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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

Neustar Inc; Gibson, Dunn & Crutcher; Pepper Hamilton LLP

Date:

2006

Size:

Preview shows 48KB of 276KB total

Price:

$58

ID:

#2666297

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
► Services ► Legal

 

 

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Agreement and Plan of Merger
Dated as of November 27, 2006
among
NeuStar, Inc.
B&T Merger Sub, Inc.,
Followap, Inc.
and
Carmel V.C. Ltd. and Sequoia Seed Capital II (Israel) L.P,
as the Holder Representatives
     
 

 


 

TABLE OF CONTENTS
             
            Page
 
ARTICLE I DEFINITIONS   2
 
           
 
  SECTION 1.1.   Certain Definitions   2
 
           
ARTICLE II THE MERGER   15
 
           
 
  SECTION 2.1.   The Merger   15
 
  SECTION 2.2.   Effective Time   15
 
  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   17
 
  SECTION 2.9.   Appraisal Rights   21
 
  SECTION 2.10.   Withholding Rights   21
 
  SECTION 2.11.   Lost Certificates   22
 
  SECTION 2.12.   Closing   22
 
  SECTION 2.13.   Intentionally Omitted   23
 
  SECTION 2.14.   Further Assurances   23
 
           
ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY   23
 
           
 
  SECTION 3.1.   Organization   23
 
  SECTION 3.2.   Subsidiaries   24
 
  SECTION 3.3.   Authorization   24
 
  SECTION 3.4.   Capitalization   25
 
  SECTION 3.5.   Noncontravention   26
 
  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   33
 
  SECTION 3.12.   Personal Property   34
 
  SECTION 3.13.   Compliance with Laws; Permits   35
 
  SECTION 3.14.   Taxes   36
 
  SECTION 3.15.   Intellectual Property   39
 
  SECTION 3.16.   Compliance With Environmental Laws   46
 
  SECTION 3.17.   Employees; Labor Matters   46
 
  SECTION 3.18.   ERISA   49
 
  SECTION 3.19.   Insurance   52
 
  SECTION 3.20.   Government Contracts   52
 
  SECTION 3.21.   Bank Accounts   52

i


 

             
            Page
 
 
  SECTION 3.22.   Company Transaction Expenses   52
 
  SECTION 3.23.   Ethical Practices   52
 
  SECTION 3.24.   Affiliate Transactions   52
 
  SECTION 3.25.   Customers   53
 
  SECTION 3.26.   Accounts Receivable and Payable   53
 
  SECTION 3.27.   Books and Records   54
 
  SECTION 3.28.   Telecom Service Providers   54
 
  SECTION 3.29.   Brokers   54
 
           
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB   54
 
           
 
  SECTION 4.1.   Organization   54
 
  SECTION 4.2.   Authorization   54
 
  SECTION 4.3.   Noncontravention   55
 
  SECTION 4.4.   Government Consents and Approvals   55
 
  SECTION 4.5.   No Prior Activities   55
 
  SECTION 4.6.   Brokers   55
 
  SECTION 4.7.   Financing   55
 
           
ARTICLE V COVENANTS   56
 
           
 
  SECTION 5.1.   Conduct of Business of the Company   56
 
  SECTION 5.2.   Approval of Stockholders   58
 
  SECTION 5.3.   Access to Information   59
 
  SECTION 5.4.   Exclusivity   59
 
  SECTION 5.5.   Cooperation   60
 
  SECTION 5.6.   Public Announcements   60
 
  SECTION 5.7.   Notification of Certain Matters   61
 
  SECTION 5.8.   Company Transaction Expenses   61
 
  SECTION 5.9.   Termination of Certain Agreements   61
 
  SECTION 5.10.   Payoff Letters   61
 
  SECTION 5.11.   Employee Matters   61
 
  SECTION 5.12.   Indemnification of Officers and Directors   62
 
  SECTION 5.13.   Taxes   63
 
  SECTION 5.14.   Cancellation of Options   67
 
           
ARTICLE VI CONDITIONS TO CONSUMMATION OF THE MERGER   67
 
           
 
  SECTION 6.1.   Conditions to Each Party's Obligations to Effect the Merger   67
 
  SECTION 6.2.   Conditions to the Obligations of Parent and Merger Sub   68
 
  SECTION 6.3.   Conditions to the Obligations of the Company   69
 
           
ARTICLE VII TERMINATION, AMENDMENT AND WAIVER   70
 
           
 
  SECTION 7.1.   Termination   70
 
  SECTION 7.2.   Effect of Termination   70
 
  SECTION 7.3.   Amendment   71
 
  SECTION 7.4.   Extension; Waiver   71

ii


 

             
            Page
ARTICLE VIII INDEMNIFICATION   71
 
           
 
  SECTION 8.1.   Survival of Representations and Covenants   71
 
  SECTION 8.2.   Indemnification   71
 
  SECTION 8.3.   Manner of Indemnification   74
 
  SECTION 8.4.   Notice of Claims   75
 
  SECTION 8.5.   Third-Party Claims   75
 
  SECTION 8.6.   Mitigation; Exclusivity of Remedy   76
 
  SECTION 8.7.   Holder Representative   77
 
           
ARTICLE IX MISCELLANEOUS   79
 
           
 
  SECTION 9.1.   Entire Agreement   79
 
  SECTION 9.2.   Assignment   79
 
  SECTION 9.3.   Severability   79
 
  SECTION 9.4.   Expenses   80
 
  SECTION 9.5.   Governing Law   80
 
  SECTION 9.6.   Jurisdiction; Forum   80
 
  SECTION 9.7.   Waiver of Jury Trial   80
 
  SECTION 9.8.   Specific Performance   80
 
  SECTION 9.9.   Notices   80
 
  SECTION 9.10.   Parties in Interest   82
 
  SECTION 9.11.   Counterparts; Facsimiles   82

iii


 

EXHIBITS AND SCHEDULES
Exhibits:
Exhibit A: Form of Escrow Agreement
Exhibit B: Knowledge Group
Exhibit C: Form of Certificate of Merger
Exhibit D: Forms of Payoff Letters
Exhibit E: Forms of Encumbrance Release Documentation
Exhibit F: Form of Stockholder Consent
Exhibit G: Form of Employment Agreement
Exhibit H: Forms of Legal Opinions
Annexes:
Annex A: Form of Letter of Transmittal

iv


 

AGREEMENT AND PLAN OF MERGER
     THIS AGREEMENT AND PLAN OF MERGER, dated as of November 27, 2006 (this Agreement), is by and among Followap, Inc., a Delaware corporation (the Company), NeuStar, Inc., a Delaware corporation (Parent), B&T Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of Parent (Merger Sub), and Carmel V.C. Ltd. and Sequoia Seed Capital II (Israel) L.P., solely in their capacity as the Holder Representatives 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 Parent, 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, the Board of Directors of the Company has directed that (1) this Agreement and (2) a schedule setting forth (a) the payments to be made by Parent with respect to the Preferred Stock, Common Stock, In-the-Money Options (as defined below) and In-the-Money Warrants (as defined below) in accordance with the terms hereof and (b) the methodology for determining the respective amounts of such payments in accordance with the Company Charter, shall be submitted to the holders of the issued and outstanding Preferred Stock (as defined below) and holders of the Common Stock (as defined below) for their approval and adoption;
     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 Representatives shall serve as representatives 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.
          Agreement has the meaning specified in the preamble of this Agreement.
          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 requirements, of any Governmental Entity (including any Environmental Law) that have been published, or are otherwise available, applicable to such Person or any of its properties or assets.
          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).
          CERCLA means the United States 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).
          Code means the Internal Revenue Code of 1986, as amended.

2


 

          Common Shares has the meaning specified in Section 2.7(e).
          Common Stock means the common stock, par value $0.001 per share, of the Company.
          Company has the meaning specified in the preamble of this Agreement.
          Company Benefit Plan means any Employee Benefit Plan, Employee Retirement Plan or Employee Welfare Benefit Plan.
          Company Board means the Board of Directors of the Company.

 

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