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Title: |
Management Rights and Standstill Agreement |
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Entities: |
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Date: |
2002 |
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Preview shows 5KB of 25KB total |
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Price: |
$36 |
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ID: |
#280169 |
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MANAGEMENT RIGHTS AND STANDSTILL AGREEMENT
THIS MANAGEMENT RIGHTS AND STANDSTILL AGREEMENT (this "AGREEMENT") is
made and entered into as of August 22, 2002 by and among URS CORPORATION, a
Delaware corporation (the "COMPANY"); CARLYLE-EG&G, L.L.C., a Delaware limited
liability company ("CARLYLE-EG&G"), EG&G TECHNICAL SERVICES HOLDINGS, L.L.C., a
Delaware limited liability company (the "HOLDER REPRESENTATIVE") and TC GROUP,
L.L.C. ("CARLYLE"). Each of Carlyle-EG&G, the Holder Representative and Carlyle
shall also be referred to herein as a "CARLYLE ENTITY" and collectively, the
"CARLYLE ENTITIES".
RECITALS
WHEREAS, the Company, the Holder Representative, Carlyle-EG&G Holdings
Corp., a Delaware corporation, and Lear Siegler Services, Inc., a Delaware
corporation, entered into an Agreement and Plan of Merger, dated as of July 16,
2002, (the "MERGER AGREEMENT");
WHEREAS, in order to induce the parties to consummate the transactions
contemplated by the Merger Agreement, the parties have agreed to enter into this
Agreement; and
WHEREAS, the execution and delivery of this Agreement is a condition to
the parties obligations under to the Merger Agreement.
NOW, THEREFORE, in consideration of the premises and of the respective
covenants and agreements contained herein, the Company and each of the Carlyle
Entities agree as follows:
1. DEFINITIONS. For purposes of this Agreement, the following terms
shall have the following respective meanings:
(a) an "AFFILIATE" of any person means another person that
directly or indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such first person, where
"CONTROL" means the possession, directly or indirectly, of the power to direct
or cause the direction of the management policies of a person, whether through
the ownership of voting securities, by contract, as trustee or executor, or
otherwise;
(b) "BOARD" means the Board of Directors of the Company;
(c) "CLOSING DATE" shall mean the Closing Date as defined in
the Merger Agreement;
(d) "PERSON" means an individual, corporation, partnership,
limited liability company, joint venture, association, trust, unincorporated
organization or other entity;
(e) "REPRESENTATIVE" shall mean officers, directors,
employees, agents, attorneys, accountants, advisors and other representatives;
and
1.
{PAGE}
(f) "VOTING SECURITIES" shall mean securities of the Company
with the power to vote with respect to the election of directors generally,
measured with respect to voting power and not with respect to numbers of shares.
2. MANAGEMENT RIGHTS.
(a) MANAGEMENT RIGHTS. From and after the Closing Date and for
so long as the Carlyle Entities and their Affiliates collectively own or control
at least 10% of the Voting Securities (assuming conversion of all outstanding
shares of Series D Senior Convertible Participating Preferred Stock and Series E
Senior Cumulative Convertible Participating Preferred Stock into the Company's
Common Stock), the Carlyle Entities, or their permitted assigns, shall have the
following contractual management rights. Such rights shall be in addition to,
and nothing in this Agreement shall be deemed to limit, any other rights that
any Carlyle Entity may hold as a stockholder of the Company or otherwise:
(i) To consult with and advise management of the
Company regarding operating and financial matters and significant business
issues, including without limitation management's proposed annual operating
plans. Upon request, management of the Company shall meet with authorized
representatives of the Carlyle Entities, or their permitted assigns, at a
mutually agreeable time and place within 45 days after the end of each fiscal
year for an annual progress consultation.
(ii) To examine the books and records of the Company,
inspect its facilities, and receive other information at reasonable times and
intervals concerning the general status of the Company's financial condition and
operations.
(b) BOARD OF DIRECTORS.
(i) At all times on and after the first business day
following the Closing Date, for so long as the Carlyle Entities and their
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