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Stockholder Agreement

 

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Title:

Stockholder Agreement

Entities:

Computer Associates International Inc.; Netegrity, Inc.; Pequot Capital Management Inc; Sullivan & Cromwell

Date:

2004

Size:

Preview shows 5KB of 24KB total

Price:

$36

ID:

#2354597

 

 

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                              STOCKHOLDER AGREEMENT


STOCKHOLDER AGREEMENT, dated as of October 6, 2004 (this "Agreement"),
among the stockholder set forth on the signature page hereto (the
"Stockholder"), Computer Associates International, Inc., a Delaware corporation
(the "Buyer"), and Nova Acquisition Corp., a Delaware corporation and wholly
owned subsidiary of the Buyer (the "Transitory Subsidiary"). Capitalized terms
used and not otherwise defined herein shall have the respective meanings
assigned to them in the Merger Agreement referred to below.

WHEREAS, concurrently with the execution of this Agreement, the Buyer,
Transitory Subsidiary and Netegrity, Inc., a Delaware corporation (the
"Company"), are entering into an Agreement and Plan of Merger, dated as of the
date hereof (the "Merger Agreement"), pursuant to which, upon the terms and
subject to the conditions thereof, Transitory Subsidiary will be merged with and
into the Company, and the Company will be the surviving corporation (the
"Merger"); and

WHEREAS, for the purpose of inducing the Buyer to enter into (and to
consummate the transactions contemplated by) the Merger Agreement, the Buyer has
required that the Stockholder agree, and the Stockholder is willing, to enter
into this Agreement.

NOW, THEREFORE, intending to be legally bound hereby, the parties hereby
agree as follows:

Section 1. Number of Shares Beneficially Owned.

(a) The Stockholder represents and warrants that, as of the date of
this Agreement, the Stockholder (A) has full and exclusive power to vote and
direct the voting of, and to dispose of and direct the disposition of, the
shares of Company Common Stock shown on the signature page hereto (the "Shares")
and (B) beneficially owns Company Stock Options to purchase shares of Common
Company Stock shown on the signature page hereto (the "Options"). Except for the
Shares and the Options and as otherwise disclosed on the signature page hereto,
neither Stockholder nor any of its Affiliates holds or beneficially owns, as of
the date hereof, any (i) shares of capital stock or voting securities of the
Company, (ii) securities of the Company convertible into or exchangeable for
shares of capital stock or voting securities of the Company or (iii) options or
other rights to acquire from the Company any capital stock, voting securities or
securities convertible into or exchangeable for capital stock or voting
securities of the Company.

Section 2. Voting of Subject Shares.

(a) The Stockholder covenants and agrees that, until the termination
of this Agreement in accordance with the terms hereof, at the Company Meeting or
any other meeting of the stockholders of the Company, however called, and at
every adjournment or postponement thereof, and in connection with any action by
written consent of the stockholders of the Company, such Stockholder will vote,
or cause to be voted, all of his, her or its Subject Shares (a) in favor of
adoption of the Merger Agreement, as the Merger Agreement may be modified or


{PAGE}

amended from time to time in a manner not adverse to the Stockholder (regardless
of whether the Company recommends to its stockholders the adoption of the Merger
Agreement), and (b) except with the express written consent of the Buyer,
against (i) any Acquisition Proposal and (ii) any action the consummation of
which would frustrate the purposes, or prevent or delay the consummation, of the
transactions contemplated by the Merger Agreement. For purposes of this
Agreement, the term "Subject Shares" shall mean (i) the Shares and (ii) any
other shares of Company Common Stock of which the Stockholder or its Affiliates
is or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act) during the Term, whether by way of purchase or through the conversion,
exercise or exchange, as the case may be, of any Company Stock Options or any
other options, rights or securities held by the Stockholder or any of its
Affiliates that are convertible into, or exercisable or exchangeable for, shares
of Company Common Stock.

(b) The Stockholder hereby revokes any and all previous proxies with
respect to the Subject Shares. The Stockholder hereby irrevocably (to the
fullest extent permitted by law) grants to, and appoints, the Buyer, and any
individual designated in writing by the Buyer, and each of them individually, as
its proxy and attorney-in-fact (with full power of substitution), for and in its

 

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