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:
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SECTION 1. Certain Definitions
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For purposes of this Agreement:
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(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.
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SECTION 2. Transfer of Subject Shares and
Voting Rights
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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.
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SECTION 3. Voting of Shares
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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.
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SECTION 4. Waiver of Appraisal
Rights
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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.
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SECTION 5. No Solicitation
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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.
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SECTION 6. Representations and Warranties
of Stockholders
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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 o