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Title: |
Agreement and Plan of Reorganization |
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Date: |
2000 |
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Preview shows 27KB of 273KB total |
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$66 |
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ID: |
#1425543 |
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AGREEMENT AND PLAN OF REORGANIZATION
BY AND AMONG
LYNUXWORKS, INC.
LWORKS, INC.
INTEGRATED SOFTWARE & DEVICES CORPORATION
AND WITH RESPECT TO ARTICLES VII AND X ONLY
REZA SOLIMAN-NOORI
AS SHAREHOLDER REPRESENTATIVE
AND
FIRSTAR BANK, N.A.
AS ESCROW AGENT
Dated as of July 21, 2000
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
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<S> <C>
ARTICLE I THE MERGER...................................................................... 1
1.1 The Merger..................................................................... 1
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1.2 Effective Time................................................................. 2
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1.3 Effect of the Merger........................................................... 2
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1.4 Articles of Incorporation; Bylaws.............................................. 2
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1.5 Directors and Officers......................................................... 2
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1.6 Effect of Merger on Capital Stock of the Constituent Corporations.............. 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 Capital Stock........................... 5
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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 Taking of Necessary Action; Further Action..................................... 6
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ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................................. 6
2.1 Organization and Authority of the Company...................................... 6
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2.2 Company Capital Structure...................................................... 7
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2.3 Subsidiaries................................................................... 8
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2.4 Authority...................................................................... 8
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2.5 No Conflict.................................................................... 9
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2.6 Consents....................................................................... 9
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2.7 Company Financial Statements................................................... 9
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2.8 Accounts Receivable............................................................ 10
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2.9 Inventory...................................................................... 10
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2.10 No Undisclosed Liabilities..................................................... 10
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2.11 No Changes..................................................................... 10
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2.12 Tax and Other Returns and Reports.............................................. 12
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2.13 Restrictions on Business Activities............................................ 14
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2.14 Title of Properties; Absence of Liens and Encumbrances; Condition of
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Equipment...................................................................... 14
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2.15 Intellectual Property.......................................................... 15
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2.16 Agreements, Contracts and Commitments.......................................... 16
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2.17 Interested Party Transactions.................................................. 18
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2.18 Litigation..................................................................... 18
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2.19 Environmental Matters.......................................................... 18
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2.20 Brokers' and Finders' Fees; Third Party Expenses............................... 19
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2.21 Employee Matters and Benefit Plans............................................. 20
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2.22 Compliance with Legal Requirements............................................. 23
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2.23 Insurance...................................................................... 23
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</TABLE>
-i-
<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
<CAPTION>
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<S> <C>
2.24 Employees...................................................................... 23
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2.25 Product Warranty............................................................... 23
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2.26 Product Liability; Product Recalls, etc........................................ 24
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2.27 Books and Records.............................................................. 24
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2.28 Customers and Suppliers........................................................ 24
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2.29 Complete Copies of Materials................................................... 24
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2.30 Representations Complete....................................................... 24
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ARTICLE III REPRESENTATIONS AND WARRANTIES OF PARENT AND
MERGER SUB........................................................................... 25
3.1 Organization, Standing and Power............................................... 25
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3.2 Capital Structure.............................................................. 25
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3.3 Capital Resources.............................................................. 26
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3.4 Authority...................................................................... 26
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3.5 No Conflict.................................................................... 26
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3.6 Consents....................................................................... 27
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3.7 Absence of Certain Changes or Events........................................... 27
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3.8 Absence of Liens and Encumbrances.............................................. 27
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3.9 Parent Financial Statements.................................................... 27
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3.10 Minute Books................................................................... 28
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3.11 No Undisclosed Liabilities..................................................... 28
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3.12 Tax and Other Returns and Reports.............................................. 28
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3.13 Restrictions on Business Activities............................................ 30
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3.14 Intellectual Property.......................................................... 30
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3.15 Agreements, Contracts and Commitments.......................................... 30
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3.16 Interested Party Transactions.................................................. 32
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3.17 Litigation..................................................................... 32
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3.18 Compliance With Laws........................................................... 33
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3.19 Environmental Matters.......................................................... 33
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3.20 Brokers' and Finders' Fees; Third Party Expenses............................... 34
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3.21 Employee Matters and Benefit Plans............................................. 34
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3.22 Compliance with Legal Requirements............................................. 37
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3.23 Insurance...................................................................... 37
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3.24 Product Warranty............................................................... 38
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3.25 Product Liability; Product Recalls, etc........................................ 38
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3.26 Books and Records.............................................................. 38
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3.27 Customers and Suppliers........................................................ 38
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3.28 Complete Copies of Materials................................................... 38
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3.29 Representations Complete....................................................... 38
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ARTICLE IV CONDUCT PRIOR TO THE EFFECTIVE TIME............................................ 39
4.1 Conduct of Business of the Company............................................. 39
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</TABLE>
-ii-
<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
<CAPTION>
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<S> <C>
4.2 Conduct of Business of the Parent.............................................. 41
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4.3 No Solicitation................................................................ 43
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ARTICLE V ADDITIONAL AGREEMENTS........................................................... 44
5.1 Preparation of Permit Application, Hearing Request, Hearing Notice and
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Information Statement.......................................................... 44
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5.2 Shareholder Approval........................................................... 44
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5.3 Access to Information.......................................................... 44
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5.4 Confidentiality................................................................ 45
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5.5 Expenses....................................................................... 45
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5.6 Public Disclosure.............................................................. 45
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5.7 Consents....................................................................... 45
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5.8 Reasonable Efforts............................................................. 45
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5.9 Securities Laws Compliance..................................................... 45
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5.10 Notification of Certain Matters; Financial Statements.......................... 46
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5.11 Additional Documents and Further Assurances.................................... 46
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5.12 Notice to Holders of Company Options and Company Warrants...................... 47
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5.13 Employee Plans and Benefit Arrangements........................................ 47
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5.14 Reorganization under Section 368(a) of the Code................................ 47
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5.15 Period of Employment........................................................... 47
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5.16 Shareholder Loans.............................................................. 47
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5.17 Registration on Form S-8....................................................... 47
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5.18 Offer Letters.................................................................. 48
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5.19 Visa Applications.............................................................. 48
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5.20 "Market Stand-Off" Agreement................................................... 48
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ARTICLE VI CONDITIONS TO THE MERGER....................................................... 48
6.1 Conditions to Obligations of Each Party to Effect the Merger................... 48
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6.2 Additional Conditions to Obligations of Company................................ 49
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6.3 Additional Conditions to the Obligations of Parent and Merger Sub.............. 49
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ARTICLE VII SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ESCROW............................ 51
7.1 Survival of Representations, Warranties and Covenants.......................... 51
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7.2 Escrow Arrangements............................................................ 51
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7.3 Shareholder Representative..................................................... 54
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7.4 Escrow Agent................................................................... 55
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7.5 Shareholder Claims Against Parent.............................................. 58
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</TABLE>
-iii-
<PAGE>
TABLE OF CONTENTS
(continued)
<TABLE>
<CAPTION>
Page
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<S> <C>
ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER............................................ 59
8.1 Termination.................................................................... 59
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8.2 Effect of Termination.......................................................... 60
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8.3 Amendment...................................................................... 60
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8.4 Extension; Waiver.............................................................. 60
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ARTICLE IX DEFINITIONS.................................................................... 61
9.1 Defined Terms.................................................................. 61
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ARTICLE X GENERAL PROVISIONS.............................................................. 67
10.1 Notices........................................................................ 67
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10.2 Interpretation................................................................. 68
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10.3 Counterparts................................................................... 69
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10.4 Entire Agreement; Assignment................................................... 69
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10.5 Severability................................................................... 69
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10.6 Other Remedies................................................................. 69
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10.7 Governing Law.................................................................. 69
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10.8 Rules of Construction.......................................................... 69
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10.9 No Third Party Beneficiary..................................................... 70
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</TABLE>
-iv-
<PAGE>
Exhibit 2.1
AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the "Agreement") is made and
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entered into as of July 21, 2000 by and among Integrated Software & Devices
Corporation, a California corporation (the "Company"), LynuxWorks, Inc., a
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California corporation ("Parent"), LWorks, Inc., a California corporation and a
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wholly-owned subsidiary of Parent ("Merger Sub"), and, with respect to the
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matters set forth in Articles VII and X hereof only, Reza Soliman-Noori as the
Shareholder Representative and Firstar Bank, N.A. as Escrow Agent. Capitalized
terms used herein and not otherwise defined herein shall have the meanings given
to such terms in Article IX hereof.
RECITALS
A. The Boards of Directors of each of the Company, Parent and Merger Sub
believe it is in the best interests of each company and their respective
shareholders that Parent acquire the Company through the statutory merger of
Merger Sub with and into the Company (the "Merger") and, in furtherance thereof,
------
have approved the Merger.
B. Pursuant to the Merger, among other things, (i) all of the issued and
outstanding shares of capital stock of the Company (other than Dissenting
Shares) shall be converted into the right to receive consideration from Parent,
(ii) all of the issued and outstanding options to acquire any shares of Company
Common shall be assumed by Parent at the Effective Time, and (iii) all of the
issued and outstanding warrants and other rights to acquire any shares of
capital stock of the Company shall be assumed by Parent at the Effective Time.
C. Concurrent with the execution of this Agreement, as a material
inducement to Parent and Merger Sub to enter into this Agreement, certain
employees of the Company are entering into employment and non-competition
agreements with Parent (the "Employment and Non-Competition Agreements") in the
-----------------------------------------
form of Exhibit B attached hereto.
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D. The Company, Parent and Merger Sub desire to make certain
representations and warranties and other agreements in connection with the
Merger.
NOW, THEREFORE, in consideration of the covenants, promises and
representations set forth herein, and for other good and valuable consideration,
the parties agree as follows:
ARTICLE I
THE MERGER
1.1 The Merger. Subject to and upon the terms and conditions of this
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Agreement and the applicable provisions of the California General Corporation
Law ("California Law"), Merger Sub shall be merged with and into the Company,
--------------
the separate corporate existence of Merger Sub shall cease and the Company shall
continue as the surviving corporation and as a wholly-owned
<PAGE>
subsidiary of Parent. The surviving corporation after the Merger is sometimes
referred to hereinafter as the "Surviving Corporation."
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1.2 Effective Time. Unless this Agreement is earlier terminated
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pursuant to Section 8.1, the closing of the Merger (the "Closing") will take
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place as promptly as practicable, but no later than five (5) business days,
following satisfaction or waiver of the conditions set forth in Article VI, at
the offices of Wilson, Sonsini, Goodrich & Rosati, 650 Page Mill Road, Palo
Alto, California, unless another place or time is agreed to in writing by Parent
and the Company. The date upon which the Closing actually occurs is herein
referred to as the "Closing Date." On the Closing Date, the parties hereto shall
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cause the Merger to be consummated by filing an Agreement of Merger (or like
instrument) and the accompanying officers' certificates, each in the form agreed
to by the parties, with the Secretary of State of the State of California (the
"Agreement of Merger"), in accordance with the relevant provisions of California
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