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Title: |
Agreement and Plan of Amalgamation |
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Entities: |
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Date: |
2000 |
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Preview shows 26KB of 238KB total |
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$78 |
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ID: |
#1274022 |
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AGREEMENT AND PLAN OF AMALGAMATION
BY AND AMONG
NUMERICAL TECHNOLOGIES, INC.,
NUMERICAL NOVA SCOTIA COMPANY,
NUMERICAL ACQUISITION LIMITED,
CADABRA DESIGN AUTOMATION INC.,
3047725 NOVA SCOTIA LIMITED,
MARTIN LEFEBVRE
AND
FAYSAL SOHAIL
Dated as of September 5, 2000
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<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
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<S> <C>
ARTICLE I THE AMALGAMATION............................................................................ 2
1.1 The Amalgamation........................................................................ 2
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1.2 Effective Time; Closing................................................................. 2
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1.3 Effect of the Amalgamation.............................................................. 2
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1.4 Memorandum of Association and Articles of Association................................... 3
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1.5 Directors and Officers.................................................................. 3
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1.6 Effect on Capital Stock................................................................. 3
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1.7 Dissenting Shares....................................................................... 4
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1.8 Surrender of Certificates............................................................... 5
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1.9 No Further Ownership Rights in Company Common Stock..................................... 6
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1.10 Lost, Stolen or Destroyed Certificates.................................................. 6
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1.11 Tax and Accounting Treatment............................................................ 6
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1.12 Reorganization of Capital............................................................... 7
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1.13 Reservation of Parent Common Stock...................................................... 7
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ARTICLE II REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY....................................... 7
2.1 Organization of the Company and Subsidiaries............................................ 7
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2.2 Articles and Memoranda.................................................................. 8
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2.3 Capitalization.......................................................................... 8
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2.4 Authority............................................................................... 10
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2.5 No Conflict; Required Filings and Consents.............................................. 10
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2.6 Compliance; Permits..................................................................... 11
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2.7 Company Financial Statements............................................................ 11
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2.8 No Undisclosed Liabilities.............................................................. 11
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2.9 Absence of Certain Changes or Events.................................................... 12
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2.10 Absence of Litigation................................................................... 12
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2.11 Employee Benefit Plans.................................................................. 13
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2.12 Labor Matters........................................................................... 15
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2.13 Restrictions on Business Activities..................................................... 16
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2.14 Title to Property....................................................................... 16
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2.15 Taxes................................................................................... 17
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2.16 Environmental Matters................................................................... 19
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2.17 Brokers................................................................................. 20
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2.18 Intellectual Property................................................................... 20
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2.19 Agreements, Contracts and Commitments................................................... 24
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2.20 Insurance............................................................................... 25
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</TABLE>
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<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
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<S> <C>
2.21 Board Approval.......................................................................... 25
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2.22 Minute Books............................................................................ 25
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2.23 Canadian Securities Laws................................................................ 25
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2.24 Circular Disclosure..................................................................... 26
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2.25 Full Disclosure......................................................................... 26
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ARTICLE III REPRESENTATIONS AND WARRANTIES REGARDING ML HOLDCO........................................ 26
3.1 Organization............................................................................ 26
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3.2 Articles and Memoranda.................................................................. 26
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3.3 Capitalization.......................................................................... 26
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3.4 No Contracts or Agreements.............................................................. 27
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3.5 Authority............................................................................... 27
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3.6 No Conflict; Required Filings and Consents.............................................. 27
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3.7 Compliance; Permits..................................................................... 28
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3.8 No Undisclosed Liabilities.............................................................. 28
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3.9 Taxes................................................................................... 28
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3.10 Brokers................................................................................. 29
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ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND AMALGAMATION SUB.............................. 29
4.1 Organization............................................................................ 29
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4.2 Authority............................................................................... 29
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4.3 No Conflict; Required Filings and Consents.............................................. 30
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4.4 Capitalization.......................................................................... 31
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4.5 SEC Documents........................................................................... 31
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4.6 No Material Adverse Change.............................................................. 31
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4.7 Absence of Litigation................................................................... 32
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4.8 Brokers................................................................................. 32
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4.9 Board Approval.......................................................................... 32
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4.10 Circular Disclosure..................................................................... 32
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4.11 Full Disclosure......................................................................... 32
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4.12 Compliance With Laws.................................................................... 32
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ARTICLE V CONDUCT PRIOR TO THE CLOSING................................................................ 32
5.1 Conduct of Business of the Company...................................................... 32
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5.2 Conduct of Parent....................................................................... 35
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5.3 No Solicitation......................................................................... 35
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</TABLE>
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<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
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<S> <C>
ARTICLE VI ADDITIONAL AGREEMENTS................................................................... 36
6.1 Company Shareholders Meeting......................................................... 36
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6.2 Registration Rights.................................................................. 37
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6.3 Assumption of Company Stock Options by Amalco........................................ 37
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6.4 Confidentiality...................................................................... 39
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6.5 Expenses ............................................................................ 39
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6.6 Commercially Reasonable Efforts...................................................... 39
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6.7 Notification of Certain Matters...................................................... 40
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6.8 Transition........................................................................... 40
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6.9 Access to Information................................................................ 40
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6.10 Employees............................................................................ 40
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6.11 Form S-8 ............................................................................ 41
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6.12 Company Bonus Plan................................................................... 41
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6.13 Treatment of Exchangeable Shares..................................................... 41
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6.14 Arrangements with Faysal Sohail...................................................... 41
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6.15 Capitalization of Amalgamation Sub................................................... 41
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ARTICLE VII CONDITIONS TO CLOSING.................................................................. 41
7.1 Conditions to Obligations of Each Party to Effect the Amalgamation................... 41
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7.2 Additional Conditions to Obligations of the Company.................................. 42
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7.3 Additional Conditions to the Obligations of Parent................................... 43
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ARTICLE VIII INDEMNIFICATION; ESCROW............................................................... 44
8.1 Survival of Representations, Warranties and Agreements............................... 44
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8.2 Indemnification...................................................................... 44
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8.3 Indemnification Threshold and Limitations............................................ 45
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8.4 Indemnification Escrow Account....................................................... 45
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8.5 Shareholder Representative........................................................... 46
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8.6 Defense of Third Party Claims........................................................ 49
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8.7 No Liability for Tax Treatment of Amalgamation and Reorganization of Capital......... 50
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ARTICLE IX TERMINATION, AMENDMENT AND WAIVER....................................................... 50
9.1 Termination.......................................................................... 50
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9.2 Effect of Termination................................................................ 51
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9.3 Amendment............................................................................ 51
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9.4 Extension; Waiver.................................................................... 51
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</TABLE>
-iii-
<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
<CAPTION>
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<S> <C>
ARTICLE X GENERAL PROVISIONS....................................................................... 51
10.1 Notices.............................................................................. 51
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10.2 Interpretation....................................................................... 53
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10.3 Counterparts......................................................................... 53
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10.4 Entire Agreement; Assignment......................................................... 53
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10.5 Severability......................................................................... 54
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10.6 Other Remedies....................................................................... 54
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10.7 Governing Law........................................................................ 54
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10.8 Arbitration.......................................................................... 54
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10.9 Rules of Construction................................................................ 56
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10.10 Specific Performance................................................................. 56
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10.11 English Language Only................................................................ 56
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10.12 Certain Defined Terms................................................................ 56
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</TABLE>
-iv-
<PAGE>
Index of Exhibits
Description Exhibit
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Form of Voting Agreement A
Form of Registration Rights Agreement B
Form of Martin Lefebvre Employment Agreement C
Form of Faysal Sohail Employment Agreement D
Key Employees to sign Employment Agreements E
Form of Key Employee Employment Agreement F
Form of Escrow Agreement G
Form of Exchangeable Share Provisions H
Form of Voting and Exchange Agreement I
Form of Support Agreement J
Form of Agreement of Amalgamation K
Form of Note L
ANNEXES
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Company Schedules Annex A
Parent Schedules Annex B
-v-
<PAGE>
AGREEMENT AND PLAN OF AMALGAMATION
This Agreement and Plan of Amalgamation (this "Agreement") is made and
entered into as of September 5, 2000, by and among Numerical Technologies, Inc.,
a Delaware corporation ("Parent"), Numerical Nova Scotia Company, a Nova Scotia
unlimited liability company and wholly-owned subsidiary of Parent ("Numerical
ULC"), Numerical Acquisition Limited, a Nova Scotia limited liability company
and wholly-owned subsidiary of Numerical ULC ("Amalgamation Sub"), Cadabra
Design Automation, Inc., a Nova Scotia limited liability company (the
"Company"), 3047725 Nova Scotia Limited, a Nova Scotia limited liability company
("ML Holdco"), Martin Lefebvre, an individual, and Faysal Sohail, an individual.
RECITALS
A. Upon the terms and subject to the conditions of this Agreement and in
accordance with the Companies Act (Nova Scotia) (the "Companies Act"), Parent,
Amalgamation Sub, the Company and ML Holdco intend to enter into a business
combination transaction.
B. The Board of Directors of the Company (i) has determined that the
Amalgamation (as defined herein) is consistent with and in furtherance of the
long-term business strategy of the Company and is fair to, and in the best
interests of, the Company and its shareholders, (ii) has approved this
Agreement, the Amalgamation and the other transactions contemplated by this
Agreement, and (iii) has determined to recommend that the shareholders of the
Company adopt and approve this Agreement and approve the Amalgamation.
C. The Board of Directors of Parent have approved this Agreement, the
Amalgamation and the other transactions contemplated by this Agreement
D. Concurrently with the execution of this Agreement, and as a condition
and inducement to Parent's willingness to enter into this Agreement, certain
shareholders of the Company holding in the aggregate approximately seventy-six
percent (76%) of the Company's outstanding shares of capital stock are entering
into Voting Agreements in substantially the form attached hereto as Exhibit A
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(the "Voting Agreements").
E. As a condition to the Closing, Parent shall provide to the Company
shareholders certain rights with respect to the registration under the U.S.
Securities Act of 1933, as amended (the "Securities Act"), of the resale of the
Parent common stock issuable upon the exchange of shares of Amalco issued to
such shareholders, on the terms set forth in a registration rights agreement in
substantially the form attached hereto as Exhibit B (the "Registration Rights
---------
Agreement").
F. As a condition to the Closing and an inducement to the Parent to enter
into this Agreement, (1) Martin Lefebvre and Faysal Sohail shall enter into
employment agreements in substantially the form attached as Exhibits C and D
---------- -
hereto, respectively (the "Management Employment Agreements") and (2) the
persons identified on Exhibit E (the "Key Employees")
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<PAGE>
shall enter into employment and noncompetition agreements in substantially the
form attached hereto as Exhibit F (the "Employment Agreements").
---------
G. The parties intend, by executing this Agreement, to adopt a plan of
reorganization within the meaning of Section 368 of the United States Internal
Revenue Code of 1986, as amended (the "Code"). The parties intend that the
Amalgamation shall also constitute a tax-deferred transfer in accordance with
the provisions of Section 87 of the Income Tax Act (Canada) (the "ITA"). The
subsequent reorganization of the Amalco Class A Shares into Exchangeable Shares
shall qualify as a tax deferred reorganization in accordance with the provisions
of Section 86 of the ITA.
H. The parties intend that the Amalgamation shall qualify for accounting
treatment under United States generally accepted accounting principles ("U.S.
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