Exhibit
10.3
STOCKHOLDER SUPPORT AGREEMENT
THIS STOCKHOLDER SUPPORT
AGREEMENT (“
AGREEMENT ”) is entered into as of
September 26, 2006, by and between ACQUICOR TECHNOLOGY
INC. , a Delaware corporation (“
Parent ”), and each of the parties listed on
the signature pages hereto (each, a “
Stockholder ” and collectively, the “
Stockholders ”).
RECITALS
A. Each Stockholder is a holder of record and the
“beneficial owner” (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934) of that number of shares
of Company Capital Stock set forth opposite such
Stockholder’s name on Annex A
hereto.
B. Parent, Joy Acquisition Corp., a Delaware
corporation and wholly owned subsidiary of Parent (“
Merger Sub ”), and Jazz Semiconductor, Inc.,
a Delaware corporation (the “
Company ”) are entering into an Agreement
and Plan of Merger of even date herewith (the “
Merger Agreement ”) which provides (subject
to the conditions set forth therein) for the merger of Merger Sub
with and into the Company (the “ Merger
”), with the Company surviving as a wholly owned subsidiary
of Parent.
C. In the Merger, each outstanding share of
capital stock of the Company is to be converted into the right to
receive the cash consideration set forth in the Merger
Agreement.
D. Each Stockholder is entering into this
Agreement as an inducement to Parent to enter into the Merger
Agreement.
AGREEMENT
In
consideration of the foregoing and the mutual promises,
representations, warranties, covenants and agreements contained
herein, the parties to this Agreement, intending to be legally
bound, agree as follows:
SECTION
1.
CERTAIN
DEFINITIONS
For purposes of
this Agreement:
(a) Capitalized terms used but not otherwise defined
in this Agreement have the meanings assigned to such terms in the
Merger Agreement.
(b)
“Expiration
Date” shall
mean the earlier of (i) the date upon which the Merger Agreement is
validly terminated pursuant to Section 8 thereof, or (ii) the
Effective Time.
(c) Stockholder shall be deemed to “
Own ” or to have acquired “
Ownership ” of a security if Stockholder: (i)
is the record owner of such security; or (ii) is the
“beneficial owner” (within the meaning of Rule 13d-3
under the Securities Exchange Act of 1934) of such
security.
(d)
“
Subject
Shares ” shall mean, with respect to each Stockholder:
(i) all shares of Company Capital Stock Owned by such Stockholder
as of the date of this Agreement; (ii) all additional shares of
Company Capital Stock of which such Stockholder acquires Ownership
during the period from the date of this Agreement through the
Expiration Date; and (iii) all securities into which any of the
shares of Company Capital Stock described in clause
“(i)” or clause “(ii)” above are exchanged
or converted.
(e) A Stockholder shall be deemed to have effected a
“ Transfer ” of Subject Shares if such
Stockholder directly or indirectly: (i) sells, pledges, encumbers,
grants an option with respect to, transfers or disposes of such
Subject Shares or any interest in such Subject Shares to any Person
other than Parent; or (ii) enters into an agreement or commitment
contemplating the possible sale of, pledge of, encumbrance of,
grant of an option with respect to, transfer of or disposition of
such Subject Shares or any interest therein to any Person other
than Parent.
SECTION 2.
TRANSFER OF SUBJECT SHARES
AND VOTING RIGHTS
2.1
Restriction on Transfer of
Subject Shares .
During the period from the date of this
Agreement through the Expiration Date, no Stockholder shall,
directly or indirectly, cause or permit any Transfer of any of the
Subject Shares of such Stockholder to be effected.
2.2
Restriction on Transfer of
Voting Rights .
During the period from the date of this Agreement through the
Expiration Date, each Stockholder shall ensure that: (a) none of
the Subject Shares of such Stockholder is deposited into a voting
trust; and (b) no proxy is granted, and no voting agreement or
similar agreement is entered into, with respect to any of the
Subject Shares of such Stockholder.
SECTION 3.
VOTING OF
SHARES
3.1
Written
Consent. Immediately
following the execution of the Merger Agreement, each Stockholder
shall execute and deliver to the Company a written consent
approving the Merger, adopting the Merger Agreement and approving
the Certificate Amendment and the other Contemplated Transactions
(a “ Written Consent ”), and each
Stockholder agrees not to withdraw the Stockholder’s Written
Consent and not to take any other action that is inconsistent with
such Written Consent or that may have the effect of delaying or
interfering with the Merger, the Certificate Amendment or any of
the other Contemplated Transactions.
3.2
Voting
Covenant .
Each Stockholder hereby agrees that, during
the period from the date of this Agreement through the Expiration
Date, at any meeting of the stockholders of the Company, however
called, and in any written action by consent of stockholders of the
Company, unless otherwise directed in writing by Parent, each
Stockholder shall cause the Subject Shares of such Stockholder to
be voted:
(a) against any action or agreement that would
result in a breach of any representation, warranty, covenant or
obligation of the Company in the Merger Agreement; and
(b) against the following actions (other than the
Merger, the Contemplated Transactions or transactions consented to
by Parent pursuant to Section 4.2 of the Merger Agreement): (i) any
Acquisition Transaction; (ii) any reorganization, recapitalization,
dissolution or liquidation of the Company or any subsidiary of the
Company that is not directly or indirectly wholly-owned by the
Company; (iii) any change in a majority of the board of directors
of the Company; (iv) any amendment to the Company’s
certificate of incorporation or bylaws; (v) any material change in
the capitalization of the Company or the Company’s corporate
structure; and (vi) any other action which is intended, or could
reasonably be expected, to impede, interfere with, delay, postpone,
discourage or adversely affect the Merger or any of the other
Contemplated Transactions.
During the
period from the date of this Agreement through the Expiration Date,
no Stockholder shall enter into any agreement or understanding with
any Person to vote or give instructions in any manner inconsistent
with clause “(a)” or clause “(b)” of the
preceding sentence.
3.3
No Other
Actions . During the
period from the date of this Agreement through the Expiration Date,
no Stockholder shall enter into any voting or other such agreement,
or grant a proxy or power of attorney, with respect to the Subject
Shares that is inconsistent with this Agreement or otherwise take
any other action with respect to the Subject Shares that would in
any way restrict, limit or interfere with the performance of
Stockholder’s obligations hereunder or the transactions
contemplated hereby.
SECTION 4.
WAIVER OF APPRAISAL
RIGHTS
Each Stockholder hereby irrevocably and
unconditionally waives, and agrees to cause to be waived and to
prevent the exercise of, any rights of appraisal, any
dissenters’ rights and any similar rights relating to the
Merger that such Stockholder may have by virtue of, or with respect
to, any shares of Company Capital Stock Owned by such
Stockholder.
SECTION 5.
NO
SOLICITATION
Each Stockholder
agrees that, during the period from the date of this Agreement
through the Expiration Date, such Stockholder shall not, directly
or indirectly, and such Stockholder shall instruct such
Stockholder’s Representatives to not, directly or indirectly:
(a) solicit, knowingly facilitate or knowingly encourage the
initiation of any inquiry, proposal or offer from any Person (other
than Parent or Parent’s Representatives) relating to a
possible Acquisition Transaction; (b) participate in any
discussions or negotiations or enter into any agreement with, or
provide any non-public information to, any Person (other than
Parent or Parent’s Representatives) relating to or in
connection with a possible Acquisition Transaction; or (c)
consider, entertain or accept any proposal or offer from any Person
(other than Parent or Parent’s Representatives acting on
behalf of Parent) relating to a possible Acquisition Transaction.
Each Stockholder shall immediately cease and discontinue, and each
Stockholder shall ensure that such Stockholder’s
Representatives immediately cease and discontinue, any existing
discussions with any Person that related to any inquiry, proposal
or offer relating to a possible Acquisition Transaction. Nothing
contained in this Section 5 or Section 4.4 of the Merger Agreement
shall prohibit such Stockholder or its Representatives from having
discussions with any potential joint venture partner or otherwise
considering any strategic acquisition so long as (x) the potential
joint venture or acquisition transaction does not contemplate the
sale or issuance of any securities of any Acquired Company (unless
otherwise disclosed to Parent prior to the date hereof) and would
be intended primarily to address the needs of the Acquired
Companies to find alternative sources of production of wafers for
customers of the Acquired Companies during periods where the
Acquired Companies lack the manufacturing capacity to fulfill their
customers’ orders or forecasted orders for wafers, and (y)
the Company does not enter into any letter of intent or other
binding agreement with respect to any of the foregoing without the
prior written consent of Parent, not to be unreasonably
withheld.
SECTION 6.
REPRESENTATIONS AND
WARRANTIES OF STOCKHOLDERS
Each
Stockholder hereby represents and warrants (severally but not
jointly) to Parent as follows:
6.1
Authorization,
etc .
Such Stockholder has the right, power, and
authority to execute and deliver this Agreement and to perform such
Stockholder’s obligations hereunder. This Agreement has been
duly executed and delivered by such Stockholder and constitutes the
legal, valid and binding obligation of such Stockholder,
enforceable against such Stockholder in accordance with its terms,
subject to: (a) laws of general application relating to bankruptcy,
insolvency and the relief of debtors; and (b) rules of law
governing specific performance, injunctive relief and other
equitable remedies. If such Stockholder is a corporation, then such
Stockholder is duly incorporated, validly existing and in good
standing under the laws of the jurisdiction in which it was
incorporated. If such Stockholder is a general or limited
partnership, then such Stockholder is a partnership duly organized,
validly existing and in good standing under the laws of the
jurisdiction in which it was organized. If such Stockholder is a
limited liability company, then such Stockholder is a limited
liability company duly organized, validly existing and in good
standing under the laws of the jurisdiction in which it was
organized.
6.2
No Conflicts or
Consents.
(a) The execution and delivery of this Agreement by
such Stockholder does not, and the performance of this Agreement by
such Stockholder will not: (i) conflict with or violate any Legal
Requirement or Order applicable to such Stockholder or by which
such Stockholder or any of such Stockholder’s properties is
or may be bound or affected; or (ii) result in or constitute (with
or without notice or lapse of time) any material breach of or
material default under, or give to any other Person (with or
without notice or lapse of time) any right of termination,
amendment, acceleration or cancellation of, or result (with or
without notice or lapse of time) in the creation of any Encumbrance
on any of the Subject Shares held by such Stockholder pursuant to,
any Contract to which such Stockholder is a party or by which
Stockholder or any of its properties is or may be bound or
affected.
(b) The execution and delivery of this Agreement by
such Stockholder does not, and the performance of this Agreement by
such Stockholder will not, require any Consent of any Governmental
Body.
6.3
Title to
Securities . As of
the date of this Agreement: (a) such Stockholder holds of record
(free and clear of any Encumbrances, other than Encumbrances
imposed by applicable securities laws) the number of outstanding
shares of each class and series of Company Capital Stock set forth
under the heading “Shares Held of Record” on
Annex A hereto; and (b) except as disclosed on
Annex A , such Stockholder does not hold of record
any shares of Company Capital Stock or other securities of the
Company, or any option, warrant or other right to acquire (by
purchase, conversion or otherwise) any shares of Company Capital
Stock or other securities of the Company, other than the shares set
forth on Annex A hereto.
6.4
Accuracy of
Representations .
The representations and warranties contained in this Agreement are
accurate in all re
|