ARTICLE I
DEFINITIONS AND TERMS

Section 1.1

Certain Definitions

2

Section 1.2

Other Terms

11

Section 1.3

Other Definitional Provisions

11

ARTICLE II
PURCHASE AND SALE

Section 2.1

Purchase and Sale of Shares

12

Section 2.2

Consideration

12

Section 2.3

Closing

13

Section 2.4

Deliveries by Philips and the Company

13

Section 2.5

Deliveries by Newco

13

Section 2.6

Deferred Closing

13

Section 2.7

Post-Closing Adjustment

14

ARTICLE III
REPRESENTATIONS AND WARRANTIES REGARDING PHILIPS

Section 3.1

Corporate Status

17

Section 3.2

Due Authorization, Execution and Delivery; Enforceability

17

Section 3.3

No Conflicts

17

Section 3.4

Consents

18

Section 3.5

Ownership of Company Shares

18

Section 3.6

Litigation and Claims

18

Section 3.7

Philips Equity Commitment Letter

18

Section 3.8

Finders Fees

18

ARTICLE IV
REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANY

Section 4.1

Corporate Status

19

Section 4.2

Due Authorization, Execution and Delivery; Enforceability

19

Section 4.3

No Conflicts

20

Section 4.4

Consents

20

Section 4.5

Capitalization

20

Section 4.6

Financial Statements

21

Section 4.7

Events Subsequent to Financial Statements

22

Section 4.8

Tax Matters

22

Section 4.9

Litigation

23

Section 4.10

Compliance with Laws

23

Section 4.11

Employee Benefits

23

Section 4.12

Labor

24

Section 4.13

Real Property

25

Section 4.14

Intellectual Property

26

Section 4.15

Environmental Matters

26

Section 4.16

Contracts

27

Section 4.17

Territorial Restrictions

27

Section 4.18

Insurance

27

Section 4.19

Sufficiency of Assets

28

Section 4.20

Debt Financing Commitment

28

Section 4.21

No Other Representations or Warranties

28

ARTICLE V
REPRESENTATIONS AND WARRANTIES OF NEWCO

Section 5.1

Corporate Status

28

Section 5.2

Due Authorization, Execution and Delivery; Enforceability

28

Section 5.3

No Conflicts

28

Section 5.4

Consents

29

Section 5.5

Litigation and Claims

29

Section 5.6

Financial Sophistication

29

Section 5.7

Finders Fees

29

Section 5.8

Investor Equity Commitment Letters

29

Section 5.9

No Other Representations or Warranties

29

ARTICLE VI
COVENANTS

Section 6.1

Access and Information

29

Section 6.2

Conduct of the Business

30

Section 6.3

Disentanglement

32

Section 6.4

Debt Financing

32

Section 6.5

Retention of Records

32

Section 6.6

Reasonable Best Efforts

33

Section 6.7

Antitrust

33

Section 6.8

Employee Matters

34

Section 6.9

Tax Matters

35

Section 6.10

Release of Obligations

41

Section 6.11

Further Assurances

42

Section 6.12

Non-Solicit

42

Section 6.13

Confidentiality

43

Section 6.14

Dividends

44

Section 6.15

Ancillary Agreements

44

ARTICLE VII
CONDITIONS TO CLOSING

Section 7.1

Conditions to the Obligations of Newco and Philips

44

Section 7.2

Conditions to the Obligations of Newco

45

Section 7.3

Conditions to the Obligations of Philips

46

ARTICLE VIII
SURVIVAL; INDEMNIFICATION; CERTAIN REMEDIES

Section 8.1

Survival

46

Section 8.2

Indemnification by Philips

46

Section 8.3

Indemnification by Newco

47

Section 8.4

Third Party Claim Indemnification Procedures

47

Section 8.5

Adjustments to Losses

50

Section 8.6

Payments

50

Section 8.7

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