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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Neustar Inc

Date:

2006

Size:

Preview shows 38KB of 235KB total

Price:

$87

ID:

#1367469

 

 

► Plans ► Agreements ► Agreements & Plans of Merger

 

 

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EXECUTION
 
Agreement and Plan of Merger
Dated as of April 19, 2006
among
NeuStar, Inc.
UDNS Merger Sub, Inc.,
UltraDNS Corporation
and
Ron Lachman,
as the Holder Representative
 

 


 

TABLE OF CONTENTS
         
    Page
ARTICLE I DEFINITIONS
    2  
 
       
SECTION 1.1. Certain Definitions
    2  
 
       
ARTICLE II THE MERGER
    14  
 
       
SECTION 2.1. The Merger
    14  
SECTION 2.2. Effective Time
    14  
SECTION 2.3. Effects of the Merger
    15  
SECTION 2.4. Certificate of Incorporation and Bylaws
    15  
SECTION 2.5. Board of Directors
    15  
SECTION 2.6. Officers
    15  
SECTION 2.7. Conversion of Securities
    15  
SECTION 2.8. Payment of Merger Consideration; Other Payments
    16  
SECTION 2.9. Appraisal Rights
    21  
SECTION 2.10. Withholding Rights
    21  
SECTION 2.11. Lost Certificates
    21  
SECTION 2.12. Closing; Purchase Price Adjustments
    22  
SECTION 2.13. Post-Closing Purchase Price Adjustments
    23  
SECTION 2.14. Further Assurances
    25  
 
       
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY
    25  
 
       
SECTION 3.1. Organization
    25  
SECTION 3.2. Subsidiaries
    25  
SECTION 3.3. Authorization
    25  
SECTION 3.4. Capitalization
    26  
SECTION 3.5. Noncontravention
    27  
SECTION 3.6. Government Consents and Approvals
    27  
SECTION 3.7. Financial Statements
    27  
SECTION 3.8. Absence of Certain Changes
    29  
SECTION 3.9. Litigation
    31  
SECTION 3.10. Material Contracts
    31  
SECTION 3.11. Real Property
    32  
SECTION 3.12. Personal Property
    33  
SECTION 3.13. Compliance with Laws; Permits
    33  
SECTION 3.14. Taxes
    34  
SECTION 3.15. Intellectual Property
    36  
SECTION 3.16. Compliance With Environmental Laws
    40  
SECTION 3.17. Employees; Labor Matters
    41  
SECTION 3.18. ERISA
    43  
SECTION 3.19. Insurance
    44  
SECTION 3.20. Government Contracts
    44  
SECTION 3.21. Bank Accounts
    45  

i


 

         
SECTION 3.22. Company Transaction Expenses
    45  
SECTION 3.23. Ethical Practices
    45  
SECTION 3.24. Affiliate Transactions
    45  
SECTION 3.25. Customers
    46  
SECTION 3.26. Accounts Receivable and Payable
    46  
SECTION 3.27. Books and Records
    46  
SECTION 3.28. Telecom Service Providers
    46  
SECTION 3.29. Brokers
    47  
 
       
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB
    47  
 
       
SECTION 4.1. Organization
    47  
SECTION 4.2. Authorization
    47  
SECTION 4.3. Noncontravention
    47  
SECTION 4.4. Government Consents and Approvals
    48  
SECTION 4.5. No Prior Activities
    48  
SECTION 4.6. Financial Ability
    48  
SECTION 4.7. Brokers
    48  
 
       
ARTICLE V COVENANTS
    48  
 
       
SECTION 5.1. Conduct of Business of the Company
    48  
SECTION 5.2. Approval of Stockholders
    51  
SECTION 5.3. Access to Information
    51  
SECTION 5.4. Exclusivity
    51  
SECTION 5.5. Cooperation
    52  
SECTION 5.6. Public Announcements
    53  
SECTION 5.7. Notification of Certain Matters
    53  
SECTION 5.8. Company Transaction Expenses
    53  
SECTION 5.9. Termination of Certain Agreements
    53  
SECTION 5.10. Payoff Letters
    53  
SECTION 5.11. Employee Matters
    54  
SECTION 5.12. Indemnification of Officers and Directors
    54  
SECTION 5.13. Taxes
    55  
SECTION 5.14. Cancellation of Options
    58  
 
       
ARTICLE VI CONDITIONS TO CONSUMMATION OF THE MERGER
    58  
 
       
SECTION 6.1. Conditions to Each Partys Obligations to Effect the Merger
    58  
SECTION 6.2. Conditions to the Obligations of Parent and Merger Sub
    58  
SECTION 6.3. Conditions to the Obligations of the Company
    59  
 
       
ARTICLE VII TERMINATION, AMENDMENT AND WAIVER
    60  
 
       
SECTION 7.1. Termination
    60  
SECTION 7.2. Effect of Termination
    61  
SECTION 7.3. Amendment
    61  
SECTION 7.4. Extension; Waiver
    61  

ii


 

         
ARTICLE VIII INDEMNIFICATION
    61  
 
       
SECTION 8.1. Survival of Representations and Covenants
    61  
SECTION 8.2. Indemnification
    62  
SECTION 8.3. Manner of Indemnification
    64  
SECTION 8.4. Notice of Claims
    64  
SECTION 8.5. Third-Party Claims
    65  
SECTION 8.6. Mitigation; Exclusivity of Remedy
    66  
SECTION 8.7. Holder Representative
    66  
SECTION 8.8. Tax Treatment
    68  
 
       
ARTICLE IX MISCELLANEOUS
    68  
 
       
SECTION 9.1. Entire Agreement
    68  
SECTION 9.2. Assignment
    69  
SECTION 9.3. Severability
    69  
SECTION 9.4. Expenses
    69  
SECTION 9.5. Governing Law
    69  
SECTION 9.6. Jurisdiction; Forum
    69  
SECTION 9.7. Waiver of Jury Trial
    69  
SECTION 9.8. Specific Performance
    70  
SECTION 9.9. Notices
    70  
SECTION 9.10. Parties in Interest
    71  
SECTION 9.11. Counterparts; Facsimiles
    71  

iii


 

EXHIBITS
Exhibits:
Exhibit A: Individuals Party to the Employment Agreements
Exhibit B: Form of Employment Letter
Exhibit C: Form of Escrow Agreement
Exhibit D: Knowledge Group
Exhibit E: Net Working Capital Methodology

iv


 

AGREEMENT AND PLAN OF MERGER
     THIS AGREEMENT AND PLAN OF MERGER, dated as of April 19, 2006 (this Agreement), is by and among UltraDNS Corporation, a Delaware corporation (the Company), NeuStar, Inc., a Delaware corporation (Parent), UDNS Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (Merger Sub), and Ron Lachman, solely in his capacity as the Holder Representative hereunder.
R E C I T A L S
          WHEREAS, Parent has formed Merger Sub for the purpose of merging it with and into the Company in order to acquire the Company as a wholly owned subsidiary;
          WHEREAS, the respective Boards of Directors of Parent, Merger Sub and the Company have approved and declared advisable the merger of Merger Sub with and into the Company upon the terms and subject to the conditions of this Agreement, and the respective Boards of Directors of Merger Sub and the Company have approved and adopted this Agreement;
          WHEREAS, the respective Boards of Directors of Merger Sub and the Company have determined that the Merger is in the best interest of their respective stockholders;
          WHEREAS, certain stockholders of the Company have entered into a voting agreement with Parent, dated the date hereof (the Voting Agreement), agreeing, among other things, to support the transactions contemplated by this Agreement;
          WHEREAS, the individuals listed on Exhibit A hereto have received employment letters from Parent in the form attached hereto as Exhibit B that will become effective as of the Effective Time;
          WHEREAS, Parent, Merger Sub and the Company desire to make certain representations, warranties, covenants and agreements in connection with the Merger and also to prescribe various conditions to the Merger; and
          WHEREAS, for certain limited purposes, and subject to the terms set forth herein, the Holder Representative shall serve as a representative of the holders of the outstanding shares of the Companys capital stock as of the Effective Time.
A G R E E M E N T
          NOW THEREFORE, in consideration of the respective covenants and promises contained herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:

1


 

ARTICLE I
DEFINITIONS
          SECTION 1.1. Certain Definitions. As used herein, the terms below shall have the following meanings. Any of such terms, unless the context otherwise requires, may be used in the singular or plural, depending upon the reference.
          Affiliate means, as applied to any Person, (a) any other Person directly or indirectly controlling, controlled by or under common control with, that Person, (b) any other Person that owns or controls 10% or more of any class of equity securities (including any equity securities issuable upon the exercise of any option or convertible security) of that Person or any of its Affiliates, or (c) any director, partner, officer, manager, agent, employee or relative of such Person. For the purposes of this definition, control (including with correlative meanings, the terms controlling, controlled by, and under common control with) as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through ownership of voting securities or by contract or otherwise.
          Aggregate Series A Preference Amount means the product of (x) the Series A Preference Amount and (y) the number of shares of Series A Preferred Stock outstanding immediately prior to the Effective Time.
          Aggregate Series B Preference Amount means the product of (x) the Series B Preference Amount and (y) the number of shares of Series B Preferred Stock outstanding immediately prior to the Effective Time.
          Agreement has the meaning specified in the preamble of this Agreement.
          Annual Financial Statements has the meaning specified in Section 3.7(a).
          Applicable Law means, with respect to any Person, any federal, state or local statute, law, ordinance, policy, guidance, rule, administrative interpretation, regulation, order, writ, injunction, directive, judgment, award, decree or other requirement, of any Governmental Entity (including any Environmental Law) applicable to such Person or its respective properties or assets.
          Arbitrator has the meaning specified in Section 2.13(c).
          Audited Financial Statements has the meaning specified in Section 3.7(a).
          Business Day means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Applicable Law to be closed in New York, New York.
          Cap has the meaning specified in Section 8.2(d).
          Cash means an amount equal to the total amount of cash and cash equivalents of the Company, determined in accordance with GAAP.

2


 

          CERCLA means the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. 9601 et seq.).
          Certificate of Merger has the meaning specified in Section 2.2.
          Certificates has the meaning specified in Section 2.8(b).
          Claim Notice has the meaning specified in Section 8.4(a).
          Closing has the meaning specified in Section 2.12(a).
          Closing Date has the meaning specified in Section 2.12(a).
          Closing Date Balance Sheet has the meaning specified in Section 2.13(b).

 

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