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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Citibank, NA; J.P. Morgan Securities Inc.; Provide Commerce Inc; Provide Commerce, Inc.; Baker Botts

Date:

2005

Size:

Preview shows 51KB of 202KB total

Price:

$59

ID:

#1551295

 

 

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AGREEMENT AND PLAN OF MERGER

 

by and among

 

LIBERTY MEDIA CORPORATION,

 

BAREFOOT ACQUISITION, INC.

 

and

 

PROVIDE COMMERCE, INC.

 

Dated as of December 4, 2005

 



TABLE OF CONTENTS

 

          Page

ARTICLE I DEFINITIONS AND CONSTRUCTION    1

1.1

  

Certain Definitions

   1

1.2

  

Additional Definitions

   7

1.3

  

Terms Generally

   8
ARTICLE II THE MERGER AND RELATED MATTERS    9

2.1

  

The Merger

   9

2.2

  

Closing

   10

2.3

  

Conversion of Securities

   11

2.4

  

Exchange of Shares

   12

2.5

  

Dissenting Shares

   14
ARTICLE III CERTAIN ACTIONS    14

3.1

  

Stockholder Meeting

   14

3.2

  

Proxy Statement

   15

3.3

  

State Takeover Statutes

   16

3.4

  

Reasonable Best Efforts

   16

3.5

  

Employee Matters

   17
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY    18

4.1

  

Organization and Qualification

   18

4.2

  

Authorization and Validity of Agreement

   18

4.3

  

Capitalization.

   19

4.4

  

SEC Reports and Financial Statements; Undisclosed Liabilities

   21

4.5

  

No Approvals or Notices Required; No Conflict with Instruments

   23

4.6

  

Investment Securities; Assets; No Subsidiaries or Equity Affiliates

   24

4.7

  

Absence of Certain Changes or Events

   24

4.8

  

Proxy Statement

   24

4.9

  

Legal Proceedings

   25

4.10

  

Licenses; Compliance with Laws and Regulatory Requirements

   25

4.11

  

Brokers or Finders

   26

4.12

  

Tax Matters

   27

4.13

  

Employee Matters

   29

4.14

  

Fairness Opinion

   31

4.15

  

Recommendation of the Company Board

   31

4.16

  

Vote Required

   31

4.17

  

Patents, Trademarks and Other Rights

   32

4.18

  

Certain Agreements, Affiliate Transactions and Insurance

   34

4.19

  

Not an Investment Company

   37

4.20

  

Takeover Statutes

   37

 

i


ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT    37

5.1

  

Organization and Qualification

   37

5.2

  

Authorization and Validity of Agreement

   38

5.3

  

No Approvals or Notices Required; No Conflict with Instruments

   38

5.4

  

Proxy Statement

   39

5.5

  

Available Funds

   39

5.6

  

Brokers or Finders

   39

5.7

  

No Prior Activities

   39
ARTICLE VI ADDITIONAL COVENANTS AND AGREEMENTS    40

6.1

  

Access to Information Concerning Properties and Records

   40

6.2

  

Confidentiality

   40

6.3

  

Public Announcements

   40

6.4

  

Conduct of the Companys Business Pending the Effective Time

   40

6.5

  

No Solicitation

   44

6.6

  

Expenses

   46

6.7

  

Actions by Merger Sub

   46

6.8

  

Defense of Litigation

   46

6.9

  

Indemnification of Directors and Officers

   46
ARTICLE VII CONDITIONS PRECEDENT    48

7.1

  

Conditions Precedent to the Obligations of Parent, Merger Sub and the Company

   48

7.2

  

Conditions Precedent to the Obligations of Parent and Merger Sub

   49

7.3

  

Conditions Precedent to the Obligations of the Company

   50
ARTICLE VIII TERMINATION    51

8.1

  

Termination by Mutual Consent

   51

8.2

  

Termination by Either Parent or the Company

   51

8.3

  

Termination by the Company

   51

8.4

  

Termination by Parent

   52

8.5

  

Effect of Termination and Abandonment

   52
ARTICLE IX MISCELLANEOUS    53

9.1

  

No Waiver or Survival of Representations, Warranties, Covenants and Agreements

   53

9.2

  

Notices

   54

9.3

  

Entire Agreement

   55

9.4

  

Assignment; Binding Effect; Benefit

   55

9.5

  

Amendment

   55

9.6

  

Extension; Waiver

   55

9.7

  

Headings

   56

9.8

  

Counterparts

   56

9.9

  

Governing Law and Venue; Waiver of Jury Trial

   56

9.10

  

Joint Participation in Drafting this Agreement

   57

 

ii


9.11

  

Severability

   57

9.12

  

Enforcement

   57

 

EXHIBITS

Exhibit 2.1(a)    Form of Certificate of Merger

 

SCHEDULES

 

Company Disclosure Schedule

 

iii


AGREEMENT AND PLAN OF MERGER

 

THIS AGREEMENT AND PLAN OF MERGER (this Agreement) is made as of this 4th day of December, 2005, by and among Liberty Media Corporation, a Delaware corporation (Parent), Barefoot Acquisition, Inc., a Delaware corporation (Merger Sub) and Provide Commerce, Inc., a Delaware corporation (the Company).

 

WHEREAS, the parties are entering into this Agreement to provide for the terms and conditions upon which the Company will be acquired by Parent by means of a merger of Merger Sub, a newly formed, wholly owned Subsidiary of Parent, with and into the Company (the Merger);

 

WHEREAS the respective Boards of Directors of Parent, Sub and the Company have approved and declared advisable this Agreement and the Merger on the terms and subject to the conditions set forth in this Agreement; and

 

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.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants, representations, warranties and agreements contained herein, the parties hereto agree as follows:

 

ARTICLE I

 

DEFINITIONS AND CONSTRUCTION

 

1.1 Certain Definitions. As used in this Agreement, the following terms shall have the following meanings unless the context otherwise requires:

 

An Affiliate of any Person shall mean any other Person that, directly or indirectly, controls or is controlled by or is under common control with such Person. A Person shall be deemed to control, be controlled by or be under common control with any other Person if such other Person possesses, directly or indirectly, power to direct or cause the direction of the management or policies of such Person whether through the ownership of voting securities or partnership interests, by contract or otherwise.

 

Agreement shall mean this Agreement and Plan of Merger, including all Exhibits and Schedules hereto.

 

Alternative Proposal shall mean (A) any proposal (whether or not in writing and whether or not delivered to the Companys stockholders generally), other than as contemplated by this Agreement or otherwise proposed by Parent or Merger Sub, regarding (i) a merger, consolidation, tender offer, share exchange or other business combination or similar transaction involving the Company, (ii) the issuance by the Company of any equity interest in or any voting securities of the Company which constitutes 20% or more of the total of such equity interests or


voting securities of the Company, (iii) the acquisition in any manner, directly or indirectly, of 20% or more of the assets of the Company, (iv) the acquisition by any Person of beneficial ownership or a right to acquire beneficial ownership of, or the formation of any group (as defined under Section 13(d) of the Exchange Act and the rules and regulations thereunder) which beneficially owns, or has the right to acquire beneficial ownership of, 20% or more of the then outstanding shares of capital stock of the Company or (v) any transaction the effect of which would be reasonably likely to prohibit, restrict or delay the consummation of the Merger or any of the other transactions contemplated by this Agreement; or (B) the occurrence of any of the transactions described in clauses (i)  (v) of (A) above or any public announcement of a proposal, plan or intention to do any of the foregoing or any agreement to engage in any of the foregoing.

 

Change of Control shall mean any (i) change in the direct or indirect record or beneficial ownership of any of the equity securities of the Company or any of its Subsidiaries, (ii) merger, consolidation, statutory share exchange or other transaction involving the Company or any of its Subsidiaries or (iii) change in the composition of the board of directors or other governing body of the Company or any of its Subsidiaries.

 

Change of Control Covenant shall mean any covenant, agreement or other provision pursuant to which the occurrence or existence of a Change of Control would result in a violation or breach of, constitute (with or without due notice or lapse of time or both) or permit any Person to declare a default or event of default under, give rise to any right of termination, cancellation, amendment, acceleration, repurchase, prepayment or repayment or to increased payments under, give rise to or accelerate any material obligation (including any obligation to, or to offer to, repurchase, prepay, repay or make increased payments) or result in the loss or modification of any material right or benefit under, or result in any Restriction or give any Person the right to obtain any Restriction on any capital stock or other securities or ownership interests pursuant to, or result in any Lien or give any Person the right to obtain any Lien on any material asset pursuant to, any Contract to which the Company is or becomes a party or to which the Company or any of its assets are or become subject or bound.


 

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