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Title: |
Escrow Agreement |
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Entities: |
AboveNet, Inc.; Venture Law Group; Paul, Weiss, Rifkind, Wharton & Garrison |
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Date: |
2000 |
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Size: |
Preview shows 7KB of 28KB total |
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Price: |
$33 |
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ID: |
#340521 |
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ESCROW AGREEMENT
ESCROW AGREEMENT, dated as of __________ __, 2000 (this
"AGREEMENT"), by and among Metromedia Fiber Network, Inc., a Delaware
corporation (the "PARENT"), Mark Spagnolo, appointed by the Company Stockholders
as their representative for all purposes under this Agreement (the "ESCROW
REPRESENTATIVE"), and _____________, as escrow agent (the "ESCROW AGENT").
WHEREAS, concurrently with the execution and delivery of this
Agreement and pursuant to an Agreement and Plan of Merger, dated as of October
9, 2000 (the "MERGER AGREEMENT"; capitalized terms not defined herein shall have
the meanings ascribed to them in the Merger Agreement) by and among the Parent,
SiteSmith, Inc., a Delaware corporation (the "COMPANY"), and Aqueduct
Acquisition Corp., a Delaware corporation ("MERGER Sub"), Merger Sub will be
merged with and into the Company and each share of Company Common Stock owned by
the Company Stockholders immediately prior to the Effective Time will be
converted into that number of shares of Parent Common Stock as is determined in
accordance with the Merger Agreement; and
WHEREAS, the Merger Agreement provides that (i) the Parent,
the Escrow Representative and the Escrow Agent will enter into this Agreement,
(ii) the Parent will withhold a portion of the shares (the "ESCROW SHARES") of
Parent Common Stock that would otherwise be issued to the Company Stockholders
on the date hereof pursuant to the Merger Agreement, (iii) the Parent will
deliver certificates representing the Escrow Shares to the Escrow Agent, and
(iv) the Company Stockholders will deliver to the Escrow Agent executed stock
transfer powers related to the Escrow Shares.
NOW, THEREFORE, the Parent, the Escrow Representative and the
Escrow Agent hereby agree as follows:
1. APPOINTMENT OF THE ESCROW AGENT; DEPOSIT OF ESCROW
SHARES. The Escrow Representative and the Parent hereby constitute and appoint
the Escrow Agent as, and the Escrow Agent hereby agrees to assume and perform
the duties of, the escrow agent under and pursuant to this Agreement. The Escrow
Agent acknowledges receipt of (i) an executed copy of the Merger Agreement and
this Agreement, (ii) certificates from the Parent representing the number of
Escrow Shares set forth opposite each Company Stockholder's name on SCHEDULE 1
hereto, and (iii) duly executed stock transfer powers relating to the Escrow
Shares from each Company Stockholder,.
2. HOLDING OF THE ESCROW SHARES. The Escrow Agent shall
hold each Company Stockholder's Escrow Shares in escrow in the separate account
maintained for the benefit of such Company Stockholder and Parent. The Escrow
Shares shall not be subject to lien or attachment by any creditor of any party
hereto or the Company Stockholders and shall be used solely for the purpose set
forth in this Agreement. The Escrow Shares or any proceeds thereof shall not be
available to, and shall not be used by,
{PAGE}
the Escrow Agent to set off any obligations of any of the Company Stockholders,
the Escrow Representative or the Parent owing to the Escrow Agent in any
capacity.
3. DIVIDENDS AND OTHER DISTRIBUTIONS. Except for
tax-free distributions paid in stock declared with respect to the Escrow Shares
pursuant to Section 305(a) of the Code, the Escrow Agent shall, upon receipt
thereof, promptly distribute to each Company Stockholder any dividends or other
distributions of any kind made in respect of any Company Stockholder's Escrow
Shares. In the event that the Escrow Shares are exchanged for any other
securities and/or cash or other property by reason of a merger, consolidation,
recapitalization, reorganization or similar corporate transaction, such
securities and/or cash or other property shall be substituted for the Escrow
Shares for purposes of this Agreement, and the Parent and the Escrow
Representative shall agree to such equitable adjustments in the provisions of
this Agreement as may be necessary to give effect to this sentence.
4. VOTING. Prior to the later of (i) the first
anniversary of the Closing Date (the "TERMINATION DATE"), or (ii) the time at
which all Escrow Shares have been distributed to the Company Stockholders
pursuant to this Agreement, each Company Stockholder will have voting rights
with respect to his, her or its Escrow Shares, and the Parent shall take
commercially reasonable steps to cooperate with the exercise of such rights.
While the Escrow Shares remain in the Escrow Agent's possession pursuant to this
Agreement, the Company Stockholders shall retain and be able to exercise all
other incidents of ownership of the Escrow Shares which are not inconsistent
with the terms and conditions of this Agreement and the Merger Agreement.
5. CLAIMS FOR INDEMNITY.
(a) Concurrently with the delivery of an
Indemnity Notice under the Merger Agreement, the Parent will deliver to the
Escrow Agent a certificate in substantially the form of ANNEX I attached hereto
(a "CERTIFICATE OF INSTRUCTION"). No Certificate of Instruction may be delivered
by the Parent after the close of business on the business day immediately
preceding the Termination Date. The Escrow Agent shall give written notice to
the Escrow Representative of its receipt of a Certificate of Instruction not
later than the fifth business day following receipt thereof, together with a
copy of such Certificate of Instruction.
(b) If the Escrow Agent (i) shall not, within
thirty (30) calendar days following its receipt of a Certificate of Instruction
(the "OBJECTION PERIOD"), have received from the Escrow Representative a
certificate in substantially the form of ANNEX II attached hereto (an "OBJECTION
CERTIFICATE") disputing the Company Stockholders' obligation to pay the Owed
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