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Document Preview Agreement and Plan of Merger |
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Title: |
Agreement and Plan of Merger |
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Entities: |
Citibank, NA; Intel Corp.; Gibson, Dunn & Crutcher; Weil, Gotshal & Manges LLP; Xircom, Inc.; ESR Acquisition Corporation |
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Date: |
2001 |
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Size: |
Preview shows 29KB of 251KB total |
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Price: |
$88 |
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ID: |
#313949 |
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AGREEMENT AND PLAN OF MERGER
DATED AS OF JANUARY 15, 2001
BY AND AMONG
XIRCOM, INC.,
INTEL CORPORATION
AND
ESR ACQUISITION CORPORATION
{PAGE} 2
TABLE OF CONTENTS
{TABLE}
{S} {C}
Article 1 THE OFFER........................................................................2
1.1 The Offer....................................................................2
1.2 Company Actions..............................................................4
1.3 Boards of Directors and Committees; Section 14(f) of Exchange Act............6
Article 2 THE MERGER.......................................................................7
2.1 The Merger...................................................................7
2.2 Effective Time...............................................................7
2.3 Closing of the Merger........................................................7
2.4 Effects of the Merger........................................................8
2.5 Articles of Incorporation and Bylaws.........................................8
2.6 Directors....................................................................8
2.7 Officers.....................................................................8
2.8 Conversion of Shares.........................................................8
2.9 Dissenters' Rights...........................................................9
2.10 Exchange of Certificates.....................................................9
2.11 Stock Options...............................................................11
2.12 Withholding Taxes...........................................................12
Article 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY...................................13
3.1 Organization and Qualification; Subsidiaries; Investments...................13
3.2 Capitalization of the Company and its Subsidiaries..........................14
3.3 Authority Relative to this Agreement; Recommendation........................15
3.4 SEC Reports; Financial Statements...........................................16
3.5 Information Supplied........................................................16
3.6 Consents and Approvals; No Violations.......................................17
3.7 No Default..................................................................18
3.8 No Undisclosed Liabilities; Absence of Changes..............................18
3.9 Litigation..................................................................19
3.10 Compliance with Applicable Law..............................................20
3.11 Employee Benefits...........................................................20
3.12 Labor and Employment Matters................................................22
{/TABLE}
i
{PAGE} 3
{TABLE}
{S} {C}
3.13 Environmental Laws and Regulations..........................................24
3.14 Taxes.......................................................................25
3.15 Intellectual Property.......................................................27
3.16 Insurance...................................................................32
3.17 Certain Business Practices..................................................33
3.18 Product Warranties..........................................................33
3.19 Suppliers and Customers.....................................................33
3.20 Material Contracts..........................................................33
3.21 Vote Required...............................................................34
3.22 Opinion of Financial Advisor................................................34
3.23 Brokers.....................................................................34
3.24 Takeover Statutes...........................................................34
3.25 Representations Complete....................................................35
Article 4 REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION........................35
4.1 Organization................................................................35
4.2 Authority Relative to this Agreement........................................35
4.3 Information Supplied........................................................36
4.4 Consents and Approvals; No Violations.......................................36
4.5 Litigation..................................................................36
4.6 Brokers.....................................................................37
4.7 Financing...................................................................37
4.8 No Prior Activities.........................................................37
Article 5 COVENANTS.......................................................................37
5.1 Conduct of Business of the Company..........................................37
5.2 No Solicitation or Negotiation..............................................40
5.3 Meeting of Shareholders.....................................................42
5.4 Access to Informaton........................................................43
5.5 Certain Filings; Reasonable Efforts.........................................44
5.6 Public Announcements........................................................45
5.7 Indemnification and Directors' and Officers' Insurance......................46
5.8 Notification of Certain Matters.............................................47
{/TABLE}
ii
{PAGE} 4
{TABLE}
{S} {C}
5.9 Additions to and Modification of Company Disclosure Schedule................47
5.10 Access to Company Employees.................................................48
5.11 Company Compensation and Benefit Plans......................................48
5.12 Statement of Cash and Net Working Capital...................................49
5.13 Takeover Statutes...........................................................49
Article 6 CONDITIONS TO CONSUMMATION OF THE MERGER........................................49
6.1 Conditions to Each Party's Obligations to Effect the Merger.................49
6.2 Conditions to Obligations of the Company....................................50
6.3 Conditions to Obligations of Parent and Acquisition.........................50
Article 7 TERMINATION; AMENDMENT; WAIVER..................................................51
7.1 Termination.................................................................51
7.2 Effect of Termination.......................................................53
7.3 Fees and Expenses...........................................................53
7.4 Amendment...................................................................55
7.5 Extension; Waiver...........................................................55
Article 8 MISCELLANEOUS...................................................................55
8.1 Nonsurvival of Representations and Warranties...............................55
8.2 Entire Agreement; Assignment................................................55
8.3 Validity....................................................................56
8.4 Notices.....................................................................56
8.5 Governing Law and Venue; Waiver of Jury Trial...............................57
8.6 Descriptive Headings........................................................58
8.7 Parties in Interest.........................................................58
8.8 Certain Definitions.........................................................58
8.9 Personal Liability..........................................................59
8.10 Specific Performance........................................................59
8.11 Counterparts................................................................60
{/TABLE}
iii
{PAGE} 5
TABLE OF DEFINED TERMS
{TABLE}
{CAPTION}
Term Page
---- ----
{S} {C}
Acquisition .......................................................... 1
affiliate ............................................................ 58
Agreement ............................................................ 1
Agreement of Merger .................................................. 7
Applicable Law ....................................................... 58
Assumed Options ...................................................... 11
business day ......................................................... 59
capital stock ........................................................ 59
CCC .................................................................. 7
Certificate of Merger ................................................ 7
Certificate of Ownership ............................................. 7
Certificate of Ownership and Merger .................................. 7
Certificates ......................................................... 10
Closing .............................................................. 7
Closing Date ......................................................... 7
Code ................................................................. 12
Company .............................................................. 1
Company Acquisition .................................................. 59
Company Board ........................................................ 2
Company Common Stock ................................................. 1
Company Disclosure Schedule .......................................... 13
Company Financial Advisor ............................................ 4
Company Permits ...................................................... 20
Company Policies ..................................................... Annex A
Company SEC Reports .................................................. 16
Company Securities ................................................... 14
Company Stock Option ................................................. 11
Compensation and Benefit Plans ....................................... 20
Continuing Directors ................................................. 6
Contract ............................................................. 34
Copyrights ........................................................... 28
Current Assets ....................................................... Annex A
Current Liabilities .................................................. Annex A
DGCL ................................................................. 7
Dissenting Shareholders .............................................. 9
Dissenting Shares .................................................... 9
DOI .................................................................. Annex A
Effective Time ....................................................... 7
Environmental Laws ................................................... 24
ERISA ................................................................ 20
Exchange Act ......................................................... 2
{/TABLE}
iv
{PAGE} 6
{TABLE}
{S} {C}
Exchange Agent ....................................................... 9
Exchange Fund ........................................................ 9
Exchange Ratio ....................................................... 12
Fairness Opinion ..................................................... 4
Final Date ........................................................... 51
Final Statement Date ................................................. 50
Foreign Plans ........................................................ 22
GAAP ................................................................. 16
Governmental Entity .................................................. 17
Hazardous Material ................................................... 24
HSR Act .............................................................. 17
Inbound License Agreements ........................................... 29
include .............................................................. 59
Indemnified Liabilities .............................................. 46
Indemnified Persons .................................................. 46
Insurance Policies ................................................... 32
Insured Parties ...................................................... 47
Intellectual Property ................................................ 27
Lien ................................................................. 15
Material Adverse Effect on Parent .................................... 35
Material Adverse Effect on the Company ............................... 13
Material Contract .................................................... 34
Meeting .............................................................. 42
Merger ............................................................... 7
Merger Consideration ................................................. 8
Minimum Condition .................................................... 2
Nasdaq ............................................................... 12
Net Working Capital .................................................. Annex A
Notice of Superior Proposal .......................................... 41
Offer ................................................................ 1
Offer Documents ...................................................... 3
Offer Price .......................................................... 1
Option Account ....................................................... 11
Other Interests ...................................................... 14
Outbound License Agreements .......................................... 29
Parent ............................................................... 1
Parent Common Stock .................................................. 11
Patents .............................................................. 28
person ............................................................... 59
Proxy Statement ...................................................... 17
Qualified Plans ...................................................... 21
Schedule 14D-9 ....................................................... 5
Schedule TO .......................................................... 3
SEC .................................................................. 3
Securities Act ....................................................... 16
{/TABLE}
v
{PAGE} 7
{TABLE}
{S} {C}
Shares ............................................................... 1
Software ............................................................. 31
Stock Option Agreement ............................................... 1
Stock Option Plans ................................................... 11
subsidiary ........................................................... 59
Superior Proposal .................................................... 42
Supply Contracts ..................................................... 32
Surviving Corporation ................................................ 7
Takeover Statute ..................................................... 34
Tax .................................................................. 25
Tax Return ........................................................... 25
Third Party .......................................................... 42
Third Party Acquisition .............................................. 42
Total Cash ........................................................... Annex A
Trade Secrets ........................................................ 28
Trademarks ........................................................... 28
Voting Agreement ..................................................... 1
{/TABLE}
vi
{PAGE} 8
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this "Agreement"), dated as
of January 15, 2001, is by and among Xircom, Inc., a California corporation (the
"Company"), Intel Corporation, a Delaware corporation ("Parent"), and ESR
Acquisition Corporation, a Delaware corporation and a direct wholly-owned
subsidiary of Parent ("Acquisition"). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in Section 8.8 of
this Agreement.
WHEREAS, the Boards of Directors of the Company, Parent and
Acquisition have each (i) determined that the Merger (as defined below) is
advisable and fair and in the best interests of their respective stockholders
and (ii) approved the Merger upon the terms and subject to the conditions set
forth in this Agreement;
WHEREAS, in furtherance thereof, it is proposed that Acquisition
shall, promptly after the public announcement hereof, commence a tender offer
(the "Offer") to acquire all of the outstanding shares (the "Shares") of common
stock, par value $0.001 per share, of the Company (the "Company Common Stock"),
at a price of Twenty-Five Dollars ($25.00) per Share, net to the seller in cash,
without interest, less any required withholding taxes (such amount, or any
greater amount per share paid pursuant to the Offer, being hereinafter referred
to as the "Offer Price"), in accordance with the terms and subject to the
conditions provided herein;
WHEREAS, concurrently with the execution and delivery of this
Agreement and as a condition and inducement to Parent's willingness to enter
into this Agreement, Parent and the Company have entered into a Stock Option
Agreement, dated as of the date hereof, in the form attached hereto as Exhibit A
(the "Stock Option Agreement"), pursuant to which the Company has granted to
Parent an option to purchase shares of Company Common Stock under certain
circumstances; and
WHEREAS, concurrently with the execution and delivery of this
Agreement and as a condition and inducement to Parent's willingness to enter
into this Agreement, certain shareholders of the Company have entered into a
Tender and Voting Agreement, dated as of the date of this Agreement, in the form
attached hereto as Exhibit B (the "Voting Agreement"), pursuant to which such
shareholders have agreed to tender to Acquisition all Shares beneficially owned
by such shareholders and to vote, if necessary, all voting securities of the
Company beneficially owned by them in favor of approval and adoption of this
Agreement and the Merger.
NOW, THEREFORE, in consideration of the foregoing premises and
the representations, warranties, covenants and agreements herein contained, and
intending to be legally bound hereby, the Company, Parent and Acquisition hereby
agree as follows:
{PAGE} 9
ARTICLE 1
THE OFFER
SECTION 1.1. The Offer.
(a) Provided that this Agreement shall not have been terminated
and subject to the terms hereof, within ten (10) business days after the public
announcement of the execution hereof by the parties, Acquisition shall (and
Parent shall cause Acquisition to) commence (within the meaning of Rule 14d-2
under the Securities Exchange Act of 1934, as amended (the "Exchange Act")), the
Offer for all of the Shares, at the Offer Price. The obligation of Acquisition
to accept for payment and to pay for any Shares tendered (and the obligation of
Parent to cause Acquisition to accept for payment and to pay for any Shares
tendered) shall be subject only to (i) the condition that at least a majority of
Shares on a fully-diluted basis (including for purposes of such calculation all
Shares issuable upon exercise of all vested Company Stock Options (as defined in
Section 2.11) and unvested Company Stock Options that vest (or upon consummation
of the Offer will vest) prior to the Final Date (as defined in Section 7.1), but
excluding any Shares held by the Company or any of its subsidiaries) be validly
tendered and not withdrawn prior to the expiration of the Offer or otherwise
already be beneficially owned by Parent or Acquisition (the "Minimum
Condition"), and (ii) the satisfaction or the waiver by Acquisition of the other
conditions set forth in Annex A. Acquisition expressly reserves the right to
waive any such condition, to increase the Offer Price or to make any other
changes in the terms and conditions of the Offer; provided, however, that unless
previously approved by the Company in writing, no change may be made that (i)
decreases the Offer Price, (ii) changes the form of consideration to be paid in
the Offer, (iii) reduces the maximum number of Shares to be purchased in the
Offer, (iv) imposes conditions to the Offer in addition to those set forth in
Annex A, (v) amends the conditions set forth in Annex A to broaden the scope of
such conditions, (vi) amends any other term of the Offer in a manner adverse to
the holders of the Shares, (vii) extends the Offer except as provided in Section
1.1(b), or (viii) amends or waives the Minimum Condition. It is agreed that the
conditions set forth in Annex A are for the sole benefit of Parent and
Acquisition and may be waived by Parent and Acquisition, in whole or in part, at
any time and from time to time, in their sole discretion, other than the Minimum
Condition, as to which prior written approval of the Company is required. The
failure by Parent and Acquisition at any time to exercise any of the foregoing
rights shall not be deemed a waiver of any such right, and each such right shall
be deemed an ongoing right that may be asserted at any time and from time to
time. The Company agrees that no Shares held by the Company or any of its
subsidiaries will be tendered in the Offer.
(b) Subject to the terms and conditions hereof, the Offer shall
expire at midnight, New York City time, on the date that is twenty (20) business
days after the date the Offer is commenced; provided, however, that without the
consent of the Company's Board of Directors (the "Company Board"), Acquisition
may (i) from time to time extend the Offer, if at the scheduled expiration date
of the Offer any of the conditions to the Offer shall not have been satisfied or
waived, until such time as such conditions are satisfied or
2
{PAGE} 10
waived; (ii) extend the Offer for any period required by any rule, regulation,
interpretation or position of the Securities and Exchange Commission (the "SEC")
or the staff thereof applicable to the Offer; (iii) if the first purchase of
Shares under the Offer shall not have occurred prior to March 31, 2001, extend
the Offer to the later of April 10, 2001 and the date on which all conditions to
the Offer have been satisfied; or (iv) extend the Offer for any reason on one or
more occasions for an aggregate period of not more than ten (10) business days
beyond the latest expiration date that would otherwise be permitted under clause
(i), (ii) or (iii) of this sentence if on such expiration date there shall not
have been tendered at least ninety percent (90%) of the outstanding Shares.
Parent and Acquisition agree that, if any one or more of the conditions to the
Offer set forth on Annex A are not satisfied and none of the events set forth in
paragraphs (a) through (f) of Annex A that would permit Acquisition not to
accept tendered Shares for payment has occurred and is continuing at the time of
any scheduled expiration date of the Offer, then, provided, that such conditions
are reasonably capable of being satisfied, Acquisition shall extend the Offer
from time to time unless any such condition is no longer reasonably capable of
being satisfied or any such event has occurred; provided, however, that in no
event shall Acquisition be required to extend the Offer beyond March 31, 2001
(provided that if on March 31, 2001 the condition set forth in clause (ii) of
the first paragraph of Annex A hereto regarding the HSR Act (as defined in
Section 3.6 below) is not satisfied and none of the events set forth in
paragraphs (a) through (f) of Annex A that would permit Acquisition not to
accept Shares tendered for payment has occurred and is continuing, such date
shall be automatically extended to May 15, 2001). Acquisition may provide a
"subsequent offering period" (as contemplated by Rule 14d-11 of the Exchange
Act) of not less than three business days following its acceptance of and
payment for the Shares in the Offer. Subject to the terms and conditions of the
Offer and this Agreement, Acquisition shall (and Parent shall cause Acquisition
to) accept for payment, and pay for, all Shares validly tendered and not
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