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Exhibit
99.1
VOTING AGREEMENT
BY AND AMONG
CP HOLDCO, LLC
AND
THE ENTITIES AND PERSONS
NAMED ON SCHEDULE I HERETO
DATED AS OF DECEMBER 5,
2007
Table of
Contents
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Page |
| ARTICLE I CERTAIN DEFINITIONS |
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2 |
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Section 1.1
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Capitalized Terms |
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2 |
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Section 1.2
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Other
Definitions |
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2 |
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| ARTICLE II AGREEMENT TO VOTE |
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3 |
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Section 2.1
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Agreement
to Vote |
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3 |
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Section 2.2
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Additional Shares |
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5 |
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Section 2.3
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Restrictions on Transfer, Etc. |
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5 |
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Section 2.4
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Acknowledgement |
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5 |
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| ARTICLE III REPRESENTATIONS AND WARRANTIES OF
SHAREHOLDERS |
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5 |
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Section 3.1
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Authority
Relative to this Agreement |
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5 |
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Section 3.2
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No
Conflict |
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6 |
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Section 3.3
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Ownership
of Shares |
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6 |
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Section 3.4
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No
Finder’s Fee |
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6 |
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Section 3.5
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Reliance
by the Purchaser Parties |
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7 |
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| ARTICLE IV ADDITIONAL COVENANTS OF THE SHAREHOLDERS |
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7 |
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Section 4.1
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Restriction on Conversion |
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7 |
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Section 4.2
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Waiver of
Appraisal Rights |
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7 |
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Section 4.3
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Disclosure |
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7 |
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Section 4.4
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No
Inconsistent Agreement; Non-Interference; Further
Assurances |
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7 |
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| ARTICLE V TERMINATION |
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8 |
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Section 5.1
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Termination |
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8 |
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| ARTICLE VI MISCELLANEOUS |
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8 |
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Section 6.1
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Notices |
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8 |
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Section 6.2
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Parties
in Interest |
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8 |
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Section 6.3
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Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial |
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8 |
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Section 6.4
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Severability |
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9 |
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Section 6.5
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Assignment; Successors and Assigns |
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9 |
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Section 6.6
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Amendments; Waivers |
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9 |
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Section 6.7
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Fees and
Expenses |
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9 |
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Section 6.8
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Entire
Agreement |
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10 |
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Section 6.9
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Remedies
Cumulative |
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10 |
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Section 6.10
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Counterparts; Effectiveness; Execution |
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10 |
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Section 6.11
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Specific
Performance |
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10 |
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Section 6.12
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Additional Shareholders |
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10 |
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| SCHEDULES |
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| Schedule I |
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Shareholders |
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| Schedule II |
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Owned
Shares; Company Derivatives |
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ii
VOTING
AGREEMENT
THIS VOTING AGREEMENT (this
“ Agreement ”) is dated as of December 5,
2007, by and among CP Holdco, LLC, a Delaware limited liability
company (“ Parent ”) and the entities and
persons set forth on Schedule I attached hereto (each, a
“ Shareholder ” and collectively, the “
Shareholders ”).
RECITALS
WHEREAS, concurrently with
the execution of this Agreement, Parent, CP Merger Co., a
California corporation and a wholly-owned subsidiary of Parent
(“ Merger Sub ”, and, jointly with Parent, the
“ Purchaser Parties ”) and Critical Path, Inc.,
a California corporation (the “ Company ”) have
entered into that certain Agreement and Plan of Merger, dated as of
the date hereof (as it may be amended, supplemented, modified from
time to time, the “ Merger Agreement ”), which
provides, among other things, for the merger of Merger Sub with and
into the Company (the “ Merger ”) and certain
other transactions contemplated therein, upon the terms and subject
to the conditions set forth therein;
WHEREAS, in connection with
the transactions contemplated by the Merger Agreement, the Company
proposes to amend and restate its Articles of Incorporation (the
“ Restated Articles ”);
WHEREAS, each Shareholder is
the record and Beneficial Owner (as defined below) of, and has the
sole right to vote and dispose of, that number of shares of
(i) Common Stock, par value $0.001 per share, of the Company
(the “ Common Stock ”), (ii) Series D
Cumulative Redeemable Convertible Preferred Stock, par value $0.001
per share, of the Company (the “ Series D Preferred
Stock ”) and/or (iii) Series E Redeemable
Convertible Preferred Stock, par value $0.001 per share, of the
Company (the “ Series E Preferred Stock ”), set
forth next to such Shareholder’s name on
Schedule II hereto; and
WHEREAS, as an inducement and
condition to the Purchaser Parties entering into the Merger
Agreement and incurring the obligations therein, the Purchaser
Parties have required that each Shareholder enter into this
Agreement and the Shareholders, as an inducement to the Purchaser
Parties entering into the Merger Agreement and incurring the
obligations therein, have agreed to enter into this
Agreement.
NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and
agreements contained herein, the parties hereto, intending to be
legally bound, agree as follows:
ARTICLE I
CERTAIN
DEFINITIONS
Section 1.1
Capitalized Terms . Each capitalized term used in this
Agreement and not defined herein shall have the meaning ascribed to
such term in the Merger Agreement.
Section 1.2 Other
Definitions . For the purposes of this Agreement:
(a) “ Agreement
” has the meaning set forth in the Preamble.
(b) “ Beneficial
Owner ” or “ Beneficial Ownership ”
with respect to any securities means having “beneficial
ownership” of such securities (as determined pursuant to Rule
13d-3 under the Exchange Act).
(c) “ CK
Shareholders ” means, collectively, those Shareholders
set forth under the heading “CK Shareholders” in
Schedule I hereto.
(d) “ Common
Stock ” has the meaning set forth in the
Recitals.
(e) “ Expiration
Time ” has the meaning set forth in
Section 2.1(a).
(f) “ GA
Shareholders ” means, collectively, those Shareholders
set forth under the heading “GA Shareholders” in
Schedule I hereto.
(g) “ Legal
Actions ” means any claims, actions, suits, demand
letters, judicial, administrative or regulatory proceedings, or
hearings, notices of violation, or investigations.
(h) “ Merger
Agreement ” has the meaning set forth in the
Recitals.
(i) “ Merger Sub
” has the meaning set forth in the Recitals.
(j) “ Owned
Shares ” has the meaning set forth in
Section 2.1(a).
(k) “ Parent
” has the meaning set forth in the Preamble.
(l) “ Permits
” means all authorizations, licenses, consents, certificates,
registrations, approvals, orders and other permits of any
Governmental Authority.
(m) “ Purchaser
Parties ” has the meaning set forth in the
Recital.
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(n) “
Representative ” means, with respect to any particular
Person, any director, officer, employee, agent or other
representative of such Person, including any consultant,
accountant, legal counsel or investment banker.
(o) “ Restated
Articles ” has the meaning set forth in the
Recitals.
(p) “ Series D
Preferred Stock ” has the meaning set forth in the
Recitals.
(q) “ Series E
Preferred Stock ” has the meaning set forth in the
Recitals.
(r) “
Shareholder ” has the meaning set forth in the
Preamble.
(s) “ Shares
” shall mean, for the purposes of this Agreement, all the
shares of Common Stock, Series D Preferred Stock, Series E
Preferred Stock and other voting securities into which such shares
may be reclassified, sub-divided, consolidated or converted and any
rights and benefits arising therefrom, including any dividends or
distributions of securities which may be declared in respect of
such shares and entitled to vote in respect of the matters
contemplated by Article II and all other capital stock of the
Company entitled to vote in respect of the matters contemplated by
Article II.
(t) “
Shareholders’ Meeting ” has the meaning set
forth in Section 2.1(a).
(u) “ Transfer
” means, with respect to a security, the sale, grant,
assignment, transfer, pledge, encumbrance, hypothecation or other
disposition of such security or the Beneficial Ownership thereof
(including by operation of Law), or the entry into any Contract to
effect any of the foregoing, including, for purposes of this
Agreement, the transfer or sharing of any voting power of such
security or other rights in or of such security, the granting of
any proxy with respect to such security, depositing such security
into a voting trust or entering into a voting agreement with
respect to such security.
ARTICLE II
AGREEMENT TO
VOTE
Section 2.1 Agreement
to Vote .
(a) Subject to the terms and
conditions hereof, each Shareholder, severally and not jointly,
hereby irrevocably and unconditionally agrees that from and after
the date hereof and until the earliest to occur of (i) the
conversion, after the Reverse Split, of all then outstanding shares
of Series D Preferred Stock and Series E Preferred Stock into
shares of Common Stock, (ii) the termination of the Merger
Agreement in accordance with its terms, and (iii) the written
agreement of the Purchaser
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Parties, the GA Shareholders and the CK
Shareholders to terminate this Agreement (such earliest occurrence
being the “ Expiration Time ”), at any meeting
(whether annual or special, and at each adjourned or postponed
meeting) of the Company’s shareholders, however called, or in
any other circumstances (including any action by written consent)
upon which a vote or other consent or approval is sought (any such
meeting or other circumstance, a “ Shareholders’
Meeting ”), each Shareholder will (x) appear at such
a meeting or otherwise cause its Owned Shares to be counted as
present thereat for purposes of calculating a quorum and respond to
any other request by the Company for written consent, if any, and,
unless otherwise expressly consented to in writing by the Purchaser
Parties, in their sole discretion, and (y) vote, or cause to
be voted, all of such Shareholder’s Shares Beneficially Owned
by such Shareholder as of the relevant time (“ Owned
Shares ”) (A) in favor of the adoption of the Merger
Agreement (whether or not recommended by the Company Board of
Directors or any committee thereof) and the approval of the
transactions contemplated thereby, including the Merger,
(B) in favor of the adoption of the Restated Articles (whether
or not recommended by the Company’s Board of Directors or any
committee thereof), and (C) in favor of the approval of any
other matter to be approved by the shareholders of the Company to
facilitate the transactions contemplated by the Merger Agreement
and the filing of the Restated Articles. In addition, upon written
notice from any GA Shareholder or any CK Shareholder that such GA
Shareholder or CK Shareholder is electing to convert its shares of
Series D Preferred Stock (if any) and Series E Preferred Stock into
shares of Common Stock, each other Shareholder holding any shares
of Series D Preferred Stock or Series E Preferred Stock shall
immediately elect to convert all of its shares of Series D
Preferred Stock and Series E Preferred Stock into shares of Common
Stock pursuant to Section 7(aa) of Article V.C of the Restated
Articles then in effect.
(b) Notwithstanding anything
to the contrary contained in this Agreement, each of Peter Kellner,
Richmond I, LLC, Richmond III, LLC, the Kellner Foundation, George
Kellner, Trust FBO Peter and Catherine Kellner, Catherine Kellner,
Clara Kellner and Paul Kellner (collectively, the “
Current Kellner Shareholders ”) and Richmond CP LLC
(“ Richmond CP ”), hereby jointly and severally
agree that (i) as soon as practicable after the date hereof
(but in any event not more than five (5) days after the date
hereof), each of the Current Kellner Shareholders shall assign,
transfer, convey and deliver to Richmond CP, and Richmond CP shall
accept the assignment and transfer from such Current Kellner
Shareholder, all of the right, title and interest in and to
(x) the Owned Shares of such Current Kellner Shareholder set
forth opposite its name on Schedule II attached hereto and
(y) all rights and obligations (including, without limitation,
the obligation to vote its Owned Shares pursuant to the terms
hereof) of such Current Kellner Shareholder pursuant to or arising
out of this Agreement, and (ii) upon such assignment and
transfer, Richmond CP hereby assumes and agrees to perform and
discharge in full as and when due any and all liabilities and
obligations of each of the Current Kellner Shareholders, of any
type whatsoever, arising out of or relating to the Owned Shares or
this Agreement, whether accruing before, on or after the date
hereof. Upon the completion of such transfers pursuant to this
Section 2.1(b), Schedule II hereto shall be amended in
accordance with the provisions of Section 6.6.
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Section 2.2
Additional Shares . Each Shareholder, severally and not
jointly, hereby agrees, while this Agreement is in effect, promptly
to notify the Purchaser Parties of the number of any new Shares or
equivalent thereof with respect to which Beneficial Ownership is
acquired by such Shareholder, if any, after the date hereof and
before the Expiration Time. Any such Shares shall
automatically become subject to the terms of this Agreement as
Owned Shares as though owned by such Shareholder as of the date
hereof.
Section 2.3
Restrictions on Transfer, Etc . Except as provided for
herein, each Shareholder, severally and not jointly, agrees, from
the date hereof until the Expiration Time, not to (i) directly
or indirectly Transfer, offer to Transfer or contract to Transfer
any Owned Shares or Company Derivatives (other than
(x) Transfers to Parent pursuant to that certain Conversion
and Contribution Agreement, dated the date hereof, among Parent and
the shareholders of the Company named therein and
(y) Transfers by each Current Kellner Shareholder to Richmond
CP pursuant to Section 2.1(b)); (ii) tender any Owned
Shares or Company Derivatives into any tender or exchange offer; or
(iii) otherwise restrict the ability of such Shareholder
freely to exercise all voting rights with respect thereto. Any
action attempted to be taken in violation of the preceding sentence
shall be deemed null and void. Each Shareholder, severally and
not jointly, further agrees to authorize and hereby authorizes the
Purchaser Parties and the Company to notify the Company’s
transfer agent and the Paying Agent that there is a stop transfer
order with respect to all of the Owned Shares and that this
Agreement places limits on the voting of the Owned
Shares.
Section 2.4
Acknowledgement . Each Shareholder hereby acknowledges
receipt and review of a copy of the Merger Agreement.
ARTICLE III
REPRESENTATIONS AND
WARRANTIES OF SHAREHOLDERS
The Shareholders, severally
and not jointly, represent and warrant to the Purchaser Parties as
of the date of this Agreement and at all times during the term of
this Agreement, as follows:
Section 3.1 Authority
Relative to this Agreement . (i) Each Shareholder has the
requisite capacity and authority to execute and deliver this
Agreement, to fulfill and perform such Shareholder’s
obligations hereunder and to consummate the transactions
contemplated hereby and (ii) the execution and delivery of
this Agreement by each Shareholder and the consummation by each
Shareholder of the transactions to be consummated by it as
contemplated hereby have been duly and validly executed and
delivered by such Shareholder and, assuming the due authorization,
execution and delivery by Parent, constitutes a legal, valid and
binding agreement of such Shareholder enforceable by the Purchaser
Parties against such Shareholder in accordance with its terms and
no other proceedings on the part of such Shareholder are necessary
to authorize this Agreement, to perform such obligations or to
consummate such transactions.
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Section 3.2 No
Conflict . Other than the filing by a Shareholder of any
reports with the SEC required by Sections 13(d) or 16(a) of
the Exchange Act, none of the execution and delivery of this
Agreement by a Shareholder, the consummation by a Shareholder of
the transactions contemplated hereby or compliance by a Shareholder
with any of the provisions her
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