereby of Governmental Entities) or by other requirements
of Law or, if
advised by legal counsel that disclosure is required, as
requested by a
Governmental Entity having jurisdiction over such party;
(b) disclosed in a Legal Proceeding brought by a party hereto
in
pursuit of its rights or in the exercise of its remedies
hereunder;
(c) disclosed to (i) the managing underwriter or placement agent
for
any sale of the securities of the receiving party, and such
managing
underwriter's or placement agent's Representatives, (ii) the
lead lender,
arranger, representative or agent for any other financing
transaction of the
receiving party, and such lead lender's, arranger's,
representative's or agent's
Representatives, (iii) any Person whose voting securities are
acquired in a
single transaction by the receiving party in such an amount so
as to grant
Control over such Person to the receiving party and such
Person's
Representatives, or (iv) any Financial Investor in the receiving
party, and such
Financial Investor's Representatives; or
(d) following receipt from the disclosing party written consent
to
such disclosure, which consent may not be unreasonably withheld,
disclosed to
any Strategic Investor or potential acquiror of the receiving
party, and the
Representatives of either;
provided, that in the case of any disclosure permitted under
clause (c) or (d)
above, such disclosure shall consist solely of the terms of this
Agreement (and
not any other Confidential Information) and shall in no event
include any
schedules (including the Disclosure Schedule) or exhibits to
this Agreement; and
provided further, that any Person receiving any disclosure
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<PAGE>
pursuant to this Section 5.6 from a party hereto, or any of such
party's
Affiliates, Representatives or employees, must be bound by an
established legal
privilege, or agree in writing, to hold in strict confidence
from any other
Person (including with respect to disclosure permitted under
clauses (c) and
(d), any member of an underwriting or lending syndicate, or any
Person to whom a
portion of such financing is participated or otherwise
transferred in connection
with such sale or financing, or any Affiliate, shareholder or
member of or any
investor in such Person) the Confidential Information so
disclosed.
Notwithstanding anything in this Section 5.6 to the contrary,
Confidential
Information shall not include any such documents or information
that the
receiving party can demonstrate were (A) previously known by the
party receiving
such documents or information, (B) in the public domain (either
prior to or
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