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EXHIBIT 99.2
ACTIVANT SOLUTIONS INC.
804 Las Cimas Parkway
Austin, TX 78746
January 24, 2005
SPEEDWARE CORPORATION INC.
TO: THE PERSONS NAMED ON SCHEDULE A TO THIS LETTER (each person
being referred
to individually as a "SELLER" or collectively as the
"SELLERS")
This letter sets out the terms and conditions upon which
Activant Solutions Inc.
("PARENT"), through Activant Solutions Acquisitionco Ltd. (the
"OFFEROR"),
agrees to make an offer (the "OFFER") as described below to
purchase all of the
common shares (the "SHARES") in the capital of Speedware
Corporation Inc. (the
"COMPANY").
Unless otherwise defined, all capitalized terms referred to
herein shall have
the meanings attributed to them in the support agreement made
the date hereof
among Parent, the Offeror and the Company (the "SUPPORT
AGREEMENT").
This letter also sets out the terms and conditions of the
agreement of each
Seller to deposit under the Offer or cause to be deposited under
the Offer all
the Shares beneficially owned by the Seller and any Shares which
may be issued
on the exercise of (i) all currently outstanding options
("OPTIONS") granted
pursuant to the Company's Stock Option Plans, (ii) Warrants; or
(iii) other
entitlements that such Seller may have to acquire Shares (such
Options,
Warrants, or other entitlements to acquire Shares being
collectively referred to
as "RIGHTS", and such Shares beneficially owned by a Seller
(including any
Shares acquired by a Seller before the Offer is completed) and
the Shares
issuable to the Seller pursuant to Rights are hereinafter
collectively referred
to as the "SUBJECT SHARES").
1. OFFER FOR SHARES OF THE COMPANY
(a) Subject to the terms and conditions below, the Offeror
shall
make the Offer. The terms of the Offer shall include any
amendments to, or extensions of, such Offer made in
accordance
with the terms of the Support Agreement, including, without
limitation, removing or waiving any condition or extending
the
date by which Shares may be deposited. The Offeror shall
offer
to acquire the Shares for CDN$3.91 per Share, in cash.
(b) Subject to Subsection 1.1(h) and 1.2(d) of the Support
Agreement, the Offeror shall make, or cause to be made, the
Offer to all Shareholders and mail the Bid Circular to each
registered Shareholder, Option holder and Warrant holder not
later than 11:59 p.m. (Toronto time) on the Latest Mailing
Date; provided, however, that if the mailing of the Bid
Circular is delayed by reason of (i) an injunction or order
made by a court or regulatory authority of competent
jurisdiction or (ii) the Offeror not having regulatory
waiver,
consent or approval which is necessary to permit the Offeror
to mail the Offer then, provided that such injunction or
order
is being contested or appealed or such regulatory waiver,
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consent or approval is being actively sought, as applicable,
then the Latest Mailing Date shall be extended to the second
business day following the date on which such injunction or
order ceases to be in effect or such waiver, consent or
approval is obtained, as applicable.
(c) The Bid Circular shall be prepared in both the English
and
French languages and in accordance with the Support
Agreement
and applicable Securities Laws.
(d) The Offer will be made in accordance with applicable
Securities Laws and shall expire no earlier than 8:00 a.m.
(Toronto time) on the 36th day after the Mailing Date,
subject
to the right of the Offeror to extend the period during
which
Shares may be deposited under the Offer (as it may be
extended, the "EXPIRY TIME"). The Offer shall be subject
only
to the conditions set forth in Schedule A annexed to the
Support Agreement.
(e) Each of the Sellers acknowledges and agrees that the
Offeror
may, in its sole discretion, amend, supplement, modify or
waive any term or condition of the Offer, provided that the
Offeror will not, without the prior written consent of the
Company, (i) increase the Minimum Tender Condition, (ii)
decrease the consideration per Share, (iii) change the form
of
consideration payable under the Offer (other than to add
additional consideration or the option of Shareholders to
choose one or more alternative forms of consideration in
addition to the form of consideration contemplated herein)
or
(iv) impose additional conditions to the Offer.
2. AGREEMENT TO TENDER
(a) This Agreement when signed and delivered by a Seller to
Parent
and the Offeror will constitute the agreement of that
Seller,
among other things, to irrevocably accept the Offer and
validly to tender or cause to be tendered and to do or to
cause to be done all acts and things (including exercising
or
converting, as applicable, all Rights held by such Seller)
to
tender the Subject Shares owned by that Seller under the
Offer
on the terms and conditions set out herein.
(b) Each of the Sellers shall:
(i) irrevocably and unconditionally deposit or cause to
be deposited with the designated depositary under the
Offer (the "DEPOSITARY") in response to the Offer all
of the Subject Shares (other than Subject Shares
issuable upon the exercise or conversion of Rights,
which shall be deposited as described below), free
and clear of all Encumbrances (as defined herein), in
accordance with the terms of the Offer (together with
a duly executed letter of transmittal in respect of
such Shares completed in accordance with the Offer)
as soon as reasonably practicable but in any event
not later than two business days following the date
of mailing of the Bid Circular or in the case of the
deposit of Holdco Shares as contemplated by the
Support Agreement, no later than 5:00 p.m. (Toronto
time) on the seventh business
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day prior to the Expiry Time (in which case the
Seller shall enter into a Holdco Agreement as
provided in the Support Agreement); and
(ii) irrevocably and unconditionally deposit or cause to
be deposited any Shares issuable upon exercise or
conversion of all Rights it holds, free and clear of
all Encumbrances, by providing the Depositary or
another entity designated by the Offeror (which may
be the Company's transfer agent) as soon as
reasonably practicable, but in any event not later
than two business days following the date of mailing
of the Bid Circular, with a completed notice of
guaranteed delivery in form acceptable to the Offeror
accepting the Offer and providing for the tendering
of the Subject Shares issuable upon the exercise of
Rights to the Offer, together with an irrevocable
direction to exercise all such Rights and to remit a
portion of the payment therefor equal to the
aggregate exercise price of the Rights to the Company
and to deliver the Subject Shares issuable upon the
exercise or conversion thereof to the Offer (together
with a duly executed letter of transmittal completed
in accordance with the Offer or such other
documentation that the Offeror may reasonably require
in respect of such Shares, including documentation
evidencing ownership of such Rights), such exercise
to be effective upon receipt by the Depositary or
such other designee of notice from the Offeror that
it is taking up Shares tendered to the Offer,
and thereafter, none of the Sellers shall withdraw or permit
its Subject Shares (including Rights exercisable for or
convertible into Subject Shares) to be withdrawn from the
Offer (notwithstanding any statutory or other legal or
equitable rights), unless this Agreement is terminated in
accordance with its terms. The Offeror will take up and pay
for the Subject Shares deposited under the Offer by a Seller
in accordance with the terms of the Offer within the periods
required by applicable Securities Laws and upon the
conditions
of the Offer having been satisfied or waived by the Offeror.
(c) For greater certainty, for the purposes of this Agreement,
the
term "SUBJECT SHARES" shall refer to Shares which each
Seller
is required to tender under the Offer and shall include all
shares or other securities into or for which the Subject
Shares may be converted, exchanged or otherwise changed
pursuant to any reorganization, merger, amalgamation or
other
transaction involving the Company prior to the acquisition
of
the Subject Shares by the Offeror, and shall also include
any
and all distributions of cash, securities or other property
made with respect to such Shares on or after the date
hereof,
and in the event that the Seller elects to tender Holdco
Shares in accordance with the Support Agreement, the term
"Subject Shares" shall include Holdco Shares.
3. CONDITIONS TO MAKING THE OFFER
The obligation of the Offeror to make the Offer is conditional
on the
prior satisfaction of the conditions set forth in Subsection
1.1(h) of
the Support Agreement, any or all of
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which may be waived by the Offeror in whole or in part in its
sole
discretion without prejudice to any other rights it may have
under the
Support Agreement or otherwise.
4. COVENANTS OF THE SELLERS
Each Seller agrees severally (but not jointly and severally)
that
during the period commencing on the date hereof and continuing
until
the termination of the Offer (as extended, where applicable) or
the
termination hereof in accordance with Section 7, as the case may
be:
(a) (i) except to the extent permitted hereunder, each
Seller
will not take any act, directly or indirectly, which
may in any way adversely affect the success of the
Offer or the purchase of any Shares under the Offer;
(ii) each Seller will exercise the voting rights attaching
to the Subject Shares and otherwise use its best
efforts as a Shareholder of the Company to oppose any
proposed action by the Company, its Shareholders or any
of its Subsidiaries or any other Person in respect of
(A) an Acquisition Proposal; or (B) any action or
transaction that would impede, interfere with, delay,
postpone or attempt to discourage the Offer;
(iii) each Seller will immediately cease and cause to be
terminated any existing discussions, negotiations,
proposals or offers with any Person (other than the
Offeror and Parent) with respect to any proposal that
constitutes, or may reasonably be expected to lead to,
an Acquisition Proposal; and
(iv) each Seller will not: (A) make, solicit, initiate,
encourage or otherwise facilitate (including by way of
furnishing information or entering into any form of
agreement, arrangement or understanding) inquiries from
or submissions of proposals or offers from any other
Person (including any of its officers or employees)
relating to any Acquisition Proposal; (B) participate
in any discussions or negotiations regarding, or
furnish to any Person any information with respect to
or otherwise co-operate in any way with, respond to,
assist or participate in, facilitate or encourage any
effort or attempt by any other Person to do or seek to
do any of the foregoing; or (C) enter into any
agreement, arrangement or understanding related to any
Acquisition Proposal,
provided, however, that the foregoing shall not prevent any
of
the Sellers who is a director of the Company from doing any
act or thing that he properly is obliged to do in his
capacity
as a director of the Company including, without limitation,
responding in his capacity as a director to any Superior
Proposal.
(b) Each of the Sellers agrees to immediately provide notice
to
Parent and the Offeror of any future bona fide Acquisition
Proposal or any request for non-public information relating
to
the Company or any of the Subsidiaries in connection with a
bona fide Acquisition Proposal or for access to the
properties, books or records of the Company or any
Subsidiary
by any Person that informs the Seller that it is
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considering making, or has made, an Acquisition Proposal.
Such
notice to Parent and the Offeror shall be made from time to
time upon any Seller being aware of such request or
proposal,
first immediately orally and promptly in writing and shall
indicate the identity of the Person making such proposal,
inquiry or contact, all material terms thereof and such
other
details of the proposal, inquiry or contact known to the
Seller or as Parent or Offeror may reasonably request.
(c) Each Seller agrees to use its reasonable best efforts to
do,
or cause to be done, all things necessary, proper or
advisable
under applicable Laws, to consummate the transactions
contemplated by this Agreement and the Offer as it relates
to
the Seller, including using its reasonable best efforts to:
(i) support the Offer; (ii) obtain or assist or facilitate
the
Offeror in obtaining all necessary consents, approvals and
authorizations as are required to be obtained by or in
respect
of the Seller under applicable Laws relating to this
Agreement
or the Offer; (iii) lift or rescind any injunction or
restraining order or other order adversely affecting such
Seller's ability to consummate the transactions contemplated
hereby or by the Offer; and (iv) fulfill all conditions and
satisfy all provisions of this Agreement and the Offer
applicable to such Seller.
(d) Each of the Sellers agrees not to, except as contemplated
by
this Agreement, sell, transfer, pledge, encumber, grant a
security interest in, hypothecate or otherwise convey,
directly or indirectly, any Subject Shares or Rights held by
the Seller to any Person, or agree to any of the foregoing.
(e) Each of the Sellers agrees not to grant any proxy or
other
right to vote in respect of any Subject Shares, or enter
into
any voting trust or other similar agreements with respect to
the right to vote the Subject Shares.
(f) Each Seller who is a director hereby agrees to resign as
a
director of the Company, immediately following the
acquisition
by the Offeror of more than 50% of the outstanding Shares
pursuant to the Offer in the manner contemplated by Section
1.4 of the Support Agreement, upon confirmation that the
Company is maintaining insurance coverage for services
rendered as director or officer in accordance with Section
5.8
of the Support Agreement.
5. REPRESENTATIONS AND WARRANTIES OF THE SELLERS
Each Seller by its acceptance hereof represents and warrants
severally
(but not jointly and severally) as follows, and acknowledges
that
Parent and the Offeror are relying upon such representations
and
warranties in connection with entering into this Agreement and
the
purchase of the Subject Shares:
(a) (i) the Seller is the beneficial owner of the Subject
Shares
and Rights listed on Schedule A hereto beside the Seller's
name with good and marketable title, free and clear of any
and
all mortgages, liens, charges, pledge, claims or other
security of any nature or kind whatsoever, and such Subject
Shares are not subject to any shareholders' agreements,
voting
trust or similar agreements or any right or
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privilege (whether by Law, pre
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