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Agreement and Plan of Merger

 

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Title:

Agreement and Plan of Merger

Entities:

NetGear, Inc.

Date:

2007

Size:

Preview shows 37KB of 220KB total

Price:

$82

ID:

#2881165

 

 

► Plans ► Agreements ► Agreements & Plans of Merger
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AGREEMENT AND PLAN OF MERGER
by and among
NETGEAR, INC.,
NAS HOLDINGS CORPORATION,
INFRANT TECHNOLOGIES, INC.,
CERTAIN SHAREHOLDERS THEREOF,
and
PAUL TIEN, AS HOLDERS REPRESENTATIVE
Dated as of May 2, 2007
 

 


 

TABLE OF CONTENTS
         
    Page
RECITALS
       
 
       
ARTICLE I DEFINITIONS
    2  
 
       
1.1. Specific Definitions
    2  
1.2. Other Terms
    14  
1.3. Interpretation
    14  
 
       
ARTICLE II THE MERGER
    15  
 
       
2.1. The Merger
    15  
2.2. Closing
    15  
2.3. Effective Time
    16  
2.4. The Articles of Incorporation
    16  
2.5. The Bylaws
    16  
2.6. Directors
    16  
2.7. Officers
    16  
 
       
ARTICLE III MERGER CONSIDERATION; EXCHANGE OF SHARES
    17  
 
       
3.1. Effect on Capital Stock
    17  
3.2. Payment for Shares and Infrant Stock Options
    19  
3.3. Escrow Fund
    22  
3.4. Dissenting Shares
    22  
3.5. Adjustments to Prevent Dilution
    23  
 
       
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF INFRANT
    23  
 
       
4.1. Organization, Good Standing and Qualification
    23  
4.2. Books and Records
    24  
4.3. Capital Structure
    24  
4.4. Corporate Authority; Approval and Fairness
    25  
4.5. No Conflict; Governmental Filings
    26  
4.6. Financial Statements
    27  
4.7. Undisclosed Liabilities; etc.
    27  
4.8. Absence of Certain Changes
    27  
4.9. Litigation and Liabilities
    30  
4.10. Employee Benefits
    30  
4.11. Compliance with Laws; Permits
    31  
4.12. Takeover Statutes
    32  
4.13. Material Contracts
    32  

-  i - 


 

         
    Page
4.14. Environmental Matters
    34  
4.15. Accounting and Tax Matters
    34  
4.16. Labor Matters
    36  
4.17. Insurance
    37  
4.18. Intellectual Property
    38  
4.19. Title to Properties; Encumbrances
    42  
4.20. Suppliers
    43  
4.21. Product Warranties
    43  
4.22. Certain Payments
    43  
4.23. Infrant Information Statement Sections
    43  
4.24. Brokers and Finders
    43  
 
       
ARTICLE V REPRESENTATIONS AND WARRANTIES OF NETGEAR AND MERGERSUB
    44  
 
       
5.1. Organization, Good Standing and Qualification
    44  
5.2. Corporate Authority
    44  
5.3. No Conflict; Governmental Filings
    45  
5.4. Capitalization of Merger Sub
    45  
5.5. SEC Filings
    45  
5.6. Undisclosed Liabilities; etc.
    46  
5.7. Absence of Certain Changes
    46  
5.8. Suppliers
    46  
5.9. Product Warranties
    46  
 
       
ARTICLE VI CONDUCT PRIOR TO CLOSING
    47  
 
       
6.1. Interim Operations of Infrant
    47  
6.2. Interim Operations of NETGEAR
    50  
 
       
ARTICLE VII ADDITIONAL AGREEMENTS
    50  
 
       
7.1. Information
    50  
7.2. Access
    50  
7.3. No Solicitation of Transactions
    51  
7.4. Regulatory Filings
    51  
7.5. Publicity
    52  
7.6. Tax Matters
    52  
7.7. Cooperation
    53  
7.8. Expenses
    53  
7.9. Information Statement
    53  
7.10. Investor Questionnaires
    54  
7.11. Resignations
    54  
7.12. Infrant Calculations
    54  
7.13. Business Conduct Covenants
    54  
7.14. Holders Release
    56  

-  ii -  


 

         
    Page
7.15. Takeover Statute
    56  
7.16. Further Assurances
    56  
 
       
ARTICLE VIII CONTINGENT PAYMENTS
    56  
 
       
8.1. Selection Period
    56  
8.2. Adjusted Net Revenues Calculation
    57  
8.3. Contingent Payments
    58  
 
       
ARTICLE IX CONDITIONS
    60  
 
       
9.1. Conditions to Each Partys Obligation to Effect the Merger
    60  
9.2. Conditions to Obligations of NETGEAR and Merger Sub
    61  
9.3. Conditions to Obligation of Infrant
    63  
 
       
ARTICLE X TERMINATION
    63  
 
       
10.1. Termination by Mutual Consent
    63  
10.2. Termination by Either NETGEAR or Infrant
    63  
10.3. Termination by NETGEAR
    64  
10.4. Termination by Infrant
    64  
10.5. Effect of Termination and Abandonment
    64  
 
       
ARTICLE XI INDEMNIFICATION
    64  
 
       
11.1. Survival of Representations and Warranties, Covenants and Agreements; Right to Indemnification Not Affected by Knowledge
    64  
11.2. Indemnification by the Holders
    65  
11.3. Indemnification by NETGEAR
    67  
11.4. Procedures for Indemnification
    67  
11.5. Holders Representative
    69  
 
       
ARTICLE XII MISCELLANEOUS AND GENERAL
    70  
 
       
12.1. Modification or Amendment
    70  
12.2. Waiver of Conditions
    70  
12.3. Counterparts
    70  
12.4. GOVERNING LAW; JUDICIAL NOTICE; VENUE
    71  
12.5. Notices
    71  
12.6. Entire Agreement
    72  
12.7. No Third Party Beneficiaries
    72  
12.8. Obligations of NETGEAR and of Infrant
    73  
12.9. Severability
    73  
12.10. Assignment
    73  
12.11. Specific Performance
    73  
12.12. Schedules and Exhibits
    73  

-  iii - 


 

EXHIBITS
EXHIBIT A Form of Shareholders Consent
EXHIBIT B Form of Investor Questionnaire
EXHIBIT C Form of Agreement of Merger
EXHIBIT D Form of Escrow Agreement
EXHIBIT E Form of Holders Release
EXHIBIT F White & Lee LLP Opinion Points

-  iv - 


 

AGREEMENT AND PLAN OF MERGER
          AGREEMENT AND PLAN OF MERGER (hereinafter called this Agreement), dated as of May 2, 2007, by and among NETGEAR, INC., a Delaware corporation (NETGEAR), NAS HOLDINGS CORPORATION, a California corporation and a wholly owned subsidiary of NETGEAR (Merger Sub), INFRANT TECHNOLOGIES, INC., a California corporation (Infrant), the Holders listed on the signature pages hereto and Paul Tien in his capacity as a Holder and as Holders Representative.
RECITALS
          WHEREAS, on the terms and subject to the conditions of this Agreement and in accordance with the General Corporation Law of the California Corporations Code (the CGCL), NETGEAR, Merger Sub and Infrant will enter into a business combination transaction pursuant to which Merger Sub will merge with and into Infrant (the Merger);
          WHEREAS, the board of directors of Infrant has (i) unanimously approved the Merger, (ii) adopted this Agreement in accordance with the provisions of the CGCL, (iii) directed that this Agreement and the Merger be submitted to the shareholders of Infrant for their adoption and approval, and (iv) resolved to recommend that the shareholders of Infrant vote in favor of the adoption of this Agreement and the approval of the Merger;
          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, (i) at least a majority of the outstanding shares of Common Stock of Infrant; (ii) at least a majority of the outstanding shares of Series A Preferred Stock of Infrant; (iii) at least a majority of the outstanding shares of Series B Preferred Stock of Infrant and (iv) at least a majority of the outstanding shares of Series C Preferred Stock of Infrant (the holders of such Shares, the Consenting Shareholders) have executed and delivered a shareholders consent dated as of the date hereof and substantially in the form attached hereto as Exhibit A (the Shareholders Consent) consenting to, approving and adopting this Agreement and the Merger;
          WHEREAS, contemporaneously with the execution and delivery of this Agreement and as a condition and an inducement to NETGEARs and Merger Subs willingness to enter into this Agreement, Infrant has furnished to NETGEAR such completed accredited investor questionnaires substantially in the form attached hereto as Exhibit B (collectively, the Investor Questionnaires) and such stock ledgers necessary to demonstrate that no more than 35 Contingent Payment Holders are not accredited investors within the meaning of Rule 501(a) under the Securities Act (as herein defined); and

-  1  -


 

           WHEREAS, Infrant, 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:
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:
     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 Infrant and (ii) any proposal or offer to acquire in any manner, directly or indirectly, 10% or more of the total voting power or of any class of equity securities of Infrant, or 10% or more of the total assets of Infrant, in each case other than the transactions contemplated by this Agreement.
     Adjusted Net Revenues shall mean Net Revenues, minus (i) any revenue included in Net Revenues that is derived from hard drives sold on a purely standalone basis and (ii) any cost of goods attributable to hard drive sales that exceeds 20% of Net Revenues, in each case calculated in accordance with GAAP and consistent with the manner reported by NETGEAR in its periodic filings with the U.S. Securities and Exchange Commission.

 

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