sv4za
As filed with the Securities and Exchange Commission on
September 22, 2005
Registration No. 333-127945
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 1
TO
Form S-4
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
BROOKS AUTOMATION, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Delaware |
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3559 |
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04-3040660 |
(State or Other Jurisdiction of
Incorporation or Organization) |
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(Primary Standard Industrial
Classification Code Number) |
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(I.R.S. Employer
Identification Number) |
15 Elizabeth Drive
Chelmsford, Massachusetts 01824
(978) 262-2400
(Address, Including Zip Code, and Telephone Number,
Including Area Code, of Registrants Principal Executive
Offices)
Edward C. Grady
Chief Executive Officer
Brooks Automation, Inc.
15 Elizabeth Drive
Chelmsford, Massachusetts 01824
(978) 262-2400
(Name, Address, Including Zip Code, and Telephone Number,
Including Area Code, of Agent for Service)
Copies to:
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Winthrop G. Minot |
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Matthew J. Gardella |
Shari H. Wolkon
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Palmer & Dodge LLP |
Ropes & Gray LLP
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111 Huntington Avenue |
One International Place
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Boston, Massachusetts 02199 |
Boston, Massachusetts 02110
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Approximate date of commencement of proposed sale to
public: As soon as practicable following the effective date
of this registration statement and the date on which all other
conditions to the merger of Mt. Hood Corporation with and into
Helix Technology Corporation pursuant to the merger agreement
described in the enclosed joint proxy statement/ prospectus have
been satisfied or waived.
If the securities being registered on this form are being
offered in connection with the formation of a holding company
and there is compliance with General Instruction G, check the
following
box. o
If this form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering. o
If this form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering. o
The Registrant hereby amends this Registration Statement on
such date or dates as may be necessary to delay its effective
date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
The
information in this joint proxy statement/ prospectus is not
complete and may be changed. We may not sell these securities
until the registration statement filed with the Securities and
Exchange Commission is effective. This joint proxy statement/
prospectus is not an offer to sell these securities and it is
not soliciting an offer to buy these securities in any state
where the offer or sale is not
permitted.
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SUBJECT TO
COMPLETION, DATED SEPTEMBER 22, 2005
PRELIMINARY COPY
MERGER PROPOSED YOUR VOTE IS IMPORTANT
The boards of directors of Brooks Automation, Inc. and Helix
Technology Corporation have each unanimously approved a
strategic merger of the two companies. We believe that the
merger will benefit the stockholders of both companies, and we
ask for your support in voting for the merger proposals at our
respective special meetings.
In the merger, Mt. Hood Corporation, a wholly owned subsidiary
of Brooks, will merge with and into Helix. Each share of Helix
common stock will be converted into the right to receive
1.11 shares of Brooks common stock and cash in lieu of
fractional shares. Based on the outstanding shares of Helix
common stock and options to purchase Helix common stock as of
September 21, 2005, Brooks would be obligated to issue up
to approximately 29,796,123 shares of Brooks common stock
in the merger, including shares to be issued upon the exercise
of outstanding Helix options assumed in the merger. Taking into
account the number of outstanding shares of Brooks common stock,
options to purchase Brooks common stock and options to purchase
Helix common stock as of September 21, 2005, after the
merger and based on information as of that date, the current
stockholders of Brooks would own approximately 61% of the
combined company and the current stockholders of Helix would own
approximately 39% of the combined company. The merger will be
tax-free, except that Helix stockholders may recognize gain on
any cash received in lieu of fractional shares of Brooks.
The combined company will be a Delaware corporation named
Brooks Automation, Inc. Brooks common stock is
currently traded on The Nasdaq National Market under the symbol
BRKS, and will continue to be traded under this
symbol following the merger. On September 21, 2005, the
closing price of Brooks common stock was $13.00 per share. Upon
completion of the merger, Helix common stock, which is traded on
The Nasdaq National Market under the symbol HELX,
will be delisted. On September 21, 2005, the closing price
of Helix common stock was $14.37 per share. Brooks and Helix
cannot complete the merger unless Helix stockholders adopt the
merger agreement and unless Brooks stockholders approve the
issuance of shares in the merger.
We are asking stockholders of Brooks to, among other things,
consider and vote upon proposals to approve the issuance of
shares of Brooks common stock in the merger pursuant to the
terms and conditions of the merger agreement and an amendment to
the Brooks certificate of incorporation to increase Brooks
authorized shares of common stock from 100,000,000 shares
to 125,000,000 shares. Brooks special meeting will be
held on October 26, 2005, at 9:00 a.m., local time, at
Brooks offices at 15 Elizabeth Drive, Chelmsford,
Massachusetts. Brooks board of directors unanimously
recommends that Brooks stockholders vote FOR
each of the foregoing proposals.
We are asking stockholders of Helix to, among other things,
consider and vote upon a proposal to adopt the merger agreement
providing for the merger. Helixs special meeting will be
held on October 26, 2005, at 9:00 a.m., local time, at
Palmer & Dodge LLP, 111 Huntington Avenue, Boston,
Massachusetts. Helixs board of directors unanimously
recommends that Helix stockholders vote FOR
the adoption of the merger agreement.
This joint proxy statement/ prospectus provides you with
detailed information about the special meetings and the proposed
merger and the other proposals to be voted on. We urge you to
read this material, including the section entitled Risk
Factors beginning on page 18, carefully and in its
entirety.
We enthusiastically support this combination of our two
outstanding companies and join with all the other members of our
respective boards of directors in recommending that you vote
FOR the proposals described herein.
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Edward C. Grady
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James F. Gentilcore |
President and Chief Executive Officer
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President and Chief Executive Officer |
Brooks Automation, Inc.
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Helix Technology Corporation |
Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these
securities or passed upon the adequacy or accuracy of this joint
proxy statement/ prospectus. Any representation to the contrary
is a criminal offense.
This joint proxy statement/ prospectus is dated
[ ],
2005,
and is first being mailed to Brooks and Helix stockholders on or
about September 26, 2005.
REFERENCES TO ADDITIONAL INFORMATION
Except where indicated otherwise, as used in this joint proxy
statement/ prospectus, Brooks refers to Brooks
Automation, Inc. and its consolidated subsidiaries, and
Helix refers to Helix Technology Corporation and its
consolidated subsidiaries. This joint proxy statement/
prospectus incorporates important business and financial
information about Brooks and Helix from documents that each
company has filed with the Securities and Exchange Commission,
which is referred to in this joint proxy statement/ prospectus
as the SEC, but that have not been included in or delivered with
this joint proxy statement/ prospectus. For a list of documents
incorporated by reference into this joint proxy statement/
prospectus, see the section entitled WHERE YOU CAN FIND
MORE INFORMATION beginning on page 115.
This information is available to you without charge upon your
written or oral request. You can obtain the documents
incorporated by reference into this joint proxy statement/
prospectus by accessing the website of the SEC maintained at
www.sec.gov.
In addition, Brooks filings with the SEC are available to
the public on Brooks website, www.brooks.com, and
Helixs filings with the SEC are available to the public on
Helixs website, www.helixtechnology.com.
Information contained on Brooks website and Helixs
website is not incorporated by reference into this joint proxy
statement/ prospectus, and you should not consider information
contained on those websites as part of this joint proxy
statement/ prospectus.
Brooks will provide you with copies of this information
relating to Brooks, without charge, if you request it in writing
from Brooks Automation, Inc., 15 Elizabeth Drive, Chelmsford,
Massachusetts 01824, Attention: Investor Relations or by
telephone by calling (978) 262-2400. To obtain timely
delivery, you must request any documents no later than five
business days before the Brooks special meeting. Accordingly,
please request any documents from Brooks by October 19,
2005, in order to receive them before the Brooks special
meeting.
Helix will provide you with copies of this information
relating to Helix, without charge, if you request it in writing
from Helix Technology Corporation, Nine Hampshire Street,
Mansfield, Massachusetts 02048, Attention: Investor Relations or
by telephone by calling (508) 337-5111. To obtain timely
delivery, you must request any documents no later than five
business days before the Helix special meeting. Accordingly,
please request any documents from Helix by October 19,
2005, in order to receive them before the Helix special
meeting.
Brooks has supplied all information contained in or incorporated
by reference in this joint proxy statement/ prospectus relating
to Brooks, and Helix has supplied all information contained in
or incorporated by reference in this joint proxy statement/
prospectus relating to Helix. Brooks and Helix have both
contributed to the information contained in this joint proxy
statement/ prospectus relating to the merger.
ABOUT THIS DOCUMENT
This document, which forms part of a registration statement on
Form S-4 filed with the SEC by Brooks, constitutes the
following:
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a prospectus of Brooks under Section 5 of the Securities
Act of 1933, as amended, and the rules thereunder, which is
referred to in this joint proxy statement/ prospectus as the
Securities Act, with respect to the shares of Brooks common
stock to be issued to the holders of Helix common stock in the
merger; |
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a proxy statement of Brooks and of Helix under
Section 14(a) of the Securities Exchange Act of 1934, as
amended, and the rules thereunder, which is referred to in this
joint proxy statement/ prospectus as the Exchange Act; and |
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a notice of special meeting with respect to the Brooks special
meeting of stockholders and the Helix special meeting of
stockholders, at which, among other things, the stockholders of
each company will consider and vote upon the Brooks proposal to
approve the issuance of shares of Brooks common stock in the
merger and the Helix proposal to adopt the merger agreement, as
amended, as the case may be. |
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
OF
BROOKS AUTOMATION, INC.
October 26, 2005
NOTICE IS HEREBY GIVEN that a Special Meeting of Stockholders of
Brooks Automation, Inc., a Delaware corporation, will be held at
Brooks offices at 15 Elizabeth Drive, Chelmsford,
Massachusetts, on October 26, 2005, beginning at
9:00 a.m., local time for the purpose of considering and
voting on the following matters:
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1. To approve the issuance of shares of Brooks common stock
pursuant to the Agreement and Plan of Merger, dated as of
July 11, 2005, among Brooks, Mt. Hood Corporation, which is
referred to in this joint proxy statement/ prospectus as Mt.
Hood, and Helix, as amended on August 29, 2005, a copy of
which is attached as Annex A to this joint proxy statement/
prospectus; |
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2. To approve a proposal to amend Brooks certificate
of incorporation if the merger is consummated to increase
Brooks authorized shares of common stock from
100,000,000 shares to 125,000,000 shares; |
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3. To permit Brooks board of directors or its
chairman, in its or his discretion, to adjourn or postpone the
special meeting if necessary for further solicitation of proxies
if there are not sufficient votes at the originally scheduled
time of the special meeting to approve either of the foregoing
proposals; and |
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4. To act upon such other matters as may properly come
before the special meeting or any adjournments or postponements
thereof. |
The business to be conducted at the special meeting is more
fully described in this joint proxy statement/prospectus. As of
the date of this notice, Brooks board of directors knows
of no other business to be conducted at the special meeting.
Brooks board of directors unanimously recommends that
Brooks stockholders vote FOR each of the foregoing
proposals.
Brooks board of directors has fixed the close of business
on September 21, 2005 as the record date for the
determination of Brooks stockholders entitled to notice of, and
to vote at, the special meeting and at any continuation or
adjournment of the special meeting. During the ten-day period
before the special meeting, Brooks will keep a list of
stockholders entitled to vote at the special meeting available
for inspection during normal business hours at its offices in
Chelmsford, Massachusetts, for any purpose germane to the
special meeting. The list of stockholders will also be provided
and kept at the location of the special meeting for the duration
of the special meeting, and may be inspected by any stockholder
who is present. All persons wishing to be admitted to the
special meeting must present photo identification. Please also
note that if you hold your shares in street name
through a broker or other nominee, you will need to bring a copy
of a brokerage statement reflecting your stock ownership on the
record date and check in at the registration desk at the special
meeting.
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By Order of the Board of Directors |
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Thomas S. Grilk |
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Senior Vice President, |
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General Counsel and Secretary |
Chelmsford, Massachusetts
September 21, 2005
All Brooks stockholders are cordially invited to attend the
special meeting. Whether or not you expect to attend the special
meeting, please complete, date, sign and return the enclosed
proxy card as promptly as possible to ensure your representation
at the special meeting. A postage prepaid envelope is enclosed
for that purpose. As a holder of Brooks common stock, you may
also be able to vote over the Internet or by telephone by
following instructions on the enclosed proxy card or provided to
you by your broker. Even if you have given your proxy or voted
over the Internet or by telephone, you may still vote in person
if you attend the special meeting.
NOTICE OF SPECIAL MEETING OF STOCKHOLDERS
OF
HELIX TECHNOLOGY CORPORATION
October 26, 2005
NOTICE IS HEREBY GIVEN that a Special Meeting of Stockholders of
Helix Technology Corporation, a Delaware corporation, will be
held at Palmer & Dodge LLP, 111 Huntington Avenue,
Boston, Massachusetts, on October 26, 2005, beginning at
9:00 a.m., local time for the purpose of considering and
voting on the following matters:
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1. To adopt the Agreement and Plan of Merger, dated as of
July 11, 2005, among Brooks, Mt. Hood and Helix, as amended
on August 29, 2005, a copy of which is attached as
Annex A to this joint proxy statement/ prospectus; |
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2. To permit Helixs board of directors or its
chairman, in its or his discretion, to adjourn or postpone the
special meeting if necessary for further solicitation of proxies
if there are not sufficient votes at the originally scheduled
time of the special meeting to approve the Helix merger
proposal; and |
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3. To act upon such other matters as may properly come
before the special meeting or any adjournments or postponements
thereof. |
The business to be conducted at the special meeting is more
fully described in this joint proxy statement/ prospectus. As of
the date of this notice, Helixs board of directors knows
of no other business to be conducted at the special meeting.
Helixs board of directors unanimously recommends that
Helix stockholders vote FOR each of the foregoing
proposals.
Helixs board of directors has fixed the close of business
on September 21, 2005 as the record date for the
determination of Helix stockholders entitled to notice of, and
to vote at, the special meeting and at any continuation or
adjournment of the special meeting. During the ten-day period
before the special meeting, Helix will keep a list of
stockholders entitled to vote at the special meeting available
for inspection during normal business hours at its offices in
Mansfield, Massachusetts, for any purpose germane to the special
meeting. The list of stockholders will also be provided and kept
at the location of the special meeting for the duration of the
special meeting, and may be inspected by any stockholder who is
present. All persons wishing to be admitted to the special
meeting must present photo identification. Please also note that
if you hold your shares in street name through a
broker or other nominee, you will need to bring a copy of a
brokerage statement reflecting your stock ownership on the
record date and check in at the registration desk at the special
meeting.
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By Order of the Board of Directors |
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Beverly L. Couturier |
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Corporate Secretary |
Mansfield, Massachusetts
September 21, 2005
All Helix stockholders are cordially invited to attend the
special meeting. Whether or not you expect to attend the special
meeting, please complete, date, sign and return the enclosed
proxy card as promptly as possible to ensure your representation
at the special meeting. A postage prepaid envelope is enclosed
for that purpose. As a holder of Helix common stock, you may
also be able to vote over the Internet or by telephone by
following instructions on the enclosed proxy card or provided to
you by your broker. Even if you have given your proxy or voted
over the Internet or by telephone, you may still vote in person
if you attend the special meeting.
TABLE OF CONTENTS
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iv |
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Material U.S. Federal Income Tax Consequences of the Merger
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64 |
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Tax Opinions as Condition to Merger
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66 |
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Backup Withholding
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Net Operating Loss Carryforwards of Brooks
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ii
iii
QUESTIONS AND ANSWERS ABOUT THE MERGER
The following questions and answers briefly address some
commonly asked questions about the merger, the special meetings
of stockholders and the effect of the merger on the holders of
common stock of Brooks and Helix. These questions and answers
may not include all of the information that is important to you.
We urge you to read carefully this entire document, including
the annexes and the other documents to which we have referred
you. We have included page references in this section to direct
you to a more detailed description of each topic presented
elsewhere in this joint proxy statement/ prospectus.
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What will happen in the merger? |
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We are proposing to combine our companies in a
merger transaction. In the transaction, Mt. Hood, a
Delaware corporation and newly formed, wholly owned subsidiary
of Brooks, will merge with and into Helix. As a result of this
merger, Helix will become a wholly owned subsidiary of Brooks.
The merger agreement contemplates, but does not require, that
Helix will be merged with and into Brooks following the merger
of Mt. Hood with and into Helix. This subsequent merger, if it
occurs, would be undertaken to simplify the organizational
structure of Brooks following the combination and would have no
impact on the holders of Brooks or Helix common stock. |
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What will I receive in the merger? |
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If the merger is consummated, Helix stockholders will receive
1.11 shares of Brooks common stock for each share of Helix
common stock that they own. Helix stockholders will also receive
a cash payment for any fractional shares. For example, a Helix
stockholder who holds 99 shares of Helix common stock will
receive 109 shares of Brooks common stock (99 multiplied by
1.11 equals 109.89) and cash representing 0.89 of a share of
Brooks common stock. |
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In addition to shares of Brooks common stock and a cash payment
for any fractional shares, Brooks will issue to holders of Helix
common stock one preferred stock purchase right for each share
of Brooks common stock issued in the merger. The preferred stock
purchase rights are attached to the Brooks common stock and
trade with the Brooks common stock until a triggering event
occurs. The preferred stock purchase rights are described in
more detail in the section entitled DESCRIPTION OF BROOKS
CAPITAL STOCK Rights Agreement beginning on
page 101. |
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If the merger is consummated, Helix common stock will no longer
be traded publicly, and the combined company will continue to be
traded on The Nasdaq National Market, under the symbol
BRKS. |
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If the merger is consummated, Brooks stockholders will continue
to hold their existing Brooks common stock. Based upon the
outstanding Brooks common stock and Helix common stock, and
options to purchase Brooks common stock and Helix common stock,
as of September 21, 2005, the current stockholders of
Brooks are expected to own approximately 61% of the combined
company and the current stockholders of Helix are expected to
own approximately 39% of the combined company. |
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When and where will my companys special meeting be
held? |
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Brooks. The Brooks special meeting will be held on
October 26, 2005 at 9:00 a.m., local time, at
Brooks offices at 15 Elizabeth Drive, Chelmsford,
Massachusetts. See page 25. |
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Helix. The Helix special meeting will be held on
October 26, 2005 at 9:00 a.m., local time, at
Palmer & Dodge LLP, 111 Huntington Avenue, Boston,
Massachusetts. See page 28. |
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On what am I being asked to vote? |
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Brooks. Brooks board of directors is asking Brooks
stockholders to vote upon the following: |
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1. A proposal, which is referred to in this joint proxy
statement/ prospectus as the Brooks merger proposal, to approve
the issuance of shares of Brooks common stock in the merger
pursuant to the terms and conditions of the Agreement and Plan
of Merger, dated as of July 11, 2005, among Brooks, Mt.
Hood and Helix, as amended on August 29, 2005, which is
referred to in this joint proxy statement/ prospectus as the
merger agreement (see page 31); |
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2. A proposal to approve an amendment to Brooks
certificate of incorporation if the merger is consummated to
increase Brooks authorized shares of common stock from
100,000,000 shares to 125,000,000 shares (see
page 108); and |
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3. A proposal to permit Brooks board of directors or
its chairman, in its or his discretion, to adjourn or postpone
the Brooks special meeting if necessary for further solicitation
of proxies if there are not sufficient votes at the originally
scheduled time of the special meeting to approve either of the
foregoing proposals (see page 110). |
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Helix. Helixs board of directors is asking Helix
stockholders to vote upon the following: |
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1. A proposal, which is referred to in this joint proxy
statement/ prospectus as the Helix merger proposal, to adopt the
merger agreement (see page 31); and |
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2. A proposal to permit Helixs board of directors or
its chairman, in its or his discretion, to adjourn or postpone
the Helix special meeting if necessary for further solicitation
of proxies if there are not sufficient votes at the originally
scheduled time of the special meeting to approve the Helix
merger proposal (see page 111). |
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Q: |
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Why was the merger agreement amended? |
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A: |
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On August 29, 2005, Brooks and Helix amended the merger
agreement to clarify the applicability of expense reimbursement
in all situations in which a termination fee is payable. |
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Q: |
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Is the Brooks merger proposal conditioned upon approval of
the proposal to amend Brooks certificate of incorporation
to increase Brooks authorized shares of common stock? |
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A: |
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No. The Brooks merger proposal is not conditioned on the
proposal to amend Brooks certificate of incorporation to
increase the authorized shares of Brooks common stock. Although
Brooks currently has sufficient authorized but unissued shares
of common stock to consummate the merger, Brooks is seeking to
amend its certificate of incorporation to increase the number of
authorized shares. In connection with the merger, Brooks
anticipates that it will issue approximately
29,016,209 shares of common stock and reserve an additional
779,914 shares of Brooks common stock for issuance upon the
exercise of Helix options assumed in the merger, in each case
based on the outstanding shares of Helix common stock and
outstanding options to purchase Helix common stock as of
September 21, 2005. As a result, after consummation of the
merger, Brooks would only have approximately
12,739,139 authorized shares of common stock that are not
already issued or reserved for issuance pursuant to Brooks
equity incentive plans, warrants and convertible securities as
of September 21, 2005. Brooks board of directors
believes that it is advisable and in the best interests of the
stockholders to have available additional authorized but
unissued shares in an amount adequate to provide for future
needs, such as stock incentive programs or future transactions
that involve the issuance of Brooks common stock. The proposal
to amend Brooks certificate of incorporation, however, is
conditioned on the consummation of the merger. Accordingly, if
the Brooks merger proposal is not approved or the merger is not
consummated for any other reason, Brooks will not amend its
certificate of incorporation, even if approved by Brooks
stockholders. See page 109. |
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Q: |
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Who is eligible to vote at the special meetings? |
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A: |
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Brooks. Brooks stockholders are eligible to vote at the
Brooks special meeting if they were stockholders of record at
the close of business on September 21, 2005, the record
date for the Brooks special meeting. See page 25. |
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Helix. Helix stockholders are eligible to vote at the
Helix special meeting if they were stockholders of record at the
close of business on September 21, 2005, the record date
for the Helix special meeting. See page 28. |
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Q: |
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What votes are needed? |
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A: |
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Brooks. The affirmative vote of a majority of the votes
properly cast on the proposal by holders of Brooks common stock
is required to approve the Brooks merger proposal. The
affirmative vote of a majority of the shares of Brooks common
stock outstanding on the record date is required to approve |
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an amendment to the Brooks certificate of incorporation if the
merger is consummated to increase Brooks authorized shares
of common stock from 100,000,000 shares to
125,000,000 shares. The affirmative vote of a majority of
the votes properly cast on the proposal by holders of Brooks
common stock is required to permit Brooks board of
directors or its chairman, in its or his discretion, to adjourn
or postpone the special meeting if necessary to solicit further
proxies in favor of the foregoing proposals. At the Brooks
special meeting, each share of Brooks common stock is entitled
to one vote per share. See page 26. |
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Helix. The affirmative vote of the holders of a majority
of the shares of Helix common stock outstanding on the record
date is required to approve the Helix merger proposal. The
affirmative vote of the holders of a majority of the shares of
Helix common stock present at the Helix special meeting in
person or by proxy and entitled to vote on the proposal is
required to permit Helixs board of directors or its
chairman, in its or his discretion, to adjourn or postpone the
special meeting if necessary to solicit further proxies in favor
of the Helix merger proposal. Each share of Helix common stock
has one vote per share. See page 28. |
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Q: |
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How do my companys directors and executive officers
intend to vote? |
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A: |
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Brooks. Brooks directors and executive officers
have indicated that they intend to vote their shares of Brooks
common stock FOR all the proposals to be
voted on by Brooks stockholders. At the close of business on
September 21, 2005, the record date for the Brooks special
meeting, directors and executive officers of Brooks and their
affiliates beneficially owned and were entitled to vote, or
shared the right to vote, approximately 4.75% of the shares of
Brooks common stock outstanding on that date. See page 26. |
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Helix. Helixs directors and executive officers have
indicated that they intend to vote their shares of Helix common
stock FOR all the proposals to be voted on by
Helix stockholders. At the close of business on
September 21, 2005, the record date for the Helix special
meeting, directors and executive officers of Helix and their
affiliates beneficially owned and were entitled to vote, or
shared the right to vote, approximately 1.59% of the shares of
Helix common stock outstanding on that date. See page 29. |
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Q: |
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Are there risks associated with the merger that I should
consider in deciding how to vote? |
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A: |
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Yes. Among other things, the combined company may not achieve
the expected benefits of the merger because of the risks and
uncertainties discussed in the sections entitled RISK
FACTORS beginning on page 18 and CAUTIONARY
STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS on
page 24. Those risks include risks relating to the
uncertainty that Brooks and Helix will be able to integrate
their businesses successfully, uncertainties as to whether the
combined company will achieve synergies expected to result from
the merger, and uncertainties relating to the performance of the
combined company following the merger. |
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Q: |
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Are any governmental approvals conditions to the closing of
the merger? |
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A: |
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Yes. The merger is subject to review by the Antitrust Division
of the U.S. Department of Justice, which is referred to in
this joint proxy statement/ prospectus as the Antitrust
Division, and the U.S. Federal Trade Commission, which is
referred to in this joint proxy statement/ prospectus as the
FTC, to determine whether it complies with the applicable
antitrust laws. Under the provisions of the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended, which is
referred to in this joint proxy statement/ prospectus as the HSR
Act, the merger may not be consummated until the applicable
waiting period requirements of the HSR Act have been satisfied.
The waiting period expired on September 2, 2005. Each state
and foreign country in which Brooks or Helix has operations also
may review the merger under applicable state or foreign
antitrust laws. |
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Q: |
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Do I have appraisal rights? |
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A: |
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No. Neither Brooks stockholders nor Helix stockholders have
appraisal rights in the merger. See page 63. |
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Q: |
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Will my rights as a stockholder change as a result of the
merger? |
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A: |
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Brooks. No. After the merger, Brooks stockholders
will continue to hold shares of Brooks common stock, the rights
of which are, and will continue to be, governed by Brooks
certificate of incorporation and bylaws and the Delaware General
Corporation Law, which is referred to in this joint proxy
statement/ prospectus as the DGCL. See page 103. |
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Helix. Yes. Although, like Helix, Brooks is a Delaware
corporation, the Brooks certificate of incorporation and bylaws
contain different provisions than the Helix certificate of
incorporation and bylaws. See page 103 for a comparison of
stockholder rights. To obtain a copy of Brooks current
certificate of incorporation and bylaws, follow the directions
provided in the section entitled WHERE YOU CAN FIND MORE
INFORMATION on page 115. |
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Q: |
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When do you expect to complete the merger? |
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A: |
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If the merger proposals are approved at the special meetings, we
expect to complete the merger as soon as possible after the
satisfaction of the conditions to the merger. We currently
anticipate that the merger will be completed in October 2005. |
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Q: |
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What should I do now? |
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A: |
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After carefully reading and considering the information
contained in this joint proxy statement/ prospectus, please vote
by one of the methods described below. The methods of voting
that are available to you and instructions on how to vote your
proxy in that manner will be explained in the instructions
included with your proxy card or in materials you receive from
your broker or other nominee. |
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Internet: by accessing the Internet website
specified on your proxy card or supplied to you by your broker; |
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Telephone: by calling the toll-free number
specified on your proxy card or supplied to you by your broker; |
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Mail: by completing, signing and dating your
proxy card and returning it in the enclosed postage paid
envelope; or |
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In Person: by attending your companys
special meeting. |
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If I am not going to attend my special meeting, should I
return my proxy card(s)? |
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A: |
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Yes. Returning your signed and dated proxy card(s) ensures that
your shares will be represented and voted at your special
meeting, even if you are unable to or do not attend. Instead of
returning your proxy card(s), you may vote by proxy by calling a
toll-free telephone number or by using the Internet as described
in the instructions included with the Brooks or Helix proxy
card, as the case may be. See pages 26 and 29. |
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What if my shares are held in street name by my
broker? |
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A: |
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Your broker will vote your shares at your special meeting only
if you provide written instructions to your broker on how to
vote. You should instruct your broker using the instruction form
and envelope provided by your broker. If you do not provide your
broker with instructions, your broker will not be authorized to
vote with respect to the applicable proposals at your special
meeting, other than the proposals regarding adjournments. A
number of banks and brokerage firms participate in a program
that also permits stockholders whose shares are held in
street name to direct their vote by the Internet or
telephone. This option, if available, will be reflected in the
voting instructions from the bank or brokerage firm that
accompany this joint proxy statement/ prospectus. If your shares
are held in an account at a bank or brokerage firm that
participates in such a program, you may direct the vote of these
shares by the Internet or telephone by following the voting
instructions enclosed with the proxy form from the bank or
brokerage firm. If you hold your shares in your brokers
name and wish to vote in person at your special meeting, you
must contact your broker and request a document called a
brokers proxy. You must bring this
brokers proxy to your special meeting in order to vote in
person. See pages 26 and 29. |
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Q: |
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How will my proxy be voted? |
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A: |
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If you complete, sign and date your proxy card(s), or, if
available, grant your proxy by telephone or the Internet, your
shares will be voted in accordance with your instructions. If
you sign and date your proxy card(s) but do not indicate how you
want to vote, your shares will be voted FOR
the proposals at your special meeting. See pages 26 and 29. |
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What if I abstain from voting, do not vote or do not instruct
my broker to vote? |
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A: |
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Brooks. If a Brooks stockholder abstains, does not vote
or does not instruct a broker how to vote shares of Brooks
common stock held in street name, i.e., broker
non-votes, it will have no effect on the vote to approve
the Brooks merger proposal or to permit the adjournment or
postponement of the Brooks special meeting if necessary to
solicit further proxies in favor of the other proposals, and it
will have the same effect as a vote against the amendment to the
Brooks certificate of incorporation to increase the number of
authorized shares of Brooks common stock. See page 26. |
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Helix. If a Helix stockholder does not vote or does not
instruct a broker how to vote shares of Helix common stock held
in street name, i.e., broker non-votes, it will have
the same effect as a vote against the Helix merger proposal, and
it will have no effect on the proposal to permit the adjournment
or postponement of the Helix special meeting if necessary to
solicit further proxies in favor of the Helix merger proposal.
If a Helix stockholder abstains from voting, it will have the
same effect as a vote against the proposal with respect to which
the stockholder abstained. See page 29. |
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Can I change my vote after I mail my proxy card(s) or, if
available, vote by telephone or the Internet? |
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Yes. You can change your vote at any time before your proxy is
voted at the special meeting. To revoke your proxy, you must
either (1) notify the corporate secretary of Brooks or
Helix, as applicable, in writing, (2) submit a new proxy
card dated after the date of the proxy you wish to revoke,
(3) submit a later dated proxy over the Internet or by
telephone by following the instructions on your proxy card or
supplied to you by your broker or (4) attend the special
meeting and vote your shares in person. Please note that if you
vote over the Internet or by telephone, you may not be able to
revoke or change your vote after a date prior to the date of the
special meeting set forth in the instructions to voting in this
manner. Merely attending the special meeting will not
constitute revocation of your proxy. If your shares are held
in street name by your broker, you will need to contact your
broker to revoke your proxy. See pages 26 and 29. |
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Should stockholders send in their stock certificates now? |
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A: |
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No. Please do not send in your stock certificates with your
proxy card. If the merger is completed, Helix stockholders will
be sent written instructions for sending in their stock
certificates. Brooks stockholders will not need to send in their
stock certificates, even if the merger is completed. See
page 68. |
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Q: |
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What does it mean if I receive multiple proxy cards? |
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Your shares may be registered in more than one account, such as
brokerage accounts and employee stock ownership plan accounts.
It is important that you complete, sign, date and return each
proxy card you receive, or, if available, vote by proxy using
the telephone or the Internet as described in the instructions
included with each proxy card you receive. |
viii
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Q: |
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Who can answer my questions? |
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A: |
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If you have any questions about the merger or the special
meetings, need assistance in voting your shares, or need
additional copies of this joint proxy statement/ prospectus or
the enclosed proxy card(s) or voting instructions, you should
contact: |
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If you are a Brooks stockholder: |
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D. F. King & Co., Inc. |
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48 Wall Street |
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New York, NY 10005 |
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(800) 549-6746 (toll free) |
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(212) 269-5550 (call collect) |
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or |
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Brooks Automation, Inc. |
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15 Elizabeth Drive |
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Chelmsford, Massachusetts 01824 |
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Attention: Director of Investor Relations |
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Telephone: (978) 262-2400 |
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If you are a Helix stockholder: |
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The Altman Group, Inc. |
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1200 Wall Street West |
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3rd Floor |
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Lyndhurst, NJ 07071 |
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Holders: (866) 304-5477 |
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Bank/Brokers: (201) 806-7300 |
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or
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Helix Technology Corporation |
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Nine Hampshire Street |
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Mansfield, Massachusetts 02048 |
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Attention: Investor Relations |
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Telephone: (508) 337-5111 |
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Q: |
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Where can I find more information about Brooks and Helix? |
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A: |
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You can find more information about Brooks and Helix from
various sources described in the section entitled WHERE
YOU CAN FIND MORE INFORMATION beginning on page 115. |
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ix
SUMMARY
This summary of the material information contained in this
joint proxy statement/ prospectus may not include all of the
information that is important to you. To fully understand the
merger, and for a more detailed description of the terms and
conditions of the merger, you should carefully read this entire
joint proxy statement/ prospectus and the documents to which we
have referred you. See the section entitled WHERE YOU CAN
FIND MORE INFORMATION beginning on page 115. We have
included page references parenthetically in this summary to
direct you to a more detailed description of each topic located
elsewhere in this joint proxy statement/ prospectus.
Information about Brooks (page 88)
Brooks Automation, Inc., a Delaware corporation, is a leading
supplier of automation products and solutions primarily serving
the worldwide semiconductor market. Brooks supplies hardware,
software and services to both chip manufacturers and original
equipment manufacturers who make semiconductor device
manufacturing equipment. Brooks is a technology and market
leader with offerings ranging from individual hardware and
software modules to fully integrated systems as well as services
to install and support its products worldwide. Although
Brooks core business addresses the increasingly complex
automation requirements of the global semiconductor industry,
Brooks is also focused on providing automation solutions for a
number of related industries, including flat panel display
manufacturing, data storage and other complex manufacturing.
As of June 30, 2005, Brooks had approximately
1,850 full-time employees worldwide, excluding temporary
workers. Brooks executive offices are located at 15
Elizabeth Drive, Chelmsford, Massachusetts 01824, and Brooks can
be reached at (978) 262-2400. Brooks also maintains a
website at www.brooks.com.
Information about Helix (page 89)
Helix Technology Corporation, a Delaware corporation, is a world
leader in the development, manufacture, and application of
innovative vacuum technology solutions for the semiconductor,
data storage and flat panel display markets. Helixs vacuum
systems provide enabling technology for several key steps within
the semiconductor manufacturing process, including ion
implantation, physical vapor deposition, chemical vapor
deposition and etch. Semiconductor manufacturers use Helix
systems to create and maintain a vacuum environment, which is
critical to their manufacturing processes. Helix is a leading
provider of vacuum systems technology to the worlds
largest semiconductor capital equipment and semiconductor
manufacturers, placing Helix at a critical point in their
advanced technology manufacturing process. Helixs products
are also used in a broad range of industrial manufacturing
applications and advanced research and development laboratories.
Helix provides an extensive range of global support and vacuum
system monitoring services that it believes lower its
end-users total costs of ownership.
In February 2005, Helix acquired all the issued and outstanding
shares of IGC Polycold Systems, Inc., a producer of high-speed
water vapor cryopumping and cryogenic cooling products.
As of June 30, 2005, Helix had approximately
580 full-time employees worldwide, excluding temporary
workers. Helixs executive offices are located at Nine
Hampshire Street, Mansfield, Massachusetts 02048, and Helix can
be reached at (508) 337-5500. Helix also maintains a
website at www.helixtechnology.com.
Information about Mt. Hood
Mt. Hood is a Delaware corporation and wholly owned subsidiary
of Brooks, recently formed for the purpose of effecting the
merger with Helix. At the effective time of the merger, Mt. Hood
will merge with and into Helix, with Helix as the surviving
corporation. Immediately following the merger, Helix will be a
wholly owned subsidiary of Brooks.
1
Risk Factors (beginning on page 18)
There are risks Brooks and Helix stockholders should consider
before determining whether to vote in favor of the Brooks merger
proposal or the Helix merger proposal, as applicable. Risks
associated with the merger include the following:
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The market value of the Brooks common stock that Helix
stockholders will receive in the merger may be lower than
expected; |
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The merger is subject to conditions to closing that could result
in the merger being delayed or not consummated, which could
negatively impact Brooks or Helixs stock price and
future business and operations; |
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Brooks and Helix may waive one or more of the conditions to the
merger without resoliciting stockholder approval for the merger; |
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Directors and executive officers of Helix may have interests in
the merger that are different from, or in addition to, the
interests of Helix stockholders; |
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Brooks and Helix will incur substantial expenses whether or not
the merger is completed; |
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Failure to complete the merger could negatively affect
Brooks and Helixs stock prices and each
companys future business and operations; |
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Uncertainty regarding the merger and the effects of the merger
could adversely affect each companys relationships with
its customers, suppliers, and strategic partners; |
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Brooks and Helix both depend on key personnel, and the loss of
any of these key personnel because of uncertainty regarding the
merger could hurt the businesses of Brooks, Helix or the
combined company because of these employees experience in
the automation, vacuum technology and/or semiconductor
industries; |
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The merger agreement limits Helixs ability to pursue an
alternative transaction proposal to the merger and requires
Helix to pay a termination fee and reimburse Brooks for its
transaction expenses if it does; and |
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The merger may result in additional limitations on Brooks
ability to use its net operating loss carryforwards. |
Risks associated with Brooks after the merger include the
following:
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Brooks and Helix may be unable to successfully integrate their
operations and realize the full cost savings each company
anticipates; |
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Brooks expects to incur substantial expenses related to the
integration of Helix; |
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The market price of Brooks common stock may decline as a result
of the merger; |
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If the merger is consummated but the proposal to amend
Brooks certificate of incorporation is not approved, the
ability of Brooks to issue additional shares of Brooks common
stock would be limited; |
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Helix and Brooks stockholders will have a reduced ownership and
voting interest after the merger and will exercise less
influence over management; |
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Brooks may pursue additional acquisitions in the future; |
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Brooks does not anticipate paying dividends; and |
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Following completion of the merger, the combined company will
continue to face a number of risks related to its business that
are currently faced by Brooks and Helix. |
2
The Brooks Special Meeting (beginning on page 25)
The special meeting of Brooks stockholders will be held at
Brooks Automation, Inc., 15 Elizabeth Drive, Chelmsford,
Massachusetts, at 9:00 a.m. on October 26, 2005. The
purpose of the Brooks special meeting is:
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to approve the Brooks merger proposal; |
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to approve a proposal to amend Brooks certificate of
incorporation if the merger is consummated to increase
Brooks authorized shares of common stock from
100,000,000 shares to 125,000,000 shares; |
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to permit Brooks board of directors or its chairman, in
its or his discretion, to adjourn or postpone the special
meeting if necessary for further solicitation of proxies if
there are not sufficient votes at the originally scheduled time
of the special meeting to approve either of the foregoing
proposals; and |
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to act upon such other matters as may properly come before the
special meeting or any adjournments or postponements thereof. |
Brooks board of directors has fixed September 21,
2005 as the record date for determining which Brooks
stockholders are entitled to notice of and to vote at the
special meeting. The affirmative vote of a majority of the votes
properly cast on the proposal by holders of Brooks common stock
is required to approve the Brooks merger proposal and the
proposal to permit Brooks board of directors or its
chairman to adjourn or postpone the special meeting. The
affirmative vote of a majority of shares of Brooks common stock
outstanding on the record date is required to approve the
proposal to amend Brooks certificate of incorporation to
increase its authorized shares of common stock from
100,000,000 shares to 125,000,000 shares.
Brooks stockholders may vote in person or by proxy. If your
shares of Brooks common stock are held at a brokerage firm or
bank, your broker or bank should provide you with instructions
regarding how to vote your shares. Brooks and Helix will each
pay one-half of the expenses incurred in connection with
printing and mailing this joint proxy statement/ prospectus.
Brooks has hired D.F. King & Co., Inc. to assist in
obtaining proxies from its stockholders on a timely basis and
will pay D.F. King & Co., Inc. a customary fee for this
service.
The Helix Special Meeting (beginning on page 28)
The special meeting of Helix stockholders will be held at
Palmer & Dodge LLP, 111 Huntington Avenue, Boston,
Massachusetts, at 9:00 a.m. on October 26, 2005. The
purpose of the Helix special meeting is:
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to approve the Helix merger proposal; |
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to permit Helixs board of directors or its chairman, in
its or his discretion, to adjourn or postpone the special
meeting if necessary for further solicitation of proxies if
there are not sufficient votes at the originally scheduled time
of the special meeting to approve the Helix merger
proposal; and |
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to act upon such other matters as may properly come before the
special meeting or any adjournments or postponements thereof. |
Helixs board of directors has fixed September 21,
2005 as the record date for determining which Helix stockholders
are entitled to notice of and to vote at the special meeting.
The affirmative vote of holders of a majority of shares of Helix
common stock outstanding on the record date is required to
approve the Helix merger proposal. The affirmative vote of the
holders of a majority of shares of Helix common stock present at
the Helix special meeting in person or by proxy and entitled to
vote on the proposal is required to approve the proposal to
permit Helixs board of directors or its chairman to
adjourn or postpone the special meeting.
3
Helix stockholders may vote in person or by proxy. If your
shares of Helix common stock are held at a brokerage firm or
bank, your broker or bank should provide you with instructions
regarding how to vote your shares. Brooks and Helix will each
pay one-half of the expenses incurred in connection with
printing and mailing this joint proxy statement/ prospectus.
Helix has hired The Altman Group, Inc. to assist in obtaining
proxies from its stockholders on a timely basis and will pay The
Altman Group, Inc. a customary fee for this service.
The Merger (beginning on page 31)
On July 10, 2005, the boards of directors of each of Brooks
and Helix approved the combination of the two companies. In the
transaction, Mt. Hood, a newly formed, wholly owned subsidiary
of Brooks, will merge with and into Helix. Helix will be the
surviving corporation from this merger and will be a wholly
owned subsidiary of Brooks. As a result of the merger, the
shares of Helix common stock held by Helix stockholders will be
converted, without any action by those stockholders, into the
right to receive newly issued whole shares of Brooks common
stock and cash in lieu of any fractional shares. Each Helix
stockholder will also receive one Brooks preferred stock
purchase right for each share of Brooks common stock issued in
the merger.
Based upon the outstanding Brooks and Helix common stock, and
options to purchase Brooks and Helix common stock, as of
September 21, 2005, the stockholders of Brooks immediately
prior to the merger will hold approximately 61% of the
outstanding capital stock of the combined company immediately
following the merger and the stockholders of Helix immediately
prior to the merger will hold approximately 39% of the
outstanding capital stock of the combined company immediately
following the merger.
The merger agreement contemplates, but does not require, that
Helix will be merged with and into Brooks following the merger
of Mt. Hood with and into Helix. This subsequent merger, if it
occurs, would be undertaken to simplify the organizational
structure of Brooks following the combination and would have no
impact on the holders of Brooks or Helix common stock.
We encourage you to read carefully the merger agreement attached
as Annex A to this joint proxy statement/ prospectus which
sets forth the terms of the merger and is incorporated herein by
reference.
In the merger, Helix stockholders will be entitled to receive
1.11 shares of Brooks common stock for each outstanding
share of Helix common stock. Instead of fractional shares of
Brooks common stock, Helix stockholders will receive cash in an
amount equal to the fractional interest they would otherwise
receive multiplied by the average of the last sale prices of a
share of Brooks common stock as reported by The Nasdaq National
Market for the five trading days immediately preceding the
effective time of the merger. Helix stockholders who hold a
number of shares of Helix common stock that, when multiplied by
1.11, does not equal an even number of shares of Brooks common
stock, will receive the highest whole number of shares of Brooks
common stock that results from such multiplication and cash for
the remaining fractional share. For example, a Helix stockholder
who holds 99 shares of Helix common stock will receive
109 shares of Brooks common stock (99 multiplied by 1.11
equals 109.89) and cash representing 0.89 of a share of Brooks
common stock.
Helix stockholders will not know at the time they vote on the
merger the market value of the Brooks common stock that they
will receive in the merger because the exchange ratio is fixed
at 1.11 shares of Brooks common stock for each outstanding
share of Helix common stock. It is currently estimated that
approximately 29,016,209 shares of Brooks common stock will
be issued in the merger to Helix stockholders, based on
approximately 26,140,729 shares of Helix common stock
outstanding on the record date multiplied by the exchange ratio
of 1.11.
4
The following table presents the high and low sales prices per
share of Brooks common stock as reported by The Nasdaq National
Market from July 1, 2005, the first day of Brooks
fourth fiscal quarter of 2005, through September 21, 2005,
the closing price per share of Brooks common stock on
September 21, 2005 and the implied value of the Brooks
common stock Helix stockholders would receive pursuant to the
merger for each share of Helix common stock assuming those sales
prices of Brooks common stock.
|
|
|
Sales Price of Brooks Share |
|
Implied Value Per Helix Share |
|
|
|
$16.71 (high)
|
|
$18.55 |
$12.98 (low)
|
|
$14.41 |
$13.00 (September 21, 2005)
|
|
$14.43 |
Because the exchange ratio is fixed, the market value of Brooks
common stock that Helix stockholders receive in the merger could
be more or less than the market value of Brooks common stock at
the time of the vote on the merger, depending on whether the
market price of Brooks common stock decreases or increases from
the time of the vote until Helix stockholders receive their
Brooks common stock.
Brooks stockholders will not receive consideration from the
merger. Brooks will hold and conduct the combined businesses of
Brooks and Helix, and shares of Brooks common stock will remain
outstanding after the merger.
In addition to shares of Brooks common stock and a cash payment
for any fractional shares, Brooks will issue to holders of Helix
common stock one preferred stock purchase right for each share
of Brooks common stock issued in the merger. The preferred stock
purchase rights are attached to the Brooks common stock and
trade with the Brooks common stock until a triggering event
occurs. The preferred stock purchase rights are described in
more detail in the section entitled DESCRIPTION OF BROOKS
CAPITAL STOCK Rights Agreement beginning on
page 101.
At the effective time of the merger, each outstanding option to
purchase shares of Helix common stock under Helixs stock
option plans, whether vested or unvested, and each Helix stock
option plan, will be assumed by Brooks. Thereafter, each Helix
stock option will constitute an option to acquire shares of
Brooks common stock upon the same terms and conditions as prior
to the merger with appropriate adjustments in exercise prices
and the number of shares subject to each option. On the record
date, there were outstanding options to purchase an aggregate of
702,625 shares of Helix common stock.
Recommendation of Brooks Board of Directors;
Brooks Reasons for the Merger (beginning on
page 40)
Brooks board of directors has unanimously approved the
merger agreement and the merger and determined that the merger
agreement, including the merger and the issuance of shares of
Brooks common stock in the merger, is advisable, fair to, and in
the best interests of Brooks and its stockholders. Brooks
board of directors unanimously recommends that Brooks
stockholders vote FOR the Brooks merger
proposal. In reaching its decision to approve the merger
agreement, Brooks board of directors considered a number
of factors. These factors are described in the section entitled
PROPOSAL NUMBER ONE: THE MERGER PROPOSALS
Recommendation of Brooks Board of Directors; Brooks
Reasons for the Merger beginning on page 40.
Brooks board of directors also unanimously recommends that
Brooks stockholders vote FOR the proposal to
approve an amendment to Brooks certificate of
incorporation if the merger is consummated to increase the
authorized shares of Brooks common stock.
Recommendation of Helixs Board of Directors;
Helixs Reasons for the Merger (beginning on
page 42)
Helixs board of directors has unanimously approved the
merger agreement and the merger and determined that the merger
is advisable, fair to, and in the best interests of Helix and
its stockholders. Helixs board of directors unanimously
recommends that Helix stockholders vote FOR
the Helix merger
5
proposal. In reaching its decision to approve the merger
agreement, Helixs board of directors considered a number
of factors. These factors are described in the section entitled
PROPOSAL NUMBER ONE: THE MERGER PROPOSALS
Recommendation of Helixs Board of Directors; Helixs
Reasons for the Merger beginning on page 42. In
considering the recommendation of Helixs board of
directors with respect to the Helix merger proposal,
stockholders should be aware that executive officers and
directors of Helix may have interests in the merger that are
different from, or in addition to, their interests as Helix
stockholders generally. See the section entitled
PROPOSAL NUMBER ONE: THE MERGER PROPOSALS
Interests of Helixs Directors and Executive Officers in
the Merger beginning on page 59.
Opinion of Brooks Financial Advisor (beginning on
page 45)
In its decision to approve the merger agreement and the merger,
Brooks board of directors considered an opinion from its
financial advisor, Needham & Company, LLC, as to the
fairness, from a financial point of view, to Brooks of the
exchange ratio pursuant to the merger agreement. The opinion,
which sets forth the matters considered and the assumptions,
factors and limitations involved in Needham &
Companys analysis, is attached as Annex B to this
joint proxy statement/ prospectus. Needham & Company
provided its opinion for the information and assistance of
Brooks board of directors in connection with the
boards consideration of the merger. The Needham &
Company opinion is not a recommendation as to how any
stockholder should vote with respect to the issuance of Brooks
shares in the merger. You are encouraged to read the opinion in
its entirety.
Opinion of Helixs Financial Advisor (beginning on
page 53)
In its decision to approve the merger agreement and the merger,
Helixs board of directors considered an opinion from its
financial advisor, Morgan Stanley & Co. Incorporated,
as to the fairness, from a financial point of view, to the
holders of shares of Helix common stock of the exchange ratio
pursuant to the merger agreement. The opinion, which sets forth
the matters considered and the assumptions, factors and
limitations involved in Morgan Stanleys analysis, is
attached as Annex C to this joint proxy statement/
prospectus. Morgan Stanley provided its opinion for the
information and assistance of Helixs board of directors in
connection with the boards consideration of the merger.
The Morgan Stanley opinion is not a recommendation as to how any
stockholder should vote with respect to the merger. You are
encouraged to read the opinion in its entirety.
Share Ownership of Directors and Executive Officers of Brooks
and Helix (pages 26 and 29)
At the close of business on September 21, 2005, the record
date for the Brooks special meeting, directors and executive
officers of Brooks and their affiliates beneficially owned and
were entitled to vote, or shared the right to vote,
approximately 4.75% of the shares of Brooks common stock
outstanding on that date.
At the close of business on September 21, 2005, the record
date for the Helix special meeting, directors and executive
officers of Helix and their affiliates beneficially owned and
were entitled to vote, or shared the right to vote,
approximately 1.59% of the shares of Helix common stock
outstanding on that date.
Interests of Helixs Directors and Executive Officers in
the Merger (beginning on page 59)
In considering the recommendation of Helixs board of
directors with respect to the merger, stockholders of Helix
should be aware that certain directors and executive officers of
Helix may have interests in the merger that are different from,
or in addition to, their interests as Helix stockholders
generally. Specifically, as a result of or in connection with
the merger:
|
|
|
|
|
Three of Helixs current directors will become directors of
Brooks and one of Helixs current directors will become
director emeritus of Brooks; |
6
|
|
|
|
|
|
Five current Helix executives, including James Gentilcore,
President and Chief Executive Officer of Helix, and Robert
Anastasi, Executive Vice President of Helix, will be appointed
to designated positions at Brooks. Brooks has entered into
employment agreements with these executives that will provide
them with, among other benefits, severance if the executive is
terminated by Brooks without cause following the merger; and |
|
|
|
|
Helixs directors and executive officers will have the
right to continued indemnification and insurance coverage by
Brooks for acts and omissions occurring prior to the merger. |
Helixs board of directors was aware of the interests of
these directors and executives during its deliberations on the
merits of the merger and in deciding to recommend that Helix
stockholders vote for the approval of the Helix merger proposal.
Board of Directors and Executive Officers of the Surviving
Corporation (beginning on page 81)
Pursuant to the terms of the merger agreement, upon consummation
of the merger, Brooks board of directors will be composed
of ten directors, consisting of the seven current directors of
Brooks and Messrs. Robert J. Lepofsky and Alfred
Woollacott, III and Dr. Mark S. Wrighton, who were
selected by Helixs board of directors from its current
members. In addition, Dr. Marvin G. Schorr, a current
director of Helix, who was selected by Helixs board of
directors, will be appointed as a non-voting director
emeritus of Brooks board of directors, with
notification, participation and any other rights of a regular
Brooks director, other than voting rights, to serve for at least
one year following the effective time of the merger.
Pursuant to the terms of the merger agreement, five Helix
executives will have designated positions with Brooks following
the merger, including that James Gentilcore, President and Chief
Executive Officer of Helix, will serve as President and Chief
Operating Officer of a newly formed Brooks Semiconductor
Products Group and that Robert Anastasi, Executive Vice
President of Helix, will serve as Executive Vice President,
Global Operations.
Conditions to Completion of the Merger (beginning on
page 74)
As more fully described in this joint proxy statement/
prospectus and the merger agreement, the completion of the
merger depends on a number of conditions being satisfied or
waived, including, without limitation, the following:
|
|
|
|
|
The approval of the Helix merger proposal by Helix stockholders; |
|
|
|
The approval of the Brooks merger proposal by Brooks
stockholders; |
|
|
|
The absence of any applicable law or any restraining order,
injunction or other judgment issued by any court or other
government entity of competent jurisdiction prohibiting
consummation of the merger; |
|
|
|
The absence of any stop order, or proceeding seeking a stop
order, with respect to the registration statement on
Form S-4 of which this joint proxy statement/ prospectus
forms a part; and |
|
|
|
The approval for listing on The Nasdaq National Market, subject
to official notice of issuance, of the shares of Brooks common
stock issuable to Helix stockholders in the merger. |
Although we currently expect the merger to be completed in
October 2005, we cannot be certain when, or if, the
conditions to the merger will be satisfied or waived, or that
the merger will be completed.
Termination of the Merger Agreement (beginning on
page 77)
Brooks and Helix may mutually agree to terminate the merger
agreement before completing the merger, even after the approval
of the Brooks merger proposal by Brooks stockholders and the
approval of the Helix merger proposal by Helix stockholders.
Either Brooks or Helix may terminate the merger agreement if
Helix stockholders fail to approve the Helix merger proposal, if
Brooks stockholders fail to
7
approve the Brooks merger proposal, if the merger has not been
consummated by February 15, 2006 or if a court or other
governmental entity has issued a nonappealable order prohibiting
the transactions contemplated by the merger agreement.
Helix may terminate the merger agreement if a representation
made by Brooks in the merger agreement is inaccurate or Brooks
has breached a covenant contained in the merger agreement, in
each case which is incurable or not cured within 30 days of
written notice, if the inaccuracy or breach has resulted or is
reasonably likely to result in a condition to the closing of the
merger to not be satisfied. In addition, Helix may terminate the
merger agreement if Brooks board of directors has
withdrawn, modified or changed its recommendation that Brooks
stockholders approve the Brooks merger proposal. Helix may also
terminate the agreement if Helix receives a superior acquisition
proposal, Helixs board of directors concludes that its
fiduciary duties require that it change its recommendation that
Helix stockholders approve the Helix merger proposal, Helix
offers Brooks a right to match the superior proposal, Helix
enters into a definitive agreement for the implementation of the
superior proposal, Helix has not breached its non-solicitation
covenants in any material respect and Helix pays Brooks a
termination fee.
Brooks may terminate the merger agreement if a representation
made by Helix in the merger agreement is inaccurate or Helix has
breached a covenant contained in the merger agreement, in each
case which is incurable or not cured within 30 days of
written notice, if the inaccuracy or breach has resulted or is
reasonably likely to result in a condition to the closing of the
merger to not be satisfied. In addition, Brooks may terminate
the merger agreement if Helixs board of directors has
withdrawn, modified or changed its recommendation that Helix
stockholders approve the Helix merger proposal, approved or
recommended another acquisition proposal, failed to recommend
against or taken a neutral position with respect to a tender
offer for Helix common stock or materially breached its
obligations not to solicit other proposals to acquire Helix.
Termination Fees and Expenses (beginning on page 79)
Helix has agreed to pay Brooks a fee of $11.35 million in
cash and reimburse Brooks for its transaction expenses of up to
$1.5 million in the following circumstances:
|
|
|
|
|
if the merger agreement is terminated by Brooks because
Helixs board of directors has withdrawn, modified or
changed its recommendation that Helix stockholders approve the
Helix merger proposal, approved or recommended another
acquisition proposal, failed to recommend against or taken a
neutral position with respect to a tender offer for Helix common
stock or materially breached its obligations not to solicit
other proposals to acquire Helix; or |
|
|
|
if the merger agreement is terminated because of an intentional
breach of the agreement by Helix, because of the failure of
Helix stockholders to approve the Helix merger proposal or
because February 15, 2006 has passed without the Helix
special meeting having been held if at the time of termination
an alternative proposal to acquire Helix has been publicly
announced or communicated to Helixs board of directors and
Helix enters into or consummates an alternative proposal within
12 months of termination of the agreement. |
Helix has also agreed to pay Brooks a fee of $11.35 million
in cash as a condition to termination and to reimburse Brooks
for its transaction expenses up to $1.5 million if the
merger agreement is terminated by Helix because Helix received a
superior acquisition proposal, Helixs board of directors
concluded that its fiduciary duties required that it change its
recommendation that Helix stockholders approve the Helix merger
proposal, Helix offered Brooks a right to match the superior
proposal and Helix entered into a definitive agreement for the
implementation of the superior proposal.
Brooks has agreed to pay Helix a fee of $11.35 million in
cash and reimburse Helix for its transaction expenses of up to
$1.5 million if the merger agreement is terminated by Helix
because Brooks board of directors has withdrawn, modified
or changed its recommendation that Brooks stockholders approve
the Brooks merger proposal.
8
No Solicitation (beginning on page 75)
The merger agreement generally restricts the ability of Helix to
solicit any proposal or engage in discussions or negotiations
with any third party regarding any proposal to acquire
significant stock or assets of, or to merge with, Helix.
However, if Helix receives an unsolicited acquisition proposal
from a third party that Helixs board of directors
determines in good faith, after consultation with its outside
counsel and its financial advisor, would reasonably be likely to
result in a superior proposal and Helix complies with specified
procedures and satisfies specified conditions contained in the
merger agreement, Helix may furnish non-public information to
that third party and engage in discussions or negotiations
regarding an acquisition proposal with that third party.
Regulatory Matters (beginning on page 62)
The merger is subject to antitrust laws. Under the HSR Act,
Brooks and Helix cannot complete the merger until they have
notified and furnished information to the FTC and the Antitrust
Division, and the applicable waiting period expires or is
terminated. Brooks and Helix have submitted the required
regulatory filings to the FTC and the Antitrust Division. The
waiting period expired on September 2, 2005. Each state and
foreign country in which Brooks or Helix has operations also may
review the merger under applicable state or foreign antitrust
laws.
Material U.S. Federal Income Tax Consequences (beginning
on page 64)
The merger has been structured to qualify as a reorganization
within the meaning of Section 368 of the Internal Revenue
Code of 1986, as amended, which is referred to in this joint
proxy statement/ prospectus as the Internal Revenue Code.
Accordingly, no gain or loss will be recognized by Helix
stockholders for federal income tax purposes on the exchange of
shares of Helix common stock for shares of Brooks common stock.
However, Helix stockholders will recognize gain or loss for
federal income tax purposes to the extent any cash received in
place of fractional shares is greater than the tax basis
allocable to the fractional shares.
Because the tax consequences of the transaction may vary
depending upon each stockholders particular circumstances,
stockholders are urged to consult their own tax advisors about
the federal, state, local or foreign tax consequences of the
merger.
Accounting Treatment (page 63)
The merger will be accounted for as a business combination using
the purchase method of accounting. Brooks will be
the acquirer for financial accounting purposes.
Comparison of Rights of Stockholders (beginning on
page 103)
As a result of the merger, the holders of Helix common stock
will become holders of Brooks common stock. The rights of Helix
stockholders are currently governed by its certificate of
incorporation, bylaws and the laws of Delaware, and the rights
of Brooks stockholders are currently governed by its certificate
of incorporation, bylaws and the laws of Delaware. For a summary
of material differences between the rights of Helix stockholders
and Brooks stockholders, see the section entitled
COMPARISON OF RIGHTS OF STOCKHOLDERS beginning on
page 103.
No Appraisal Rights (page 63)
Neither Brooks stockholders nor Helix stockholders are entitled
to appraisal rights in the merger.
9
Selected Consolidated Historical Financial Data of Brooks
The following table sets forth selected historical financial
information derived from Brooks audited consolidated
financial statements as of and for the years ended
September 30, 2004, September 30, 2003,
September 30, 2002, September 30, 2001 and
September 30, 2000, and from Brooks unaudited
consolidated financial statements as of and for the nine months
ended June 30, 2005 and June 30, 2004. For a further
explanation of the financial data summarized here, you should
also read the sections entitled Managements
Discussion and Analysis of Financial Condition and Results of
Operations and Brooks consolidated financial
statements and related notes included in Brooks annual and
quarterly reports and in a current report filed by Brooks on
August 24, 2005 to revise the presentation of the information in
Brooks most recent annual report that are incorporated by
reference into this joint proxy statement/ prospectus. This
information should also be read in conjunction with the section
entitled UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION and the unaudited pro forma condensed combined
financial statements and notes related thereto beginning on
page 90.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended | |
|
|
|
|
June 30, | |
|
Year Ended September 30, | |
|
|
| |
|
| |
|
|
2005 | |
|
2004 | |
|
2004(2) | |
|
2003(1)(2)(7)(8) | |
|
2002(3)(7)(9) | |
|
2001(4) | |
|
2000(5)(6) | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
360,447 |
|
|
$ |
372,709 |
|
|
$ |
535,053 |
|
|
$ |
340,092 |
|
|
$ |
300,538 |
|
|
$ |
381,716 |
|
|
$ |
337,184 |
|
Gross profit
|
|
$ |
126,011 |
|
|
$ |
138,134 |
|
|
$ |
202,793 |
|
|
$ |
102,798 |
|
|
$ |
82,478 |
|
|
$ |
152,384 |
|
|
$ |
160,725 |
|
Income (loss) from continuing operations before income taxes and
minority interests
|
|
$ |
5,450 |
|
|
$ |
17,435 |
|
|
$ |
35,460 |
|
|
$ |
(177,542 |
) |
|
$ |
(620,997 |
) |
|
$ |
(36,523 |
) |
|
$ |
28,444 |
|
Income from continuing operations
|
|
$ |
1,113 |
|
|
$ |
11,698 |
|
|
$ |
27,196 |
|
|
$ |
(182,662 |
) |
|
$ |
(713,539 |
) |
|
$ |
(29,660 |
) |
|
$ |
15,109 |
|
Net income (loss)
|
|
$ |
(2,441 |
) |
|
$ |
9,691 |
|
|
$ |
17,721 |
|
|
$ |
(185,760 |
) |
|
$ |
(719,954 |
) |
|
$ |
(29,660 |
) |
|
$ |
15,109 |
|
Accretion and dividends on preferred stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
90 |
|
|
$ |
120 |
|
Net income (loss) attributable to common stockholders
|
|
$ |
(2,441 |
) |
|
$ |
9,691 |
|
|
$ |
17,721 |
|
|
$ |
(185,760 |
) |
|
$ |
(719,954 |
) |
|
$ |
(29,750 |
) |
|
$ |
14,989 |
|
Basic earnings (loss) per share for continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.28 |
|
|
$ |
0.63 |
|
|
$ |
(4.97 |
) |
|
$ |
(27.65 |
) |
|
$ |
(1.65 |
) |
|
$ |
0.96 |
|
Diluted earnings (loss) per share for continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.27 |
|
|
$ |
0.63 |
|
|
$ |
(4.97 |
) |
|
$ |
(27.65 |
) |
|
$ |
(1.65 |
) |
|
$ |
0.88 |
|
Shares used in computing basic earnings (loss) per share
|
|
|
44,857 |
|
|
|
42,458 |
|
|
|
43,006 |
|
|
|
36,774 |
|
|
|
25,807 |
|
|
|
18,015 |
|
|
|
15,661 |
|
Shares used in computing diluted earnings (loss) per share
|
|
|
45,124 |
|
|
|
43,011 |
|
|
|
43,469 |
|
|
|
36,774 |
|
|
|
25,807 |
|
|
|
18,015 |
|
|
|
17,192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, | |
|
As of September 30, | |
|
|
| |
|
| |
|
|
2005 | |
|
2004 | |
|
2004 | |
|
2003 | |
|
2002 | |
|
2001 | |
|
2000(6) | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
640,469 |
|
|
$ |
658,441 |
|
|
$ |
671,039 |
|
|
$ |
493,245 |
|
|
$ |
657,497 |
|
|
$ |
709,704 |
|
|
$ |
519,786 |
|
Working capital
|
|
$ |
328,521 |
|
|
$ |
266,607 |
|
|
$ |
294,137 |
|
|
$ |
135,156 |
|
|
$ |
176,338 |
|
|
$ |
282,163 |
|
|
$ |
306,836 |
|
Note payable and revolving credit facilities
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
17,122 |
|
|
$ |
16,350 |
|
Current portion of long-term debt and capital lease obligations
|
|
$ |
12 |
|
|
$ |
10 |
|
|
$ |
11 |
|
|
$ |
98 |
|
|
$ |
8 |
|
|
$ |
392 |
|
|
$ |
524 |
|
Convertible subordinated notes due 2008
|
|
$ |
175,000 |
|
|
$ |
175,000 |
|
|
$ |
175,000 |
|
|
$ |
175,000 |
|
|
$ |
175,000 |
|
|
$ |
175,000 |
|
|
$ |
|
|
Long-term debt and capital lease obligations (less current
portion)
|
|
$ |
5 |
|
|
$ |
17 |
|
|
$ |
14 |
|
|
$ |
25 |
|
|
$ |
177 |
|
|
$ |
31 |
|
|
$ |
332 |
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June 30, | |
|
As of September 30, | |
|
|
| |
|
| |
|
|
2005 | |
|
2004 | |
|
2004 | |
|
2003 | |
|
2002 | |
|
2001 | |
|
2000(6) | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Redeemable convertible preferred stock
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
2,601 |
|
Stockholders equity
|
|
$ |
316,210 |
|
|
$ |
303,539 |
|
|
$ |
312,895 |
|
|
$ |
162,830 |
|
|
$ |
308,235 |
|
|
$ |
424,169 |
|
|
$ |
415,284 |
|
|
|
(1) |
Amounts include results of operations of Microtool, Inc.
(acquired October 9, 2002) for the periods subsequent to
its acquisition. |
|
(2) |
Amounts include Brooks share of the results of operations
of Brooks Switzerland (disposed May 16, 2003) in accordance
with the equity method of accounting, for the periods subsequent
to its disposition. |
|
(3) |
Amounts include results of operations of Hermos Informatik GmbH
(acquired July 3, 2002); PRI Automation, Inc. (acquired
May 14, 2002); Intelligent Automation Systems, Inc. and IAS
Products, Inc. (acquired February 15, 2002) (see
Note 7); Fab Air Control (acquired December 15, 2001);
the Automation Systems Group of Zygo Corporation (acquired
December 13, 2001); Tec-Sem A.G. (acquired October 9,
2001) and General Precision, Inc. (acquired October 5,
2001) for the periods subsequent to their respective
acquisitions. |
|
(4) |
Amounts include results of operations of SEMY Engineering, Inc.
(acquired February 16, 2001), the KLA e-Diagnostics product
business (acquired June 26, 2001), CCS Technology, Inc.
(acquired June 25, 2001) and SimCon N.V. (acquired
May 15, 2001) for the periods subsequent to their
respective acquisitions. |
|
(5) |
Amounts include results of operations of the Infab Division of
Jenoptik AG (acquired September 30, 1999); Auto-Soft
Corporation and AutoSimulations, Inc. (acquired January 6,
2000) and MiTeX Solutions (acquired June 23, 2000) for the
periods subsequent to their respective acquisitions. |
|
(6) |
Amounts have been restated to reflect the acquisition of
Progressive Technologies, Inc. in a pooling of interests
transaction effective July 12, 2001. |
|
(7) |
Amounts from continuing operations exclude results of operations
of the Specialty Equipment and Life Sciences division,
previously reported as the Companys Other
reportable segment, which was reclassified as a discontinued
operation in June 2005. |
|
(8) |
Amounts include $40.0 million for asset impairments. |
|
(9) |
Amounts include $474.4 million for asset impairments and
$106.7 million for deferred tax write-offs. |
11
Selected Consolidated Historical Financial Data of Helix
The following table sets forth selected historical financial
information derived from the audited historical consolidated
financial statements and related notes of Helix for each of the
fiscal years in the five-year period ended December 31,
2004 and the unaudited consolidated financial statements of
Helix for the six months ended July 1, 2005 and
July 2, 2004. You should also read the section of
Helixs annual and quarterly reports entitled
Managements Discussion and Analysis of Financial
Condition and Results of Operations and Helixs
consolidated financial statements and related notes incorporated
by reference into this joint proxy statement/ prospectus for a
further explanation of the financial data summarized here. This
information should also be read in conjunction with the section
entitled UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION and the unaudited pro forma condensed combined
financial statements and notes related thereto beginning on
page 90.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended | |
|
Year Ended December 31, | |
|
|
| |
|
| |
|
|
July 1, 2005 | |
|
July 2, 2004 | |
|
2004 | |
|
2003 | |
|
2002 | |
|
2001 | |
|
2000 | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ |
80,795 |
|
|
$ |
84,400 |
|
|
$ |
159,674 |
|
|
$ |
105,883 |
|
|
$ |
100,241 |
|
|
$ |
112,994 |
|
|
$ |
253,085 |
|
Net income (loss)(1)
|
|
$ |
4,338 |
|
|
$ |
11,018 |
|
|
$ |
27,511 |
|
|
$ |
(11,136 |
) |
|
$ |
(19,418 |
) |
|
$ |
(5,940 |
) |
|
$ |
45,870 |
|
Net income (loss) per weighted average share, basic
|
|
$ |
0.17 |
|
|
$ |
0.42 |
|
|
$ |
1.05 |
|
|
$ |
(0.43 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.26 |
) |
|
$ |
2.04 |
|
Net income (loss) per weighted average share, diluted
|
|
$ |
0.17 |
|
|
$ |
0.42 |
|
|
$ |
1.05 |
|
|
$ |
(0.43 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.26 |
) |
|
$ |
2.02 |
|
Cash dividends per share
|
|
$ |
0.16 |
|
|
$ |
0.08 |
|
|
$ |
0.24 |
|
|
$ |
0.16 |
|
|
$ |
0.28 |
|
|
$ |
0.44 |
|
|
$ |
0.48 |
|
Weighted average shares, basic
|
|
|
26,116 |
|
|
|
26,107 |
|
|
|
26,110 |
|
|
|
26,099 |
|
|
|
25,364 |
|
|
|
22,565 |
|
|
|
22,498 |
|
Weighted average shares, diluted
|
|
|
26,161 |
|
|
|
26,223 |
|
|
|
26,187 |
|
|
|
26,099 |
|
|
|
25,364 |
|
|
|
22,565 |
|
|
|
22,762 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of | |
|
As of December 31, | |
|
|
| |
|
| |
|
|
July 1, 2005 | |
|
July 2, 2004 | |
|
2004 | |
|
2003 | |
|
2002 | |
|
2001 | |
|
2000 | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
169,173 |
|
|
$ |
156,955 |
|
|
$ |
169,564 |
|
|
$ |
145,990 |
|
|
$ |
159,471 |
|
|
$ |
113,580 |
|
|
$ |
141,968 |
|
Long-term obligations(2)
|
|
$ |
7,653 |
|
|
$ |
9,369 |
|
|
$ |
6,403 |
|
|
$ |
8,352 |
|
|
$ |
8,928 |
|
|
$ |
6,758 |
|
|
$ |
5,586 |
|
|
|
(1) |
Net income for the six months ended July 1, 2005 includes
merger costs of $498,000 related to merger due diligence. Net
income for the year ended December 31, 2004, reflects a
reversal totaling $8,935,000 of a valuation allowance against
net deferred tax assets and a net tax benefit of $4,534,000
related to the settlement of an IRS audit. Net loss for the year
ended December 31, 2003, reflects a $10,674,000 charge to
establish a full valuation allowance against net deferred tax
assets. Net loss for the year ended December 31, 2002,
reflects $13,214,000 of a litigation settlement, restructurings
and other charges. Net loss for the year ended December 31,
2001, reflects a restructuring charge of $1,047,000 related to
workforce reductions. |
|
(2) |
Long-term obligations consist of accrued retirement costs
relating to our defined benefit pension plan and Supplemental
Key Executive Retirement Plan. |
12
Summary Unaudited Pro Forma Condensed Combined Financial
Data
Brooks and Helix derived the following unaudited pro forma
condensed combined financial data from Brooks audited
consolidated financial statements for the year ended
September 30, 2004, Helixs audited consolidated
financial results for the year ended December 31, 2004,
Brooks unaudited consolidated financial statements for the
nine months ended June 30, 2005, and Helixs unaudited
consolidated financial results for the nine months ended
July 1, 2005. The financial data have been prepared as if
the proposed merger had occurred on October 1, 2003 for the
statements of operations and on June 30, 2005 for the
balance sheet data. The unaudited pro forma statements of
operations and balance sheet data set forth below are not
necessarily indicative of the results that actually would have
been achieved had the proposed merger been consummated on
October 1, 2003 for the statement of operations and on
June 30, 2005 for the balance sheet data, or that may be
achieved in the future. The unaudited pro forma condensed
combined financial data do not reflect any benefits from
potential cost savings or revenue changes resulting from the
proposed merger. You should read this information in conjunction
with Brooks Managements Discussion and Analysis of
Financial Condition and Results of Operations, Brooks
consolidated financial statements and the notes thereto,
Helixs Managements Discussion and Analysis of
Financial Condition and Results of Operations, Helixs
consolidated financial statements and notes thereto, and the
Unaudited Condensed Combined Pro Forma Financial Information and
the unaudited pro forma condensed combined financial statements
and notes related thereto included in this joint proxy
statement/ prospectus or included in Brooks and
Helixs Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q and Current Reports on Form 8-K
incorporated by reference into this joint proxy statement/
prospectus.
The pro forma adjustments are based upon assumptions and
preliminary available information that Brooks believes are
reasonable under the circumstances. A final determination of
fair values relating to the merger, which cannot be made prior
to the completion of the merger, may differ materially from the
preliminary estimates and will include managements final
valuation of the fair value of assets acquired and liabilities
assumed. This final valuation will be based on the actual net
tangible and identifiable intangible assets of Helix that exist
as of the date of the completion of the merger. The final
valuation may change the allocations of the purchase price,
which could affect the fair value assigned to the assets and
liabilities and could result in a change to the unaudited pro
forma condensed combined financial statements data. The pro
forma adjustments are more fully described in the notes to the
unaudited pro forma condensed combined financial statements
found elsewhere in this joint proxy statement/ prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended | |
|
Year Ended | |
|
|
June 30, 2005 | |
|
September 30, 2004 | |
|
|
| |
|
| |
|
|
(In thousands, except per share data) | |
Statement of Operations Data:
|
|
|
|
|
|
|
|
|
Revenues
|
|
$ |
475,834 |
|
|
$ |
694,229 |
|
Income from continuing operations before income taxes and
minority interests
|
|
|
6,769 |
|
|
|
44,383 |
|
Income from continuing operations
|
|
|
2,728 |
|
|
|
35,984 |
|
Earnings per share from continuing operations
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
0.04 |
|
|
|
0.50 |
|
|
Diluted
|
|
|
0.04 |
|
|
|
0.50 |
|
|
|
|
|
|
|
|
June 30, 2005 | |
|
|
| |
Balance Sheet Data:
|
|
|
|
|
Total assets
|
|
$ |
1,132,531 |
|
Working capital
|
|
|
385,917 |
|
Capital lease obligations
|
|
|
12 |
|
Convertible subordinated notes due 2008
|
|
|
175,000 |
|
Capital lease obligations (less current portion)
|
|
|
5 |
|
Stockholders equity
|
|
|
765,690 |
|
13
Financial Summary
|
|
|
Brooks Market Price Data and Dividends |
Brooks common stock is traded on The Nasdaq National Market
under the ticker symbol BRKS. The following table
sets forth the high and low sales prices of shares of Brooks
common stock as reported by The Nasdaq National Market for the
periods referenced below.
|
|
|
|
|
|
|
|
|
|
|
Common Shares | |
|
|
| |
Year Ended |
|
High | |
|
Low | |
|
|
| |
|
| |
September 30, 2003
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
16.13 |
|
|
$ |
8.75 |
|
Second Quarter
|
|
$ |
13.78 |
|
|
$ |
8.62 |
|
Third Quarter
|
|
$ |
13.35 |
|
|
$ |
7.50 |
|
Fourth Quarter
|
|
$ |
28.10 |
|
|
$ |
10.95 |
|
September 30, 2004
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
27.65 |
|
|
$ |
19.00 |
|
Second Quarter
|
|
$ |
27.50 |
|
|
$ |
17.64 |
|
Third Quarter
|
|
$ |
23.04 |
|
|
$ |
15.96 |
|
Fourth Quarter
|
|
$ |
20.15 |
|
|
$ |
11.50 |
|
September 30, 2005
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
18.39 |
|
|
$ |
13.35 |
|
Second Quarter
|
|
$ |
18.91 |
|
|
$ |
14.28 |
|
Third Quarter
|
|
$ |
16.51 |
|
|
$ |
12.41 |
|
Fourth Quarter (through September 21, 2005)
|
|
$ |
16.71 |
|
|
$ |
12.98 |
|
The last reported sales prices of shares of Brooks common stock
as reported by The Nasdaq National Market on July 8, 2005
and September 21, 2005 were $15.59 and $13.00,
respectively. July 8, 2005 was the last full trading day
prior to the public announcement of the merger agreement.
September 21, 2005 was the last practicable trading day
prior to the date of this joint proxy statement/ prospectus.
Brooks has never declared or paid any cash dividends on its
capital stock and does not currently intend to pay any cash
dividends in the future.
14
|
|
|
Helixs Market Price Data and Dividends |
Helix common stock is traded on The Nasdaq National Market under
the symbol HELX. The following table sets forth the
high and low sales prices of shares of Helix common stock as
reported by The Nasdaq National Market for the periods
referenced below.
|
|
|
|
|
|
|
|
|
|
|
Common Shares | |
|
|
| |
Year Ended |
|
High | |
|
Low | |
|
|
| |
|
| |
December 31, 2003
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
14.20 |
|
|
$ |
6.95 |
|
Second Quarter
|
|
$ |
14.28 |
|
|
$ |
8.35 |
|
Third Quarter
|
|
$ |
19.28 |
|
|
$ |
12.62 |
|
Fourth Quarter
|
|
$ |
22.28 |
|
|
$ |
14.90 |
|
December 31, 2004
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
27.90 |
|
|
$ |
20.37 |
|
Second Quarter
|
|
$ |
26.18 |
|
|
$ |
16.95 |
|
Third Quarter
|
|
$ |
19.64 |
|
|
$ |
12.62 |
|
Fourth Quarter
|
|
$ |
17.61 |
|
|
$ |
12.53 |
|
December 31, 2005
|
|
|
|
|
|
|
|
|
First Quarter
|
|
$ |
18.23 |
|
|
$ |
14.25 |
|
Second Quarter
|
|
$ |
16.39 |
|
|
$ |
11.40 |
|
Third Quarter (through September 21, 2005)
|
|
$ |
18.26 |
|
|
$ |
12.79 |
|
The last reported sales prices of shares of Helix common stock
as reported by The Nasdaq National Market on July 8, 2005,
and September 21, 2005 were $13.89 and $14.37,
respectively. July 8, 2005 was the last full trading day
prior to the public announcement of the merger agreement.
September 21, 2005 was the last practicable trading day
prior to the date of this joint proxy statement/ prospectus.
Helixs policy has been to pay dividends out of funds in
excess of the needs of its business. During the year ended
December 31, 2004, Helix paid cash dividends to its
stockholders of $0.04 per share in the first and second
quarters and increased the dividend to $0.08 per share in
the third and fourth quarters. During the six months ended
July 1, 2005, Helix paid cash dividends to its stockholders
of $0.08 per share for both the first quarter ended
April 1, 2005 and the second quarter ended July 1,
2005. The merger agreement permits Helix to continue to pay
quarterly dividends consistent with past practice. If the merger
is not completed, any future payment of dividends on Helix
common stock will depend upon its financial condition, capital
requirements and its earnings as well as other factors that
Helixs board of directors deems relevant.
15
Comparative Per Share Information
The following table presents historical per share information
and book value per common share data separately for Brooks and
Helix on a historical basis, and Brooks and Helix on an
unaudited pro forma combined basis per share of Brooks common
stock and on an unaudited pro forma combined basis per
equivalent share of Helix common stock. The unaudited pro forma
earnings per share data reflect the assumption that the merger
was effective on October 1, 2003. The unaudited pro forma
book value per share data assumes the merger was effective
June 30, 2005. The unaudited pro forma per share data gives
effect to the proposed merger as a purchase by Brooks under
generally accepted accounting principles in the United States.
You should read the information below together with the
historical financial statements and related notes of Brooks and
Helix contained in each companys periodic filings with the
SEC and incorporated into this joint proxy statement/ prospectus
by reference. See the section entitled WHERE YOU CAN FIND
MORE INFORMATION beginning on page 115. The unaudited
pro forma combined per share data below is presented for
illustrative purposes only. The companies may have performed
differently had they actually been combined during the periods
presented below. You should not rely on this information as
being indicative of the historical results that would have been
achieved had the companies always been combined or the future
results that the combined company will experience after the
merger.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma | |
|
|
Historical | |
|
Historical | |
|
Pro Forma | |
|
Equivalent of One | |
|
|
Brooks | |
|
Helix | |
|
Combined(1) | |
|
Helix Share(2) | |
|
|
| |
|
| |
|
| |
|
| |
Year ended September 30, 2004 (Brooks and pro forma) and
December 31, 2004 (Helix):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share from continuing operations
|
|
$ |
0.63 |
|
|
$ |
1.05 |
|
|
$ |
0.50 |
|
|
$ |
0.56 |
|
|
Diluted income per share from continuing operations
|
|
$ |
0.63 |
|
|
$ |
1.05 |
|
|
$ |
0.50 |
|
|
$ |
0.56 |
|
|
Cash dividends per share
|
|
|
|
|
|
$ |
0.24 |
|
|
$ |
0.09 |
|
|
$ |
0.10 |
|
Nine months ended June 30, 2005 (Brooks and pro forma) and
July 1, 2005 (Helix):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share from continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.58 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
Diluted income per share from continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.58 |
|
|
$ |
0.04 |
|
|
$ |
0.04 |
|
|
Cash dividends per share
|
|
|
|
|
|
$ |
0.24 |
|
|
$ |
0.08 |
|
|
$ |
0.09 |
|
Book value per share: June 30, 2005
|
|
$ |
6.98 |
|
|
$ |
5.41 |
|
|
$ |
10.30 |
|
|
$ |
11.43 |
|
|
|
(1) |
Includes the effect of the merger on the basis as described in
the notes to the unaudited pro forma condensed combined
financial information included elsewhere in this joint proxy
statement/ prospectus. |
|
(2) |
Calculated by applying the exchange ratio of 1.11x to the pro
forma combined net earnings and book value per share. |
16
Comparative Market Value Information
The following table presents the closing prices per share and
aggregate market value of Brooks common stock and Helix common
stock, in each case based on closing prices for those shares on
The Nasdaq National Market on July 8, 2005, the last
trading day prior to the public announcement of the merger, and
on September 21, 2005, the last practicable trading day for
which this information could be calculated prior to the
distribution of this joint proxy statement/ prospectus. The pro
forma equivalent per share price included in the table reflects
the value of the Brooks common stock that Helix stockholders
would receive for each share of Helix common stock if the merger
was completed on the indicated date.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks | |
|
Helix | |
|
Helix | |
|
|
Historical | |
|
Historical | |
|
Equivalent | |
|
|
| |
|
| |
|
| |
July 8, 2005:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing price per share
|
|
$ |
15.59 |
|
|
$ |
13.89 |
|
|
$ |
17.30 |
|
|
Market value of shares (in thousands)(1)
|
|
$ |
706,495 |
|
|
$ |
362,973 |
|
|
$ |
452,083 |
|
September 21, 2005:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Closing price per share
|
|
$ |
13.00 |
|
|
$ |
14.37 |
|
|
$ |
14.43 |
|
|
Market value of shares (in thousands)(2)
|
|
$ |
590,613 |
|
|
$ |
375,642 |
|
|
$ |
377,211 |
|
|
|
(1) |
Based on 45,317,214 shares of Brooks common stock and
26,131,979 shares of Helix common stock outstanding as of
July 8, 2005. |
|
|
(2) |
Based on 45,431,784 shares of Brooks common stock and
26,140,729 shares of Helix common stock outstanding as of
September 21, 2005. |
|
17
RISK FACTORS
In addition to the other information contained in or
incorporated by reference into this joint proxy statement/
prospectus, you should carefully consider the following risk
factors in deciding whether to vote for, in the case of Brooks
stockholders, approval of the Brooks merger proposal, and, in
the case of Helix stockholders, approval of the Helix merger
proposal. Other risk factors with respect to Brooks can be found
in Brooks Annual Report on Form 10-K for the fiscal
year ended September 30, 2004 and in Brooks Quarterly
Reports on Form 10-Q for the fiscal quarters ended
December 31, 2004, March 31, 2005 and June 30,
2005, which are incorporated herein by reference. Other risk
factors with respect to Helix can be found in Helixs
Annual Report on Form 10-K for the fiscal year ended
December 31, 2004 and Helixs Quarterly Reports on
Form 10-Q for the fiscal quarters ended April 1, 2005
and July 1, 2005, which are incorporated herein by
reference.
Risks Associated with the Merger
|
|
|
The market value of the Brooks common stock that Helix
stockholders will receive in the merger may be lower than
expected. |
In the merger, Helix stockholders will have the right to receive
1.11 shares of Brooks common stock in exchange for each
outstanding share of Helix common stock held by them. This is a
fixed exchange ratio. The merger agreement does not contain any
provision to adjust this ratio for changes in the market price
of Brooks common stock or Helix common stock, and neither Brooks
nor Helix is permitted to terminate the merger agreement
primarily because of such changes. The market value of Brooks
common stock when the merger is completed may vary from the
market value of Brooks common stock as of the date of this joint
proxy statement/ prospectus or as of the date of the special
meeting of Helix stockholders and the special meeting of Brooks
stockholders. For example, from September 21, 2004 to
September 21, 2005, the sale price of Brooks common stock
ranged from a low of $12.41 per share to a high of $18.91 per
share, as reported on The Nasdaq National Market. This variation
may result from ordinary trading fluctuations as well as changes
in the business, operations or prospects of Brooks, general
market and economic conditions, and other factors that may
affect Brooks common stock differently from Helix common stock.
If the market value of Brooks common stock declines prior to the
effective time of the merger, the market value of the stock
issued to Helix stockholders in the merger could be lower than
expected. The historical prices of Brooks common stock and Helix
common stock included in this joint proxy statement/ prospectus
may not be indicative of their respective prices on the date the
merger is effective. Stockholders are urged to obtain recent
market quotations for Brooks common stock and Helix common
stock. Future market prices of Brooks common stock and Helix
common stock cannot be guaranteed or predicted.
|
|
|
The merger is subject to conditions to closing that could
result in the merger being delayed or not consummated, which
could negatively impact Brooks or Helixs stock price
and future business and operations. |
The merger is subject to conditions to closing as set forth in
the merger agreement. If any of the conditions to the merger are
not satisfied and, where waiver is permissible, not waived, the
merger will not be consummated. Failure to consummate the merger
could negatively impact Brooks or Helixs stock price
and future business and operations. Any delay in the
consummation of the merger or any uncertainty about the
consummation of the merger may adversely affect the future
businesses, growth, revenue and results of operations of either
or both of the companies or the combined company.
|
|
|
Brooks and Helix may waive one or more of the conditions
to the merger without resoliciting stockholder approval for the
merger. |
The conditions to Brooks and Helixs obligations to
complete the merger may be waived, in whole or in part, to the
extent legally allowed, either unilaterally or by agreement of
Brooks and Helix, depending upon the condition. The board of
directors of Brooks or Helix, as applicable, will evaluate the
materiality
18
of any such waiver to determine whether amendment of this joint
proxy statement/ prospectus and resolicitation of proxies is
necessary. In the event that the board of directors of Brooks or
Helix determines any such waiver is not significant enough to
require resolicitation of stockholders, it will have the
discretion to complete the merger without seeking further
stockholder approval.
|
|
|
Directors and executive officers of Helix may have
interests in the merger that are different from, or in addition
to, the interests of Helix stockholders. |
Some of the directors and executive officers of Helix who
recommend that stockholders vote in favor of the merger
agreement and the merger or otherwise support the merger have,
or are likely to have, employment, change in control or
severance agreements or benefit arrangements that provide them
with interests in the merger that differ from or are in addition
to those of Helix stockholders. The entitlement to compensation
or other benefits as a result of the merger, including change in
control or severance benefits or the continuation of
indemnification arrangements for current directors and officers
of Helix following completion of the merger, may influence
directors and executive officers in supporting the merger or in
making their recommendation that you vote in favor of the merger
agreement. For more information about these interests, see the
section entitled PROPOSAL NUMBER ONE: THE MERGER
PROPOSALS Interests of Helixs Directors and
Executive Officers in the Merger beginning on page 59.
|
|
|
Brooks and Helix will incur substantial expenses whether
or not the merger is completed. |
Brooks and Helix will incur substantial expenses related to the
merger whether or not the merger is completed. These costs
include fees for financial advisors, attorneys and accountants,
filing fees and financial printing costs. Brooks currently
expects to incur approximately $8.3 million in
transactional expenses, approximately $2.1 million of which
are not contingent on the completion of the merger. Helix
currently expects to incur approximately $7.4 million in
transactional expenses, approximately $1.7 million of which
are not contingent on the completion of the merger. Moreover, in
the event the merger agreement is terminated, Brooks or Helix
may, under certain circumstances, be required to pay an
$11.35 million termination fee and expense reimbursement of
up to $1.5 million.
In addition, in the event the merger is completed, Brooks
expects to incur significant additional expenses in connection
with the integration of the two businesses, including
integrating personnel, customers, and strategic partners of each
company and implementing consistent standards, policies, and
procedures.
|
|
|
Failure to complete the merger could negatively affect
Brooks and Helixs stock prices and each
companys future business and operations. |
If the merger is not completed for any reason, the price of
Brooks common stock and Helix common stock may decline because
the current market prices of Brooks common stock and Helix
common stock may reflect a positive market assumption that the
merger will be completed or because the failure to complete the
merger may result in a negative market reaction. In addition, if
the merger is not completed, each company may be subject to
payment of expenses that are either not contingent on the
completion of the merger or are due upon termination of the
merger. See the risk factor entitled Brooks
and Helix will incur substantial expenses whether or not the
merger is completed.
Moreover, if the merger agreement is terminated, either company
may be unable to find a partner willing to engage in a similar
transaction on terms as favorable as those set forth in the
merger agreement, or at all. This could limit each
companys ability to pursue its strategic goals.
|
|
|
Uncertainty regarding the merger and the effects of the
merger could adversely affect each companys relationships
with its customers, suppliers, and strategic partners. |
In response to the announcement of the merger, customers,
suppliers and strategic partners of Brooks or Helix may delay or
defer decisions, or otherwise alter their relationships with
Brooks or Helix, which
19
could have an adverse effect on the business of that company,
whether or not the merger is completed. Brooks and Helix depend,
and it is expected that the combined company will depend, on a
limited number of customers and suppliers for a large portion of
their respective businesses, and the loss of, or delays or
declines in, orders from key customers or shipments from key
suppliers could materially adversely affect Brooks,
Helixs or the combined companys net sales.
|
|
|
Brooks and Helix both depend on key personnel, and the
loss of any of these key personnel because of uncertainty
regarding the merger could hurt the businesses of Brooks, Helix
or the combined company because of these employees
experience in the automation, vacuum technology and/or
semiconductor industries. |
Brooks and Helix depend on the services of their key senior
executives and other technological experts because of their
experience in the automation, vacuum technology and
semiconductor industries. Current and prospective employees of
Brooks and Helix may experience uncertainty about their future
roles with the combined company, which may adversely affect the
ability of each company to retain and attract key management,
technical and other personnel. The loss of the services of one
or more of these key employees or the inability of Brooks, Helix
or the combined company to attract, train, and retain qualified
employees could result in the loss of customers or otherwise
inhibit the ability of Brooks, Helix or the combined company to
integrate and grow its business effectively.
|
|
|
The merger agreement limits Helixs ability to pursue
an alternative transaction proposal to the merger and requires
Helix to pay a termination fee and reimburse Brooks for its
transaction expenses if it does. |
The merger agreement prohibits Helix from soliciting,
initiating, encouraging or facilitating alternative transaction
proposals with any third party, subject to exceptions set forth
in the merger agreement. In addition, due to the termination
provisions of the merger agreement, it is possible that a third
party who might be interested in pursuing a business combination
with Helix will be discouraged from doing so. Any third party
proposal might be advantageous to the stockholders of Helix when
compared to the terms and conditions of the transaction
described in this joint proxy statement/ prospectus. In
particular, the termination fee provisions of the merger
agreement may deter third parties from proposing alternative
business combinations that might result in greater value to
Helix stockholders than the merger. In addition, in the event
that the merger agreement is terminated by Brooks or Helix in
circumstances that obligate Brooks or Helix to pay a termination
fee and reimburse the other party for its transaction expenses,
including where either party terminates the merger agreement
because the other partys board of directors withdraws its
support of the merger, Brooks or Helixs stock price
may decline as a result of its payment of the termination fee
and expense reimbursement. See the sections entitled THE
MERGER AGREEMENT No Solicitation; THE
MERGER AGREEMENT Change in Recommendation; and
THE MERGER AGREEMENT Termination Fees and
Expenses.
|
|
|
The merger may result in additional limitations on
Brooks ability to use its net operating loss
carryforwards. |
As of September 30, 2004, Brooks had approximately
$626.0 million of federal and state net operating loss
carryforwards, approximately $21.7 million of foreign net
operating loss carryforwards and approximately
$31.5 million of tax credits. Tax laws applicable to some
of these tax attributes provide that Brooks ability to use
them is limited in certain circumstances. It is unclear whether
the merger will impose additional limitations on its ability to
use these tax attributes, but it is possible that additional
limitations may apply following the merger. In addition, even if
the merger does not create additional limitations on
Brooks ability to use its tax attributes, the significant
number of shares that Brooks expects to issue in the merger
increases the likelihood that future acquisitions of Brooks
common stock, in an acquisition transaction or otherwise, will
create additional limitations. If additional limitations do
apply, Brooks ability to use these tax attributes to
reduce its taxable income will be further limited, which may
adversely affect Brooks financial condition and results of
operations.
20
Risks Associated with Brooks After the Merger
|
|
|
Brooks and Helix may be unable to successfully integrate
their operations and realize the full cost savings each company
anticipates. |
The merger involves the integration of two companies that have
previously operated independently. The difficulties of combining
the operations of the companies include:
|
|
|
|
|
the challenge of effecting integration while carrying on an
ongoing business; |
|
|
|
the necessity of coordinating geographically separate
organizations; |
|
|
|
retaining and integrating personnel with diverse business
backgrounds and cultures; |
|
|
|
retaining existing customers and strategic partners of each
company; and |
|
|
|
implementing and maintaining consistent standards, controls,
procedures, policies and information systems. |
The process of integrating operations could cause an
interruption of, or loss of momentum in, the activities of one
or more of the combined companys businesses and the loss
of key personnel. The diversion of managements attention
and any delays or difficulties encountered in connection with
the merger and the integration of the two companies
operations could have an adverse effect on the business, results
of operations or financial condition of the combined company.
Among the factors considered by Brooks and Helixs
boards of directors in connection with their respective
approvals of the merger agreement and the merger were the
benefits of more diversified product lines, the broader customer
base and the enhanced technology capabilities, as well as the
potential cost savings, including an expected $10.0 million
of cost savings during Brooks fiscal year ending
September 30, 2006, that are expected to result from the
merger. The combined company may not, however, realize these
cost savings or any other anticipated benefit of the merger
within the time periods contemplated, or at all.
|
|
|
Brooks expects to incur substantial expenses related to
the integration of Helix. |
Brooks expects to incur substantial expenses in connection with
the integration of the business, policies, procedures,
operations and systems of Helix with those of Brooks. The
failure of the combined company to meet the challenges involved
in integrating the companies business and operations, or
to do so on a timely basis, could cause substantial additional
expense and serious harm to the combined company. For example,
there are a large number of systems that must be integrated,
including management information, accounting and finance, sales,
billing, payroll and benefits. While Brooks has assumed that it
would incur integration expenses, there are a number of factors,
some of which are beyond its control, that could affect the
total amount or the timing of all of the expected integration
expenses including:
|
|
|
|
|
constraints arising under U.S. federal or state antitrust
laws, such as limitations on sharing of information, that may
prevent or hinder Brooks from fully developing integration plans
prior to regulatory approval; |
|
|
|
employee redeployment, relocation or severance, as well as
reorganization or closures of facilities; |
|
|
|
consolidating and rationalizing information technology and
administrative infrastructures; |
|
|
|
coordinating sales and marketing efforts to effectively
communicate the capabilities of the combined company; |
|
|
|
preserving supply, marketing or other important relationships of
both Brooks and Helix and resolving potential conflicts that may
arise; and |
21
|
|
|
|
|
minimizing the diversion of managements attention from
ongoing business concerns and successfully returning managers to
regular business responsibilities from their integration
planning activities. |
Many of the expenses that will be incurred, by their nature, are
impracticable to estimate at the present time. These expenses
could, particularly in the near term, exceed the savings that
the combined company expects to achieve from the elimination of
duplicative expenses, the realization of economies of scale and
cost savings related to the integration of the businesses
following the consummation of the merger.
|
|
|
The market price of Brooks common stock may decline as a
result of the merger. |
The market price of Brooks common stock may decline as a result
of the merger for a number of reasons, including if:
|
|
|
|
|
the integration of Brooks and Helix is not completed in a timely
and efficient manner; |
|
|
|
the combined company does not achieve the expected benefits of
the merger as rapidly or to the extent anticipated by financial
or industry analysts or by investors; |
|
|
|
the effect of the merger on the combined companys
financial results is not consistent with the expectations of
financial or industry analysts or of investors; or |
|
|
|
significant stockholders of Brooks and Helix decide to dispose
of their shares of Brooks common stock following completion of
the merger. |
|
|
|
If the merger is consummated but the proposal to amend
Brooks certificate of incorporation is not approved, the
ability of Brooks to issue additional shares of Brooks common
stock would be limited. |
Brooks currently has sufficient authorized shares of common
stock to consummate the merger, and the Brooks merger proposal
is not conditioned on the proposal to amend Brooks
certificate of incorporation to increase the authorized number
of Brooks common stock from 100,000,000 shares to
125,000,000 shares. However, based on the number of shares
of Helix common stock and options to purchase Helix common stock
outstanding as of September 21, 2005, Brooks would be
obligated to issue approximately 29,016,209 shares of
common stock and reserve an additional 779,914 shares of
Brooks common stock for issuance upon the exercise of Helix
options assumed in the merger. Therefore, if the merger is
consummated but the proposal to amend Brooks certificate
of incorporation is not approved, Brooks would only have
approximately 12,739,139 authorized shares of common stock that
are not already issued or reserved for issuance pursuant to
Brooks equity incentive plans, warrants and convertible
securities as of September 21, 2005, which could limit
Brooks flexibility to use capital stock for business and
financial purposes in the future.
|
|
|
Helix and Brooks stockholders will have a reduced
ownership and voting interest after the merger and will exercise
less influence over management. |
After the completion of the merger, current Brooks stockholders
will own a significantly smaller percentage of the combined
company than they currently own of Brooks, and current Helix
stockholders will own a significantly smaller percentage of the
combined company than they currently own of Helix. Following
completion of the merger, and based upon the outstanding Brooks
common stock and Helix common stock, and options to purchase
Brooks common stock and Helix common stock, as of
September 21, 2005, Brooks stockholders will own
approximately 61% of the combined company, and former Helix
stockholders will own approximately 39% of the combined company.
Consequently, Brooks and Helix stockholders will exercise less
influence over the management and policies of the combined
22
companies than they currently exercise over the management and
policies of Brooks and Helix, respectively.
|
|
|
Brooks may pursue additional acquisitions in the
future. |
Brooks may, as part of its business strategy, pursue additional
acquisitions of companies or businesses. Any acquisition
strategy is subject to inherent risk, including risks that
Brooks will not be able to identify potential partners,
successfully negotiate economically beneficial terms,
successfully integrate such business, retain its key employees
and achieve the anticipated revenue, cost benefits or synergies.
Additionally, Brooks may issue additional shares in connection
with any future acquisition which could dilute the holdings of
Brooks common stock held by former Helix stockholders.
|
|
|
Brooks does not anticipate paying dividends. |
Helix has historically paid a cash dividend on the outstanding
shares of Helix common stock. Brooks has not historically paid
any cash dividends on its common stock and does not currently
intend to pay any cash dividends in the future. Any future
payments of dividends by Brooks will depend upon its financial
condition, capital requirements and its earnings, as well as
other factors that Brooks board of directors deems
relevant.
|
|
|
Following completion of the merger, the combined company
will continue to face a number of risks related to its business
that are currently faced by Brooks and Helix. |
Brooks and Helix currently face significant risks with respect
to each of their businesses, the occurrence of which would
materially adversely affect their operating results or financial
condition. These matters include risks related to the following:
|
|
|
|
|
the automation, vacuum and semiconductor industries, including
cyclicality, technological change, and competition; |
|
|
|
the business and operations of each of Brooks and Helix,
including research and development, manufacturing, and product
development; |
|
|
|
concentration of customers and suppliers; |
|
|
|
protection of intellectual property; |
|
|
|
foreign business operations and international sales, including
changes in a specific countrys or regions political
or economic conditions, laws and regulations that restrict
repatriation of earnings, difficulty in recruiting trained
personnel, language and cultural differences and changes in
foreign currency exchange rates; and |
|
|
|
legal and regulatory matters. |
In the event the merger is completed, we expect that the
combined company will continue to face these or similar risks in
the operation of the combined business. A more complete
discussion of each of these risks individually (a) with
respect to Brooks, is set forth in Brooks Current Report
on Form 8-K dated August 24, 2005 and Brooks
Quarterly Reports on Form 10-Q for the fiscal quarters
ended December 31, 2004, March 31, 2005 and
June 30, 2005, and (b) with respect to Helix, is set
forth in Helixs Annual Report on Form 10-K for the
fiscal year ended December 31, 2004 and Helixs
Quarterly Reports on Form 10-Q for the fiscal quarters
ended April 1, 2005 and July 1, 2005, all of which are
incorporated herein by reference.
23
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
The SEC encourages companies to disclose forward-looking
information so that investors can better understand a
companys future prospects and make informed investment
decisions. This joint proxy statement/ prospectus, including
information incorporated herein by reference, see the section
entitled WHERE YOU CAN FIND MORE INFORMATION
beginning on page 115, contains forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including statements based on
current projections about operations, industry, financial
condition and liquidity. Words such as anticipate,
estimate, expect, project,
intend, plan, believe and
words and terms of similar substance, when used in connection
with any discussion of future operating or financial
performance, the merger or the businesses of Brooks or Helix,
identify forward-looking statements. In addition, any statements
that refer to expectations, projections or other
characterizations of future events or circumstances, including
any underlying assumptions, are forward-looking statements.
Those statements are not guarantees and are subject to risks,
uncertainties and assumptions that are difficult to predict, and
as a result, actual results could differ materially and
adversely from these forward-looking statements. These risks and
uncertainties include, but are not limited to, in addition to
the risks discussed in the section entitled RISK
FACTORS, the following:
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|
|
|
|
the cyclical nature of the semiconductor industry and the
markets addressed by each companys products and its
customers products; |
|
|
|
fluctuations in quarterly operating results; |
|
|
|
demand for and market acceptance of new and existing products
and services; |
|
|
|
successful development of new products and services; |
|
|
|
the timing of new product and service introductions; |
|
|
|
reliance on a relatively small number of customers and suppliers; |
|
|
|
pricing pressures and other competitive factors; |
|
|
|
changes in product mix; |
|
|
|
product obsolescence; |
|
|
|
the ability to retain and hire key personnel; |
|
|
|
the ability to develop and implement new technologies and to
obtain protection for the related intellectual property; |
|
|
|
the uncertainties of litigation, including intellectual property
litigation in particular; |
|
|
|
costs related to the merger; |
|
|
|
failure to obtain the required approvals of Brooks stockholders
and Helix stockholders; |
|
|
|
risks that the closing of the transaction will be substantially
delayed or that the merger does not close; and |
|
|
|
the risk that Brooks and Helixs businesses will not
be integrated successfully or that expected benefits of the
merger do not materialize. |
You are cautioned not to place undue reliance on the
forward-looking statements contained herein, which either speak
only as of the date of this joint proxy statement/ prospectus
or, if applicable, speak only as of the earlier date indicated
in this joint proxy statement/ prospectus. Brooks and Helix
undertake no obligation to update or revise the forward-looking
statements, whether as a result of new information, future
events or otherwise. The cautionary statements contained in this
section should be read as being applicable to all related
forward-looking statements wherever they appear in this joint
proxy statement/ prospectus and the documents incorporated by
reference into this joint proxy statement/ prospectus.
24
THE BROOKS SPECIAL MEETING
Joint Proxy Statement/ Prospectus
This joint proxy statement/ prospectus is being furnished to you
in connection with the solicitation of proxies by Brooks
board of directors for the special meeting of Brooks
stockholders.
This joint proxy statement/ prospectus is first being mailed to
holders of Brooks common stock on or about September 26,
2005.
Date, Time and Place of the Special Meeting
The special meeting of Brooks stockholders will be held as
follows:
October 26, 2005
9:00 a.m., local time
Brooks Automation, Inc.
15 Elizabeth Drive
Chelmsford, Massachusetts
Purpose of the Special Meeting
The purpose of the Brooks special meeting is:
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|
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|
To approve the issuance of shares of Brooks common stock
pursuant to the Agreement and Plan of Merger, dated as of
July 11, 2005, as amended on August 29, 2005, among
Brooks, Mt. Hood and Helix, a copy of which is attached as
Annex A to this joint proxy statement/ prospectus. This
proposal is referred to in this joint proxy statement/
prospectus as the Brooks merger proposal; |
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|
|
To approve a proposal to amend Brooks certificate of
incorporation if the merger is consummated to increase
Brooks authorized shares of common stock from
100,000,000 shares to 125,000,000 shares; |
|
|
|
To permit Brooks board of directors or its chairman, in
its or his discretion, to adjourn or postpone the special
meeting if necessary for further solicitation of proxies if
there are not sufficient votes at the originally scheduled time
of the special meeting to approve either of the foregoing
proposals; and |
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|
|
To act upon such other matters as may properly come before the
special meeting or any adjournments or postponements thereof. |
The Brooks merger proposal is not conditioned on the proposal to
amend Brooks certificate of incorporation; however, the
proposal to amend Brooks certificate of incorporation is
conditioned on the consummation of the merger.
Stockholder Record Date for the Special Meeting
Brooks board of directors has fixed the close of business
on September 21, 2005 as the record date for determining
which Brooks stockholders are entitled to notice of, and to vote
at, the Brooks special meeting or any adjournments or
postponements of the Brooks special meeting. On the record date,
there were 45,431,784 shares of Brooks common stock
outstanding, held by approximately 745 holders of record.
During the ten-day period before the special meeting, Brooks
will keep a list of stockholders entitled to vote at the special
meeting available for inspection during normal business hours at
its offices in Chelmsford, Massachusetts, for any purpose
germane to the special meeting. The list of stockholders will
also be provided and kept at the location of the special meeting
for the duration of the special meeting and may be inspected by
any stockholder who is present.
25
Quorum; Vote Required for Each Proposal
A majority of the shares of Brooks common stock outstanding on
the record date must be represented either in person or by proxy
to constitute a quorum at the Brooks special meeting. Proxies
marked as abstentions and broker non-votes will be used in
determining the number of shares present at the special meeting.
At the Brooks special meeting, each share of Brooks common stock
is entitled to one vote on all matters properly submitted to
Brooks stockholders.
Proposal Number One: The affirmative vote of a
majority of the votes properly cast by holders of Brooks common
stock is required to approve the Brooks merger proposal. The
Brooks merger proposal is not conditioned on the proposal to
amend Brooks certificate of incorporation.
Proposal Number Two: The affirmative vote of the
holders of a majority of the shares of Brooks common stock
outstanding on the record date is required to approve the
proposal to amend Brooks certificate of incorporation to
increase Brooks authorized shares of common stock from
100,000,000 shares to 125,000,000 shares. The Brooks
merger proposal is not conditioned on the proposal to amend
Brooks certificate of incorporation; however, the proposal
to amend Brooks certificate of incorporation is
conditioned on the consummation of the merger.
Proposal Number Three: The affirmative vote of a
majority of the votes properly cast by holders of Brooks common
stock is required to permit Brooks board of directors or
its chairman, in its or his discretion, to adjourn or postpone
the special meeting if necessary to solicit further proxies.
The directors and executive officers of Brooks beneficially
owned and were entitled to vote, or shared the right to vote,
approximately 4.75% of the outstanding shares of Brooks common
stock on the record date, and each of them has indicated his or
her intention to vote FOR each of the
proposals.
Brooks board of directors unanimously recommends that
Brooks stockholders vote FOR each of the
proposals.
Adjournment or Postponement
If Proposal Number Three is approved at the special
meeting, Brooks may adjourn or postpone the special meeting if
necessary to solicit further proxies. Such adjournment or
postponement may be with respect to (1) both
Proposal Number One and Proposal Number Two,
(2) Proposal Number One only or
(3) Proposal Number Two only, in each case, to solicit
additional proxies for the applicable proposal(s). In addition,
Brooks may adjourn or postpone the special meeting as set forth
in Brooks certificate of incorporation or bylaws or as
otherwise permitted by law.
Proxies
Brooks stockholders may vote by returning the enclosed proxy
card by mail, submitting an electronic proxy over the Internet,
by telephone, or in person at the special meeting. All shares of
Brooks common stock represented by properly executed proxy cards
received before or at the Brooks special meeting and all proxies
properly submitted over the Internet or by telephone will,
unless the proxies are revoked in a timely fashion, be voted in
accordance with the instructions indicated on those proxy cards
or Internet or telephone submissions. If no instructions are
indicated on a properly executed proxy card, the shares will be
voted FOR each of the proposals. You are
urged to indicate how to vote your shares, whether you vote by
proxy card, over the Internet or by telephone.
If a properly executed proxy card is returned or properly
submitted over the Internet or by telephone and the stockholder
has abstained from voting on one or more of the proposals, the
Brooks common stock represented by the proxy will be considered
present at the special meeting for purposes of determining a
quorum, but will not be considered to have been voted on the
abstained proposal or proposals.
If your shares are held in an account at a brokerage firm or
bank, you must instruct them on how to vote your shares. If an
executed proxy card is returned by a broker or bank holding
shares that indicates that the broker or bank does not have
discretionary authority to vote on the proposals, the shares
will be
26
considered present at the special meeting for purposes of
determining the presence of a quorum, but will not be considered
to have been voted on the proposals. Your broker or bank will
vote your shares only if you provide instructions on how to vote
by following the information provided to you by your broker.
Abstentions, failures to vote and broker non-votes at the
special meeting will have no effect on the Brooks merger
proposal or the proposal to grant discretionary authority to
Brooks board of directors or its chairman to adjourn the
special meeting to further solicit proxies and will have the
effect of a vote against the proposal to amend the Brooks
certificate of incorporation to increase Brooks authorized
shares.
You can change your vote at any time before your proxy is voted
at the special meeting. To revoke your proxy, you must either
(1) notify the secretary of Brooks in writing,
(2) submit a new proxy card dated after the date of the
proxy you wish to revoke, (3) submit a later dated proxy
over the Internet or by telephone by following the instructions
on your proxy card or (4) attend the special meeting and
vote your shares in person. Please note that if you vote over
the Internet or by telephone, you may not be able to revoke or
change your vote after a date prior to the date of the special
meeting set forth in the instructions to voting in this manner.
Merely attending the special meeting will not constitute
revocation of your proxy. If your shares are held in street name
by your broker, you will need to contact your broker to revoke
your proxy.
Brooks is not aware of any business to be acted on at the Brooks
special meeting, except as described in this joint proxy
statement/ prospectus. If any other matters are properly
presented at the Brooks special meeting, or any adjournment or
postponement of the special meeting, the persons appointed as
proxies or their substitutes will have discretion to vote or act
on the matter according to their best judgment and applicable
law unless the proxy indicates otherwise.
Solicitation of Proxies
Brooks and Helix will each pay one-half of the expenses incurred
in connection with the printing and mailing of this joint proxy
statement/ prospectus. Brooks will also request banks, brokers
and other intermediaries holding shares of Brooks common stock
beneficially owned by others to send this joint proxy statement/
prospectus to, and obtain proxies from, the beneficial owners
and will, upon request, reimburse the holders for their
reasonable expenses in so doing. Solicitation of proxies by mail
may be supplemented by telephone, telegram and other electronic
means, advertisements and personal solicitation by the
directors, officers or employees of Brooks. No additional
compensation will be paid to directors, officers or employees
for those solicitation efforts.
Brooks has hired D. F. King & Co., Inc. to assist in
obtaining proxies from its stockholders on a timely basis.
Brooks will pay D. F. King & Co., Inc. a fee of $7,000,
plus its reasonable expenses, for these services.
Brooks stockholders should not send in any stock certificates
with their proxy card or at any other time in connection with
the merger.
27
THE HELIX SPECIAL MEETING
Joint Proxy Statement/ Prospectus
This joint proxy statement/ prospectus is being furnished to you
in connection with the solicitation of proxies by Helixs
board of directors for the special meeting of Helix stockholders.
This joint proxy statement/ prospectus is first being mailed to
Helix stockholders on or about September 26, 2005.
Date, Time and Place of the Special Meeting
The special meeting of Helix stockholders will be held as
follows:
October 26, 2005
9:00 a.m., local time
Palmer & Dodge LLP
111 Huntington Avenue
Boston, Massachusetts
Purpose of the Special Meeting
The purpose of the Helix special meeting is:
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To adopt the Agreement and Plan of Merger, dated as of
July 11, 2005, as amended on August 29, 2005, among
Brooks, Mt. Hood and Helix, a copy of which is attached as
Annex A to this joint proxy statement/ prospectus. This
proposal is referred to in this joint proxy statement/
prospectus as the Helix merger proposal; |
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To permit Helixs board of directors or its chairman, in
its or his discretion, to adjourn or postpone the special
meeting if necessary for further solicitation of proxies if
there are not sufficient votes at the originally scheduled time
of the special meeting to approve the Helix merger
proposal; and |
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To act upon such other matters as may properly come before the
special meeting or any adjournments or postponements thereof. |
Stockholder Record Date for the Special Meeting
Helixs board of directors has fixed the close of business
on September 21, 2005 as the record date for determining
which Helix stockholders are entitled to notice of, and to vote
at, the Helix special meeting or any adjournment or postponement
of the Helix special meeting. On the record date, there were
26,140,729 shares of Helix common stock outstanding, held
by approximately 480 holders of record.
During the ten-day period before the special meeting, Helix will
keep a list of stockholders entitled to vote at the special
meeting available for inspection during normal business hours at
its offices in Mansfield, Massachusetts, for any purpose germane
to the special meeting. The list of stockholders will also be
provided and kept at the location of the special meeting for the
duration of the special meeting and may be inspected by any
stockholder who is present.
Quorum; Vote Required for Each Proposal
A majority of the shares of Helix common stock outstanding on
the record date must be represented, either in person or by
proxy, to constitute a quorum at the Helix special meeting.
Proxies marked as abstentions and broker non-votes will be used
in determining the number of shares present at the special
meeting. At the Helix special meeting, each share of Helix
common stock is entitled to one vote on all matters properly
submitted to Helix stockholders.
Proposal Number One: The affirmative vote of the
holders of a majority of the shares of Helix common stock
outstanding on the record date is required to approve the Helix
merger proposal.
28
Proposal Number Two: The affirmative vote of the
holders of a majority of the shares of Helix common stock
present at the Helix special meeting in person or by proxy and
entitled to vote on the proposal is required to permit
Helixs board of directors or its chairman, in its or his
discretion, to adjourn or postpone the special meeting if
necessary to solicit further proxies in favor of the Helix
merger proposal.
The directors and executive officers of Helix beneficially owned
and were entitled to vote, or shared the right to vote,
approximately 1.59% of the outstanding shares of Helix common
stock on the record date, and each of them has indicated his or
her intention to vote FOR each of the
proposals.
Helixs board of directors unanimously recommends that
Helix stockholders vote FOR each of the
proposals.
Adjournment or Postponement
If Proposal Number Two is approved at the special meeting,
Helix may adjourn or postpone the special meeting if necessary
to solicit further proxies for the Helix merger proposal. In
addition, Helix may adjourn or postpone the special meeting as
set forth in Helixs certificate of incorporation or bylaws
or as otherwise permitted by law.
Proxies
Helix stockholders may vote by returning the enclosed proxy card
by mail, submitting an electronic proxy over the Internet, by
telephone, or in person at the special meeting. All shares of
Helix common stock represented by properly executed proxy cards
received before or at the Helix special meeting and all proxies
properly submitted over the Internet or by telephone will,
unless revoked in a timely manner, be voted in accordance with
the instructions indicated on those proxy cards or Internet or
telephone submissions. If no instructions are indicated on a
properly executed proxy, the shares will be voted
FOR each of the proposals. You are urged to
indicate how to vote your shares, whether you vote by proxy
card, over the Internet or by telephone.
If a properly executed proxy card is returned or properly
submitted over the Internet or by telephone and the stockholder
has abstained from voting on one or more of the proposals, the
Helix common stock represented by the proxy will be considered
present at the special meeting for purposes of determining a
quorum and entitled to vote on the abstained proposal or
proposals.
If your shares are held in an account at a brokerage firm or
bank, you must instruct them on how to vote your shares. If an
executed proxy card is returned by a broker or bank holding
shares that indicates that the broker or bank does not have
discretionary authority to vote on the proposals, the shares
will be considered present at the special meeting for purposes
of determining the presence of a quorum, but will not be
considered to be entitled to vote on the proposals. Your broker
or bank will vote your shares only if you provide instructions
on how to vote by following the information provided to you by
your broker.
Failures to vote and broker non-votes for the Helix merger
proposal will have the same effect as a vote against the Helix
merger proposal at the Helix special meeting, but no effect on
the proposal to grant discretionary authority to Helixs
board of directors or its chairman to adjourn the special
meeting to further solicit proxies in favor of the Helix merger
proposal. Abstentions will have the effect of a vote against
both proposals.
You can change your vote at any time before your proxy is voted
at the special meeting. To revoke your proxy, you must either
(1) notify the secretary of Helix in writing,
(2) furnish a new proxy card dated after the date of the
proxy you wish to revoke, (3) submit a later dated proxy
over the Internet or by telephone by following the instructions
on your proxy card or (4) attend the special meeting and
vote your shares in person. Please note that if you vote over
the Internet or by telephone, you may not be able to revoke or
change your vote after a date prior to the date of the special
meeting set forth in the instructions to voting in this manner.
Merely attending the special meeting will not constitute
revocation of your proxy. If your shares are held in street name
by your broker, you will need to contact your broker to revoke
your proxy.
29
Helix is not aware of any business to be acted on at the Helix
special meeting, except as described in this joint proxy
statement/ prospectus. If any other matters are properly
presented at the Helix special meeting, or any adjournment or
postponement of the special meeting, the persons appointed as
proxies or their substitutes will have discretion to vote or act
on the matter according to their best judgment and applicable
law unless the proxy indicates otherwise.
Solicitation of Proxies
Brooks and Helix will each pay one-half of the expenses incurred
in connection with the printing and mailing of this joint proxy
statement/ prospectus. Helix will also request banks, brokers
and other intermediaries holding shares of Helix common stock
beneficially owned by others to send this joint proxy statement/
prospectus to, and obtain proxies from, the beneficial owners
and will, upon request, reimburse the holders for their
reasonable expenses in so doing. Solicitation of proxies by mail
may be supplemented by telephone, telegram and other electronic
means, advertisements and personal solicitation by the
directors, officers or employees of Helix. No additional
compensation will be paid to directors, officers or employees
for those solicitation efforts.
Helix has hired The Altman Group, Inc. to assist in obtaining
proxies from its stockholders on a timely basis. Helix will pay
The Altman Group a fee of $6,000, plus its reasonable expenses,
for these services.
Helix stockholders should not send in any stock certificates
with their proxy card. If you are a Helix stockholder, a
transmittal letter with instructions for the surrender of your
Helix stock certificates will be mailed to you as soon as
practicable after consummation of the merger.
30
PROPOSAL NUMBER ONE: THE MERGER PROPOSALS
Background of the Merger
Each of Brooks and Helix continually evaluates strategic
opportunities to strengthen its business and deliver long-term
value to its stockholders as part of its ongoing evaluation of
the market for semiconductor manufacturing equipment. Brooks and
Helix have been familiar with each others business for
many years. Although the products of the two companies serve
different functions, each company supplies components and
subassemblies to manufacturers of equipment used to manufacture
semiconductor devices. Brooks products are used in
automating the manufacturing of semiconductors and include
robots and other devices utilized in handling silicon wafers.
Helixs products are pumps and related devices used to
create a vacuum or other special atmospheric condition in
chambers in which silicon wafers are acted upon in the
semiconductor manufacturing process. Brooks has purchased pumps
from Helix to be combined with Brooks products in creating a
subassembly to be delivered to a customer. As a result of this
commercial relationship, the geographic proximity of the two
companies and the normal contacts that arise among companies
serving similar industries and customers, representatives of
Brooks and Helix have historically communicated with each other
concerning matters relating to their companies as well as trends
and other developments in the semiconductor and semiconductor
manufacturing supply industries.
As part of Helixs review of strategic opportunities, Helix
has considered, from time to time, possible business
combinations consistent with its long-term strategy of
(1) increasing the size and diversification of its
operations, (2) becoming a more integrated provider of
vacuum subsystem solutions and (3) leveraging Helixs
history of operational excellence.
In 2001, Helix engaged Morgan Stanley & Co.
Incorporated to act as its financial advisor to assist with
evaluating potential business combinations. Since that time,
Helix has periodically held discussions with other companies in
the semiconductor capital equipment industry to assess the
possibility of a mutually beneficial business combination. Helix
has also evaluated smaller transactions, primarily involving
Helix acquiring a company or specific assets or products.
During the fourth quarter of 2004, Helix considered numerous
strategic alternatives that would advance its long-term
strategy. As part of these considerations, Helixs then
chief executive officer had preliminary discussions with
representatives of several companies in the semiconductor
capital equipment industry regarding interest in a potential
business combination. These discussions included conversations
with (1) a chief executive officer, who is also a director of
Helix, of a company in the semiconductor capital equipment
industry, which is referred to in this joint proxy
statement/prospectus as the First Company, and (2) the executive
chairman of the board of directors of another company in the
semiconductor capital equipment industry, which is referred to
in this joint proxy statement/prospectus as the Second Company.
In December 2004, Helix announced the acquisition of IGC
Polycold Systems, Inc., a producer of high-speed water vapor
cryopumping and cryogenic cooling products, for
$49.2 million in cash.
At a meeting held on December 14, 2004, as part of its
regular strategic review, Helixs board of directors
discussed potential strategic transactions, including the
possibility of more acquisitions like the acquisition of IGC
Polycold and the potential for one or more larger business
combinations consistent with Helixs long-term strategy.
The director of Helix who is also the chief executive officer of
the First Company did not participate in these discussions. At
the meeting, representatives of Morgan Stanley discussed with
Helixs board (1) the general state of the
semiconductor capital equipment industry, (2) a review of
selected other companies in the semiconductor capital equipment
industry, (3) the strategic aspects of potential
transactions with each of these companies as compared to
operating as a stand-alone company and (4) the current and
anticipated levels of business combinations within the
semiconductor capital equipment industry. At the conclusion of
the meeting, Helixs board of directors authorized
Helixs management to continue to explore possible
strategic transactions consistent with Helixs long-term
strategy.
31
In December 2004, the First Company expressed interest in
pursuing with Helix a business combination, which that company
characterized as a merger of equals. Helix entered
into a confidentiality agreement with the First Company. Over
the next several months, representatives of Helix, including
members of Helixs senior management and Morgan Stanley,
held discussions with representatives of the First Company,
including members of its senior management and its financial
advisor, to explore the rationale and potential benefits of such
a business combination.
On the morning of January 26, 2005, Helix received an
unsolicited, non-binding, written indication of interest
regarding a possible business combination from the Second
Company. This indication of interest contemplated the issuance
of common stock of the Second Company as consideration in the
transaction, although the Second Company indicated that it might
be willing to offer some cash consideration. The proposed
exchange ratio for the business combination would provide Helix
stockholders with a 20% premium over the ratio implied by the
relative trading prices of Helixs and the Second
Companys common stock for the preceding 30 trading days,
which is referred to in this joint proxy statement/ prospectus
as the exchange ratio premium. At that time, this exchange ratio
premium implied a premium of 20% over Helixs then-current
stock price, which is referred to in this joint proxy statement/
prospectus as a spot premium.
On January 26, 2005, Helixs board of directors held a
regularly scheduled meeting. Among other things, the purpose of
the meeting was to consider further the possibility of a
strategic business combination and to update the board on
discussions since the December meeting. Representatives of
Morgan Stanley and Palmer & Dodge LLP, Helixs
outside legal advisor, participated in the meeting. The director
of Helix who is also the chief executive officer of the First
Company did not participate in the meeting, except as described
below. Representatives of Palmer & Dodge reviewed the
fiduciary duties of Helixs board of directors in
considering a potential strategic transaction. Helixs
board of directors and members of Helixs senior
management, including James Gentilcore, Helixs chief
executive officer, and Helixs then-current chief financial
officer, discussed the strategic rationale for a merger of
equals with the First Company, as compared to a stand-alone
strategy or combining with potential other companies in the
sector, including the Second Company. At the invitation of
Helixs board of directors, the chief executive officer of
the First Company made a brief informal presentation about the
kind of merger of equals transaction he envisioned and its
potential strategic benefits, and afterwards departed the
meeting. At the conclusion of the meeting, Helixs board of
directors authorized Helixs management to continue
discussions with representatives of the First Company regarding
a potential of merger of equals. With respect to the indication
of interest from the Second Company, although the initial
reaction of Helixs board of directors was that the Second
Company was interested only in an acquisition of Helix, rather
than a business combination aligned with Helixs long-term
strategy, Helixs board of directors authorized
Helixs management to engage in discussions with the Second
Company to learn more.
On January 28, 2005, Helixs board of directors
established a special committee of non-executive directors to
consider a potential strategic transaction between Helix and the
First Company or the Second Company. The special committee
included all Helix directors except Mr. Gentilcore and the
Helix director who also is the chief executive officer of the
First Company.
Over the next several months, representatives of Helix and the
Second Company, including members of their respective senior
management teams and their respective financial advisors, held
discussions regarding a potential business combination between
Helix and the Second Company.
In February 2005, the discussions ended with the First Company,
having never progressed beyond an initial exchange of views on
long-term strategy and an initial evaluation by the management
teams of the potential synergies that might be achieved through
a business combination. Subsequently, the First Company publicly
announced a business combination with another company in the
semiconductor capital equipment industry.
On March 2, 2005, Helix and the Second Company entered into
a confidentiality agreement.
On March 4, 2005, representatives of senior management of
Helix, including Mr. Gentilcore, Robert E. Anastasi,
Helixs executive vice president, and William Montone,
Helixs vice president, human resources, and
representatives of senior management of the Second Company met
to discuss the possible
32
strategic fit between the companies, the potential synergies
that could be achieved in a business combination and the form
such a transaction might take.
On March 11, 2005, the Second Company submitted to Helix a
non-binding outline of proposed terms for a business
combination, consisting of the following:
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A stock-for-stock transaction in which Helix stockholders would
receive shares of the Second Company based on a 20% exchange
ratio premium, subject to adjustment for any cash consideration
agreed to by the parties. The outline did not include any
specific ranges of possible cash consideration. Subsequent
conversations indicated that the likely maximum cash
consideration would not exceed $125.0 million in the
aggregate, though the Second Company continued to consider
whether it would include any cash. The outline provided that the
transaction would be structured as a tax-free reorganization. |
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A board of directors consisting of the existing seven Second
Company directors, plus two directors to be nominated by Helix. |
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The outline indicated that certain Helix employees would have a
continued role in the combined entity; however, the outline did
not contemplate the inclusion of any Helix officers in the
senior management structure of the combined entity. |
During March 2005, representatives of Helixs senior
management, including Mr. Gentilcore, and Morgan Stanley
and representatives of the Second Companys senior
management and its financial advisor negotiated the terms of the
outline.
During conversations on March 23 and 24, 2005,
Mr. Lepofsky and the Second Companys executive
chairman of the board discussed the consideration for a possible
business combination, including exchange ratios that would
result in Helix stockholders owning approximately 37% to 38% of
the combined company, which represented an approximately 25%
exchange ratio premium.
On March 26, 2005, Mr. Lepofsky made a telephone call
to Robert J. Therrien, chairman of Brooks board of
directors, to discuss Brooks strategic direction and view
of the industry, including the ongoing consolidation among
semiconductor equipment companies and whether market conditions
warranted consideration of a business combination of Brooks and
Helix. As long-time industry colleagues, Messrs. Lepofsky
and Therrien have held similar discussions in the past. In
response, Mr. Therrien stated that he thought there was a
strong strategic rationale for a business combination between
Helix and Brooks in which stockholders of both companies would
benefit from the combined strengths of the companies and hold
stock of an enterprise of significantly larger scale. Due in
part to these potential advantages, Mr. Therrien agreed to
recommend to Brooks board of directors that further
discussions take place, and Mr. Lepofsky indicated that he
would speak to Helixs board to ascertain the potential
interest level for such discussions.
During a telephonic meeting on April 4, 2005, Helixs
special committee reviewed with Mr. Gentilcore and with
representatives of Morgan Stanley and Palmer & Dodge,
the status of Helixs discussions with the Second Company
and the conversation between Messrs. Lepofsky and Therrien.
At this meeting representatives of Palmer & Dodge
reviewed the directors fiduciary duties in considering a
potential strategic transaction. Helixs special committee
discussed the rationale, potential benefits and structure of a
transaction between Helix and the Second Company. Helixs
special committee also discussed whether the Second
Companys primary intention was to acquire Helix for the
purpose of adding Helixs products to the Second
Companys numerous lines of products, rather than to merge
with Helix for the purpose of creating a combined business that
was aligned with Helixs long-term strategy. Helixs
special committee noted that a transaction with the Second
Company would enable Helix stockholders to participate in an
enterprise of greater size and diversification; however, it
would in effect abandon Helixs integrated vacuum subsystem
strategy and would be unlikely to leverage Helixs
operational excellence, each of which Helixs board
regarded as important for Helixs long-term strategy and
stockholder value. While the proposal offered some short-term
economic benefits to stockholders, including the possibility for
some cash consideration, Helixs special committee, after
discussion with Helixs management and Morgan
33
Stanley, determined that these benefits were outweighed by the
potential for creating long-term stockholder value by continuing
to pursue Helixs long-term strategy. Helixs special
committee concluded that Helix should discontinue discussions
with the Second Company and directed Morgan Stanley to notify
the Second Companys financial advisor of that
determination. Helixs special committee also addressed the
potential business combination with Brooks. It concluded that
such a business combination could further Helixs long-term
strategy and authorized Helixs management to explore this
possibility further.
Also on April 4, 2005, Brooks board of directors
received Mr. Therriens report of his meeting with
Mr. Lepofsky and authorized further discussions of a
possible strategic business combination with Helix. Joseph R.
Martin, the chairman of the nominating and governance committee
of Brooks board of directors, agreed to work with
Mr. Therrien and Brooks management to remain abreast
of the transaction on behalf of Brooks board of directors
and to provide support if required.
On April 7, 2005, Mr. Therrien met with
representatives of Needham & Company, LLC to discuss a
potential business combination between Brooks and Helix.
On the evening of April 13, 2005, Messrs. Therrien and
Martin, as well as Edward C. Grady, Brooks president and
chief executive officer, met with Messrs. Gentilcore and
Lepofsky. At this meeting, the participants discussed the
challenges facing the semiconductor capital equipment industry,
the potential strategic benefits of a business combination
between Brooks and Helix and the importance of compatible
corporate cultures and a shared business approach.
Messrs. Grady and Gentilcore discussed the complementary
operating strategies of the companies in terms of pursuing
integrated content offerings. Mr. Lepofsky stated that a
business combination in furtherance of Helixs long-term
strategy would need to include significant participation by
Helix in the corporate governance, operational leadership and
pro forma stockholder ownership of the combined company.
On April 15, 2005, Brooks board of directors again
met to consider a potential business combination of Brooks and
Helix and authorized Mr. Grady, Robert W.
Woodbury, Jr., Brooks chief financial officer, and
Thomas S. Grilk, Esq., Brooks general counsel, to
continue to pursue the possibility of a business combination
with Helix. Brooks board of directors also authorized
Brooks management to retain investment bankers to provide
advice in connection with a potential business combination with
Helix. Brooks subsequently engaged Credit Suisse First Boston
LLC to act as Brooks financial advisor in pursuing and
seeking to conclude a business combination with Helix and
engaged Needham & Company, LLC to review the financial
terms of the proposed business combination and provide
Brooks board of directors with Needham &
Companys opinion concerning the fairness to Brooks from a
financial point of view of the exchange ratio pursuant to any
merger agreement with Helix.
On April 22, 2005, Brooks and Helix executed a
confidentiality agreement concerning commercially sensitive
information exchanged between them in the course of their
discussions. That agreement also contained provisions to the
effect that neither party would undertake a hostile acquisition
of the other or seek to hire key employees of the other.
On April 23, 2005, a meeting occurred between members of
senior management of Brooks and Helix, together with their
respective advisors. Members of Brooks senior management
participating in the meeting included Messrs. Grady,
Woodbury and Grilk, and members of Helixs senior
management participating in the meeting included
Messrs. Gentilcore and Anastasi, as well as Paul Kawa,
Helixs interim chief financial officer.
Messrs. Lepofsky and Therrien were also in attendance for
portions of the meeting. The participants discussed further the
respective businesses of Brooks and Helix, including business
strategies, growth drivers, key members of management, product
and service offerings, technologies, infrastructure, corporate
cultures, operational successes and challenges and the potential
strategic benefits of a business combination, including
potential new market opportunities and cost synergies. At the
conclusion of the meeting, the representatives of Brooks and
Helix agreed to investigate further potential cost synergies
that could be achieved from a business combination and to
conduct a subsequent meeting for this purpose.
During a meeting in the evening of April 26, 2005, the
members of Helixs special committee decided to discontinue
the use of the special committee based on a determination that
the discussions with the
34
First Company had terminated in February 2005 and were unlikely
to be revived and consideration of a potential transaction with
the Second Company was complete as of the committees
April 4, 2005 meeting.
At a meeting held on April 27, 2005, Helixs board of
directors reviewed with representatives of Helixs senior
management, including Messrs. Gentilcore, Kawa, Anastasi
and Montone, the status of discussions with Brooks and discussed
the strategic benefits of a business combination with Brooks.
On April 28, 2005, representatives of Brooks senior
management, including Messrs. Grady, Woodbury and Grilk,
and representatives of Helixs senior management, including
Messrs. Gentilcore, Kawa, Anastasi and Montone, met to
discuss their views on potential cost synergies that could be
achieved from a business combination. Representatives of Credit
Suisse First Boston and Morgan Stanley also participated in this
meeting.
On the morning of April 29, 2005, Helix announced the
earnings results for its first fiscal quarter. That evening,
Helixs stock closed down approximately 11% from the
previous days closing price.
On May 3, 2005, Brooks board of directors again met
to discuss a possible transaction with Helix and formally
authorized Mr. Martin to engage on behalf of Brooks
board of directors with Brooks management and Helixs
management to determine whether a strategic combination with
Helix would be advisable for Brooks.
Also on May 3, 2005, representatives of the Second
Companys financial advisor contacted Morgan Stanley to
inquire whether Helix might be interested in resuming
discussions with the Second Company regarding a business
combination. Helix directed Morgan Stanley to inform the Second
Companys financial advisor that Helixs board of
directors would consider any proposal consistent with its
long-term strategy.
On the evening of May 9, 2005, Mr. Lepofsky met with
Mr. Therrien and with Roger D. Emerick, Amin J. Khoury and
A. Clinton Allen, each a member of Brooks board of
directors, to discuss the strategic aspects and structure of a
business combination between Brooks and Helix. Mr. Lepofsky
described the importance of structuring the transaction in a
manner that would further Helixs long-term strategy. In
particular, Mr. Lepofsky conveyed the view of Helixs
board of directors that preserving Helixs corporate
culture, financial discipline and history of operational
excellence in the combined company was important for delivering
long-term value to Helix stockholders. Mr. Lepofsky also
conveyed his view that the exchange ratio for a business
combination with Brooks should result in Helix stockholders
owning in excess of 40% of the combined entity.
At a regularly scheduled meeting on May 10, 2005,
Brooks board of directors formed a special committee
consisting of Messrs. Martin and Allen. Brooks board
of directors delegated to the special committee the authority to
pursue and negotiate the basic terms of a business combination
with Helix, as well as a definitive agreement, subject to the
review and approval of the full Brooks board of directors and,
if required, the approval of Brooks stockholders.
On May 18, 2005, a representative of Ropes & Gray,
which Brooks had retained as its outside legal advisor with
respect to the potential business combination with Helix, and
the members of Brooks special committee met to discuss the
potential business combination with Helix, including the process
for meetings with Helix and the role of Brooks special
committee in that process.
On May 23, 2005, a member of Brooks special committee
met with Mr. Lepofsky to discuss the structure of a
possible transaction and the consideration to be exchanged in a
business combination between Brooks and Helix. Throughout the
remainder of May 2005 and the first half of June 2005, members
of Brooks special committee held various telephone
conferences with Mr. Lepofsky to discuss, among other
matters relating to the proposed business combination, the
relative valuations of Brooks and Helix, the exchange ratio for
the business combination and the composition of the board of
directors and senior management of the combined company
following the potential transaction.
At a regularly scheduled meeting held on May 25, 2005,
Helixs board of directors reviewed with representatives of
Helixs senior management, Morgan Stanley and
Palmer & Dodge, a revised proposal for
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a business combination between Helix and the Second Company that
had been orally communicated by representatives of the Second
Companys financial advisor to representatives of Morgan
Stanley on May 16, 2005. The revised proposal set forth
stock consideration with an exchange ratio based on a 30% spot
premium to Helixs prior day closing stock price, subject
to adjustment for up to $125.0 million in cash
consideration. Based on the closing price of Helixs common
stock on May 24, 2005 and the 30% spot premium, the revised
proposal represented implied consideration of $16.30 per
share of Helix common stock. Also the Second Company agreed to
permit Helix to nominate an additional director to the board
(for a total of three out of ten directors), but such third
director from Helix would have a term of only approximately
twelve months and upon the vacancy of that board seat, a
replacement director would not be nominated.
Helixs board of directors concluded that the revised
proposal was not significantly different from the previous
proposal discussed with the Second Company during late March
2005. This conclusion was based in part on the assessment of
Helixs board of directors that the trading price of Helix
common stock was deflated following the announcement of
Helixs earnings results for the first fiscal quarter of
2005. In fact, the exchange ratio and implied consideration
based on the revised proposal were less than the exchange ratio
and implied consideration based on the March 2005 proposal
because of the relative change in the trading prices of the
common stock of the Second Company and Helix following
Helixs earnings announcement. Helixs board of
directors continued to believe that a transaction with the
Second Company would not further Helixs long-term strategy
or provide long-term value to Helix stockholders as compared
with other initiatives, both internal and external. Helixs
board of directors directed Morgan Stanley to notify the Second
Companys financial advisor that Helix was not interested
in continuing discussions regarding a business combination
between Helix and the Second Company at that time.
Also at this meeting, Helixs board of directors discussed
the status of the discussions with Brooks. Mr. Gentilcore
and other representatives of Helixs senior management,
including Messrs. Kawa, Montone and Anastasi, continued to
express their view that a business combination with Brooks would
further Helixs long-term strategy. Helixs board of
directors agreed that Mr. Lepofsky and Drs. Schorr and
Hayes should act as an informal committee of Helixs board
of directors to facilitate the process with Brooks.
On May 28, 2005, Brooks special committee
participated in a conference call with representatives of Credit
Suisse First Boston during which Brooks special committee
considered the financial implications of a potential business
combination with Helix and the consideration likely to be
required for Brooks to complete a business combination with
Helix.
On June 1, 2005, Brooks special committee and
Mr. Lepofsky and Drs. Schorr and Hayes met to discuss the
potential business combination, including the corporate
governance of the combined company, the potential roles of the
current executive officers of Brooks and Helix in the operations
of the combined company and a range of implied pro forma stock
ownership levels in the combined company. At the conclusion of
the meeting, the participants agreed to continue discussions
regarding a potential business combination based on a pro forma
ownership in the combined company for Helix stockholders in the
range of 40%, subject to due diligence. The discussions
regarding the composition of the board of directors of the
combined company involved Helix requesting the right to
designate at least four directors and Brooks acknowledging that
Helixs representation on the board of directors would be
proportionate to Helixs stock ownership in the combined
entity.
On June 8 and 9, 2005, representatives of Brooks
senior management, including Messrs. Grady, Woodbury and
Grilk, and Credit Suisse First Boston met with representatives
of Helixs senior management, including
Messrs. Gentilcore, Kawa, Montone and Anastasi, Morgan
Stanley and Palmer & Dodge to discuss further
(1) the potential integrated product and services offerings
of a combined entity (2) each companys technology,
business practices and personnel and (3) the potential new
market opportunities, cost synergies and operational and
financial benefits resulting from a business combination. In
addition, at these meetings representatives of the financial
advisors of Helix and Brooks assisted the companies in their
financial due diligence investigations of the other company.
36
During a telephonic meeting on June 10, 2005, Helixs
board of directors received an update of the potential business
combination with Brooks, including a summary of the meeting that
Mr. Lepofsky and Drs. Schorr and Hayes held with
Brooks special committee on June 1, 2005 and the
meetings that representatives of Helixs senior management
held with representatives of Brooks senior management on
June 8 and 9, 2005. In addition, representatives of Morgan
Stanley reported that their negotiations with Brooks
financial advisor were focusing on a range of pro forma
stockholder ownership in which Helix stockholders would own
between 38% to 40% of the combined entity.
On June 13, 2005, members of Brooks special committee
participated in a conference call with representatives of Credit
Suisse First Boston in which Brooks special committee
considered the financial implications of a potential business
combination involving Brooks and Helix.
On June 15, 2005, Messrs. Grady and Gentilcore made a
joint presentation to Brooks special committee and
Mr. Lepofsky and Drs. Schorr and Hayes regarding the
integrated vacuum strategy to be pursued by the combined entity,
the proposed management structure and the cost synergies that
had been identified to date. The presentations concluded with
each of Messrs. Gentilcore and Grady recommending a
business combination between Brooks and Helix. After the chief
executive officers departed the meeting, the Brooks and Helix
directors discussed the implied pro forma stock ownership, the
proposed management structure, and the composition of the board
of directors. The Brooks and Helix directors concluded that
Brooks and Helix should continue to evaluate a business
combination on the basis of:
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consideration consisting of Brooks common stock based on a fixed
exchange ratio that at the time of entering into a definitive
agreement would imply a pro forma stock ownership in which Helix
stockholders would own 39% of the combined company on a fully
diluted basis; |
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a management structure, as jointly recommended by the chief
executive officers, consisting of Mr. Grady as the chief
executive officer, Mr. Gentilcore as president of the
hardware business and four other senior Helix operational
executives having significant responsibilities in the combined
entity; and |
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a board of directors consisting of the existing seven Brooks
directors, plus either three or four directors to be nominated
by Helix. |
Following this meeting, Mr. Allen called Mr. Lepofsky
to suggest that a resolution of the board composition might be
that Helix may nominate three directors, plus a non-voting
director emeritus.
From June 16, 2005 through June 22, 2005, Brooks
special committee, representatives of Brooks management
and representatives of Ropes & Gray prepared a draft
merger agreement for the proposed transaction and a draft of an
exclusivity agreement pursuant to which Brooks and Helix would
agree to negotiate a potential business combination only with
each other until July 11, 2005.
At a telephonic meeting held on June 18, 2005, Helixs
board of directors reviewed the current status of the potential
business combination with Brooks, together with its financial
and legal advisors. At the outset, representatives of Palmer
& Dodge reviewed the fiduciary duties of Helixs board
of directors in considering a potential strategic transaction.
Drs. Schorr and Hayes gave a report regarding the June 15
joint-CEO presentation and recommendations and the terms
discussed by Mr. Lepofsky and Drs. Schorr and Hayes with
Brooks special committee. Helixs board of directors
agreed that Helixs management should commence on the basis
of those terms to negotiate definitive terms of a merger
agreement, subject to the approval of Helixs board of
directors, and concurrently intensify its due diligence review
of Brooks. Helixs board of directors authorized
Helixs management to enter into a customary exclusivity
agreement to facilitate the foregoing.
On June 20, 2005, Ropes & Gray distributed a draft
of the proposed exclusivity agreement to Palmer &
Dodge, and on June 22, 2005, Ropes & Gray
distributed a first draft of the proposed merger agreement to
Helix, Morgan Stanley and Palmer & Dodge.
Beginning the week of June 20, 2005, two data
rooms containing business, financial and legal due
diligence documents from both Brooks and Helix were established
at Ropes & Gray. Throughout the week
37
of June 20, 2005, representatives of Brooks, Helix, Morgan
Stanley, Ropes & Gray and Palmer & Dodge, as
well as financial representatives, which Brooks had retained to
assist with financial due diligence of Helix, and financial
representatives retained by Helix to assist with financial due
diligence of Brooks, visited the data rooms at various times to
review the documents contained in the data rooms. In addition,
throughout the weeks of June 20, 2005 and June 27,
2005, representatives of senior management of Brooks and Helix
and representatives of Credit Suisse First Boston;
Needham & Company; Morgan Stanley; Ropes &
Gray; Palmer & Dodge; and Hamilton, Brook,
Smith & Reynolds, P.C., outside intellectual
property counsel to Helix, held a series of telephonic meetings
to discuss and answer questions about each companys
respective businesses. Throughout the period during which
discussions between Brooks and Helix were ongoing, each of
Brooks and Helix and their respective financial and legal
advisors also conducted business, financial and legal due
diligence on the other party.
On June 22, 2005, a meeting was held among representatives
of Brooks and Helixs management teams.
Representatives from Brooks management included
Messrs. Grady, Woodbury and Grilk, as well as Michael
Pippins, Brooks senior vice president of marketing and
sales program management, William Fosnight, Brooks vice
president of engineering, Michael Romani, Brooks vice
president of service, William Keller, Brooks vice
president of operations, and Jack Marchant, Brooks vice
president of human resources. Representatives of Helixs
management included Messrs. Gentilcore, Kawa, Montone and
Anastasi, as well as David Jarzynka, vice president, sales and
marketing, Jeff Plante, vice president, global support services,
and Charles G. Chappell, director, contracts and risk
management. Representatives of Credit Suisse First Boston,
Needham & Company, Morgan Stanley, Palmer &
Dodge and PricewaterhouseCoopers also attended this meeting. The
purpose of the meeting was to make introductions among a wider
group of management representatives, give reciprocal
presentations about company operations and financial performance
to each other and the respective financial advisors, and
establish a timeline and process for proceeding.
On June 23, 2005, Brooks board of directors
authorized continued negotiations with Helix on the basis of the
relative valuations of Brooks and Helix and the proposed
composition of the board of directors and senior management of
the combined company that had been discussed at the
June 15, 2005 meeting between Brooks special
committee, Mr. Lepofsky and Drs. Schorr and Hayes and
also authorized the execution of the exclusivity agreement.
Also on June 23, 2005, Brooks and Helix executed the
exclusivity agreement.
On June 27, 2005, Palmer & Dodge distributed a
proposed revised draft of the merger agreement to
Ropes & Gray and Brooks that contained Helixs
comments on the draft proposed by Ropes & Gray.
Throughout the weeks of June 27, 2005 and July 4,
2005, representatives of Brooks senior management and
Brooks financial and legal advisors and representatives of
Helixs senior management and Helixs financial and
legal advisors held a series of telephonic discussions regarding
the issues raised by the exchanged drafts of the merger
agreement and exchanged additional revised drafts.
On July 6, 2005, the parties calculated that, based on a
fully diluted pro forma stock ownership for Helix stockholders
of 39% in the combined company, the exchange ratio pursuant to
the merger agreement would be 1.11 shares of Brooks common
stock for each share of Helix common stock. Based on the closing
price of Helixs common stock on July 8, 2005, the
last trading day prior to the public announcement of the merger,
the 1.11x exchange ratio represented a 25% spot premium to
Helixs stock price and an implied consideration of
$17.30 per share of Helix common stock.
On the morning of July 8, 2005, Brooks board of
directors convened a meeting at which the approval of the merger
would be considered. All members of Brooks board of
directors, Messrs. Grady, Woodbury and Grilk, and
representatives of Credit Suisse First Boston,
Needham & Company and Ropes & Gray
participated in the meeting. Representatives of Credit Suisse
First Boston and Ropes & Gray discussed the terms of
the merger agreement and the negotiations with Helix over the
previous weeks. Representatives of Ropes & Gray also
discussed the fiduciary duties of Brooks board of
directors and the due diligence work that remained to be
completed. Members of Brooks special committee reviewed
the status of the proposed transaction and the process to date,
and recommended that Brooks board of directors approve the
merger
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agreement and the merger, subject to satisfactory resolution of
the due diligence investigation. Representatives of Brooks
management discussed the findings of their due diligence
investigation, the challenges they expected to face integrating
different corporate cultures and employee bases and their
support for the proposed transaction. Representatives of
Needham & Company presented their financial analyses to
Brooks board of directors. Brooks board of directors
asked questions of Needham & Company regarding the
analyses and discussed the analyses. Needham & Company
then delivered their oral opinion, which was subsequently
updated and delivered in writing, to Brooks board of
directors that, as of July 8, 2005 and based upon and
subject to the assumptions and other matters described in the
written opinion, the exchange ratio was fair to Brooks from a
financial point of view.
Brooks board of directors discussed the merger agreement,
the merger and the remaining due diligence investigation at
length, asked various questions of Brooks management, Credit
Suisse First Boston, Needham & Company and
Ropes & Gray and unanimously resolved, subject in each
case to resolution of the due diligence investigation to the
satisfaction of Brooks board of directors, that the merger
agreement and the transactions contemplated thereby were
advisable, fair to and in the best interests of Brooks
stockholders, to approve the merger agreement and the
transactions contemplated thereby, to authorize the execution
and delivery of the merger agreement and the execution and
delivery of related documents, and to recommend to Brooks
stockholders that they vote FOR approval of
the Brooks merger proposal. Brooks board of directors also
approved several other matters ancillary to the merger and the
merger agreement, also subject to satisfactory conclusion of the
remaining due diligence investigation, including the proposed
amendment to Brooks certificate of incorporation to
increase the number of authorized shares of Brooks common stock
to 125,000,000 shares from 100,000,000 shares if the
merger is consummated, an amendment to Brooks rights plan
and the calling of a special meeting of Brooks stockholders at
which the issuance of the shares of Brooks common stock in the
merger and the proposed amendment to Brooks certificate of
incorporation would be considered.
On the afternoon of July 8, 2005, following the meeting of
Brooks board of directors, Brooks special committee
and representatives of Ropes & Gray participated in a
conference call with Mr. Lepofsky, representatives of
Palmer & Dodge and a representative of Hamilton, Brook,
Smith & Reynolds to discuss the remaining Brooks due
diligence investigation and the process for resolving open
matters.
Throughout the remainder of July 8, 2005 and July 9,
2005, representatives of Ropes & Gray and Hamilton,
Brook, Smith & Reynolds worked to complete the Brooks
due diligence investigation. On the afternoon of July 9,
2005, Ropes & Gray concluded this investigation and
reported its findings to Brooks management.
On July 9, 2005, Helixs board of directors held a
dinner meeting with representatives of Helixs senior
management, including Messrs. Gentilcore, Anastasi,
Montone, Kawa and Plante, to discuss the proposed merger prior
to a meeting of Helixs board of directors the next day.
On the morning of July 10, 2005, Brooks board of
directors convened another meeting to discuss the results of the
due diligence investigation with representatives of Brooks
senior management and Ropes & Gray. Brooks senior
management and representatives of Ropes & Gray discussed the
due diligence investigation and the fiduciary duties of
Brooks board of directors. Brooks board of directors
asked questions of Brooks senior management and
representatives of Ropes & Gray regarding the due
diligence investigation and their conclusions. Brooks
board of directors then discussed the report and conclusions of
Brooks senior management and Ropes & Gray, and
following such discussion, Brooks board of directors
unanimously resolved that the remaining due diligence matters
had been resolved to its satisfaction and reaffirmed its
approval of the merger agreement and the transactions
contemplated thereby. Also on July 10, 2005,
Needham & Company reaffirmed its opinion, based on the
updated version of the merger agreement, and delivered its
written opinion to Brooks board of directors that, as of
July 10, 2005 and based upon and subject to the assumptions
and other matters described in the opinion, the exchange ratio
was fair to Brooks from a financial point of view.
At a meeting held on July 10, 2005, Helixs board of
directors considered the proposed business combination with
Brooks. Representatives of Helixs senior management,
including Messrs. Gentilcore, Anastasi, Montone, Kawa and
Chappell, Morgan Stanley and Palmer & Dodge, reviewed
with Helixs
39
board the terms of the proposed merger agreement, the
negotiations with Brooks over the previous weeks and the results
of the due diligence investigation that had been performed. In
addition, representatives of Palmer & Dodge reviewed
the fiduciary duties of Helixs board of directors to the
Helix stockholders in connection with the proposed business
combination. Also, representatives of Morgan Stanley reviewed
its financial analysis of the exchange ratio pursuant to the
merger agreement. At this time, Morgan Stanley rendered to
Helixs board an oral opinion, subsequently confirmed in
writing, that as of July 10, 2005, based upon and subject
to the various considerations set forth in the opinion, the
exchange ratio pursuant to the merger agreement was fair from a
financial point of view to the holders of shares of Helix common
stock.
Helixs board of directors discussed the terms of the
proposed merger agreement and the results of the due diligence
investigation at length and asked various questions of the
representatives of Morgan Stanley and Palmer & Dodge.
Helixs board of directors determined that the proposed
business combination with Brooks fulfilled Helixs
long-term strategy of (1) increasing the size and
diversification of its operations, (2) becoming a more
integrated provider of vacuum subsystem solutions and
(3) leveraging Helixs history of operational
excellence. At the conclusion of the meeting, Helixs board
of directors unanimously determined that the merger is
advisable, fair to, and in the best interests of, Helix and its
stockholders, approved the merger agreement and the merger and
recommended that Helix stockholders vote FOR
approval of the Helix merger proposal.
During the evening of July 10, 2005, following the meeting
of Helixs board of directors, representatives of Brooks,
Helix, Ropes & Gray and Palmer & Dodge
clarified several issues relating to the proposed transaction
and finalized the terms of the merger agreement.
On the morning of July 11, 2005, Brooks and Helix executed
the merger agreement and publicly announced the merger.
On August 29, 2005, Brooks and Helix entered into an
amendment to the merger agreement to clarify the applicability
of expense reimbursement in all situations in which termination
fees are payable.
Recommendation of Brooks Board of Directors;
Brooks Reasons for the Merger
Brooks board of directors believes that the merger is
advisable for, fair to, and in the best interests of, Brooks and
its stockholders. Accordingly, Brooks board of directors
has unanimously approved the merger agreement and the merger and
unanimously recommends that Brooks stockholders vote
FOR approval of the Brooks merger proposal.
Brooks board of directors, in reaching its decision to
approve the Brooks merger proposal, consulted with Brooks
management team, as well as with Brooks financial and
legal advisors, reviewed a significant amount of information and
considered a variety of factors, including the following:
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the enhanced strategic and market position of the combined
company beyond that achievable by Brooks alone; |
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Brooks board of directors consideration of possible
business combinations and other strategic alternatives; |
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information concerning the business, operations, financial
condition, earnings and prospects of Brooks as a separate entity
and on a combined basis with Helix, including their revenues,
their complementary businesses and the potential for revenue
enhancement and cost savings; |
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the increased volume, geographical expansion and diversity of
operations, product lines, served markets and customers that
could be achieved by combining Helix and Brooks; |
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the opportunity for the combined company to combine
complementary technologies to produce a more extensive set of
offerings for their customers; |
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the opportunity for Brooks stockholders to remain stockholders
in a company that would be substantially larger as a result of
the merger with a more diversified product line, a broader |
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customer base and enhanced technology capabilities, and to
benefit from future growth of the combined company; |
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the belief of Brooks board of directors that the
subsystems, components and materials segment of the
semiconductor industry is entering a consolidation phase and
that the combined company, because of its scale and breadth of
operations, would be in a better position to lead this
consolidation; |
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the ability of the combined company to evolve from a
manufacturer and seller of components to a provider of
subsystems and solutions, particularly in the automation and
vacuum areas; |
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the potential impact of the merger on Helix and Brooks customers; |
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the likelihood of the merger being approved by the appropriate
regulatory authorities; |
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the corporate governance arrangements for Brooks following the
merger, which initially will have a board of directors composed
of eleven members, including three designated by Helix and one
non-voting director emeritus designated by Helix, and the
management structure of Brooks following the merger; |
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the board of directors evaluation of the results of the
due diligence investigations by Brooks management and
legal and financial advisors; |
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the structure of the merger and the terms of the merger
agreement, which are reciprocal in nature, including the fact
that the fixed exchange ratio provides relative certainty as to
the number of shares of Brooks common stock to be issued in the
merger; |
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the fact that Brooks stockholders would hold approximately 61%
of the outstanding common stock of the combined company after
the merger; |
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the then current financial market conditions and historical
market prices, volatility and trading information with respect
to Brooks common stock and Helix common stock; |
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the combined companys anticipated future financial
performance, including the fact that the merger is expected to
be accretive to Brooks earnings per share; |
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the limited overlap of the product lines of Brooks and Helix; |
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the opinion of Needham & Company, LLC, Brooks
financial advisor, delivered to Brooks board of directors
that, as of the date of the opinion and based on and subject to
the assumptions and other matters described in the opinion, the
exchange ratio pursuant to the merger agreement was fair, from a
financial point of view, to Brooks; see the section entitled
Opinion of Brooks Financial Advisor beginning
on page 45. A copy of Needham & Companys written
opinion, dated July 10, 2005, is attached as Annex B
to this joint proxy statement/prospectus and is incorporated by
reference herein; |
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the fact that the merger will be tax-free to Brooks stockholders
for U.S. federal income tax purposes; and |
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other potential strategic opportunities. |
Brooks board of directors also identified and considered
certain countervailing factors in its deliberations concerning
the merger and the other transactions contemplated by the merger
agreement, including:
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the possibility that the expected benefits from the merger might
not be fully realized; |
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the possibility that the merger may not be consummated and the
potential adverse consequences if the merger is not completed; |
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the risk that the per share value of the consideration to be
paid in the merger to Helix stockholders could increase
significantly from the value prior to the announcement of the
merger agreement |
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because the exchange ratio will not be adjusted for changes in
the market price of Brooks common stock or Helix common stock; |
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the challenges of integrating the management teams, strategies,
cultures and organizations of the companies; |
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the potential loss of customers and suppliers as a result of
their unwillingness to do business with the combined company; |
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the timing and receipt of government and regulatory approvals
for the merger, and the possibility that delays in obtaining
regulatory approvals of the merger could delay the closing; |
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the fact that stockholder approval of the transaction would be
required from both Helix and Brooks; |
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the substantial expenses to be incurred in connection with the
merger, including costs of integrating the businesses and
transaction expenses arising from the merger; and |
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the risk that key management and other personnel might not
remain employed by the combined company. |
After consideration of these material factors, Brooks
board of directors determined that these risks are of a nature
that are customary in business combinations similar to the
merger, could be mitigated or managed by Brooks or Helix or by
Brooks following the merger, were reasonably acceptable under
the circumstances or, in light of the anticipated benefits, the
risks were unlikely to have a material impact on the merger or
on Brooks following the merger, and that, overall, these risks
were significantly outweighed by the potential benefits of the
merger.
The foregoing discussion is not exhaustive of all factors
considered by Brooks board of directors. Moreover, in view
of the variety of factors considered in connection with its
evaluation of the merger agreement and the merger, Brooks
board of directors considered the factors as a whole and did not
find it practicable to, and did not, quantify or otherwise
assign relative weight to the specific factors considered in
reaching its determination to approve the merger agreement and
the merger. In addition, each member of Brooks board of
directors may have given differing weights to different factors.
In addition, Brooks board of directors did not undertake
to make any specific determination as to whether any particular
factor, or any aspect of any particular factor, was favorable or
unfavorable to its ultimate determination, but rather
Brooks board of directors conducted an overall analysis of
the factors described above, including discussions with
Brooks management, outside consultants, legal counsel and
financial advisors. It should be noted that this explanation of
the reasoning of Brooks board of directors and other
information presented in this section is forward-looking in
nature and, therefore, such information should be read in light
of the factors discussed in the sections entitled RISK
FACTORS beginning on page 18 and CAUTIONARY
STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS on
page 24.
Recommendation of Helixs Board of Directors;
Helixs Reasons for the Merger
Helixs board of directors believes that the merger is
advisable for, fair to, and in the best interests of, Helix and
its stockholders. Accordingly, Helixs board of directors
has unanimously approved the merger agreement and the merger and
unanimously recommends that Helix stockholders vote
FOR approval of the Helix merger proposal.
In reaching its conclusion to approve the merger, Helixs
board of directors consulted with Helixs management team,
as well as Helixs financial advisor and legal counsel,
reviewed a significant amount of information and considered a
variety of factors, including the following:
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Helixs board of directors consideration of possible
business combinations and other strategic alternatives, as
described further under the section captioned
Background of the Merger, including the
process undertaken by Helixs board of directors, with the
assistance of Helixs |
42
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|
management, financial advisor and legal counsel, to explore and
review long-term strategic alternatives in the best interests of
Helix stockholders; |
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|
information concerning the business, operations, financial
condition, earnings and prospects of each of Helix and Brooks as
separate entities and on a combined basis, including their
revenues, their complementary businesses and the potential for
revenue enhancement and cost savings; |
|
|
|
the enhanced strategic and market position of the combined
company and the combined companys anticipated future
financial performance; |
|
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|
the limited overlap of the product lines of Helix and Brooks and
the opportunity for the companies to combine complementary
technologies to produce a more extensive set of offerings for
their customers; |
|
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|
the opportunity for Helix stockholders to participate in a
combined company with increased scale, scope, technology
capabilities and diversity of operations, product lines, served
markets and customers beyond that achievable by Helix alone,
and, as stockholders of the combined company, to benefit from
future growth of the combined company; |
|
|
|
the belief of Helixs board of directors that the
subsystems, components and materials segment of the
semiconductor industry is entering a consolidation phase and
that the combined company, because of its scale and breadth of
operations, would be in a better position to lead this
consolidation; |
|
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|
the ability of the combined company to evolve from a
manufacturer and seller of components to a provider of
subsystems and solutions, particularly in the automation and
vacuum areas; |
|
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|
the opportunity for Helix stockholders to continue to benefit
from Helixs tradition of operational excellence in the
combined entity, through, in part, the retention of key
executive officers of Helix in positions with significant
operational responsibilities in the combined entity and the
addition to Brooks board of directors of three new members
and a director emeritus, each of whom is a current member
of Helixs board of directors; |
|
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|
the then-current financial market conditions and historical
market prices, volatility and trading information with respect
to shares of Helix common stock and Brooks common stock; |
|
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|
the exchange ratio negotiated with Brooks and the implied
premium over recent and historical market prices of Helix common
stock, as well as how this premium compared to price premiums in
recent comparable transactions; |
|
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|
the written opinion and related financial analyses of Morgan
Stanley & Co. Incorporated, Helixs financial
advisor, that, as of the date of the opinion and based on and
subject to the assumptions, factors and limitations set forth in
the opinion, the exchange ratio pursuant to the merger agreement
was fair from a financial point of view to holders of shares of
Helix common stock. See the section entitled
Opinion of Helixs Financial
Advisor beginning on page 53. A copy of Morgan
Stanleys written opinion, dated July 10, 2005, is
attached as Annex C to this joint proxy statement/
prospectus and is incorporated by reference herein; |
|
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|
the structure of the merger and the terms and conditions of the
merger agreement, which are reciprocal in nature, including the
fact that the fixed exchange ratio provides certainty as to the
number of shares of Brooks common stock to be issued in the
merger; |
|
|
|
the provisions in the merger agreement that permit Helixs
board of directors to withdraw its recommendation that Helix
stockholders approve the Helix merger proposal and to respond to
unsolicited third-party proposals, and the belief of
Helixs board of directors, after consultation with its
legal counsel and financial advisors, that these provisions,
notwithstanding the obligation to pay a termination fee and
reimburse expenses of the other party under certain
circumstances, should not preclude the possibility of
considering any competing transactions; |
43
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|
|
the likelihood of the merger being approved by the appropriate
regulatory authorities; |
|
|
|
the fact that the merger will be tax-free to Helix stockholders
for U.S. federal income tax purposes, except to the extent
that Helix stockholders recognize gain on cash received for any
fractional shares; and |
|
|
|
the results of due diligence investigations of Brooks by
Helixs management, independent auditors, financial
advisors and legal counsel. |
Helixs board of directors also identified and considered
certain potentially adverse consequences to Helix, Helix
stockholders and the combined company that could arise from the
merger, including:
|
|
|
|
|
the possibility that the merger may not be consummated and the
potential adverse consequences if the merger is not completed; |
|
|
|
the risk that expected benefits from the merger will not be
achieved; |
|
|
|
the risk that the per share value of the consideration to be
paid to or received by Helix stockholders in the merger could
decrease significantly from the value prior to the announcement
of the merger agreement because the exchange ratio will not be
adjusted for changes in the market price of Brooks common stock
or Helix common stock; |
|
|
|
the possibility that Helixs and Brooks businesses
would be adversely affected, during the period from signing the
merger agreement until integration is substantially implemented,
by competitive pressures, the disruption inherent in combining
two large businesses and the diversion of Helixs
management from other strategic initiatives; |
|
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|
the potential loss of customers and suppliers and termination of
contracts of either company as a result of a customers,
suppliers, or other counterpartys unwillingness to
do business with the combined company; |
|
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|
the challenges and costs of integrating the assets, operations,
management teams, strategies, cultures and organizations of the
companies; |
|
|
|
the risk that key management and other personnel might not
remain employed by the combined company; |
|
|
|
the timing and receipt of governmental and regulatory approvals
for the merger, and the possibility that delays in obtaining
regulatory approvals of the merger could delay the closing; |
|
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|
if, once initiated, the merger is not ultimately consummated,
this fact could have the effect of depressing values offered by
others to Helix in a business combination and could erode
customer and employee confidence in Helix; |
|
|
|
the fact that stockholder approval of the transaction would be
required from both Helix and Brooks; and |
|
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|
the interests of Helixs executive officers and directors
with respect to the merger may be different from, or in addition
to, the interests of Helix common stockholders, as described in
the section entitled Interests of Helixs
Directors and Executive Officers in the Merger beginning
on page 59. |
After consideration of these material factors, Helixs
board of directors determined that these risks are of a nature
that are customary in business combinations similar to the
merger, could be mitigated or managed by Helix or Brooks or by
Brooks following the merger, were reasonably acceptable under
the circumstances, or, in light of the anticipated benefits, the
risks were unlikely to have a material impact on the merger or
on Brooks following the merger, and that, overall, these risks
were significantly outweighed by the potential benefits of the
merger.
The foregoing discussion of the information and factors
considered by Helixs board of directors is not intended to
be exhaustive but includes the material factors considered by
Helixs board of directors. In
44
view of the wide variety of factors considered in connection
with its evaluation of the merger and the complexity of these
matters, Helixs board of directors did not find it useful
to and did not attempt to quantify, rank or otherwise assign
relative weights to these factors. In addition, Helixs
board of directors did not undertake to make any specific
determination as to whether any particular factor, or any aspect
of any particular factor, was favorable or unfavorable to its
ultimate determination, but rather Helixs board of
directors conducted an overall analysis of the factors described
above, including discussions with Helixs management,
outside consultants, legal counsel and financial advisors. In
considering the factors described above, individual members of
Helixs board of directors may have given different weight
to different factors. It should be noted that this explanation
of the reasoning of Helixs board of directors and
information presented in this section is forward-looking in
nature and, therefore should be read in light of the factors
discussed in the sections entitled RISK FACTORS
beginning on page 18 and CAUTIONARY STATEMENT
CONCERNING FORWARD-LOOKING STATEMENTS beginning on
page 24.
Opinion of Brooks Financial Advisor
Brooks retained Needham & Company, LLC to render an
opinion as to the fairness, from a financial point of view, of
the exchange ratio to Brooks. On July 8, 2005,
Needham & Company delivered to Brooks board of
directors its oral opinion, which it subsequently confirmed in
writing as of July 10, 2005, that, as of the respective
opinion dates and based upon and subject to the assumptions and
other matters described in the written opinion, the exchange
ratio pursuant to the merger agreement was fair to Brooks from a
financial point of view. The Needham & Company
opinion is addressed to Brooks board of directors, relates
only to the fairness, from a financial point of view, of the
exchange ratio to Brooks as of the date of the opinion, and does
not constitute a recommendation to any Brooks stockholder as to
how that stockholder should vote or act on any matter relating
to the merger.
The complete text of the July 10, 2005 Needham &
Company opinion, which sets forth the assumptions made, matters
considered, and limitations on and scope of the review
undertaken by Needham & Company, is attached to this
joint proxy statement/ prospectus as Annex B. The summary
of the Needham & Company opinion set forth in this
joint proxy statement/ prospectus is qualified in its entirety
by reference to the Needham & Company opinion.
Brooks stockholders should read the Needham &
Company opinion carefully and in its entirety for a description
of the procedures followed, the factors considered, and the
assumptions made by Needham & Company.
In arriving at its opinion, Needham & Company, among
other things:
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|
|
reviewed the merger agreement; |
|
|
|
reviewed certain publicly available information concerning
Brooks and Helix and certain other relevant financial and
operating data of Brooks and Helix furnished to
Needham & Company by Brooks and Helix; |
|
|
|
reviewed the historical stock prices and trading volumes of
Brooks common stock and Helix common stock; |
|
|
|
held discussions with members of management of Brooks and Helix
concerning their current and future business prospects and joint
prospects for the combined company, including the potential cost
savings and other synergies that may be achieved by the combined
company; |
|
|
|
reviewed certain research analyst projections with respect to
Brooks and held discussions with members of management of Brooks
concerning those projections; |
|
|
|
reviewed certain research analyst projections with respect to
Helix and held discussions with members of management of Helix
concerning those projections; |
|
|
|
compared certain publicly available financial data of companies
whose securities are traded in the public markets and that
Needham & Company deemed relevant to similar data for
Helix; |
45
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|
reviewed the financial terms of certain other business
combinations that Needham & Company deemed generally
relevant; and |
|
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|
performed and considered such other studies, analyses, inquiries
and investigations as Needham & Company deemed
appropriate. |
In connection with its review and in arriving at its opinion,
Needham & Company assumed and relied on the accuracy
and completeness of all of the financial and other information
reviewed by or discussed with it for purposes of rendering its
opinion, and Needham & Company neither attempted to
verify independently nor assumed responsibility for verifying
any of such information. In addition, Needham & Company
assumed that the merger will qualify as a reorganization within
the meaning of Section 368(a) of the Internal Revenue Code
and that the merger will be consummated upon the terms and
subject to the conditions set forth in the merger agreement
without material alternation or waiver. Needham &
Company assumed, based upon discussions with the respective
managements of Brooks and Helix, that the research analyst
projections with respect to Brooks and Helix represent
reasonable estimates as to the future financial performance of
Brooks and Helix, respectively. Needham & Company
relied upon the estimates of management of Brooks and Helix of
the potential cost savings and other synergies, including the
amount and timing thereof, that may be achieved as a result of
the merger. Needham & Company expressed no opinion with
respect to any of these projections or estimates or the
assumptions on which they were based and relied on the advice of
counsel and independent accountants to Brooks as to all legal
and financial reporting matters with respect to Brooks, the
merger and the merger agreement. Needham & Company did
not assume any responsibility for or make or obtain any
independent evaluation, appraisal or physical inspection of the
assets or liabilities of Brooks or Helix. Needham &
Companys opinion was based on economic, monetary and
market conditions existing as of its date, and
Needham & Company did not assume any responsibility to
update or revise its opinion based upon circumstances and events
occurring after the date of that opinion. Needham &
Company expressed no opinion as to what the value of Brooks
common stock will be when issued to the stockholders of Helix
pursuant to the merger or the prices at which Brooks common
stock or Helix common stock will actually trade at any time. In
addition, Needham & Company was not asked to consider,
and the Needham & Company opinion does not address,
Brooks underlying business decision to engage in the
merger or the relative merits of the merger as compared to other
business strategies that might be available for Brooks.
In connection with rendering its opinion, Needham &
Company was not requested to, and did not, participate in the
negotiation or structuring of the merger. The exchange ratio was
determined through arms length negotiations between Brooks
and Helix and not by Needham & Company. No limitations
were imposed by Brooks on Needham & Company with
respect to the investigations made or procedures followed by
Needham & Company in rendering its opinion.
In preparing its opinion, Needham & Company performed a
variety of financial and comparative analyses. The following
paragraphs summarize the material financial analyses performed
by Needham & Company in arriving at its opinion. The
order of analyses described does not represent relative
importance or weight given to those analyses by
Needham & Company. Some of the summaries of the
financial analyses include information presented in tabular
format. The tables are not intended to stand alone, and in order
to more fully understand the financial analyses used by
Needham & Company, the tables must be read together
with the full text of each summary. The following quantitative
information, to the extent it is based on market data, is,
except as otherwise indicated, based on market data as it
existed on or prior to July 8, 2005, the last trading day
prior to public announcement of the merger, and is not
necessarily indicative of current or future market conditions.
|
|
|
Average Stock Price Ratio Analysis |
Needham & Company reviewed the historical trading
prices of Brooks common stock and Helix common stock for various
periods prior to July 8, 2005, the last trading day prior
to the public
46
announcement of the merger, in order to determine the various
implied deal premiums that existed for those periods. The
following table presents:
|
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|
|
The average stock price ratios for the prior 15 trading days, 30
trading days, 60 trading days, 90 trading days, 180 trading
days, 12 months, two years, three years and five years.
Average stock price ratio data represent the daily
closing stock price of Helix common stock divided by the daily
closing stock price of Brooks common stock averaged over the
respective period. |
|
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|
The implied deal premium to the average stock price ratio, which
is equal to the percentage by which the exchange ratio pursuant
to the merger agreement, 1.11 shares of Brooks common stock
for each share of Helix common stock, exceeds the average stock
price ratio for the specified periods. |
|
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|
|
|
Average |
|
Implied |
Date or Period |
|
Stock Price Ratio |
|
Deal Premium |
|
|
|
|
|
Last 15 trading days
|
|
|
0.875 |
|
|
|
26.8% |
|
Last 30 trading days
|
|
|
0.866 |
|
|
|
28.1% |
|
Last 60 trading days
|
|
|
0.896 |
|
|
|
23.9% |
|
Last 90 trading days
|
|
|
0.940 |
|
|
|
18.1% |
|
Last 180 trading days
|
|
|
0.953 |
|
|
|
16.5% |
|
Last 12 months
|
|
|
0.973 |
|
|
|
14.1% |
|
Last two years
|
|
|
0.960 |
|
|
|
15.6% |
|
Last three years
|
|
|
0.939 |
|
|
|
18.2% |
|
Last five years
|
|
|
0.836 |
|
|
|
32.8% |
|
July 8, 2005
|
|
|
|
|
|
|
24.6% |
|
Needham & Company reviewed and analyzed the implied
percentage contribution of each of Brooks and Helix to combined
operating results for fiscal year 2004, and projected fiscal
year 2005 and fiscal year 2006 combined operating results. The
combined operating results for both parties reflect Brooks
fiscal year ending September 30. Needham & Company
also reviewed and analyzed the implied percentage contribution
of each of Brooks and Helix to combined balance sheet
information, using March 31, 2005 balance sheet information
for Brooks and April 1, 2005 balance sheet information for
Helix.
In calculating the projected combined operating results,
Needham & Company used the average of selected recent
Wall Street equity research estimates for Brooks and Helix.
Needham & Company reviewed, among other things, the
implied percentage contributions to combined revenues, gross
profit, earnings before interest, taxes, depreciation and
amortization, which is referred to in this joint proxy
statement/ prospectus as EBITDA, earnings before interest and
taxes, which is referred to in this joint proxy statement/
prospectus as EBIT, earnings before taxes, cash and equivalents,
total assets, long term debt, stockholders equity, working
capital net of debt, and net cash. In analyzing historical
EBITDA, EBIT and earnings before taxes, Needham &
Company used historical statement of operations data but added
back non-recurring charges, such as goodwill and asset
impairment charges and restructuring and acquisition-related
charges, net of taxes.
47
The following tables present the results of this analysis and
the estimated percentage ownership of the combined company on a
pro forma basis by Brooks stockholders and Helix stockholders,
based on the merger exchange ratio of 1.11x and using the
treasury stock method to calculate the number of shares of
Brooks common stock outstanding after taking into account
outstanding options.
|
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|
|
|
|
|
Implied |
|
|
Actual/Estimated |
|
|
Percentage |
|
|
Contribution |
|
|
|
|
|
Brooks |
|
Helix |
|
|
|
|
|
Combined revenues
|
|
|
|
|
|
|
|
|
|
FY2004A
|
|
|
77.5% |
|
|
|
22.5% |
|
|
FY2005E
|
|
|
75.1% |
|
|
|
24.9% |
|
|
FY2006E
|
|
|
74.0% |
|
|
|
26.0% |
|
Combined gross profit
|
|
|
|
|
|
|
|
|
|
FY2004A
|
|
|
76.7% |
|
|
|
23.3% |
|
|
FY2005E
|
|
|
72.3% |
|
|
|
27.7% |
|
|
FY2006E
|
|
|
71.5% |
|
|
|
28.5% |
|
Combined EBITDA
|
|
|
|
|
|
|
|
|
|
FY2004A
|
|
|
73.5% |
|
|
|
26.5% |
|
|
FY2005E
|
|
|
64.5% |
|
|
|
35.5% |
|
|
FY2006E
|
|
|
65.8% |
|
|
|
34.2% |
|
Combined EBIT
|
|
|
|
|
|
|
|
|
|
FY2004A
|
|
|
72.0% |
|
|
|
28.0% |
|
|
FY2005E
|
|
|
60.1% |
|
|
|
39.9% |
|
|
FY2006E
|
|
|
65.1% |
|
|
|
34.9% |
|
Combined earnings before taxes
|
|
|
|
|
|
|
|
|
|
FY2004A
|
|
|
65.2% |
|
|
|
34.8% |
|
|
FY2005E
|
|
|
51.2% |
|
|
|
48.8% |
|
|
FY2006E
|
|
|
61.3% |
|
|
|
38.7% |
|
Combined balance sheet data:
|
|
|
|
|
|
|
|
|
|
Combined cash and equivalents
|
|
|
92.6% |
|
|
|
7.4% |
|
|
Combined total assets
|
|
|
79.1% |
|
|
|
20.9% |
|
|
Combined long term debt
|
|
|
100.0% |
|
|
|
0.0% |
|
|
Combined stockholders equity
|
|
|
68.9% |
|
|
|
31.1% |
|
|
Combined working capital net of debt
|
|
|
74.3% |
|
|
|
25.7% |
|
|
Combined net cash
|
|
|
86.1% |
|
|
|
13.9% |
|
|
|
|
|
|
|
|
|
|
|
|
Estimated Pro Forma |
|
|
Ownership in the |
|
|
Combined Company |
|
|
|
|
|
Brooks |
|
Helix |
|
|
Stockholders |
|
Stockholders |
|
|
|
|
|
|
|
|
61.0% |
|
|
|
39.0% |
|
The results of the contribution analysis are not necessarily
indicative of the contributions that the respective businesses
may have in the future.
|
|
|
Pro Forma Transaction Analysis |
Needham & Company prepared pro forma analyses of the
financial impact of the merger using publicly available
information, estimates of synergies and transaction expenses
from Brooks management,
48
and a consensus of selected recent Wall Street equity research
estimates for Brooks and Helix. Needham & Company
analyzed, for the fiscal years ending September 30, 2005
and 2006, the pro forma financial impact of the merger on
Brooks estimated earnings per share, which is referred to
in this joint proxy statement/ prospectus as EPS, and the amount
of accretion or dilution on a per share basis. For purposes of
the analysis, EPS was calculated both on the basis of generally
accepted accounting principles, which is referred to in this
joint proxy statement/ prospectus as GAAP, and on a cash EPS
basis, which added back to GAAP net income amortization of
intangible assets and transaction expenses resulting from the
merger. In addition, for purposes of the analysis of pro forma
fiscal year 2005 results, Needham & Company assumed the
merger closed on September 30, 2004. Needham &
Company prepared this analysis assuming managements
estimates of $10.0 million in annual synergies resulting
from the merger in fiscal year 2006 and $12.0 million in
transaction expenses. Based on these estimates and assumptions,
Needham & Companys analysis showed that the
merger would result in accretion to Brooks estimated
fiscal year 2005 GAAP EPS and cash EPS, and dilution to
Brooks estimated fiscal year 2006 GAAP EPS but accretion
to Brooks estimated fiscal year 2006 cash EPS. The
financial forecasts that underlie this analysis are subject to
substantial uncertainty and, therefore, actual results may be
substantially different.
|
|
|
Selected Company Analysis |
Needham & Company compared selected historical and
projected financial and market data ratios for Helix to the
corresponding data and ratios of publicly traded semiconductor
capital equipment subsystem companies that Needham &
Company deemed relevant because they have lines of business that
may be considered similar to certain lines of business of Helix.
These companies, referred to as the selected companies,
consisted of the following:
|
|
|
Advanced Energy Industries, Inc. |
|
Asyst Technologies, Inc. |
|
ATMI, Inc. |
|
Cymer, Inc. |
|
Entegris, Inc. |
|
INFICON Holding AG |
|
MKS Instruments, Inc. |
|
Mykrolis Corporation |
|
Ultra Clean Holdings, Inc. |
The following table sets forth information concerning the
following multiples for the selected companies and for Helix:
|
|
|
|
|
Enterprise value as a multiple of last 12 months, which is
referred to in this joint proxy statement/ prospectus as LTM,
revenues; |
|
|
|
Enterprise value as a multiple of projected calendar year 2005
revenues; |
|
|
|
Enterprise value as a multiple of projected calendar year 2006
revenues; |
|
|
|
Enterprise value as a multiple of LTM EBITDA; |
|
|
|
Enterprise value as a multiple of LTM EBIT; |
|
|
|
Price as a multiple of LTM EPS; |
|
|
|
Price as a multiple of projected calendar year 2005 EPS; |
|
|
|
Price as a multiple of projected calendar year 2006 EPS; |
|
|
|
Enterprise value as a multiple of net assets; and |
|
|
|
Market value as a multiple of book value. |
49
Needham & Company used publicly available information
for historical information, First Call consensus data for
projected data for the selected companies, and a consensus of
selected recent Wall Street equity research estimates for the
projected data for Helix. To calculate LTM EBITDA, EBIT and EPS
multiples, Needham & Company added back non-recurring
charges, such as goodwill and asset impairment charges and
restructuring and acquisition-related charges, net of taxes.
Needham & Company calculated multiples for the selected
companies based on the closing stock prices of those companies
on July 8, 2005, the last trading day prior to the public
announcement of the merger, and for Helix based on the Brooks
closing stock price of $15.59 on July 8, 2005 and the
merger exchange ratio of 1.11x.
|
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|
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|
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|
|
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|
|
Selected Companies | |
|
Implied | |
|
|
| |
|
Helix at | |
|
|
High | |
|
Low | |
|
Mean | |
|
Median | |
|
Offer | |
|
|
| |
|
| |
|
| |
|
| |
|
| |
Enterprise value to LTM revenues
|
|
|
3.9x |
|
|
|
0.5x |
|
|
|
1.5x |
|
|
|
1.3x |
|
|
|
2.7x |
|
Enterprise value to projected calendar year 2005 revenues
|
|
|
3.5x |
|
|
|
0.6x |
|
|
|
1.5x |
|
|
|
1.4x |
|
|
|
2.4x |
|
Enterprise value to projected calendar year 2006 revenues
|
|
|
3.1x |
|
|
|
0.5x |
|
|
|
1.4x |
|
|
|
1.1x |
|
|
|
2.1x |
|
Enterprise value to LTM EBITDA
|
|
|
23.1x |
|
|
|
7.3x |
|
|
|
12.7x |
|
|
|
11.3x |
|
|
|
21.1x |
|
Enterprise value to LTM EBIT
|
|
|
24.8x |
|
|
|
8.5x |
|
|
|
15.5x |
|
|
|
14.5x |
|
|
|
29.2x |
|
Price as a multiple of LTM EPS
|
|
|
37.9x |
|
|
|
14.3x |
|
|
|
24.0x |
|
|
|
23.4x |
|
|
|
18.4x |
|
Price as a multiple of projected calendar year 2005 EPS
|
|
|
40.6x |
|
|
|
13.3x |
|
|
|
28.4x |
|
|
|
28.8x |
|
|
|
35.3x |
|
Price as a multiple of projected calendar year 2006 EPS
|
|
|
68.4x |
|
|
|
11.7x |
|
|
|
24.1x |
|
|
|
19.1x |
|
|
|
25.2x |
|
Enterprise value to net assets
|
|
|
2.4x |
|
|
|
1.0x |
|
|
|
1.5x |
|
|
|
1.3x |
|
|
|
3.0x |
|
Market value to book value
|
|
|
3.6x |
|
|
|
1.3x |
|
|
|
2.2x |
|
|
|
2.0x |
|
|
|
3.2x |
|
|
|
|
Stock Price Premium Analysis |
Needham & Company analyzed publicly available financial
information for 37 merger and acquisition transactions that
represent transactions involving publicly traded technology
companies completed between January 1, 2004 and
July 8, 2005, the last trading day prior to the public
announcement of the merger, with transaction values of between
$100.0 million and $500.0 million. In examining these
transactions, Needham & Company analyzed the premium of
consideration offered to the acquired companys stock price
one day, one week and one month prior to the announcement of the
transaction.
Needham & Company calculated premiums for Helix based
on the $15.69 closing price of Brooks common stock on
July 8, 2005, the last trading day prior to the public
announcement of the merger, and the merger exchange ratio of
1.11x. The following table sets forth information concerning the
stock price premiums in the selected transactions and the stock
price premium implied by the merger.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Transactions |
|
|
|
|
|
|
Brooks/Helix |
|
|
High |
|
Low |
|
Mean |
|
Median |
|
Merger |
|
|
|
|
|
|
|
|
|
|
|
One day stock price premium
|
|
|
71.0% |
|
|
|
1.1% |
|
|
|
27.2% |
|
|
|
23.6% |
|
|
|
24.6% |
|
One week stock price premium
|
|
|
68.1% |
|
|
|
3.4% |
|
|
|
29.5% |
|
|
|
25.0% |
|
|
|
32.7% |
|
One month stock price premium
|
|
|
72.0% |
|
|
|
1.9% |
|
|
|
37.8% |
|
|
|
38.3% |
|
|
|
27.5% |
|
50
|
|
|
Selected Transaction Analysis |
Needham & Company analyzed publicly available financial
information for the following selected merger and acquisition
transactions, which represent transactions completed between
January 1, 2000 and July 8, 2005, the last trading day
prior to the public announcement of the merger, with transaction
values between $100.0 million and $1.0 billion that
involved targets that were semiconductor capital equipment
companies:
|
|
|
Target |
|
Acquirer |
|
|
|
Align-Rite International, Inc.
|
|
Photronics, Inc. |
Applied Science and Technology, Inc.
|
|
MKS Instruments, Inc. |
Cerprobe Corporation
|
|
Kulicke and Soffa Industries, Inc. |
CFM Technologies, Inc.
|
|
Mattson Technology, Inc. |
CoorsTek, Inc.
|
|
Keystone Holdings LLC (Coors Family) |
CVC, Inc.
|
|
Veeco Instruments Inc. |
DuPont Photomasks, Inc.
|
|
Toppan Printing Co., Ltd. |
GaSonics International Corporation
|
|
Novellus Systems, Inc. |
GenRad, Inc.
|
|
Teradyne, Inc. |
Genus, Inc.
|
|
Aixtron AG |
Integrated Measurement Systems, Inc.
|
|
Credence Systems Corporation |
NPTest Holding Corporation
|
|
Credence Systems Corporation |
Numerical Technologies, Inc.
|
|
Synopsys, Inc. |
Plasma-Therm, Inc.
|
|
Oerlikon-Bührle Holding AG |
PRI Automation, Inc.
|
|
Brooks Automation, Inc. |
SpeedFam-IPEC, Inc.
|
|
Novellus Systems, Inc. |
In examining the selected transactions, Needham &
Company analyzed, for the selected transactions and for Helix:
|
|
|
|
|
aggregate transaction value as a multiple of LTM revenues; |
|
|
|
aggregate transaction value as a multiple of LTM EBIT; |
|
|
|
aggregate transaction value as a multiple of LTM EBITDA; |
|
|
|
transaction value as a multiple of LTM net income; and |
|
|
|
transaction value as a multiple of book value. |
Needham & Company calculated multiples for Helix based
on the Brooks closing stock price of $15.59 on July 8,
2005, the last trading day prior to the public announcement of
the merger, and the merger exchange ratio of 1.11x.
The following table sets forth information concerning the
multiples of aggregate transaction value to LTM revenues, EBIT
and EBITDA and the multiples of transaction value to LTM net
income and book value for the selected transactions and the same
multiples implied by the merger.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Transactions |
|
|
|
|
|
|
Brooks/Helix |
|
|
High |
|
Low |
|
Mean |
|
Median |
|
Merger |
|
|
|
|
|
|
|
|
|
|
|
Aggregate transaction value to LTM revenues
|
|
|
4.0x |
|
|
|
0.8x |
|
|
|
2.4x |
|
|
|
2.2x |
|
|
|
2.7x |
|
Aggregate transaction value to LTM EBIT
|
|
|
21.9x |
|
|
|
11.3x |
|
|
|
16.4x |
|
|
|
16.3x |
|
|
|
29.2x |
|
Aggregate transaction value to LTM EBITDA
|
|
|
44.6x |
|
|
|
8.3x |
|
|
|
17.0x |
|
|
|
11.8x |
|
|
|
21.1x |
|
Transaction value to LTM net income
|
|
|
32.1x |
|
|
|
16.2x |
|
|
|
23.7x |
|
|
|
23.2x |
|
|
|
18.4x |
|
Transaction value to book value
|
|
|
11.0x |
|
|
|
1.2x |
|
|
|
3.5x |
|
|
|
2.5x |
|
|
|
3.2x |
|
51
No company, transaction or business used in the Selected
Company Analysis, Stock Price Premium Analysis
or Selected Transaction Analysis as a comparison is
identical to Brooks, Helix or the merger. Accordingly, an
evaluation of the results of these analyses is not entirely
mathematical; rather, it involves complex considerations and
judgments concerning differences in the financial and operating
characteristics and other factors that could affect the
acquisition, public trading or other values of the selected
companies or selected transactions or the business segment,
company or transaction to which they are being compared.
The summary set forth above does not purport to be a complete
description of the analyses performed by Needham &
Company in connection with the rendering of its opinion. The
preparation of a fairness opinion is a complex analytical
process involving various determinations as to the most
appropriate and relevant quantitative and qualitative methods of
financial analyses and the application of those methods to the
particular circumstances and, therefore, such an opinion is not
readily susceptible to summary description. Accordingly,
Needham & Company believes that its analyses must be
considered as a whole and that selecting portions of its
analyses or the factors it considered, without considering all
analyses and factors, could create a misleading or incomplete
view of the process underlying its analyses and opinion.
Needham & Company did not attribute any specific weight
to any factor or analysis considered by it. The fact that any
specific analysis has been referred to in the summary above is
not meant to indicate that such analysis was given greater
weight than any other analysis.
In performing its analyses, Needham & Company made
numerous assumptions with respect to industry performance,
general business and economic and other matters, many of which
are beyond the control of Brooks and Helix. Any estimates
contained in these analyses are not necessarily indicative of
actual values or predictive of future results or values, which
may be significantly more or less favorable. Additionally,
analyses relating to the values of businesses or assets do not
purport to be appraisals or necessarily reflect the prices at
which businesses or assets may actually be sold or the prices at
which any securities have traded or may trade at any time in the
future. Accordingly, these analyses and estimates are inherently
subject to substantial uncertainty. Needham &
Companys opinion and its related analyses were only one of
many factors considered by Brooks board of directors in
its evaluation of the merger and should not be viewed as
determinative of the views of Brooks board of directors or
management with respect to the exchange ratio or the merger.
Under the terms of its engagement letter with Needham &
Company, Brooks has paid or agreed to pay Needham &
Company a nonrefundable fee for rendering the Needham &
Company opinion that Brooks and Needham & Company
believe is customary in this type of transaction.
Needham & Companys fee is not contingent on
consummation of the merger. Brooks has agreed to reimburse
Needham & Company for its out-of-pocket expenses
incurred in connection with its engagement and to indemnify
Needham & Company against certain liabilities relating
to or arising out of services performed by Needham &
Company in rendering its opinion.
Needham & Company is a nationally recognized investment
banking firm. As part of its investment banking services,
Needham & Company is regularly engaged in the
evaluation of businesses and their securities in connection with
mergers and acquisitions, negotiated underwritings, secondary
distributions of securities, private placements and other
purposes. Needham & Company was retained by
Brooks board of directors to render an opinion in
connection with the merger based on Needham &
Companys experience as a financial advisor in mergers and
acquisitions as well as Needham & Companys
familiarity with Brooks and the semiconductor industry
generally. Needham & Company acted as a managing
underwriter in connection with Brooks December 2003 public
offering of common stock, for which it received compensation,
but has had no other investment banking relationship with
Brooks, and has had no investment banking relationship with
Helix, during the past two years. Needham & Company may
in the future provide investment banking and financial advisory
services to Brooks and Helix unrelated to the merger, for which
services Needham & Company expects to receive
compensation. In the normal course of its business,
Needham & Company may actively trade the equity
securities of Brooks or Helix for its own account or for the
account of its customers and, therefore, may at any time hold a
long or short position in these securities.
52
Opinion of Helixs Financial Advisor
Helix retained Morgan Stanley to provide it with financial
advisory services and a financial opinion in connection with the
merger. Morgan Stanley was selected by Helix based on Morgan
Stanleys qualifications, expertise, reputation and its
knowledge of the business and affairs of Helix. At the special
meeting of Helixs board of directors on July 10,
2005, Morgan Stanley rendered its oral opinion, subsequently
confirmed in writing, that as of July 10, 2005, based upon
and subject to the various considerations set forth in the
opinion, the exchange ratio pursuant to the merger agreement was
fair from a financial point of view to the holders of shares of
Helix common stock.
The full text of the written opinion of Morgan Stanley, dated as
of July 10, 2005, is attached as Annex C to this joint
proxy statement/ prospectus. The opinion sets forth, among other
things, the assumptions made, procedures followed, matters
considered and limitations on the scope of the review undertaken
by Morgan Stanley in rendering its opinion. Helix
stockholders should read the entire opinion carefully. Morgan
Stanleys opinion is directed to Helixs board of
directors and addresses only the fairness of the exchange ratio
pursuant to the merger agreement from a financial point of view
to the holders of shares of common stock of Helix as of the date
of the opinion. It does not address any other aspect of the
merger and does not constitute a recommendation to any holder of
Helix common stock as to how to vote at Helixs special
meeting. The summary of the opinion of Morgan Stanley set forth
in this joint proxy statement/ prospectus is qualified in its
entirety by reference to the full text of its opinion.
In rendering its opinion, Morgan Stanley, among other things:
|
|
|
|
|
reviewed certain publicly available financial statements and
other business and financial information of Helix and Brooks; |
|
|
|
reviewed certain internal financial statements and other
financial and operating data concerning Helix and Brooks
prepared by the managements of Helix and Brooks, respectively; |
|
|
|
reviewed certain financial projections prepared by the
managements of Helix and Brooks; |
|
|
|
discussed the past and current operations, financial condition
and prospects of Helix and Brooks with senior executives of
Helix and Brooks, respectively; |
|
|
|
reviewed the pro forma impact of the merger on Brooks
earnings per share; |
|
|
|
discussed potential strategic, financial and operational
benefits anticipated from the merger with senior executives of
Helix and Brooks; |
|
|
|
reviewed reported prices and trading activity for Helix common
stock and Brooks common stock; |
|
|
|
compared the financial performance of Helix and Brooks and
prices and trading activity of Helix common stock and Brooks
common stock with those of certain other comparable publicly
traded companies; |
|
|
|
reviewed the financial terms, to the extent publicly available,
of certain comparable acquisition transactions; |
|
|
|
participated in discussions and negotiations among
representatives of Helix and Brooks and their financial and
legal advisors; |
|
|
|
reviewed the merger agreement and certain related
documents; and |
|
|
|
performed such other analyses and considered such other factors
as Morgan Stanley deemed appropriate. |
In rendering its opinion, Morgan Stanley assumed and relied upon
without independent verification the accuracy and completeness
of the information supplied or otherwise made available to
Morgan Stanley by Helix and Brooks for the purposes of this
opinion. With respect to the financial projections, including
information relating to strategic, financial and operational
benefits anticipated from the merger, Morgan
53
Stanley assumed that they had been reasonably prepared on bases
reflecting the then best currently available estimates and
judgments of the future financial performance and prospects of
Helix and Brooks. Morgan Stanley relied upon, without
independent verification, the assessment by the managements of
Helix and Brooks of their ability to retain key employees,
Helixs and Brooks technologies and products, the
timing and risks associated with the integration of Helix and
Brooks and the validity of, and risks associated with,
Helixs and Brooks existing and future products and
technologies.
In addition, Morgan Stanley assumed that the merger will be
consummated in accordance with the terms set forth in the merger
agreement, including, among other things, that the merger will
be treated as a tax-free reorganization pursuant to the Internal
Revenue Code. In addition, Morgan Stanley assumed that in
connection with the receipt of all necessary government,
regulatory or other consents and approvals required for the
merger, no delays, limitations, conditions or restrictions will
be imposed that would have any adverse effect on Helix or Brooks
or on the benefits expected to be derived from the merger.
Morgan Stanleys opinion did not address other strategic
transactions considered by either Helix or Brooks, or whether or
not such strategic transactions could be achieved or are
available, and Morgan Stanley excluded the effects of any such
strategic transactions in its analysis. Morgan Stanley is not a
legal, tax or regulatory advisor and relied upon, without
independent verification, the assessment of Helix and Brooks and
their legal, tax and regulatory advisors with respect to legal,
tax and regulatory matters. Morgan Stanley did not make any
independent valuation or appraisal of the assets or liabilities
of Helix or Brooks, nor was Morgan Stanley furnished with any
such appraisals. Morgan Stanleys opinion was necessarily
based on financial, economic, market and other conditions as in
effect on, and the information made available to Morgan Stanley
as of, the date of Morgan Stanleys opinion. Events
occurring after the date of Morgan Stanleys opinion may
affect its opinion and the assumptions used in preparing it, and
Morgan Stanley did not assume any obligation to update, revise
or reaffirm its opinion.
The following is a brief summary of the material analyses
performed by Morgan Stanley in connection with its opinion dated
July 10, 2005. This summary of financial analyses includes
information presented in tabular format. In order to fully
understand the financial analyses used by Morgan Stanley, the
tables must be read together with the text of each summary. The
tables alone do not constitute a complete description of the
financial analyses.
|
|
|
Historical Common Stock Performance |
Morgan Stanleys analysis of the performance of Helix
common stock consisted of a historical analysis of trading
prices over the period from July 8, 2004 to July 8,
2005, the last trading day prior to the public announcement of
the merger. During that period, based on trading prices on The
Nasdaq National Market, Helix common stock achieved a high
closing price of $18.71 per share and a low closing price
of $11.61 per share on July 9, 2004 and May 12,
2005, respectively. Morgan Stanley noted that Helix common stock
closed at a price of $13.89 per share on July 8, 2005,
and that based on the closing stock price of $15.59 per
share of Brooks common stock on July 8, 2005 and the merger
exchange ratio of 1.11x, the implied price of Helix common stock
was approximately $17.30 per share.
|
|
|
Comparative Stock Price Performance |
Morgan Stanley performed analyses of historical closing prices
of Helix common stock, Brooks common stock and an equally
weighted index of semiconductor capital equipment subsystems
companies consisting of Advanced Energy Industries, Inc.,
Entegris, Inc., MKS Instruments, Inc. and Pfeiffer Vacuum
Technology AG. Morgan Stanley compared the performance of this
index to that of The Nasdaq National Market generally and to the
performance of Helix common stock and Brooks common stock during
the period from July 8, 2004 to July 8, 2005, the last
trading day prior to the public announcement of the merger.
Morgan Stanley observed that over this period, the semiconductor
capital equipment subsystems index decreased 6%, The Nasdaq
National Market increased 9%, Helix common stock decreased 25%
and Brooks common stock decreased 11%.
54
|
|
|
Exchange Ratio Premium Analysis |
Morgan Stanley reviewed the ratios of the closing prices of
Helix common stock divided by the corresponding closing prices
of Brooks common stock over various periods ending July 8,
2005, the last trading day prior to the public announcement of
the merger. These ratios are referred to as period average
exchange ratios. Morgan Stanley examined the premiums
represented by the market exchange ratio of 0.891x as of
July 8, 2005 and the merger exchange ratio of 1.11x, over
the period average exchange ratios and found them to be as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July 8, 2005 Market Exchange |
|
|
|
|
|
|
Ratio (0.891x) Premium/ |
|
Merger Exchange Ratio (1.11x) |
|
|
Period Average |
|
(Discount) to Period Average |
|
Premium/ (Discount) to Period |
Period |
|
Exchange Ratio |
|
Exchange Ratio |
|
Average Exchange Ratio |
|
|
|
|
|
|
|
July 8, 2005
|
|
|
0.891 |
x |
|
|
0.0 |
% |
|
|
24.6 |
% |
Last 30 Trading Days
|
|
|
0.866 |
|
|
|
2.9 |
|
|
|
28.1 |
|
Last 60 Trading Days
|
|
|
0.896 |
|
|
|
(0.5 |
) |
|
|
23.9 |
|
Last 90 Trading Days
|
|
|
0.940 |
|
|
|
(5.2 |
) |
|
|
18.1 |
|
Since July 8, 2004
|
|
|
0.973 |
|
|
|
(8.5 |
) |
|
|
14.0 |
|
High Since July 8, 2004
|
|
|
1.171 |
|
|
|
(23.9 |
) |
|
|
(5.2 |
) |
Low Since July 8, 2004
|
|
|
0.818 |
|
|
|
8.9 |
|
|
|
35.6 |
|
|
|
|
Relative Contribution Analysis |
Morgan Stanley analyzed the relative contribution of Helix and
Brooks to estimated net income, operating income and revenue of
the combined company for the fiscal year ending
September 30, 2006 and for the twelve months ending on
June 30, 2006 based on publicly available estimates for
Helix and Brooks. Morgan Stanleys relative contribution
analysis assumed there would be no synergies. The following
table presents the results of that analysis:
|
|
|
|
|
|
|
|
|
|
|
Percentage |
|
|
Contribution |
|
|
|
|
|
Brooks |
|
Helix |
|
|
|
|
|
Estimated Net Income
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
59.9 |
% |
|
|
40.1 |
% |
Twelve Months Ending June 30, 2006
|
|
|
63.1 |
|
|
|
36.9 |
|
Estimated Operating Income
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
59.6 |
% |
|
|
40.4 |
% |
Twelve Months Ending June 30, 2006
|
|
|
62.4 |
|
|
|
37.6 |
|
Estimated Revenue
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
71.9 |
% |
|
|
28.1 |
% |
Twelve Months Ending June 30, 2006
|
|
|
72.9 |
|
|
|
27.1 |
|
Morgan Stanley adjusted the relative contribution percentages
calculated above for operating income and revenue to reflect the
relative capital structure of each company to determine the
implied pro forma ownership percentages of the combined company
for the stockholders of Brooks and Helix, respectively. The
results are set forth below:
|
|
|
|
|
|
|
|
|
|
|
|
Percentage Implied Ownership |
|
|
of the Combined Company |
|
|
|
|
|
Brooks Stockholders |
|
Helix Stockholders |
|
|
|
|
|
Estimated Net Income
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
59.9 |
% |
|
|
40.1 |
% |
|
Twelve Months Ending June 30, 2006
|
|
|
63.1 |
|
|
|
36.9 |
|
Estimated Operating Income
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
64.6 |
% |
|
|
35.4 |
% |
|
Twelve Months Ending June 30, 2006
|
|
|
66.9 |
|
|
|
33.1 |
|
Estimated Revenue
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ending September 30, 2006
|
|
|
74.6 |
% |
|
|
25.4 |
% |
|
Twelve Months Ending June 30, 2006
|
|
|
75.4 |
|
|
|
24.6 |
|
55
Morgan Stanley noted that the pro forma ownership percentage of
the combined company implied by the merger exchange ratio of
1.11x would be approximately 61% for Brooks stockholders and
approximately 39% for Helix stockholders.
Morgan Stanley further noted that the range of pro forma
ownership percentage implied a range for Helix common stock of
$10.00 to $18.00 per share. Morgan Stanley noted that based
on the closing stock price of $15.59 per share of Brooks
common stock on July 8, 2005, the last trading day prior to
the public announcement of the merger, and the merger exchange
ratio of 1.11x, the implied price of Helix common stock was
approximately $17.30 per share.
|
|
|
Present Value of Research Analyst Price Targets
Analysis |
Morgan Stanley performed an analysis of the present value per
share of Helix common stock by analyzing the 12-month target
prices of Helix common stock based upon publicly available
equity research estimates. Morgan Stanley noted that the range
of 12-month target prices of Helix common stock was between
$15.00 and $20.00 per share. Morgan Stanley further
observed that using an illustrative discount rate of 15% using
the capital asset pricing model and a discount period of one
year, the present value of the analyst price target range was
$13.00 to $17.50. Morgan Stanley noted that based on the closing
stock price of $15.59 per share of Brooks common stock on
July 8, 2005, the last trading day prior to the public
announcement of the merger, and the merger exchange ratio of
1.11x, the implied price of Helix common stock was approximately
$17.30 per share.
|
|
|
Comparable Company Analysis |
While noting that no comparable public company is exactly
identical to Brooks or Helix, Morgan Stanley compared selected
financial information for Brooks and Helix with publicly
available information for comparable semiconductor capital
equipment subsystems companies that shared certain product
characteristics and similar customer bases with Brooks and
Helix. Based upon publicly available estimates of certain
securities research analysts and using the closing prices as of
July 8, 2005, the last trading day prior to the public
announcement of the merger, Morgan Stanley calculated, for each
of these companies, both (1) the closing stock price
divided by the estimated earnings per share for calendar years
2005 and 2006, referred to as the price/earnings
multiple, and (2) the aggregate value divided by the
estimated revenues for calendar years 2005 and 2006, referred to
as the aggregate value/revenue multiple. The
aggregate value of a company was defined as the market value of
equity less cash plus the value of any debt, capital lease and
preferred stock obligations of the company. The following table
shows the results of these calculations:
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Aggregate Value/ |
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Price/ Earnings |
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Revenue |
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Company |
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CY2005E |
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CY2006E |
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CY2005E |
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CY2006E |
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Advanced Energy Industries, Inc.
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32.3 |
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10.8 |
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0.9 |
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0.8 |
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Entegris, Inc.
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34.1 |
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31.7 |
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1.9 |
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1.8 |
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MKS Instruments, Inc.
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29.5 |
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18.6 |
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1.4 |
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1.3 |
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Pfeiffer Vacuum Technology AG
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16.0 |
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14.9 |
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1.7 |
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1.6 |
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Based on the price/earnings multiple ranges set forth in the
table above, this analysis implied a range for Helix common
stock of $11.50 to $15.50 per share. Morgan Stanley noted
that based on the closing stock price of $15.59 per share
of Brooks common stock on July 8, 2005, the last trading
day prior to the public announcement of the merger, and the
merger exchange ratio of 1.11x, the implied price of Helix
common stock was approximately $17.30 per share.
Morgan Stanley further noted that based on the closing stock
price of $15.59 per share of Brooks common stock on
July 8, 2005, the last trading day prior to the public
announcement of the merger, and the merger exchange ratio of
1.11x, the aggregate value/revenue multiples for Helix were 2.5x
and 2.2x for
56
calendar years 2005 and 2006, respectively, and the
price/earnings multiples for Helix were 34.6x and 22.5x for
calendar years 2005 and 2006, respectively.
No company included in the comparable company analysis is
identical to Helix or Brooks. In evaluating the comparable
companies, Morgan Stanley made judgments and assumptions with
regard to industry performance, general business, economic,
market and financial conditions and other matters. Many of these
matters are beyond the control of Helix or Brooks, such as the
impact of competition on the business of Helix or Brooks and the
industry in general, industry growth and the absence of any
material adverse change in the financial condition and prospects
of Helix or Brooks or the industry or in the financial markets
in general. Mathematical analysis, such as determining the
average or median, or the high or low, is not in itself a
meaningful method of using comparable company data.
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Precedent Transactions Analysis |
Morgan Stanley compared certain publicly available statistics
for 84 transactions from April 22, 1996 to May 24,
2005 where the stockholders of the target company had an
ownership of between 35% to 45% of the combined company. The
following table presents the indicated premiums paid above the
closing share prices one day before the announcement of the
transaction and 30 days before the announcement of the
transaction and the premium to the average historical exchange
ratio 30 days before the announcement of the transaction:
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Premium to: |
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30-Day Average |
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30-Day Average |
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One Day |
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Stock Price |
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Historical Exchange Ratio |
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Before Announcement |
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Before Announcement |
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Before Announcement |
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Mean
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21 |
% |
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22 |
% |
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12 |
% |
Median
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21 |
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22 |
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13 |
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Of the 84 transactions, 27 transactions involved technology
companies. The following table presents for these 27
transactions the indicated premiums paid above the closing share
prices one day before the announcement of the transaction and
30 days before the announcement of the transaction and the
premium to the average historical exchange ratio 30 days
before the announcement of the transaction:
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Premium to: |
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30-Day Average |
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30-Day Average |
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One Day |
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Stock Price |
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Historical Exchange Ratio |
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Before Announcement |
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Before Announcement |
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Before Announcement |
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Mean
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30 |
% |
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24 |
% |
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22 |
% |
Median
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29 |
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22 |
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24 |
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Based on the foregoing information, this analysis implied a
range for Helix common stock of $16.00 to $18.00 per share.
Morgan Stanley noted that based on the closing stock price of
$15.59 per share of Brooks common stock on July 8,
2005, the last trading day prior to the public announcement of
the merger, and the merger exchange ratio of 1.11x, the implied
price of Helix common stock was approximately $17.30 per
share.
No transaction included in the precedent transaction analysis is
identical to the merger. In evaluating the precedent
transactions, Morgan Stanley made judgments and assumptions with
regard to industry performance, general business, economic,
market and financial conditions and other matters. Many of these
matters are beyond the control of Helix or Brooks, such as the
impact of competition on the business of Helix or Brooks and the
industry in general, industry growth and the absence of any
material adverse change in the financial condition and prospects
of Helix or Brooks or the industry or in the financial markets
in general. Mathematical analysis, such as determining the
average or median, or the high or the low, is not in itself a
meaningful method of using precedent transaction data.
57
|
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Pro Forma Analysis of the Merger |
Morgan Stanley analyzed the pro forma impact of the merger on
estimated earnings per share for Brooks for fiscal year 2006.
The pro forma results were calculated as if the merger had
closed at the beginning of the first quarter of fiscal year 2006
and were based on estimated earnings derived from publicly
available equity research estimates for Brooks and Helix. In
deriving Helixs net income estimates from pretax income
estimates, Morgan Stanley used an effective tax rate that, based
on discussions with the senior executives of Brooks and Helix,
took into account potential tax benefits and deductions
available to Brooks on a pro forma basis. The following table
presents the estimated pro forma fiscal year 2006 Brooks
earnings per share and accretion, excluding the impact of
one-time and non-cash acquisition-related expenses, based on the
merger exchange ratio of 1.11x and assuming no synergies as well
as the realization of an illustrative range of $5.0 million
to $10.0 million in annual pretax synergies during fiscal
year 2006.
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Estimated Pro Forma Fiscal 2006 |
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Fiscal 2006 Pretax Synergies |
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Brooks Earnings per Share |
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Accretion |
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No Synergies
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$ |
0.71 |
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$ |
0.05 |
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$5.0 Million Pretax Synergies
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0.76 |
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0.11 |
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$7.5 Million Pretax Synergies
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0.79 |
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0.13 |
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$10.0 Million Pretax Synergies
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0.82 |
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0.16 |
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The preparation of a fairness opinion is a complex process and
is not necessarily susceptible to a partial analysis or summary
description. In arriving at its opinion, Morgan Stanley
considered the results of all of its analyses as a whole and did
not attribute any particular weight to any particular analysis
or factor considered by it. Furthermore, Morgan Stanley believes
that the summary provided and the analyses described above must
be considered as a whole and that selecting any portion of
Morgan Stanleys analyses, without considering all of its
analyses, would create an incomplete view of the process
underlying Morgan Stanleys opinion. In addition, Morgan
Stanley may have deemed various assumptions more or less
probable than other assumptions, so that the range of valuations
resulting from any particular analysis described above should
not be taken to be Morgan Stanleys view of the actual
value of Helix or Brooks.
In performing its analyses, Morgan Stanley made numerous
assumptions with respect to industry performance, general
business and economic conditions and other matters, many of
which are beyond the control of Helix or Brooks. Any estimates
contained in Morgan Stanleys analysis are not necessarily
indicative of future results or actual values, which may be
significantly more or less favorable than those suggested by
such estimates. The analyses performed were prepared solely as
part of Morgan Stanleys analysis of the fairness of the
exchange ratio pursuant to the merger agreement from a financial
point of view to the holders of Helix common stock and were
conducted in connection with the delivery of the Morgan Stanley
opinion to the board of directors of Helix. The analyses do not
purport to be appraisals or to reflect the prices at which Helix
common stock or Brooks common stock might actually trade. The
exchange ratio pursuant to the merger agreement and other terms
of the merger agreement were determined through arms
length negotiations between Helix and Brooks and were approved
by Helixs board of directors. Morgan Stanley provided
advice to Helix during these negotiations; however, Morgan
Stanley did not recommend any specific consideration to Helix or
that any specific consideration constituted the only appropriate
consideration for the merger. In addition, as described above,
Morgan Stanleys opinion and presentation to Helixs
board of directors was one of many factors taken into
consideration by Helixs board of directors in making its
decision to approve the merger. Consequently, the Morgan Stanley
analyses as described above should not be viewed as
determinative of the opinion of Helixs board of directors
with respect to the value of Helix or of whether Helixs
board of directors would have been willing to agree to a
different consideration.
Helixs board of directors retained Morgan Stanley based
upon Morgan Stanleys qualifications, experience and
expertise. Morgan Stanley is an internationally recognized
investment banking and advisory firm. Morgan Stanley, as part of
its investment banking and financial advisory business, is
continuously engaged in the valuation of businesses and
securities in connection with mergers and acquisitions,
58
negotiated underwriting, competitive bidding, secondary
distributions of listed and unlisted securities, private
placements and valuations for corporate and other purposes. In
the ordinary course of Morgan Stanleys trading and
brokerage activities, Morgan Stanley or its affiliates may at
any time hold long or short positions, trade or otherwise effect
transactions, for their own accounts or for the accounts of
customers, in the equity or debt securities or senior loans of
Helix and/or Brooks.
Pursuant to an engagement letter, Morgan Stanley provided
financial advisory services and a financial opinion in
connection with the merger, and Helix agreed to pay Morgan
Stanley a fee that Helix and Morgan Stanley believe is customary
in connection with a transaction of this type, a significant
portion of which is contingent upon closing of the merger. Helix
has also agreed to reimburse Morgan Stanley for its expenses
incurred in performing its services. In addition, Helix has
agreed to indemnify Morgan Stanley and its affiliates, their
respective directors, officers, agents and employees and each
person, if any, controlling Morgan Stanley or any of its
affiliates against certain liabilities and expenses, including
certain liabilities under the federal securities laws, related
to or arising out of Morgan Stanleys engagement and any
related transactions. In the past, Morgan Stanley and its
affiliates have provided financing services to Helix and have
received fees for the rendering of these services.
Interests of Helixs Directors and Executive Officers in
the Merger
When considering the recommendation of Helixs board of
directors to vote FOR the approval of the
Helix merger proposal, Helix stockholders should be aware that
some directors and executive officers of Helix have agreements
or arrangements that provide them with interests in the merger
that are different from, or in addition to, the interests of
Helix stockholders. The board of directors of Helix was aware of
these interests and considered them, among other matters, during
its deliberations with respect to the merger and in deciding to
recommend that Helix stockholders vote FOR
the approval of the Helix merger proposal.
Pursuant to the terms of the merger agreement, upon consummation
of the merger Brooks board of directors will be composed
of ten directors consisting of the seven current directors of
Brooks and Messrs. Lepofsky and Woollacott and
Dr. Wrighton, who were selected by Helixs board of
directors from its current members. In addition,
Dr. Schorr, a current director of Helix, who was selected
by Helixs board of directors, will be appointed as a
non-voting director emeritus of Brooks board of
directors, with notification, participation and any other rights
of a regular Brooks director, other than voting rights, to serve
for at least one year following the effective time of the merger.
Helixs directors and executive officers each hold options
to purchase Helix common stock. As described in the section
entitled Treatment of Helix Stock
Options, Brooks will assume all outstanding options to
purchase Helix common stock in the merger.
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Existing Employment Arrangements with Helix |
Helix entered into employment agreements with
Messrs. Anastasi and Jalbert in November 2002 and with
Mr. Gentilcore in December 2002. Each of these agreements
terminates on the respective executives normal retirement
date, unless earlier terminated by Helix with or without cause,
as defined in the applicable agreement, or by the executive with
or without good reason, as defined in the applicable agreement.
Each agreement provides for, among other things, (1) a base
salary per year, currently $207,000 for Mr. Anastasi,
$207,000 for Mr. Jalbert and $375,000 for
Mr. Gentilcore, (2) an annual performance bonus
determined at the discretion of Helixs Human Resources and
Compensation Committee, (3) equity awards from time to time
under Helixs 1996 Equity Incentive Plan, also at the
discretion of Helixs Human Resources and Compensation
Committee, (4) reimbursement of business expenses and
(5) the right to participate in Helixs retirement
plans, life insurance plans, and medical plans for senior
executives and in Helixs Supplemental Key Executive
Retirement Plan. Each agreement
59
also prohibits the executive from accepting any position with
any company that is competitive with Helix for a period of three
years following the date of termination of the executives
employment, or two years following the date of termination
without cause or for good reason, each as defined in the
applicable agreement.
In the event Messrs. Anastasi, Jalbert or Gentilcore is
terminated by Helix for cause, voluntarily terminates the
agreement without good reason, or reaches his normal retirement
date, upon which the agreement automatically terminates, he
would be entitled to any then-accrued base salary, reimbursement
of then-accrued expenses and any other or additional benefits to
the extent required by any of Helixs then-applicable
benefit plans or programs. In the event any one of these
executives is terminated by Helix without cause, he would be
entitled to his then-accrued base salary, a pro-rated bonus, any
amounts payable pursuant to Helixs Supplemental Key
Executive Retirement Plan and reimbursement of any then-accrued
expenses. The executive would also be entitled to continued base
salary payments, bonus payments and all other benefits otherwise
payable under the agreement for 12 months if the date of
termination occurs at least one year after the executives
date of hire or for 24 months if the date of termination
occurs at least five years after the executives date of
hire, subject to offsets in the event the executive obtains
other employment during the period. The executives vested
options would remain exercisable for up to one year after
termination. In the event Messrs. Anastasi, Jalbert or
Gentilcore terminates his agreement for good reason, he would be
entitled to the same payments and benefits as if he had been
terminated by Helix without cause, and in addition any unvested
options that would have become exercisable during the two-year
period after the executives termination date would become
exercisable as of the termination date.
In March 2005, Helix entered into an agreement with
Mr. Kawa, then Helixs Corporate Controller, to serve
as Helixs Interim Chief Financial Officer and Corporate
Controller. The agreement, among other things, (1) requires
Helix to give Mr. Kawa six months advance notice of a
termination of Mr. Kawas employment without cause, as
defined in the agreement, (2) in the event of a termination
of Mr. Kawas employment without cause or for good
reason, as defined in the agreement, requires Helix to pay
Mr. Kawa (a) severance in an amount equal to his
annual base salary, currently $200,000, plus any applicable
variable performance award assuming the target
performance goal had been achieved, currently $60,000, subject
to offsets in the event Mr. Kawa obtains other employment
during the 12 months following the date of termination,
(b) medical, dental and life insurance benefits for a
period of up to 12 months following the date of termination
and (c) outplacement services in an amount up to $5,000,
and (3) prohibits Mr. Kawa from accepting any position
with any company that is competitive with Helix for a period of
three years following the date of termination of
Mr. Kawas employment, or two years following the date
of termination without cause or for good reason.
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Employment Arrangements with Brooks |
Upon the consummation of the merger, five current Helix
executives, including Messrs. Gentilcore and Anastasi, will be
appointed to designated positions at Brooks. Mr. Gentilcore
will be appointed Brooks President and Chief Operating
Officer, Semiconductor Products Group and Mr. Anastasi will
be appointed Brooks Executive Vice President, Global
Operations.
Brooks has entered into agreements with these Helix executives
which will become effective upon consummation of the merger,
including an employment agreement, an indemnification agreement
and an invention, non-disclosure, non-competition,
non-solicitation agreement. These agreements will replace in
their entirety the current agreements that these executives have
with Helix, if any.
Each employment agreement provides for, among other things, an
annual base salary of $375,000 for Mr. Gentilcore and
$290,000 for Mr. Anastasi, and an annual management bonus
of 0% to 150% of 100% of base salary for Mr. Gentilcore and
0% to 150% of 70% of base salary for Mr. Anastasi. During
the first year of employment, the employee will be eligible to
participate in the current Helix benefit plans. Subsequently,
the employee will be eligible to participate in all benefits
normally offered to senior executives of Brooks.
Mr. Gentilcore and Mr. Anastasi will receive options
to purchase 25,000 shares and
60
15,000 shares, respectively, of Brooks common stock, which
will vest quarterly over four years. Also, Mr. Gentilcore
and Mr. Anastasi will receive grants of 12,500 shares
and 7,500 shares, respectively, of restricted Brooks common
stock, 25% of which will vest after each of the first two years
and the remaining 50% of which will vest after the third year.
Each agreement also provides that the employee will be entitled
to severance including one years base salary and continued
participation in benefit plans if terminated without
cause or if the employee resigns for good
reason. Cause is defined to include willful failure or
refusal to perform the duties pertaining to the employees
job, engagement in conduct that is fraudulent, dishonest,
unlawful or otherwise in violation of Brooks standards of
conduct or a material breach of the employment agreement or
related agreements. Good reason is defined to include diminution
of the responsibility or position of the employee, Brooks
breach of the agreement, relocation of the employee more than
60 miles from Mansfield, Massachusetts or the Chelmsford,
Massachusetts area if he relocates his primary residence to the
Chelmsford area. In the case of Mr. Gentilcore, good reason
also includes Brooks failure to offer him the position of
Chief Executive Officer upon conclusion of the term of office of
the Chief Executive Officer serving on the closing date of the
merger. Payment of base salary and continued participation in
benefit plans may be extended for up to one additional year if
the employee is engaged in an ongoing search for replacement
employment. Each employee will also be eligible for
reimbursement of up to $100,000 in relocation expenses.
The indemnification agreements provide that Brooks will
indemnify an individual to the fullest extent permitted by
applicable law in connection with any civil or criminal action
or proceeding, including actions by or in the name of Brooks,
where the individuals involvement is by reason of the fact
that he was serving on behalf of Brooks. This indemnification
covers attorneys fees, judgments, civil or criminal fines,
settlement amounts, and other expenses customarily incurred in
connection with legal proceedings. Under the indemnification
agreements, an individual will receive indemnification unless he
or she is found not to have acted in good faith and in a manner
he or she reasonably believed to be in, or not opposed to, the
best interests of Brooks. The indemnification agreements also
cover other matters pertaining to indemnification, including
circumstances when indemnification is due with respect to some
claims but not others, indemnification for service as a witness,
advancement of expenses and various procedural matters.
The invention, non-disclosure, non-competition and
non-solicitation agreements provide that the employee will
disclose and assign to Brooks all inventions, discoveries, trade
secrets and improvements developed or made by the employee
during his employment with Brooks and assist with obtaining and
enforcing patent, copyright and other forms of related legal
protection. The agreements provide that the employee will not
disclose any information relating to such inventions or other
confidential information received by the employee during his
employment at Brooks. The agreements also prohibit the employee
from directly or indirectly competing with, or soliciting
employees of, Brooks so long as he is an employee of Brooks and
for a period of one year thereafter.
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Indemnification and Insurance |
The merger agreement provides that all rights to
indemnification, expense advancement and exculpation in favor of
any present or former director or officer of Helix or any of its
subsidiaries as provided in the charter documents or bylaws of
such entity as in effect on the date of the merger agreement
will survive the merger for a period of at least six years after
the effective time of the merger with respect to matters
occurring at or prior to the effective time of the merger. In
addition, Brooks has agreed either to (1) maintain in
effect for a period of six years from and after the consummation
of the merger the current directors and officers
liability insurance policies of Helix containing coverage with
respect to claims arising from facts or events prior to the
consummation of the merger at the same level maintained at or
prior to the consummation of the merger; provided that if the
aggregate annual premiums for this insurance during the six-year
period would exceed 200% of the per annum rate of premium paid
by Helix on the date of the merger agreement, then Brooks will
provide a policy with the best coverage then available at 200%
of such rate or (2) obtain a run-off policy or endorsement
with respect to such policies of directors and
officers liability insurance covering claims asserted
within six years of the consummation of the merger arising from
facts or events prior to the consummation of the merger;
61
provided that if the aggregate annual premiums for this
insurance would exceed 300% of the per annum rate of premium
paid by Helix on the date of the merger agreement, then Brooks
will provide a run-off policy or endorsement with the best
coverage then available at 300% of such rate.
Consummation and Effectiveness of the Merger
The merger will become effective upon the filing of the
certificate of merger with the Secretary of State of Delaware or
at such other time as Brooks and Helix agree and as specified in
the certificate of merger. The certificate of merger will be
filed as soon as practicable, but no more than two business days
following the later of the receipt of the necessary approval of
the stockholders of Brooks and Helix and the date on which all
of the conditions to the merger capable of being satisfied prior
to the closing have been satisfied or waived, unless the parties
agree on another date. Brooks and Helix are working toward
consummating the merger as quickly as possible and expect to
consummate the merger before the end of 2005.
Conversion of Helix Common Stock
For a description of the consideration to be received in the
merger by holders of Helix common stock, see the section
entitled THE MERGER AGREEMENT Merger
Consideration beginning on page 67. Brooks common
stock outstanding immediately prior to the merger will remain
outstanding and unaffected by the merger.
Treatment of Helix Stock Options
At the effective time of the merger, each outstanding option to
purchase shares of Helix common stock, whether vested or
unvested, and each Helix stock option plan will be assumed by
Brooks. Thereafter each Helix stock option will constitute an
option to acquire, on the same terms and conditions as were
applicable under the Helix stock option plans, a number of
shares of Brooks common stock equal to the aggregate number of
shares of Helix common stock subject to the Helix stock option
multiplied by 1.11, rounded down to the nearest number of whole
shares, at the price per share set forth in the Helix stock
option, divided by 1.11, rounded up to the nearest full cent.
Any adjustments with respect to any options to purchase Helix
common stock which are incentive stock options as
defined in Section 422 of the Internal Revenue Code are
intended to be effected in a manner that will preserve the
treatment of the options as incentive stock options.
Regulatory Matters
Under the HSR Act, Brooks and Helix are required to give
notification and furnish information to the FTC and the
Antitrust Division, and are required to wait until the
expiration or termination of the applicable waiting period
before they can complete the merger. Brooks and Helix have
submitted the required regulatory filings to the FTC and the
Antitrust Division. The waiting period expired on
September 2, 2005.
The FTC or the Antitrust Division may challenge the merger on
antitrust grounds after expiration of the waiting period.
Accordingly, at any time before or after the completion of the
merger, either the FTC or the Antitrust Division could take
action under the antitrust laws as it deems necessary or
desirable in the public interest, or other persons could take
action under the antitrust laws, including seeking to enjoin the
merger. Additionally, at any time before or after the completion
of the merger, notwithstanding that the applicable waiting
period expired or was terminated, any state could take action
under the antitrust laws as it deems necessary or desirable in
the public interest, or other persons could take action under
the antitrust laws. There can be no assurance that a challenge
to the merger will not be made or that, if a challenge is made,
Brooks and Helix will prevail.
Neither Brooks nor Helix is aware of any foreign governmental
approvals or actions that are required for completion of the
merger. Nonetheless, in connection with the merger, the laws of
a number of foreign countries and jurisdictions in which Brooks
and/or Helix conducts business may require the filing of
62
information with, or the obtaining of the approval or consent
of, governmental authorities in those countries and
jurisdictions. The governments in those countries and
jurisdictions might attempt to impose additional conditions on
Brooks operations conducted in those countries and
jurisdictions as a result of the merger. If those approvals or
consents are found to be required, the parties intend to make
the appropriate filings and applications. In the event that a
filing or application is made for the requisite foreign
approvals or consents, the parties cannot assure you when, if
ever, those approvals or consents will be granted.
Delisting and Deregistration of Helix Common Stock
If the merger is completed, Helix common stock will be delisted
from The Nasdaq National Market and will be deregistered under
the Securities Exchange Act of 1934. The stockholders of Helix
will become stockholders of Brooks and their rights as
stockholders will be governed by applicable Delaware law and by
Brooks certificate of incorporation and bylaws. See the
section entitled COMPARISON OF RIGHTS OF
STOCKHOLDERS beginning on page 103.
Accounting Treatment
The merger will be accounted for as a business combination using
the purchase method of accounting. Brooks will be
the acquirer for financial accounting purposes.
No Appraisal Rights
Neither Brooks stockholders nor Helix stockholders are entitled
to any appraisal rights in connection with the merger.
Federal Securities Laws Consequences; Resale Restrictions
All shares of Brooks common stock that will be distributed to
Helix stockholders in the merger will be freely transferable,
except for restrictions applicable to affiliates of
Helix and except that resale restrictions may be imposed by
securities laws in non-U.S. jurisdictions insofar as
subsequent trades are made within these jurisdictions. Persons
who are deemed to be affiliates of Helix may resell Brooks
common stock received by them only in transactions permitted by
the resale provisions of Rule 145 under the Securities Act
or as otherwise permitted under the Securities Act. Persons who
may be deemed to be affiliates of Helix generally include
executive officers, directors and holders of more than 10% of
the outstanding shares of Helix. The merger agreement requires
Helix to identify to Brooks all persons who it believes to be
affiliates of Helix and to use its reasonable commercial efforts
to cause each identified affiliate to deliver a letter to Brooks
to the effect that those persons will not sell, assign or
transfer any of the shares of Brooks common stock issued to them
in the merger unless that sale, assignment or transfer has been
registered under the Securities Act, is in conformity with
Rule 145 or is otherwise exempt from the registration
requirements under the Securities Act.
This joint proxy statement/ prospectus does not cover any
resales of the shares of Brooks common stock to be received by
Helix stockholders in the merger, and no person is authorized to
make any use of this joint proxy statement/ prospectus in
connection with any resale.
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MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES
Material U.S. Federal Income Tax Consequences of the
Merger
The discussion below summarizes the material United States
federal income tax considerations of the merger generally
applicable to common stockholders of Helix who are United
States persons, as defined for United States federal
income tax purposes, and who hold their Helix common stock as a
capital asset. For United States federal income tax purposes, a
United States person is:
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a United States citizen or resident alien as determined under
the Internal Revenue Code; |
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a corporation, as defined by the Internal Revenue Code, that is
organized under the laws of the United States, any state or the
District of Columbia; |
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an estate, the income of which is subject to United States
federal income taxation regardless of its source; or |
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a trust, if (1) a court within the United States is able to
exercise primary supervision over its administration and at
least one United States person is authorized to control all of
its substantial decisions or (2) it has a valid election in
effect, under applicable United States treasury regulations, to
be treated as a United States person. |
If a partnership, including any entity treated as a partnership
for U.S. federal income tax purposes, is a beneficial owner
of shares of Helix common stock, the tax treatment of a partner
in that partnership will generally depend on the status of the
partner and the activities of the partnership. Holders of shares
of Helix common stock that are partnerships and partners in
those partnerships are urged to consult their tax advisors
regarding the United States federal income tax consequences of
owning and disposing of shares of Helix common stock in the
merger.
The discussion below is based on current provisions of the
Internal Revenue Code, currently applicable United States
Treasury regulations promulgated thereunder, and judicial and
administrative decisions and rulings.
No ruling from the Internal Revenue Service has been or will be
sought. Future legislative, judicial or administrative changes
or interpretations could alter or modify the statements and
conclusions set forth herein, and such changes or
interpretations could be retroactive and could affect the tax
consequences of the transaction to Brooks, Helix and the
stockholders of Helix.
The discussion below does not purport to deal with all aspects
of federal income taxation that may affect particular
stockholders in light of their individual circumstances or that
may affect stockholders subject to special treatment under
federal income tax law. Stockholders subject to special
treatment include insurance companies, tax-exempt organizations,
financial institutions, mutual funds, broker-dealers, foreign
individuals and entities, stockholders subject to the
alternative minimum tax provisions of the Internal Revenue Code,
stockholders who hold Helix capital stock as qualified small
business stock within the meaning of Section 1202 of the
Internal Revenue Code, stockholders who hold their stock as part
of a hedge, wash sale, appreciated financial position, straddle,
conversion transaction, synthetic security or other risk
reduction transaction or integrated investment, and stockholders
who have acquired their stock upon exercise of employee options
or otherwise as compensation. In addition, the discussion below
does not consider the effect of any applicable state, local or
foreign tax laws. Finally, the discussion below does not
consider the tax consequences of the merger to holders of notes
or of options, warrants or other similar rights to acquire Helix
stock.
You are urged to consult with your tax advisor as to the tax
consequences of the merger to you in light of your particular
circumstances, including the applicability and effect of any
state, local or foreign tax laws.
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Exchange of Helix Common Stock |
In connection with the effectiveness of the registration
statement of which this joint proxy statement/ prospectus forms
a part, Brooks counsel, Ropes & Gray LLP, and
Helixs counsel, Palmer & Dodge LLP, have
delivered an opinion to each of Brooks and Helix, respectively,
to the effect that, for United States federal income tax
purposes, the merger of Mt. Hood with and into Helix, or the
merger together with a subsequent merger of Helix with and into
Brooks that occurs as part of a single plan, will constitute a
reorganization under Section 368(a) of the Internal Revenue
Code.
These opinions will be based on certificates executed by
officers of Brooks and Helix containing representations
regarding past, current and future matters that are customary
for transactions of this nature, and on customary assumptions,
including that the merger will be consummated in accordance with
this joint proxy statement/ prospectus and the merger agreement
and that the representations made in the officers
certificates are correct and accurate in all respects and will
remain correct and accurate in all respects at all times up to
and including the effective time of the merger and, if the
subsequent merger of Helix with and into Brooks is consummated,
at the effective time of the subsequent merger. If any of the
representations are inaccurate or incorrect, the conclusions
stated in the opinions could be affected. Officers of Brooks and
Helix have represented that they are not aware of any facts or
circumstances that would cause any representations made by them
to Ropes & Gray LLP and Palmer & Dodge LLP to
be inaccurate or incorrect in any material respect. The opinions
will not be binding on the Internal Revenue Service or the
courts, and there can be no assurance that the Internal Revenue
Service or the courts will not take a contrary view of the tax
treatment of the merger or the tax consequences discussed below.
Based on and subject to the above, the following are the
material United States federal income tax consequences that will
generally result from treatment of the merger as a
reorganization described in Section 368(a) of the Internal
Revenue Code:
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A holder of Helix common stock will not recognize any gain or
loss upon the receipt of Brooks common stock in exchange for
Helix common stock in the merger, except to the extent of cash
received in lieu of a fractional share. |
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A Helix stockholders aggregate tax basis in Brooks common
stock received in the merger in exchange for Helix common stock
will be the same as the aggregate basis of the Helix common
stock surrendered in the exchange, reduced by the portion of the
adjusted basis in Helix common stock that is allocable to any
fractional share of Brooks common stock for which cash is
received. |
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A Helix stockholders holding period for the Brooks common
stock received in the merger in exchange for such
stockholders Helix common stock will include the holding
period for the Helix common stock surrendered in the exchange. |
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A Helix stockholder that receives cash in lieu of a fractional
share of Brooks common stock will generally recognize capital
gain or loss equal to the difference between the cash received
in lieu of such fractional share and the portion of the
stockholders adjusted tax basis in Helix common stock
surrendered that is allocable to such fractional share. The
capital gain or loss will be long-term capital gain or loss if
the holding period for Helix common stock exchanged for cash in
lieu of the fractional share of Brooks common stock is more than
one year at the time of the merger. |
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None of Brooks, Helix, or any stockholder of Brooks will
recognize any gain or loss as a result of the transaction. |
As noted above, no ruling from the Internal Revenue Service has
been or will be sought in connection with the merger, and the
opinions issued by Brooks and Helixs respective
counsel will not be binding upon the Internal Revenue Service.
The Internal Revenue Service is therefore not precluded from
asserting a contrary opinion. If the Internal Revenue Service
were to challenge successfully the reorganization
status of the transaction, a holder of Helix common stock would
recognize gain or loss with respect to such stockholders
shares of Helix common stock surrendered in the merger. The gain
or loss would be equal to the difference between (1) the
fair market value of the Brooks common stock
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received in the merger plus any cash received in place of a
fractional share, and (2) the Helix stockholders
adjusted tax basis in the Helix common stock surrendered in the
merger. Such stockholders total tax basis in the Brooks
common stock received would equal its fair market value at the
effective time of the merger and such stockholders holding
period for the stock would begin the day after the consummation
of the merger.
Each Helix stockholder who receives shares of Brooks common
stock in the merger is required to file a statement with his,
her or its federal income tax return setting forth the
stockholders basis in the shares of Helix common stock
surrendered, the fair market value of the shares of Brooks
common stock received in the merger and the amount of any cash
in place of a fractional share received in the merger, and is
required to retain permanent records of these facts.
Tax Opinions as Condition to Merger
It is a condition to completion of the merger that, on the
closing date of the merger, Brooks counsel,
Ropes & Gray LLP, and Helixs counsel,
Palmer & Dodge LLP, deliver a further opinion to each
of Brooks and Helix, respectively, to the effect that, for
United States federal income tax purposes, the merger of Mt.
Hood with and into Helix, or the merger together with a
subsequent merger of Helix with and into Brooks that occurs as
part of a single plan, will constitute a reorganization under
Section 368(a) of the Internal Revenue Code. These opinions
will be based on certificates executed by officers of Brooks and
Helix containing representations regarding past, current and
future matters that are customary for transactions of this
nature. The opinions referred to in this paragraph will not be
binding on the Internal Revenue Service or the courts, and there
can be no assurance that the Internal Revenue Service or the
courts will not take a contrary view of the tax treatment of the
merger or the tax consequences discussed above.
Backup Withholding
Unless a stockholder complies with reporting and/or
certification procedures or is an exempt recipient under the
backup withholding and information reporting provisions of the
Internal Revenue Code and treasury regulations, the holder may
be subject to a withholding tax on any cash received in lieu of
a fractional share. Any amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against
the holders federal income tax liability, provided the
requisite information is furnished to the Internal Revenue
Service.
Net Operating Loss Carryforwards of Brooks
As of September 30, 2004, Brooks had approximately
$626.0 million of federal and state net operating loss
carryforwards and approximately $21.7 million of foreign
net operating loss carryforwards. In addition, as of
September 30, 2004, Brooks had approximately
$31.5 million of tax credits. Certain of these tax
attributes are subject to existing limitations on use. The
carryforwards expire at various dates through 2024. It is
unclear whether the merger will impose additional limitations on
the ability of Brooks to use these tax attributes, but it is
possible that the merger will impose additional limitations. In
particular, if Section 382 of the Internal Revenue Code
were to apply, then in any taxable year after the merger Brooks
generally would be able to use, subject to other potential
limitations and adjustments for built-in gains or losses, an
amount of pre-merger federal and state net operating losses and
certain other tax attributes equal to the product of
(1) the long-term tax-exempt bond rate in effect at the
effective time of the merger (which would be 4.24% if the merger
closed in September 2005) and (2) the fair market value of
the stock of Brooks immediately before the merger.
The above discussion is only intended to provide you with a
general summary. It is not a complete analysis or description of
every potential U.S. federal income tax consequence or any
other consequence of the transaction. In addition, the
discussion does not address tax consequences that may vary with,
or are contingent on, your individual circumstances. Moreover,
this discussion does not address any non-income tax or any
foreign, state or local tax consequences of the transaction.
Accordingly, we urge you to consult with your tax advisor to
determine the particular U.S. federal, state, local or
foreign tax consequences of the transaction to you.
66
THE MERGER AGREEMENT
General
The following summary of the merger agreement is qualified in
its entirety by reference to the complete text of the merger
agreement, as amended, which is attached as Annex A to this
joint proxy statement/ prospectus and incorporated by reference
herein. We urge you to read carefully this entire document,
including the annexes and other documents to which we have
referred you. See the section entitled WHERE YOU CAN FIND
MORE INFORMATION beginning on page 115.
The representations, warranties and covenants contained in
the merger agreement were made only for purposes of that
agreement and as of specific dates, were solely for the benefit
of the parties to such agreement, and may be subject to
limitations agreed by the contracting parties. The
representations and warranties may have been made for the
purposes of allocating contractual risk between the parties to
the agreement instead of establishing these matters as facts,
and may be subject to standards of materiality applicable to the
contracting parties that differ from those applicable to
investors. Investors are not third-party beneficiaries under the
merger agreement and should not view the representations,
warranties and covenants or any descriptions thereof as
characterizations of the actual state of facts or condition of
Brooks or Helix or any of their respective subsidiaries.
The Merger; Certificate of Merger
Subject to the terms and conditions of the merger agreement, Mt.
Hood will merge with and into Helix, which will be the surviving
corporation in the merger. As a result of the merger, Mt. Hood
will cease to exist, and Helix will become a wholly owned
subsidiary of Brooks. Brooks will continue as a public company
that holds and conducts the combined business of Helix and
Brooks and their subsidiaries.
The certificate of merger relating to the merger will be filed
as soon as practicable, but no more than two business days
following the later of the receipt of the necessary approval of
the stockholders of Brooks and Helix and the date on which all
of the conditions to the merger capable of being satisfied prior
to the closing have been satisfied or waived, unless the parties
agree on another date. The effective time of the merger will be
the time Brooks and Helix file the certificate of merger or at
such later date or time as Brooks and Helix agree and specify in
the certificate of merger.
The merger agreement contemplates, but does not require, that
Helix will be merged with and into Brooks following the merger
of Mt. Hood with and into Helix. This subsequent merger, if it
occurs, would be undertaken to simplify the organizational
structure of Brooks following the combination and would have no
impact on the holders of Brooks or Helix common stock.
Merger Consideration
At the effective time of the merger, each issued and outstanding
share of Helix common stock, other than any such common stock
held by Helix, Brooks or Mt. Hood, will be converted into the
right to receive 1.11 fully paid and nonassessable shares of
Brooks common stock. Each issued and outstanding share of Brooks
common stock before the effective time of the merger will remain
outstanding.
No fractional shares of Brooks common stock will be issued in
the merger. Any fractional shares will be paid in cash in an
amount equal to that fraction of the average of the last sale
prices of a share of Brooks common stock as reported by The
Nasdaq National Market for the five trading days immediately
preceding the effective time of the merger. No interest will be
paid or accrued on any cash payable for fractional shares.
In addition to shares of Brooks common stock and a cash payment
for any fractional shares, Brooks will issue to holders of Helix
common stock one preferred stock purchase right for each share
of Brooks common stock issued in the merger. The preferred stock
purchase rights are attached to the Brooks common stock and
trade with the Brooks common stock until a triggering event
occurs. The preferred
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stock purchase rights are described in more detail in the
section entitled DESCRIPTION OF BROOKS CAPITAL
STOCK Rights Agreement beginning on
page 100.
The exchange ratio will be appropriately adjusted to reflect any
stock split, stock dividend, recapitalization, reorganization,
reclassification, exchange, subdivision, combination of, or
other similar change in, Brooks common stock or Helix common
stock after the date of the merger agreement and prior to the
effective time of the merger.
Exchange of Shares
Immediately following the effective time of the merger, Brooks
will deposit with the exchange agent, for the benefit of the
holders of Helix common stock, sufficient shares of Brooks
common stock and cash reasonably sufficient for payments to
holders of fractional shares.
At the effective time of the merger, the stock transfer books of
Helix will be closed and no further registrations of transfers
of shares of Helix common stock will be made. If, after the
effective time of the merger, Helix stock certificates are
presented to Brooks or the exchange agent for any reason, they
will be cancelled and exchanged as described in the merger
agreement, except as otherwise provided by law.
Promptly after the effective time of the merger, the exchange
agent will mail to each record holder of Helix common stock
whose shares of Helix common stock were converted into the right
to receive the merger consideration, a letter of transmittal and
instructions explaining how to surrender Helix stock
certificates in exchange for the merger consideration.
After the effective time of the merger, upon surrender of a
Helix stock certificate to the exchange agent, together with the
letter of transmittal, duly executed, and other documents as may
reasonably be required by the exchange agent, the holder of the
Helix stock certificate will be entitled to receive (1) a
certificate representing the number of whole shares of Brooks
common stock to which the holder is entitled pursuant to the
merger agreement; and (2) as to any fractional share, a
check representing the cash consideration to which the holder is
entitled under the merger agreement. The Helix stock certificate
so surrendered will be cancelled.
Helix stockholders desiring to receive Brooks stock certificates
upon the surrender of Helix stock certificates registered in the
name of another person will receive those certificates upon
delivery to the exchange agent of all documents necessary to
evidence and effect such transfer and provided that the
stockholders:
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pay any transfer or other taxes required because the payment is
made to a person other than the registered holder of the Helix
stock certificate; or |
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establish to the satisfaction of the exchange agent that any
transfer or other taxes described above have been paid or are
not applicable. |
In the case of any lost, stolen or destroyed Helix stock
certificates, the holder thereof will be required to make an
affidavit of that fact as a condition precedent to the delivery
to the holder of the merger consideration and, if reasonably
deemed advisable by Brooks, a bond in such reasonable sum as
Brooks may direct as indemnity against any claim with respect to
the certificate alleged to have been lost, stolen or destroyed.
No dividend or other distribution by Brooks with a record date
after the effective time of the merger will be paid to a holder
of Helix common stock until that holder surrenders his or her
Helix stock certificates or complies with the procedures
described above in the case of lost certificates.
Helix stock certificates should not be returned with the
enclosed proxy card(s). Helix stock certificates should only be
returned with a validly executed transmittal letter and
accompanying instructions that will be provided to Helix
stockholders following the effective time of the merger.
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Representations and Warranties
The merger agreement contains representations and warranties
made by Helix to Brooks and by Brooks to Helix. Some of these
representations and warranties are qualified as to
materiality or material adverse effect.
For purposes of the merger agreement, material adverse
effect means with respect to Helix or Brooks, as the case
may be, any adverse effect on the partys or its
subsidiaries assets, properties, business, results of
operations or financial condition or the ability of the party or
its subsidiaries to complete the transactions contemplated by
the merger agreement on the terms set forth therein, which, when
taken together with all other adverse events, facts or
conditions with respect to which the phrase material
adverse effect is used in the merger agreement,
constitutes a material adverse effect on:
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1. the party and its subsidiaries assets, business,
results of operations, properties or financial condition, taken
as a whole; or |
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2. the partys or its subsidiaries ability to
complete the transactions contemplated by the merger agreement
on the terms set forth in the merger agreement. |
However, with respect to (1) above, effects primarily
resulting from any of the foregoing may not be taken into
account when determining whether a material adverse effect has
occurred or is reasonably likely to occur:
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conditions affecting the regional, national or global economy or
securities markets in general that do not have a materially
disproportionate impact on the party and its subsidiaries; |
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conditions affecting the industry in which the party and its
subsidiaries operate generally that do not have a materially
disproportionate impact on the party and its subsidiaries; |
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any change in the stock price or trading volume of the
partys common stock, except that the facts or occurrences
giving rise to or contributing to such change may be taken into
account; |
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any act of terrorism or war not specifically directed at the
party that does not have a materially disproportionate impact on
the party; |
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the announcement of the merger agreement and the transactions
contemplated by the merger agreement; |
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actions taken or omissions to act with the prior written consent
of the other party; |
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changes in laws of general applicability or interpretations by
courts or other governmental entities that do not have a
materially disproportionate impact on the party and its
subsidiaries; or |
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changes in generally accepted accounting principles. |
The representations and warranties in the merger agreement
relate to, among other things:
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corporate organization and standing, the corporate power to
carry on the representing partys business and
qualification to do business of the party and its respective
subsidiaries; |
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ownership of subsidiaries and joint ventures; |
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capitalization; |
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corporate power and authority to enter into the merger agreement
and due execution, delivery and enforceability of the merger
agreement; |
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board of director approval of the merger agreement and the
transactions contemplated by the merger agreement and the
approvals required by the representing partys stockholders; |
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absence of conflicts with charter documents, absence of breaches
of material contracts and agreements, absence of material liens
upon assets and absence of violations of applicable law, in each
case resulting from the execution, delivery and performance of
the merger agreement and consummation of the transactions
contemplated by the merger agreement; |
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absence of required governmental consents in connection with
execution, delivery and performance of the merger agreement and
consummation of the transactions contemplated by the merger
agreement other than certain governmental filings specified in
the merger agreement; |
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timely filing of required documents with the SEC, material
compliance with the requirements of the Securities Act and
Exchange Act and the absence of untrue statements or material
omissions in those documents; |
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conformity of financial statements to generally accepted
accounting principles and the adequacy of internal controls over
financial reporting and disclosure controls and procedures; |
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absence of certain undisclosed liabilities or obligations; |
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absence of untrue or misleading information provided by the
representing party contained or incorporated into this joint
proxy statement/ prospectus or the registration statement of
which this joint proxy statement/ prospectus forms a part; |
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absence of specified changes or events after a specified date,
and the conduct of the partys and its subsidiaries
respective businesses after such specified date; |
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tax matters; |
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material contracts; |
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intellectual property matters; |
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absence of litigation, court orders and investigations; |
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possession of permits and licenses and compliance with
applicable laws and permits and licenses; |
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brokers or finders fees; |
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employee benefits matters and compliance with the Employee
Retirement Income Security Act of 1974; |
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labor agreements and employee matters; |
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environmental matters and compliance with environmental laws; |
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insurance matters; |
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relationships with customers, suppliers, collaborators,
distributors, licensees and licensors; |
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opinions of financial advisers; |
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ownership of the other partys stock by the representing
party or its affiliates or associates; |
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transactions with affiliates; and |
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title to tangible assets and absence of certain liens on
tangible assets, ownership of real property and leasehold
interests in leased real property. |
The representations and warranties contained in the merger
agreement will not survive the effective time of the merger, but
they form the basis of a condition to each partys
obligation to complete the merger, as discussed in the section
entitled Conditions Precedent beginning
on page 74.
Covenants and Agreements
Prior to the effective time of the merger, Helix and Brooks have
each agreed to carry on its business and the businesses of its
subsidiaries in the ordinary course consistent with past
practices and to use reasonable commercial efforts to preserve
intact its insurance and properties, including intellectual
properties, to preserve its goodwill and business and to keep
available the services of its present employees.
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Without the prior written consent of the other party or the
existence of exceptions specified in the merger agreement, each
of Helix and Brooks has agreed not to, and to cause its
subsidiaries not to, in each case without the written consent of
the other party:
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dispose of significant amounts of assets; |
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incur significant liabilities; |
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increase or agree to increase the compensation payable to any
director or employee, or enter into any employment agreement
with any director or employee, except as required by law or
existing employment agreement or in the case of compensation for
employees other than officers or directors in the ordinary
course of business consistent with past practice; |
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make any change in the number of shares of its capital stock
outstanding or grant or accelerate the exercisability of any
convertible security, declare or pay any dividend, except that
Helix may pay dividends in the ordinary course of business
consistent with past practice, including with respect to timing
and amount; |
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issue or redeem any capital stock or securities exchangeable for
or convertible into capital stock, other than upon the exercise
of convertible securities outstanding on July 6, 2005 or in
connection with grants of options to purchase common stock,
limited to options to purchase 75,000 shares in the
case of Helix; |
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cause, permit or propose any amendment to its certificate of
incorporation, except that Brooks may seek the authorization of
additional shares of common stock, or elect or appoint any new
directors or officers; |
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make any significant acquisition, lease, investment or capital
contribution other than in the ordinary course of business
consistent with past practice; |
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authorize significant capital expenditures; |
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except for cash management activities, purchase any securities
or make any investment; |
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except as required as a result of a change in law or generally
accepted accounting principles, change any of its accounting
principles; |
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take or permit any subsidiary to take any action that would
prevent the merger from qualifying as a reorganization under the
Internal Revenue Code; |
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change any material tax election or settle or compromise any
material tax liability, change any annual tax accounting period,
enter into any closing agreement relating to any material tax
refund or surrender any right to claim a material tax refund; |
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commence, settle or compromise any pending or threatened suit,
action or claim which is material to the party, relates to the
merger and related transactions, would involve material
restrictions on the partys business or would involve the
issuance of the partys securities; |
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adopt a plan of complete or partial liquidation, dissolution,
merger, consolidation, restructuring or similar reorganization; |
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satisfy any material claims, liabilities or obligations other
than the payment of liabilities in the ordinary course of
business; |
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effectuate a plant closing or mass
layoff as those terms are defined in the Worker Adjustment
and Retraining Notification Act of 1988; |
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enter into, terminate or materially modify any agreement
required to be filed by such entity on its periodic reports
filed with the SEC, other than those pertaining to compensation
of management; |
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fail to pay any fee, take any action or make any filing
reasonably necessary to maintain material intellectual property
rights; |
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in the case of Helix only, modify, amend, terminate or provide a
release under any confidentiality or standstill agreement to
which Helix is a party and which relates to a business
combination involving Helix; |
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amend, modify or waive any takeover defenses or take any action
to render state takeover defenses inapplicable to any
transaction other than the merger and related
transactions; or |
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obligate itself to do any of the foregoing. |
The merger agreement contains additional agreements between
Helix and Brooks relating to, among other things:
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filing a joint proxy statement and registration statement; |
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providing the other company access to information and
cooperating regarding filings with governmental and other
agencies and organizations; |
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making and maintaining the required recommendation by the
respective boards of directors to their stockholders, subject to
the rights of the boards of directors of each of Brooks and
Helix to change that recommendation as discussed below; |
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convening and holding special meetings of stockholders to vote
on the merger proposals; |
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obtaining governmental consents required to be obtained in
connection with the merger; |
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avoiding actions that would cause the transaction to fail to
qualify as a tax-free reorganization under Section 368(a)
of the Internal Revenue Code; |
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using reasonable commercial efforts to obtain all necessary
third-party consents in connection with the merger; |
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using reasonable best efforts to take all actions that are
necessary or advisable to consummate the transactions
contemplated by the merger agreement; |
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the listing of the Brooks common stock to be issued in the
merger on The Nasdaq National Market and the delisting of the
Helix common stock; |
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confidentiality; |
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matters relating to Section 16 of the Exchange Act; |
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public announcements of the merger and the transactions
contemplated by the merger agreement; |
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notices of certain events; and |
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refraining from acquiring the other partys common stock. |
Helix has delivered to Brooks a list of those persons who are,
in Helixs reasonable judgment, affiliates of
Helix within the meaning of Rule 145 under the Securities
Act. Helix has also agreed to use its reasonable efforts to
deliver or cause to be delivered to Brooks prior to the filing
of the registration statement of which this joint proxy
statement/ prospectus forms a part, a letter from each
affiliate, by which each affiliate agrees to comply with the
applicable requirements of Rule 145.
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Stock Plans and Other Options |
At the effective time of the merger, each outstanding option to
purchase shares of Helix common stock, whether vested or
unvested, and each Helix stock option plan, will be assumed by
Brooks and thereafter each Helix stock option will constitute an
option to acquire, on the same terms and conditions,
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as were applicable under the Helix stock option plans, the same
number of shares of Brooks common stock as the holder of such
Helix stock option would have been entitled to receive pursuant
to the merger had such holder exercised the option in full
immediately prior to the effective time of the merger, rounded
down to the nearest number of whole shares, at the price per
share set forth in the Helix stock option, divided by the number
of shares of Brooks common stock into which one share of Helix
common stock is convertible under the merger agreement, rounded
up to the nearest full cent. Any adjustments with respect to any
options to purchase Helix common stock which are incentive
stock options as defined in Section 422 of the
Internal Revenue Code are intended to be effected in a manner
that will preserve the treatment of such options as
incentive stock options.
Promptly after the effective time of the merger, and in any
event no later than 30 days after the effective time of the
merger, Brooks will file a registration statement with respect
to the shares of Brooks common stock subject to such options and
will use reasonable commercial efforts to have such registration
statement declared effective promptly after filing.
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Employee Benefit and Employee Matters |
Except as set forth in an employment agreement entered into with
a former Helix employee, as approved by a resolution of a
majority of Brooks board of directors that includes at
least two of the three directors designated by Helix or as
required by law, during the year following the effective time of
the merger, Brooks will maintain each material employee benefit
plan offered to employees of Helix on the date of the merger
agreement.
From and after the conclusion of this one-year period, Brooks
will provide that former Helix employees are covered by benefit
plans applicable to similarly situated employees of Brooks.
Years of service with Helix will be treated as years of service
with Brooks for eligibility and vesting purpose and for purposes
of vacation and severance pay accruals. In addition, Brooks will
use its commercially reasonable efforts to cause to be waived
all limitations with respect to pre-existing conditions,
exclusions and waiting periods under medical and dental benefits
offered to former Helix employees.
Officers and Directors of Brooks After the Effective Time
Brooks has agreed to take all actions necessary so that at the
effective time of the merger, Messrs. Lepofsky and
Woollacott and Dr. Wrighton, current members of
Helixs board of directors who have been designated by
Helix and found reasonably acceptable to Brooks, will be
appointed to Brooks board of directors to serve until
their successors are duly appointed and that Dr. Schorr, a
member of Helixs board of directors, who has been
designated by Helix and found reasonably acceptable to Brooks,
will be appointed as a non-voting director emeritus
member of Brooks board of directors to serve for at
least one year following the effective time of the merger.
Brooks has also agreed to take all actions necessary so that at
the effective time, specified executives of Helix are appointed
to specified positions with Brooks, including that James
Gentilcore, Helixs President and Chief Executive Officer,
will serve as Brooks President and Chief Operating
Officer, Semiconductor Products Group, and Robert Anastasi,
Helixs Executive Vice President, will serve as
Brooks Executive Vice President, Global Operations.
Officer and Director Indemnification and Insurance
Brooks and Helix have agreed that all rights to indemnification,
expense advancement and exculpation in favor of any present or
former director or officer of Helix or any of its subsidiaries
as provided in the charter documents or bylaws of such entity as
in effect on the date of the merger agreement will survive the
merger for a period of at least six years after the effective
time of the merger with respect to matters occurring at or prior
to the effective time of the merger.
Brooks has agreed either to (1) maintain in effect for a
period of six years from and after the consummation of the
merger the current directors and officers liability
insurance policies of Helix containing coverage with respect to
claims arising from facts or events prior to the consummation of
the merger at the same level maintained at or prior to the
consummation of the merger; provided that if the
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aggregate annual premiums for this insurance during the six-year
period would exceed 200% of the per annum rate of premium paid
by Helix on the date of the merger agreement, then Brooks will
provide a policy with the best coverage then available at 200%
of such rate or (2) obtain a run-off policy or endorsement
with respect to such policies of directors and
officers liability insurance covering claims asserted
within six years of the consummation of the merger arising from
facts or events prior to the consummation of the merger;
provided that if the aggregate annual premiums for this
insurance would exceed 300% of the per annum rate of premium
paid by Helix on the date of the merger agreement, then Brooks
will provide a run-off policy or endorsement with the best
coverage then available at 300% of such rate.
Conditions Precedent
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Conditions to Each Partys Obligation to Effect the
Merger |
The respective obligations of Brooks and Helix to effect the
merger are subject to the satisfaction or waiver before the
closing date of each of the following conditions:
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approval of the Helix merger proposal by Helix stockholders and
approval of the Brooks merger proposal by Brooks stockholders; |
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the Form S-4 registration statement of which this joint
proxy statement/ prospectus is a part must not be the subject of
any stop order or proceedings seeking a stop order; |
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no temporary restraining order, preliminary or permanent
injunction, or other order issued by any court of competent
jurisdiction or other legal or regulatory restraint or
prohibition preventing the consummation of the merger has been
issued; |
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all consents, approvals and actions of, filings with and notices
to any governmental entity required by Brooks, Helix or any
subsidiary to consummate the merger, the failure of which to be
obtained or taken is reasonably likely to have a material
adverse effect, must have been obtained, filed or made, as
applicable; |
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no suit, action or proceeding by any governmental entity may be
pending or threatened in writing challenging the merger
agreement or the transactions contemplated by the merger
agreement seeking to delay, restrain or prohibit the merger or
seeking to obtain material damages from Brooks or Helix, seeking
to prohibit or impose material limitations on the ownership or
operation of all or a portion of the assets of Helix or Brooks
or compel Brooks or Helix to dispose of or hold separately any
material portion of its business; |
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the waiting period, and any extensions thereof, applicable to
the consummation of the merger under the HSR Act must have
expired or been terminated and all applicable foreign antitrust
and competition approvals in jurisdictions in which either Helix
or Brooks have significant operations must have been
received; and |
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the shares of Brooks common stock must continue to be quoted on
The Nasdaq National Market and the shares of Brooks common stock
to be issued in the merger must have been approved for quotation
on The Nasdaq National Market, subject to official notice of
issuance. |
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Additional Conditions to Obligations of Brooks |
The obligation of Brooks to effect the merger is also subject to
the satisfaction of the following conditions, any of which may
be waived by Brooks:
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the representations and warranties of Helix in the merger
agreement must be true and correct as of the date of the merger
agreement and immediately before the effective time of the
merger, except representations or warranties that by their terms
speak only as of an earlier date, which must be true and correct
as of such earlier date, and except to the extent any inaccuracy
in any such representation or warranty would not reasonably be
likely to have, individually or in the aggregate, a |
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material adverse effect on Helix, provided that solely for
purposes of this condition, any representation or warranty of
Helix that is qualified by materiality or material adverse
effect language must be read as if such language were not
present; and Brooks must have received a certificate signed on
behalf of Helix by the chief executive officer and chief
financial officer of Helix to that effect; |
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Helix must have performed in all material respects all
obligations required to be performed by it under the merger
agreement at or before the effective time of the merger, and
Brooks must have received a certificate signed on behalf of
Helix by the chief executive officer and the chief financial
officer of Helix to that effect; |
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Brooks must have received various certificates with respect to
the existence and good standing of Helix and the authorization
of the transaction by Helixs board of directors and
stockholders; and |
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Brooks must have received from its counsel a tax opinion to the
effect that on the basis of facts, representations and
assumptions set forth or referred to in the opinion, the merger
will be treated for federal income tax purposes as a
reorganization within the meaning of Section 368(a) of the
Internal Revenue Code. |
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Additional Conditions to Obligations of Helix |
The obligation of Helix to effect the merger is also subject to
the satisfaction of the following conditions, any of which may
be waived by Helix:
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the representations and warranties of Brooks in the merger
agreement must be true and correct as of the date of the merger
agreement and immediately before the effective time of the
merger, except representations or warranties that by their terms
speak only as of an earlier date, which must be true and correct
as of such earlier date, and except to the extent any inaccuracy
in any such representation or warranty would not reasonably be
likely to have, individually or in the aggregate, a material
adverse effect on Brooks, provided that solely for purposes of
this condition, any representation or warranty of Brooks that is
qualified by materiality or material adverse effect language
must be read as if such language were not present; and Helix
must have received a certificate signed on behalf of Brooks by
the chief executive officer and chief financial officer of
Brooks to that effect; |
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Brooks must have performed in all material respects all
obligations required to be performed by it under the merger
agreement at or before the effective time of the merger, and
Helix must have received a certificate signed on behalf of
Brooks by the chief executive officer and the chief financial
officer of Brooks to that effect; |
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Helix must have received various certificates with respect to
the existence and good standing of Brooks and the authorization
of the transaction by Brooks board of directors and
stockholders; and |
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Helix must have received from its counsel a tax opinion, to the
effect that, on the basis of facts, representations and
assumptions set forth or referred to in the opinion, the merger
will be treated for federal income tax purposes as a
reorganization within the meaning of Section 368(a) of the
Internal Revenue Code. |
No Solicitation
From the date of the merger agreement until the earlier of the
effective time of the merger or the termination of the merger
agreement, Helix has agreed that it will not and will not
authorize or permit any of its officers, directors, employees,
investment bankers, attorneys, accountants or other agents to,
directly or indirectly:
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initiate, solicit or knowingly encourage any inquiries or
proposals that constitute, or would be reasonably likely to lead
to, a proposal or offer for an acquisition proposal
as defined below; |
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enter into any agreement with respect to any acquisition
proposal; or |
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engage in negotiations or discussions with, or provide any
information or data to any person or group other than Brooks or
its affiliates concerning any acquisition proposal or grant any
waiver or release under any standstill or other agreement. |
Nothing in the non-solicitation provisions of the merger
agreement will operate to prohibit Helix from complying with
Rule 14e-2 or Rule 14d-9 under the Exchange Act with
regard to an acquisition proposal or making disclosures required
by law.
Notwithstanding the foregoing, Helix may, at any time prior to
the date of the Helix special meeting, furnish information
pursuant to a confidentiality agreement with terms no less
favorable to Helix as those contained in the confidentiality
agreement entered into between Helix and Brooks in anticipation
of the merger or negotiate and participate in discussions and
negotiations concerning an acquisition proposal if Helixs
board of directors determines in good faith by resolution duly
adopted, after consultation with its legal and financial
advisors, that the acquisition proposal constitutes or would
reasonably be expected to constitute a superior
proposal as defined below, so long as the acquisition
proposal received by Helix did not result from a breach of
Helixs obligations to not solicit an acquisition proposal.
As used in this joint proxy statement/ prospectus,
acquisition proposal means any proposal relating to
any transaction or proposed transaction, other than the
transaction between Helix and Brooks, involving:
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any acquisition or purchase from Helix of more than a 20%
interest in Helixs outstanding voting securities or any
tender offer or exchange offer that if consummated would result
in the acquisition of more than 20% of Helixs outstanding
voting securities, whether by purchase of stock, consolidation,
business combination, merger or other similar transaction; |
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any sale, lease, exchange, transfer, license, acquisition or
disposition of assets of Helix, including the stock or assets of
any subsidiary of Helix, for consideration equal to 20% or more
than the aggregate fair market value of all outstanding shares
of Helix common stock prior to the date of the merger agreement,
whether by purchase of stock, consolidation, business
combination, merger or other similar transaction; or |
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any recapitalization, restructuring, liquidation or dissolution
of Helix. |
As used in this joint proxy statement/ prospectus,
superior proposal means a bona fide written proposal
by a third party involving the purchase or acquisition of all of
Helixs outstanding shares or all or substantially all of
Helixs assets and which is on terms that Helixs
board of directors determines in good faith by resolution duly
adopted that would result in a transaction that, if consummated,
is more favorable to holders of Helix common stock, from a
financial point of view, than the transactions contemplated by
the merger agreement, taking into account all of the terms and
conditions of the proposal and the merger agreement that
Helixs board of directors deems relevant, and that is
reasonably capable of being consummated on the terms proposed,
taking into account all financial, regulatory, legal and other
aspects of such proposal.
Helix must promptly, and in no event later than 24 hours,
notify Brooks after receipt by Helix of any superior proposal,
or of any receipt of inquiries, proposals or officers or
requests for information from any third party with respect to a
potential acquisition proposal. Helix must provide Brooks with a
copy of such proposal, the name of the party making such
proposal, the material terms of such proposal and copies of all
written material supplied to such other party. Helix must keep
Brooks informed on a reasonably prompt basis, but in any event
no later than 24 hours following any significant
development, of the status and details of any such acquisition
proposal, indication or request.
Change of Recommendation
Brooks has agreed that its board of directors will not change
its recommendation that stockholders of Brooks approve the
issuance of Brooks common stock in the merger pursuant to the
terms and conditions of the merger agreement unless Brooks
board of directors, in the exercise of its fiduciary duties,
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determines in good faith by a majority vote, after consultation
with its outside counsel, that it cannot provide an unqualified
recommendation or must withdraw, modify, change or qualify its
recommendation that Brooks stockholders approve the
issuance of Brooks common stock in the merger pursuant to the
terms and conditions of the merger agreement, except that
Brooks board of directors may not make this determination
primarily based on any change in the relative stock prices of
Helix or Brooks after the date of the merger agreement.
Helix has agreed that neither its board of directors nor any
committee of its board of directors will effect a change
of recommendation as defined below or enter into any
agreement with respect to an acquisition proposal. However, if
Helix has not received a superior proposal, Helix may effect a
change of recommendation after providing Brooks with at least
24 hours prior notice and a reasonably detailed description
of the reasons for the change if its board of directors, in the
exercise of its fiduciary duties, determines in good faith by a
majority vote, after consultation with its outside counsel, that
the change of recommendation is necessary to satisfy its
fiduciary duties, except that Helixs board of directors
may not make this determination primarily based on any change in
the relative stock prices of Helix or Brooks after the date of
the merger agreement. Helixs board of directors may make a
change of recommendation after Helix has provided Brooks with
written notice that it has received a superior proposal,
provided Brooks with at least three business days to offer
revised terms on which to complete the merger, and if Brooks has
offered revised terms on which to complete the merger,
Helixs board of directors must consider any revised
proposal by Brooks and again determine to change its
recommendation.
For purposes of this joint proxy statement/ prospectus,
change of recommendation means (1) the
withdrawal or modification, or proposed withdrawal or
modification, in a manner adverse to Brooks, of the approval or
recommendation by Helixs board of directors or any
committee thereof of the merger agreement or the transactions
contemplated by the merger agreement or (2) the approval or
recommendation or proposed approval or recommendation of any
acquisition proposal.
Termination of the Merger Agreement
The merger agreement may be terminated at any time before the
effective time of the merger, whether before or after approval
by the stockholders of Brooks and/or the stockholders of Helix,
in any of the following ways:
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by the mutual written consent of Brooks and Helix; |
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by either Brooks or Helix: |
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if the merger has not been consummated on or before
February 15, 2006, referred to in this joint proxy
statement/ prospectus as the termination date,
provided that the right to terminate the merger agreement
because the termination date has passed is not available to any
party whose action or failure to fulfill an obligation in the
merger agreement has been the principal cause of the failure to
consummate the merger prior to the termination date; |
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if a court or other governmental entity has issued a final order
or ruling not subject to appeal, or a statute or regulation has
been enacted, that restrains or prohibits the merger or any of
the other transactions contemplated by the merger agreement,
provided that the party seeking to terminate the agreement on
this basis must have used all reasonable efforts to prevent the
entry of and to remove such order, ruling, statute or
regulation; or |
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if Brooks or Helix stockholders fail to give the necessary
approvals described in this joint proxy statement/ prospectus at
the special meeting called for that purpose or any adjournment
of that meeting; |
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if Helix has breached, or there is an inaccuracy in, any
representation, warranty, covenant or agreement of Helix in the
merger agreement which has resulted or is reasonably likely to
result in any condition precedent to Brooks obligation to
consummate the merger not being satisfied, |
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and if capable of cure, this breach or inaccuracy is not cured
within 30 days after receipt of written notice from Brooks; |
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if the board of directors of Helix has: |
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withdrawn, modified or changed its approval of the merger
agreement, publicly announced its intention to do so or failed
to recommend that Helix stockholders approve the Helix merger
proposal, |
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approved or recommended to Helixs stockholders, or
publicly announced its intention to enter into any agreement
with respect to, any acquisition proposal other than the merger
with Brooks, |
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resolved or publicly proposed to do any of the above, or |
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failed to recommend against, or taken a neutral position with
respect to, a tender or exchange offer related to an acquisition
proposal in any position taken pursuant to Rule 14d-9 and
14e-2 under the Exchange Act; or |
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if Helix has violated or breached in any material respect its
non-solicitation obligations; and |
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if Brooks has breached, or there is an inaccuracy in, any
representation, warranty, covenant or agreement of Brooks in the
merger agreement which has resulted or is reasonably likely to
result in any condition precedent to Helixs obligation to
consummate the merger not being satisfied, and if capable of
cure, this breach or inaccuracy is not cured within 30 days
after receipt of written notice from Helix; |
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if the board of directors of Brooks has, or has publicly
announced its intention to, withdrawn, modified or changed its
approval or recommendation that Brooks stockholders approve the
Brooks merger proposal, failed to recommend that Brooks
stockholders approve the Brooks merger proposal or resolved or
publicly proposed to do any of these things; |
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if prior to the adoption and approval of the merger agreement by
Helix stockholders: |
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Helix has received a superior proposal, |
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in light of this superior proposal, Helixs board of
directors has determined in good faith after consultation with
outside counsel that it is necessary for it to withdraw, amend
or modify its approval or recommendation that Helix stockholders
approve the Helix merger proposal order to comply with its
fiduciary duties, |
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Helix has provided written notice of this determination to
Brooks and attached a copy of the agreement containing all of
the terms of the superior proposal to the notice, |
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at least three business days have passed following receipt by
Brooks of the notice described above, and after taking into
account any revised proposal made by Brooks, Helixs board
of directors again determines in good faith after consultation
with outside counsel that it is necessary for it to withdraw,
amend or modify its approval or recommendation that Helix
stockholders approve the Helix merger proposal in order to
comply with its fiduciary duties, |
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Helix has not breached its non-solicitation covenants in any
material respect, |
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concurrent with termination of the merger agreement pursuant to
this provision, Helix enters into a definitive agreement
providing for the implementation of a superior proposal, and |
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at or prior to termination, Helix pays the termination fee
described below. |
If the merger agreement is validly terminated, it will become
void without any liability on the part of any party, except for
liability for any fraud or willful breach of the merger
agreement and as otherwise provided in the provisions of the
merger agreement relating to fees and expenses, which are
summarized
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below in the section entitled Termination Fees
and Expenses. If the merger agreement is terminated in a
situation where the termination fee and reimbursement for
transaction expenses up to $1.5 million is paid, the party
receiving the termination fee and expense reimbursement is
precluded from any other remedy against the other party.
Termination Fees and Expenses
In general, each of Brooks and Helix will bear its own expenses
in connection with the merger agreement and the related
transactions except that Brooks and Helix will share equally the
costs and expenses in connection with the filing of the
registration statement of which this joint proxy statement/
prospectus is a part, the printing and mailing of this joint
proxy statement/ prospectus and filing fees under any
U.S. or foreign antitrust or competition laws.
Helix has agreed to pay Brooks upon demand a termination fee of
$11.35 million by wire transfer of immediately available
funds and reimburse Brooks for its transaction expenses of up to
a maximum of $1.5 million if Brooks terminates the merger
agreement as described above because Helixs board of
directors has taken one of the actions described with respect to
its recommendation that Helix stockholders approve the Helix
merger proposal or failed to recommend against or taken a
neutral position with respect to a tender offer. If Helix
terminates the agreement after its receipt of a superior
proposal and compliance with the procedures described above that
are a prerequisite to Helixs ability to terminate because
it has received a superior proposal, Brooks will be entitled to
the termination fee of $11.35 million and reimbursement of
expenses of up to a maximum of $1.5 million.
Helix has also agreed to pay Brooks the termination fee and
reimburse Brooks for its expenses as described above if:
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the merger agreement is terminated because the termination date
has passed and the Helix special meeting has not occurred,
because of an intentional breach of the merger agreement by
Helix or because of a failure by Helix stockholders to adopt the
merger agreement; |
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prior to the time of termination and after the date of the
merger agreement, an acquisition proposal has been publicly
announced or communicated to Helixs board of directors;
and, |
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within 12 months after the date of termination, Helix
enters into a definitive agreement with respect to an
acquisition proposal or an acquisition proposal is consummated. |
Brooks has agreed to pay Helix a termination fee of
$11.35 million by wire transfer of immediately available
funds and reimburse Helix for its transaction expenses up to a
maximum of $1.5 million if Helix terminates the merger
agreement as described above because Brooks board of
directors has taken one of the actions described with respect to
its recommendation that Brooks stockholders approve the Brooks
merger proposal.
Amendment and Waiver
The merger agreement may be amended in writing by Brooks and
Helix. However, after approval of the Helix merger proposal by
Helix stockholders, no amendment may be made that, without
further approval of Helix stockholders, changes the amount or
the form of the consideration to be delivered to Helix
stockholders, alters or changes any term of the certificate of
incorporation of the surviving corporation or alters or changes
any of the terms or conditions of the merger agreement in a
manner that adversely affects Helix stockholders. After approval
of the Brooks merger proposal by Brooks stockholders, no
amendment may be made that increases the number of shares of
Brooks common stock that must be issued pursuant to the terms
and conditions of the merger agreement.
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Prior to the consummation of the merger, either Brooks or Helix
may extend the time for the performance of any of the
obligations or other acts of any other party to the merger
agreement; or waive compliance with any of the agreements of the
other party or any conditions to its own obligations.
The waiver of any right with respect to a particular breach or
violation of, default under or inaccuracy in any representation,
warranty or covenant will not be a waiver with respect to any
prior or subsequent breach, violation, default or inaccuracy.
The failure of or delay of either party to the merger agreement
to assert any of its rights under the merger agreement or
otherwise will not constitute a waiver of such rights.
Governing Law
The merger agreement is governed by and construed in accordance
with the laws of the State of Delaware, without regard to its
principles of conflicts of law.
Amendment to the Merger Agreement
On August 29, 2005, Brooks and Helix amended the merger
agreement to clarify the applicability of expense reimbursement
in all situations in which a termination fee is payable. See
Termination Fees and Expenses beginning
on page 79.
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BOARD OF DIRECTORS AND MANAGEMENT OF BROOKS FOLLOWING THE
MERGER
Pursuant to the terms of the merger agreement, upon consummation
of the merger Brooks board of directors will be composed
of ten directors, consisting of the seven current directors of
Brooks and Messrs. Lepofsky and Woollacott and
Dr. Wrighton, who were selected by Helixs board of
directors from its current members. In addition,
Dr. Schorr, a current director of Helix, who was selected
by Helixs board of directors, will be appointed as a
non-voting director emeritus of Brooks board of
directors, with notification, participation and any other rights
of a regular Brooks director, other than voting rights, to serve
for at least one year following the effective time of the merger.
At the effective time of the merger, James Gentilcore, currently
President and Chief Executive Officer of Helix, will be
appointed President and Chief Operating Officer of a newly
created Semiconductor Products Group of Brooks, and Joseph M.
Bellini, currently Executive Vice President and General Manager
of the Brooks Software Division, will be appointed President and
Chief Operating Officer of a newly created Enterprise Software
Group of Brooks. Robert E. Anastasi, currently Executive Vice
President of Helix, will be appointed Executive Vice President,
Global Operations of Brooks.
The following table lists the names, ages and positions of the
individuals expected to be the executive officers and directors
of Brooks after the merger:
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Position |
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Edward C. Grady
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58 |
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Chief Executive Officer and Director |
James F. Gentilcore
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53 |
|
|
President and Chief Operating Officer, Semiconductor Products
Group |
Joseph M. Bellini
|
|
|
45 |
|
|
President and Chief Operating Officer, Enterprise Software Group |
Robert E. Anastasi
|
|
|
59 |
|
|
Executive Vice President, Global Operations |
Thomas S. Grilk
|
|
|
58 |
|
|
Senior Vice President and General Counsel |
Robert W. Woodbury, Jr.
|
|
|
48 |
|
|
Senior Vice President and Chief Financial Officer |
Richard C. Small
|
|
|
47 |
|
|
Vice President and Corporate Controller |
A. Clinton Allen
|
|
|
61 |
|
|
Director |
Roger D. Emerick
|
|
|
65 |
|
|
Director |
Amin J. Khoury
|
|
|
66 |
|
|
Director |
Robert J. Lepofsky
|
|
|
60 |
|
|
Director |
Joseph R. Martin
|
|
|
57 |
|
|
Director |
John K. McGillicuddy
|
|
|
62 |
|
|
Director |
Robert J. Therrien
|
|
|
70 |
|
|
Director |
Alfred Woollacott, III
|
|
|
58 |
|
|
Director |
Mark S. Wrighton
|
|
|
56 |
|
|
Director |
Marvin G. Schorr
|
|
|
80 |
|
|
Director Emeritus |
Mr. Edward C. Grady has been President and Chief
Operating Officer of Brooks since February 2003, Chief Executive
Officer since October 1, 2004 and a director since
September 2003. Since his appointment as Chief Executive
Officer, Mr. Grady no longer maintains the title of Chief
Operating Officer. From October 2001 until February 2003,
Mr. Grady served as a consultant to Brooks. From September
2000 until January 2003, Mr. Grady was a principal in the
firm of Propel Partners LLC, an investment firm headquartered in
Palo Alto, California. From May 1999 until July 2000
Mr. Grady served as Executive Vice President of the Wafer
Inspection Group of KLA-Tencor Corp.
Mr. James F. Gentilcore was appointed President and
Chief Executive Officer of Helix in January 2005. He joined
Helix in December 2002 as Executive Vice President and Chief
Operating Officer. From
81
1996 to 2002, Mr. Gentilcore was with Advanced Energy
Industries, Inc., a manufacturer of integrated subsystems for
the semiconductor industry, most recently as Chief Operating
Officer.
Mr. Joseph M. Bellini has served as Executive Vice
President, Brooks Software Division, since joining Brooks in
March 2003. Prior to joining Brooks, Mr. Bellini was Chief
Executive Officer of eXcelon, a software company which was
merged into Progress Software in December 2002. Mr. Bellini
became Chief Executive Officer of eXcelon in September 2001
following its acquisition of C-bridge Internet Solutions, an
internet company. Mr. Bellini was Chief Executive Officer
of C-bridge Internet Solutions from 1999 until 2001.
Mr. Robert E. Anastasi has served as Executive Vice
President of Helix since February 2001. Prior to that, he served
as a Senior Vice President from July 1997 until February 2001.
Mr. Thomas S. Grilk joined Brooks in November 2002
as Senior Vice President and General Counsel and was elected
Secretary in September 2003. From July 2000 until joining
Brooks, he was Vice President and General Counsel of Teradyne,
Inc., a manufacturer of automated test equipment and electrical
connection systems.
Mr. Robert W. Woodbury, Jr. has served as
Senior Vice President and Chief Financial Officer since joining
Brooks in February, 2003. Prior to joining Brooks,
Mr. Woodbury was Vice President and Corporate Controller
since 1996 at Acterna Corporation, formerly Dynatech
Corporation, a communications equipment and network technology
company. In May 2003, Acterna filed a petition seeking
protection under Chapter 11 of the United States Bankruptcy
Code pertaining to a plan of reorganization for itself and its
U.S.-based subsidiaries. This plan was approved in September
2003 and Acterna emerged from Chapter 11 protection in
October 2003.
Mr. Richard C. Small has served as Vice President,
Corporate Controller since joining Brooks in September 2003.
Prior to joining Brooks, from January 1999 until March 2003 he
served as Corporate Controller of Global Knowledge, Inc., a
provider of IT education and enterprise training solutions.
Mr. A. Clinton Allen has been a director of Brooks
since October 2003. In addition to serving as a director of
Brooks, Mr. Allen is Chairman and Chief Executive Officer
of A.C. Allen & Company, an investment banking
consulting firm. From 1989 to 2002, Mr. Allen served as
Vice Chairman of the Board of Psychemedics Corporation, Inc., a
biotechnology company with a proprietary drug testing product,
and as Chairman of the Board of Psychemedics from 2002 to 2003.
Mr. Allen was Vice Chairman and a director of the DeWolfe
Companies, a real estate firm, until it was acquired by Cendant
Corporation in September 2002. Additionally, he was a director
and member of the executive committee of Swiss Army Brands,
maker of Swiss army knives, until it was acquired by Victorinox
Corporation in August 2002. Mr. Allen is currently a
non-executive chairman and a director of Collectors Universe, a
provider of value added services to dealers and collectors. He
also serves as a Lead Director of Steinway Musical Instruments
Company, a manufacturer of musical instruments, as a director of
LKQ Corporation, a supplier of recycled OEM automotive parts,
and as a director of Source Interlink Companies, Inc, a provider
of magazine sales information and services to the publishing and
retailing industries in North America.
Mr. Roger D. Emerick has been a director of Brooks
since October 1993. Mr. Emerick served as a director of Lam
Research Corporation, a semiconductor equipment supplier, from
1982 until January 2001.
Mr. Amin J. Khoury has been a director of Brooks
since July 1994. Since 1987, Mr. Khoury has been Chairman
of the Board of Directors of B/E Aerospace, Inc., a developer,
manufacturer and marketer of aircraft cabin interior products
which he founded in 1987. Since 1986, Mr. Khoury has been a
director of Synthes, Inc., a manufacturer and marketer of
orthopedic trauma implants and a manufacturer and marketer of
cranial-maxillofacial and spine implants. Since 1986,
Mr. Khoury has also been Chairman of the Board of Applied
Extrusion Technologies, Inc., a North American producer of
oriented polypropylene films for consumer products, labeling and
packaging. On December 1, 2004, Applied Extrusion
Technologies filed a voluntary, prepackaged plan of
reorganization under Chapter 11 of the U.S. Bankruptcy
Code pursuant to a previously announced plan of recapitalization.
82
Mr. Robert J. Lepofsky became Chairman of the Board
of Helix on January 1, 2005. He joined Ensign-Bickford
Industries, Inc., a privately held, broadly diversified company,
in January 2005 as President and Chief Executive Officer. Prior
to joining Ensign-Bickford, Mr. Lepofsky was President and
Chief Executive Officer of Helix from January 1989 until
December 2004. He served as President of Helix from February
1987 to January 1989. Prior to that, he served as Chief
Operating Officer of Helix from December 1982 to December 1988.
Mr. Lepofsky is a director of Moldflow Corporation.
Mr. Joseph R. Martin has been a director of Brooks
since June 2001. In addition to serving as a director of Brooks,
Mr. Martin is Vice Chairman of the Board of Directors of
Fairchild Semiconductor Corporation, a supplier of power
semiconductors. Mr. Martin served as Fairchilds
Executive Vice President and Chief Financial Officer from 1997
to 2003 and as its Senior Executive Vice President and Office of
the Chairman until his retirement in June 2005.
Mr. Martin is a member of the board of directors of Soitec,
Inc., a semiconductor wafer processing company, and of SynQor,
Incorporated, a manufacturer of power solutions.
Mr. John K. McGillicuddy has been a director of
Brooks since October 2003. Mr. McGillicuddy was a partner
with the international accounting firm of KPMG LLP, a public
accounting firm, from 1975 until his retirement in June 2000.
Mr. McGillicuddy is also a member of the board of directors
of Watts Water Technologies, Inc., a manufacturer of water
safety and flow control products.
Mr. Robert J. Therrien has been a director of Brooks
since 1989 and Chairman of the Board since February 2004. He
also served as President of Brooks from 1989 until February
2003, and as Chief Executive Officer from 1989 to September
2004. Mr. Therrien is currently a director of Accent
Optical Technologies, Inc., a supplier of optoelectronics and
silicon process control systems.
Mr. Alfred Woollacott, III is a certified
public accountant and was a partner with the accounting firm of
KPMG LLP from 1979 until his retirement in September 2002.
During his last five years with KPMG, he was an engagement
partner serving primarily the high technology and healthcare
companies in the greater Boston area. He also served as an SEC
Reviewing Partner and a Due Diligence Assistance Reviewing
Partner.
Dr. Mark S. Wrighton has been Chancellor of
Washington University in St. Louis since July 1995. He was
Provost of Massachusetts Institute of Technology from 1990 until
1995, and held the Ciba-Geigy Chair in Chemistry at MIT. He
joined the faculty at MIT in 1972 as Assistant Professor of
Chemistry, was appointed Associate Professor in 1976 and
Professor in 1977. From 1981 until 1989, he held the Frederick
G. Keyes Chair in Chemistry and was Head of the Department of
Chemistry from 1987 until 1990. Dr. Wrighton also serves as
a director of Ionics, Inc., Cabot Corporation, and A.G. Edwards,
Inc.
Dr. Marvin G. Schorr served as Chairman of the Board
of Helix from August 1996 to December 2004. He served as
President and Chief Executive Officer of Tech/ Ops, Inc., from
1962 to 1987 and Chairman of the Board of that company from 1981
to 1987. In 1987 Tech/ Ops was reorganized into three companies:
Landauer, Inc., Tech/ Ops Sevcon, Inc., and Tech/ Ops
Corporation, of which the former two are publicly owned
manufacturers of technology-based products and services, and the
latter was a privately owned consulting business that was
dissolved in 1999. Dr. Schorr is a director of Tech/ Ops
Sevcon, Inc., where he served as Chairman from 1987 to 2004. He
was Chairman of the Board of Directors of Landauer, Inc., and
Tech/ Ops Corporation, Inc., from 1987 to 1999.
83
BROOKS BENEFICIAL OWNERSHIP
The following table sets forth certain information known to
Brooks as of August 15, 2005, unless otherwise indicated in
the footnotes to this table, with respect to the shares of
Brooks common stock that are beneficially owned as of that date
by:
|
|
|
|
|
each person, including any partnership, syndicate, or other
group, known to Brooks management to be the beneficial owner of
more than five percent of the outstanding shares of Brooks
common stock; |
|
|
|
each of Brooks directors; |
|
|
|
the individuals who qualify as Brooks named
executive officers under the regulations of the
SEC; and |
|
|
|
all of Brooks executive officers and directors as a group. |
Brooks determined the number of shares of Brooks common stock
beneficially owned by each person under rules promulgated by the
SEC, and the information is not necessarily indicative of
beneficial ownership for any other purpose. Under these rules,
beneficial ownership includes any shares as to which the
individual or entity has sole or shared voting power or
investment power and also any shares which the individual or
entity had the right to acquire within 60 days of
August 15, 2005 through the exercise of an option,
conversion feature or similar right. All percentages are based
on the shares of Brooks common stock outstanding as of
August 15, 2005. Except as indicated in the footnotes to
this table, the persons named in the table have sole voting and
investment power with respect to the shares shown as
beneficially owned by them.
|
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially | |
|
|
Owned | |
|
|
| |
|
|
|
|
Percent of | |
Beneficial Owner |
|
Number | |
|
Class | |
|
|
| |
|
| |
5% Stockholders
|
|
|
|
|
|
|
|
|
Mazama Capital Management(1)
|
|
|
6,376,370 |
|
|
|
14.32 |
% |
|
One Southwest Columbia, Suite 1500
|
|
|
|
|
|
|
|
|
|
Portland, Oregon 97258
|
|
|
|
|
|
|
|
|
TCW Group, Inc.(2)
|
|
|
2,761,879 |
|
|
|
6.1 |
% |
|
865 South Figueroa St.
|
|
|
|
|
|
|
|
|
|
Los Angeles, CA 90017
|
|
|
|
|
|
|
|
|
David Nierenberg(3)
|
|
|
2,571,156 |
|
|
|
5.7 |
% |
|
19605 NE
8th Street
|
|
|
|
|
|
|
|
|
|
Camas, WA 98607
|
|
|
|
|
|
|
|
|
Barclays Global Investors NA(4)
|
|
|
2,235,355 |
|
|
|
5.0 |
% |
|
45 Fremont St.,
17th FL
|
|
|
|
|
|
|
|
|
|
San Francisco, CA 94105
|
|
|
|
|
|
|
|
|
Executive Officers and Directors
|
|
|
|
|
|
|
|
|
Robert J. Therrien(5)
|
|
|
1,352,436 |
|
|
|
2.94 |
% |
Edward C. Grady(5)
|
|
|
339,296 |
|
|
|
* |
|
Joseph Bellini(5)
|
|
|
97,555 |
|
|
|
* |
|
Jeffrey A. Cassis(5)(6)
|
|
|
214,335 |
|
|
|
* |
|
Peter Frasso(5)(6)
|
|
|
|
|
|
|
* |
|
Robert W. Woodbury, Jr.(5)
|
|
|
121,713 |
|
|
|
* |
|
Roger D. Emerick(5)
|
|
|
85,750 |
|
|
|
* |
|
Amin J. Khoury(5)
|
|
|
61,750 |
|
|
|
* |
|
Joseph R. Martin(5)
|
|
|
34,750 |
|
|
|
* |
|
84
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially | |
|
|
Owned | |
|
|
| |
|
|
|
|
Percent of | |
Beneficial Owner |
|
Number | |
|
Class | |
|
|
| |
|
| |
A. Clinton Allen(5)
|
|
|
13,750 |
|
|
|
* |
|
John K. McGillicuddy(5)
|
|
|
13,750 |
|
|
|
* |
|
All directors and executive officers as a group (11 persons)(5)
|
|
|
2,202,906 |
|
|
|
4.72 |
% |
|
|
* |
Less than one percent |
|
(1) |
As of December 31, 2004, based on a Schedule 13G/ A
filed by Mazama Capital Management, Inc. with the SEC on
February 14, 2005, Mazama Capital Management, Inc. has sole
voting power over 3,510,711 shares and sole dispositive
power over 6,376,370 shares. |
|
(2) |
As of December 31, 2004, based on a Schedule 13G filed
by TCW Group, Inc. with the SEC on February 14, 2005, TCW
Group, Inc. has shared voting power over 2,133,387 shares
and shared dispositive power over 2,761,879 shares. |
|
(3) |
As of July 11, 2005, based on a Schedule 13D filed by
David Nierenberg with the SEC on July 12, 2005, David
Nierenberg has sole voting power over 2,571,156 shares and
sole dispositive power over 2,571,156 shares. |
|
(4) |
As of December 31, 2004, based on a Schedule 13G filed
by Barclays Global Investors NA with the SEC on
February 14, 2005, Barclays Global Investors NA has sole
voting power over 2,047,892 shares and shared dispositive
power over 2,235,355 shares. |
|
(5) |
Includes in some instances restricted stock over which the named
individual has voting power but no investment power and shares
that the named individuals have the right to acquire within
60 days from August 15, 2005 through the exercise of
options. The amounts listed include shares under such options as
follows: Mr. Therrien, 562,268; Mr. Grady, 245,076;
Mr. Bellini, 65,251; Mr. Cassis, 213,578;
Mr. Woodbury, 90,001; Mr. Emerick, 76,750;
Mr. Khoury, 61,750; Mr. Martin, 34,750;
Mr. Allen, 13,750; Mr. McGillicuddy, 13,750 and all
directors and executive officers as a group, 1,232,252. |
|
(6) |
In February 2005 Mr. Frasso resigned as Senior Vice
President of Global Operations of Brooks. Mr. Cassis
resigned as Senior Vice President of Brooks effective
August 26, 2005. |
85
HELIX BENEFICIAL OWNERSHIP
The following table sets forth information known to Helix as of
August 15, 2005, unless otherwise indicated in the
footnotes to this table, with respect to the shares of Helix
common stock that are beneficially owned as of that date by:
|
|
|
|
|
each person, including any partnership, syndicate, or other
group, known to Helix management to be the beneficial owner of
more than five percent of the outstanding shares of Helix common
stock; |
|
|
|
each of Helixs directors; |
|
|
|
Helixs Chief Executive Officer during the fiscal year
ended December 31, 2004, and Helixs four other most
highly compensated executive officers who were serving as
executive officers of Helix on December 31, 2004, which is
referred to in this joint proxy statement/ prospectus as the
Named Executive Officers of Helix; and |
|
|
|
all of Helixs executive officers and directors as a group. |
Helix determined the number of shares of Helix common stock
beneficially owned by each person under rules promulgated by the
SEC, and the information is not necessarily indicative of
beneficial ownership for any other purpose. Under these rules,
beneficial ownership includes any shares as to which the
individual or entity has sole or shared voting power or
investment power and also any shares which the individual or
entity had the right to acquire within 60 days of
August 15, 2005 through the exercise of an option,
conversion feature or similar right. All percentages are based
on the shares of Helix common stock outstanding as of
August 15, 2005. Except as indicated in the footnotes to
this table, the persons named in the table have sole voting and
investment power with respect to the shares shown as
beneficially owned by them.
|
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially | |
|
|
Owned | |
|
|
| |
|
|
|
|
Percent of | |
Beneficial Owner |
|
Number | |
|
Class | |
|
|
| |
|
| |
5% Stockholders:
|
|
|
|
|
|
|
|
|
DePrince, Race & Zollo(1)
|
|
|
3,805,104 |
|
|
|
14.56 |
% |
|
201 South Orange Avenue
|
|
|
|
|
|
|
|
|
|
Orlando, Florida 32801
|
|
|
|
|
|
|
|
|
T. Rowe Price Associates, Inc.(2)
|
|
|
2,502,600 |
|
|
|
9.57 |
% |
|
100 E. Pratt Street
|
|
|
|
|
|
|
|
|
|
Baltimore, Maryland 21202
|
|
|
|
|
|
|
|
|
Babson Capital Management LLC(3)
|
|
|
2,021,475 |
|
|
|
7.73 |
% |
|
One Memorial Drive
|
|
|
|
|
|
|
|
|
|
Boston, Massachusetts 02142
|
|
|
|
|
|
|
|
|
Putnam Investment Management LLC(4)
|
|
|
1,359,260 |
|
|
|
5.20 |
% |
|
Two Liberty Square
|
|
|
|
|
|
|
|
|
|
Boston, Massachusetts 02109
|
|
|
|
|
|
|
|
|
Non-Employee Directors:
|
|
|
|
|
|
|
|
|
Gideon Argov(5)
|
|
|
2,000 |
|
|
|
** |
|
Frank Gabron(5)
|
|
|
16,800 |
|
|
|
** |
|
Robert H. Hayes(5)
|
|
|
13,900 |
|
|
|
** |
|
Marvin G. Schorr(5)
|
|
|
108,800 |
|
|
|
** |
|
Alfred Woollacott, III(5)
|
|
|
6,000 |
|
|
|
** |
|
Mark S. Wrighton(5)
|
|
|
16,400 |
|
|
|
** |
|
Named Executive Officers:
|
|
|
|
|
|
|
|
|
Robert J. Lepofsky*(5)(6)
|
|
|
400,011 |
|
|
|
1.52 |
% |
James F. Gentilcore*(5)
|
|
|
49,580 |
|
|
|
** |
|
86
|
|
|
|
|
|
|
|
|
|
|
Shares Beneficially | |
|
|
Owned | |
|
|
| |
|
|
|
|
Percent of | |
Beneficial Owner |
|
Number | |
|
Class | |
|
|
| |
|
| |
Jay Zager*(5)
|
|
|
1,407 |
|
|
|
** |
|
Robert E. Anastasi(5)
|
|
|
121,164 |
|
|
|
** |
|
Mark E. Jalbert(5)
|
|
|
34,289 |
|
|
|
** |
|
All directors and executive officers as a group (11
persons)(5)(6)
|
|
|
770,351 |
|
|
|
2.91 |
% |
|
|
|
|
* |
Effective January 1, 2005, Mr. Lepofsky retired as
President and Chief Executive Officer of Helix and became the
Chairman of the Board of Directors of Helix. On that date,
Mr. Gentilcore became the President and Chief Executive
Officer and a director of Helix. Mr. Zager resigned as
Senior Vice President, Chief Financial Officer and Treasurer of
Helix effective February 25, 2005. |
|
|
** |
Less than 1 percent of shares outstanding. |
|
|
(1) |
As of July 31, 2005, based on a Schedule 13G filed by
DePrince, Race & Zollo, Inc. (DRZ) with the
SEC on July 31, 2005, DRZ has sole dispositive and sole
voting power with respect to all of these shares. |
|
(2) |
As of June 30, 2005, based on a Schedule 13 F-HR
filed by T. Rowe Price Associates, Inc., (T. Rowe
Price) with the SEC on August 15, 2005, T. Rowe Price
has sole dispositive power with respect to all of these shares
and sole voting power with respect to 874,400 of these shares. |
|
(3) |
As of June 30, 2005, based on a Schedule 13 F-HR
filed by Babson Capital Management LLC (Babson
Capital) with the SEC on July 27, 2005, Babson
Capital has sole dispositive and sole voting power with respect
to all of these shares. |
|
(4) |
As of June 30, 2005, based on Schedule 13 F-HR/A
filed by Putnam Investment Management LLC (Putnam
Investment) with the SEC on August 12, 2005, Putnam
Investment has sole dispositive power with respect to all of
these shares and sole voting power with respect to 382,800 of
these shares. |
|
(5) |
Includes shares that each named individual has the right to
acquire within 60 days from August 15, 2005 through
the exercise of options. The amounts listed include shares under
such options as follows: Mr. Gabron 4,000; Dr. Hayes,
2,000; Dr. Schorr, 4,000; Mr. Woollacott, 4,000;
Dr. Wrighton 4,000; Mr. Lepofsky, 105,000;
Mr. Anastasi, 118,750; Mr. Gentilcore, 45,250;
Mr. Jalbert, 28,750 and all directors and executive
officers as a group, 315,750. Also includes 1,945 shares
for Mr. Lepofsky; 1,225 shares for
Mr. Gentilcore; 1,407 shares for Mr. Zager;
2,414 shares for Mr. Anastasi; and 1,900 shares
for Mr. Jalbert held in Helixs 401(k) retirement
savings plan. |
|
(6) |
Includes 40,000 shares held in a trust fund, with respect
to which shares Mr. Lepofsky disclaims beneficial ownership. |
87
INFORMATION ABOUT BROOKS
Brooks is a leading supplier of automation products and
solutions primarily serving the worldwide semiconductor market.
Brooks supplies hardware, software and services to both chip
manufacturers and original equipment manufacturers, or OEMs, who
make semiconductor device manufacturing equipment. Brooks is a
technology and market leader with offerings ranging from
individual hardware and software modules to fully integrated
systems as well as services to install and support its products
worldwide. Although Brooks core business addresses the
increasingly complex automation requirements of the global
semiconductor industry, Brooks is also focused on providing
automation solutions for a number of related industries,
including flat panel display manufacturing, data storage and
other complex manufacturing.
Brooks has grown significantly from being a niche supplier of
robot modules to become the largest merchant supplier of
hardware and software automation products for the semiconductor
industry in calendar years 2001, 2002 and 2003, and the
worlds twelfth largest semiconductor front-end capital
equipment company in 2003, according to the independent market
research firm Gartner Dataquest.
Brooks operates in three major segments: equipment automation,
factory automation hardware and factory automation software.
Brooks sells its products and services to nearly every major
semiconductor chip manufacturer and OEM in the world, including
all of the top ten chip companies and nine of the top ten
semiconductor equipment companies.
As of June 30, 2005, Brooks had approximately 1,850
employees worldwide. Brooks executive offices are located
at 15 Elizabeth Drive, Chelmsford, Massachusetts 01824, and can
be reached at (978) 262-2400. Brooks also maintains a
website at www.brooks.com.
Certain information relating to executive compensation, various
benefit plans, including stock option plans, certain
relationships and related transactions and other matters with
respect to Brooks is set forth in Brooks Annual Report on
Form 10-K for the fiscal year ended September 30, 2004
and Brooks proxy statement on Schedule 14A filed with
the SEC on January 6, 2005, which are incorporated into
this joint proxy statement/ prospectus by reference. See the
section entitled WHERE YOU CAN FIND MORE INFORMATION
beginning on page 115.
88
INFORMATION ABOUT HELIX
Helix is a world leader in the development, manufacture, and
application of innovative vacuum technology solutions for the
semiconductor, data storage and flat panel display markets.
Helixs vacuum systems provide enabling technology for
several key steps within the semiconductor manufacturing
process, including ion implantation, physical vapor deposition,
chemical vapor deposition and etch. Semiconductor manufacturers
use Helix systems to create and maintain a vacuum environment,
which is critical to their manufacturing processes. Helix is a
leading provider of vacuum systems technology to the
worlds largest semiconductor capital equipment and
semiconductor manufacturers, placing Helix at a critical point
in their advanced technology manufacturing process. Helixs
products are also used in a broad range of industrial
manufacturing applications and advanced research and development
laboratories. Helix provides an extensive range of global
support and vacuum system monitoring services that it believes
lower its end-users total costs of ownership.
In February 2005, Helix acquired all the issued and outstanding
shares of ICG Polycold Systems, Inc., a producer of high-speed
water vapor cryopumping and cryogenic cooling products.
As of June 30, 2005, Helix had approximately 580 permanent
employees worldwide. Helixs executive offices are located
at Mansfield Corporate Center, Nine Hampshire Street, Mansfield,
Massachusetts 02048-9171, and can be reached at (508)337-5500.
Helix also maintains a website at www.helixtechnology.com.
Certain information relating to executive compensation, various
benefit plans, including stock option plans, certain
relationships and related transactions and other matters with
respect to Helix is set forth in Helixs Annual Report on
Form 10-K for the fiscal year ended December 31, 2004
and Helixs proxy statement on Schedule 14A filed with
the SEC on May 2, 2005, which are incorporated into this
joint proxy statement/ prospectus by reference. See the section
entitled WHERE YOU CAN FIND MORE INFORMATION
beginning on page 115.
89
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL
INFORMATION
The following unaudited pro forma condensed combined financial
statements are presented to illustrate the effects of the merger
on the historical financial position and operating results of
Brooks and Helix after giving effect to the merger as a purchase
of Helix by Brooks using the purchase method of accounting, and
the assumptions and adjustments described in the accompanying
notes to the unaudited pro forma condensed combined financial
statements.
The unaudited pro forma condensed combined financial statements
are presented for informational purposes only and are not
necessarily indicative of the financial position or results of
operations of Brooks that would have occurred had the merger
been consummated as of the dates indicated. In addition, the
unaudited pro forma condensed combined financial statements are
not necessarily indicative of the future financial condition or
operating results of Brooks.
The following unaudited pro forma condensed combined balance
sheet as of June 30, 2005 is presented to give effect to
the proposed merger as if it occurred on June 30, 2005 and,
due to different fiscal period ends, combines the historical
consolidated balance sheet for Brooks at June 30, 2005 and
the historical consolidated balance sheet of Helix at
July 1, 2005. The unaudited pro forma condensed combined
statements of operations for the year ended September 30,
2004 and the nine months ended June 30, 2005 are presented
as if the merger had taken place on October 1, 2003. Due to
different fiscal year ends, the unaudited pro forma condensed
combined statement of operations for the year ended
September 30, 2004 combines the historical results of
Brooks for the year ended September 30, 2004 and the
historical results of Helix for the year ended December 31,
2004. The unaudited pro forma condensed combined statement of
operations for the nine months ended June 30, 2005 combines
the historical results of Brooks for the nine months ended
June 30, 2005 and the historical results of Helix for the
nine months ended July 1, 2005.
The historical results of Helix for the year ended
December 31, 2004 contained in the unaudited pro forma
condensed combined statement of operations have been derived
from Helixs audited consolidated statement of operations
for the year ended December 31, 2004. The historical
results of Helix for the nine months ended July 1, 2005
contained in the unaudited pro forma condensed combined
statement of operations have been derived from Helixs
audited consolidated statement of operations for the year ended
December 31, 2004 and Helixs unaudited consolidated
statement of operations for the six months ended July 1,
2005.
The merger will be accounted for under the purchase method of
accounting in accordance with Statement of Financial Accounting
Standards No. 141, Business Combinations (SFAS 141).
Under the purchase method of accounting, the total estimated
purchase price, calculated as described in Note 1 to these
unaudited pro forma condensed combined financial statements, is
allocated to the net tangible and identifiable intangible assets
of Helix acquired in connection with the merger, based on their
respective estimated fair values. Management has made a
preliminary allocation of the estimated purchase price to the
tangible and identifiable intangible assets acquired and
liabilities assumed based on various preliminary estimates.
Amounts preliminarily allocated may change significantly, which
could result in a material change in amortization of intangible
assets. A final determination of these estimated fair values
will be based on the actual net tangible and identifiable
intangible assets of Helix that exist as of the date of
completion of the merger.
90
Further, the unaudited pro forma condensed combined financial
statements do not include any adjustments for liabilities that
may result from integration activities, as management of Brooks
and Helix are in the process of making these assessments, and
estimates of these costs are not currently known. However,
liabilities ultimately may be recorded for severance costs
related to Helix employees, costs of vacating some facilities of
Helix, or other costs associated with exiting activities of
Helix that would affect amounts in the pro forma financial
statements. Any such liabilities would be recorded as an
adjustment to the purchase price and an increase in goodwill. In
addition, Brooks may incur significant restructuring charges
upon completion of the merger or in subsequent quarters for
severance costs related to Brooks employees, costs of
vacating some facilities of Brooks or other costs associated
with exiting activities of Brooks. Any such restructuring
charges would be recorded as an expense in the consolidated
statement of operations of Brooks in the period in which they
were incurred.
The unaudited pro forma operating data and balance sheet data
set forth below are not necessarily indicative of the results
that actually would have been achieved had the proposed merger
been consummated on October 1, 2003 for the operating data
and on June 30, 2005 for the balance sheet data, or that
may be achieved in the future.
91
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET AS OF
JUNE 30, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks | |
|
Helix | |
|
Adjustment | |
|
Pro Forma | |
|
|
| |
|
| |
|
| |
|
| |
|
|
(In thousands) | |
ASSETS |
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$ |
162,796 |
|
|
$ |
11,980 |
|
|
$ |
|
|
|
$ |
174,776 |
|
|
|
Marketable securities
|
|
|
138,841 |
|
|
|
17,920 |
|
|
|
|
|
|
|
156,761 |
|
|
|
Accounts receivable, net
|
|
|
90,982 |
|
|
|
26,188 |
|
|
|
(45 |
)(n) |
|
|
117,125 |
|
|
|
Inventories
|
|
|
57,708 |
|
|
|
23,677 |
|
|
|
10,527 |
(k) |
|
|
91,912 |
|
|
|
Deferred income taxes
|
|
|
|
|
|
|
7,797 |
|
|
|
(7,797 |
)(d) |
|
|
|
|
|
|
Current assets from discontinued operations
|
|
|
156 |
|
|
|
|
|
|
|
|
|
|
|
156 |
|
|
|
Prepaid expenses and other current assets
|
|
|
13,949 |
|
|
|
2,348 |
|
|
|
|
|
|
|
16,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
464,432 |
|
|
|
89,910 |
|
|
|
2,685 |
|
|
|
557,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
56,517 |
|
|
|
20,928 |
|
|
|
|
|
|
|
77,445 |
|
|
Long-term marketable securities
|
|
|
48,087 |
|
|
|
|
|
|
|
|
|
|
|
48,087 |
|
|
Goodwill
|
|
|
62,113 |
|
|
|
29,620 |
|
|
|
(29,620 |
)(a) |
|
|
343,733 |
|
|
|
|
|
|
|
|
|
|
|
|
281,620 |
(h) |
|
|
|
|
|
Intangible assets, net
|
|
|
4,565 |
|
|
|
13,396 |
|
|
|
(13,396 |
)(b) |
|
|
86,165 |
|
|
|
|
|
|
|
|
|
|
|
|
81,600 |
(g) |
|
|
|
|
|
Other assets
|
|
|
4,755 |
|
|
|
15,319 |
|
|
|
|
|
|
|
20,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$ |
640,469 |
|
|
$ |
169,173 |
|
|
$ |
322,889 |
|
|
$ |
1,132,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS
EQUITY |
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt
|
|
$ |
12 |
|
|
$ |
|
|
|
$ |
|
|
|
$ |
12 |
|
|
|
Accounts payable
|
|
|
37,019 |
|
|
|
6,196 |
|
|
|
(45 |
)(n) |
|
|
43,170 |
|
|
|
Deferred revenue
|
|
|
31,657 |
|
|
|
|
|
|
|
|
|
|
|
31,657 |
|
|
|
Accrued warranty and retrofit costs
|
|
|
11,195 |
|
|
|
1,213 |
|
|
|
|
|
|
|
12,408 |
|
|
|
Accrued compensation and benefits
|
|
|
15,024 |
|
|
|
1,197 |
|
|
|
|
|
|
|
16,221 |
|
|
|
Accrued retirement benefit
|
|
|
|
|
|
|
3,326 |
|
|
|
|
|
|
|
3,326 |
|
|
|
Accrued restructuring costs
|
|
|
9,802 |
|
|
|
|
|
|
|
|
|
|
|
9,802 |
|
|
|
Accrued income taxes payable
|
|
|
16,477 |
|
|
|
4,002 |
|
|
|
|
|
|
|
20,479 |
|
|
|
Current liabilities from discontinued operations
|
|
|
498 |
|
|
|
|
|
|
|
|
|
|
|
498 |
|
|
|
Accrued expenses and other current liabilities
|
|
|
14,497 |
|
|
|
3,869 |
|
|
|
8,270 |
(e) |
|
|
33,537 |
|
|
|
|
|
|
|
|
|
|
|
|
6,901 |
(f) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
136,181 |
|
|
|
19,803 |
|
|
|
15,126 |
|
|
|
171,110 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
175,005 |
|
|
|
|
|
|
|
|
|
|
|
175,005 |
|
|
Accrued long-term restructuring
|
|
|
10,304 |
|
|
|
|
|
|
|
|
|
|
|
10,304 |
|
|
Retirement costs
|
|
|
|
|
|
|
7,653 |
|
|
|
|
|
|
|
7,653 |
|
|
Deferred income taxes
|
|
|
|
|
|
|
406 |
|
|
|
(406 |
)(d) |
|
|
|
|
|
Other long-term liabilities
|
|
|
1,778 |
|
|
|
|
|
|
|
|
|
|
|
1,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
323,268 |
|
|
|
27,862 |
|
|
|
14,720 |
|
|
|
365,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interests
|
|
|
991 |
|
|
|
|
|
|
|
|
|
|
|
991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock
|
|
|
453 |
|
|
|
26,132 |
|
|
|
(26,132 |
)(c) |
|
|
743 |
|
|
|
|
|
|
|
|
|
|
|
|
290 |
(i) |
|
|
|
|
|
|
Additional paid-in capital
|
|
|
1,242,704 |
|
|
|
76,611 |
|
|
|
(76,611 |
)(c) |
|
|
1,692,837 |
|
|
|
|
|
|
|
|
|
|
|
|
444,089 |
(i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,044 |
(j) |
|
|
|
|
|
|
Deferred compensation
|
|
|
(3,865 |
) |
|
|
(130 |
) |
|
|
130 |
(c) |
|
|
(4,408 |
) |
|
|
|
|
|
|
|
|
|
|
|
(543 |
)(r) |
|
|
|
|
|
|
Accumulated other comprehensive income
|
|
|
12,772 |
|
|
|
794 |
|
|
|
(794 |
)(c) |
|
|
12,772 |
|
|
|
Retained earnings (accumulated deficit)
|
|
|
(935,854 |
) |
|
|
37,904 |
|
|
|
(37,904 |
)(c) |
|
|
(936,254 |
) |
|
|
|
|
|
|
|
|
|
|
|
(400 |
)(m) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity
|
|
|
316,210 |
|
|
|
141,311 |
|
|
|
308,169 |
|
|
|
765,690 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities, minority interest and stockholders
equity
|
|
$ |
640,469 |
|
|
$ |
169,173 |
|
|
$ |
322,889 |
|
|
$ |
1,132,531 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying notes to unaudited pro forma condensed combined
financial statements
92
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF
OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks | |
|
Helix | |
|
Adjustment | |
|
Pro Forma | |
|
|
| |
|
| |
|
| |
|
| |
|
|
(In thousands, except per share amounts) | |
Net revenues
|
|
$ |
535,053 |
|
|
$ |
159,674 |
|
|
$ |
(498 |
)(q) |
|
$ |
694,229 |
|
Cost of revenues
|
|
|
332,260 |
|
|
|
95,849 |
|
|
|
(498 |
)(q) |
|
|
427,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
202,793 |
|
|
|
63,825 |
|
|
|
|
|
|
|
266,618 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
65,821 |
|
|
|
10,826 |
|
|
|
73 |
(r) |
|
|
76,720 |
|
|
Selling, general and administrative
|
|
|
87,074 |
|
|
|
35,623 |
|
|
|
296 |
(r) |
|
|
122,993 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
3,663 |
|
|
|
|
|
|
|
12,657 |
(o) |
|
|
16,320 |
|
|
Restructuring and merger costs
|
|
|
5,356 |
|
|
|
|
|
|
|
|
|
|
|
5,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
161,914 |
|
|
|
46,449 |
|
|
|
13,026 |
|
|
|
221,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
40,879 |
|
|
|
17,376 |
|
|
|
(13,026 |
) |
|
|
45,229 |
|
|
Joint venture income
|
|
|
|
|
|
|
3,508 |
|
|
|
|
|
|
|
3,508 |
|
|
Interest income
|
|
|
4,984 |
|
|
|
1,065 |
|
|
|
|
|
|
|
6,049 |
|
|
Interest expense
|
|
|
(9,492 |
) |
|
|
|
|
|
|
|
|
|
|
(9,492 |
) |
|
Other expense, net
|
|
|
(911 |
) |
|
|
|
|
|
|
|
|
|
|
(911 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes and
minority interests
|
|
|
35,460 |
|
|
|
21,949 |
|
|
|
(13,026 |
) |
|
|
44,383 |
|
|
Income tax provision (benefit)
|
|
|
8,053 |
|
|
|
(5,562 |
) |
|
|
5,697 |
(s) |
|
|
8,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before minority interests
|
|
|
27,407 |
|
|
|
27,511 |
|
|
|
(18,723 |
) |
|
|
36,195 |
|
|
Minority interests in income of consolidated subsidiary
|
|
|
211 |
|
|
|
|
|
|
|
|
|
|
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$ |
27,196 |
|
|
$ |
27,511 |
|
|
$ |
(18,723 |
) |
|
$ |
35,984 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share from continuing operations
|
|
$ |
0.63 |
|
|
$ |
1.05 |
|
|
|
|
|
|
$ |
0.50 |
|
Diluted income per share from continuing operations
|
|
$ |
0.63 |
|
|
$ |
1.05 |
|
|
|
|
|
|
$ |
0.50 |
|
Shares used in computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
43,006 |
|
|
|
26,110 |
|
|
|
|
|
|
|
71,988 |
|
|
Diluted
|
|
|
43,469 |
|
|
|
26,187 |
|
|
|
|
|
|
|
72,537 |
|
See accompanying notes to unaudited pro forma condensed combined
financial statements
93
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF
OPERATIONS
FOR THE NINE MONTHS ENDED JUNE 30, 2005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Brooks | |
|
Helix | |
|
Adjustment | |
|
Pro Forma | |
|
|
| |
|
| |
|
| |
|
| |
|
|
(In thousands, except per share amounts) | |
Net revenues
|
|
$ |
360,447 |
|
|
$ |
115,716 |
|
|
$ |
(329 |
)(q) |
|
$ |
475,834 |
|
Cost of revenues
|
|
|
234,436 |
|
|
|
69,006 |
|
|
|
(329 |
)(q) |
|
|
302,533 |
|
|
|
|
|
|
|
|
|
|
|
|
(580 |
)(l) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
126,011 |
|
|
|
46,710 |
|
|
|
580 |
|
|
|
173,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
48,075 |
|
|
|
8,949 |
|
|
|
28 |
(r) |
|
|
57,052 |
|
|
Selling, general and administrative
|
|
|
60,695 |
|
|
|
30,466 |
|
|
|
109 |
(r) |
|
|
90,946 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(324 |
)(l) |
|
|
|
|
|
Amortization of acquired intangible assets
|
|
|
2,364 |
|
|
|
|
|
|
|
9,493 |
(o) |
|
|
11,857 |
|
|
Restructuring and merger costs
|
|
|
9,487 |
|
|
|
498 |
|
|
|
(498 |
)(p) |
|
|
9,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
120,621 |
|
|
|
39,913 |
|
|
|
8,808 |
|
|
|
169,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
|
5,390 |
|
|
|
6,797 |
|
|
|
(8,228 |
) |
|
|
3,959 |
|
|
Joint venture income
|
|
|
|
|
|
|
2,190 |
|
|
|
|
|
|
|
2,190 |
|
|
Interest income
|
|
|
6,463 |
|
|
|
560 |
|
|
|
|
|
|
|
7,023 |
|
|
Interest expense
|
|
|
(7,109 |
) |
|
|
|
|
|
|
|
|
|
|
(7,109 |
) |
|
Other income, net
|
|
|
706 |
|
|
|
|
|
|
|
|
|
|
|
706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before income taxes and
minority interests
|
|
|
5,450 |
|
|
|
9,547 |
|
|
|
(8,228 |
) |
|
|
6,769 |
|
|
Income tax provision (benefit)
|
|
|
4,265 |
|
|
|
(5,515 |
) |
|
|
5,219 |
(s) |
|
|
3,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations before minority interests
|
|
|
1,185 |
|
|
|
15,062 |
|
|
|
(13,447 |
) |
|
|
2,800 |
|
|
Minority interests in income of consolidated subsidiary
|
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations
|
|
$ |
1,113 |
|
|
$ |
15,062 |
|
|
$ |
(13,447 |
) |
|
$ |
2,728 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic income per share from continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.58 |
|
|
|
|
|
|
$ |
0.04 |
|
Diluted income per share from continuing operations
|
|
$ |
0.02 |
|
|
$ |
0.58 |
|
|
|
|
|
|
$ |
0.04 |
|
Shares used in computing earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
44,857 |
|
|
|
26,115 |
|
|
|
|
|
|
|
73,845 |
|
|
Diluted
|
|
|
45,124 |
|
|
|
26,163 |
|
|
|
|
|
|
|
74,165 |
|
See accompanying notes to unaudited pro forma condensed combined
financial statements
94
Notes to Unaudited Pro Forma Condensed Combined Financial
Statements
|
|
1. |
Basis of Pro Forma Presentation |
On July 11, 2005, Brooks and Helix entered into a
definitive merger agreement under which Helix will merge with a
wholly owned subsidiary of Brooks in a transaction to be
accounted for using the purchase method. In connection with the
merger, the total estimated purchase price of
$458.7 million includes the issuance of Brooks common stock
valued at $444.4 million, assumed stock options with a fair
value of $6.0 million and estimated direct transaction
costs of Brooks of $8.3 million.
The unaudited pro forma condensed combined financial statements
assume the issuance in the merger of approximately
29.0 million shares of Brooks common stock, based on an
exchange ratio of 1.11 shares of Brooks common stock for
each outstanding share of Helix common stock as of June 30,
2005. The average market price per share of Brooks common stock
of $15.32 is based on an average of the closing market price of
Brooks common stock for the period beginning two trading days
before and ending two trading days after the merger agreement
was announced. The actual number of shares of Brooks common
stock to be issued will be determined based on the actual number
of shares of Helix common stock outstanding immediately prior to
the completion of the merger.
Under the terms of the merger agreement, each outstanding option
to purchase Helix common stock will be assumed by Brooks and
converted into an option to purchase Brooks common stock. Under
the terms of the merger agreement, Brooks will assume stock
options to purchase approximately 712,000 shares of Helix
common stock, which will be converted into options to acquire
approximately 790,000 shares of Brooks common stock based
on outstanding Helix stock options as of June 30, 2005. The
fair value of the outstanding options of $6.0 million was
determined using a Black-Scholes valuation model with the
following weighted-average assumptions: volatility of 70%;
risk-free interest rate of 2.5%; expected life of
4.0 years; and dividend yield of zero. The actual number of
stock options to be assumed will be determined based on the
actual number of Helix stock options outstanding immediately
prior to the completion of the merger.
Intercompany balances or transactions between Brooks and Helix
were eliminated. No pro forma adjustments were required to
conform Helixs accounting policies to Brooks
accounting policies. Certain reclassifications have been made to
conform Helixs historical amounts to Brooks
presentation.
Management of Brooks is currently overseeing a valuation to
determine the fair values of a significant portion of
Helixs assets. The preliminary work performed on the
valuation has been considered in managements estimates of
the fair values reflected in these unaudited pro forma condensed
combined financial statements. A final determination of these
fair values, which cannot be made prior to the completion of the
merger, will include managements consideration of a final
valuation. This final valuation will be based on the actual net
tangible and intangible assets of Helix that exist as of the
date of completion of the merger.
The estimated purchase price and the allocation of the estimated
purchase price discussed below are preliminary because the
merger has not yet been completed. The actual purchase price
will be based on the shares of Brooks common stock issued to
Helix stockholders and the options to purchase Helix common
stock assumed by Brooks on the closing date of the merger. The
final allocation of the purchase price will be based on
Helixs assets and liabilities on the closing date.
95
Notes to Unaudited Pro Forma Condensed Combined Financial
Statements (Continued)
The total preliminary estimated purchase price of the merger is
as follows (in thousands):
|
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
(In thousands) |
Estimated fair value of Brooks common stock issued to Helix
stockholders
|
|
$ |
444,379 |
|
Estimated fair value of assumed Helix options
|
|
|
6,044 |
|
Estimated direct transaction fees and expenses of Brooks
|
|
|
8,270 |
|
|
|
|
|
|
|
Total preliminary estimated purchase price:
|
|
$ |
458,693 |
|
|
|
|
|
|
Under the purchase method of accounting, the total preliminary
estimated purchase price as shown in the table above is
allocated to Helix tangible and intangible assets and
liabilities based on their estimated fair values as of the date
of completion of the merger. The total preliminary estimated
purchase price is allocated as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Year |
|
Estimated Useful |
|
|
Amount |
|
Charges (Credits) |
|
Life |
|
|
|
|
|
|
|
|
|
|
|
(Years) |
|
|
(In thousands) |
|
|
Net tangible assets
|
|
$ |
94,530 |
|
|
$ |
10,527 |
(1) |
|
|
n/a |
|
Identifiable intangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Completed and core technology
|
|
|
58,300 |
|
|
|
9,110 |
|
|
|
5-10 |
|
|
Trademarks and tradenames
|
|
|
4,700 |
|
|
|
783 |
|
|
|
6 |
|
|
Customer and contract relationships
|
|
|
18,600 |
|
|
|
2,764 |
|
|
|
4-11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total identifiable intangible assets
|
|
|
81,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
281,620 |
|
|
|
|
|
|
|
n/a |
|
Deferred stock-based compensation
|
|
|
543 |
|
|
|
369 |
(2) |
|
|
4 |
|
In process research and development
|
|
|
400 |
|
|
|
400 |
(3) |
|
|
n/a |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total preliminary purchase price allocation
|
|
$ |
458,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Reflects an increase in cost of goods sold of $10.5 million
related to the revaluation of certain inventory to fair value.
This charge is non-recurring and as such is not reflected in the
unaudited pro forma condensed combined statements of
operations. |
|
(2) |
Relates to compensation expense associated with unvested stock
options assumed. |
|
(3) |
Reflects the estimated fair value of in-process research and
development. This charge is non-recurring and as such is not
reflected in the unaudited pro forma condensed combined
statement of operations. |
A preliminary estimate of $94.5 million has been allocated
to net tangible assets acquired and $81.6 million has been
allocated to identifiable intangible assets acquired. The
depreciation and amortization related to the fair value
adjustment to net tangible assets and the amortization related
to the identifiable intangible assets are reflected as pro forma
adjustments to the unaudited pro forma condensed combined
statements of operations.
Identifiable intangible assets. Of the total estimated
purchase price, $81.6 million has been allocated to
completed and core technology, trademarks and trade names and
customer relationships and contracts. Recording the identifiable
intangible assets results in the initial establishment of a
deferred tax liability of approximately $29 million, which
has been offset by a corresponding reduction in Brooks
valuation allowance on its deferred tax assets. These
adjustments are preliminary and are based on Brooks
managements estimates. The amount ultimately allocated to
identifiable intangible assets may differ materially from this
preliminary allocation. A $5.0 million increase or decrease
in value allocated to the amortizable intangible assets would
increase or decrease annual amortization by approximately
$800,000.
96
Notes to Unaudited Pro Forma Condensed Combined Financial
Statements (Continued)
Identification and allocation of value to the identified
intangible assets was based on the provisions of
SFAS No. 141. The fair value of the identified
intangible assets was estimated by performing a discounted cash
flow analysis using the income approach. This method includes a
forecast of direct revenues and costs associated with the
respective intangible assets and charges for economic returns on
tangible and intangible assets utilized in cash flow generation.
Net cash flows attributable to the identified intangible assets
are discounted to their present value at a rate commensurate
with the perceived risk. The projected cash flow assumptions
considered contractual relationships, customer attrition,
eventual development of new technologies and market competition.
Amounts allocated to the identifiable intangible assets are
expected to be amortized over a life of seven years. The
estimates of expected useful lives are based on guidance from
SFAS No. 141 and take into consideration the effects
of competition, product lives and possible obsolescence. The
useful lives of developed technology, and trademarks and trade
names are based on the number of years in which net cash flows
have been projected. The useful lives of customer relationships
was estimated based upon Helixs established and
long-standing customer relationships with its major customers
and the number of years in which net cash flows have been
projected.
Assumptions used in forecasting cash flows for each of the
identified intangible assets included consideration of the
following:
|
|
|
|
|
Helix historical operating margins |
|
|
|
Helix market share and growth |
|
|
|
Trends in technology |
|
|
|
The nature and expected timing of new product introductions by
Helix and its competitors. |
Goodwill. Of the total estimated purchase price,
approximately $281.6 million has been allocated to
goodwill. Goodwill represents the excess of the purchase price
over the fair value of the underlying net tangible and
intangible assets. In accordance with SFAS No. 142,
goodwill resulting from business combinations will not be
amortized but instead will be tested for impairment at least
annually (more frequently if certain indicators are present). In
the event the management of the combined company determines that
the value of goodwill has become impaired, the combined company
will incur an accounting charge for the amount of impairment
during the fiscal quarter as of which the determination is made.
A comprehensive overview of Helixs business was conducted
to identify all intangible assets that meet the criteria for
recognition as an asset apart from goodwill as proscribed in
SFAS No. 141. Each identified intangible asset was
valued using an appropriate methodology that recognized its
overall contribution to the enterprise, along with its remaining
economic life. Goodwill was calculated on a residual basis
considering the overall purchase price less the fair value of
the working capital, tangible, and identified intangible assets.
This residual goodwill calculation represents the acquired going
concern value of the enterprise, including the expected
synergies and other intrinsic benefits of the merger associated
with the enhanced strategic and market position of the combined
company.
Net deferred tax assets and liabilities. The net current
deferred tax assets and the deferred tax liabilities reflect the
estimated tax effect related to the differences between the book
value of assets and liabilities for financial statement purposes
and their basis for tax purposes under purchase accounting. A
valuation allowance must be established if it is more likely
than not that deferred tax assets will not be realized. Due to
the continuing uncertainty in the semiconductor sector,
management has determined that it is more likely than not that
the deferred tax assets will not be realized and continues to
carry a full valuation allowance. As a result, the unaudited pro
forma condensed combined financial statements present, as a
component of the tax pro forma adjustments, an elimination of
Helixs historical reversal of deferred tax valuation
allowance of approximately $8.5 million and
$4.3 million in the year ended
97
Notes to Unaudited Pro Forma Condensed Combined Financial
Statements (Continued)
September 30, 2004 and the nine months ended June 30,
2005, respectively. This determination is preliminary and
subject to change based upon managements final valuation
of the fair values of assets acquired. During the fourth fiscal
quarter of 2004, Helix recorded a $4.5 million tax benefit
related to a settlement with the IRS concerning the IRS
examination of Helixs fiscal 1997 through 2002 income tax
returns. Due to the different fiscal period ends of Helix and
Brooks, this benefit is included as a component of income tax
benefit in Helixs historical statements of operations, as
presented in the pro forma statements of operations, in both the
year ended September 30, 2004 and the nine months ended
June 30, 2005.
In-process research and development. Of the total
estimated purchase price, approximately $400,000 was allocated
to in-process research and development for projects that, as of
the expected closing date of the merger, will not have reached
technological feasibility. Accordingly, $400,000 will be charged
to expense in connection with in-process research and
development in the period during which the merger is completed.
Discontinued operations. The historical and pro forma
statements of operations reflect income from continuing
operations. In June 2005, Brooks signed a definitive purchase
and sale agreement to sell substantially all the assets of its
Specialty Equipment and Life Sciences Division, which had
previously been reported as Brooks Other
reportable segment. Effective June 2005, Brooks historical
statements of operations have been restated to reflect this
business as discontinued operations in accordance with FASB
Statement No. 144 Accounting for the Impairment or
Disposal of Long-lived Assets.
Pro forma adjustments are necessary to reflect the estimated
purchase price, to reflect amounts related to Helixs net
tangible and intangible assets at an amount equal to the
preliminary estimate of their fair values, to reflect the
amortization expense related to the estimated amortizable
intangible assets, to eliminate intercompany balances and
transactions between Brooks and Helix, and to record income tax
adjustments.
The pro forma adjustments included in the unaudited pro forma
condensed combined financial statements are as follows:
|
|
|
(a) To eliminate Helixs historical goodwill |
|
|
(b) To eliminate Helixs historical intangible
assets |
|
|
(c) To eliminate Helixs stockholders
equity accounts |
|
|
(d) To eliminate Helixs historical deferred tax
assets and liabilities |
|
|
(e) To record Brooks estimated direct costs of
the transaction |
|
|
(f) To record Helixs estimated direct costs of
the transaction |
|
|
(g) To record the fair value of Helixs
identifiable intangible assets |
|
|
(h) To record goodwill |
|
|
(i) To record the fair value of Brooks shares
exchanged in the transaction |
|
|
(j) To record the fair value of Helixs stock
options assumed |
|
|
|
|
(k) |
To adjust Helixs inventory to fair value less selling
profit. This adjustment will result in an increase in cost of
revenues upon the sale of the related inventory. This increase
in costs is |
98
Notes to Unaudited Pro Forma Condensed Combined Financial
Statements (Continued)
|
|
|
|
|
non-recurring and accordingly is not reflected in the pro forma
condensed combined statements of operations. |
|
|
|
(l) To eliminate Helixs historical amortization
expense of its amortizable intangible assets |
|
|
|
|
(m) |
To record the estimated fair value of in-process research and
development |
|
|
|
(n) To eliminate intercompany receivables and payables |
|
|
(o) To record amortization of amortizable intangible
assets |
|
|
(p) To eliminate Helixs historical expenses
related to the merger with Brooks |
|
|
|
|
(q) |
To eliminate intercompany sales and related cost of goods sold |
|
|
(r) |
To record deferred stock-based compensation and related
amortization associated with unvested Helix stock options assumed |
|
|
(s) |
To adjust the Helix tax rate to an estimated effective tax rate,
eliminate Helixs historical reversal of a deferred tax
valuation allowance, and to record income tax expense (benefit)
associated with other pro forma adjustments |
|
|
3. |
Deferred Stock-Based Compensation. |
At the effective time of the merger, each outstanding option to
purchase shares of Helix common stock will be assumed by Brooks,
and thereafter each Helix stock option will constitute an option
to acquire Brooks common stock with appropriate adjustments to
exercise price and number of shares. The estimated intrinsic
value of the unvested Helix stock options assumed represents
deferred stock-based compensation of $543,000 and is included in
the allocation of purchase price. This value was calculated as
the difference between the average of the quoted closing market
price of Brooks stock for the period beginning two days
before and ending two days after the merger agreement was
announced and the exercise price of the assumed unvested Helix
stock options. The deferred compensation associated with the
unvested Helix stock options will be amortized over the
remaining vesting period of the stock options.
The pro forma adjustments presented at June 30, 2005 and
for the year ended September 30, 2004 and the nine months
ended June 30, 2005 have been calculated in accordance with
FASB Interpretation No. 44, Accounting for Certain
Transactions Involving Stock Compensation an
Interpretation of APB Opinion No. 25. Effective for
Brooks fiscal year 2006, Brooks will be required to
account for stock based compensation in accordance with FASB
Statement 123(R), Share-Based Payment, which has an
effective adoption date of October 1, 2005. Accordingly,
the fair value of assumed Helix options included as a component
of the purchase price of the merger, the deferred stock-based
compensation included in the allocation of purchase price and
the subsequent amortization thereof may be different from that
presented.
|
|
4. |
Pro Forma Earnings Per Share |
Pro forma basic earnings per share is based on the number of
shares of Brooks common stock used in computing basic earnings
per share and the weighted average number of shares of Helix
common stock outstanding during the period multiplied by the
exchange ratio of 1.11x.
Pro forma diluted earnings per share is based on the number of
shares of Brooks common stock used in computing diluted net
income per share plus the weighted average number of shares of
Helix common stock outstanding during the period multiplied by
the exchange ratio of 1.11x and the potential dilution from
assumed dilutive stock options (using the treasury stock method).
99
DESCRIPTION OF BROOKS CAPITAL STOCK
The following is a summary of the material terms of Brooks
capital stock. Because it is only a summary, it is not meant to
be complete and does not contain all of the information that may
be important to you. Accordingly, for a complete description of
rights and preferences of Brooks capital stock, you should
carefully read the full copies of Brooks certificate of
incorporation and bylaws and applicable provisions of the DGCL.
See the section entitled WHERE YOU CAN FIND MORE
INFORMATION beginning on page 115.
Authorized Capital Stock
Under Brooks certificate of incorporation, the authorized
capital stock of Brooks is 101,000,000 shares, consisting
of 100,000,000 shares of common stock, $0.01 par value
per share, and 1,000,000 shares of preferred stock,
$0.01 par value per share. The authorized shares of Brooks
common stock are designated as Common Stock and
Class A Common Stock. All shares of
Class A Common Stock converted into common stock at the
time of Brooks initial public offering. There are no
shares of Class A Common Stock outstanding, and Brooks
currently has no intention to issue shares of Class A
Common Stock in the future. If Brooks stockholders approve the
proposal to increase Brooks authorized shares of common
stock to 125,000,000, the authorized capital stock of Brooks
would be 126,000,000 shares, consisting of
125,000,000 shares of Common Stock and
1,000,000 shares of preferred stock.
One preferred stock purchase right is attached to each
outstanding share of Brooks common stock and will be attached to
each share of Brooks common stock issued in the merger. The
preferred stock purchase rights are described in more detail
below in the section entitled Rights
Agreement.
Brooks Common Stock
The holders of Brooks common stock are entitled to one vote for
each share held of record on all matters submitted to a vote of
the stockholders and do not have the right to cumulate votes in
elections of directors. Holders of Brooks common stock are
entitled to receive ratably such dividends as may be declared by
the board of directors out of funds legally available therefor.
In the event of liquidation, dissolution or winding up, holders
of common stock are entitled to share ratably in all of
Brooks assets remaining after payment of liabilities and
the liquidation preference of any then outstanding preferred
stock. Holders of Brooks common stock have no preemptive or
other subscription or conversion rights. There are no redemption
or sinking fund provisions applicable to the Brooks common
stock. The transfer agent and registrar for Brooks common stock
is Equiserve Trust Company N.A.
Brooks Preferred Stock
Brooks certificate of incorporation authorizes
Brooks directors to issue up to 1,000,000 shares of
preferred stock without any vote or action by Brooks
stockholders. Brooks board of directors may issue
preferred stock in one or more series and determine the rights,
preferences, privileges and restrictions granted or imposed upon
any series of preferred stock, and the number of shares
constituting each series. The preferred stock that can be
authorized by Brooks board of directors could have
preference over Brooks common stock with respect to dividends
and other distributions and upon Brooks liquidation. In
addition, the voting power of Brooks outstanding common stock
may become diluted in the event that the board of directors
issues preferred stock with voting rights.
Brooks board of directors has designated
101,500 shares of Brooks preferred stock as
Series A Junior Participating Preferred Stock.
There are no shares of Series A Junior Participating
Preferred Stock issued or outstanding. Shares of Series A
Junior Participating Preferred Stock are issuable upon exercise
of stock purchase rights described below. Each share of
Series A Junior Participating Preferred Stock is entitled
to a quarterly dividend payment of 1,000 times the dividend
declared per Brooks common share. In the event of liquidation,
the holders of Series A Junior Participating Preferred
Stock are entitled to an aggregate payment of 1,000 times the
aggregate payment made per Brooks common share. Each share of
100
Series A Junior Participating Preferred Stock will have
1,000 votes, voting together with Brooks common stock. In the
event of any merger, consolidation or other transaction in which
Brooks common stock is exchanged, each share of Series A
Junior Participating Preferred Stock will be entitled to receive
1,000 times the amount received per Brooks common share. These
rights are protected by antidilution provisions.
Options
As of the close of business on September 21, 2005, there
were outstanding options to purchase 5,274,851 shares of
Brooks common stock and 4,265,177 additional shares of Brooks
common stock were reserved for future issuance under
Brooks stock-based employee compensation plans.
Rights Agreement
Brooks is a party to a rights agreement between itself and
EquiServe Trust Company, N.A. Pursuant to this agreement, Brooks
declared a dividend to its stockholders as of August 12,
1997 of the right to purchase 1/1,000 of a share of
Series A Junior Participating Preferred Stock. The
preferred stock purchase rights are attached to the shares of
Brooks common stock until a triggering event occurs. The
preferred stock purchase rights are triggered by the acquisition
by a person or group, an acquiring person as defined
in the rights agreement, other than Brooks or any of
Brooks subsidiaries or employee benefit plans, of 15% or
more of the outstanding shares of Brooks common stock. In such
event, the holder of a preferred stock purchase right paying the
exercise price would be able to purchase, instead of a fraction
of a share of Series A Junior Participating Preferred
Stock, a number of shares of Brooks common stock having a market
value equal to twice the exercise price. In the event of
specified mergers and similar transactions involving Brooks,
shares of the other party to the transaction or its parent could
be purchased at half of the market price of such shares by the
holders of the preferred stock purchase rights. The preferred
stock purchase rights are redeemable in whole, but not in part,
by Brooks for $0.001 per right and expire July 31,
2007. Subject to restrictions, the preferred stock purchase
rights may be exchanged for one share of Brooks common stock
upon election by Brooks board of directors. An
acquiring person would not be permitted to exercise
a preferred stock purchase right. The intended effect of the
rights agreement is to deter any person or group from becoming
an acquiring person without negotiating the
acquisition with Brooks board of directors.
Anti-Takeover Effects of Provisions of Brooks
Certificate of Incorporation, Bylaws, Stockholder Rights Plan,
Indenture and Delaware Law
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Certificate of Incorporation and Bylaws |
Brooks certificate of incorporation provides that
Brooks board of directors may issue, without stockholder
action, shares of preferred stock with voting or other rights
senior to the rights of Brooks common stock. The rights of
holders of Brooks common stock may be subject to, and may be
adversely affected by, the rights of holders of any preferred
stock that may be issued in the future. The issuance of
preferred stock may have the effect of delaying, deterring or
preventing a change of control of Brooks without further action
by holders of Brooks common stock and may adversely affect the
voting and other rights of holders of Brooks common stock.
Brooks certificate of incorporation also provides that
stockholder action can be taken only at an annual or special
meeting of stockholders and may not be taken by written consent
in lieu of a meeting. This precludes stockholders from waging a
proxy contest by written action. Moreover, Brooks bylaws
provide that special meetings of stockholders, unless otherwise
required by law, may be called only by the president or the
board of directors. The combination of precluding stockholder
actions by written consent and limiting the persons who may call
a special meeting decreases the likelihood that stockholders can
wage a proxy contest except in connection with the annual
meeting of stockholders.
Brooks certificate of incorporation also provides that any
vote required by stockholders pursuant to the DGCL, other than
the election of directors, will be effective upon the vote of a
majority of each class outstanding, if recommended by a majority
of continuing directors or, if not so recommended, eighty
101
percent of each class of stock outstanding. In addition,
vacancies and newly created directorships resulting from any
increase in the size of Brooks board of directors may be
filled only by the affirmative vote of a majority of the
directors then in office, even if less than a quorum is present.
These provisions could hinder stockholders in attempts to remove
incumbent directors and fill the resulting vacancies with their
own nominees.
These and other provisions may have the effect of deterring
hostile takeovers or delaying changes in control of Brooks and
could have the effect of discouraging others from making tender
offers for Brooks shares or other acquisitions of Brooks.
Consequently, they also may inhibit fluctuations in the market
price of Brooks shares that could result from actual or rumored
takeover attempts.
Brooks rights agreement is designed to protect and
maximize the value of Brooks outstanding equity interests
in the event of an unsolicited attempt to acquire Brooks in a
manner or on terms not approved by the board of directors and
that prevent stockholders from realizing the full value of their
shares of Brooks common stock. Its purposes are to deter those
takeover attempts that the board believes are undesirable, to
give the board more time to evaluate takeover proposals and
consider alternatives, and to increase the boards
negotiating position to maximize value in the event of a
takeover. The rights issued pursuant to the plan are not
intended to prevent all takeovers of Brooks.
However, the rights may have the effect of rendering more
difficult or discouraging an acquisition of Brooks. The rights
may cause substantial dilution to a person or group that
attempts to acquire Brooks on terms or in a manner not approved
by the board of directors, except pursuant to an offer
conditioned upon the negation, purchase or redemption of the
rights with respect to which the condition is satisfied.
Brooks has issued 4.75% convertible subordinated notes with
an aggregate principal amount of $175.0 million. The terms
of these notes are largely governed by an indenture. The
indenture provides that upon a change of control of Brooks, as
defined in the indenture, Brooks is required to purchase the
outstanding notes of holders who elect to have their notes
repurchased at their face amount plus accrued interest. This
significant pre-payment that may be required upon a change of
control of Brooks may discourage an acquisition of Brooks. The
transactions contemplated by the merger agreement between
Brooks, Helix and Mt. Hood will not constitute a change of
control under the terms of the indenture.
Brooks is subject to the provisions of Section 203 of the
DGCL. In general, the statute prohibits a publicly held Delaware
corporation from engaging in a business combination
with an interested stockholder who was not an
interested stockholder before Brooks became a publicly held
corporation, for a period of three years after the date that the
person became an interested stockholder, which is referred to in
this joint proxy statement/ prospectus as the interested
date, unless, subject to certain exceptions, the business
combination or the transaction in which the person became an
interested stockholder is approved by the board of directors
prior to the interested date or the business combination is
approved after the interested date by the board and the holders
of two-thirds of the corporations outstanding voting
shares, excluding any shares held by the interested stockholder,
at an annual or special meeting. Generally, a business
combination includes a merger, certain asset or stock
sales or other transactions resulting in a financial benefit to
the interested stockholder. Generally, an interested
stockholder is a person who, together with affiliates and
associates, owns, or within three years prior did own, 15% or
more of the corporations voting stock. These provisions
may have the effect of delaying, deferring or preventing a
change in control of Brooks, including proposed transactions in
which holders of Brooks common stock would receive a premium to
the market price of the stock in exchange for their shares.
102
COMPARISON OF RIGHTS OF STOCKHOLDERS
Brooks and Helix are Delaware corporations, both subject to the
provisions of the DGCL. Any differences in the rights of holders
of Brooks capital stock and Helix capital stock arise primarily
from differences between the companies certificates of
incorporation and bylaws and the results or effects of these
differences under the DGCL. Helix stockholders will continue to
be governed by the DGCL both before and after the merger, but
following the merger, the rights of Helix stockholders will be
governed by the certificate of incorporation and bylaws of
Brooks instead of the certificate of incorporation and bylaws of
Helix.
Set forth below is a summary comparison of the rights Helix
stockholders currently have under Helixs certificate of
incorporation and bylaws and the rights Helix stockholders would
have following the merger under Brooks certificate of
incorporation and bylaws. This section does not include a
complete description of all differences between the rights of
Brooks and Helix stockholders, nor does it include a complete
description of the specific rights of these stockholders. In
addition, the identification of some of the differences in the
rights of Brooks stockholders and Helix stockholders as material
is not intended to indicate that other equally important
differences do not exist. Helix stockholders should also
carefully read the DGCL, as well as the certificate of
incorporation and bylaws of Brooks and the certificate of
incorporation and bylaws of Helix. The certificate of
incorporation and bylaws of Brooks are filed or incorporated by
reference as exhibits to the Registration Statement on
Form S-4 of which this joint proxy statement/ prospectus
forms a part. The Helix certificate of incorporation and bylaws
are filed, or incorporated by reference, as exhibits to
Helixs annual report on Form 10-K for the fiscal year
ended December 31, 2004. See the section entitled
WHERE YOU CAN FIND MORE INFORMATION beginning on
page 115. The discussion above and below is qualified in
its entirety by reference to the foregoing documents. For
additional information regarding specific rights of Brooks
capital stock, see the section entitled DESCRIPTION OF
BROOKS CAPITAL STOCK beginning on page 100.
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Brooks Stockholder Rights |
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Helix Stockholder Rights |
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General:
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The rights of Brooks stockholders are governed by Delaware law
and Brooks certificate of incorporation and bylaws. |
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The rights of Helix stockholders are governed by Delaware law
and Helixs certificate of incorporation and bylaws. |
Class of Common Stock:
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Brooks has two classes of common stock authorized, Common Stock
and Class A Common Stock, and one class of common stock
outstanding, Common Stock. |
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Helix has only one class of common stock authorized and
outstanding. |
Preferred Stock:
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Brooks has undesignated preferred stock and Series A Junior
Participating Preferred Stock authorized. The Series A
Junior Participating Preferred Stock is issuable upon exercise
of outstanding stock purchase rights. |
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Helix has undesignated preferred stock authorized and no
preferred stock outstanding or issuable upon exercise of stock
purchase rights. |
Authorized Capital Stock:
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101,000,000 shares of stock (126,000,000 shares of
stock if Brooks stockholders approve Brooks Proposal Number
Two), of which 100,000,000 shares (125,000,000 shares
of stock if Brooks stockholders approve Brooks Proposal Number
Two) are designated as common stock |
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62,000,000 shares of stock, of which 60,000,000 shares
are designated as common stock and 2,000,000 shares are
designated as preferred stock. |
103
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Brooks Stockholder Rights |
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Helix Stockholder Rights |
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and 1,000,000 shares are designated as preferred stock. |
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Number and Election of Directors:
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Brooks bylaws provide that the board of directors
determines the number of directors before each annual or special
meeting of the stockholders. Currently, the number of directors
is seven. Following the merger, there will be ten directors and
one non-voting director emeritus. Three of the directors
and the non-voting director emeritus will be selected by
Helix from current members of Helixs board of directors
and seven directors will be the current directors of Brooks. |
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Helixs bylaws provide that the number of directors will
not be less than three or more than 15 as shall be determined by
the board. Currently, the number of directors is eight. |
Removal of Directors:
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Under Brooks bylaws, a director may be removed from office
only for cause by a vote of the holders of at least 80% of the
voting stock outstanding or by a vote of a majority of the
directors then in office, and only after reasonable notice and
opportunity to be heard from the body proposing to remove the
director.1 |
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Under Helixs bylaws, a director may be removed with or
without cause by a majority of the stockholders of the
outstanding shares entitled to vote. |
Board Vacancies:
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Under Brooks bylaws, vacancies on the board may be filled
by a majority of directors, whether or not constituting a
quorum. A director elected to fill a vacancy serves until the
election of his successor. |
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Under Helixs bylaws, vacancies on the board are filled by
either the stockholders at any meeting of the stockholders, the
board of directors at any meeting of the board of directors at
which a quorum is present or by a majority of the directors then
in office whether or not constituting a quorum. A director
elected to fill a vacancy serves until a successor is duly
elected and qualified. |
Special Meetings:
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Brooks bylaws provide that a special meeting of the
stockholders may be called only by the president or the board of
directors. |
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Helixs bylaws provide that a special meeting of the
stockholders may be called by the president or by the board of
directors and will be so called at the written request of the
registered holders of 20% or more of the stock of the
corporation then outstanding and entitled to vote, which request
must state the object of the meeting. |
Notice of Stockholder Meetings:
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Brooks bylaws require that written notice of meetings of
stockholders, stating the place, |
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Helixs bylaws require that written notice stating the time
and place of the meeting be |
104
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Brooks Stockholder Rights |
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Helix Stockholder Rights |
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date and hour, generally be given no less than ten or more than
60 days before the meeting to each stockholder entitled to
vote at the meeting or entitled to notice of the meeting. |
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given at least ten days before the meeting to each stockholder
entitled to vote at the meeting. The DGCL provides that notice
of a stockholder meeting may not be given more than 60 days
before the meeting. |
Record Date:
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Brooks bylaws provide that the record date must be no more
than 60 days before the meeting. |
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The Helix bylaws provide that a record date may not be more than
50 days prior to the date of the corporate action to which
it relates. |
Stockholder Action by Written Consent:
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Brooks certificate of incorporation and bylaws provide
that the stockholders cannot act by written consent. |
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Helixs bylaws provide that a meeting may be dispensed with
if all of the stockholders who would have been entitled to vote
consent to such action, which consent in writing will have the
same force and effect as a vote taken at a meeting of the
stockholders.2 |
Amendment of Bylaws:
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Brooks certificate of incorporation and bylaws provide
that the bylaws may be amended by a majority of the board of
directors, except that the directors may not amend the bylaws in
a manner which changes the stockholder voting requirements for
any action, alters or abolishes any preferential right or rights
of redemption applicable to a class of stock with shares
outstanding, alters the amendment provision of the bylaws, or
permits the board of directors to take any action which under
the DGCL, the certificate of incorporation or the bylaws is
required to be taken by the stockholders. The bylaws may also be
amended by holders of a majority of all shares outstanding and
entitled to vote, except that where the effect of the amendment
would be to reduce any voting requirement otherwise required by
the DGCL, the certificate of incorporation or another provision
of the bylaws, such amendment requires the vote that would have
been required by the DGCL, the certificate of incorporation or
the bylaws. |
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Helixs bylaws provide that the bylaws may be amended by
the board of directors or by the stockholders. |
105
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Brooks Stockholder Rights |
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Helix Stockholder Rights |
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State Anti-Takeover Statute:
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Brooks is subject to Section 203 of the DGCL. |
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Helix is subject to Section 203 of the DGCL. |
Rights Agreement:
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Brooks is a party to a rights agreement that generally would be
triggered if a person beneficially acquires 15% or more of
Brooks common stock. |
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Helix is not a party to a rights agreement. |
Fiscal Year:
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Brooks bylaws specify that Brooks fiscal year ends
on September 30 of each year. |
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Helixs bylaws specify that Helixs fiscal year end is
determined by Helixs board of directors. Currently,
Helixs fiscal year ends on December 31 of each year. |
Limitation of Liability of Directors and Officers:
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Brooks certificate of incorporation provides that
Brooks directors have no personal liability to either
Brooks or its stockholders for monetary damages for breach of
fiduciary duty as a director, except for liability (1) for
breach of the directors duty of loyalty to Brooks and its
stockholders, (2) for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of the law, (3) under Section 174 of DGCL or (4) for
any transaction from which the director derived an improper
personal benefit. |
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Helixs certificate of incorporation provides that
Helixs directors are not personally liable to Helix or its
stockholders for monetary damages for breach of fiduciary duty
as a director, except for liability(1) for any breach of
the directors duty of loyalty to Helix or its
stockholders, (2) for acts or omissions not in good faith
or which involve intentional misconduct or a knowing violation
of law, (3) under Section 174 of the DGCL, or
(4) for any transaction from which the director derived an
improper personal benefit. The merger agreement requires that
Brooks maintain these provisions in full force and effect until
the sixth anniversary of the date on which the effective time of
the merger occurs. |
Indemnification of Directors and Officers:
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Brooks certificate of incorporation and bylaws provide
that Brooks may indemnify present and former directors and
officers to the fullest extent of the law. Brooks bylaws
also permit expenses to be advanced to indemnified persons in
advance of a final disposition of proceedings against them if
they undertake to repay the amounts advanced if there is a final
determination that indemnification is not permitted. |
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Helixs bylaws require indemnification of present and
former directors and officers if the director or officer acted
in good faith and in a manner he or she reasonably believed to
be in or not opposed to the best interest of Helix and, with
respect to any criminal proceeding, had no reasonable cause to
believe his or her conduct was unlawful. Helixs bylaws
also require that expenses be advanced to indemnified persons in
advance of a final disposition of proceedings against them if
the person undertakes to repay the amounts advanced if |
106
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Brooks Stockholder Rights |
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Helix Stockholder Rights |
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there is a final determination that indemnification is not
permitted. The merger agreement requires that Brooks maintain
these provisions in full force and effect until the sixth
anniversary of the date on which the effective time of the
merger occurs. |
Anti-Greenmail Provision:
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Brooks certificate of incorporation provides that Brooks
may not repurchase voting stock from a person or group who has
beneficially owned more than 5% of Brooks outstanding
voting stock for less than two years at a price in excess of the
fair market value of that stock unless the repurchase is
approved by holders of two- thirds of Brooks outstanding
voting stock (other than stock held by the person or group from
which the voting stock is proposed to be repurchased). |
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Helixs certificate of incorporation does not contain a
provision specifically targeted at greenmail. |
Special Stockholder Voting Requirements:
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Brooks certificate of incorporation provides that except
as otherwise provided in Brooks certificate of
incorporation, bylaws and any certificate of designations, any
vote required by stockholders pursuant to the DGCL, other than
the election of directors (which is not affected by this
provision), is effective if recommended by a majority of the
Continuing Directors (as defined in Brooks
certificate of incorporation) and the vote of a majority of each
class of stock outstanding and entitled to vote thereon; and if
not recommended by a majority of the Continuing Directors, then
by the vote of 80% of each class of stock outstanding and
entitled to vote thereon. |
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The Helix certificate of incorporation does not contain an
analogous voting requirement provision. |
1 Under
Section 141 of the DGCL, unless the board of directors of a
corporation is classified or requires cumulative voting for
directors, any director or the entire board of directors may be
removed, with or without cause, by the holders of a majority of
the shares then entitled to vote at an election of directors.
2 Under
Section 228 of the DGCL, unless otherwise provided in a
corporations certificate of incorporation, any action
required by the DGCL to be taken, or any action which may be
taken, at any annual or special meeting of stockholders of a
corporation may be taken without a meeting, without prior notice
and without a vote if a consent or consents in writing, setting
forth the action so taken, is signed by the holders of
outstanding stock having not less than the minimum number of
votes that would be necessary to authorize or take such action
at a meeting at which all shares entitled to vote thereon were
present and voted.
107
BROOKS STOCKHOLDERS ONLY BROOKS
PROPOSAL NUMBER TWO:
AMENDMENT TO BROOKS CERTIFICATE OF INCORPORATION
Purpose and Effect of Amendment to Brooks Certificate
of Incorporation
Brooks certificate of incorporation currently permits
Brooks to issue up to 100,000,000 shares of common stock.
On July 8, 2005, Brooks board of directors
unanimously approved an amendment to Brooks certificate of
incorporation to permit Brooks to issue up to
125,000,000 shares of common stock. The text of the
proposed amendment is set forth below.
As of September 21, 2005, 45,431,784 shares of Brooks
common stock were issued and outstanding. Thus, as of that date,
54,568,216 authorized shares of common stock remained available
for issuance, including an aggregate of 12,032,954 shares
reserved for issuance under Brooks equity incentive plans,
warrants and other convertible securities. In connection with
the merger, based on the number of shares of Helix common stock
and options to purchase Helix common stock outstanding as of
September 21, 2005, Brooks would be obligated to issue
approximately 29,016,209 shares of common stock and reserve
an additional 779,914 shares of Brooks common for issuance
upon the exercise of Helix options assumed in the merger.
Therefore, if the merger is consummated but the proposal to
amend the certificate of incorporation is not approved, Brooks
would only have approximately 12,739,139 authorized shares of
common stock that are not already issued or reserved for
issuance pursuant to Brooks equity incentive plans,
warrants and convertible securities as of September 21,
2005.
Although Brooks has sufficient authorized but unissued shares of
common stock to complete the merger, and thus the authorization
of these additional shares of common stock are not required to
complete the acquisition of Helix, the issuance of shares of
Brooks common stock to former holders of Helix common stock in
the merger will utilize a significant portion of Brooks
current authorized but unissued shares of common stock.
Brooks board of directors would like to increase the
number of authorized shares of Brooks common stock to provide
Brooks with flexibility to issue its shares in connection with
possible future actions, such as stock splits, stock dividends,
financings, corporate mergers, acquisitions, use in employee
benefit plans or other corporate purposes. As of the date of
this joint proxy statement/ prospectus, Brooks has no agreements
or commitments with respect to the sale or issuance of such
additional shares of common stock except in connection with its
equity incentive plans and the merger agreement with Helix.
The availability of additional authorized shares would allow
Brooks to accomplish its goals, and other business and financial
objectives in the future without stockholder approval, except as
may be required in particular cases by Brooks certificate
of incorporation or bylaws, applicable law or the rules of any
stock exchange or other system on which Brooks securities
may then be traded or listed. In addition to the more
traditional uses described above, Brooks could issue shares of
its common stock as a defense against efforts to obtain control
of Brooks. Brooks board of directors does not intend or
view the increase in authorized shares of Brooks common stock as
an anti-takeover measure, nor is Brooks aware of any proposed or
contemplated transaction of this type.
If this Brooks Proposal Number Two is approved, the newly
authorized shares of Brooks common stock would have the same
rights as the presently authorized shares, including the right
to cast one vote per share. Although the authorization of
additional shares of Brooks common stock would not, in itself,
have any effect on the rights of any holder of Brooks common
stock, the future issuance of additional shares of common stock,
other than a stock split or dividend, would have the effect of
diluting the voting rights and could have the effect of diluting
earnings per share and book value per share of existing
stockholders.
If approved, the first paragraph of Article Fourth of
Brooks certificate of incorporation would be deleted in
its entirety and replaced with the following:
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The total number of shares of all classes of stock which
the Corporation shall have authority to issue is
(i) 125,000,000 shares of Common Stock, $.01 par
value per share (the Common Stock), and
(ii) 1,000,000 shares of Preferred Stock,
$.01 par value per share (the Preferred Stock). |
108
Brooks board of directors considers the proposed increase
in the amount of authorized shares of Brooks common stock to be
advisable.
Vote Required
The amendment to Brooks certificate of incorporation must
be approved by the affirmative vote of a majority of the shares
of Brooks common stock outstanding on September 21, 2005,
the record date for the Brooks special meeting.
The Brooks merger proposal is not conditioned on the proposal to
amend Brooks certificate of incorporation to increase the
authorized shares of Brooks common stock; however, the proposal
to amend Brooks certificate of incorporation is
conditioned on the consummation of the merger. Accordingly, if
the Brooks merger proposal is not approved or the merger is not
consummated for any other reason, Brooks will not amend its
certificate of incorporation as set forth in this Brooks
Proposal Number Two, even if approved by Brooks
stockholders.
Recommendation of the Board of Directors
Brooks board of directors considers the proposed increase
in the amount of authorized shares of Brooks common stock to be
advisable and has unanimously approved the proposal to amend
Brooks certificate of incorporation to increase the amount
of authorized shares of common stock.
Brooks board of directors recommends that Brooks
stockholders vote FOR the approval of the
proposal to amend Brooks certificate of incorporation to
increase the amount of authorized shares of Brooks common stock.
109
BROOKS STOCKHOLDERS ONLY BROOKS
PROPOSAL NUMBER THREE:
POSSIBLE ADJOURNMENT OF THE BROOKS SPECIAL MEETING
If this Proposal Number Three is approved, the Brooks
special meeting may be adjourned or postponed by Brooks
board of directors or its chairman, in its or his discretion, if
necessary for further solicitation of proxies if there are not
sufficient votes at the originally scheduled time of the Brooks
special meeting to approve either of the other Brooks proposals.
The affirmative vote of the holders of a majority of the votes
properly cast on the proposal by holders of Brooks common stock
is required to approve this proposal.
Brooks board of directors recommends that Brooks
stockholders vote FOR the approval of the
proposal to permit Brooks board of directors or its
chairman, in its or his discretion, to adjourn or postpone the
Brooks special meeting.
110
HELIX STOCKHOLDERS ONLY HELIX
PROPOSAL NUMBER TWO:
POSSIBLE ADJOURNMENT OF THE HELIX SPECIAL MEETING
If this Proposal Number Two is approved, the Helix special
meeting may be adjourned or postponed by Helixs board of
directors or its chairman, in its or his discretion, if
necessary for further solicitation of proxies if there are not
sufficient votes at the originally scheduled time of the Helix
special meeting to approve the Helix merger proposal.
The affirmative vote of the holders of a majority of the shares
of Helix common stock present at the Helix special meeting in
person or by proxy and entitled to vote on the proposal is
required to approve this proposal.
Helixs board of directors recommends that Helix
stockholders vote FOR the approval of the
proposal to permit Helixs board of directors or its
chairman, in its or his discretion, to adjourn or postpone the
Helix special meeting.
111
LEGAL MATTERS
The validity of the shares of Brooks common stock to be issued
in the merger will be passed on for Brooks by Thomas S.
Grilk, Esq., General Counsel to Brooks. Certain federal
income tax consequences of the merger will be passed on for
Brooks by Ropes & Gray LLP and for Helix by
Palmer & Dodge LLP.
EXPERTS
The financial statements as of September 30, 2004 and 2003
and for each of the three years in the period ended
September 30, 2004 of Brooks Automation, Inc. incorporated
in this joint proxy statement/ prospectus by reference to the
Current Report on Form 8-K dated August 24, 2005 of
Brooks Automation, Inc. have been so incorporated by reference
in reliance on the report of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the
authority of said firm as experts in auditing and accounting.
The financial statements and managements assessment of the
effectiveness of internal control over financial reporting,
which is included in Managements Report on Internal
Control over Financial Reporting, of Helix Technology
Corporation incorporated in this joint proxy statement/
prospectus by reference to the Annual Report on Form 10-K
of Helix Technology Corporation for the year ended
December 31, 2004 have been so incorporated in reliance on
the report of PricewaterhouseCoopers LLP, an independent
registered public accounting firm, given on the authority of
said firm as experts in auditing and accounting.
112
SUBMISSION OF FUTURE STOCKHOLDER PROPOSALS
Pursuant to Rule 14a-8 under the Exchange Act, stockholders
may present proper proposals for inclusion in a companys
proxy statement and for consideration at the next annual meeting
of its stockholders by submitting their proposals to the company
in a timely manner.
Brooks. Brooks anticipates that the 2006 annual meeting
will be held in February 2006. Proposals which stockholders
intend to present at Brooks 2006 annual meeting of
stockholders and wish to have included in Brooks proxy
materials pursuant to Rule 14a-8 promulgated under the
Securities Exchange Act of 1934 must have been received by
Brooks no later than September 12, 2005. If a proponent
fails to notify Brooks by November 26, 2005 of a
non-Rule 14a-8 stockholder proposal which it intends to
submit at the Brooks 2006 annual meeting of stockholders,
the proxy solicited by Brooks board of directors with
respect to such meeting may grant discretionary authority to the
person named in each proxy to vote with respect to such matter.
Brooks stockholders may make recommendations to Brooks
Nominating and Governance Committee of candidates for its
consideration as nominees for director at the Brooks 2006
annual meeting of stockholders by submitting the name and
qualifications of such person(s) to Brooks Nominating and
Governance Committee, c/o Board of Directors, Brooks
Automation, Inc. at Brooks principal executive offices, 15
Elizabeth Drive, Chelmsford, Massachusetts 01824.
Recommendations must have been submitted not later than
September 12, 2005. Any persons recommended should at a
minimum meet the criteria and qualifications referred to in
Brooks Nominating and Governance Committees charter.
The letter of recommendation from one or more stockholders
should state whether or not the person(s) making the
recommendation have beneficially owned 5% or more of Brooks
common stock for at least one year.
Helix. Helix intends to hold its annual meeting at its
regularly-scheduled time if the merger has not been consummated
by that date. Helix must receive any stockholder proposal
intended to be included in Helixs proxy materials for the
2006 annual meeting of Helix stockholders no later than
January 6, 2006. Helix must receive any stockholder
proposal intended to be presented at such meeting in 2006 no
later than March 22, 2006. Any proposal received after
March 22, 2006, will be untimely and Helixs
management proxies will be permitted to use their discretionary
voting authority when the proposal is raised at the 2006 annual
meeting, without having advised stockholders of the proposal in
the proxy statement for that meeting.
113
HOUSEHOLDING OF PROXY MATERIALS
SEC rules permit companies and intermediaries such as brokers to
satisfy delivery requirements for proxy statements with respect
to two or more stockholders sharing the same address by
delivering a single proxy statement addressed to those
stockholders. This process, which is commonly referred to as
householding, potentially provides extra convenience
for stockholders and cost savings for companies. Brooks, Helix
and some brokers household proxy materials, delivering a single
proxy statement to multiple stockholders sharing an address
unless contrary instructions have been received from the
affected stockholders. Once you have received notice from
Brooks, Helix or your broker that they will be householding
materials to your address, householding will continue until you
are notified otherwise or until you revoke your consent. If, at
any time, you no longer wish to participate in householding and
would prefer to receive a separate proxy statement, or if you
are receiving multiple copies of the proxy statement and wish to
receive only one, please notify your broker if your shares are
held in a brokerage account or Brooks or Helix, as applicable,
if you hold registered shares. You can also request prompt
delivery of a copy of this joint proxy statement/ prospectus.
See the section entitled WHERE YOU CAN FIND MORE
INFORMATION beginning on page 115 for the appropriate
contact information for Brooks and Helix.
114
WHERE YOU CAN FIND MORE INFORMATION
Brooks and Helix file annual, quarterly and current reports,
proxy statements and other information with the SEC. You may
read and copy materials that Brooks and Helix have filed with
the SEC at the SECs public reference room at 100 F Street,
N.E., Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the
public reference room.
Brooks and Helixs SEC filings are also available to
the public on the SECs Internet website at www.sec.gov
which contains reports, proxy and information statements and
other information regarding companies that file electronically
with the SEC. In addition, Brooks SEC filings are also
available to the public on Brooks website,
www.brooks.com, and Helixs filings with the SEC are
also available to the public on Helixs website,
www.helixtechnology.com. Information contained on
Brooks website and Helixs website is not
incorporated by reference into this joint proxy statement/
prospectus, and you should not consider information contained on
those websites as part of this joint proxy statement/ prospectus.
This joint proxy statement/ prospectus is part of a registration
statement on Form S-4 that Brooks filed with the SEC to
register the shares of Brooks common stock to be issued to
holders of Helix common stock in the merger. The registration
statement contains more information than this joint proxy
statement/ prospectus regarding Brooks, Brooks common stock,
Helix and the merger, including certain exhibits. You can obtain
a copy of the registration statement from the SEC at the address
listed above or from the SECs website.
We incorporate by reference into this joint proxy statement/
prospectus the documents listed below and any future filings
Brooks or Helix makes with the SEC under Sections 13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934,
including any filings after the date of the initial registration
statement and prior to the later of the special meetings;
provided, however, we are not incorporating any information
furnished under Item 7.01 or Item 2.02 of any Current
Report on Form 8-K. The information incorporated by
reference is an important part of this joint proxy statement/
prospectus. Any statement in a document incorporated by
reference into this joint proxy statement/ prospectus will be
deemed to be modified or superseded for purposes of this joint
proxy statement/ prospectus to the extent a statement contained
in this or any other subsequently filed document that is
incorporated by reference into this joint proxy statement/
prospectus modifies or supersedes such statement. Any statement
so modified or superseded will be not deemed, except as so
modified or superseded, to constitute a part of this joint proxy
statement/ prospectus.
Brooks SEC Filings
|
|
|
|
|
Annual Report on Form 10-K for the year ended
September 30, 2004 |
|
|
|
Proxy statement on Schedule 14A filed with the SEC on
January 6, 2005 |
|
|
|
Quarterly Reports on Form 10-Q for the quarters ended
December 31, 2004, March 31, 2005 and June 30,
2005 |
|
|
|
Current Reports on Form 8-K filed with the SEC on
December 28, 2004, February 23, 2005, April 29,
2005, July 11, 2005 and August 24, 2005 |
|
|
|
Description of Brooks common stock as set forth in the
Registration Statement on Form 8-A filed on
January 27, 1995, including any amendments or reports filed
with the SEC for the purpose of updating such description |
|
|
|
Description of Brooks preferred stock purchase rights as
set forth in the Registration Statement on Form 8-A filed
on August 7, 1997, including any amendments or reports
filed with the SEC for the purpose of updating such description |
Brooks has supplied all information contained or incorporated by
reference into this joint proxy statement/ prospectus relating
to Brooks and its respective affiliates.
115
You can obtain a copy of any of the above-referenced documents
incorporated by reference into this joint proxy statement/
prospectus except for the exhibits to those documents from
Brooks. You may also obtain these documents from the SEC or
through the SECs website described above. Documents
incorporated by reference are available from Brooks without
charge, excluding all exhibits unless specifically incorporated
by reference as an exhibit into this joint proxy statement/
prospectus. You may obtain documents incorporated by reference
into this joint proxy statement/ prospectus by requesting them
in writing or by telephone from Brooks or D.F. King &
Co., Inc., Brooks proxy solicitor, at the following
addresses and telephone numbers:
Investor Relations
Brooks Automation, Inc.
15 Elizabeth Drive
Chelmsford, Massachusetts 01824
(978) 262-2400
or
D.F. King & Co., Inc.
48 Wall Street
New York, NY 10005
(800) 549-6746 (toll free)
(212) 269-5550 (call collect)
If you would like to request documents, please do so by
October 19, 2005, to receive them before the Brooks special
meeting. If you request any of these documents from Brooks,
Brooks will mail them to you by first-class mail or similar
means.
You should rely only on the information contained or
incorporated by reference into this joint proxy statement/
prospectus in voting your shares at the Brooks special meeting.
Brooks has not authorized anyone to provide you with information
that is different from what is contained in this joint proxy
statement/ prospectus. This joint proxy statement/ prospectus is
dated
[ ],
2005. You should not assume that the information contained in
this joint proxy statement/ prospectus is accurate as of any
other date, and neither the mailing of this joint proxy
statement/ prospectus to Brooks stockholders nor the
issuance of shares of Brooks common stock in the merger will
create any implication to the contrary.
Helix SEC Filings
|
|
|
|
|
Annual Report on Form 10-K for the year ended
December 31, 2004 |
|
|
|
Proxy statement on Schedule 14A filed with the SEC on
May 2, 2005 |
|
|
|
Quarterly Reports on Form 10-Q for the quarters ended
April 1, 2005 and July 1, 2005 |
|
|
|
Current Reports on Form 8-K filed with the SEC on
January 6, 2005, February 3, 2005, February 16,
2005, March 1, 2005 and July 11, 2005 |
|
|
|
Amended Current Reports on Form 8-K/ A filed with the SEC
on March 16, 2005 and April 28, 2005 |
Helix has supplied all information contained or incorporated by
reference into this joint proxy statement/ prospectus relating
to Helix and its respective affiliates.
You can obtain a copy of any of the above-referenced documents
incorporated by reference into this joint proxy statement/
prospectus except for the exhibits to those documents from
Helix. You may also obtain these documents from the SEC or
through the SECs website described above. Documents
incorporated by reference are available from Helix without
charge, excluding all exhibits unless specifically incorporated
by reference as an exhibit into this joint proxy statement/
prospectus. You may obtain documents incorporated by reference
into this joint proxy statement/ prospectus by requesting them in
116
writing or by telephone from Helix or The Altman Group,
Helixs proxy solicitor, at the following addresses and
telephone numbers:
Investor Relations
Helix Technology Corporation
Nine Hampshire Street
Mansfield, Massachusetts 02048
(508) 337-5111
or
The Altman Group, Inc.
1200 Wall Street West
3rd Floor
Lyndhurst, NJ 07071
Holders: (866) 304-5477
Bank/Brokers: (201) 806-7300
If you would like to request documents, please do so by
October 19, 2005, to receive them before the Helix special
meeting. If you request any of these documents from Helix, Helix
will mail them to you by first-class mail or similar means.
You should rely only on the information contained or
incorporated by reference into this joint proxy statement/
prospectus in voting your shares at the Helix special meeting.
Helix has not authorized anyone to provide you with information
that is different from what is contained in this joint proxy
statement/ prospectus. This joint proxy statement/ prospectus is
dated
[ ],
2005. You should not assume that the information contained in
this joint proxy statement/ prospectus is accurate as of any
other date, and neither the mailing of this joint proxy
statement/ prospectus to Helix stockholders nor the merger will
create any implication to the contrary.
117
ANNEX A
AGREEMENT AND PLAN OF MERGER, AS AMENDED
The representations, warranties and covenants contained in
the merger agreement were made only for purposes of that
agreement and as of specific dates, were solely for the benefit
of the parties to such agreement, and may be subject to
limitations agreed by the contracting parties. The
representations and warranties may have been made for the
purposes of allocating contractual risk between the parties to
the agreement instead of establishing these matters as facts,
and may be subject to standards of materiality applicable to the
contracting parties that differ from those applicable to
investors. Investors are not third-party beneficiaries under the
merger agreement and should not view the representations,
warranties and covenants or any descriptions thereof as
characterizations of the actual state of facts or condition of
Brooks or Helix or any of their respective subsidiaries.
AGREEMENT AND PLAN OF MERGER
AMONG
BROOKS AUTOMATION, INC., MT. HOOD CORPORATION
AND
HELIX TECHNOLOGY CORPORATION
Dated as of July 11, 2005,
as amended on August 29, 2005
A-1
TABLE OF CONTENTS
|
|
|
|
|
|
ARTICLE I THE MERGER |
|
A-8 |
|
1.1
|
|
The Merger |
|
A-8 |
|
1.2
|
|
Effective Time |
|
A-9 |
|
1.3
|
|
Closing |
|
A-9 |
|
1.4
|
|
Directors and Officers of the Surviving Corporation |
|
A-9 |
|
|
1.5
|
|
Effects of the Merger |
|
A-9 |
|
1.6
|
|
Conversion of Common Stock |
|
A-9 |
|
1.7
|
|
Company Options and Purchase Rights |
|
A-10 |
|
1.8
|
|
Closing of Company Transfer Books |
|
A-10 |
|
1.9
|
|
Exchange of Certificates |
|
A-10 |
|
|
1.10
|
|
No Liability |
|
A-11 |
|
1.11
|
|
Lost Certificates |
|
A-11 |
|
1.12
|
|
Withholding Rights |
|
A-11 |
|
1.13
|
|
Distributions with Respect to Unexchanged Shares |
|
A-11 |
|
1.14
|
|
Additional Matters |
|
A-12 |
|
ARTICLE II REPRESENTATIONS AND WARRANTIES OF COMPANY |
|
A-12 |
|
2.1
|
|
Organization and Qualification |
|
A-12 |
|
2.2
|
|
Authority to Execute and Perform Agreement |
|
A-13 |
|
2.3
|
|
Capitalization and Title to Shares |
|
A-13 |
|
2.4
|
|
Company Subsidiaries |
|
A-14 |
|
|
2.5
|
|
SEC Reports |
|
A-15 |
|
2.6
|
|
Financial Statements |
|
A-15 |
|
2.7
|
|
Absence of Undisclosed Liabilities |
|
A-16 |
|
2.8
|
|
Absence of Adverse Changes |
|
A-16 |
|
2.9
|
|
Compliance with Laws |
|
A-16 |
|
2.10
|
|
Actions and Proceedings |
|
A-17 |
|
2.11
|
|
Contracts and Other Agreements |
|
A-17 |
|
|
2.12
|
|
Intellectual Property |
|
A-17 |
|
2.13
|
|
Assets |
|
A-19 |
|
2.14
|
|
Insurance |
|
A-20 |
|
2.15
|
|
Commercial Relationships |
|
A-20 |
|
2.16
|
|
Tax Matters |
|
A-20 |
|
|
2.17
|
|
Employee Benefit Plans |
|
A-21 |
|
2.18
|
|
Employee Relations |
|
A-24 |
|
2.19
|
|
Environmental Matters |
|
A-24 |
|
2.20
|
|
No Breach |
|
A-25 |
|
2.21
|
|
Board Approvals |
|
A-25 |
|
2.22
|
|
Financial Advisor |
|
A-26 |
|
2.23
|
|
Interested Party Transactions |
|
A-26 |
|
2.24
|
|
Information Supplied |
|
A-26 |
|
ARTICLE III REPRESENTATIONS AND WARRANTIES OF PARENT AND SUB |
|
A-26 |
|
3.1
|
|
Organization and Qualification |
|
A-27 |
|
3.2
|
|
Authority to Execute and Perform Agreement |
|
A-27 |
|
|
3.3
|
|
Capitalization and Title to Shares |
|
A-28 |
|
|
3.4
|
|
Parent Subsidiaries |
|
A-29 |
|
|
3.5
|
|
SEC Reports |
|
A-29 |
A-2
|
|
|
|
|
|
|
|
3.6
|
|
Financial Statements |
|
A-30 |
|
|
3.7
|
|
Absence of Undisclosed Liabilities |
|
A-30 |
|
|
3.8
|
|
Absence of Adverse Changes |
|
A-30 |
|
|
3.9
|
|
Compliance with Laws |
|
A-31 |
|
|
3.10
|
|
Actions and Proceedings |
|
A-31 |
|
|
3.11
|
|
Contracts and Other Agreements |
|
A-31 |
|
3.12
|
|
Intellectual Property |
|
A-32 |
|
3.13
|
|
Assets |
|
A-33 |
|
3.14
|
|
Insurance |
|
A-34 |
|
|
3.15
|
|
Commercial Relationships |
|
A-34 |
|
3.16
|
|
Tax Matters |
|
A-34 |
|
3.17
|
|
Employee Benefit Plans |
|
A-35 |
|
|
3.18
|
|
Employee Relations |
|
A-38 |
|
3.19
|
|
Environmental Matters |
|
A-38 |
|
3.20
|
|
No Breach |
|
A-39 |
|
|
3.21
|
|
Board Approvals |
|
A-39 |
|
3.22
|
|
Financial Advisor |
|
A-39 |
|
3.23
|
|
Interested Party Transactions |
|
A-40 |
|
3.24
|
|
Sub |
|
A-40 |
|
3.25
|
|
Information Supplied |
|
A-40 |
|
ARTICLE IV COVENANTS AND AGREEMENTS |
|
A-40 |
|
4.1
|
|
Conduct of Company Business |
|
A-40 |
|
4.2
|
|
Conduct of Parent Business |
|
A-43 |
|
|
4.3
|
|
Corporate Examinations and Investigations |
|
A-45 |
|
4.4
|
|
Expenses |
|
A-45 |
|
4.5
|
|
Authorization from Others |
|
A-46 |
|
4.6
|
|
Further Assurances |
|
A-46 |
|
|
4.7
|
|
Preparation of Disclosure Documents; Stockholders Meetings |
|
A-46 |
|
4.8
|
|
Public Announcements |
|
A-48 |
|
|
4.9
|
|
Affiliate Letters |
|
A-48 |
|
4.10
|
|
Nasdaq Listings |
|
A-48 |
|
4.11
|
|
No Solicitation |
|
A-48 |
|
4.12
|
|
Regulatory Filings |
|
A-50 |
|
|
4.13
|
|
Notification of Certain Matters |
|
A-50 |
|
4.14
|
|
Registration of Certain Shares |
|
A-50 |
|
4.15
|
|
Employee Matters |
|
A-51 |
|
4.16
|
|
Board Membership and Officers |
|
A-51 |
|
|
4.17
|
|
Indemnification |
|
A-52 |
|
4.18
|
|
Section 16 Approval |
|
A-52 |
|
4.19
|
|
Participation in Certain Actions and Proceedings |
|
A-52 |
|
|
4.20
|
|
Tax-Free Reorganization |
|
A-53 |
|
4.21
|
|
No Acquisition of Common Stock |
|
A-53 |
|
4.22
|
|
FIRPTA Certificate |
|
A-53 |
|
ARTICLE V CONDITIONS PRECEDENT TO THE OBLIGATIONS OF EACH
PARTY TO CONSUMMATE THE MERGER |
|
A-53 |
|
5.1
|
|
Stockholder Approval |
|
A-53 |
|
5.2
|
|
Registration Statement |
|
A-53 |
|
5.3
|
|
Absence of Order |
|
A-53 |
A-3
|
|
|
|
|
|
|
|
5.4
|
|
Regulatory Approvals |
|
A-53 |
|
5.5
|
|
Pending Litigation |
|
A-53 |
|
5.6
|
|
HSR Act |
|
A-54 |
|
5.7
|
|
Nasdaq |
|
A-54 |
|
ARTICLE VI CONDITIONS PRECEDENT TO THE OBLIGATIONS OF
PARENT AND SUB TO CONSUMMATE THE MERGER |
|
A-54 |
|
6.1
|
|
Representations, Warranties and Covenants |
|
A-54 |
|
6.2
|
|
Corporate Certificates |
|
A-54 |
|
6.3
|
|
Secretarys Certificate |
|
A-54 |
|
6.4
|
|
Tax Opinion |
|
A-54 |
|
ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATION OF
COMPANY TO CONSUMMATE THE MERGER |
|
A-55 |
|
7.1
|
|
Representations, Warranties and Covenants |
|
A-55 |
|
7.2
|
|
Corporate Certificates |
|
A-55 |
|
7.3
|
|
Secretarys Certificate |
|
A-55 |
|
7.4
|
|
Tax Opinion |
|
A-55 |
|
ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER |
|
A-55 |
|
8.1
|
|
Termination |
|
A-55 |
|
8.2
|
|
Effect of Termination |
|
A-57 |
|
8.3
|
|
Amendment |
|
A-58 |
|
8.4
|
|
Waiver |
|
A-58 |
|
ARTICLE IX MISCELLANEOUS |
|
A-58 |
|
9.1
|
|
No Survival |
|
A-58 |
|
9.2
|
|
Notices |
|
A-58 |
|
9.3
|
|
Entire Agreement |
|
A-59 |
|
9.4
|
|
Governing Law |
|
A-59 |
|
|
9.5
|
|
Binding Effect; No Assignment; No Third-Party Beneficiaries |
|
A-59 |
|
9.6
|
|
Section Headings |
|
A-60 |
|
9.7
|
|
Counterparts |
|
A-60 |
|
|
9.8
|
|
Severability |
|
A-60 |
|
9.9
|
|
Submission to Jurisdiction; Waiver |
|
A-60 |
|
9.10
|
|
Enforcement |
|
A-60 |
|
9.11
|
|
Rules of Construction |
|
A-60 |
|
9.12
|
|
Waiver of Jury Trial |
|
A-61 |
EXHIBITS AND SCHEDULES
Exhibit A Form
of Affiliate Letter
Company Disclosure Schedule
Parent Disclosure Schedule
A-4
Index of Defined Terms
|
|
|
|
|
Section |
|
|
|
Affiliate Letters
|
|
4.9 |
Agreement
|
|
Preamble |
Certificate of Merger
|
|
1.2(a) |
Certificates
|
|
1.9(a) |
Closing Date
|
|
1.3 |
Closing
|
|
1.3 |
Code
|
|
Recitals |
Company
|
|
Preamble |
Company 10-K
|
|
2.5(a) |
Company 10-Q
|
|
2.6(a) |
Company Acquisition Proposal
|
|
4.11 |
Company Adverse Recommendation Change
|
|
4.11(c) |
Company Agreements
|
|
2.11 |
Company Balance Sheet
|
|
2.7 |
Company Board of Directors
|
|
Recitals |
Company Common Stock
|
|
1.6(a)(i) |
Company Disclosure Schedule
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Article II |
Company Foreign Plan
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2.17(l) |
Company ERISA Affiliate
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2.17(a) |
Company Joint Venture
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2.4(c) |
Company Leased Real Property
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2.13(b) |
Company Material Adverse Effect
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2.1(a) |
Company Options
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1.7(a) |
Company Permits
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2.9(b) |
Company Plans
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2.17(a) |
Company Preferred Stock
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2.3(c) |
Company Real Property
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2.13 |
Company Real Property Leases
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2.13(b) |
Company Real Property
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2.13(b) |
Company SEC Reports
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2.5(a) |
Company Stock Option Plans
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1.7(a) |
Company Stockholder Approval
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4.7(b) |
Company Stockholders Meeting
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4.7(b) |
Company Subsidiary
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2.4(a) |
Company Superior Proposal
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4.11(b) |
Confidentiality Agreement
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4.3 |
Continuation Period
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4.15(a) |
Continuing Employees
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4.15(a) |
DGCL
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Recitals |
DOJ
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4.12 |
Effective Time
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1.2(a) |
Environmental Laws
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2.19(a) |
A-5
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Section |
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ERISA
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2.17(a) |
Exchange Act
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2.5(a) |
Exchange Agent
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1.9(a) |
Exchange Ratio
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1.6(a)(i) |
FTC
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4.12 |
GAAP
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2.6(a) |
Hazardous Substance
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2.19(a)(ii) |
HSR Act
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2.20 |
IRS
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2.17(b) |
knowledge of Parent or to the Parents
knowledge
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3.3(e) |
knowledge of the Company or to the
Companys knowledge
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2.3(e) |
Laws
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2.9(a) |
Merger Consideration
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1.6(a)(iii) |
Merger
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1.1(a) |
Morgan Stanley
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2.22(a) |
Parent
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Preamble |
Parent 10-K
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3.5(a) |
Parent 10-Q
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3.6(a) |
Parent Adverse Recommendation Change
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4.7(c) |
Parent Agreements
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3.11 |
Parent Balance Sheet
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3.7 |
Parent Board of Directors
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Recitals |
Parent Common Stock
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1.6(a)(i) |
Parent Foreign Plan
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3.17(l) |
Parent Disclosure Schedule
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Article III |
Parent ERISA Affiliate
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3.17(a) |
Parent Expenses
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8.2(b) |
Parent Joint Venture
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3.4(c) |
Parent Leased Real Property
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3.13(c) |
Parent Material Adverse Effect
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3.1(a) |
Parent Options
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3.3(b) |
Parent Owned Real Property
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3.13(b) |
Parent Plans
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3.17(a) |
Parent Preferred Stock
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3.3(c) |
Parent Real Property Leases
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3.13(c) |
Parent Real Property
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3.13(c) |
Parent Rights
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3.3(c) |
Parent SEC Reports
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3.5(a) |
Parent Stockholder Approval
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4.7(c) |
Parent Stockholders Meeting
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4.7(c) |
Parent Subsidiary
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3.4(a) |
Permitted Encumbrances
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2.13(a) |
Proprietary Rights
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2.12(a) |
Joint Proxy Statement/ Prospectus
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4.7(a) |
A-6
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Section |
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Registration Statement
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4.7(a) |
Regulation M-A Filing
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2.24 |
Representatives
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4.11(a) |
Restraints
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8.1(c) |
Secretary of State
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1.2(a) |
Securities Act
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2.5(b) |
Sub
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Preamble |
Surviving Corporation
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1.1(a) |
Tax Return
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2.16(a) |
Tax, Taxes and Taxable
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2.16(a) |
Termination Date
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8.1(b) |
Termination Fee
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8.2(b) |
A-7
AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER (this Agreement)
dated as of July 11, 2005 is among Brooks Automation, Inc.
(Parent), a Delaware corporation, Mt. Hood
Corporation, a newly formed Delaware corporation and a direct,
wholly-owned subsidiary of Parent (Sub), and Helix
Technology Corporation, a Delaware corporation (the
Company).
RECITAL
WHEREAS, the board of directors of Company (the Company
Board of Directors), the board of directors of Parent (the
Parent Board of Directors) and the board of
directors of Sub deem it advisable and in the best interests of
its respective corporation and its respective stockholders to
combine their respective businesses;
WHEREAS, in furtherance of such combination, the Company Board
of Directors, the Parent Board of Directors and the Board of
Directors of Sub have each adopted resolutions
(i) approving this Agreement and declaring its advisability
and approving this Agreement in accordance with the Delaware
General Corporation Law, as amended (the DGCL), upon
the terms and subject to the conditions set forth herein and
(ii) recommending to its respective stockholders the
adoption of this Agreement;
WHEREAS, for United States federal income tax purposes, such
merger (or such merger together with the contemplated subsequent
merger of the Surviving Corporation with and into Parent) is
intended to qualify as a reorganization under the provisions of
section 368(a) of the United States Internal Revenue Code
of 1986, as amended (the Code); and
WHEREAS, as part of the same plan of reorganization, the Parent
intends to merge the Surviving Corporation into itself after the
Effective Time as soon as reasonably practicable.
NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements herein contained, and intending to be
legally bound hereby, Parent, Sub and Company hereby agree as
follows:
ARTICLE I
THE MERGER
1.1 The Merger.
(a) Subject to the terms and conditions of this Agreement,
at the Effective Time (as defined in Section 1.2 hereof),
Company and Sub shall consummate a merger (the
Merger) pursuant to which (i) Sub will be
merged with and into Company and the separate corporate
existence of Sub shall thereupon cease, (ii) Company shall
be the successor or surviving entity in the Merger (sometimes
referred to herein as the Surviving Corporation) and
shall continue to be governed by the laws of the State of
Delaware and (iii) the separate corporate existence of
Company, with all its rights, privileges, immunities, powers and
franchises, will continue unaffected by the Merger. The
Surviving Corporation will be a direct wholly owned subsidiary
of Parent and will succeed to and assume all the rights and
obligations of Sub and Company in accordance with the DGCL.
(b) Pursuant to the Merger, (i) the Certificate of
Incorporation of Company, as in effect immediately prior to the
Effective Time, shall be amended and restated so as to contain
the provisions, and only the provisions, contained immediately
prior to the Effective Time in the Certificate of Incorporation
of Sub, except that references to the name of the Surviving
Corporation shall be amended to reflect a change in such name to
Helix Technology Corporation, until amended in
accordance therewith and with the DGCL, and (ii) the
By-laws of Sub, as in effect immediately prior to the Effective
Time, shall be the By-laws of the Surviving Corporation, until
amended in accordance therewith and with the DGCL.
A-8
1.2 Effective Time.
(a) Parent, Sub and Company shall cause a certificate of
merger pursuant to Section 251 of the DGCL with respect to
the Merger (the Certificate of Merger) in such form
as is required by, and executed in accordance with, the relevant
provisions of the DGCL to be filed on the Closing Date (as
defined in Section 1.3 hereof), or on such other date as
Parent and Company may agree, with the Secretary of State of the
State of Delaware (the Secretary of State) as
provided in the DGCL. The Merger shall become effective on the
date on which the Certificate of Merger and any other documents
necessary to effect the Merger in accordance with the DGCL are
duly filed with the Secretary of State or such other date and
time as is specified in the Certificate of Merger, and such time
is hereinafter referred to as the Effective Time.
1.3 Closing. The
closing of the Merger (the Closing) shall take place
at 9:00 a.m., Eastern time, on a date to be specified by
the parties, which shall be no later than the second business
day after satisfaction or waiver of all of the conditions set
forth in Article V, Article VI and Article VII
hereof that are susceptible to satisfaction prior to the Closing
(the Closing Date), at the offices of
Ropes & Gray LLP, One International Place, Boston,
Massachusetts 02110, or such other date or place as agreed to in
writing by the parties hereto.
1.4 Directors and Officers of
the Surviving Corporation. The directors and officers of
Sub at the Effective Time shall, from and after the Effective
Time, be the directors and officers, respectively, of the
Surviving Corporation, until their successors shall have been
duly elected or appointed or qualified or until their earlier
death, resignation or removal in accordance with the Surviving
Corporations Certificate of Incorporation and By-laws.
Company shall cause each current director of Company to submit
his or her resignation at the Closing, and if requested by
Parent, its subsidiaries, to be effective at the effective time
of the Merger.
1.5 Effects of the
Merger. At and after the Effective Time, the Merger
shall have the effects set forth in the DGCL. Without limiting
the generality of the foregoing, and subject thereto, at the
Effective Time all the property, rights, privileges, powers and
franchises of Company and Sub shall be vested in the Surviving
Corporation, and all debts, liabilities and duties of Company
and Sub shall become the debts, liabilities and duties of the
Surviving Corporation.
1.6 Conversion of Common
Stock.
(a) Merger Consideration. At the Effective
Time, by virtue of the Merger and without any action on the part
of Parent, Sub or Company:
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(i) Subject to payment of cash in lieu of fractional shares
as provided below, each share of Company common stock,
$1.00 par value per share (Company Common
Stock), outstanding immediately prior to the Effective
Time, other than shares held by Company as treasury stock and
shares held by Parent or Sub, will be cancelled and extinguished
and automatically converted into and become the right to receive
1.11 (the Exchange Ratio) shares of Parent common
stock, $.01 par value per share (Parent Common
Stock), and the associated Parent Rights (as defined in
Section 3.3(c)). |
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(ii) If prior to the Effective Time there is a change in
the number of issued and outstanding shares of Parent Common
Stock or Company Common Stock as the result of reclassification,
subdivision, recapitalization, stock split (including reverse
stock split), stock dividend or similar transactions, the
Exchange Ratio shall be equitably adjusted to give effect to
such event to provide the stockholders of Company Common Stock
the same economic effect as contemplated by this Agreement prior
to such event. |
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(iii) The shares of Parent Common Stock payable pursuant to
this Section 1.6(a), together with cash payments in lieu of
fractional shares pursuant to Section 1.6(b), are referred
to collectively as the Merger Consideration. |
A-9
(b) No Fractional Shares. No fractional
shares of Parent Common Stock shall be issued pursuant to this
Agreement. In lieu of fractional shares, each Company
stockholder who would otherwise have been entitled to a fraction
of a share of Parent Common Stock hereunder (after aggregating
all fractional shares to be received by such stockholder), shall
receive, without interest, an amount in cash (rounded to the
nearest whole cent) determined by multiplying such fraction by
the average of the last sale prices of a share of Parent Common
Stock as reported by the Nasdaq National Market for the five
(5) trading days immediately preceding the Effective Time.
(c) Cancelled Stock. All shares of Company
Common Stock held at the Effective Time by Company as treasury
stock or by Parent or Sub shall be cancelled and extinguished
and no payment shall be made with respect thereto.
(d) Sub Stock. In the Merger, each issued and
outstanding share of the capital stock of Sub shall be converted
into and become one fully paid and nonassessable share of common
stock of the Surviving Corporation.
1.7 Company Options and
Purchase Rights. At the Effective Time, each outstanding
option to purchase shares of Company Common Stock (the
Company Options) granted under Companys 1996
Equity Incentive Plan and Companys Amended and Restated
Stock Option Plan for Non-Employee Directors (together, the
Company Stock Option Plans) shall be assumed by
Parent. Each Company Option so assumed by Parent under this
Agreement shall continue to have, and be subject to, the same
terms and conditions set forth in the applicable Company Stock
Option Plan and in the applicable stock option agreement or
certificate immediately prior to the Effective Time (including,
without limitation, any repurchase rights), except (i) that
each Company Option will be exercisable (or will become
exercisable in accordance with its terms) for that number of
shares of Parent Common Stock equal to the product of the number
of shares of Company Common Stock that were issuable upon
exercise of such Company Option immediately prior to the
Effective Time multiplied by the Exchange Ratio, rounded down to
the nearest whole number of shares of Parent Common Stock,
(ii) that the per share exercise price for the shares of
Parent Common Stock issuable upon exercise of such assumed
Company Option shall be equal to the quotient determined by
dividing the exercise price per share of Company Common Stock at
which such Company Option was exercisable immediately prior to
the Effective Time by the Exchange Ratio, rounded up to the
nearest whole cent and (iii) for the vesting of such
options that may have been accelerated as indicated on
Section 2.3(b) of the Company Disclosure Schedule (as
defined in Article II). After the Effective Time, Parent
shall issue to each holder of an outstanding Company Option a
notice describing the foregoing assumption of such Company
Options by Parent. The adjustments provided herein with respect
to any Company Options that are incentive stock
options as defined in Section 422 of the Code shall
be and are intended to be effected in a manner which is
consistent with Section 424(a) of the Code so as to
preserve the benefits of such incentive stock
options.
1.8 Closing of Company
Transfer Books. At the Effective Time, the stock
transfer books of Company shall be closed and no further
registration of transfers of shares of Company Common Stock
shall thereafter be made. On or after the Effective Time, any
Certificates (as defined in Section 1.9) presented to the
Exchange Agent (as defined in Section 1.9) or Parent for
any reason shall be converted into the right to receive Merger
Consideration with respect to the shares of Company Common Stock
formerly represented thereby and any dividends or other
distributions to which the holders thereof are entitled pursuant
to Section 1.13.
1.9 Exchange of
Certificates.
(a) Parent shall authorize Computershare or one or more
other persons reasonably acceptable to Company to act as
Exchange Agent in connection with the Merger (the Exchange
Agent). Promptly after the Effective Time, Parent shall
cause the Exchange Agent to mail to former record holders of
shares of Company Common Stock letters of transmittal and
instructions for surrendering their certificates formerly
representing shares of Company Common Stock
(Certificates) in exchange for the Merger
Consideration.
A-10
(b) Immediately after the Effective Time, Parent shall
deliver to the Exchange Agent sufficient shares of Parent Common
Stock to satisfy the Merger Consideration and cash reasonably
sufficient for fractional shares. After the Effective Time, upon
receipt of Certificates for cancellation, together with a
properly completed letter of transmittal (which shall specify
that delivery is effected, and risk of loss of, and title to,
the Certificates passes, only upon delivery of the Certificates
to the Exchange Agent) and other requested documents and in
accordance with the instructions thereon, the holder of such
Certificates shall be entitled to receive in exchange therefor
(i) a certificate representing that number of whole shares
of Parent Common Stock into which the shares of Company Common
Stock theretofore represented by the Certificates so surrendered
shall have been converted pursuant to Section 1.6(a) and
(ii) a check in the amount of any cash due pursuant to
Sections 1.6(b) and 1.13. No interest shall be paid or
shall accrue on any such amounts.
(c) Until surrendered in accordance with the provisions of
this Section 1.9, each Certificate shall represent for all
purposes only the right to receive Merger Consideration and, if
applicable, amounts under Section 1.13. Shares of Parent
Common Stock into which shares of Company Common Stock shall be
converted in the Merger at the Effective Time shall be deemed to
have been issued at the Effective Time. If any certificates
representing shares of Parent Common Stock are to be issued in a
name other than that in which the Certificate surrendered is
registered, it shall be a condition of such exchange that the
person requesting such exchange deliver to the Exchange Agent
all documents necessary to evidence and effect such transfer and
pay to the Exchange Agent any transfer or other taxes required
by reason of the issuance of a certificate representing shares
of Parent Common Stock in a name other than that of the
registered holder of the Certificate surrendered, or establish
to the satisfaction of the Exchange Agent that such tax has been
paid or is not applicable. Beginning the date which is one year
following the Closing Date, Parent shall act as the Exchange
Agent and thereafter any holder of an unsurrendered Certificate
shall look solely to Parent for any amounts to which such holder
may be due, subject to applicable law. Notwithstanding any other
provisions of this Agreement, any portion of the Merger
Consideration remaining unclaimed seven years after the
Effective Time (or such earlier date immediately prior to such
time as such amounts would otherwise escheat to, or become
property of, any governmental entity) shall, to the extent
permitted by law, become the property of Parent free and clear
of any claims or interest of any person previously entitled
thereto.
1.10 No Liability.
None of Company, Parent, the Surviving Corporation or the
Exchange Agent shall be liable to any person in respect of any
shares (or dividends or distributions with respect thereto) or
cash payments delivered to a public official pursuant to any
applicable escheat, abandoned property or similar law.
1.11 Lost
Certificates. If any Certificate shall have been lost,
stolen or destroyed, upon the making of an affidavit of that
fact by the person claiming such Certificate to be lost, stolen
or destroyed and, if required by Parent, the posting by such
person of a bond in such reasonable amount as Parent may direct
as indemnity against any claim that may be made against it or
its affiliates or agents with respect to such Certificate, the
Exchange Agent shall deliver in exchange for such lost, stolen
or destroyed Certificate, the Merger Consideration and any
amounts due pursuant to Section 1.13.
1.12 Withholding
Rights. Parent shall be entitled to deduct and withhold
from the consideration otherwise payable pursuant to this
Agreement to any holder of shares of Company Common Stock such
amounts as it reasonably determines that it is required to
deduct and withhold with respect to the making of such payment
under the Code, or any provision of state, local or foreign tax
law. To the extent that amounts are so withheld by Parent, such
withheld amounts shall be treated for all purposes of this
Agreement as having been paid to the holder of the shares of
Company Common Stock in respect of which such deduction and
withholding was made.
1.13 Distributions with
Respect to Unexchanged Shares. No dividend or other
distribution declared with respect to Parent Common Stock with a
record date after the date during which the Effective Time
occurs shall be paid to holders of unsurrendered Certificates or
holders who comply with the provisions of Section 1.11
(with regard to lost certificates) until such holders surrender
such Certificates or submit an
A-11
affidavit (and any required bond) in accordance with
Section 1.11. Upon the surrender of such Certificates in
accordance with Section 1.9 or submission of an affidavit
(and any required bond) in accordance with Section 1.11,
there shall be paid to such holders, promptly after such
surrender or submission, as the case may be, the amount of
dividends or other distributions, without interest, declared
with a record date after the date during which the Effective
Time occurs and not paid because of the failure to surrender
such Certificates for exchange.
1.14 Additional
Matters. At and after the Effective Time, the officers
and directors of Company after the Merger shall be authorized to
execute and deliver, in the name and on behalf of Company or
Sub, any deeds, bills of sale, assignments or assurances and to
take and do, in the name and on behalf of Company or Sub, any
other actions and things to vest, perfect or confirm of record
or otherwise in the Surviving Corporation any and all right,
title and interest in, to and under any of the rights,
properties or assets acquired or to be acquired by the Surviving
Corporation as a result of, or in connection with, the Merger.
ARTICLE II
REPRESENTATIONS AND
WARRANTIES OF COMPANY
Except as described in Company SEC Reports (as defined in
Section 2.5) with specificity and with reference to
specific events, in each case exclusive of Exhibit 99.1 to
the Company 10-K and other similar disclosures, and with respect
to a contract or agreement, filed as an exhibit to a Company SEC
Report, or on the disclosure schedule delivered by Company to
Parent and Sub on the date hereof (the Company Disclosure
Schedule), the section numbers of which are numbered to
correspond to the section numbers of this Agreement to which
they refer, Company represents and warrants to Parent and Sub as
set forth below. For purposes of the representations and
warranties of Company contained herein, disclosure in any
section of the Company Disclosure Schedule of any facts or
circumstances shall be deemed to be adequate response and
disclosure of such facts or circumstances with respect to all
representations or warranties by Company calling for disclosure
of such information, whether or not such disclosure is
specifically associated with or purports to respond to one or
more or all of such representations or warranties, if it is
reasonably apparent on the face of the Company Disclosure
Schedule that such disclosure is applicable. The inclusion of
any information in any section of the Company Disclosure
Schedule or other document delivered by Company pursuant to this
Agreement shall not be deemed to be an admission or evidence of
the materiality of such item, nor shall it establish a standard
of materiality for any purpose whatsoever.
2.1 Organization and
Qualification.
(a) Each of Company and each Company Subsidiary (as defined
in Section 2.4(a)) is a corporation or other legal entity
duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and has corporate or
similar power and authority to own, lease and operate its assets
and to carry on its business as now being and as heretofore
conducted. Each of Company and each Company Subsidiary is
qualified or otherwise authorized to transact business as a
foreign corporation or other organization in all jurisdictions
in which such qualification or authorization is required by law,
except for jurisdictions in which the failure to be so qualified
or authorized has not had and would not reasonably be expected
to have individually or in the aggregate, a Company Material
Adverse Effect. Company Material Adverse Effect
shall mean any adverse effect on the assets, properties,
business, results of operations or financial condition of
Company or any Company Subsidiary or the ability of the Company
or any Company Subsidiary to complete the transactions
contemplated hereby on the terms set forth herein which, when
taken together with all other adverse events, facts or
conditions with respect to which such phrase is used in this
Agreement, constitutes a material adverse effect on (i) the
assets, properties, business, results of operations or financial
condition of Company and the Company Subsidiaries taken as a
whole (provided that in no event shall effects primarily
resulting from any of the following be taken into account in
determining whether there is, has been or is reasonably likely
to be a Company Material Adverse Effect under this
clause (i): (A) conditions affecting the regional,
national or global economy or securities markets in general that
do not have a materially disproportionate impact on Company and
the
A-12
Company Subsidiaries, (B) conditions affecting the industry
in which the Company and the Company Subsidiaries operate
generally that do not have a materially disproportionate impact
on Company and the Company Subsidiaries, (C) any change in
the stock price or trading volume of Company Common Stock (it
being understood that the facts or occurrences giving rise or
contributing to such change may be deemed to constitute, or be
taken into account in determining whether there is, has been or
would reasonably likely be, a Company Material Adverse Effect),
(D) any act of terrorism or war not specifically directed
at Company and that does not have a materially disproportionate
impact on Company, (E) the announcement of this Agreement
and the transactions contemplated hereby, (F) actions taken
or omissions to act with the prior written consent of Parent,
(G) changes in laws of general applicability or
interpretations thereof by courts or governmental entities that
do not have a materially disproportionate impact on Company and
the Company Subsidiaries and (H) changes in generally
accepted accounting principles) or (ii) the ability of the
Company or any Company Subsidiary to complete the transactions
contemplated hereby on the terms set forth herein.
(b) Company has made available to Parent true and complete
copies of the charter and By-laws or other organizational
documents of Company as presently in effect, and none of Company
or any Company Subsidiary is in default in the performance,
observation or fulfillment of its organizational documents,
except, in the case of the Company Subsidiaries, such defaults
that have not had and would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse
Effect.
2.2 Authority to Execute and
Perform Agreement. Company has the corporate power and
authority to enter into, execute and deliver this Agreement and,
subject, in the case of consummation of the Merger, to the
adoption of this Agreement by the holders of Company Common
Stock, to perform fully its obligations hereunder. The execution
and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by
the Company Board of Directors. No other action on the part of
Company is necessary to consummate the transactions contemplated
hereby (other than adoption of this Agreement by the holders of
Company Common Stock). This Agreement has been duly executed and
delivered by Company and constitutes a valid and binding
obligation of Company, enforceable in accordance with its terms
subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors rights
and to general equity principles. The affirmative approval of
the holders of a majority of the shares of Company Common Stock
outstanding is the only vote of holders of Company capital stock
required to adopt this Agreement.
2.3 Capitalization and Title
to Shares.
(a) Company is authorized to issue 60,000,000 shares
of Company Common Stock, of which 26,131,979 shares were
issued and outstanding as of July 6, 2005. All of the
issued and outstanding shares of Company Common Stock are duly
authorized, validly issued, fully paid, nonassessable and free
of pre-emptive rights. No shares of Company Common Stock are
held in the Companys treasury.
(b) Company has reserved 1,764,625 shares of Company
Common Stock for issuance pursuant to all Company Options.
Company Options to purchase 715,375 shares of Company
Common Stock were outstanding as of July 6, 2005.
Section 2.3(b) of the Company Disclosure Schedule includes
a true and complete list of all Company Options outstanding as
of July 6, 2005, which schedule shows the Company Stock
Option Plan pursuant to which the Company Option was issued, the
underlying shares that have vested as of July 6, 2005, the
applicable vesting and acceleration provisions, the expiration
date and whether the option is intended to be an incentive stock
option. True and complete copies of all instruments (or the
forms of such instruments) referred to in this section have been
furnished to Parent. Except as indicated in Section 2.3(b)
of the Company Disclosure Schedule, Company is not obligated to
accelerate the vesting of any Company Options as a result of the
Merger. Each Company Stock Option Plan (including all
amendments) has been duly approved by Companys
stockholders.
(c) Company is authorized to issue 2,000,000 shares of
Preferred Stock, $1.00 par value per share (the
Company Preferred Stock), none of which are issued
and outstanding and none of which have been reserved for
issuance.
A-13
(d) Except for (i) shares indicated as issued and
outstanding on July 6, 2005 in Section 2.3(a),
(ii) shares issued after such date upon the exercise of
outstanding Company Options listed in Section 2.3(b) of the
Company Disclosure Schedule or granted after July 6, 2005
in the ordinary course of business and in compliance with
Section 4.1 and (iii) shares of Company Common Stock
and Company Options issued in compliance with Section 4.1,
there are not as of the date hereof, and at the Effective Time
there will not be, any shares of Company Common Stock issued and
outstanding.
(e) Companys authorized capital stock consists solely
of Company Common Stock described in Section 2.3(a) and
Company Preferred Stock described in Section 2.3(c). There
are not as of the date hereof, and at the Effective Time there
will not be, authorized or outstanding any subscriptions,
options, conversion or exchange rights, warrants, repurchase or
redemption agreements, rights (including pursuant to a so-called
poison pill) or other agreements, claims or
commitments of any nature whatsoever obligating Company to
issue, transfer, deliver or sell, or cause to be issued,
transferred, delivered, sold, repurchased or redeemed,
additional shares of the capital stock or other securities of
Company or obligating Company to grant, extend or enter into any
such agreement, other than Company Options listed in
Section 2.3(b) of the Company Disclosure Schedule and
Company Options to purchase shares of Company Common Stock
granted in the ordinary course of business with exercise prices
equal to the trading price of Company Common Stock on the date
of grant consistent with past practice since July 6, 2005.
To the knowledge of Company, there are no stockholder
agreements, voting trusts, proxies or other agreements,
instruments or understandings with respect to the voting of the
capital stock of Company. For the purposes of this Agreement,
the knowledge of Company or to Companys
knowledge means the actual knowledge of one or more
executive officers of Company.
(f) Neither Company nor any Company Subsidiary beneficially
owns any shares of capital stock of Parent.
(g) Company has no outstanding bonds, debentures, notes or
other indebtedness that have the right to vote on any matters on
which stockholders may vote.
2.4 Company
Subsidiaries.
(a) Section 2.4(a) of the Company Disclosure Schedule
sets forth a true and complete list of the names and
jurisdictions of organization of each Company Subsidiary. All
issued and outstanding shares or other equity interests of each
Company Subsidiary are owned directly by Company free and clear
of any charges, liens, encumbrances, security interests or
adverse claims. As used in this Agreement, Company
Subsidiary means any corporation, partnership or other
organization, whether incorporated or unincorporated,
(i) of which Company or any Company Subsidiary is a general
partner or (ii) at least 50% of the securities or other
interests having voting power to elect a majority of the board
of directors or others performing similar functions with respect
to such corporation, partnership or other organization are
directly or indirectly owned or controlled by Company or by any
Company Subsidiary, or by Company and one or more Company
Subsidiaries, provided, however, that for the
purposes of Article IV, the phrase at least 50%
in the foregoing definition shall be more than 50%.
(b) There are not as of the date hereof, and at the
Effective Time there will not be, any subscriptions, options,
conversion or exchange rights, warrants, repurchase or
redemption agreements, or other agreements, claims or
commitments of any nature whatsoever obligating any Company
Subsidiary to issue, transfer, deliver or sell, or cause to be
issued, transferred, delivered, sold, repurchased or redeemed,
shares of the capital stock or other securities of Company or
any Company Subsidiary or obligating Company or any Company
Subsidiary to grant, extend or enter into any such agreement. To
the knowledge of Company, there are no stockholder agreements,
voting trusts, proxies or other agreements, instruments or
understandings with respect to the voting of the capital stock
of any Company Subsidiary.
(c) Section 2.4(c) of the Company Disclosure Schedule
sets forth, for each Company Joint Venture (as defined below),
the interest held by Company and the jurisdiction in which such
Company Joint Venture is organized. Interests in Company Joint
Ventures held by Company are held directly by Company, free and
clear of any charges, liens, encumbrances, security interest or
adverse claims. The term
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Company Joint Venture means any corporation or other
entity (including partnership, limited liability company and
other business association) that is not a Company Subsidiary and
in which Company or one or more Company Subsidiaries owns an
equity interest (other than equity interests held for passive
investment purposes which are less than 10% of any class of the
outstanding voting securities or other equity of any such
entity).
2.5 SEC Reports.
(a) Company previously has made available to Parent
(i) its Annual Report on Form 10-K for the year ended
December 31, 2004 (the Company 10-K), as filed
with the SEC, (ii) all proxy statements relating to
Companys meetings of stockholders held or to be held after
December 31, 2004 and (iii) all other documents filed
by Company with, or furnished by Company to, the SEC under the
Securities Exchange Act of 1934, as amended (the Exchange
Act), since January 1, 2002 and prior to the date of
this Agreement (the Company SEC Reports). As of
their respective dates, such documents complied, and all
documents filed by Company with the SEC between the date of this
Agreement and the Closing Date shall comply, in all material
respects, with applicable SEC requirements (including the
Sarbanes-Oxley Act of 2002 and the related rules and regulations
promulgated thereunder) and did not, or in the case of documents
filed on or after the date hereof will not, contain any untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which
they were made, not misleading. On and since January 1,
2002, Company has timely filed, and between the date of this
Agreement and the Closing Date shall timely file, with the SEC
all documents required to be filed by it under the Exchange Act.
No Company Subsidiary is required to file any form, report or
other document with the SEC.
(b) Company has made available to Parent a complete and
correct copy of any amendments or modifications which are
required to be filed with the SEC, but have not yet been filed
with the SEC, if any, to (i) Company Agreements which
previously have been filed by Company with the SEC pursuant to
the Securities Act of 1933, as amended (the Securities
Act) or Exchange Act and (ii) Company SEC Reports
filed prior to the date hereof. Company has timely responded to
all comment letters and other correspondence of the staff of the
SEC relating to the Company SEC Reports, and the SEC has not
notified Company that any final responses are inadequate,
insufficient or otherwise non-responsive. Company has made
available to Parent true and complete copies of all
correspondence between the SEC, on the one hand, and Company and
any of the Company Subsidiaries, on the other, occurring since
January 1, 2002 and prior to the date hereof and will,
reasonably promptly following the receipt thereof, make
available to Parent any such correspondence sent or received
after the date hereof. To the knowledge of Company, none of the
Company SEC Reports is the subject of ongoing SEC review or
outstanding SEC comment.
2.6 Financial
Statements.
(a) The consolidated financial statements contained in the
Company 10-K and in Companys quarterly report on
Form 10-Q for the quarter ended March 31, 2005 (the
Company 10-Q) have been prepared from, and are in
accordance with, the books and records of Company and present
fairly, in all material respects, the consolidated financial
condition and results of operations of Company and the Company
Subsidiaries as of and for the periods presented therein, all in
conformity with United States generally accepted accounting
principles applied on a consistent basis (GAAP),
except as otherwise indicated therein and subject in the case of
the unaudited financial statements included in the Company 10-Q
to normal year-end adjustments, which in the aggregate are not
material in amount, and the absence of notes.
(b) Company maintains a system of internal control
over financial reporting (as defined in
Rules 13a-15(f) of the Exchange Act) sufficient to provide
reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in conformity with
GAAP, that transactions are executed only in accordance with the
authorization of management and regarding prevention or timely
detection of the unauthorized acquisition, use or disposition of
Companys assets. Companys disclosure controls
and procedures (as defined in Rules 13a-15(e) and
15d-15(e) of the
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Exchange Act) are reasonably designed to ensure that all
information (both financial and non-financial) required to be
disclosed by Company in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified in the rules and
forms of the SEC, and that all such information is accumulated
and communicated to Companys management as appropriate to
allow timely decisions regarding required disclosure and to make
the certifications of the chief executive officer and chief
financial officer of Company required under the Exchange Act
with respect to such reports. Company is not a party to, and
does not have any commitment to become a party to, any joint
venture, off balance sheet partnership or any similar contract
(including any contract or arrangement relating to any
transaction or relationship between or among Company, on the one
hand, and any unconsolidated affiliate, including any structured
finance, special purpose or limited purpose entity or person, on
the other hand or any off balance sheet arrangements
(as defined in Item 303(a) of Regulation S-K under the
Exchange Act)), where the result, purpose or intended effect of
such contract or arrangement is to avoid disclosure of any
material transaction involving, or material liabilities of,
Company in Companys published financial statements or
other Company SEC Reports. Since January 1, 2005, Company
has not received any oral or written notification of any
(x) significant deficiency or
(y) material weakness in Companys
internal controls over financial reporting. There is no
outstanding significant deficiency or material
weakness which Companys independent accountants
certify has not been appropriately and adequately remedied by
Company. For purposes of this Agreement, the terms
significant deficiency and material
weakness shall have the meanings assigned to them in
Release 2004-001 of the Public Company Accounting Oversight
Board.
2.7 Absence of Undisclosed
Liabilities. Company has no liabilities of any nature,
whether accrued, absolute, contingent or otherwise, other than
liabilities (i) adequately reflected or reserved against on
the balance sheet (the Company Balance Sheet) dated
December 31, 2004 included in the Company 10-K or
adequately disclosed (in accordance with GAAP) in the notes
thereto, (ii) reflected in Companys unaudited balance
sheet dated March 31, 2005 included in the Company 10-Q or
adequately disclosed (in accordance with GAAP) in the notes
thereto, (iii) incurred since March 31, 2005 in the
ordinary course of business or (iv) that have not had or
would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.
2.8 Absence of Adverse
Changes. Since December 31, 2004, there has not
been any change, event or circumstance that has had, or is
reasonably likely to have, individually or in the aggregate, a
Company Material Adverse Effect. There has not been any action
taken by Company or any Company Subsidiary during the period
from December 31, 2004 through the date of this Agreement
that, if taken during the period from the date of this Agreement
through the Effective Time, would constitute a breach of
Section 4.1.
2.9 Compliance with
Laws.
(a) Company and the Company Subsidiaries have complied in a
timely manner and in all respects, with all laws, statutes,
regulations, rules, ordinances and judgments, decrees, orders,
writs and injunctions, of any court or governmental entity
(collectively, Laws) relating to any of the property
owned, leased or used by them, or applicable to their business
or products, except as has not had or would not reasonably be
expected to have, individually or in the aggregate, a Company
Material Adverse Effect.
(b) Company and the Company Subsidiaries including, to the
knowledge of Company, their respective employees (to the extent
applicable) have obtained each federal, state, county, local or
foreign governmental consent, license, permit, grant or other
authorization of a governmental entity (i) pursuant to
which Company or any Company Subsidiary currently operates or
holds any interest in any of its properties or (ii) that is
required for the operation of the business of Company or any of
its subsidiaries or the holding of any such interest ((i) and
(ii) are herein collectively called Company
Permits), and all of such Company Permits are valid and in
full force and effect, except where the failure to obtain or
have any such Company Permit or for any such Company Permit to
be valid and in full force and effect would not reasonably be
expected to have, individually or in the aggregate, a Company
Material Adverse Effect;
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and no proceeding is pending or, to the knowledge of Company,
threatened to revoke, suspend, cancel, terminate, or adversely
modify any material Company Permit.
2.10 Actions and
Proceedings. Except as would not reasonably be expected
to have, individually or in the aggregate, a Company Material
Adverse Effect: (i) there are no outstanding orders,
judgments, injunctions, decrees or other requirements of any
court, arbitrator or governmental or regulatory body against
Company, any Company Subsidiary or any of their securities,
assets or properties and (ii) there are no actions, suits
or claims or legal, administrative or arbitration proceedings
pending or, to the knowledge of Company, threatened against
Company, any Company Subsidiary, or any of their securities,
assets or properties. To the knowledge of Company, there is no
fact, event or circumstance now in existence that reasonably
could be expected to give rise to any action, suit, claim,
proceeding or investigation that would be reasonably expected to
have, individually or in the aggregate, a Company Material
Adverse Effect or materially interfere with Companys
ability to consummate the transactions contemplated hereby.
There has not been nor are there currently any internal
investigations or inquiries being conducted by Company or any
Company Subsidiary, the Company Board of Directors or any
committee thereof, or any third party at the request of any of
the foregoing concerning any financial, accounting, tax,
conflict or interest, self-dealing, fraudulent or deceptive
conduct or other misfeasance or malfeasance issues.
2.11 Contracts and Other
Agreements. There are no contracts or agreements that
are material contracts (as defined in Item 601(b)(10)) of
Regulation S-K to which Company or any Company Subsidiary
is a party or by which Company or any Company Subsidiary is
bound (the Company Agreements) other than
(a) those Company Agreements identified on the exhibit
indices of Company SEC Reports and (b) those Company
Agreements entered into by the Company or a Company Subsidiary
after the date of this Agreement in compliance with
Section 4.1. Each Company Agreement is valid, subsisting,
in full force and effect and is enforceable against Company or
the applicable Company Subsidiary, and, to the knowledge of
Company, the other parties thereto in accordance with its terms.
Neither Company or any Company Subsidiary, nor to the knowledge
of Company, any other party, is in breach of or in default under
any provision of any Company Agreement, except for breaches or
defaults which have not had and are not reasonably likely to
have, individually or in the aggregate, a Company Material
Adverse Effect. To Companys knowledge, no condition or
circumstance exists which would reasonably be expected to
constitute a default of a provision under any Company Agreement,
except for defaults which have not had, and are not reasonably
likely to have, individually or in the aggregate, a Company
Material Adverse Effect. True and complete copies of any Company
Agreements listed on the Company Disclosure Schedule pursuant to
this Section 2.11 and of unredacted copies of any Company
Agreements filed with the SEC pursuant to a confidential
treatment request have been provided to Parent.
(a) To the knowledge of Company, no executive officer or
director of Company has (whether directly or indirectly through
another entity in which such person has a material interest,
other than as the holder of less than 2% of a class of
securities of a publicly traded company) any material interest
in any property or assets of Company (except as a stockholder)
or a Company Subsidiary, any competitor, customer, supplier or
agent of Company or a Company Subsidiary or any person that is
currently a party to any Company Agreement.
(b) Neither Company nor any Company Subsidiary is party to
any interest rate, equity or other swap or derivative instrument.
2.12 Intellectual
Property.
(a) Each of Company and the Company Subsidiaries owns, or
is validly licensed or otherwise has the right to use all
patents, patent applications, trademarks, trademark rights,
trade names, trade name rights, domain names, service marks,
service mark rights, copyrights, design rights, mask work
rights, trade secrets, inventions, know-how, information,
privacy rights, data rights computer programs, databases and all
other intellectual property rights of any kind or nature arising
under U.S. or foreign law whether registered or
unregistered (collectively, Proprietary Rights)
which are used in the conduct of the business of Company and the
Company Subsidiaries or without which the Company or the Company
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Subsidiaries would be infringing, misappropriating, or violating
a third partys Proprietary Rights, in each case free and
clear of all Liens. Company and each of the Company Subsidiaries
have taken all reasonable steps it believes to be required in
accordance with sound business practices to establish and
preserve its ownership of all Proprietary Rights with respect to
its products, services and technology. Company and the Company
Subsidiaries have the right to sell their products and services
(whether now offered for sale or under development) free from
any royalty or other obligations to third parties.
(b) Section 2.12(b) of the Company Disclosure Schedule
identifies all patents and patent applications, all registered
trademarks and trademark applications, and all registered
copyrighted works and mask works owned by Company and the
Company Subsidiaries. With respect to each item required to be
so identified on Section 2.12(b) of the Company Disclosure
Schedule: (i) Company or a Company Subsidiary owns (free
and clear of any claim, lien, charges and legal duties,
including duties owed to any third party under tort law,
pursuant to any contract or agreement, or stemming from any
Proprietary Right) each such item; (ii) the item is not
subject to any outstanding injunction, judgment, order, decree,
ruling, or charge; (iii) no action is pending or, to the
knowledge of Company, threatened, which challenges the legality,
validity, enforceability, use, or ownership of the item; and
(iv) Company owns, uses and can transfer control of the
item pursuant to the terms of this Agreement without any breach
or violation of any contract or agreement or any applicable
Laws, in each case except where any such failure to possess
clear title or any such outstanding injunction, judgment, order,
decree, ruling, charge or action or the failure of Company to
own, use or be able to transfer control of such item would not
reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.
(c) Section 2.12(c) of the Company Disclosure Schedule
identifies all trade secrets, unregistered copyrightable works
and other unpatented proprietary technologies that are material
to the conduct of the business of Company and the Company
Subsidiaries, taken as a whole. With respect to each item
required to be listed on Section 2.12(c) of the Company
Disclosure Schedule and the source code of any software owned or
exclusively licensed by Company (as opposed to software licensed
from third parties on a non-exclusive basis), Company and the
Company Subsidiaries have not disclosed any material portion of
such Proprietary Rights to any third party.
(d) Except as would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse
Effect:
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(i) to the knowledge of Company, (A) the business
conducted by Company and the Company Subsidiaries does not
infringe upon the Proprietary Rights of any third party, and
(B) none of Company or any the Company Subsidiaries has
infringed upon, misappropriated or otherwise violated the
Proprietary Rights of any third party; |
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(ii) Company has never received any written charge,
complaint, claim, demand or notice alleging any such
infringement, misappropriation, or violation (including any
claim that Company or a Company Subsidiary must license or
refrain from using any Proprietary Rights of any third party); |
|
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(iii) no claims are pending or, to the knowledge of Company
threatened, that Company or any of its Subsidiaries is
infringing (including with respect to the manufacture, use or
sale by Company or any of its Subsidiaries of their respective
commercial products and services) the Proprietary Rights of any
person; and |
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(iv) as of the date of this Agreement, to the knowledge of
Company, no person or entity has infringed upon, misappropriated
or otherwise violated the Proprietary Rights of Company or any
of its Subsidiaries. |
(e) To the knowledge of Company, none of the activities of
the employees of Company or any Company Subsidiary on behalf of
such entity violates any agreement or arrangement which any such
employees have with former employers. All employees and
consultants who contributed to the discovery or development of
any of the Proprietary Rights used in the conduct of the
business of Company and the Company Subsidiaries did so pursuant
to written agreements assigning all Proprietary Rights arising
therefrom to Company or a Company Subsidiary.
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(f) No agreement pursuant to which Company or any Company
Subsidiary holds, uses or licenses material Proprietary Rights
contains change of control or other provisions that would, as a
result of the Merger: (i) cause the termination of such
agreement or allow any other party to such agreement to
terminate the agreement or (ii) effect any change in such
agreement adverse to Company.
(g) Company and the Company Subsidiaries have complied in
all material respects with all applicable contractual and legal
requirements pertaining to information privacy and security. To
the knowledge of Company, no complaint relating to an improper
use or disclosure of, or a breach in the security of, any such
information has been made or threatened against Company or any
Company Subsidiary. To the knowledge of Company, there has been
no: (i) unauthorized disclosure of any material third party
proprietary or confidential information in the possession,
custody or control of Company or a Company Subsidiary, or
(ii) material breach of Companys or any
Subsidiarys security procedures wherein confidential
information has been disclosed to a third person.
(h) None of Companys material Proprietary Rights
constitutes or is dependent on any open source computer code,
none of Companys products incorporates, imbeds or is
bundled with any open source computer code, and none of
Companys material Proprietary Rights is subject to any
license or other contractual obligation that would require
Company to divulge to any person any source code or trade secret
that is part of Companys Proprietary Rights.
2.13 Assets.
(a) Company and each Company Subsidiary has all material
assets, properties, rights and contracts necessary to permit
Company and the Company Subsidiaries to conduct their business
as it is currently being conducted. Company and each Company
Subsidiary has good and marketable title to all of its
properties, interests in properties and assets, real and
personal, reflected in the Company Balance Sheet (except
properties, interests in properties and assets sold or otherwise
disposed of since the Company Balance Sheet Date in the ordinary
course of business consistent with past practice), or with
respect to leased properties and assets, valid leasehold
interests in such properties and assets, in each case, free and
clear of all imperfections of title, restrictions,
encroachments, liens and easements, except (i) liens for
current taxes not yet due and payable that are not overdue or
that are being contested in good faith by appropriate
proceedings, (ii) mechanics, carriers
workers, repairers and other similar liens imposed
by law arising or incurred in the ordinary course of business
that are not overdue or that are being contested in good faith
by appropriate proceedings, (iii) deposits or pledges made
in connection with, or to secure payment of, workers
compensation, unemployment insurance, old age pension programs
mandated under applicable law or other social security,
(iv) restrictions on the transfer of securities arising
under federal and state securities laws, (v) such
imperfections of title, restrictions, encroachments, liens and
easements as do not and would not reasonably be expected to
materially detract from or interfere with the use or value of
the properties subject thereto or affected thereby, or otherwise
materially impair business operations involving such properties
and (vi) liens securing debt which is reflected on the
Company Balance Sheet (collectively, Permitted
Encumbrances). The buildings, property and equipment of
Company and each Company Subsidiary that are used in the
operations of business are (i) in good operating condition
and repair and (ii) have been maintained in accordance with
normal industry practices.
(b) No Company or Company Subsidiary owns in fee any real
property. Section 2.13(b) of the Company Disclosure
Schedule lists all real property leased by Company and each
Company Subsidiary (the Company Leased Real
Property). True and complete copies of all leases with
respect to Company Leased Real Property (the Company Real
Property Leases) in excess of 15,000 square feet have
been provided to Parent. Each lease set forth on
Section 2.13(b) is valid, subsisting, in full force and
effect and is enforceable against Company or the applicable
Company Subsidiary, and, to the knowledge of Company, the other
parties thereto in accordance with its terms. Neither Company or
any Company Subsidiary, nor to the knowledge of Company, any
other party, is in breach of or in default under any provision
of any Company Real Property Lease, except for breaches or
defaults which have not had, and are not reasonably likely to
have, individually or in the aggregate, a Company Material
Adverse Effect. To
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the knowledge of Company, no condition or circumstance exists
which would reasonably be expected to constitute a default of a
provision under any Company Real Property Lease, except for
those conditions or circumstances that have not had or would not
reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.
(c) There are no written or oral subleases, licenses,
occupancy agreements, rights of first offer, rights of first
refusal or other contractual obligations that grant the right of
use or occupancy of Company Leased Real Property, and there is
no person in possession of Company Leased Real Property other
than Company and the Company Subsidiaries. There is no pending,
or, to the knowledge of Company, threatened, eminent domain,
condemnation or similar proceeding materially affecting any
Company Leased Real Property.
2.14 Insurance.
Company (or one of the Company Subsidiaries) now maintains in
full force and effect, and has maintained during the immediately
preceding three-year period, policies of insurance that to the
Companys knowledge are reasonably adequate with respect to
all material properties, assets and business activities of
Company and each of the Company Subsidiaries against such
casualties, risks, and contingencies as are customarily insured
against by entities owning similar properties or assets or
engaged in similar business activities. There are no material
outstanding unpaid claims under any of such policies of
insurance.
2.15 Commercial
Relationships. None of Companys or the Company
Subsidiaries material customers, suppliers, collaborators,
distributors, licensors or licensees has canceled or otherwise
terminated its relationship with Company or a Company Subsidiary
or has, during the last twelve months, altered its relationship
with Company or a Company Subsidiary, except as would not
reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect. To the
Companys knowledge, there is no plan or intention of any
such entity, and the Company has not received any threat or
notice from any such entity, to terminate, cancel or otherwise
materially modify its relationship with Company or a Company
Subsidiary.
2.16 Tax Matters.
(a) For purposes of this Agreement, the term
Tax (and, with correlative meaning,
Taxes and Taxable) means all United
States Federal, state and local, and all foreign, income,
profits, franchise, gross receipts, payroll, transfer, sales,
employment, social security, unemployment insurance,
workers compensation, use, property, excise, value added,
ad valorem, estimated, stamp, alternative or add-on minimum,
recapture, environmental, capital, withholding and any other
taxes and similar impositions or assessments in the nature of
taxes, together with all interest, penalties and additions
imposed on or with respect to such amounts. Tax
Return means any return, declaration, report, claim for
refund, return or statement filed or required to be filed with
any taxing authority in connection with the determination,
assessment, collection or imposition of any Taxes, including any
attachments thereto and any amendments thereof.
(b) All Tax Returns required to be filed by or with respect
to Company and the Company Subsidiaries have been filed within
the time and in the manner prescribed by law. All such Tax
Returns are true, correct and complete in all material respects,
and all Taxes owed by Company or the Company Subsidiaries,
whether or not shown on any Tax Return, have been paid. Company
and the Company Subsidiaries file Tax Returns in all
jurisdictions where they are required to so file, and no claim
has ever been made in writing by any taxing authority in any
other jurisdiction that Company or the Company Subsidiaries are
or may be subject to taxation by that jurisdiction.
(c) There are no material liens or other encumbrances with
respect to Taxes upon any of the assets or properties of Company
or the Company Subsidiaries, other than with respect to Taxes
not yet due and payable.
(d) No material audit or proceeding is currently pending
or, to the knowledge of the Company, threatened, with respect to
any Tax Return of Company or the Company Subsidiaries. No
material
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deficiency for any Taxes has been proposed in writing against
Company or the Company Subsidiaries, which deficiency has not
been paid in full.
(e) There are no outstanding agreements, waivers or
arrangements extending the statutory period of limitation
applicable to any claim for, or the period for the collection or
assessment of, material Taxes due from or with respect to
Company or the Company Subsidiaries for any taxable period, no
power of attorney granted by or with respect to Company or the
Company Subsidiaries relating to material Taxes is currently in
force.
(f) With respect to any period for which Tax Returns have
not yet been filed, or for which Taxes are not yet due or owing,
Company has, in accordance with GAAP, made due and sufficient
accruals for such Taxes (excluding any deferred
taxes or similar items that reflect timing differences
between tax and financial accounting principles) in
Companys books and records. All Taxes attributable to the
period beginning after March 31, 2005 have been incurred in
the ordinary course of the Companys business.
(g) All material withholding and payroll Tax requirements
required to be complied with by Company and the Company
Subsidiaries (including requirements to deduct, withhold and pay
over material amounts to any governmental authority in
connection with material amounts paid or owing to any employee,
independent contractor, creditor, stockholder or other third
party and to comply in all material respects with any associated
record keeping and reporting requirements) have been satisfied.
(h) Company and the Company Subsidiaries are not party to
or bound by, nor do they have any obligation under, any Tax
sharing agreement or similar contract or arrangement among
members of a consolidated, combined or unitary group other than
a group of which the Company is the common parent. Neither
Company nor any Company Subsidiary has any liability for the
Taxes of any other person other than a group of which the
Company is the common parent under Treasury
Regulation 1.1502-6 (or any similar provision of state,
local or foreign law), as a transferee or successor, by
contract, or otherwise.
(i) Neither Company nor any Company Subsidiary has made any
payments, or has been or is a party to any agreement, contract,
arrangement or plan that could result in it making payments,
that have resulted or would result, separately or in the
aggregate, in the payment of any excess parachute
payment within the meaning of Code Section 280G or in
the imposition of an excise Tax under Code Section 4999 (or
any corresponding provisions of state, local or foreign Tax law)
or that could result in it making payments, that were not or
would not be deductible under Code Sections 162(m). Neither
Company nor any Company Subsidiary has agreed to, or is required
to, make any adjustments under Section 481 of the Code by
reason of a change in accounting method or otherwise.
(j) Neither Company nor any Company Subsidiary has
distributed stock of another corporation, or has had its stock
distributed by another corporation, in a transaction that was
governed, or purported or intended to be governed, in whole or
in part, by Code Section 355 or 361.
(k) Company has delivered or made available to Parent
(i) complete and correct copies of all Tax Returns,
examination reports and statements of deficiencies assessed
against or agreed to by Company or any Company Subsidiary with
respect to the prior three (3) taxable years.
(l) Neither Company nor any Company Subsidiary has
participated in any reportable transaction within
the meaning of U.S. Treasury
Regulation Section 1.6011-4.
2.17 Employee Benefit
Plans.
(a) Section 2.17(a) of the Company Disclosure Schedule
contains a complete list of all material pension, savings,
profit sharing, retirement, deferred compensation, employment,
welfare, fringe benefit, insurance, short and long term
disability, medical, death benefit, incentive, bonus, stock,
vacation pay, severance pay and similar plans, programs or
arrangements (the Company Plans) (other than oral
employment agreements that (i) do not constitute an
employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (ERISA) or (ii), individually or
in the aggregate, are not material), including all employee
benefit plans as defined in Section 3(3) of ERISA,
maintained by Company, the Company Subsidiaries or a Company
ERISA
A-21
Affiliate (as defined below) or to which Company, any of the
Company Subsidiaries or a Company ERISA Affiliate are parties or
required to contribute or have any material obligation.
Company ERISA Affiliate means (i) any
corporation included with Company in a controlled group of
corporations within the meaning of Section 414(b) of the
Code; (ii) any trade or business (whether or not
incorporated) that is under common control with Company within
the meaning of Section 414(c) of the Code; (iii) any
member of an affiliated service group of which Company or any
Company Subsidiary is a member within the meaning of
Section 414(m) of the Code; or (iv) any other person
or entity treated as aggregated with Company under
Section 414(o) of the Code.
(b) Company has delivered or made available to Parent
current, accurate and complete copies of (i) each Company
Plan that has been reduced to writing and all amendments
thereto, (ii) a summary of the material terms of each
Company Plan that has not been reduced to writing, including all
amendments thereto, (iii) the summary plan description for
each Company Plan subject to Title I of ERISA, and in the
case of each other Company Plan, any similar employee summary
(including but not limited to any employee handbook
description), (iv) for each Company Plan intended to be
qualified under Section 401(a) of the Code, the most recent
determination or opinion letter issued by the Internal Revenue
Service (IRS), (v) for each Company Plan with
respect to which a Form 5500 series annual report/return is
required to be filed, the most recently filed such annual
report/return and the annual reports/returns for the two
preceding years, together with all schedules and exhibits,
(vi) all insurance contracts, administrative services
contracts, trust agreements, investment management agreements or
similar agreements maintained in connection with any Company
Plan, and (vii) for each Company Plan that is intended to
be qualified under Code Section 401(a), copies of
compliance testing results (including nondiscrimination testing
(401(a)(4), ADP and ACP), 402(g), 415 and top-heavy tests) for
the 2004 plan year.
(c) There is no entity (other than Company or any Company
Subsidiary) that together with Company or any Company Subsidiary
would be treated as a single-employer within the meaning of
Section 414(b), (c), (m) or (o) of the Code or
Section 4001(b) of ERISA.
(d) Each Company Plan maintained by Company, a Company
Subsidiary or a Company ERISA Affiliate which is intended to be
qualified under Section 401(a) of the Code has received an
IRS determination letter to the effect that the Company Plan is
so qualified, and, to the knowledge of the Company, there is no
fact or circumstance that could reasonably be expected to result
in the revocation of such letter. Each Company Plan has been
administered in all material respects in accordance with the
terms of such Company Plan and the provisions of any and all
statutes, orders or governmental rules or regulations, including
ERISA and the Code, and to the knowledge of Company, nothing has
been done or not done with respect to any Company Plan that
could result in any material liability on the part of Company or
any Company Subsidiary under Title I of ERISA or
Chapter 43 of the Code. None of the Company Plans is
currently under examination by the IRS, Department of Labor or
other U.S. government agency or department, nor, is any
such examination pending or, to the knowledge of the Company,
threatened. There are no lawsuits, claims or controversies
pending, or to the knowledge of the Company, threatened (other
than claims in the ordinary course of business consistent with
past practice) with respect to any Company Plan that could
reasonably be expected to result in material liability to the
Company. All contributions, premiums and other amounts due to or
in connection with each Company Plan under the terms of the
Company Plan or applicable law have been timely made, and to the
extent not yet due, accrued on the financial statements of the
Company in accordance with GAAP.
(e) Any Company Plan subject to Title IV of ERISA with
respect to which the Company or any Company Subsidiary has any
liability is listed on Section 2.17(e) of the Company
Disclosure Schedule. The actuarial valuation with respect to
each such Company Plan, as of January 1, 2004, has been
provided to Parent and, to the knowledge of Company, the
material facts underlying such valuation remain true and correct
as of the date hereof. Specifically, but not in limitation of
the foregoing, to the knowledge of Company, there have been no
material changes in such facts including with respect to the
census of employees, former employees and retirees, the fair
market value of plan assets and the provisions of the plan on
which the valuation is based. All contributions described in the
valuation report with respect to
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periods prior to the Closing Date have been made in the amounts
and at the dates suggested by the actuaries therein. There has
been no waiver of any accumulated funding deficiency requested
or granted with respect to any Company Plan subject to
Section 412 of the Code or Section 302 of ERISA. No
such Company Plan is obligated or is reasonably expected to be
required to make deficit reduction contributions as
defined in Section 412(l)(12) of the Code. No reportable
event (within the meaning of Section 4043) of ERISA,
whether or not waived by regulations, has occurred with respect
to any Company Plan that is subject to Title IV of ERISA.
(f) Except for continuation of health coverage to the
extent required under Section 4980B of the Code or
Section 601 et seq. of ERISA, other applicable law or as
otherwise set forth in this Agreement, there are no obligations
under any Company Plan providing welfare benefits after
termination of employment.
(g) Except for individual employment agreements, each
Company Plan can be amended, modified or terminated without
advance notice to or consent by any employee, former employee or
beneficiary, except as required by law.
(h) Neither Company nor any of the Company Subsidiaries nor
any Company ERISA Affiliate has ever maintained, sponsored,
contributed to, been required to contribute to, or incurred any
liability under any:
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(i) multi-employer plan as defined in Section 3(37) or
Section 4001(a)(3) of ERISA, |
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(ii) multiple employer plan as defined in
Section 413(c) of the Code, or any plan that has two or
more contributing sponsors at least two of whom are not under
common control, within the meaning of Section 4063(a) of
ERISA, |
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(iii) welfare benefit fund within the meaning of
Section 419(e) of the Code, or |
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(iv) voluntary employees beneficiary association,
within the meaning of Section 501(c)(9) of the Code. |
(i) No employee of, consultant to, or other provider of
services to Company, any Company Subsidiary, or any Company
ERISA Affiliate will be entitled to any material payment
becoming due from any Company Plan, any additional benefit or
the acceleration of the payment or vesting of any benefit under
any Company Plan by reason of the execution of this Agreement
and the consummation of the transactions contemplated hereby.
(j) Neither Company nor any Company Subsidiary nor any
Company ERISA Affiliate has any leased employees
within the meaning of Section 414(n) of the Code or any
independent contractors or other individuals who provide
employee-type services but who are not recognized by Company as
employees of Company.
(k) Any Company Plan that is a plan or arrangement to
provide unfunded nonqualified deferred compensation is
specifically identified in Section 2.17(a) of the Company
Disclosure Schedule. A list of participants in such Company
Plan, together with the projected account balances or accrued
benefits with respect to each such participant as of the of
Closing, are set forth in Section 2.17(k) of the Company
Disclosure Schedule. The actuarial valuation (if applicable)
with respect to each such Company Plan that is an unfunded
nonqualified deferred compensation plan, as of January 1,
2004, has been provided to Parent, to the knowledge of Company,
and the material facts underlying such valuation remain true and
correct as of the date hereof. Specifically, but not in
limitation of the foregoing, to the knowledge of Company, there
have been no material changes in such facts including with
respect to the census of employees, former employees and
retirees, and the provisions of the plan on which the valuation
is based. Each Company Plan that is a nonqualified
deferred compensation plan (as defined under
Section 409A(d)(1) of the Code) has been operated and
administered in good faith compliance with Section 409A
from the period beginning January 1, 2005 through the date
hereof and has not been materially modified since
October 2, 2004.
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(l) Each Company Plan maintained for employees of Company
outside of the United States (each a Company Foreign
Plan) has been administered in all material respects in a
manner that satisfies all applicable Laws. All contributions to
each Company Foreign Plan required to be made on or before the
Closing have been and will be made by Company or a Company
Subsidiary prior to the Closing. Each Company Foreign Plan is
either fully funded (or fully insured) based upon generally
accepted local actuarial and accounting practices and procedures
or accruals for each Company Foreign Plan have been made in
Companys financial statements. There are no pending
investigations by any governmental entity involving any Company
Foreign Plan nor any pending claims (except for claims for
benefits payable in the normal operation of the Company Foreign
Plans), suits or proceedings against any Company Foreign Plan or
asserting any rights or claims to benefits under any Company
Foreign Plan. The consummation of the transactions contemplated
by this Agreement will not by itself create or otherwise result
in any material liability with respect to any Company Foreign
Plan.
2.18 Employee
Relations.
(a) Upon termination of the employment of any employees of
Company or any Company Subsidiaries, none of Company, the
Company Subsidiaries, the Surviving Corporation, Parent or the
Parent Subsidiaries will be liable, by reason of the Merger or
anything done at or before the Effective Time in connection with
the Merger, to any of such employees for severance pay or any
other similar payments (other than accrued salary, vacation or
sick pay in accordance with normal policies). True and complete
information as to the name, current job title and compensation
for the current year of all current directors and executive
officers of Company has been provided to Parent.
(b) Except for matters that have not had or would not
reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect, Company and each
Company Subsidiary (i) is in compliance in all respects
with all Laws respecting employment, employment practices, terms
and conditions of employment and wages and hours, in each case,
with respect to employees, (ii) has withheld all amounts
required by law or by agreement to be withheld from the wages,
salaries and other payments to employees, (iii) is not
liable for any arrears of wages, salaries, commissions, bonuses
or other direct compensation for any services performed or
amounts required to be reimbursed to any employees or
consultants or any taxes or any penalty for failure to comply
with any of the foregoing, and (iv) is not liable for any
payment to any trust or other fund or to any governmental
entity, with respect to unemployment compensation benefits,
social security or other benefits or obligations for employees
(other than routine payments to be made in the ordinary course
of business and consistent with past practice).
(c) No work stoppage or labor strike against Company or any
Company Subsidiary is pending or, to the knowledge of Company,
threatened. Neither Company nor any Company Subsidiary is
involved in or, to the knowledge of Company, threatened with,
any labor dispute, grievance, or litigation relating to labor,
safety or discrimination matters involving any employee,
including without limitation charges of unfair labor practices
or discrimination complaints, that, if adversely determined,
could reasonably be expected to result, individually or in the
aggregate, in a Company Material Adverse Effect. Neither Company
nor any Company Subsidiary has engaged in any unfair labor
practices within the meaning of the National Labor Relations Act
that could reasonably be expected to result in, individually or
in the aggregate, a Company Material Adverse Effect. Neither
Company nor any Company Subsidiary is presently, nor has it been
in the past, a party to or bound by any collective bargaining
agreement or union contract with respect to employees, and no
collective bargaining agreement is being negotiated by Company
or any Company Subsidiary. No union organizing campaign or
activity with respect to non-union employees of Company or any
Company Subsidiary is ongoing, pending or, to the knowledge of
Company, threatened.
2.19 Environmental
Matters.
(a) Except for those matters which have not had or would
not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect:
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(i) Company and the Company Subsidiaries are, and have
been, in compliance in all respects with all Laws relating to
(A) releases or threatened releases of Hazardous Substances
(as defined |
A-24
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below), (B) pollution or protection of public health or the
environment or worker safety or health or (C) the
manufacture, handling, transport, use, treatment, storage, or
disposal of Hazardous Substances (Environmental
Laws); |
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(ii) there has been no release or threatened release of any
pollutant, petroleum or any fraction thereof, contaminant or
toxic or hazardous material, substance or waste (each a
Hazardous Substance) on, upon, into or from any site
currently or heretofore owned, leased or otherwise used by
Company, any Company Subsidiary or any predecessor of Company or
any Company Subsidiary; |
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(iii) there have been no Hazardous Substances generated by
Company, any Company Subsidiary or any predecessor of Company or
any Company Subsidiary that have been disposed of or come to
rest at any site that has been included in any published
U.S. federal, state or local superfund site
list or any other similar list of hazardous or toxic waste sites
published by any governmental entity in the United
States; and |
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(iv) there are no underground storage tanks located on, no
PCBs (polychlorinated biphenyls) or PCB-containing equipment
used or stored on, and no hazardous waste as defined by the
Resource Conservation and Recovery Act stored on, any site owned
or operated by Company, any Company Subsidiary or any
predecessor of Company or any Company Subsidiary, except for the
storage of hazardous waste in compliance with Environmental Laws. |
(b) Company has made available to Parent true and complete
copies of all material environmental records, reports,
notifications, certificates of need, permits, pending permit
applications, correspondence, engineering studies, and
environmental studies or assessments.
2.20 No Breach.
Except for (a) filings with the SEC, (b) filings with
the Secretary of State of Delaware contemplated herein and
(c) the filing of a Notification and Report Form under the
Hart-Scott-Rodino Antitrust Improvements Act, as amended
(the HSR Act) and any similar filings in foreign
jurisdictions, the execution, delivery and performance of this
Agreement by Company and the consummation by Company of the
transactions contemplated hereby will not (i) violate any
provision of the Certificate of Incorporation or By-laws of
Company, (ii) violate, conflict with or result in the
breach of any of the terms or conditions of, result in
modification of, or otherwise give any other contracting party
the right to terminate, accelerate obligations under or receive
payment under or constitute (or with notice or lapse of time or
both constitute) a default under, any instrument, contract or
other agreement to which Company or any Company Subsidiary is a
party or to which any of them or any of their assets or
properties is bound or subject, (iii) violate any Law
applicable to Company or the Company Subsidiaries or by which
any of Companys or the Company Subsidiaries assets
or properties is bound, (iv) violate any Company Permit,
(v) require any filing with, notice to, or permit, consent
or approval of, any governmental or regulatory body,
(vi) result in the creation of any lien or other
encumbrance on the assets or properties of Company or a Company
Subsidiary, or (vii) cause any of the assets owned by
Company or any Company Subsidiary to be reassessed or revalued
by any taxing authority or other governmental entity, excluding
from the foregoing clauses (ii), (iii), (iv), (vi) and
(vii) violations, breaches and defaults which, and filings,
notices, permits, consents and approvals the absence of which
would not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect, would not
reasonably be expected to materially interfere with the ability
of Company to consummate the transactions contemplated hereby or
would not materially increase the costs of consummation of the
Merger. Neither Company nor any Company Subsidiary is or will be
required to give any notice to or obtain any consent or waiver
from, any individual or entity in connection with the execution
and delivery of this Agreement or the consummation of the
transactions contemplated hereby other than failures that would
not reasonably be expected to have, individually or in the
aggregate, a Company Material Adverse Effect.
2.21 Board Approvals.
(a) The Company Board of Directors, as of the date of this
Agreement, has determined and resolved (i) that the Merger
is in the best interests of Company and its stockholders,
(ii) to propose this
A-25
Agreement for adoption by Companys stockholders and to
declare the advisability of this Agreement, and (iii) to
recommend that the stockholders of Company adopt this Agreement.
(b) Company has taken all action necessary such that no
restrictions contained in any fair price,
control share acquisition, business
combination or similar statute (including Section 203
of the DGCL) will apply to the execution, delivery or
performance of this Agreement.
2.22 Financial
Advisor.
(a) The Company Board of Directors has received the opinion
of Morgan Stanley & Co. Incorporated (Morgan
Stanley) to the effect that, as of the date of this
Agreement, the Exchange Ratio is fair, from a financial point of
view, to the holders of Company Common Stock; provided, however,
that Parent and Sub are not entitled to rely upon such opinion.
Company shall forward to Parent a copy of the written version of
such opinion promptly following receipt and in no event later
than two business days after the date of this Agreement.
(b) Other than Morgan Stanley, no broker, finder, agent or
similar intermediary has acted on behalf of Company in
connection with this Agreement or the transactions contemplated
hereby, and there are no brokerage commissions, finders
fees or similar fees or commissions payable in connection
herewith based on any agreement, arrangement or understanding
with Company, or any action taken by Company.
2.23 Interested Party
Transactions. Since the date of the filing of
Companys 2004 annual meeting proxy statement with the SEC,
no event has occurred that would be required to be reported by
Company pursuant to Item 404 of Regulation S-K
promulgated by the SEC that has not yet been included in a
Company SEC Report filed with the SEC prior to the date hereof.
2.24 Information
Supplied. None of the information supplied or to be
supplied by Company for inclusion or incorporation by reference
in the Registration Statement (as defined in
Section 4.7(a)) or for inclusion in any filing pursuant to
Rule 165 and Rule 425 under the Securities Act or
Rule 14a-12 under the Exchange Act (each a
Regulation M-A Filing), contains or will
contain, as applicable, at the time the Registration Statement
is filed with the SEC, at any time it is amended or supplemented
or at the time it becomes effective under the Securities Act or
at the time of the Regulation M-A Filing, any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the
statements therein not misleading. None of the information
supplied or to be supplied by Company for inclusion or
incorporation by reference in the Joint Proxy Statement/
Prospectus (as defined in Section 4.7(a)), on the date it
is first mailed to holders of Company Common Stock or holders of
Parent Common Stock or at the time of the Company Stockholders
Meeting, the Parent Stockholders Meeting or at the Effective
Time, contains or will contain, any untrue statement of a
material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were
made, not misleading.
ARTICLE III
REPRESENTATIONS AND
WARRANTIES OF PARENT AND SUB
Except as described in Parent SEC Reports (as defined in
Section 3.5) with specificity and with reference to
specific events, in each case exclusive of the third and fourth
paragraphs under Overview in Item 7 of the
Parent 10-K and other similar disclosures, and with respect to a
contract or agreement, filed as an exhibit to a Parent SEC
Report, on the disclosure schedule delivered by Parent to
Company on the date hereof (the Parent Disclosure
Schedule), the section numbers of which are numbered to
correspond to the section numbers of this Agreement to which
they refer, Parent and Sub represent and warrant to Company as
set forth below. For purposes of the representations and
warranties of Parent and Sub contained herein, disclosure in any
section of Parent Disclosure Schedule of any facts or
circumstances shall be deemed to be adequate response and
disclosure of such facts or circumstances with respect to all
representations or warranties by Parent and Sub calling for
disclosure of such information, whether or not such disclosure
is specifically associated with or purports to respond to one or
more or all
A-26
of such representations or warranties, if it is reasonably
apparent on the face of the Parent Disclosure Schedule that such
disclosure is applicable. The inclusion of any information in
any section of the Parent Disclosure Schedule or other document
delivered by Parent pursuant to this Agreement shall not be
deemed to be an admission or evidence of the materiality of such
item, nor shall it establish a standard of materiality for any
purpose whatsoever.
3.1 Organization and
Qualification.
(a) Each of Parent and each Parent Subsidiary (as defined
in Section 3.4(a)) is a corporation or other legal entity
duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization and has corporate or
similar power and authority to own, lease and operate its assets
and to carry on its business as now being and as heretofore
conducted. Each of Parent and each Parent Subsidiary is
qualified or otherwise authorized to transact business as a
foreign corporation or other organization in all jurisdictions
in which such qualification or authorization is required by law,
except for jurisdictions in which the failure to be so qualified
or authorized has not had and would not reasonably be expected
to have, individually or in the aggregate, a Parent Material
Adverse Effect. Parent Material Adverse Effect shall
mean any adverse effect on the assets, properties, business,
results of operations or financial condition of Parent or any
Parent Subsidiary or the ability of the Parent or any Parent
Subsidiary to complete the transactions contemplated hereby on
the terms set forth herein which, when taken together with all
other adverse events, facts or conditions with respect to which
such phrase is used in this Agreement, constitutes a material
adverse effect on (i) the assets, properties, business,
results of operations or financial condition of Parent and the
Parent Subsidiaries taken as a whole (provided that in no
event shall effects primarily resulting from any of the
following be taken into account in determining whether there is,
has been or is reasonably likely to be a Parent Material
Adverse Effect under this clause (i):
(A) conditions affecting the regional, national or global
economy or securities markets in general that do not have a
materially disproportionate impact on Parent and the Parent
Subsidiaries, (B) conditions affecting the industry in
which the Parent and the Parent Subsidiaries operate generally
that do not have a materially disproportionate impact on Parent
and the Parent Subsidiaries, (C) any change in the stock
price or trading volume of Parent Common Stock (it being
understood that the facts or occurrences giving rise or
contributing to such change may be deemed to constitute, or be
taken into account in determining whether there is, has been or
would reasonably likely be, a Parent Material Adverse Effect),
(D) any act of terrorism or war not specifically directed
at Parent and that does not have a materially disproportionate
impact on Parent, (E) the announcement of this Agreement
and the transactions contemplated hereby, (F) actions taken
or omissions to act with the prior written consent of Company,
(G) changes in laws of general applicability or
interpretations thereof by courts or governmental entities that
do not have a materially disproportionate impact on Parent and
the Parent Subsidiaries and (H) changes in generally
accepted accounting principles) or (ii) the ability of the
Parent or any Parent Subsidiary to complete the transactions
contemplated hereby on the terms set forth herein.
(b) Parent has previously made available to Company true
and complete copies of the charter and By-laws or other
organizational documents of Parent as presently in effect, and
none of Parent or any Parent Subsidiary is in default in the
performance, observation or fulfillment of its organizational
documents, except, in the case of Parent Subsidiaries, such
defaults that have not had and would not reasonably be expected
to have, individually or in the aggregate, a Parent Material
Adverse Effect.
3.2 Authority to Execute and
Perform Agreement. Parent has the corporate power and
authority to enter into, execute and deliver this Agreement and,
subject, in the case of the issuance of shares of Parent Common
Stock pursuant to the terms and conditions of this Agreement, to
the approval of the holders of Parent Common Stock, to perform
fully its obligations hereunder. The execution and delivery of
this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by the Parent
Board of Directors. No other action on the part of Parent is
necessary to consummate the transactions contemplated hereby
(other than approval of the issuance of shares of Parent Common
Stock pursuant to the terms and conditions of this Agreement by
the holders of Parent Common Stock). This Agreement has been
duly executed and delivered by Parent and constitutes a valid
and binding obligation of Parent, enforceable in accordance with
its terms subject to bankruptcy, insolvency, fraudulent transfer,
A-27
reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors rights
and to general equity principles. The affirmative approval of
the holders of a majority of the shares of Parent Common Stock
present at a meeting of holders of Parent Common Stock where at
least a quorum of such holders are present is the only vote of
holders of Parent capital stock required in connection with the
transactions contemplated hereby.
3.3 Capitalization and Title
to Shares.
(a) Parent is authorized to issue 100,000,000 shares
of Parent Common Stock, of which 45,316,497 shares were
issued and outstanding as of July 6, 2005. All of the
issued and outstanding shares of Parent Common Stock are duly
authorized, validly issued, fully paid, nonassessable and free
of pre-emptive rights. No shares of Parent Common Stock are held
in the Parents treasury.
(b) Parent has reserved 9,712,263 shares of Parent
Common Stock for issuance pursuant to all options to purchase
Parent Common Stock (Parent Options). Parent Options
to purchase 5,310,600 shares of Parent Common Stock
were outstanding as of July 6, 2005. Section 3.3(b) of
the Parent Disclosure Schedule includes a true and complete list
of all Parent Options outstanding as of July 6, 2005, which
schedule shows the underlying shares that have vested, and
whether the option is intended to be an incentive stock option.
Each stock option plan of Parent (including all amendments) has
been duly approved by Parents stockholders.
(c) Parent is authorized to issue 1,000,000 shares of
preferred stock, $0.01 par value per share (the
Parent Preferred Stock), one share of which is
issued and outstanding. Shares of Parent Preferred Stock have
been designated as Series A Junior Participating Preferred
Stock, all of which have been reserved for issuance upon
exercise of preferred stock purchase rights (the Parent
Rights) issuable pursuant to the Shareholders Rights
Agreement, dated as of July 23, 1997, between Parent and
Equiserve Trust Company, N.A., a national banking association,
as rights agent.
(d) Except for (i) shares indicated as issued and
outstanding on July 6, 2005 in Section 3.3(a),
(ii) shares issued after such date upon the exercise of
Parent Options listed in Section 3.3(b) of the Parent
Disclosure Schedule or granted after July 6, 2005 in the
ordinary course of business, (iii) shares issued upon the
conversion of Parents 4.75% convertible subordinated
notes due in 2008 or (iv) shares of Parent Common Stock and
Parent Options issued in compliance with Section 4.2, there
are not as of the date hereof, and at the Effective Time there
will not be, any shares of Parent Common Stock issued and
outstanding.
(e) Parents authorized capital stock consists solely
of Parent Common Stock described in Section 3.3(a) and
Parent Preferred Stock described in Section 3.3(c). There
are not as of the date hereof, and at the Effective Time there
will not be, authorized or outstanding any subscriptions,
options, conversion or exchange rights, warrants, repurchase or
redemption agreements, rights (including pursuant to a so-called
poison pill) or other agreements, claims or
commitments of any nature whatsoever obligating Parent to issue,
transfer, deliver or sell, or cause to be issued, transferred,
delivered, sold, repurchased or redeemed, additional shares of
the capital stock or other securities of Parent or obligating
Parent to grant, extend or enter into any such agreement, other
than Parent Options listed in Section 3.3(b) of the Parent
Disclosure Schedule or granted in the ordinary course of
business consistent with past practice since July 6, 2005
and the Parent Rights. To the knowledge of Parent, there are no
stockholder agreements, voting trusts, proxies or other
agreements, instruments or understandings with respect to the
voting of the capital stock of Parent. For the purposes of this
Agreement, the knowledge of Parent or to
Parents knowledge means the actual knowledge of one
or more executive officers of Parent.
(f) Neither Parent nor any Parent Subsidiary beneficially
owns any shares of capital stock of Company.
(g) Parent has no outstanding bonds, debentures, notes or
other indebtedness that have the right to vote on any matters on
which stockholders may vote.
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3.4 Parent
Subsidiaries.
(a) Section 3.4(a) of the Parent Disclosure Schedule
sets forth a true and complete list of the names and
jurisdictions of organization of each Parent Subsidiary. All
issued and outstanding shares or other equity interests of each
Parent Subsidiary are owned directly by Parent or a Parent
Subsidiary free and clear of any charges, liens, encumbrances,
security interests or adverse claims. As used in this Agreement,
Parent Subsidiary means any corporation, partnership
or other organization, whether incorporated or unincorporated,
(i) of which Parent or any Parent Subsidiary is a general
partner or (ii) at least 50% of the securities or other
interests having voting power to elect a majority of the board
of directors or others performing similar functions with respect
to such corporation, partnership or other organization are
directly or indirectly owned or controlled by Parent or by any
Parent Subsidiary, or by Parent and one or more Parent
Subsidiaries, provided, however, that for the
purposes of Article IV, the phrase at least 50%
in the foregoing definition shall be more than 50%..
(b) There are not as of the date hereof, and at the
Effective Time there will not be, any subscriptions, options,
conversion or exchange rights, warrants, repurchase or
redemption agreements, or other agreements, claims or
commitments of any nature whatsoever obligating any Parent
Subsidiary to issue, transfer, deliver or sell, or cause to be
issued, transferred, delivered, sold, repurchased or redeemed,
shares of the capital stock or other securities of Parent or any
Parent Subsidiary or obligating Parent or any Parent Subsidiary
to grant, extend or enter into any such agreement. To the
knowledge of Parent, there are no stockholder agreements, voting
trusts, proxies or other agreements, instruments or
understandings with respect to the voting of the capital stock
of any Parent Subsidiary.
(c) Section 3.4(c) of the Parent Disclosure Schedule
sets forth, for each Parent Joint Venture (as defined below),
the interest held by Parent and the jurisdiction in which such
Parent Joint Venture is organized. Interests in Parent Joint
Ventures held by Parent are held directly by Parent, free and
clear of any charges, liens, encumbrances, security interest or
adverse claims. The term Parent Joint Venture means
any corporation or other entity (including partnership, limited
liability company and other business association) that is not a
Parent Subsidiary and in which Parent or one or more Parent
Subsidiaries owns an equity interest (other than equity
interests held for passive investment purposes which are less
than 10% of any class of the outstanding voting securities or
other equity of any such entity).
3.5 SEC Reports.
(a) Parent previously has made available to Company
(i) its Annual Report on Form 10-K for the year ended
September 30, 2004 (the Parent 10-K), as filed
with the SEC, (ii) all proxy statements relating to
Parents meetings of stockholders held or to be held after
September 30, 2004 and (iii) all other documents filed
by Parent with, or furnished by Parent to, the SEC under the
Exchange Act, since January 1, 2002 and prior to the date
of this Agreement (the Parent SEC Reports). As of
their respective dates, such documents complied, and all
documents filed by Parent with the SEC between the date of this
Agreement and the Closing Date shall comply, in all material
respects, with applicable SEC requirements (including the
Sarbanes-Oxley Act of 2002 and the related rules and regulations
promulgated thereunder) and did not, or in the case of documents
filed on or after the date hereof will not, contain any untrue
statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which
they were made, not misleading. On and since January 1,
2002, Parent has timely filed, and between the date of this
Agreement and the Closing Date shall timely file, with the SEC
all documents required to be filed by it under the Exchange Act.
No Parent Subsidiary is required to file any form, report or
other document with the SEC.
(b) Parent has made available to Company a complete and
correct copy of any amendments or modifications which are
required to be filed with the SEC, but have not yet been filed
with the SEC, if any, to (i) Parent Agreements which
previously have been filed by Parent with the SEC pursuant to
the Securities Act or Exchange Act and (ii) Parent SEC
Reports filed prior to the date hereof. Parent has timely
responded to all comment letters and other correspondence of the
staff of the SEC relating to the Parent SEC Reports, and the SEC
has not notified Parent that any final responses are inadequate,
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insufficient or otherwise non-responsive. Parent has made
available to Company true and complete copies of all
correspondence between the SEC, on the one hand, and Parent and
any of the Parent Subsidiaries, on the other, occurring since
January 1, 2002 and prior to the date hereof and will,
reasonably promptly following the receipt thereof, make
available to Company any such correspondence sent or received
after the date hereof. To the knowledge of Parent, none of the
Parent SEC Reports is the subject of ongoing SEC review or
outstanding SEC comment.
3.6 Financial
Statements.
(a) The consolidated financial statements contained in the
Parent 10-K and in Parents quarterly report on
Form 10-Q for the quarter ended March 31, 2005 (the
Parent 10-Q) have been prepared from, and are in
accordance with, the books and records of Parent and present
fairly, in all material respects, the consolidated financial
condition and results of operations of Parent and Parent
Subsidiaries as of and for the periods presented therein, all in
conformity with GAAP, except as otherwise indicated therein and
subject in the case of the unaudited financial statements
included in the Parent 10-Q to normal year-end adjustments,
which in the aggregate are not material in amount, and the
absence of notes.
(b) Parent maintains a system of internal control
over financial reporting (as defined in
Rules 13a-15(f) of the Exchange Act) sufficient to provide
reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in conformity with
GAAP, that transactions are executed only in accordance with the
authorization of management and regarding prevention or timely
detection of the unauthorized acquisition, use or disposition of
Parents assets. Parents disclosure controls
and procedures (as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act) are reasonably designed to ensure
that all information (both financial and non-financial) required
to be disclosed by Parent in the reports that it files or
submits under the Exchange Act is recorded, processed,
summarized and reported within the time periods specified in the
rules and forms of the SEC, and that all such information is
accumulated and communicated to Parents management as
appropriate to allow timely decisions regarding required
disclosure and to make the certifications of the chief executive
officer and chief financial officer of Parent required under the
Exchange Act with respect to such reports. Parent is not a party
to, and does not have any commitment to become a party to, any
joint venture, off balance sheet partnership or any similar
contract (including any contract or arrangement relating to any
transaction or relationship between or among Parent, on the one
hand, and any unconsolidated affiliate, including any structured
finance, special purpose or limited purpose entity or person, on
the other hand or any off balance sheet arrangements
(as defined in Item 303(a) of Regulation S-K under the
Exchange Act)), where the result, purpose or intended effect of
such contract or arrangement is to avoid disclosure of any
material transaction involving, or material liabilities of,
Parent in Parents published financial statements or other
Parent SEC Reports. Since October 1, 2004, Parent has not
received any oral or written notification of any
(x) significant deficiency or
(y) material weakness in Parents internal
controls over financial reporting. There is no outstanding
significant deficiency or material
weakness which Parents independent accountants
certify has not been appropriately and adequately remedied by
Parent. For purposes of this Agreement, the terms
significant deficiency and material
weakness shall have the meanings assigned to them in
Release 2004-001 of the Public Company Accounting Oversight
Board.
3.7 Absence of Undisclosed
Liabilities. Parent has no liabilities of any nature,
whether accrued, absolute, contingent or otherwise, other than
liabilities (i) adequately reflected or reserved against on
the balance sheet (the Parent Balance Sheet) dated
September 30, 2004 included in the Parent 10-K or
adequately disclosed (in accordance with GAAP) in the notes
thereto, (ii) reflected in Parents unaudited balance
sheet dated March 31, 2005 included in the Parent 10-Q or
adequately disclosed (in accordance with GAAP) in the notes
thereto, (iii) incurred since March 31, 2005 in the
ordinary course of business or (iv) that have not had or
would not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect.
3.8 Absence of Adverse
Changes. Since September 30, 2004, there has not
been any change, event or circumstance that has had, or is
reasonably likely to have, individually or in the aggregate, a
Parent
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Material Adverse Effect. There has not been any action taken by
Parent or any Parent Subsidiary during the period from
September 30, 2004 through the date of this Agreement that,
if taken during the period from the date of this Agreement
through the Effective Time, would constitute a breach of
Section 4.2.
3.9 Compliance with
Laws.
(a) Parent and the Parent Subsidiaries have complied in a
timely manner and in all respects, with all Laws relating to any
of the property owned, leased or used by them, or applicable to
their business or products, except as has not had or would not
reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect.
(b) Parent and the Parent Subsidiaries including, to the
knowledge of Parent, their respective employees (to the extent
applicable) have obtained each federal, state, county, local or
foreign governmental consent, license, permit, grant or other
authorization of a governmental entity (i) pursuant to
which Parent or any Parent Subsidiary currently operates or
holds any interest in any of its properties or (ii) that is
required for the operation of the business of Parent or any of
its subsidiaries or the holding of any such interest ((i) and
(ii) are herein collectively called Parent
Permits), and all of such Parent Permits are valid and in
full force and effect, except where the failure to obtain or
have any such Parent Permit or for any such Parent Permit to be
valid and in full force and effect would not reasonably be
expected to have, individually or in the aggregate, a Parent
Material Adverse Effect; and no proceeding is pending or, to the
knowledge of Parent, threatened to revoke, suspend, cancel,
terminate, or adversely modify any material Parent Permit.
3.10 Actions and
Proceedings. Except as would not reasonably be expected
to have, individually or in the aggregate, a Parent Material
Adverse Effect: (i) there are no outstanding orders,
judgments, injunctions, decrees or other requirements of any
court, arbitrator or governmental or regulatory body against
Parent, any Parent Subsidiary or any of their securities, assets
or properties and (ii) there are no actions, suits or
claims or legal, administrative or arbitration proceedings
pending or, to the knowledge of Parent, threatened against
Parent, any Parent Subsidiary, or any of their securities,
assets or properties. To the knowledge of Parent, there is no
fact, event or circumstance now in existence that reasonably
could be expected to give rise to any action, suit, claim,
proceeding or investigation that would be reasonably expected to
have, individually or in the aggregate, a Parent Material
Adverse Effect or materially interfere with Parents
ability to consummate the transactions contemplated hereby.
There has not been nor are there currently any internal
investigations or inquiries being conducted by Parent or any
Parent Subsidiary, the Parent Board of Directors or any
committee thereof, or any third party at the request of any of
the foregoing concerning any financial, accounting, tax,
conflict or interest, self-dealing, fraudulent or deceptive
conduct or other misfeasance or malfeasance issues.
3.11 Contracts and Other
Agreements. There are no contracts or agreements that
are material contracts (as defined in Item 601(b)(10)) of
Regulation S-K to which Parent or any Parent Subsidiary is
a party or by which Parent or any Parent Subsidiary is bound
(the Parent Agreements) other than (a) Parent
Agreements identified on the exhibit indices of Parent SEC
Reports and (b) those Parent Agreements entered into by
Parent or a Parent Subsidiary after the date of this Agreement
in compliance with Section 4.1. Each Parent Agreement is
valid, subsisting, in full force and effect and is enforceable
against Parent or the applicable Parent Subsidiary, and, to the
knowledge of Parent, the other parties thereto in accordance
with its terms. Neither Parent or any Parent Subsidiary, nor to
the knowledge of Parent, any other party, is in breach of or in
default under any provision of any Parent Agreement, except for
breaches or defaults which have not had and are not reasonably
likely to have, individually or in the aggregate, a Parent
Material Adverse Effect. To Parents knowledge, no
condition or circumstance exists which would reasonably be
expected to constitute a default of a provision under any Parent
Agreement, except for defaults which have not had, and are not
reasonably likely to have, individually or in the aggregate, a
Parent Material Adverse Effect. True and complete copies of any
Parent Agreements listed on the Parent Disclosure Schedule
pursuant to this Section 3.11 and unredacted copies of any
Parent Agreements filed with the SEC pursuant to a confidential
treatment request have been provided to Company.
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(a) To the knowledge of Parent, no executive officer or
director of Parent has (whether directly or indirectly through
another entity in which such person has a material interest,
other than as the holder of less than 2% of a class of
securities of a publicly traded company) any material interest
in any property or assets of Parent (except as a stockholder) or
a Parent Subsidiary, any competitor, customer, supplier or agent
of Parent or a Parent Subsidiary or any person that is currently
a party to any Parent Agreement.
(b) Neither Parent nor any Parent Subsidiary is party to
any interest rate, equity or other swap or derivative instrument.
3.12 Intellectual
Property.
(a) Each of Parent and the Parent Subsidiaries owns, or is
validly licensed or otherwise has the right to use all
Proprietary Rights which are used in the conduct of the business
of Parent and the Parent Subsidiaries, or without which Parent
or the Parent Subsidiaries would be infringing,
misappropriating, or violating a third partys Proprietary
Rights, in each case free and clear of all Liens. Parent and
each of the Parent Subsidiaries have taken all reasonable steps
it believes to be required in accordance with sound business
practices to establish and preserve its ownership of all
Proprietary Rights with respect to its products, services and
technology. Parent and the Parent Subsidiaries have the right to
sell their products and services (whether now offered for sale
or under development) free from any royalty or other obligations
to third parties.
(b) Section 3.12(b) of the Parent Disclosure Schedule
identifies all patents and patent applications, all registered
trademarks and trademark applications, and all registered
copyrighted works and mask works owned by Parent and the Parent
Subsidiaries. With respect to each item required to be so
identified on Section 3.12(b) of the Parent Disclosure
Schedule: (i) Parent or a Parent Subsidiary owns (free and
clear of any claim, lien, charges and legal duties, including
duties owed to any third party under tort law, pursuant to any
contract or agreement, or stemming from any Proprietary Right)
each such item; (ii) the item is not subject to any
outstanding injunction, judgment, order, decree, ruling, or
charge; (iii) no action is pending or, to the knowledge of
Parent, threatened, which challenges the legality, validity,
enforceability, use, or ownership of the item; and
(iv) Parent owns, uses and can transfer control of the item
pursuant to the terms of this Agreement without any breach or
violation of any contract or agreement or any applicable Laws,
in each case except where any such failure to possess clear
title or any such outstanding injunction, judgment, order,
decree, ruling, charge or action or the failure of Parent to
own, use or be able to transfer control of such item would not
reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect.
(c) Section 3.12(c) of the Parent Disclosure Schedule
identifies all trade secrets, unregistered copyrightable works
and other unpatented proprietary technologies that are material
to the conduct of the business of Parent and the Parent
Subsidiaries, taken as a whole. With respect to each item
required to be listed on Section 3.12(c) of the Parent
Disclosure Schedule and the source code of any software owned or
exclusively licensed by Parent (as opposed to software licensed
from third parties on a non-exclusive basis), Parent and the
Parent Subsidiaries have not disclosed any material portion of
such Proprietary Rights to any third party.
(d) Except as would not reasonably be expected to have,
individually or in the aggregate, a Parent Material Adverse
Effect:
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(i) to the knowledge of Parent, (A) the business
conducted by Parent and the Parent Subsidiaries does not
infringe upon the Proprietary Rights of any third party, and
(B) none of Parent or any the Parent Subsidiaries has
infringed upon, misappropriated or otherwise violated the
Proprietary Rights of any third party; |
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(ii) Parent has never received any written charge,
complaint, claim, demand or notice alleging any such
infringement, misappropriation, or violation (including any
claim that Parent or a Parent Subsidiary must license or refrain
from using any Proprietary Rights of any third party); |
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(iii) no claims are pending or, to the knowledge of Parent
threatened, that Parent or any of its Subsidiaries is infringing
(including with respect to the manufacture, use or sale by
Parent or any of its Subsidiaries of their respective commercial
products and services) the Proprietary Rights of any
person; and |
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(iv) as of the date of this Agreement, to the knowledge of
Parent, no person or entity has infringed upon, misappropriated
or otherwise violated the Proprietary Rights of Parent or any of
its Subsidiaries. |
(e) To the knowledge of Parent, none of the activities of
the employees of Parent or any Parent Subsidiary on behalf of
such entity violates any agreement or arrangement which any such
employees have with former employers. All employees and
consultants who contributed to the discovery or development of
any of the Proprietary Rights used in the conduct of the
business of Parent and the Parent Subsidiaries did so pursuant
to written agreements assigning all Proprietary Rights arising
therefrom to Parent or a Parent Subsidiary.
(f) No agreement pursuant to which Parent or any Parent
Subsidiary holds, uses or licenses material Proprietary Rights
contains change of control or other provisions that would, as a
result of the Merger: (i) cause the termination of such
agreement or allow any other party to such agreement to
terminate the agreement or (ii) effect any change in such
agreement adverse to Parent.
(g) Parent and the Parent Subsidiaries have complied in all
material respects with all applicable contractual and legal
requirements pertaining to information privacy and security. To
the knowledge of Parent, no complaint relating to an improper
use or disclosure of, or a breach in the security of, any such
information has been made or threatened against Parent or any
Parent Subsidiary. To the knowledge of Parent, there has been
no: (i) unauthorized disclosure of any material third party
proprietary or confidential information in the possession,
custody or control of Parent or a Parent Subsidiary, or
(ii) material breach of Parents or any
Subsidiarys security procedures wherein confidential
information has been disclosed to a third person.
(h) None of Parents material Proprietary Rights
constitutes or is dependent on any open source computer code,
none of Parents products incorporates, imbeds, or is
bundled with any open source computer code, and none of
Parents material Proprietary Rights is subject to any
license or other contractual obligation that would require
Parent to divulge to any person any source code or trade secret
that is part of Parents Proprietary Rights.
3.13 Assets.
(a) Parent and each Parent Subsidiary has all material
assets, properties, rights and contracts necessary to permit
Parent and the Parent Subsidiaries to conduct their business as
it is currently being conducted. Parent and each Parent
Subsidiary has good and marketable title to all of its
properties, interests in properties and assets, real and
personal, reflected in the Parent Balance Sheet (except
properties, interests in properties and assets sold or otherwise
disposed of since the Parent Balance Sheet Date in the ordinary
course of business consistent with past practice), or with
respect to leased properties and assets, valid leasehold
interests in such properties and assets, in each case, free and
clear of all imperfections of title, restrictions,
encroachments, liens and easements, except Permitted
Encumbrances. The buildings, property and equipment of Parent
and each Parent Subsidiary that are used in the operations of
business are (i) in good operating condition and repair and
(ii) have been maintained in accordance with normal
industry practices.
(b) Section 3.13(b) of the Parent Disclosure Schedule
lists all real property owned in fee by Parent and each Parent
Subsidiary (Parent Owned Real Property). Parent or a
Parent Subsidiary has indefeasible fee simple title in and to
Parent Owned Real Property, free and clear of all liens and
encumbrances except for Permitted Encumbrances.
(c) Section 3.13(c) of the Parent Disclosure Schedule
lists all real property leased by Parent and each Parent
Subsidiary (the Parent Leased Real Property, and
together with Parent Owned Real
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Property, the Parent Real Property). True and
complete copies of all leases with respect to Parent Leased Real
Property (the Parent Real Property Leases) in excess
of 40,000 square feet have been provided to Company. Each
lease set forth on Section 3.13(c) is valid, subsisting, in
full force and effect and is enforceable against Parent or the
applicable Parent Subsidiary, and, to the knowledge of Parent,
the other parties thereto in accordance with its terms. Neither
Parent or any Parent Subsidiary, nor to the knowledge of Parent,
any other party, is in breach of or in default under any
provision of any Parent Real Property Lease, except for breaches
or defaults which have not had, and are not reasonably likely to
have, individually or in the aggregate, a Parent Material
Adverse Effect. To the knowledge of Parent, no condition or
circumstance exists which would reasonably be expected to
constitute a default of a provision under any Parent Real
Property Lease, except for those conditions or circumstances
that have not had or would not reasonably be expected to have,
individually or in the aggregate, a Parent Material Adverse
Effect.
(d) There are no written or oral subleases, licenses,
occupancy agreements, rights of first offer, rights of first
refusal or other contractual obligations that grant the right of
use or occupancy of Parent Real Property, and there is no person
in possession of Parent Real Property other than Parent and the
Parent Subsidiaries. There is no pending, or, to the knowledge
of Parent, threatened, eminent domain, condemnation or similar
proceeding materially affecting any Parent Real Property.
3.14 Insurance.
Parent (or one of the Parent Subsidiaries) now maintains in full
force and effect, and has maintained during the immediately
preceding three-year period, policies of insurance that to the
Parents knowledge are reasonably adequate with respect to
all material properties, assets and business activities of
Parent and each of the Parent Subsidiaries against such
casualties, risks, and contingencies as are customarily insured
against by entities owning similar properties or assets or
engaged in similar business activities. There are no material
outstanding unpaid claims under any of such policies of
insurance.
3.15 Commercial
Relationships. None of Parents or the Parent
Subsidiaries material customers, suppliers, collaborators,
distributors, licensors or licensees has canceled or otherwise
terminated its relationship with Parent or a Parent Subsidiary
or has, during the last twelve months, altered its relationship
with Parent or a Parent Subsidiary, except as would not
reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect. To Parents
knowledge, there is not plan or intention of any such entity,
and Parent has not received any threat or notice from any such
entity, to terminate, cancel or otherwise materially modify its
relationship with Parent or a Parent Subsidiary.
3.16 Tax Matters.
(a) All Tax Returns required to be filed by or with respect
to Parent and the Parent Subsidiaries have been filed within the
time and in the manner prescribed by law. All such Tax Returns
are true, correct and complete in all material respects, and all
Taxes owed by Parent or the Parent Subsidiaries, whether or not
shown on any Tax Return, have been paid. Parent and the Parent
Subsidiaries file Tax Returns in all jurisdictions where they
are required to so file, and no claim has ever been made in
writing by any taxing authority in any other jurisdiction that
Parent or the Parent Subsidiaries are or may be subject to
taxation by that jurisdiction.
(b) There are no material liens or other encumbrances with
respect to Taxes upon any of the assets or properties of Parent
or the Parent Subsidiaries, other than with respect to Taxes not
yet due and payable.
(c) No material audit or proceeding is currently pending
or, to the knowledge of the Parent, threatened, with respect to
any Tax Return of Parent or the Parent Subsidiaries. No material
deficiency for any Taxes has been proposed in writing against
Parent or the Parent Subsidiaries, which deficiency has not been
paid in full.
(d) There are no outstanding agreements, waivers or
arrangements extending the statutory period of limitation
applicable to any claim for, or the period for the collection or
assessment of, material Taxes due from or with respect to Parent
or the Parent Subsidiaries for any taxable period, no power of
attorney
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granted by or with respect to Parent or the Parent Subsidiaries
relating to material Taxes is currently in force.
(e) With respect to any period for which Tax Returns have
not yet been filed, or for which Taxes are not yet due or owing,
Parent has, in accordance with GAAP, made due and sufficient
accruals for such Taxes (excluding any deferred
taxes or similar items that reflect timing differences
between tax and financial accounting principles) in
Parents books and records. All Taxes attributable to the
period beginning after March 31, 2005 have been incurred in
the ordinary course of the Parents business.
(f) All material withholding and payroll Tax requirements
required to be complied with by Parent and the Parent
Subsidiaries (including requirements to deduct, withhold and pay
over material amounts to any governmental authority in
connection with material amounts paid or owing to any employee,
independent contractor, creditor, stockholder or other third
party and to comply in all material respects with any associated
record keeping and reporting requirements) have been satisfied.
(g) Parent and the Parent Subsidiaries are not party to or
bound by, nor do they have any obligation under, any Tax sharing
agreement or similar contract or arrangement among members of a
consolidated, combined or unitary group other than a group of
which Parent is the common parent. Neither Parent nor any Parent
Subsidiary has any liability for the Taxes of any other person
other than a group of which Parent is the common parent under
Treasury Regulation 1.1502-6 (or any similar provision of
state, local or foreign law), as a transferee or successor, by
contract, or otherwise.
(h) Neither Parent nor any Parent Subsidiary has made any
payments, or has been or is a party to any agreement, contract,
arrangement or plan that could result in it making payments,
that have resulted or would result, separately or in the
aggregate, in the payment of any excess parachute
payment within the meaning of Code Section 280G or in
the imposition of an excise Tax under Code Section 4999 (or
any corresponding provisions of state, local or foreign Tax law)
or that could result in it making payments that were not or
would not be deductible under Code Sections 162(m). Neither
Parent nor any Parent Subsidiary has agreed to, or is required
to, make any adjustments under Section 481 of the Code by
reason of a change in accounting method or otherwise.
(i) Neither Parent nor any Parent Subsidiary has
distributed stock of another corporation, or has had its stock
distributed by another corporation, in a transaction that was
governed, or purported or intended to be governed, in whole or
in part, by Code Section 355 or 361.
(j) Parent has delivered or made available to Company
(i) complete and correct copies of all Tax Returns,
examination reports and statements of deficiencies assessed
against or agreed to by Parent or any Parent Subsidiary with
respect to the prior three (3) taxable years.
(k) Neither Parent nor any Parent Subsidiary has
participated in any reportable transaction within
the meaning of U.S. Treasury
Regulation Section 1.6011-4.
3.17 Employee Benefit
Plans.
(a) Section 3.17(a) of the Parent Disclosure Schedule
contains a complete list of all material pension, savings,
profit sharing, retirement, deferred compensation, employment,
welfare, fringe benefit, insurance, short and long term
disability, medical, death benefit, incentive, bonus, stock,
vacation pay, severance pay and similar plans, programs or
arrangements (the Parent Plans) (other than oral
employment agreements that (i) do not constitute an
employee benefit plan within the meaning of
Section 3(3) of ERISA or (ii), individually or in the
aggregate, are not material), including all employee benefit
plans as defined in Section 3(3) of ERISA, maintained by
Parent, the Parent Subsidiaries or a Parent ERISA Affiliate (as
defined below) or to which Parent, any of the Parent
Subsidiaries or a Parent ERISA Affiliate are parties or required
to contribute or have any material obligation. Parent
ERISA Affiliate means (i) any corporation included
with Parent in a controlled group of corporations within the
meaning of Section 414(b) of the Code; (ii) any trade
or business (whether or not incorporated) that is under common
control with Parent within the meaning of Section 414(c) of
the Code; (iii) any member of an affiliated service group
of which Parent or any Parent Subsidiary is a member within the
meaning of
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Section 414(m) of the Code; or (iv) any other person
or entity treated as aggregated with Parent under
Section 414(o) of the Code.
(b) Parent has delivered or made available to Company
current, accurate and complete copies of (i) each Parent
Plan that has been reduced to writing and all amendments
thereto, (ii) a summary of the material terms of each
Parent Plan that has not been reduced to writing, including all
amendments thereto, (iii) the summary plan description for
each Parent Plan subject to Title I of ERISA, and in the
case of each other Parent Plan, any similar employee summary
(including but not limited to any employee handbook
description), (iv) for each Parent Plan intended to be
qualified under Section 401(a) of the Code, the most recent
determination or opinion letter issued by the IRS, (v) for
each Parent Plan with respect to which a Form 5500 series
annual report/return is required to be filed, the most recently
filed such annual report/return and the annual reports/returns
for the two preceding years, together with all schedules and
exhibits, (vi) all insurance contracts, administrative
services contracts, trust agreements, investment management
agreements or similar agreements maintained in connection with
any Parent Plan, and (vii) for each Parent Plan that is
intended to be qualified under Code Section 401(a), copies
of compliance testing results (including nondiscrimination
testing (401(a)(4), ADP and ACP), 402(g), 415 and top-heavy
tests) for the 2004 plan year.
(c) There is no entity (other than Parent or any Parent
Subsidiary) that together with Parent or any Parent Subsidiary
would be treated as a single-employer within the meaning of
Section 414(b), (c), (m) or (o) of the Code or
Section 4001(b) of ERISA.
(d) Each Parent Plan maintained by Parent, a Parent
Subsidiary or a Parent ERISA Affiliate which is intended to be
qualified under Section 401(a) of the Code has received an
IRS determination letter to the effect that the Parent Plan is
so qualified, and, to the knowledge of the Parent, there is no
fact or circumstance that could reasonably be expected to result
in the revocation of such letter. Each Parent Plan has been
administered in all material respects in accordance with the
terms of such Parent Plan and the provisions of any and all
statutes, orders or governmental rules or regulations, including
ERISA and the Code, and to the knowledge of Parent, nothing has
been done or not done with respect to any Parent Plan that could
result in any material liability on the part of Parent or any
Parent Subsidiary under Title I of ERISA or Chapter 43
of the Code. None of the Parent Plans is currently under
examination by the IRS, Department of Labor or other
U.S. government agency or department, nor, is any such
examination pending or, to the knowledge of the Parent,
threatened. There are no lawsuits, claims or controversies
pending, or to the knowledge of the Parent, threatened (other
than claims in the ordinary course of business consistent with
past practice) with respect to any Parent Plan that could
reasonably be expected to result in material liability to the
Parent. All contributions, premiums and other amounts due to or
in connection with each Parent Plan under the terms of the
Parent Plan or applicable law have been timely made, and to the
extent not yet due, accrued on the financial statements of
Parent in accordance with GAAP.
(e) Any Parent Plan subject to Title IV of ERISA with
respect to which the Parent or any Parent Subsidiary has any
liability is listed on Section 3.17(e) of the Parent
Disclosure Schedule. The actuarial valuation with respect to
each such Parent Plan, as of January 1, 2004, has been
provided to Company and, to the knowledge of Company, the
material facts underlying such valuation remain true and correct
as of the date hereof. Specifically, but not in limitation of
the foregoing, to the knowledge of Company, there have been no
material changes in such facts including with respect to the
census of employees, former employees and retirees, the fair
market value of plan assets and the provisions of the plan on
which the valuation is based. All contributions described in the
valuation report with respect to periods prior to the Closing
Date have been made in the amounts and at the dates suggested by
the actuaries therein. There has been no waiver of any
accumulated funding deficiency requested or granted with respect
to any Parent Plan subject to Section 412 of the Code or
Section 302 of ERISA. No such Parent Plan is obligated or
is reasonably expected to be required to make deficit
reduction contributions as defined in
Section 412(l)(12) of the Code. No reportable event (within
the meaning of Section 4043) of ERISA, whether or not
waived by regulations, has occurred with respect to any Parent
Plan that is subject to Title IV of ERISA.
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(f) Except for continuation of health coverage to the
extent required under Section 4980B of the Code or
Section 601 et seq. of ERISA, other applicable law or as
otherwise set forth in this Agreement, there are no obligations
under any Parent Plan providing welfare benefits after
termination of employment.
(g) Except for individual employment agreements, each
Parent Plan can be amended, modified or terminated without
advance notice to or consent by any employee, former employee or
beneficiary, except as required by law.
(h) Neither Parent nor any of the Parent Subsidiaries nor
any Parent ERISA Affiliate has ever maintained, sponsored,
contributed to, been required to contribute to, or incurred any
liability under any:
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(i) multi-employer plan as defined in Section 3(37) or
Section 4001(a)(3) of ERISA, |
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(ii) multiple employer plan as defined in
Section 413(c) of the Code, or any plan that has two or
more contributing sponsors at least two of whom are not under
common control, within the meaning of Section 4063(a) of
ERISA, |
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(iii) welfare benefit fund within the meaning of
Section 419(e) of the Code, or |
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(iv) voluntary employees beneficiary association,
within the meaning of Section 501(c)(9) of the Code. |
(i) No employee of, consultant to, or other provider of
services to Parent, any Parent Subsidiary, or any Parent ERISA
Affiliate will be entitled to any material payment becoming due
from any Parent Plan, any additional benefit or the acceleration
of the payment or vesting of any benefit under any Parent Plan
by reason of the execution of this Agreement and the
consummation of the transactions contemplated hereby.
(j) Neither Parent nor any Parent Subsidiary nor any Parent
ERISA Affiliate has any leased employees within the
meaning of Section 414(n) of the Code or any independent
contractors or other individuals who provide employee-type
services but who are not recognized by Parent as employees of
Parent.
(k) Any Parent Plan that is a plan or arrangement to
provide unfunded nonqualified deferred compensation is
specifically identified in Section 3.17(a) of the Parent
Disclosure Schedule. A list of participants in such Parent Plan,
together with the projected account balances or accrued benefits
with respect to each such participant as of the of Closing, are
set forth in Section 3.17(k) of the Parent Disclosure
Schedule. The actuarial valuation (if applicable) with respect
to each such Parent Plan that is an unfunded nonqualified
deferred compensation plan, as of January 1, 2004, has been
provided to Company and, to the knowledge of Parent, the
material facts underlying such valuation remain true and correct
as of the date hereof. Specifically, but not in limitation of
the foregoing, to the knowledge of Parent, there have been no
material changes in such facts including with respect to the
census of employees, former employees and retirees, and the
provisions of the plan on which the valuation is based. Each
Parent Plan that is a nonqualified deferred compensation
plan (as defined under Section 409A(d)(1) of the
Code) has been operated and administered in good faith
compliance with Section 409A from the period beginning
January 1, 2005 through the date hereof and has not been
materially modified since October 2, 2004.
(l) Each Parent Plan maintained for employees of Parent
outside of the United States (each a Parent Foreign
Plan) has been administered in all material respects in a
manner that satisfies all applicable Laws. All contributions to
each Parent Foreign Plan required to be made on or before the
Closing have been and will be made by Parent or a Parent
Subsidiary prior to the Closing. Each Parent Foreign Plan is
either fully funded (or fully insured) based upon generally
accepted local actuarial and accounting practices and procedures
or accruals for each Parent Foreign Plan have been made in
Parents financial statements. There are no pending
investigations by any governmental entity involving any Parent
Foreign Plan nor any pending claims (except for claims for
benefits payable in the normal operation of the Parent Foreign
Plans), suits or proceedings against any Parent Foreign Plan or
asserting any rights or claims to benefits under any Parent
Foreign Plan. The consummation of the transactions contemplated
by
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this Agreement will not by itself create or otherwise result in
any material liability with respect to any Parent Foreign Plan.
3.18 Employee
Relations.
(a) Upon termination of the employment of any employees of
the Parent or any Parent Subsidiary, none of Company, the
Company Subsidiaries, the Surviving Corporation, Parent or the
Parent Subsidiaries will be liable, by reason of the Merger or
anything done at or before the Effective Time in connection with
the Merger, to any of such employees for severance pay or any
other similar payments (other than accrued salary, vacation or
sick pay in accordance with normal policies). True and complete
information as to the name, current job title and compensation
for the current year of all current directors and executive
officers of Parent has been provided to Company.
(b) Except for matters that have not had or would not
reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect, Parent and each
Parent Subsidiary (i) is in compliance in all respects with
all Laws respecting employment, employment practices, terms and
conditions of employment and wages and hours, in each case, with
respect to employees, (ii) has withheld all amounts
required by law or by agreement to be withheld from the wages,
salaries and other payments to employees, (iii) is not
liable for any arrears of wages, salaries, commissions, bonuses
or other direct compensation for any services performed or
amounts required to be reimbursed to any employees or
consultants or any taxes or any penalty for failure to comply
with any of the foregoing, and (iv) is not liable for any
payment to any trust or other fund or to any governmental
entity, with respect to unemployment compensation benefits,
social security or other benefits or obligations for employees
(other than routine payments to be made in the ordinary course
of business and consistent with past practice).
(c) No work stoppage or labor strike against Parent or any
Parent Subsidiary is pending or, to the knowledge of Parent,
threatened. Neither Parent nor any Parent Subsidiary is involved
in or, to the knowledge of Parent, threatened with, any labor
dispute, grievance, or litigation relating to labor, safety or
discrimination matters involving any employee, including without
limitation charges of unfair labor practices or discrimination
complaints, that, if adversely determined, could reasonably be
expected to result in, individually or in the aggregate, a
Parent Material Adverse Effect. Neither Parent nor any Parent
Subsidiary has engaged in any unfair labor practices within the
meaning of the National Labor Relations Act that could
reasonably be expected to result in, individually or in the
aggregate, a Parent Material Adverse Effect. Neither Parent nor
any Parent Subsidiary is presently, nor has it been in the past,
a party to or bound by any collective bargaining agreement or
union contract with respect to employees, and no collective
bargaining agreement is being negotiated by Parent or any Parent
Subsidiary. No union organizing campaign or activity with
respect to non-union employees of Parent or any Parent
Subsidiary is ongoing, pending or, to the knowledge of Parent,
threatened.
3.19 Environmental
Matters. Except for those matters which have not had or
would not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect:
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(i) Parent and the Parent Subsidiaries are, and have been,
in compliance in all respects with all Environmental Laws; |
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(ii) there has been no release or threatened release of any
Hazardous Substance on, upon, into or from any site currently or
heretofore owned, leased or otherwise used by Parent, any Parent
Subsidiary or any predecessor of Parent or any Parent Subsidiary; |
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(iii) there have been no Hazardous Substances generated by
Parent, any Parent Subsidiary or any predecessor of Parent or
any Parent Subsidiary that have been disposed of or come to rest
at any site that has been included in any published
U.S. federal, state or local superfund site
list or any other similar list of hazardous or toxic waste sites
published by any governmental entity in the
United States; and |
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(iv) there are no underground storage tanks located on, no
PCBs (polychlorinated biphenyls) or PCB-containing equipment
used or stored on, and no hazardous waste as defined by the
Resource |
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Conservation and Recovery Act stored on, any site owned or
operated by Parent, any Parent Subsidiary or any predecessor of
Parent or any Parent Subsidiary, except for the storage of
hazardous waste in compliance with Environmental Laws. |
(b) Parent has made available to Company true and complete
copies of all material environmental records, reports,
notifications, certificates of need, permits, pending permit
applications, correspondence, engineering studies, and
environmental studies or assessments.
3.20 No Breach.
Except for (a) filings with the SEC, (b) filings with
the Secretary of State of Delaware contemplated herein, and
(c) the filing of a Notification and Report Form under the
HSR Act and any similar filings in foreign jurisdictions, the
execution, delivery and performance of this Agreement by Parent
and the consummation by Parent of the transactions contemplated
hereby will not (i) violate any provision of the
Certificate of Incorporation or By-laws of Parent,
(ii) violate, conflict with or result in the breach of any
of the terms or conditions of, result in modification of, or
otherwise give any other contracting party the right to
terminate, accelerate obligations under or receive payment under
or constitute (or with notice or lapse of time or both
constitute) a default under, any instrument, contract or other
agreement to which Parent or any Parent Subsidiary is a party or
to which any of them or any of their assets or properties is
bound or subject, (iii) violate any Law applicable to
Parent or the Parent Subsidiaries or by which any of
Parents or the Parent Subsidiaries assets or
properties is bound, (iv) violate any Parent Permit,
(v) require any filing with, notice to, or permit, consent
or approval of, any governmental or regulatory body,
(vi) result in the creation of any lien or other
encumbrance on the assets or properties of Parent or a Parent
Subsidiary, or (vii) cause any of the assets owned by
Parent or any Parent Subsidiary to be reassessed or revalued by
any taxing authority or other governmental entity, excluding
from the foregoing clauses (ii), (iii), (iv), (vi) and
(vii) violations, breaches and defaults which, and filings,
notices, permits, consents and approvals the absence of which
would not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect, would not
reasonably be expected to materially interfere with the ability
of Parent to consummate the transactions contemplated hereby or
would not materially increase the costs of consummation of the
Merger. Neither Parent nor any Parent Subsidiary is or will be
required to give any notice to or obtain any consent or waiver
from, any individual or entity in connection with the execution
and delivery of this Agreement or the consummation of the
transactions contemplated hereby other than failures that would
not reasonably be expected to have, individually or in the
aggregate, a Parent Material Adverse Effect
3.21 Board Approvals.
(a) The Parent Board of Directors, as of the date of this
Agreement, has determined and resolved (i) that the Merger
is in the best interests of Parent and its stockholders,
(ii) to propose that the stockholders of the Parent approve
the issuance of Parent Common Stock pursuant to the terms and
conditions of this Agreement, and (iii) to recommend that
the stockholders of Parent approve such issuance.
(b) Parent has taken all action necessary such that no
restrictions contained in any fair price,
control share acquisition, business
combination or similar statute (including Section 203
of the DGCL) will apply to the execution, delivery or
performance of this Agreement.
3.22 Financial
Advisor.
(a) The Parent Board of Directors has received the opinion
of Needham & Company, LLC to the effect that, as of the
date of this Agreement, the Exchange Ratio is fair, from a
financial point of view, to the Parent; provided, however, that
Company is not entitled to rely upon such opinion. Parent shall
forward to Company a copy of the written version of such opinion
promptly following receipt and in no event later than two
business days after the date of this Agreement.
(b) Other than Needham & Company, LLC and Credit
Suisse First Boston, no broker, finder, agent or similar
intermediary has acted on behalf of Parent in connection with
this Agreement or the transactions contemplated hereby, and
there are no brokerage commissions, finders fees or
similar fees or commissions payable in connection herewith based
on any agreement, arrangement or understanding with Parent, or
any action taken by Parent.
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3.23 Interested Party
Transactions. Since the date of the filing of
Parents 2004 annual meeting proxy statement with the SEC,
no event has occurred that would be required to be reported by
Parent pursuant to Item 404 of Regulation S-K
promulgated by the SEC that has not yet been included in a
Parent SEC Report filed with the SEC prior to the date hereof.
3.24 Sub. Sub is duly
organized, validly existing and in good standing as a Delaware
corporation. Sub has the corporate power and authority to enter
into, execute and deliver this Agreement and to perform fully
its obligations hereunder. The execution and delivery of this
Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by the board of directors and
stockholders of Sub, and no other action on the part of Sub is
necessary to consummate the transactions contemplated hereby.
This Agreement has been duly executed and delivered by Sub and
constitutes a valid and binding obligation of Sub, enforceable
in accordance with its terms.
3.25 Information
Supplied. None of the information supplied or to be
supplied by Parent for inclusion or incorporation by reference
in the Registration Statement or for inclusion in any Regulation
M-A Filing, contains or will contain, as applicable at the time
the Registration Statement is filed with the SEC, at any time it
is amended or supplemented or at the time it becomes effective
under the Securities Act or at the time of the
Regulation M-A Filing, any untrue statement of a material
fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not
misleading. None of the information supplied or to be supplied
by Parent for inclusion or incorporation by reference in the
Joint Proxy Statement/ Prospectus, on the date it is first
mailed to holders of Company Common Stock or holders of Parent
Common Stock or at the time of the Company Stockholders Meeting,
the Parent Stockholders Meeting or at the Effective Time,
contains or will contain, any untrue statement of a material
fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not
misleading.
ARTICLE IV
COVENANTS AND AGREEMENTS
4.1 Conduct of Company
Business. Except with the prior written consent of
Parent and except as explicitly contemplated herein or referred
to in Section 4.1 of the Company Disclosure Schedule,
during the period from the date hereof to the Effective Time,
Company shall observe the following covenants:
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(a) Affirmative Covenants Pending Closing.
Company shall and shall cause the Company Subsidiaries to: |
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(i) Preservation of Personnel. Use reasonable
commercial efforts to preserve intact and keep available the
services of present employees of Company and the Company
Subsidiaries as a group; |
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(ii) Insurance. Use reasonable commercial
efforts to keep in effect casualty, public liability,
workers compensation and other insurance policies in
coverage amounts substantially similar to those in effect at the
date of this Agreement; |
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(iii) Preservation of the Business; Maintenance of
Properties, Contracts. Use reasonable commercial efforts
to preserve the business of Company and to develop, advertise,
promote, market and sell Companys products, and use
reasonable commercial efforts to keep Companys properties
substantially intact, to preserve its goodwill and business, to
maintain all physical properties in such operating condition as
will permit the conduct of Companys business on a basis
consistent with past practice, and to perform and comply in all
material respects with the terms of the contracts referred to in
Section 2.11. |
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(iv) Intellectual Property Rights. Use its
reasonable best efforts to maintain, preserve and protect
Companys Proprietary Rights; |
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(v) Ordinary Course of Business. Operate
Companys business in the ordinary course consistent with
past practices; |
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(vi) Company Options. Take all reasonable
actions necessary with respect to Company Options to effectuate
the terms of this Agreement, provided, however, that Parent
shall have the right to approve any agreements to modify
material terms of the underlying instruments; and |
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(b) Negative Covenants Pending Closing.
Company shall not and shall cause the Company Subsidiaries not
to: |
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(i) Disposition of Assets. Sell or transfer,
or mortgage, pledge, lease, license or otherwise encumber any of
its assets, including its Proprietary Rights, other than sales
or transfers of inventory in the ordinary course of business and
other sales and transfers in amounts not exceeding, in the
aggregate, $250,0000; |
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(ii) Liabilities. (A) Incur any
indebtedness for borrowed money in excess of $250,000 in the
aggregate or (B) incur any obligation or liability or enter
into any contract or commitment involving potential payments to
or by Company or any Company Subsidiary in an amount aggregating
in excess of $250,000 other than in the ordinary course of
business consistent with past practice; |
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(iii) Compensation. Increase or agree to
increase the compensation payable to any officer, director,
employee, agent or consultant, or enter into any employment,
severance, retention or other agreement or arrangement with any
officer, director, employee, agent or consultant of Company or a
Company Subsidiary, or adopt, or increase the benefits
(including fringe benefits) under, any employee benefit plan or
otherwise, except (A), in each case, as required by law or in
accordance with existing agreements disclosed in the Company
Disclosure Schedule or filed as an exhibit to a Company SEC
Report and (B), in the case of compensation for employees,
agents or consultants who are not executive officers or
directors, in the ordinary course of business consistent with
past practice; or make any loans to any of its directors,
officers or employees, agents or consultants, or make any change
in its existing borrowing or lending arrangements for or on
behalf of any such persons pursuant to an employee benefit plan
or otherwise; |
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(iv) Capital Stock. Make any change in the
number of shares of Companys capital stock authorized,
issued or outstanding or grant or accelerate the exercisability
of any option, warrant or other right to purchase, or convert
any obligation into, shares of its capital stock, declare or pay
any dividend (other than in the ordinary course of business
consistent with past practice, including with respect to timing
and amount) or other distribution with respect to any shares of
its capital stock, reclassify, combine, split or subdivide any
of its capital stock or issue or authorize any other securities
in respect of, in lieu of or in substitution for shares of its
capital stock, sell or transfer any shares of its capital stock,
or redeem or otherwise repurchase any shares of its capital
stock, except upon the exercise of convertible securities
outstanding on July 6, 2005 and disclosed herein or in
connection with the grants of Company Options to purchase not
more than 75,000 shares of Company Common Stock after
July 6, 2005 with exercise prices equal to the trading
price of Company Common Stock on the date of grant in the
ordinary course of business consistent with past practice; |
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(v) Charter, By-laws, Directors and Officers.
Cause, permit or propose any amendment to the Certificate of
Incorporation or By-laws of Company or elect or appoint any new
directors or officers; |
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(vi) Acquisitions. Make, or permit to be
made, any acquisition, lease, investment, or capital
contribution in excess of $1,000,000 outside the ordinary course
of business consistent with past practice; |
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(vii) Capital Expenditures. Authorize any
single capital expenditure in excess of $250,000 or capital
expenditures which in the aggregate exceed $2,500,000; |
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(viii) Investments. Except for cash
management activities in the ordinary course of business,
purchase any securities or make any investment, either by
purchase of securities, contributions to capital, asset
transfers, or purchase of any assets (including any interests),
in any person (including joint ventures), or otherwise acquire
in any way direct or indirect control over any person, or agree
to do any of the foregoing, in one transaction or a series of
related transactions; |
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(ix) Accounting Policies. Except as may be
required as a result of a change in law or in GAAP, change any
of the accounting practices or principles used by it; |
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(x) Tax Treatment. Take, or permit any of the
Company Subsidiaries to take, any action that would prevent the
Merger from qualifying as a reorganization within the meaning of
Section 368(a) of the Code; |
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(xi) Taxes. Change any material Tax election
or settle or compromise any material federal, state, local or
foreign Tax liability, change any annual tax accounting period,
change any method of Tax accounting, enter into any closing
agreement relating to any material Tax or surrender any right to
claim a material Tax refund; |
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(xii) Legal. Commence, settle or compromise
any pending or threatened suit, action or claim which
(A) is material to Company and the Company Subsidiaries or
which relates to the transactions contemplated hereby,
(B) would involve material restrictions on the business
activities of Company or any Company Subsidiary, or
(C) would involve the issuance of Company securities; |
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(xiii) Extraordinary Transactions. Adopt a
plan of complete or partial liquidation, dissolution, merger,
consolidation, restructuring, recapitalization or other
reorganization of Company or any of the Company Subsidiaries
(other than the Merger); |
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(xiv) Payment of Indebtedness. Pay, discharge
or satisfy any material claims, liabilities or obligations
(absolute, accrued, asserted or unasserted, contingent or
otherwise), other than the payment, discharge or satisfaction,
in the ordinary course of business and consistent with past
practice, of liabilities reflected or reserved against in the
balance sheet included in the Company 10-Q or incurred in
the ordinary course of business; |
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(xv) WARN Act. Effectuate a plant
closing or mass layoff, as those terms are
defined in the Worker Adjustment and Retraining Notification Act
of 1988 or effectuate any similar action under any foreign law; |
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(xvi) New Agreements/ Amendments. Enter into,
terminate or materially modify, or permit a Company Subsidiary
to enter into, terminate or materially modify, any Company
Agreement other than a contract or agreement that is a Company
Agreement solely because it is described in
Item 601(b)(10)(iii) of Regulation S-K; |
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(xvii) Intellectual Property Rights. Fail to
pay any fee, take any action or make any filing reasonably
necessary to maintain material Proprietary Rights of Company
other than licenses of software to customers in the ordinary
course of business consistent with past practice; |
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(xviii) Confidentiality and Standstill
Agreements. Modify, amend or terminate, or waive,
release or assign any material rights or claims with respect to
any confidentiality or standstill agreement to which Company or
any Company Subsidiary is a party and which relates to a
business combination involving Company or any Company Subsidiary; |
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(xix) Changes to Takeover Defenses. Amend,
modify or waive any of Companys existing takeover defenses
or take any action to render any state takeover statutes
inapplicable to any transaction other than the transactions
contemplated by this Agreement; |
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(xx) Obligations. Obligate itself to do any
of the foregoing. |
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(c) Control of Companys Business.
Nothing contained in this Agreement shall give Parent, directly
or indirectly, the right to control or direct Companys
operations prior to the Effective Time. Prior to the Effective
Time, Company shall exercise, consistent with the terms and
conditions of this Agreement, complete control and supervision
over its operations. |
4.2 Conduct of Parent
Business. Except with the prior written consent of
Company and except as explicitly contemplated herein or referred
to in Section 4.2 of Parent Disclosure Schedule, during the
period from the date hereof to the Effective Time, Parent shall
observe the following covenants:
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(a) Affirmative Covenants Pending Closing.
Parent shall and shall cause the Parent Subsidiaries to: |
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(i) Preservation of Personnel. Use reasonable
commercial efforts to preserve intact and keep available the
services of present employees of Parent and the Parent
Subsidiaries as a group; |
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(ii) Insurance. Use reasonable commercial
efforts to keep in effect casualty, public liability,
workers compensation and other insurance policies in
coverage amounts substantially similar to those in effect at the
date of this Agreement; |
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(iii) Preservation of the Business; Maintenance of
Properties, Contracts. Use reasonable commercial efforts
to preserve the business of Parent and to develop, advertise,
promote, market and sell Parents products, and use
reasonable commercial efforts to keep Parents properties
substantially intact, to preserve its goodwill and business, to
maintain all physical properties in such operating condition as
will permit the conduct of Parents business on a basis
consistent with past practice, and to perform and comply in all
material respects with the terms of the contracts referred to in
Section 3.11. |
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(iv) Intellectual Property Rights. Use its
reasonable best efforts to maintain, preserve and protect
Parents Proprietary Rights; |
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(v) Ordinary Course of Business. Operate
Parents business in the ordinary course consistent with
past practices; |
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(b) Negative Covenants Pending Closing.
Parent shall not and shall cause the Parent Subsidiaries not to: |
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(i) Disposition of Assets. Sell or transfer,
or mortgage, pledge, lease, license or otherwise encumber any of
its assets, including its Proprietary Rights, other than sales
or transfers of inventory in the ordinary course of business and
other sales and transfers in amounts not exceeding, in the
aggregate, $1,000,000; |
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(ii) Liabilities. (A) Incur any
indebtedness for borrowed money in excess of $500,000 in the
aggregate or (B) incur any obligation or liability or enter
into any contract or commitment involving potential payments to
or by Parent or any Parent Subsidiary in an amount aggregating
in excess of $2,000,000 other than in the ordinary course of
business consistent with past practice; |
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(iii) Compensation. Increase or agree to
increase the compensation payable to any officer, director,
employee, agent or consultant, or enter into any employment,
severance, retention or other agreement or arrangement with any
officer, director, employee, agent or consultant of Parent or a
Parent Subsidiary, or adopt, or increase the benefits (including
fringe benefits) under, any employee benefit plan or otherwise,
except (A), in each case, as required by law or in accordance
with existing agreements disclosed in the Parent Disclosure
Schedule or filed as an exhibit to a Parent SEC Report and (B),
in the case of compensation for employees, agents or consultants
who are not executive officers or directors, in the ordinary
course of business consistent with past practice; or make any
loans to any of its directors, officers or employees, agents or
consultants, or make any change in its existing borrowing or
lending arrangements for or on behalf of any such persons
pursuant to an employee benefit plan or otherwise; |
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(iv) Capital Stock. Make any change in the
number of shares of Parents capital stock authorized,
issued or outstanding or grant or accelerate the exercisability
of any option, warrant or other right to purchase, or convert
any obligation into, shares of its capital stock, declare or pay
any dividend or other distribution with respect to any shares of
its capital stock, reclassify, combine, split or subdivide any
of its capital stock or issue or authorize any other securities
in respect of, in lieu of or in substitution for shares of its
capital stock, sell or transfer any shares of its capital stock,
or redeem or otherwise repurchase any shares of its capital
stock, except upon the exercise of convertible securities
outstanding on July 6, 2005 and disclosed herein or in
connection with the grant of Parent Options with exercises
prices equal to the trading price of Company Common Stock on the
date of grant or the grant of restricted Parent Common Stock for
compensatory purposes, in either case in the ordinary course of
business consistent with past practice; |
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(v) Charter, By-laws, Directors and Officers.
Cause, permit or propose any amendment to the Certificate of
Incorporation or By-laws of Parent or elect or appoint any new
directors or officers; |
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(vi) Acquisitions. Make, or permit to be
made, any acquisition, lease, investment, or capital
contribution in excess of $2,000,000 outside the ordinary course
of business consistent with past practice; |
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(vii) Capital Expenditures. Authorize any
single capital expenditure in excess of $1,000,000 or capital
expenditures which in the aggregate exceed $5,000,000; |
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(viii) Investments. Except for cash
management activities in the ordinary course of business,
purchase any securities or make any investment, either by
purchase of securities, contributions to capital, asset
transfers, or purchase of any assets (including any interests),
in any person (including joint ventures), or otherwise acquire
in any way direct or indirect control over any person, or agree
to do any of the foregoing, in one transaction or a series of
related transactions; |
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(ix) Accounting Policies. Except as may be
required as a result of a change in law or in GAAP, change any
of the accounting practices or principles used by it; |
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(x) Tax Treatment. Take, or permit any of the
Parent Subsidiaries to take, any action that would prevent the
Merger from qualifying as a reorganization within the meaning of
Section 368(a) of the Code; |
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(xi) Taxes. Change any material Tax election
or settle or compromise any material federal, state, local or
foreign Tax liability, change any annual tax accounting period,
change any method of Tax accounting, enter into any closing
agreement relating to any material Tax, or surrender any right
to claim a material Tax refund; |
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(xii) Legal. Commence, settle or compromise
any pending or threatened suit, action or claim which
(A) is material to Parent and the Parent Subsidiaries or
which relates to the transactions contemplated hereby,
(B) would involve material restrictions on the business
activities of Parent or any Parent Subsidiary, or (C) would
involve the issuance of Parent securities; |
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(xiii) Extraordinary Transactions. Adopt a
plan of complete or partial liquidation, dissolution, merger,
consolidation, restructuring, recapitalization or other
reorganization of Parent or any of the Parent Subsidiaries
(other than the Merger); |
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(xiv) Payment of Indebtedness. Pay, discharge
or satisfy any material claims, liabilities or obligations
(absolute, accrued, asserted or unasserted, contingent or
otherwise), other than the payment, discharge or satisfaction,
in the ordinary course of business and consistent with past
practice, of liabilities reflected or reserved against in the
balance sheet included in the Parent 10-Q or incurred in the
ordinary course of business; |
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(xv) WARN Act. Effectuate a plant
closing or mass layoff, as those terms are
defined in the Worker Adjustment and Retraining Notification Act
of 1988 or effectuate any similar action under any foreign law; |
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(xvi) New Agreements/ Amendments. Enter into,
terminate or materially modify, or permit a Parent Subsidiary to
enter into, terminate or materially modify, any Parent Agreement
other than a contract or agreement that is a Parent Agreement
solely because it is described in Item 601(b)(10)(iii) of
Regulation S-K; |
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(xvii) Intellectual Property Rights. Fail to
pay any fee, take any action or make any filing reasonably
necessary to maintain material Proprietary Rights of Parent
other than licenses of software to customers in the ordinary
course of business consistent with past practice; |
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(xviii) Changes to Takeover Defenses. Amend,
modify or waive any of Parents existing takeover defenses
or take any action to render any state takeover statutes
inapplicable to any transaction other than the transactions
contemplated by this Agreement; |
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(xix) Obligations. Obligate itself to do any
of the foregoing. |
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(c) Control of Parents Business.
Nothing contained in this Agreement shall give Company, directly
or indirectly, the right to control or direct Parents
operations prior to the Effective Time. Prior to the Effective
Time, Parent shall exercise, consistent with the terms and
conditions of this Agreement, complete control and supervision
over its operations. |
4.3 Corporate Examinations
and Investigations. Prior to the Effective Time, Parent
shall be entitled, through its employees and representatives, to
have such access to the assets, properties, business and
operations of Company as is reasonably necessary or appropriate
in connection with Parents investigation of Company with
respect to the transactions contemplated hereby and with respect
to the potential merger of the Surviving Corporation with and
into Parent, and Company shall be entitled, through its
employees and representatives, to have such access to the
assets, properties, business and operations of Parent as is
reasonably necessary or appropriate in connection with
Companys investigation of Parent with respect to the
transactions contemplated hereby. Any such investigation and
examination shall be conducted at reasonable times during
business hours upon reasonable advance notice and under
reasonable circumstances so as to minimize any disruption to or
impairment of Companys or Parents business, as
applicable, and Company and Parent shall cooperate fully
therein. No investigation by Parent or Company shall diminish or
obviate any of the representations, warranties, covenants or
agreements of Company or Parent, respectively, contained in this
Agreement. In order that Parent may have full opportunity to
make such investigation, Company shall furnish the
representatives of Parent during such period with all such
information and copies of such documents concerning the affairs
of Company as such representatives may reasonably request and
cause its officers, employees, consultants, agents, accountants
and attorneys to cooperate fully with such representatives in
connection with such investigation. In order that Company may
have full opportunity to make such investigation, Parent shall
furnish the representatives of Company during such period with
all such information and copies of such documents concerning the
affairs of Parent as such representatives may reasonably request
and cause its officers, employees, consultants, agents,
accountants and attorneys to cooperate fully with such
representatives in connection with such investigation. The
information and documents so provided shall be subject to the
terms of the confidentiality agreement, dated as of
April 22, 2005, between Parent and Company (as amended, the
Confidentiality Agreement).
4.4 Expenses. Except
as set forth in Section 8.2, Company and Parent shall each
bear their respective expenses incurred in connection with the
preparation, execution and performance of this Agreement and the
transactions contemplated hereby, including without limitation,
all fees and expenses of agents, representatives, counsel and
accountants, and except that each of Parent and Company shall
bear and pay one-half of (a) the costs and expenses
incurred in connection with the filing, printing and mailing of
the Registration Statement and the Joint Proxy Statement/
Prospectus (as defined in Section 4.7(a)) and (b) the
fee payable in connection with the filing of a Notification and
Report form under the HSR
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Act by Company and Parent and any fee payable in connection with
any competition or merger control filing in another jurisdiction.
4.5 Authorization from
Others. Prior to the Closing Date, the parties shall use
reasonable commercial efforts to obtain all authorizations,
consents and permits of others, necessary or desirable to permit
the consummation of the Merger on the terms contemplated by this
Agreement. Promptly following the execution and delivery of this
Agreement, Company and Parent shall provide all notices
contemplated under Company Agreement or Parent Agreements, as
applicable, and shall notify the other party when each
applicable notice period has expired.
4.6 Further
Assurances. Each of the parties shall execute such
documents, further instruments of transfer and assignment and
other papers and take such further actions as may be reasonably
required or desirable to carry out the provisions hereof and the
transactions contemplated hereby, including delivering customary
representation letters contemplated by Sections 6.4 and
7.4. Each party shall use its respective reasonable best efforts
to take other such actions to ensure that, to the extent within
its control or capable of influence by it, the transactions
contemplated by this Agreement shall be fully carried out in a
timely fashion, including preparing and filing any documents
required to be prepared and filed under the Exchange Act.
Without limiting the generality of the foregoing, Company agrees
to duly execute and deliver, and to use its commercially
reasonable efforts to cause any individual or entity listed as a
co-owner of, or who otherwise has any power of attorney or other
rights with respect to, any of the Proprietary Rights, to duly
execute and deliver such further instruments and do and cause to
be done such further actions and things, including, without
limitation, the execution of such additional assignments,
agreements, documents and instruments, that Parent may at any
time and from time to time reasonably request to more
effectively transfer ownership, control and/or administration of
such Proprietary Rights to the Surviving Corporation. Nothing in
this Agreement shall require Parent or Sub to, or to agree or
consent to, (a) sell, hold separate, license or otherwise
dispose of any material asset of Parent or the Surviving
Corporation or (b) conduct their business in a specified
manner, in either case whether as a condition to obtaining any
approval from a governmental entity or any other person or for
any other reason.
4.7 Preparation of Disclosure
Documents; Stockholders Meetings.
(a) As soon as practical following the date of this
Agreement, Company and Parent shall prepare the registration
statement on Form S-4 to be filed with the SEC in
connection with the issuance of shares of Parent Common Stock in
the Merger (the Registration Statement) and the
joint proxy statement/ prospectus included in the Registration
Statement (the Joint Proxy Statement/ Prospectus).
Company shall, in cooperation with Parent, file the Joint Proxy
Statement/ Prospectus with the SEC as its preliminary proxy
statement and Parent shall, in cooperation with Company, prepare
and file with the SEC the Registration Statement, in which the
Joint Proxy Statement/ Prospectus will be included. Each of
Company and Parent shall use reasonable commercial efforts to
have the Registration Statement declared effective under the
Securities Act as promptly as practicable after such filing and
to keep the Registration Statement effective as long as is
necessary to consummate the Merger. Company and Parent shall
each mail the Joint Proxy Statement/ Prospectus to its
stockholders as promptly as practicable after the Registration
Statement is declared effective under the Securities Act and, if
necessary, after the Joint Proxy Statement/ Prospectus shall
have been so mailed, promptly circulate supplemental or amended
proxy material, and, if required in connection therewith,
resolicit proxies.
(b) (i) Company shall, as soon as practicable
following the date the Registration Statement is declared
effective, duly call, give notice of, convene and hold a meeting
of its stockholders (the Company Stockholders
Meeting) for the purpose of obtaining the required
stockholder votes with respect to this Agreement (the
Company Stockholder Approval), (ii) the Company
Board of Directors, except as otherwise permitted pursuant to
Section 4.11, shall give its unqualified recommendation
that Companys stockholders adopt this Agreement and
(iii) unless the Company Board of Directors has made a
Company Adverse Recommendation Change (as defined in
Section 4.11(c)) in compliance with this Agreement, Company
shall take all lawful action to solicit proxies for such
adoption. No withdrawal, modification, change or qualification
in the recommendation of the Company Board of Directors (or any
committee of
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the Company Board of Directors) shall change the approval of the
Company Board of Directors for purposes of causing any state
takeover statute or other state law to be inapplicable to the
transactions contemplated hereby, or change the obligation of
Company to convene and hold the Company Stockholders Meeting or
to present the Merger Agreement for adoption at the Company
Stockholders Meeting. Nothing contained in this
Section 4.11(b) shall be deemed to limit Companys
right to terminate this Agreement pursuant to and in accordance
with Section 8.1(i).
(c) (i) Parent shall, as soon as practicable following
the date the Registration Statement is declared effective, duly
call, give notice of, convene and hold a meeting of its
stockholders (the Parent Stockholders Meeting) for
the purpose of obtaining the required stockholder votes with
respect to the issuance of shares of Parent Common Stock
pursuant to this Agreement (the Parent Stockholder
Approval), (ii) the Parent Board of Directors, except
as otherwise permitted in this Section 4.7(c), shall give
its unqualified recommendation that Parents stockholders
approve the issuance of shares of Parent Common Stock pursuant
to the terms and conditions of this Agreement and
(iii) unless the Parent Board of Directors has withdrawn,
modified, changed or qualified its recommendation that
Parents stockholders approve the issuance of shares of
Parent Common Stock pursuant to the terms and conditions of this
Agreement, Parent shall take all lawful action to solicit
proxies for such approval. Notwithstanding the foregoing, at any
time prior to the receipt of the Parent Stockholder Approval, if
the Parent Board of Directors, in the exercise of its fiduciary
duties, determines in good faith by a majority vote, after
consultation with its outside counsel, that it cannot provide an
unqualified recommendation or must withdraw, modify, change or
qualify its recommendation that Parents stockholders
approve the issuance of shares of Parent Common Stock pursuant
to this Agreement (a Parent Adverse Recommendation
Change) in order to comply with its fiduciary duties to
the stockholders of Parent under applicable Law (provided that
the Parent Board of Directors may not base this determination
primarily on changes in the stock price of Company or Parent
after the date of this Agreement, although it may base this
determination on the facts or occurrences giving rise or
contributing to such changes), the Parent Board of Directors may
make a Parent Adverse Recommendation Change after providing
Company with at least 24 hours prior notice of its
determination and a reasonably detailed description of the
reasons therefor. No Parent Adverse Recommendation Change shall
change any approval of the Parent Board of Directors for
purposes of causing any state takeover statute or other state
law to be inapplicable to the transactions contemplated hereby,
or change the obligation of Parent to convene and hold the
Parent Stockholders Meeting or to to propose that its
stockholders authorize the issuance of shares of Parent Common
Stock at the Parent Stockholders Meeting.
(d) Each of Company and Parent shall use their respective
reasonable best efforts to hold the Company Stockholders Meeting
and the Parent Stockholders Meeting on the same day and at the
same time.
(e) Except as required by law, no amendment or supplement
to the Joint Proxy Statement/ Prospectus or the Registration
Statement shall be made by Parent or Company without the
approval of the other party (which shall not be unreasonably
withheld, conditioned or delayed). Each party shall advise the
other party, promptly after it receives notice thereof, of the
time when the Registration Statement has become effective or any
supplement or amendment has been filed, of the issuance of any
stop order by the SEC, or of any request by the SEC for
amendment of the Joint Proxy Statement/ Prospectus or the
Registration Statement or comments thereon and responses thereto
or requests by the SEC for additional information.
(f) Company shall ensure that none of the information
supplied or to be supplied by Company for inclusion or
incorporation by reference in the Registration Statement or in
any Regulation M-A Filing will, at the time the
Registration Statement is filed with the SEC, at any time it is
amended or supplemented or at the time it becomes effective
under the Securities Act or at the time of the
Regulation M-A Filing, contain any untrue statement of a
material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading. Company shall ensure that none of the information
supplied or to be supplied by Company for inclusion or
incorporation by reference in the Joint Proxy Statement/
Prospectus, on the date it is first mailed to holders of Company
Common Stock or on
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the date it is first mailed to holders of Parent Common Stock,
will contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or
necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading.
(g) Parent shall ensure that none of the information
supplied or to be supplied by Parent for inclusion or
incorporation by reference in the Registration Statement will,
at the time the Registration Statement is filed with the SEC, at
any time it is amended or supplemented or at the time it becomes
effective under the Securities Act or at the time of the
Regulation M-A Filing, contain any untrue statement of a
material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not
misleading. Parent shall ensure that none of the information
supplied or to be supplied by Parent for inclusion or
incorporation by reference in the Joint Proxy Statement/
Prospectus, on the date it is first mailed to holders of Parent
Common Stock or on the date it is first mailed to holders of
Parent Common Stock, will contain any untrue statement of a
material fact or omit to state any material fact required to be
stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were
made, not misleading.
4.8 Public
Announcements. Company shall consult with Parent, and
Parent shall consult with Company, and each shall get the
approval of the other (which shall not be unreasonably withheld,
conditioned or delayed), before issuing any press release or
otherwise making any public statement with respect to the Merger
or this Agreement and shall not issue any such press release or
make any such public statement prior to such consultation and
approval, except as may be required by law. Notwithstanding the
foregoing, without prior consultation, each party (a) may
communicate with stockholders, financial analysts and media
representatives in a manner consistent with its past practice
and (b) may disseminate material substantially similar to
material included in a press release or other document
previously approved for external use by the other party. Each
party agrees to promptly make available to the other party
copies of any public written communications made without prior
consultation.
4.9 Affiliate
Letters. Company shall identify to Parent all persons
who Company believes may be affiliates of Company
within the meaning of Rule 145 under the Securities Act.
Company shall use reasonable commercial efforts to provide
Parent with such information as Parent shall reasonably request
for purposes of making its own determination of persons who may
be deemed to be affiliates of Company. Company shall use
reasonable commercial efforts to deliver to Parent a letter from
each of such affiliates identified by Company and Parent in
substantially the form attached hereto as Exhibit A (the
Affiliate Letters) as soon as practicable after the
date hereof but in no event later than the day preceding the
filing of the Registration Statement.
4.10 Nasdaq Listings.
Prior to the Closing Date, if required under the rules of The
Nasdaq Stock Market, Parent (i) shall file with The Nasdaq
Stock Market a Notification for Listing of Additional Shares
covering the shares of Parent Common Stock that Parent
reasonably expects, at the time of such filing, to be issued in
the Merger and (ii) shall take such actions as are
necessary so the shares of Parent Common Stock to be issued in
connection with the Merger are listed on the Nasdaq National
Market as of the Effective Time, subject to official notice of
issuance. Prior to the Closing Date, Company shall take such
actions as are necessary so that trading of Company Common Stock
on the Nasdaq National Market ceases at the close of regular
trading on the trading day on which the Effective Time is
expected to occur or if the Effective Time is not expected to
occur on a trading day, the immediately preceding trading day.
4.11 No Solicitation.
(a) Each of Company and its Representatives (as defined
below) has ceased and caused to be terminated all existing
discussions, negotiations and communications with any persons or
entities with respect to any offer or proposal or potential
offer or proposal relating to any transaction or proposed
transaction or series of related transactions, other than the
transactions contemplated hereby, involving: (A) any
acquisition or purchase from Company of more than a twenty
percent (20%) interest in the total outstanding voting
securities of Company or any tender offer or exchange offer that
if consummated would result in the acquisition or purchase of
twenty percent (20%) or more of the total outstanding voting
securities of Company, whether by purchase of stock,
consolidation, business combination merger or other
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similar transaction involving the Company, (B) any sale,
lease, exchange, transfer, license, acquisition or disposition
of assets of Company (including, without limitation, stock or
assets of Company or any Company Subsidiary by merger,
consolidation, recapitalization, spin-off, stock purchase, asset
purchase or otherwise) for consideration equal to twenty percent
(20%) or more of the aggregate fair market value of all of the
outstanding shares of Company Common Stock on the date prior to
the date hereof, whether by purchase of assets, consolidation,
business combination merger or other similar transaction
involving Company; or (C) any recapitalization,
restructuring, liquidation or dissolution of Company (each of
clauses (A)-(C), a Company Acquisition
Proposal). Except as provided in Section 4.11(b),
4.11(c) or 8.1(i), from the date of this Agreement until the
earlier of termination of this Agreement or the Effective Time,
Company shall not and shall not authorize or permit its
officers, directors, employees, investment bankers, attorneys,
accountants or other agents (collectively,
Representatives) to directly or indirectly
(i) initiate, solicit or knowingly encourage, or take any
action to knowingly facilitate the making of, any offer or
proposal which constitutes or is reasonably likely to lead to
any Company Acquisition Proposal, (ii) enter into any
agreement with respect to any Company Acquisition Proposal, or
(iii) engage in negotiations or discussions with, or
provide any information or data to, any person (other than
Parent or any of its affiliates or representatives) relating to
any Company Acquisition Proposal or grant any waiver or release
under any standstill or other agreement. Notwithstanding the
foregoing, nothing contained in this Section 4.11 or in
Section 4.8 or any other provision hereof shall prohibit
Company or the Company Board of Directors from (x) taking
and disclosing to Companys stockholders its position with
respect to any tender or exchange offer by a third party
pursuant to Rules 14d-9 and 14e-2 promulgated under the
Exchange Act, or (y) making such disclosure to
Companys stockholders as in the good faith judgment of the
Company Board of Directors, after receipt of advice from outside
legal counsel, is necessary to comply with applicable Law.
(b) Notwithstanding the foregoing, prior to the date of the
Company Stockholders Meeting, Company may (i) furnish
information concerning its business, properties or assets to any
person pursuant to a confidentiality agreement with terms no
less favorable to Company than those contained in the
Confidentiality Agreement and (ii) negotiate and
participate in discussions and negotiations with such person
concerning a Company Acquisition Proposal if the Company Board
of Directors determines in good faith by resolution duly
adopted, after consultation with outside legal counsel and a
financial advisor of nationally recognized reputation, that such
Company Acquisition Proposal constitutes or would reasonably be
expected to lead to a Company Superior Proposal (as defined
below), but only if such Company Acquisition Proposal did not
result from a breach of Section 4.11(a). For purposes of
this Agreement, a Company Superior Proposal means
any bona fide written proposal made by a third party
(i) involving the purchase or acquisition, directly or
indirectly of, all the shares of Company Common Stock or all or
substantially all of the assets of Company and (ii) which
is otherwise on terms which the Company Board of Directors
determines in good faith, by resolution duly adopted
(A) would result in a transaction that, if consummated, is
more favorable to holders of Company Common Stock, from a
financial point of view, than the transactions contemplated by
this Agreement (after consultation with a financial advisor of
nationally recognized reputation), taking into account all the
terms and conditions of such proposal and this Agreement
(including any proposal by Parent to amend the terms of this
Agreement) that the Company Board of Directors deems relevant
and (B) is reasonably capable of being completed on the
terms proposed, taking into account all financial, regulatory,
legal and other aspects of such proposal. Company shall promptly
(and in any case within 24 hours) (i) notify Parent of
any Company Superior Proposal, which notice shall include a copy
of such Company Superior Proposal, (ii) notify Parent upon
receipt of any inquiries, proposals or offers received by, any
request for information from, or any discussions or negotiations
sought to be initiated or continued with, Company or its
Representatives concerning a Company Acquisition Proposal or
that could reasonably be expected to lead to a Company
Acquisition Proposal and disclose the identity of the other
party and the material terms of such inquiry, offer, proposal or
request and, in the case of written materials, provide copies of
such materials and (iii) provide Parent with copies of all
written materials provided by Company to such party. Company
will keep Parent informed on a reasonably prompt basis (and, in
any case, within 24 hours of any significant development)
of the status and details (including amendments and proposed
amendments) of any such
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Company Superior Proposal or other inquiry, offer, proposal or
request. Company shall promptly, following a determination by
the Company Board of Directors that a Company Acquisition
Proposal is a Company Superior Proposal, notify Parent of such
determination.
(c) Neither the Company Board of Directors nor any
committee thereof may (i) withdraw or modify, or propose to
withdraw or modify, in a manner adverse to Parent or Sub, the
approval or recommendation by the Company Board of Directors or
any such committee of this Agreement or the Merger,
(ii) approve or recommend or propose to approve or
recommend any Company Acquisition Proposal or (iii) except
as set forth in Section 8.1(i), enter into any agreement
with respect to any Company Acquisition Proposal.
Notwithstanding the foregoing, at any time prior to the receipt
of the Company Stockholder Approval, (x) if the Company
Board of Directors has not received a Company Superior Proposal,
but the Company Board of Directors, in the exercise of its
fiduciary duties, determines in good faith by a majority vote,
after consultation with its outside counsel, that an action set
forth in clause (i) or (ii) above (a Company
Adverse Recommendation Change) is necessary in order to
comply with its fiduciary duties to the stockholders of Company
under applicable Law (provided that the Company Board of
Directors may not base this determination primarily on changes
in the stock price of Company or Parent after the date of this
Agreement, although it may base this determination on the facts
or occurrences giving rise or contributing to such changes), the
Company Board of Directors may make a Company Adverse
Recommendation Change after providing Parent with at least
24 hours prior notice of its determination and a reasonably
detailed description of the reasons therefor, and (y) if
the Company has received a Company Superior Proposal, the
Company Board of Directors may make a Company Adverse
Recommendation Change after (A) the Company has provided
written notice to the Parent that the Company Board of Directors
has received a Company Superior Proposal (which notice shall
include a copy of such Company Superior Proposal and identify
the Person making such Company Superior Proposal) and advising
Parent that the Company intends to withdraw or modify its
recommendation of this Agreement or the Merger or recommend a
Company Superior Proposal (specifying which course of action the
Company intends to take), (B) at least three business days
have elapsed since the delivery of the written notice described
in (A) above, (C) the Company Board of Directors has
considered any revised proposal made by Parent during such
three-business day period, and (D) if Parent has made a
revised proposal, the Company Board of Directors has again made
a determination to make a Company Adverse Recommendation Change
despite Parents revised proposal. Any Company Adverse
Recommendation Change shall not change the approval of the
Company Board of Directors for purposes of causing any state
takeover statute or other state Law to be inapplicable to the
transactions contemplated by this Agreement, including the
Merger.
4.12 Regulatory
Filings. As soon as is reasonably practicable, Company
and Parent each shall file with the United States Federal Trade
Commission (the FTC) and the Antitrust Division of
the United States Department of Justice (the
DOJ) any Notification and Report Forms relating to
the Merger required by the HSR Act, as well as comparable
pre-merger notification forms required by the merger
notification and control laws and regulations of any other
applicable jurisdiction, as agreed to by the parties. Company
and Parent each shall promptly (a) supply the other with
any information which may be reasonably required in order to
make such filings and (b) supply any additional information
which may be requested by the FTC, the DOJ or the competition or
merger control authorities of any other jurisdiction and which
the parties reasonably deem appropriate.
4.13 Notification of Certain
Matters. Between the date hereof and the Closing Date,
Company shall give prompt notice to Parent, and Parent shall
give prompt notice to Company, of (a) the occurrence or
non-occurrence of any event or circumstance the occurrence or
non-occurrence of which would be reasonably likely to result in
the failure of the condition to closing set forth in
Section 6.1 or 7.1, as applicable, to fail to be satisfied,
and (b) any failure of Company or Parent, as the case may
be, to materially comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by it hereunder.
4.14 Registration of Certain
Shares. Promptly, but in no event later than thirty
(30) days after the Effective Time, Parent shall file
registration statements with the SEC with respect to the initial
issuance
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of the shares of Parent Common Stock subject to Company Stock
Options. Parent shall use reasonable commercial efforts to have
such registration statements declared effective promptly after
filing (to the extent such registration statements are not
automatically effective upon filing).
4.15 Employee Matters.
(a) During the one-year period following the Closing Date
(the Continuation Period), except (i) as
otherwise provided in any written employment agreement with an
employee of Company or a Company Subsidiary (including any
written employment agreement entered into with Parent in
connection with the signing of this Agreement or the
transactions contemplated by this Agreement) or (ii) with a
resolution of a majority of the Parent Board of Directors, which
majority must include at least two of the three voting directors
appointed to the Parent Board of Directors pursuant to
Section 4.16, Parent shall, or shall cause the Surviving
Corporation or its subsidiaries, to maintain each of the Company
Plans sponsored by the Company or any of the Company
Subsidiaries immediately prior to the date of this Agreement (to
the extent still in place at the Effective Time) with respect to
employees of the Company or the Companys Subsidiaries who
continue employment with the Surviving Corporation or any of its
Subsidiaries or the Parent (Continuing Employees),
and their respective spouses, dependants, and beneficiaries,
with the same level of coverage, benefits, rights, and features
as provided or enjoyed immediately before the date of this
Agreement, other than any changes required by applicable Law.
(b) After the Continuation Period, Parent shall, or shall
cause the Surviving Corporation to, provide that the Continuing
Employees are covered under benefits plans, programs, policies
and arrangements (including severance benefits, vacation pay and
equity compensation) applicable to similarly situated employees
of Parent. Years of service with Company and Company
Subsidiaries prior to the Effective Time shall be treated as
service with the Surviving Corporation or Parent, as applicable,
for eligibility and vesting purposes and for purposes of
vacation and severance pay accruals, except to the extent such
treatment will result in a duplication of benefits. In
connection with any transition of benefits offered to Continuing
Employees, Parent shall take commercially reasonable steps to
cause to be waived all limitations as to preexisting conditions,
exclusions and waiting periods with respect to participation and
coverage requirements applicable to the Continuing Employees
under any medical or dental benefit plans that such employees
are eligible to participate in after such transition of benefits
under comparable plans offered to the Continuing Employees,
other than limitations, exclusions or waiting periods that are
already in effect with respect to such employees and that have
not been satisfied as of such time under any medical or dental
plan maintained for such employees immediately prior to such
time.
(c) Nothing in this Agreement shall be construed to create
a right in any Continuing Employee to employment with Parent,
the Surviving Corporation, or any of their respective
subsidiaries. Except as otherwise provided in this
Section 4.15, nothing in this Agreement shall require
Parent, the Surviving Corporation, or their respective
subsidiaries to provide any particular type or level of
compensation or employee benefits, nor shall anything limit the
right of Parent, the Surviving Corporation, or their respective
subsidiaries to amend, suspend, or terminate any employee
benefit plan at any time.
4.16 Board Membership and
Officers.
(a) Parent shall take all actions necessary so that at the
Effective Time (i) three members of the Company Board of
Directors as constituted on the date of this Agreement
designated by the Company and reasonably acceptable to the
Parent shall be appointed to the Parent Board of Directors, in
each case to serve from and after the Closing Date until a
successor is duly elected and qualified and (ii) one member
of the Company Board of Directors as constituted on the date of
this Agreement designated by the Company and reasonably
acceptable to the Parent shall be appointed as a non-voting
director emeritus to the Parent Board of Directors, with
notification, participation and any other rights of a regular
director (other than voting rights), to serve for at least one
year from and after the Closing Date; provided, in each case, if
any of such individuals (other than the individual appointed to
serve as director emeritus) are unwilling or unable to
serve as a director, then Company shall designate another
individual or individuals, as the case may be, who are
reasonably acceptable to the Parent from among the other members
of the
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Company Board of Directors as constituted on the date of this
Agreement, to serve as a director of the Parent following the
Effective Time.
(b) Parent shall take all actions necessary so that at the
Effective Time the employees of the Company set forth in
Section 4.16 of the Company Disclosure Schedule shall be
appointed to the positions designated in Section 4.16 of
the Company Disclosure. Parent shall negotiate in good faith to
enter into employment agreements with such employees. If Parent
is unable to reach agreement with such employees prior to the
Closing Date, Parent acknowledges that the employment
arrangements between Company and such employees existing as of
the date hereof shall remain in full force and effect after the
Effective Time.
4.17 Indemnification.
(a) Subject to the occurrence of the Effective Time, until
the sixth anniversary of the date on which the Effective Time
occurs, Parent agrees that all rights to indemnification,
exculpation and expense advancement now existing in favor of
each present and former director or officer (including any
director or officer who serves or served in a fiduciary capacity
of any Company Plan) of Company and the Company Subsidiaries as
provided in their respective charters or By-laws in effect as of
the date hereof shall survive and remain in full force and
effect with respect to actions or failures to act occurring
prior to the Effective Time.
(b) For a period of at least six years after the Effective
Time, Parent shall maintain in effect either (i) the
policies of directors and officers liability
insurance maintained by Company on the date of this Agreement
(provided that Parent may substitute therefor policies of at
least the same coverage and amounts containing terms and
conditions which are no less advantageous in any material
respect to the insured parties thereunder) with respect to
claims arising from facts or events that occurred at or before
the Effective Time (including consummation of the Merger);
provided that if the aggregate annual premiums for such
insurance during such period shall exceed 200% of the per annum
rate of premium paid by Company on the date of this Agreement,
then Parent shall provide a policy with the best coverage as
shall then be available at 200% of such rate, or (ii) a
run-off (i.e., tail) policy or endorsement with
respect to such policies of directors and officers
liability insurance covering claims asserted within six years
after the Effective Time arising from facts or events that
occurred at or before the Effective Time (including consummation
of the Merger); and such policies or endorsements shall name as
insureds thereunder all people entitled to coverage under the
Companys policies of directors and officers
liability insurance on the date of this Agreement; provided that
if the aggregate annual premiums for such insurance during such
period shall exceed 300% of the per annum rate of premium paid
by Company on the date of this Agreement, then Parent shall
provide a tail policy with the best coverage as shall then be
available at 300% of such rate.
(c) The provisions of this Section 4.17 are intended
to be for the benefit of, and shall be enforceable by, each
Indemnified Party and his or her heirs and representatives.
4.18 Section 16
Approval. Prior to the Effective Time, the Parent Board
of Directors or an appropriate committee of non-employee
directors thereof, shall adopt a resolution consistent with the
interpretive guidance of the SEC with respect to the acquisition
by any officer or director of Company who will, at the Effective
Time, become an officer or director of Parent for purposes of
Section 16 of the Exchange Act and the rules and
regulations thereunder of Parent Common Stock or options to
acquire Parent Common Stock pursuant to this Agreement and the
Merger to cause any such acquisitions to be exempt under
Rule 16b-3 promulgated under the Exchange Act.
4.19 Participation in Certain
Actions and Proceedings. Until this Agreement is
terminated in accordance with Section 8.1, Parent shall
have the right to participate in (but not control) the defense
of any action, suit or proceeding instituted against Company (or
any of its directors or officers) before any court or
governmental or regulatory body or threatened by any
governmental or regulatory body or any third party, including a
Company stockholder, to restrain, modify or prevent the
consummation of the transactions contemplated by this Agreement,
or to seek damages or a discovery order in connection with such
transactions.
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4.20 Tax-Free
Reorganization. Neither Company nor Parent shall
knowingly take, cause or permit to be taken any action, whether
before or after the Effective Time, that would cause the Merger
(or such merger together with the contemplated subsequent merger
of the Surviving Corporation with and into Parent) to fail to
qualify as a reorganization within the meaning of
Section 368(a) of the Code.
4.21 No Acquisition of Common
Stock. From the date of this Agreement until the earlier
to occur of the Effective Time or the termination of this
Agreement, (i) Company shall not (and shall cause the
Company Subsidiaries not to) acquire, directly or indirectly,
any beneficial interest in shares of Parent Common Stock and
(ii) Parent shall not (and shall cause the Parent
Subsidiaries not to) acquire, directly or indirectly, any
beneficial interest in shares of Company Common Stock.
4.22 FIRPTA
Certificate. At the Closing, Company shall provide to
Parent a certificate meeting the requirements of Treasury
Regulation Section 1.1445-2(c)(3). Company shall
provide proper notice to the U.S. Internal Revenue Service
of the issuance of such certificate pursuant to Treasury
Regulation Section 1.897-2(h)(2).
ARTICLE V
CONDITIONS PRECEDENT TO
THE OBLIGATIONS
OF EACH PARTY TO
CONSUMMATE THE MERGER
The respective obligations of each party to consummate the
Merger shall be subject to the satisfaction or waiver by consent
of the other party, at or before the Effective Time, of each of
the following conditions:
5.1 Stockholder
Approval. Company shall have obtained the vote of
holders of Company Common Stock required to adopt this Agreement
in accordance with the provisions of the DGCL and the
Certificate of Incorporation and By-laws of Company, and Parent
shall have obtained the vote of holders of Parent Common Stock
required to issue the shares of Parent Common Stock required to
be issued pursuant to the terms and conditions of this Agreement
in accordance with the provisions of the DGCL and the
Certificate of Incorporation and By-laws of Parent and the rules
and regulations of the Nasdaq National Market.
5.2 Registration
Statement. The Registration Statement shall have been
declared effective; no stop order suspending the effectiveness
of the Registration Statement shall have been issued, and not
withdrawn, by the SEC and no proceedings for that purpose shall
be underway at the SEC; and no similar proceeding in respect of
the Proxy Statement shall be underway at the SEC or, to the
knowledge of Parent or Company, threatened by the SEC.
5.3 Absence of Order.
No temporary restraining order, preliminary or permanent
injunction or other order issued by a court or other
governmental entity of competent jurisdiction shall be in effect
and have the effect of making the Merger illegal or otherwise
prohibiting consummation of the Merger. Parent and Company each
agrees to use reasonable commercial efforts to have any such
order or injunction lifted or stayed.
5.4 Regulatory
Approvals. All approvals from governmental entities
required by Company, Parent or Sub to consummate the Merger
shall have been obtained, except for approvals the failure of
which to be obtained would not reasonably be expected to have,
individually or in the aggregate, a Company Material Adverse
Effect or a Parent Material Adverse Effect; provided, however,
that the conditions of this Section 5.4 shall not apply to
any party whose failure to fulfill its obligations under this
Agreement shall have been the cause of, or shall have resulted
in, such failure to obtain such approval.
5.5 Pending
Litigation. There shall not be threatened in writing or
pending any suit, action or proceeding by any governmental
entity against Parent, Company, Sub, any Company Subsidiary, any
Parent Subsidiary or any of their respective directors, officers
or members challenging this Agreement or the transactions
contemplated hereby, seeking to delay, restrain or prohibit the
Merger, or seeking to obtain material damages from any such
party, seeking to prohibit or impose material limitations on the
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ownership or operation of all or a portion of the operations or
assets of Company and the Company Subsidiaries (or Parents
direct equity ownership of the Surviving Corporation or indirect
equity ownership, following the Effective Time, of the Company
Subsidiaries) or to compel Parent or a subsidiary of Parent to
dispose of or hold separate any material portion of their
business or assets or the business or assets of Company and the
Company Subsidiaries (or any equity interest in such entities).
5.6 HSR Act. The
waiting period (and any extension thereof) applicable to the
Merger under the HSR Act and applicable foreign competition or
merger control Laws in any country where either Parent or
Company have significant operations shall have been terminated
or shall have expired, and approvals under all foreign
competition or merger control laws where either Parent or
Company have significant operations that are reasonably
determined by Parent or Company to be to be applicable to the
Merger shall have been obtained.
5.7 Nasdaq. Parent
Common Stock shall continue to be quoted on the Nasdaq National
Market and the shares of Parent Common Stock to be issued in the
Merger shall have been approved for listing or quotation on the
Nasdaq National Market, subject to official notice of issuance.
ARTICLE VI
CONDITIONS PRECEDENT TO
THE OBLIGATIONS OF
PARENT AND SUB TO
CONSUMMATE THE MERGER
The obligations of Parent and Sub to consummate the Merger are
subject to the fulfillment of the following conditions, any one
or more of which may be waived in writing by Parent:
6.1 Representations,
Warranties and Covenants. The representations and
warranties of Company in Article II of this Agreement,
other than those set forth in Section 2.3(d) of this
Agreement, shall be true and correct both as of the date of this
Agreement and immediately before the Effective Time (except
representations or warranties that by their terms speak only as
of an earlier date, which shall be true and correct as of such
earlier date), except to the extent all inaccuracies in all such
representations or warranties would not reasonably be expected
to have, individually or in the aggregate, a Company Material
Adverse Effect, provided, however, that solely for
purposes of this Section 6.1, each representation or
warranty in Article II that is qualified by materiality or
Company Material Adverse Effect shall be read as if such
qualifiers were not present. The representations and warranties
in Section 2.3(d) of this Agreement shall be true and
correct other than de minimus variations as of the date
of this Agreement and immediately before the Effective Time.
Company shall have performed and complied in all material
respects with all covenants and agreements required by this
Agreement to be performed or complied with by it on or prior to
the Closing Date. Parent shall have received a certificate
signed on behalf of Company by the chief executive officer and
chief financial officer of Company to the foregoing effect.
6.2 Corporate
Certificates. Company shall have delivered a copy of the
Certificate of Incorporation of Company, as in effect on the
Closing Date, certified by the Delaware Secretary of State and a
certificate, as of the most recent practicable date, of the
Delaware Secretary of State as to Companys good standing.
6.3 Secretarys
Certificate. Company shall have delivered a certificate
of the Secretary of Company, dated as of the Closing Date,
certifying as to (a) the incumbency of officers of Company
executing this Agreement and all documents executed and
delivered in connection herewith, (b) a copy of the By-Laws
of Company, as in effect from the date this Agreement was
approved by the Company Board of Directors until the Closing
Date, (c) a copy of the resolutions of the Company Board of
Directors authorizing and approving the applicable matters
contemplated hereunder and (d) a copy of the resolutions of
the stockholders of Company adopting this Agreement.
6.4 Tax Opinion.
Parent shall have received the opinion of its counsel to the
effect that the Merger (or the Merger together with the
subsequent merger of the Surviving Corporation with and into
Parent) will constitute a reorganization under
Section 368(a) of the Code. In rendering such opinion,
counsel shall
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be entitled to rely on customary representation letters of
Parent, Company and others, in form and substance reasonably
satisfactory to such counsel.
ARTICLE VII
CONDITIONS PRECEDENT TO
THE OBLIGATION OF
COMPANY TO CONSUMMATE THE
MERGER
The obligation of Company to consummate the Merger is subject to
the fulfillment of the following conditions, any one or more of
which may be waived by it in writing:
7.1 Representations,
Warranties and Covenants. The representations and
warranties of Parent and Sub in Article III of this
Agreement, other than those set forth in Section 3.3(d) of
this Agreement, shall be true and correct both as of the date of
this Agreement and immediately before the Effective Time (except
representations or warranties that by their terms speak only as
of an earlier date, which shall be true and correct as of such
earlier date), except to the extent all inaccuracies in all such
representations and warranties would not reasonably be expected
to have, individually or in the aggregate, a Parent Material
Adverse Effect, provided, however, that solely for
purposes of this Section 7.1, each representation or
warranty in Article III that is qualified by materiality or
Parent Material Adverse Effect shall be read as if such
qualifiers were not present. The representations and warranties
in Section 3.3(d) of this Agreement shall be true and
correct other than de minimus variations as of the date
of this Agreement and immediately before the Effective Time.
Parent shall have performed and complied in all material
respects with all covenants and agreements required by this
Agreement to be performed or complied with by it on or prior to
the Closing Date. Company shall have received a certificate
signed on behalf of Parent by the chief executive officer and
chief financial officer of Parent to the foregoing effect.
7.2 Corporate
Certificates. Parent shall have delivered a copy of the
Certificate of Incorporation of Parent, as in effect on the
Closing Date, certified by the Delaware Secretary of State and a
certificate, as of the most recent practicable date, of the
Delaware Secretary of State as to Parents good standing.
7.3 Secretarys
Certificate. Parent shall have delivered a certificate
of the Secretary of Parent, dated as of the Closing Date,
certifying as to (a) the incumbency of officers of Parent
executing this Agreement and all documents executed and
delivered in connection herewith, (b) a copy of the By-Laws
of Parent, as in effect from the date this Agreement was
approved by the Company Board of Directors until the Closing
Date, (c) a copy of the resolutions of the Parent Board of
Directors authorizing and approving the applicable matters
contemplated hereunder and (d) a copy of the resolutions of
the stockholders of Parent giving Parent Stockholder Approval.
7.4 Tax Opinion.
Company shall have received the opinion of its counsel to the
effect that the Merger (or the Merger together with the
subsequent merger of the Surviving Corporation with and into
Parent) will constitute a reorganization under
Section 368(a) of the Code. In rendering such opinion,
counsel shall be entitled to rely on customary representation
letters of Parent, Company and Sub and others, in form and
substance reasonably satisfactory to such counsel.
ARTICLE VIII
TERMINATION, AMENDMENT AND
WAIVER
8.1 Termination. This
Agreement may be terminated at any time prior to the Effective
Time, whether prior to or after the stockholders of Company
adopt this Agreement:
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(a) By mutual written consent of Parent and Company
authorized by the Parent Board of Directors and the Company
Board of Directors; or |
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(b) By either Parent or Company if the Merger has not been
consummated by February 15, 2006 (the Termination
Date); provided, however, that the right to
terminate this Agreement pursuant to this Section 8.1(b)
shall not be available to any party whose action or failure to
fulfill any |
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obligation under this Agreement has been the principal cause of,
or resulted in, the failure of the Merger to be consummated by
such date; or |
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(c) By either Parent or Company if a court of competent
jurisdiction or other governmental entity shall have issued an
order, decree or ruling or taken any other action, and such
order, decree or ruling or other action shall have become final
and nonappealable, or there shall exist any statute, rule or
regulation, in each case restraining, enjoining or otherwise
prohibiting (collectively, Restraints) the
consummation of any of the transactions contemplated hereby;
provided, however, that the party seeking to terminate
this Agreement pursuant to this Section 8.1(c) has used all
reasonable efforts to prevent the entry of and to remove such
Restraints; or |
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(d) By Parent if there has been a breach of, or inaccuracy
in, any representation, warranty, covenant or agreement of
Company set forth in this Agreement, which breach or inaccuracy
has resulted or is reasonably likely to result in any condition
set forth in Article VI not being satisfied (and such
breach or inaccuracy has not been cured or such condition has
not been satisfied within thirty (30) days after the
receipt of notice thereof or such breach or inaccuracy is not
reasonably capable of being cured or such condition is not
reasonably capable of being satisfied within such
period); or |
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(e) By Company if there has been a breach of, or inaccuracy
in, any representation, warranty, covenant or agreement of
Parent or Sub set forth in this Agreement, which breach or
inaccuracy has resulted or is reasonably likely to result in any
condition set forth in Article VII not being satisfied (and
such breach or inaccuracy has not been cured or such condition
has not been satisfied within thirty (30) days after the
receipt of notice thereof or such breach or inaccuracy is not
reasonably capable of being cured or such condition is not
reasonably capable of being satisfied within such
period); or |
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(f) By Parent, if (i) the Company Board of Directors
shall have (A) withdrawn, modified or changed its approval
or recommendation of this Agreement or the Merger, or publicly
announced its intention to do so, or failed to recommend this
Agreement or the Merger, (B) approved or recommended to
Companys stockholders any proposal other than by Parent or
Sub in respect of any Company Acquisition Proposal, or entered
into or publicly announced its intention to enter into any
agreement or agreement in principle in respect of any Company
Acquisition Proposal, (C) resolved or publicly proposed to
any of the foregoing or (D) failed to recommend against, or
taken a neutral position with respect to, a tender or exchange
offer related to a Company Acquisition Proposal in any position
taken pursuant to Rules 14d-9 and 14e-2 under the Exchange
Act or (ii) Company shall have violated or breached in any
material respect its obligations under Section 4.11; or |
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(g) By Company, if (i) the Parent Board of Directors
shall have (A) withdrawn, modified or changed its approval
or recommendation that Parent stockholders approve the issuance
of shares of Parent Common Stock pursuant to this Agreement, or
publicly announced its intention to do so, or failed to
recommend that Parent stockholders approve the issuance of
shares of Parent Common Stock pursuant to this Agreement or
(B) resolved or publicly proposed to any of the
foregoing; or |
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(h) By either Parent or Company, if upon a vote at a duly
held meeting to obtain Company Stockholder Approval, Company
Stockholder Approval is not obtained or if upon a vote at a duly
held meeting to obtain Parent Stockholder Approval, Parent
Stockholder Approval is not obtained. |
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(i) By the Company if, at any time prior to receipt of the
Company Stockholder Approval, (i) the Company Board of
Directors has received a Company Superior Proposal, (ii) in
light of such Company Superior Proposal, the Company Board of
Directors has determined, in good faith by resolution duly
adopted after consultation with outside counsel, that it is
necessary for the Company Board of Directors to withdraw, amend
or modify its approval or recommendation of this Agreement or
the Merger in order to comply with its fiduciary duties to the
stockholders of the Company under applicable Law, (iii) the
Company has provided written notice of the determination
described in clause (ii) above to the Parent, which notice
has attached to it a copy of the definitive agreement or |
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agreements containing all of the terms and conditions of such
Company Superior Proposal, (iv) at least three business
days following receipt by the Parent of the notice referred to
in clause (iii) above, and after taking into account any
revised proposal made by the Parent following receipt of the
notice referred to in clause (iii) above, such Company
Superior Proposal remains a Company Superior Proposal and the
Company Board of Directors has again made the determination
referred to in clause (ii) above (it being understood and
agreed that any change to the financial or other material terms
of such Company Superior Proposal shall require a new notice to
the Parent under clause (iii) above and a new
three-business-day period under this clause (iv)),
(v) the Company has not breached Section 4.11 in any
material respect, (vi) concurrent with such termination,
the Company Board of Directors approves, and the Company enters
into, a definitive agreement providing for the implementation of
a Company Superior Proposal and (vii) the Company, at or
prior to any termination pursuant to this Section 8.1(i)
pays to Parent the Termination Fee. |
8.2 Effect of
Termination.
(a) Any termination of this Agreement under
Section 8.1 hereof will be effective immediately upon the
delivery of a valid written notice of the terminating party to
the other parties hereto and, if then due, payment of the
Termination Fee and the Transaction Expenses. In the event of
termination of this Agreement as provided in Section 8.1
hereof, this Agreement shall forthwith become null and void and
be of no further force or effect, and there shall be no
liability on the part of Parent, Sub or Company (or any of their
respective directors, officers, employees, stockholders, agents
or representatives), except as set forth in the last sentence of
Section 4.3, Article VIII and Article IX, each of
which shall remain in full force and effect and survive any
termination of this Agreement; provided, however, that
nothing herein shall relieve any party from liability for fraud
or the willful breach of any of its representations, warranties,
covenants or agreements set forth in this Agreement.
(b) If Parent shall have terminated this Agreement pursuant
to Section 8.1(f), Company shall pay Parent upon demand a
termination fee of $11,350,000 (the Termination Fee)
and reimburse Parent upon demand for documented out-of-pocket
fees and expenses incurred or paid by or on behalf of Company in
connection with this Agreement or the consummation of any of the
transactions contemplated by this Agreement in an amount that
will not exceed $1,500,000 (the Parent Expenses). If
Company terminates this Agreement pursuant to
Section 8.1(i), Company shall pay the Termination Fee to
Parent as a condition to termination and the Parent Expenses to
Parent upon demand. If (i) this Agreement is terminated
(A) pursuant to Section 8.1(b) without the Company
Stockholder Meeting having occurred, (B) pursuant to
Section 8.1(d) due to an intentional breach or failure to
perform by Company or (C) pursuant to Section 8.1(h)
due to a failure to obtain the Company Stockholder Approval,
(ii) prior to the time of termination and after the date of
this Agreement a Company Acquisition Proposal has been publicly
announced or otherwise communicated to Companys Board of
Directors and (iii) within twelve (12) months after
the date on which this Agreement is terminated Company enters
into a definitive agreement with respect to a Company
Acquisition Proposal or a Company Acquisition Proposal is
consummated, Company shall pay to Parent the Termination Fee
within two business days of the earlier of the execution of such
definitive agreement or upon consummation of such Company
Acquisition Proposal and reimburse Parent for the Parent
Expenses upon demand. All amounts due hereunder shall be payable
by wire transfer in immediately available funds to such account
as Parent may designate in writing to Company. If Company fails
to promptly make any payment required under this
Section 8.2(b) and Parent commences a suit to collect such
payment, Company shall indemnify Parent for its fees and
expenses (including attorneys fees and expenses) incurred in
connection with such suit and shall pay interest on the amount
of the payment at the prime rate of Bank of America (or its
successors or assigns) in effect on the date the payment was
payable pursuant to this Section 8.2(b). Solely for
purposes of this Section 8.2(b), references to
20% in the definition of Company Acquisition
Proposal shall be deemed to be 50%, but in the
case of subsection (A) of that definition, the
calculation of the percentage interest acquired shall be deemed
to include any Company Common Stock or other voting securities
held by such acquiring person prior to such acquisition.
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(c) If Company shall have terminated this Agreement
pursuant to Section 8.1(g), Parent shall pay Company upon
demand the Termination Fee and shall reimburse Company upon
demand for documented out-of-pocket fees and expenses incurred
or paid by or on behalf of Company in connection with this
Agreement or the consummation of any of the transactions
contemplated by this Agreement in an amount that will not exceed
$1,500,000. All amounts due hereunder shall be payable by wire
transfer in immediately available funds to such account as
Company may designate in writing to Parent. If Parent fails to
promptly make any payment required under this
Section 8.2(c) and Company commences a suit to collect such
payment, Parent shall indemnify Company for its fees and
expenses (including attorneys fees and expenses) incurred in
connection with such suit and shall pay interest on the amount
of the payment at the prime rate of Bank of America (or its
successors or assigns) in effect on the date the payment was
payable pursuant to this Section 8.2(c).
(d) Each of Company and Parent (for itself and its
affiliates) hereby agrees, that upon any termination of this
Agreement under circumstances where it is entitled to a
Termination Fee and expense reimbursement under this
Section 8.2 and such Termination Fee and expense
reimbursement are paid in full to such party, such party and its
affiliates shall be precluded from any other remedy against such
other party, at law or in equity or otherwise, and neither such
party nor any of its affiliates shall seek (and such party shall
cause its affiliates not to seek) to obtain any recovery,
judgment, or damages of any kind, including consequential,
indirect, or punitive damages, against the other party or any of
their respective directors, officers, employees, partners,
managers, members, or stockholders in connection with this
Agreement or the transactions contemplated hereby.
8.3 Amendment. This
Agreement may be amended at any time before or after the Company
Stockholder Approval or Parent Stockholder Approval by an
instrument signed by each of the parties hereto; provided,
however, that (a) after the Company Stockholder Approval,
without the further approval of the stockholders of Company, no
amendment may be made that (i) alters or changes the amount
or kind of consideration to be received as provided in
Section 1.6, (ii) alters or changes any term of the
Certificate of Incorporation of the Surviving Corporation or
(iii) alters or changes any of the terms and conditions of
this Agreement if such alteration or change would adversely
affect the stockholders of Company and (b) after Parent
Stockholder Approval, without the further approval of the
stockholders of Parent, no amendment may be made that increases
the number of shares of Parent Common Stock that must be issued
pursuant to the terms and conditions of this Agreement.
8.4 Waiver. At any
time prior to the Effective Time, either party hereto may
(a) extend the time for the performance of any of the
obligations or other acts of the other party hereto or
(b) waive compliance with any of the agreements of the
other party or any conditions to its own obligations, in each
case only to the extent such obligations, agreements and
conditions are intended for its benefit; provided that any such
extension or waiver shall be binding upon a party only if such
extension or waiver is set forth in a writing executed by such
party. No waiver by any party of any breach or violation or,
default under or inaccuracy in any representation, warranty or
covenant hereunder, whether intentional or not, will be deemed
to extend to any prior or subsequent breach, violation, default
of, or inaccuracy in, any such representation, warranty or
covenant hereunder or affect in any way any rights arising by
virtue of any prior or subsequent such occurrence. No delay or
omission on the part of any party in exercising any right, power
or remedy under this Agreement will operate as a waiver thereof.
ARTICLE IX
MISCELLANEOUS
9.1 No Survival. None
of the representations and warranties contained herein shall
survive the Effective Time.
9.2 Notices. Any
notice or other communication required or permitted hereunder
shall be in writing and shall be deemed given when delivered in
person or by facsimile transmission (with receipt confirmed by
telephone or by automatic transmission report), one business day
after being sent for next business day
A-58
delivery (fees prepaid, via reputable nationwide overnight
courier service) or two business days after being sent by
registered or certified mail (postage prepaid, return receipt
requested), in each case to the intended recipient as follows:
(a) if to Parent or Sub, to:
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Brooks Automation, Inc. |
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15 Elizabeth Drive |
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Chelsmford, MA 01824 |
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Attn: General Counsel |
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Telephone: (978) 721-3371 |
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Facsimile: (978) 262-2511 |
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Ropes & Gray LLP |
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One International Place |
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Boston, Massachusetts 02110 |
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Attn: Winthrop G. Minot and Shari H. Wolkon |
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Telephone: (617) 951-7364/ (617) 951-7861 |
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Facsimile: (617) 951-7050 |
(b) if to Company, to:
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Helix Technology Corporation |
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Nine Hampshire Street |
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Mansfield, MA 02048 |
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Attn: Chief Financial Officer |
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Telephone: (508) 337-5055 |
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Facsimile: (508) 337-5505 |
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Palmer & Dodge, LLP |
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111 Huntington Avenue |
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Boston, Massachusetts 02199 |
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Attn: Matthew J. Gardella |
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Telephone: (617) 239-0789 |
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Facsimile: (617) 227-4420 |
Any party may by notice given in accordance with this
Section 9.2 to the other parties designate another address
or person for receipt of notices hereunder.
9.3 Entire Agreement.
This Agreement contains the entire agreement between the parties
with respect to the Merger and related transactions, and
supersedes all prior agreements, written or oral, between the
parties with respect thereto, other than the Confidentiality
Agreement, which shall survive execution of this Agreement and
any termination of this Agreement (other than any
standstill provision which shall expire concurrently
with the termination of this Agreement); provided, that if the
terms of the Confidentiality Agreement conflict with the terms
of this Agreement, the terms of this Agreement shall control.
9.4 Governing Law.
This Agreement and any related disputes shall be governed by and
construed in accordance with the laws of the State of Delaware
without regard to its conflict of law provisions.
9.5 Binding Effect; No
Assignment; No Third-Party Beneficiaries.
(a) This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and
permitted assigns. This Agreement is not assignable without the
prior written consent of the other parties hereto.
A-59
(b) Other than Section 4.17, nothing in this
Agreement, express or implied, is intended to or shall confer
upon any person other than Parent, Sub and Company and their
respective successors and permitted assigns any right, benefit
or remedy of any nature whatsoever under or by reason of this
Agreement.
9.6 Section Headings.
The headings of Sections in this Agreement are provided for
convenience only and shall not affect its construction or
interpretation. All references to Section or
Sections refer to the corresponding Section or
Sections of this Agreement.
9.7 Counterparts.
This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original, and all of which together
shall constitute one and the same instrument. This Agreement may
be executed and delivered by facsimile transmission.
9.8 Severability. If
any provision of this Agreement is held invalid or unenforceable
by any court of competent jurisdiction, the other provisions of
this Agreement shall remain in full force and effect. Any
provision of this Agreement held invalid or unenforceable only
in part or degree shall remain in full force and effect to the
extent not held invalid or unenforceable. The parties further
agree to replace such invalid or unenforceable provision of this
Agreement with a valid and enforceable provision that will
achieve, to the extent possible, the economic, business and
other purposes of such invalid or unenforceable provision.
9.9 Submission to
Jurisdiction; Waiver. Each of Company, Parent and Sub
irrevocably agrees that any legal action or proceeding with
respect to this Agreement or for recognition and enforcement of
any judgment in respect hereof brought by the other party hereto
or its successors or assigns may be brought and determined in
the courts of The Commonwealth of Massachusetts, the State of
Delaware and the Federal courts of the United States located in
The Commonwealth of Massachusetts or the State of Delaware and
each of Company, Parent and Sub hereby irrevocably submits with
regard to any action or proceeding for itself and in respect to
its property, generally and unconditionally, to the nonexclusive
jurisdiction of the aforesaid courts. Each of Company, Parent
and Sub hereby irrevocably waives, and agrees not to assert, by
way of motion, as a defense, counterclaim or otherwise, in any
action or proceeding with respect to this Agreement,
(a) any claim that it is not personally subject to the
jurisdiction of the above-named courts for any reason other than
the failure to lawfully serve process, (b) that it or its
property is exempt or immune from jurisdiction of any such court
or from any legal process commenced in such courts (whether
through service of notice, attachment prior to judgment,
attachment in aid of execution of judgment, execution of
judgment or otherwise), and (c) to the fullest extent
permitted by applicable law, that (i) the suit, action or
proceeding in any such court is brought in an inconvenient
forum, (ii) the venue of such suit, action or proceeding is
improper and (iii) this Agreement, or Subject matter
hereof, may not be enforced in or by such courts. Any party may
make service of process on another party by sending or
delivering a copy of the process to the party to be served at
the address and in the manner provided for giving of notices in
Section 9.2.
9.10 Enforcement. The
parties recognize and agree that if for any reason any of the
provisions of this Agreement are not performed in accordance
with their specific terms or are otherwise breached, immediate
and irreparable harm or injury would be caused for which money
damages would not be an adequate remedy. Accordingly, each party
agrees that in addition to other remedies the other party shall
be entitled to an injunction restraining any violation or
threatened violation of the provisions of this Agreement without
posting a bond or other undertaking. In the event that any
action shall be brought in equity to enforce the provisions of
the Agreement, neither party shall allege, and each party hereby
waives the defense, that there is an adequate remedy at law.
9.11 Rules of
Construction. All words used in this Agreement shall be
construed to be of such gender or number as the circumstances
require. Unless otherwise expressly provided, the word
including does not limit the preceding words or
terms. As used herein, the phrase transactions
contemplated by this Agreement or matters
contemplated hereby or similar phrasing does not include
any merger of the Surviving Corporation with Parent after the
Effective Time. Exhibit A, the Company Disclosure Schedule
and the Parent Disclosure Schedule form an integral part of this
Agreement, and references to this
A-60
Agreement shall include Exhibit A, the Company
Disclosure Schedule and the Parent Disclosure Schedule. The
parties hereto agree that they have been represented by counsel
during the negotiation and execution of this Agreement and,
therefore, waive the application of any law, regulation, holding
or ruling of construction providing that ambiguities in an
agreement or other document shall be construed against the party
drafting such agreement or document.
9.12 Waiver of Jury
Trial. EACH OF PARENT, COMPANY AND SUB HEREBY
IRREVOCABLY WAIVES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION,
PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR ANY RELATED DOCUMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALINGS, STATEMENT OR ACTION RELATED HERETO OR
THERETO.
[Remainder of Page Intentionally Left Blank]
A-61
IN WITNESS WHEREOF, the parties have executed this Agreement and
Plan of Merger under seal as of the date first stated above.
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Title: |
President and Chief Executive Officer |
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By: |
/s/ Robert W. Woodbury, Jr. |
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Name: Robert W. Woodbury, Jr. |
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HELIX TECHNOLOGY CORPORATION |
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Title: |
President and Chief Executive Officer |
[Signature Page to
Agreement and Plan of Merger]
A-62
ANNEX B
OPINION OF NEEDHAM & COMPANY, LLC
[LETTERHEAD OF NEEDHAM & COMPANY, LLC]
July 10, 2005
Board of Directors
Brooks Automation, Inc.
15 Elizabeth Drive
Chelmsford, MA 01824
Gentlemen:
We understand that Brooks Automation, Inc. (Brooks),
Helix Technology Corporation (Helix), and a
wholly-owned subsidiary of Brooks (Merger Sub)
propose to enter into an Agreement and Plan of Merger (the
Merger Agreement) whereby, upon the terms and
subject to the conditions set forth in the Merger Agreement,
Merger Sub will be merged with and into Helix and Helix will
continue as a wholly-owned subsidiary of Brooks (the
Merger). The terms and conditions of the Merger will
be set forth more fully in the Merger Agreement.
Pursuant to the Merger Agreement, we understand that at the
Effective Time (as defined in the Merger Agreement), each issued
and outstanding share of common stock, $1.00 par value per
share, of Helix (Helix Common Stock) will be
converted into the right to receive the number of shares of
common stock, $.01 par value per share, of Brooks
(Brooks Common Stock) equal to the Exchange Ratio
(as defined below). The Exchange Ratio will equal
1.11 shares of Brooks Common Stock for each share of Helix
Common Stock.
You have asked us to advise you as to the fairness, from a
financial point of view, to Brooks of the Exchange Ratio
pursuant to the Merger Agreement.
For purposes of this opinion we have, among other things:
(i) reviewed the Merger Agreement; (ii) reviewed
certain publicly available information concerning Brooks and
Helix and certain other relevant financial and operating data of
Brooks and Helix furnished to us by Brooks and Helix;
(iii) reviewed the historical stock prices and trading
volumes of Brooks Common Stock and Helix Common Stock;
(iv) held discussions with members of management of Brooks
and Helix concerning their current and future business prospects
and joint prospects for the combined companies, including the
potential cost savings and other synergies that may be achieved
by the combined companies; (v) reviewed certain research
analyst projections with respect to Brooks and held discussions
with members of the management of Brooks concerning those
projections; (vi) reviewed certain research analyst
projections with respect to Helix and held discussions with
members of the management of Helix concerning those projections;
(vii) compared certain publicly available financial data of
companies whose securities are traded in the public markets and
that we deemed relevant to similar data for Helix;
(viii) reviewed the financial terms of certain other
business combinations that we deemed generally relevant; and
(ix) performed and/or considered such other studies,
analyses, inquiries and investigations as we deemed appropriate.
In connection with our review and in arriving at our opinion, we
have assumed and relied on the accuracy and completeness of all
of the financial and other information reviewed by us for
purposes of this opinion and have neither attempted to verify
independently nor assumed responsibility for verifying any of
such information. In addition, we have assumed, with your
consent, that the Merger will qualify as a reorganization within
the meaning of Section 368(a) of the Internal Revenue Code
of 1986 and that the Merger will be consummated upon the terms
and subject to the conditions set forth in the Merger Agreement
without material alteration or waiver thereof. With respect to
the research analyst projections for Brooks and Helix, we have
assumed, with your consent and based upon discussions with the
respective managements of Brooks and Helix, that such
projections represent reasonable estimates as to the future
B-1
financial performance of Brooks and Helix. We have relied,
without independent verification, upon the estimates of
management of Brooks and Helix of the potential cost savings and
other synergies, including the amount and timing thereof, that
may be achieved as a result of the proposed Merger. We express
no opinion with respect to any of such projections or estimates
or the assumptions on which they were based. We have relied on
advice of counsel and independent accountants to Brooks as to
all legal and financial reporting matters with respect to
Brooks, the Merger and the Merger Agreement. We have not assumed
any responsibility for or made or obtained any independent
evaluation, appraisal or physical inspection of the assets or
liabilities of Brooks or Helix. Further, our opinion is based on
economic, monetary and market conditions as they exist and can
be evaluated as of the date hereof and we assume no
responsibility to update or revise our opinion based upon
circumstances and events occurring after the date hereof. Our
opinion as expressed herein is limited to the fairness, from a
financial point of view, to Brooks of the Exchange Ratio
pursuant to the Merger Agreement and does not address
Brooks underlying business decision to engage in the
Merger or the relative merits of the Merger as compared to other
business strategies that might be available to Brooks. Our
opinion does not constitute a recommendation to any stockholder
of Brooks as to how such stockholder should vote with respect to
the proposed Merger.
We are not expressing any opinion as to the value of Brooks
Common Stock when issued pursuant to the Merger or the prices at
which Brooks Common Stock or Helix Common Stock will actually
trade at any time.
Needham & Company, LLC, as part of its investment
banking business, is regularly engaged in the valuation of
businesses and their securities in connection with mergers and
acquisitions, negotiated underwritings, secondary distributions
of securities, private placements and other purposes. We have
been engaged by Brooks as financial advisor to render this
opinion and will receive a fee for our services, none of which
is contingent on the consummation of the Merger. In addition,
Brooks has agreed to indemnify us for certain liabilities
arising out of our role as financial advisor and out of the
rendering of this opinion and to reimburse us for our reasonable
out-of-pocket expenses. We have in the past provided and may in
the future provide investment banking and financial advisory
services to Brooks and Helix unrelated to the proposed Merger,
for which services we have received and expect to receive
compensation. In the ordinary course of our business, we may
actively trade the equity securities of Brooks and Helix for our
own account or for the accounts of customers or affiliates and,
accordingly, may at any time hold a long or short position in
such securities.
This letter and the opinion expressed herein are provided at the
request and for the information of the Board of Directors of
Brooks and may not be quoted or referred to or used for any
purpose without our prior written consent, except that this
letter may be disclosed in connection with any registration
statement or proxy statement used in connection with the Merger
provided that this letter is quoted in full in such registration
statement or proxy statement.
Based upon and subject to the foregoing, it is our opinion that,
as of the date hereof, the Exchange Ratio pursuant to the Merger
Agreement is fair to Brooks from a financial point of view.
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Very truly yours, |
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/s/ NEEDHAM & COMPANY, LLC |
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NEEDHAM & COMPANY, LLC |
B-2
ANNEX C
OPINION OF MORGAN STANLEY & CO. INCORPORATED
[LETTERHEAD OF MORGAN STANLEY & CO. INCORPORATED]
July 10, 2005
Board of Directors
Helix Technology Corporation
Mansfield Corporate Center
9 Hampshire Street
Mansfield, MA 02048
Members of the Board:
We understand that Helix Technology Corporation (the
Company), Brooks Automation, Inc.
(Parent) and Mt. Hood Corporation, a wholly-owned
subsidiary of Parent (Acquisition Sub), propose to
enter into an Agreement and Plan of Merger, substantially in the
form of the draft dated July 7, 2005 (the Merger
Agreement), which provides, among other things, for the
merger (the Merger) of Acquisition Sub with and into
the Company. Pursuant to the Merger, the Company will become a
wholly-owned subsidiary of Parent, and each outstanding share of
common stock, par value $1.00 per share, of the Company
(the Company Common Stock), other than shares held
in treasury or held by Parent or Acquisition Sub, will be
converted into the right to receive 1.11 shares (the
Exchange Ratio) of common stock, par value
$0.01 per share, of Parent (the Parent Common
Stock). The terms and conditions of the Merger are more
fully set forth in the Merger Agreement.
You have asked for our opinion as to whether the Exchange Ratio
pursuant to the Merger Agreement is fair from a financial point
of view to holders of shares of the Company Common Stock.
For purposes of the opinion set forth herein, we have:
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i) |
reviewed certain publicly available financial statements and
other business and financial information of the Company and
Parent; |
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ii) |
reviewed certain internal financial statements and other
financial and operating data concerning the Company and Parent
prepared by the managements of the Company and Parent,
respectively; |
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iii) |
reviewed certain financial projections prepared by the
managements of the Company and Parent; |
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iv) |
discussed the past and current operations and financial
condition and the prospects of the Company and Parent with
senior executives of the Company and Parent, respectively; |
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v) |
reviewed the pro forma impact of the Merger on Parents
earnings per share; |
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vi) |
discussed potential strategic, financial and operational
benefits anticipated from the Merger with senior executives of
the Company and Parent; |
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vii) |
reviewed the reported prices and trading activity for the
Company Common Stock and the Parent Common Stock; |
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viii) |
compared the financial performance of the Company and Parent and
prices and trading activity of the Company Common Stock and the
Parent Common Stock with those of certain other comparable
publicly-traded companies; |
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ix) |
reviewed the financial terms, to the extent publicly available,
of certain comparable acquisition transactions; |
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x) |
participated in discussions and negotiations among
representatives of the Company and Parent and their financial
and legal advisors; |
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xi) |
reviewed the Merger Agreement and certain related
documents; and |
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xii) |
performed such other analyses and considered such other factors
as we have deemed appropriate. |
C-1
We have assumed and relied upon without independent verification
the accuracy and completeness of the information supplied or
otherwise made available to us by the Company and Parent for the
purposes of this opinion. With respect to the financial
projections, including information relating to certain
strategic, financial and operational benefits anticipated from
the Merger, we have assumed that they have been reasonably
prepared on bases reflecting the best currently available
estimates and judgments of the future financial performance and
prospects of the Company and Parent. We have relied upon,
without independent verification, the assessment by the
managements of the Company and Parent of (i) their ability
to retain key employees, (ii) the Companys and
Parents technologies and products, (iii) the timing
and risks associated with the integration of the Company and
Parent and (iv) the validity of, and risks associated with,
the Companys and Parents existing and future
products and technologies.
In addition, we have assumed that the Merger will be consummated
in accordance with the terms set forth in the Merger Agreement,
including, among other things, that the Merger will be treated
as a tax-free reorganization pursuant to the Internal Revenue
Code of 1986, as amended. In addition, we have assumed that in
connection with the receipt of all necessary government,
regulatory or other consents and approvals required for the
Merger, no delays, limitations, conditions or restrictions will
be imposed that would have any adverse effect on the Company or
Parent or on the benefits expected to be derived from the
Merger. Our opinion does not address other strategic
transactions considered by either the Company or Parent, or
whether or not such strategic transactions could be achieved or
are available, and we have excluded the effects of any such
strategic transactions in our analysis. We are not legal, tax or
regulatory advisors and have relied upon, without independent
verification, the assessment of the Company and Parent and their
legal, tax and regulatory advisors with respect to legal, tax or
regulatory matters. We have not made any independent valuation
or appraisal of the assets or liabilities of the Company or
Parent, nor have we been furnished with any such appraisals. Our
opinion is necessarily based on financial, economic, market and
other conditions as in effect on, and the information made
available to us as of, the date hereof. Events occurring after
the date hereof may affect this opinion and the assumptions used
in preparing it, and we do not assume any obligation to update,
revise or reaffirm this opinion.
We have acted as financial advisor to the Board of Directors of
the Company in connection with this transaction and will receive
a fee for our services, a significant portion of which is
contingent upon the closing of the Merger. In the past, Morgan
Stanley & Co. Incorporated and its affiliates have
provided financing services for the Company and have received
fees for the rendering of these services. In the ordinary course
of our trading, brokerage, investment management and financing
activities, Morgan Stanley or its affiliates may at any time
hold long or short positions, and may trade or otherwise effect
transactions, for our own account or the accounts of customers,
in debt or equity securities or senior loans of the Company,
Parent or any other company or any currency or commodity that
may be involved in this transaction.
It is understood that this letter is for the information of the
Board of Directors of the Company and may not be used for any
other purpose without our prior written consent, except that
this opinion may be included in its entirety, if required, in
any filing required to be made by the Company in respect of the
transaction with the Securities and Exchange Commission. In
addition, this opinion does not in any manner address the prices
at which the Parent Common Stock will trade at any time or
following consummation of the Merger, and Morgan Stanley
expresses no opinion or recommendation as to how the
shareholders of the Company and Parent should vote at the
shareholders meetings to be held in connection with the
Merger.
Based on and subject to the foregoing, we are of the opinion on
the date hereof that the Exchange Ratio pursuant to the Merger
Agreement is fair from a financial point of view to holders of
shares of the Company Common Stock.
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Very truly yours, |
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MORGAN STANLEY & CO. INCORPORATED |
C-2
PART II
Item 20. Indemnification
of Directors and Officers
Brooks is incorporated under the laws of the State of Delaware.
Section 102 of the DGCL provides that a Delaware
corporation may eliminate the personal liability of directors of
a corporation to the corporation or its stockholders for
monetary damages for a breach of fiduciary duty as a director,
except where the director breached his duty of loyalty, failed
to act in good faith, engaged in intentional misconduct or
knowingly violated a law, authorized the payment of a dividend
or approved a stock repurchase in violation of Delaware
corporate law or obtained an improper personal benefit.
Section 145 of the DGCL provides that a Delaware
corporation may indemnify any persons who were, are or are
threatened to be made parties to any threatened, pending or
completed action, suit or proceeding, whether civil, criminal,
administrative or investigative (other than an action by or in
the right of such corporation), by reason of the fact that such
person is or was an officer, director, employee or agent of such
corporation, or is or was serving at the request of such
corporation as a director, officer, employee or agent of another
corporation or enterprise. The indemnity may include expenses
(including attorneys fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such
person in connection with such action, suit or proceeding,
provided that such person acted in good faith and in a manner he
reasonably believed to be in or not opposed to the
corporations best interests and, with respect to any
criminal action or proceeding, had no reasonable cause to
believe that his conduct was illegal.
Section 145 further authorizes a corporation to purchase
and maintain insurance on behalf of any person who is or was a
director, officer, employee or agent of the corporation, or is
or was serving at the request of the corporation as a director,
officer, employee or agent of another corporation or enterprise,
against any liability asserted against him and incurred by him
in any such capacity, arising out of his status as such, whether
or not the corporation would otherwise have the power to
indemnify him under Section 145.
Brooks certificate of incorporation provides that its
directors shall not be liable to Brooks or its stockholders for
monetary damages for breach of fiduciary duty as a director,
except that directors will be liable to the extent permitted by
applicable law for breach of the directors duty of loyalty
to the stockholders, actions or omissions not taken in good
faith or that involve intentional misconduct, pursuant to
Section 174 of the DGCL or for any transaction from which
the director derived an improper benefit. Brooks
certificate of incorporation provides that Brooks may indemnify
its directors and officers to the full extent permitted by the
laws of the State of Delaware. In addition, Brooks bylaws
provide that Brooks may indemnify its officers and directors to
the fullest extent permitted by applicable law.
All of Brooks directors and officers are covered by
insurance policies maintained by Brooks against specified
liabilities for actions taken in their capacities as such,
including liabilities under the Securities Act, as amended. In
addition, Brooks has entered into indemnification agreements
with each of its directors and executive officers that provide
for indemnification and expense advancement to the fullest
extent permitted under the DGCL. Brooks anticipates entering
into these indemnification agreements with the former Helix
directors who join Brooks board of directors in connection
with the merger and the former Helix employees who join Brooks
as executive officers in connection with the merger.
II-1
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Item 21. |
Exhibits and Financial Statement Schedules |
(a) Exhibits:
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Exhibit |
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No. |
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Description |
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2 |
.1 |
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Agreement and Plan of Merger, dated as of July 11, 2005, by
and among Brooks Automation, Inc. (Brooks), Helix
Technology Corporation (Helix) and Mt. Hood
Corporation (Mt. Hood) (included in the joint proxy
statement/ prospectus as Annex A). |
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2 |
.2 |
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Amendment No. 1 to Agreement and Plan of Merger, dated as
of August 29, 2005, among Brooks, Helix and Mt. Hood.* |
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3 |
.1 |
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Certificate of Incorporation of Brooks. |
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3 |
.2 |
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Certificate of Designations of Series A Junior
Participating Preferred Stock of Brooks (incorporated herein by
reference to Exhibit 3.03 of Brooks registration
statement on Form S-3, filed on August 27, 1997). |
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3 |
.3 |
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Certificate of Amendment of Certificate of Incorporation of
Brooks. |
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3 |
.4 |
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Certificate of Amendment of Certificate of Incorporation of
Brooks.* |
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3 |
.5 |
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Certificate of Increase of Shares Designated as Series A
Junior Participating Preferred Stock of Brooks.* |
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3 |
.6 |
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Certificate of Ownership and Merger of PRI Automation, Inc. into
Brooks.* |
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3 |
.7 |
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Certificate of Designations, Preferences, Rights and Limitations
of Special Voting Preferred Stock of Brooks (incorporated by
reference to Exhibit 4.13 of Brooks registration
statement on Form S-3 (Registration No. 333-87194), filed
on April 29, 2002, as amended May 13, 2002). |
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3 |
.8 |
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Certificate of Change of Registered Agent and Registered Office
of Brooks.* |
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3 |
.9 |
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Certificate of Amendment of Certificate of Incorporation of
Brooks (incorporated by reference to Exhibit 3.01 of
Brooks quarterly report for the quarterly period ended
March 31, 2003, filed on May 13, 2003). |
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3 |
.10 |
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Brooks Bylaws (incorporated herein by reference to Brooks
registration statement on Form S-1 (Registration
No. 33-87296), filed on December 13, 1994). |
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4 |
.1 |
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Form of Brooks Common Stock Certificate (incorporated herein by
reference to Exhibit 4.01 of Brooks registration
statement on Form S-3 (Registration No. 333-88320),
filed May 15, 2002). |
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4 |
.2 |
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Rights Agreement, dated as of July 23, 1997, between Brooks
and Equiserve Trust Company, N.A. (successor to BankBoston, N.A.
(the Rights Agent)) (incorporated herein by
reference to Exhibit 1 of Brooks registration
statement on Form 8-A filed on August 7, 1997). |
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4 |
.3 |
|
Amendment No. 1 to Rights Agreement, dated as of
October 23, 2001, between Brooks and the Rights Agent
(incorporated herein by reference to Exhibit 4.04 of
Brooks annual report on Form 10-K for year ended
September 30, 2001 filed on December 13, 2001). |
|
|
4 |
.4 |
|
Amendment No. 2 to Rights Agreement, dated as of
May 20, 2002, between Brooks and the Rights Agent
(incorporated herein by reference to Exhibit 99.1 of
Brooks registration statement on Form 8-A/ A filed on
June 4, 2002). |
|
|
4 |
.5 |
|
Amendment No. 3 to Rights Agreement, dated as of
July 8, between Brooks and the Rights Agent (incorporated
herein by reference to Exhibit 99.4 of Brooks current
report on Form 8-K filed on July 11, 2005). |
|
|
4 |
.6 |
|
Indenture dated as of May 23, 2001 between the Company and
State Street Bank and Trust Company, as Trustee (incorporated
herein by reference to Exhibit 4.1 of Brooks current
report on Form 8-K filed on May 29, 2001). |
|
|
5 |
|
|
Opinion of Thomas S. Grilk, Esq. |
|
|
8 |
.1 |
|
Opinion of Ropes & Gray LLP regarding tax matters. |
|
|
8 |
.2 |
|
Opinion of Palmer & Dodge LLP regarding tax matters. |
|
|
23 |
.1 |
|
Consent of PricewaterhouseCoopers LLP, relating to financial
statements of Brooks. |
|
|
23 |
.2 |
|
Consent of PricewaterhouseCoopers LLP, relating to financial
statements of Helix. |
II-2
|
|
|
|
|
Exhibit |
|
|
No. |
|
Description |
|
|
|
|
|
23 |
.3 |
|
Consent of Thomas S. Grilk, Esq. (included in
Exhibit 5). |
|
|
23 |
.4 |
|
Consent of Ropes & Gray LLP (included in
Exhibit 8.1). |
|
|
23 |
.5 |
|
Consent of Palmer & Dodge LLP (included in
Exhibit 8.2). |
|
|
24 |
|
|
Powers of Attorney.* |
|
|
99 |
.1 |
|
Opinion of Needham & Company, LLC (included in the
joint proxy statement/ prospectus as Annex B). |
|
|
99 |
.2 |
|
Opinion of Morgan Stanley & Co. Incorporated (included
in the joint proxy statement/ prospectus as Annex C). |
|
|
99 |
.3 |
|
Consent of Needham & Company, LLC.* |
|
|
99 |
.4 |
|
Consent of Morgan Stanley & Co. Incorporated.* |
|
|
99 |
.5 |
|
Form of Proxy of Brooks. |
|
|
99 |
.6 |
|
Form of Proxy of Helix. |
|
|
|
Brooks agrees to furnish supplementally a copy of any omitted
schedule to the SEC upon request. |
Item 22. Undertakings.
(a) The undersigned registrant hereby undertakes:
|
|
|
(1) to file, during any period in which offers or sales are
being made, a post effective amendment to this registration
statement: |
|
|
|
(i) to include any prospectus required by
Section 10(a)(3) of the Securities Act of 1933, as amended
(the Securities Act); |
|
|
(ii) to reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement (or
the most recent post-effective amendment thereof)
Notwithstanding the foregoing, any increase or decrease in
volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered)
and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than a 20% change in the maximum
aggregate offering price set forth in the Calculation of
Registration Fee table in the effective registration
statement; and |
|
|
(iii) to include any material information with respect to
the plan of distribution not previously disclosed in the
registration statement or any material change to such
information in the registration statement; |
|
|
|
(2) that, for the purpose of determining any liability
under the Securities Act, each such post effective amendment
shall be deemed to be a new registration statement relating to
the securities offered therein, and the offering of such
securities at that time shall be deemed to be the initial bona
fide offering thereof; and |
|
|
(3) to remove from registration by means of a
post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering. |
(b) The undersigned registrant hereby undertakes that, for
purposes of determining any liability under the Securities Act
of 1933, each filing of the registrants annual report
pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plans annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that
is incorporated by
II-3
reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof.
(c) The undersigned registrant hereby undertakes as follows:
|
|
|
(1) that prior to any public reoffering of the securities
registered hereunder through use of a prospectus which is a part
of this registration statement, by any person or party who is
deemed to be an underwriter within the meaning of
Rule 145(c), the issuer undertakes that such reoffering
prospectus will contain the information called for by the
applicable registration form with respect to reofferings by
persons who may be deemed underwriters, in addition to the
information called for by the other items of the applicable form. |
|
|
(2) The undersigned registrant hereby undertakes that every
prospectus: (i) that is filed pursuant to paragraph 1
immediately preceding, or (ii) that purports to meet the
requirements of Section 10(a)(3) of the Act and is used in
connection with an offering of securities subject to
Rule 415, will be filed as part of an amendment to the
registration statement and will not be used until such amendment
is effective, and that, for purposes of determining any
liability under the Securities Act of 1933, each such
post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered
therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof. |
(d) Insofar as indemnification for liabilities arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the registrant pursuant to
the foregoing provisions, or otherwise, the registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Securities Act of 1933 and is, therefore,
unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the
securities being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act of 1933
and will be governed by the final adjudication of such issue.
(e) The undersigned registrant hereby undertakes to respond
to requests for information that is incorporated by reference
into the prospectus pursuant to Item 4, 10(b), 11 or 13 of
this form, within one business day of receipt of such request,
and to send the incorporated documents by first-class mail or
other equally prompt means. This includes information contained
in documents filed subsequent to the effective date of the
registration statement through the date of responding to the
request.
(f) The undersigned registrant hereby undertakes to supply
by means of a post-effective amendment all information
concerning a transaction, and the company being acquired
involved therein, that was not the subject of and included in
the registration statement when it became effective.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act, the
registrant has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly
authorized, in the Town of Chelmsford, Commonwealth of
Massachusetts, on September 22, 2005.
|
|
|
|
|
Edward C. Grady |
|
Its: Chief Executive Officer and President |
Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed on September 22,
2005, by the following persons in the capacities indicated.
|
|
|
|
|
Signature |
|
Title |
|
|
|
|
/s/ Edward C. Grady
Edward
C. Grady |
|
Chief Executive Officer, President and Director (Principal
Executive Officer) |
|
/s/ Robert W.
Woodbury, Jr.
Robert
W. Woodbury, Jr. |
|
Senior Vice President and Chief Financial Officer (Principal
Financial and Accounting Officer) |
|
*
A.
Clinton Allen |
|
Director |
|
*
Roger
D. Emerick |
|
Director |
|
*
Amin
J. Khoury |
|
Director |
|
*
Joseph
R. Martin |
|
Director |
|
*
John
K. McGillicuddy |
|
Director |
|
*
Robert
J. Therrien |
|
Director |
|
|
* |
The undersigned, by signing his name hereto, does sign and
execute this registration statement pursuant to the powers of
attorney executed by the above-named directors of the
registrant, which have been filed with the Securities and
Exchange Commission on behalf of such directors. |
|
|
By: /s/ Edward C. Grady |
Date: September 22, 2005 |
Edward C. Grady
EXHIBIT INDEX
|
|
|
|
|
Exhibit |
|
|
No. |
|
Description |
|
|
|
|
2 |
.1 |
|
Agreement and Plan of Merger, dated as of July 11, 2005, by
and among Brooks Automation, Inc. (Brooks), Helix
Technology Corporation (Helix) and Mt. Hood
Corporation (Mt. Hood) (included in the joint proxy
statement/ prospectus as Annex A). |
|
|
2 |
.2 |
|
Amendment No. 1 to Agreement and Plan of Merger, dated as of
August 29, 2005, among Brooks, Helix and Mt. Hood.* |
|
|
3 |
.1 |
|
Certificate of Incorporation of Brooks. |
|
|
3 |
.2 |
|
Certificate of Designations of Series A Junior
Participating Preferred Stock of Brooks (incorporated herein by
reference to Exhibit 3.03 of Brooks registration
statement on Form S-3, filed on August 27, 1997). |
|
|
3 |
.3 |
|
Certificate of Amendment of Certificate of Incorporation of
Brooks. |
|
|
3 |
.4 |
|
Certificate of Amendment of Certificate of Incorporation of
Brooks.* |
|
|
3 |
.5 |
|
Certificate of Increase of Shares Designated as Series A
Junior Participating Preferred Stock of Brooks.* |
|
|
3 |
.6 |
|
Certificate of Ownership and Merger of PRI Automation, Inc. into
Brooks.* |
|
|
3 |
.7 |
|
Certificate of Designations, Preferences, Rights and Limitations
of Special Voting Preferred Stock of Brooks (incorporated by
reference to Exhibit 4.13 of Brooks registration
statement on Form S-3 (Registration No. 333-87194), filed
on April 29, 2002, as amended May 13, 2002). |
|
|
3 |
.8 |
|
Certificate of Change of Registered Agent and Registered Office
of Brooks.* |
|
|
3 |
.9 |
|
Certificate of Amendment of Certificate of Incorporation of
Brooks (incorporated by reference to Exhibit 3.01 of
Brooks quarterly report for the quarterly period ended
March 31, 2003, filed on May 13, 2003). |
|
|
3 |
.10 |
|
Brooks Bylaws (incorporated herein by reference to Brooks
registration statement on Form S-1 (Registration
No. 33-87296), filed on December 13, 1994). |
|
4 |
.1 |
|
Form of Brooks Common Stock Certificate (incorporated herein by
reference to Exhibit 4.01 of Brooks registration
statement on Form S-3 (Registration No. 333-88320),
filed May 15, 2002). |
|
|
4 |
.2 |
|
Rights Agreement, dated as of July 23, 1997, between Brooks
and Equiserve Trust Company, N.A. (successor to BankBoston, N.A.
(the Rights Agent)) (incorporated herein by
reference to Exhibit 1 of Brooks registration
statement on Form 8-A filed on August 7, 1997). |
|
|
4 |
.3 |
|
Amendment No. 1 to Rights Agreement, dated as of
October 23, 2001, between Brooks and the Rights Agent
(incorporated herein by reference to Exhibit 4.04 of
Brooks annual report on Form 10-K for year ended
September 30, 2001 filed on December 13, 2001). |
|
|
4 |
.4 |
|
Amendment No. 2 to Rights Agreement, dated as of
May 20, 2002, between Brooks and the Rights Agent
(incorporated herein by reference to Exhibit 99.1 of
Brooks registration statement on Form 8-A/ A filed on
June 4, 2002). |
|
|
4 |
.5 |
|
Amendment No. 3 to Rights Agreement, dated as of
July 8, between Brooks and the Rights Agent (incorporated
herein by reference to Exhibit 99.4 of Brooks current
report on Form 8-K filed on July 11, 2005). |
|
|
4 |
.6 |
|
Indenture dated as of May 23, 2001 between the Company and
State Street Bank and Trust Company, as Trustee (incorporated
herein by reference to Exhibit 4.1 of Brooks current
report on Form 8-K filed on May 29, 2001). |
|
|
5 |
|
|
Opinion of Thomas S. Grilk, Esq. |
|
|
8 |
.1 |
|
Opinion of Ropes & Gray LLP regarding tax matters. |
|
|
8 |
.2 |
|
Opinion of Palmer & Dodge LLP regarding tax matters. |
|
|
23 |
.1 |
|
Consent of PricewaterhouseCoopers LLP, relating to financial
statements of Brooks. |
|
|
23 |
.2 |
|
Consent of PricewaterhouseCoopers LLP, relating to financial
statements of Helix. |
|
|
23 |
.3 |
|
Consent of Thomas S. Grilk, Esq. (included in
Exhibit 5). |
|
|
23 |
.4 |
|
Consent of Ropes & Gray LLP (included in
Exhibit 8.1). |
|
|
23 |
.5 |
|
Consent of Palmer & Dodge LLP (included in
Exhibit 8.2). |
|
|
|
|
|
Exhibit |
|
|
No. |
|
Description |
|
|
|
|
|
24 |
|
|
Powers of Attorney.* |
|
|
99 |
.1 |
|
Opinion of Needham & Company, LLC (included in the
joint proxy statement/ prospectus as Annex B). |
|
|
99 |
.2 |
|
Opinion of Morgan Stanley & Co. Incorporated (included
in the joint proxy statement/ prospectus as Annex C). |
|
|
99 |
.3 |
|
Consent of Needham & Company, LLC.* |
|
|
99 |
.4 |
|
Consent of Morgan Stanley & Co. Incorporated.* |
|
|
99 |
.5 |
|
Form of Proxy of Brooks. |
|
|
99 |
.6 |
|
Form of Proxy of Helix. |
|
|
|
Brooks agrees to furnish supplementally a copy of any omitted
schedule to the SEC upon request. |