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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

NetGear, Inc.

Date:

2006

Size:

Preview shows 41KB of 166KB total

Price:

$48

ID:

#2267943

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
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AGREEMENT AND PLAN OF MERGER
by and among
NETGEAR, INC.,
SKJM HOLDINGS CORPORATION,
SKIPJAM CORP.,
MICHAEL SPILO,
JONATHAN DAUB,
FRANCIS REFOL,
DENNIS ALDOVER
and
ZHICHENG QIU
Dated as of July 26, 2006

 


 

TABLE OF CONTENTS
             
        Page
RECITALS
       
   
 
       
ARTICLE I
       
   
 
       
DEFINITIONS
       
   
 
       
1.1.  
Specific Definitions
    2  
1.2.  
Other Terms
    9  
1.3.  
Interpretation
    9  
   
 
       
ARTICLE II
       
   
 
       
THE MERGER
       
   
 
       
2.1.  
The Merger
    10  
2.2.  
Closing
    10  
2.3.  
Effective Time
    10  
2.4.  
The Certificate of Incorporation
    11  
2.5.  
The Bylaws
    11  
2.6.  
Directors
    11  
2.7.  
Officers
    11  
   
 
       
ARTICLE III
       
   
 
       
MERGER CONSIDERATION; EXCHANGE OF SHARES
       
   
 
       
3.1.  
Effect on Capital Stock
    11  
3.2.  
Escrow Fund
    12  
3.3.  
Exchange of Certificates
    12  
3.4.  
Adjustments to Prevent Dilution
    13  
   
 
       
ARTICLE IV
       
   
 
       
REPRESENTATIONS AND WARRANTIES OF SKIPJAM
       
   
 
       
4.1.  
Organization, Good Standing and Qualification
    14  
4.2.  
Books and Records
    14  
4.3.  
Capital Structure
    15  
4.4.  
Corporate Authority; Approval and Fairness
    15  
4.5.  
No Conflict; Governmental Filings
    16  
4.6.  
Financial Statements
    17  
4.7.  
Undisclosed Liabilities; etc
    17  

- i -


 

             
        Page
4.8.  
Absence of Certain Changes
    17  
4.9.  
Litigation and Liabilities
    20  
4.10.  
Employee Benefits
    20  
4.11.  
Compliance with Laws; Permits
    23  
4.12.  
Takeover Statutes
    23  
4.13.  
Material Contracts
    23  
4.14.  
Environmental Matters
    25  
4.15.  
Accounting and Tax Matters
    26  
4.16.  
Labor Matters
    27  
4.17.  
Insurance
    29  
4.18.  
Intellectual Property
    29  
4.19.  
Title to Properties; Encumbrances
    33  
4.20.  
Suppliers
    34  
4.21.  
Product Warranties
    34  
4.22.  
Certain Payments
    34  
4.23.  
Brokers and Finders
    35  
   
 
       
ARTICLE V
       
   
 
       
REPRESENTIONS AND WARRANTIES OF NETGEAR AND MERGERSUB
       
   
 
       
5.1.  
Organization, Good Standing and Qualification
    35  
5.2.  
Corporate Authority
    35  
5.3.  
No Conflict; Governmental Filings
    35  
5.4.  
Capitalization of Merger Sub
    36  
5.5.  
Litigation
    36  
   
 
       
ARTICLE VI
       
   
 
       
CONDUCT PRIOR TO CLOSING
       
   
 
       
6.1.  
Interim Operations of SkipJam
    36  
   
 
       
ARTICLE VII
       
   
 
       
ADDITIONAL AGREEMENTS
       
   
 
       
7.1.  
Information
    39  
7.2.  
Access
    40  
7.3.  
No Solicitation of Transactions
    40  
7.4.  
Regulatory Filings
    41  
7.5.  
Publicity
    41  
7.6.  
Employees and Independent Contractors
    41  
7.7.  
Tax Matters
    41  
7.8.  
Cooperation
    42  
7.9.  
Resignations
    42  
7.10.  
Expenses
    42  

- ii -


 

             
        Page
7.11.  
Further Assurances
    43  
   
 
       
ARTICLE VIII
       
   
 
       
CONDITIONS
       
   
 
       
8.1.  
Conditions to Each Partys Obligation to Effect the Merger
    43  
8.2.  
Conditions to Obligations of NETGEAR and Merger Sub
    43  
8.3.  
Conditions to Obligation of SkipJam
    45  
   
 
       
ARTICLE IX
       
   
 
       
TERMINATION
       
   
 
       
9.1.  
Termination by Mutual Consent
    45  
9.2.  
Termination by Either NETGEAR or SkipJam
    46  
9.3.  
Termination by NETGEAR
    46  
9.4.  
Termination by SkipJam
    46  
9.5.  
Effect of Termination and Abandonment
    46  
   
 
       
ARTICLE X
       
   
 
       
INDEMNIFICATION
       
   
 
       
10.1.  
Survival of Representations and Warranties, Covenants and Agreements; Right to Indemnification Not Affected by Knowledge
    47  
10.2.  
Indemnification by the Sole Stockholder and the Designated Principals
    47  
10.3.  
Procedures for Indemnification
    49  
10.4.  
Sole Stockholder and Designated Principals Representative
    50  
   
 
       
ARTICLE XI
       
   
 
       
MISCELLANEOUS AND GENERAL
       
   
 
       
11.1.  
Modification or Amendment
    51  
11.2.  
Waiver of Conditions
    52  
11.3.  
Counterparts
    52  
11.4.  
GOVERNING LAW; WAIVER OF JURY TRIAL; VENUE.
    52  
11.5.  
Notices
    53  
11.6.  
Entire Agreement
    54  
11.7.  
No Third Party Beneficiaries
    54  
11.8.  
Obligations of NETGEAR and of SkipJam
    54  
11.9.  
Severability
    54  
11.10.  
Assignment
    54  
11.11.  
Specific Performance
    54  
11.12.  
Schedules and Exhibits
    54  

- iii -


 

EXHIBITS
EXHIBIT A Form of Sole Stockholder Consent
EXHIBIT B Form of Escrow Agreement
EXHIBIT C Form of Berkowitz, Trager & Trager LLC Opinion

- iv -


 

AGREEMENT AND PLAN OF MERGER
          AGREEMENT AND PLAN OF MERGER (hereinafter called this Agreement), dated as of July 26, 2006, among NETGEAR, Inc., a Delaware corporation (NETGEAR), SKJM HOLDINGS CORPORATION, a Delaware corporation and a wholly owned subsidiary of NETGEAR (Merger Sub), SKIPJAM CORP., a Delaware corporation (SkipJam), MICHAEL SPILO, the sole stockholder of SkipJam (the Sole Stockholder) and in his capacity as Stockholders Representative, JONATHAN DAUB, FRANCIS REFOL, DENNIS ALDOVER and ZHICHENG QIU.
RECITALS
          WHEREAS, the respective boards of directors of each of NETGEAR, Merger Sub and SkipJam have approved the merger of Merger Sub with and into SkipJam (the Merger) upon the terms and subject to the conditions set forth in this Agreement and have approved and declared advisable this Agreement;
          WHEREAS, the Sole Stockholder owns all of the outstanding shares of capital stock and other equity interests of SkipJam;
          WHEREAS, as a condition to closing and an inducement to NETGEAR entering into this Agreement, Michael Spilo, Jonathan Daub, Francis Refol, Dennis Aldover and Zhicheng Qiu (together, the Designated Principals) will enter into certain employment agreements with NETGEAR on or before the Closing Date, each of which agreements shall become effective not later than the Closing; and
          WHEREAS, contemporaneously with the execution and delivery of this Agreement, and as a condition and inducement to NETGEARs and Merger Subs willingness to enter into this Agreement, the Sole Stockholder of SkipJam has executed and delivered a stockholders consent dated as of the date hereof and substantially in the form attached hereto as Exhibit A (the Sole Stockholder Consent) consenting to, approving and adopting this Agreement and the Merger;
          WHEREAS, SkipJam, NETGEAR and Merger Sub desire to make certain representations, warranties, covenants and agreements in connection with this Agreement.
          NOW, THEREFORE, in consideration of the premises, and of the representations, warranties, covenants and agreements contained herein, the parties hereto agree as follows:

- 1 -


 

ARTICLE I
DEFINITIONS
          1.1. Specific Definitions. For purposes of this Agreement, the following terms have the meanings specified or referred to in this Article I:
     2005 Financial Statements shall have the meaning set forth in Section 4.6.
     Acquisition Proposal shall mean (i) any proposal or offer with respect to a merger, joint venture, partnership, consolidation, dissolution, liquidation, tender offer, recapitalization, reorganization, share exchange, business combination or similar transaction involving SkipJam and (ii) any proposal or offer to acquire in any manner, directly or indirectly, 15% or more of the total voting power or of any class of equity securities of SkipJam, or 15% or more of the total assets of SkipJam, in each case other than the transactions contemplated by this Agreement.
     Affiliate means with respect to any Person, any director or executive officer of such Person and any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the person specified.
     Agreement shall have the meaning set forth in the paragraph preceding the Recitals.
     Assets shall mean all of the properties and assets (real, personal or mixed, tangible or intangible, and including Intellectual Property), used or held for use in connection with or material to the continued operation of the business of SkipJam.
     Balance Sheet Date shall have the meaning set forth in Section 4.6.

 

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