UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
(Rule 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT
TO § 240.13d-1(a) AND AMENDMENTS THERETO FILED
PURSUANT TO § 240.13d-2(a)
UNDER THE SECURITIES EXCHANGE ACT OF 1934
LECROY CORPORATION |
(Name of Issuer)
Common Stock, par value $0.01 per share |
(Title of Class of Securities)
52324W109 |
(CUSIP Number)
John T. Kuelbs Executive Vice President, General Counsel and Secretary Teledyne Technologies Incorporated 1049 Camino Dos Rios Thousand Oaks, California 91360-2362 (805) 373-4545 |
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
May 28, 2012 |
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.
Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.
* | The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. |
The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (the Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
CUSIP No. 52324W109 | Page 1 of 6 |
(1) |
Names of Reporting Persons I.R.S. Identification Nos. of Above Persons (Entities Only)
Teledyne Technologies Incorporated (251843385) | |||||
(2) | Check the Appropriate Box if a Member of a Group (a) ¨ (b) ¨
| |||||
(3) | SEC Use Only
| |||||
(4) | Source of Funds
BK/WC (See Item 3) | |||||
(5) | Check Box if Disclosure of Legal Proceedings is Required Pursuant to Item 2(d) or 2(e) ¨
| |||||
(6) | Citizenship or Place of Organization
Delaware | |||||
Number of shares beneficially owned by each reporting person with |
(7) | Sole voting power
-0- | ||||
(8) | Shared voting power
1,047,840* | |||||
(9) | Sole dispositive power
-0- | |||||
(10) | Shared dispositive power
-0- | |||||
(11) |
Aggregate amount beneficially owned by each reporting person
1,047,840* | |||||
(12) |
Check box if the aggregate amount in Row (11) excludes certain shares ¨
| |||||
(13) |
Percent of class represented by amount in Row (11)
6.16** | |||||
(14) |
Type of reporting person
CO |
* | Beneficial ownership of the common stock referred to herein is being reported hereunder solely because Teledyne Technologies Incorporated (Teledyne), may be deemed to have beneficial ownership as a result of Stockholder Agreements (described further in Items 3 and 4 of this Schedule 13D) entered into by and among Teledyne Technologies Incorporated, Luna Merger Sub, Inc. and the Stockholders (as defined below), and the irrevocable proxies associated therewith, with respect to 1,047,840 shares (including shares that may be acquired upon exercise of options to purchase shares) of LeCroy Corporation common stock. The filing of this Schedule 13D shall not be construed as an admission that Teledyne is, for purposes of Section 13(d) of the Act, or for any other purpose, the beneficial owner of any of such shares of LeCroy Corporation, and such beneficial ownership is expressly disclaimed. |
** | Based upon 16,830,433 shares of common stock of LeCroy Corporation outstanding as of May 28, 2012 as represented by LeCroy Corporation in the Merger Agreement (as defined below), plus the 181,435 shares of common stock reserved for issuance pursuant to outstanding options held by the Stockholders who are parties to the Stockholder Agreements described herein. |
CUSIP No. 52324W109 | Page 2 of 6 |
Item 1. | Security and Issuer. |
This statement relates to shares of common stock of LeCroy Corporation (LeCroy), par value $0.01 per share. The address and principal executive office of LeCroy is 700 Chesnut Ridge Road, Chesnut Ridge, New York, 10977.
Item 2. | Identity and Background. |
(a)-(c) and (f) The name of the person filing this statement is Teledyne Technologies Incorporated, a Delaware corporation (Teledyne). The principal executive offices of Teledyne are located at 1049 Camino Dos Rios, Thousand Oaks, California 91360-2362.
Pursuant to Rule 13d-4 of the Act, Teledyne expressly declares that the filing of this Schedule 13D shall not be construed as an admission that any person is, for the purposes of Section 13(d) and/or Section 13(g) of the Act or otherwise, the beneficial owner of any securities covered by this Schedule 13D held by any other person.
Attached hereto as Schedule I, and incorporated herein by reference, is additional information required by this Item 2(a)(c) and (f) with respect to each executive officer and director of Teledyne as of the date hereof.
(d) During the last five years, neither Teledyne, nor to the best knowledge of Teledyne, any of the persons listed on Schedule I, has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors).
(e) During the last five years, neither Teledyne, nor to the best knowledge of Teledyne, any of the persons listed on Schedule I, was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.
Item 3. | Source and Amount of Funds or Other Consideration. |
On May 28, 2012, LeCroy, Teledyne and Luna Merger Sub, Inc. (Merger Sub), entered into an Agreement and Plan of Merger (the Merger Agreement). Pursuant to the terms of, and subject to the conditions set forth in, the Merger Agreement, (i) Teledyne will acquire all of the outstanding shares of LeCroy common stock for $14.30 per share in cash, without interest, and (ii) Merger Sub will be merged with and into LeCroy, with LeCroy continuing as the surviving corporation and a wholly owned subsidiary of Teledyne (the Merger). The anticipated aggregate consideration to be paid by Teledyne to consummate the Merger is approximately $291 million taking into account LeCroys stock options, stock appreciation rights and net debt as of March 31, 2012. The completion of the Merger is not subject to a financing contingency. Teledyne intends to use existing cash on hand and availability under its credit facility to pay the Merger consideration. Teledyne has a $550 million credit facility, which does not expire until February 25, 2016. At April 1, 2012, the available borrowing capacity under this facility was $399.5 million.
Concurrently with the execution and delivery of the Merger Agreement, and as a condition and inducement to the willingness of Teledyne and Merger Sub to enter into the Merger Agreement, each of the directors and executive officers of LeCroy (the Stockholders) has entered into a stockholder agreement (each a Stockholder Agreement and collectively the Stockholder Agreements) covering a total of 1,047,840 shares (including shares that may be acquired upon exercise of options to acquire shares) of LeCroy common stock legally or beneficially owned by the Stockholders (the Shares). Under the Stockholder Agreements, each Stockholder has agreed to vote his Shares in favor of the Merger and has also agreed to certain restrictions on the disposition of such Shares, subject to the terms and conditions set forth in the Stockholder Agreements. The Stockholder Agreements provide that they will terminate concurrently with any termination of the Merger Agreement.
Neither Teledyne nor Merger Sub paid any additional consideration to the Stockholders (or their respective affiliates) to induce the Stockholders to enter into such Stockholder Agreements.
The foregoing description of the Merger Agreement and the Stockholder Agreements does not purport to be complete and is qualified in its entirety by reference to the Merger Agreement and the form of Stockholder Agreement, copies of which are filed as Exhibits hereto.
CUSIP No. 52324W109 | Page 3 of 6 |
Item 4. | Purpose of Transaction. |
(a)-(b)
The information contained in Item 3 is incorporated herein by reference.
The purpose of the Stockholder Agreements is to facilitate the consummation of the transactions contemplated by the Merger Agreement. Pursuant to the terms of the Stockholder Agreements, the Stockholders have agreed, among other things, to vote (i) in favor of the approval of the Merger and the adoption of the Merger Agreement and the other transactions contemplated thereby; (ii) if so directed by Teledyne against certain actions which could reasonably be expected to impede, interfere with, delay, postpone or materially and adversely affect the transactions contemplated by the Merger Agreement or the likelihood of such transactions being consummated; and (iii) in favor of any other matter reasonably necessary for the consummation of the transactions contemplated by the Merger Agreement which is considered at any such meeting of the stockholders of LeCroy.
During the term of the Stockholder Agreements, each Stockholder has also granted an irrevocable proxy appointing Teledyne, Merger Sub or any designated nominee to vote each Stockholders Shares with respect to the matters described in clauses (i), (ii) and (iii) of the preceding paragraph.
(c)
Not applicable.
(d)
Under the Merger Agreement, the directors and officers of Merger Sub at the effective time of the Merger will be the directors and officers of the surviving corporation.
(e)(f)
Pursuant to the Merger Agreement, during the period from the date of the Merger Agreement until the effective time of the Merger, LeCroy is required to request approval from Teledyne before undertaking a variety of actions, including, without limitation, a merger or consolidation with another person, issuing securities, altering its capital structure, declaring or paying dividends, incurring debt, selling or encumbering its assets, or making certain expenditures.
Upon consummation of the Merger, LeCroy will become a wholly owned subsidiary of Teledyne, under the name Teledyne LeCroy, Inc. After completion of the Merger, Teledyne expects to work with LeCroys management to evaluate and review LeCroy and its business, assets, corporate structure, operations, properties and strategic alternatives and to integrate LeCroy into Teledynes business.
(g)
Upon the completion of the Merger, the certificate of incorporation of LeCroy, as amended, shall be the certificate of incorporation of the surviving corporation, and the bylaws of Merger Sub shall become the bylaws of the surviving corporation.
(h)(i)
Following the Merger, LeCroys common stock will no longer be listed for trading on The NASDAQ Global Select Market and will become eligible for termination of registration pursuant to Section 12(g)(4) of the Act.
(j)
Other than as described above, Teledyne currently has no plan or proposal that relates to, or may result in, any of the matters listed in Items 4(a)(j) of this Schedule 13D (although Teledyne reserves the right to develop such plans).
CUSIP No. 52324W109 | Page 4 of 6 |
Item 5. | Interest in Securities of the Issuer. |
(a)(b)
The following disclosure assumes that, as of May 28, 2012, as represented by LeCroy in the Merger Agreement, there were 16,830,433 shares of LeCroy common stock issued and outstanding.
By virtue of the Stockholder Agreements, Teledyne may be deemed to share with the Stockholders the power to vote the Stockholders Shares solely with respect to those matters described in the Stockholder Agreement. As of May 28, 2012, there were an aggregate of 1,047,840 Shares that were either owned by the parties to the Stockholder Agreements or over which such parties had the power to vote and dispose, representing approximately 6.16% of LeCroys outstanding common stock, assuming exercise of the 181,435 outstanding options included in the Stockholders Shares. Except as described in Item 4 of this Schedule 13D, Teledyne is not entitled to any rights as a stockholder of LeCroy in respect of the Shares.
Other than Shares that may be deemed to be beneficially owned in connection with the Stockholder Agreements, Teledyne does not beneficially own any shares of LeCroy common stock. To the knowledge of Teledyne, none of the persons set forth on Schedule I beneficially owns any shares of LeCroy common stock.
See the description set forth under Item 4 of this statement, which is incorporated herein by reference.
(c)
To the knowledge of Teledyne, no transaction in LeCroys shares of common stock has been effected during the past 60 days by Teledyne or any person set forth on Schedule I.
(d)
To the knowledge of Teledyne, no other person has the right to receive, or the power to direct, the receipt of dividends from, or the proceeds from the sale of, the shares of LeCroys common stock.
(e)
Not applicable.
Item 6. | Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer. |
The information set forth in Items 3, 4 and 5 of this statement and the exhibits to this statement are hereby incorporated by reference herein.
Item 7. | Material to be Filed as Exhibits. |
EXHIBIT INDEX
Exhibit Number |
Description | |
2.1 | Agreement and Plan of Merger, dated as of May 28, 2012, by and among LeCroy, Teledyne and Merger Sub (incorporated by reference to Exhibit 2.1 to LeCroys Current Report on Form 8-K filed with the Securities Exchange Commission on May 29, 2012 (File No. 000-26634)). | |
2.2 | Form of Stockholder Agreement, dated as of May 28, 2012, by and between Teledyne, Merger Sub and each of the directors and executive officers of LeCroy (with schedule of Stockholders and Shares attached). |
CUSIP No. 52324W109 | Page 5 of 6 |
SIGNATURE
After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Date: June 1, 2012
TELEDYNE TECHNOLOGIES INCORPORATED
By: | /s/ Melanie S. Cibik | |
Name: | Melanie S. Cibik | |
Title: | Vice President, Associate General Counsel and Assistant Secretary |
CUSIP No. 52324W109 | Schedule I |
SCHEDULE I
Directors and Executive Officers1 of Teledyne Technologies Incorporated
This Schedule I sets forth the names and current principal occupations or employment of each of the directors and executive officers of Teledyne. Unless otherwise indicated, the business address for each person is c/o Teledyne Technologies Incorporated, 1049 Camino Dos Rios, Thousand Oaks, California 91360-2362. All of the persons listed below are citizens of the United States of America.
Board of Directors
Name |
Present Principal Occupation or Employment | |
Roxanne S. Austin | President of Austin Investment Advisors | |
Frank V. Cahouet | Retired Chairman and Chief Executive Officer of Mellon Financial Corporation | |
Charles Crocker | Chairman and Chief Executive Officer, Crocker Capital and Retired Chairman and Chief Executive Officer of BEI Technologies, Inc. | |
Kenneth C. Dahlberg | Retired Chairman of the Board and Former Chief Executive Officer of Science Applications International Corporation (SAIC) | |
Simon M. Lorne | Vice Chairman and Chief Legal Officer of Millennium Management LLC | |
Robert Mehrabian | Chairman, President and Chief Executive Officer of Teledyne | |
Paul D. Miller | Retired Chairman of Alliant Techsystems, Inc. (ATK) | |
Michael T. Smith | Retired Chairman of the Board and Chief Executive Officer of Hughes Electronics Corporation | |
Wesley W. von Schack | Chairman of AEGIS Insurance Company and Retired Chairman, President and Chief Executive Officer of Energy East Corporation |
Executive Officers
Name |
Present Principal Occupation or Employment | |
Robert Mehrabian | Chairman, President and Chief Executive Officer | |
John T. Kuelbs | Executive Vice President, General Counsel and Secretary | |
Dale A. Schnittjer | Senior Vice President and Chief Financial Officer | |
Susan L. Main | Vice President and Controller | |
Aldo Pichelli | President and Chief Operating Officer, Instrumentation and Aerospace and Defense Electronics Segments | |
Rex D. Geveden | President, Engineered Systems Segment and President and Chief Executive Officer of Teledyne Scientific & Imaging , LLC |
1 | The persons listed are Teledynes statutory officers for purposes of Section 16 of the Securities Exchange Act of 1934, as amended, and the regulations promulgated thereunder, as designed by Teledynes Board of Directors on April 25, 2012. |
Exhibit 2.2
FORM OF
STOCKHOLDER AGREEMENT
This STOCKHOLDER AGREEMENT (this Agreement), dated as of May 28, 2012, is made and entered into among TELEDYNE TECHNOLOGIES INCORPORATED, a Delaware corporation (Parent), LUNA MERGER SUB, INC., a Delaware corporation and wholly-owned subsidiary of Parent (the Merger Sub), and the individual(s) listed under the heading STOCKHOLDER on the signature page hereof (each, a Stockholder and collectively, the Stockholders).
WITNESSETH:
WHEREAS, as of the date hereof, each Stockholder is the beneficial owner (beneficial owner, beneficial ownership, beneficially, and related terms, wherever used herein, within the meaning of Section 13(d)(1) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and the rules and regulations promulgated thereunder (including, without limitation, Rule 13d-3 under the Exchange Act)) of the number of shares of common stock, par value $0.01 (Company Common Stock), of LECROY CORPORATION (the Company) set forth opposite such Stockholders name of Exhibit A hereto (the total number of shares of Company Common Stock beneficially owned by the Stockholders, together with any shares of Company Common Stock acquired or beneficially owned by Stockholder after the date hereof, whether upon the exercise of options or other rights, the vesting of restricted stock, the conversion or exchange of convertible or exchangeable securities, whether by means of purchase, dividend, distribution, or otherwise, prior to the termination of this Agreement, together with all associated rights and interests, being collectively referred to as the Shares);
WHEREAS, concurrently with the execution and delivery of this Agreement, the Company, Parent and Merger Sub are entering into an Agreement and Plan of Merger (the Merger Agreement) of even date herewith, which (upon the terms and subject to the conditions set forth therein) provides for the merger of Merger Sub with and into the Company with the Company surviving the merger (the Merger); and
WHEREAS, as a condition to their willingness to enter into the Merger Agreement, Parent and Merger Sub have requested the Stockholders to agree, and in order to induce Parent and Merger Sub to enter into the Merger Agreement, the Stockholders have agreed to enter into this Agreement.
NOW, THEREFORE, in consideration of the foregoing premises and the representations, warranties, covenants, and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
STOCKHOLDERS REPRESENTATIONS AND WARRANTIES
Each Stockholder hereby represents and warrants to Parent and Merger Sub as follows:
Section 1.1 Authorization.
(a) Stockholder possesses the requisite power, authority and legal capacity to (i) execute, deliver and perform Stockholders obligations under this Agreement, (ii) to appoint or cause to be appointed Merger Sub and Parent (or any nominee thereof) as Stockholders Proxy (as defined below), and (iii) to consummate the transactions contemplated hereby.
(b) This Agreement has been duly executed and delivered by Stockholder and constitutes a legal, valid and binding obligation of Stockholder, enforceable against Stockholder in accordance with its terms, except as enforceability (i) may be limited by bankruptcy, insolvency, moratorium or other similar laws affecting or relating to creditors rights generally and (ii) is subject to general principles of equity.
(c) There is no other beneficial owner of any of the Shares set forth opposite Stockholders name on Exhibit A hereto or other beneficiary or holder of any other interest in any of such Shares whose consent is required for the execution and delivery of this Agreement or for the consummation by Stockholder of the transactions contemplated hereby.
(d) Except as listed on Exhibit A hereto, Stockholder is not a party to any stockholder agreement, option agreement, purchase agreement, buy-sell agreement, right of first refusal or first offer, voting trust, proxy, or other contract with respect to the issuance, transfer or voting of any Company Common Stock (other than this Agreement).
Section 1.2 No Conflicts; Required Filings and Consents.
(a) The execution and delivery of this Agreement by Stockholder does not, and the performance of this Agreement by Stockholder will not, (i) conflict with or violate any law applicable to Stockholder or by which Stockholder or any of Stockholders assets are bound or affected, or (ii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, acceleration, or cancellation of, or result in the creation of a lien or encumbrance on any assets of Stockholder, including, without limitation, the Shares set forth opposite Stockholders name on Exhibit A hereto, pursuant to, any note, bond, mortgage, indenture, contract, agreement, lease, license, permit, franchise, or other instrument or obligation to which Stockholder is a party or by which Stockholder or any of Stockholders assets are bound or affected, except in the case of clause (ii), for such matters as would not prevent or in any way impair Stockholders ability to perform Stockholders obligations under this Agreement.
(b) The execution and delivery of this Agreement by Stockholder does not, and the performance of this Agreement by Stockholder will not, require any consent, approval, authorization or permit of, or filing with or notification to, any governmental or regulatory authority, domestic or foreign.
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Section 1.3 Title to Shares. Stockholder is the sole beneficial owner of the Shares set forth opposite Stockholders name on Exhibit A hereto, free and clear of any pledge, lien, security interest, mortgage, claim, proxy, voting restriction or other voting trust, agreement, understanding, or arrangement of any kind, right of first refusal or other limitation on disposition, adverse claim of ownership, or other encumbrance of any kind, other than restrictions imposed by securities laws or pursuant to this Agreement. As of the date hereof, Stockholder does not own, beneficially or of record, any other shares of Company Common Stock or any other equity interests of the Company, including without limitation any options or other rights to acquire Shares, other than as identified on Exhibit A hereto.
Section 1.4 Information for Offer Documents and Proxy Statement. None of the information relating to Stockholder and Stockholders affiliates provided in writing to the Company by or on behalf of Stockholder or Stockholders affiliates specifically for inclusion in the Proxy Statement will, at the times the Proxy Statement is filed with the U.S. Securities and Exchange Commission or is first published, sent or given to stockholders of the Company, or at the time of the special meeting of stockholders to consider the Merger, 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.
Section 1.5 Acknowledgment of No Claims. Stockholder acknowledges and agrees that it is not aware of any present or potential future disputes, controversies, demands, claims, rights, actions, and causes of action of every kind and nature involving or affecting the Shares or the Company, involving or relating to (i) any claim or right that Stockholder may assert or exercise in Stockholders capacity as a Stockholder, director, officer or employee of the Company or in any other capacity and (ii) any claim, right or cause of action based upon a breach of any express, implied, oral or written contract or agreement to which the Stockholder and Company are parties.
Section 1.6 Acknowledgment of No Broker Fees. Stockholder, on behalf of itself and Stockholders affiliates, acknowledges and agrees that neither it nor they shall be paid or shall otherwise be entitled to any brokers, finders, financial advisors or other similar fee or commission in connection with the transactions contemplated hereby or by the Merger Agreement.
ARTICLE II
STOCKHOLDERS COVENANTS
Each Stockholder hereby covenants to Parent and Merger Sub as follows:
Section 2.1 Voting of Shares. Stockholder hereby irrevocably agrees that from the date hereof until the termination of this Agreement pursuant to Section 3.1 (the Term), at any meeting of the stockholders of the Company however called and in any action by written consent of the stockholders of the Company, in each case prior to the Effective Time, Stockholder shall
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vote (or direct the record owner of Stockholders Shares to vote) Stockholders Shares (i) in favor of the approval of the Merger and the adoption of the Merger Agreement and the other transactions contemplated thereby; (ii) if so directed by Parent, against any Takeover Proposal (as defined in the Merger Agreement) and against any proposal for action or agreement that would result in a breach of any covenant, representation or warranty or any other obligation or agreement of the Company under the Merger Agreement or which could reasonably be expected to result in any of the Companys obligations under the Merger Agreement not being fulfilled, any change in the composition of the board of directors of the Company (except as contemplated by the Merger Agreement), any change in the present capital structure of the Company or any amendment to the Companys corporate structure or business, or any other action which could reasonably be expected to impede, interfere with, delay, postpone or materially and adversely affect the transactions contemplated by this Agreement or the Merger Agreement or the likelihood of such transactions being consummated; and (iii) in favor of any other matter reasonably necessary for the consummation of the transactions contemplated by the Merger Agreement which is considered at any such meeting of the stockholders of the Company or in any such consent, and in connection therewith to execute any documents which are necessary or appropriate in order to effectuate the foregoing, including, without limitation, documents enabling Parent and Merger Sub or their nominee(s) to vote Stockholders Shares directly. Each Stockholder hereby agrees to permit Parent and the Company to publish and disclose in any materials delivered to the stockholders of the Company in connection with the Merger Agreement, Stockholders identity and ownership of Company Common Stock and the nature of Stockholders commitments, arrangements and understandings under this Agreement.
Section 2.2 Proxy. Stockholder hereby revokes all prior proxies or powers of attorney with respect to any and all of Stockholders Shares. During the Term, Stockholder hereby constitutes and appoints Parent and Merger Sub, or any nominee designated by Parent and Merger Sub, with full power of substitution and resubstitution at any time during the Term, as Stockholders true and lawful attorney and proxy (Proxy), for and in its name, place, and stead, in the Proxys discretion, to demand that the Secretary of the Company call a special meeting of the stockholders of the Company for the purpose of considering any matter referred to in Section 2.1 and to vote each Share held by Stockholder as Stockholders Proxy in respect of any such matter, at every annual, special, adjourned, or postponed meeting of the stockholders of the Company, including, without limitation, the right to sign its name as Stockholder (or to direct the record owner to sign its name as Stockholder) to any consent, certificate, or other document relating to the Company that the law of the State of Delaware might permit or require. THE FOREGOING PROXY AND POWER OF ATTORNEY ARE IRREVOCABLE AND COUPLED WITH AN INTEREST THROUGHOUT THE TERM. Stockholder will take such further action and execute such other documents as may be necessary to effectuate the intent of this Section 2.2.
Section 2.3 Restrictions of Transfer; Proxies and Non-Interference.
(a) Stockholder hereby agrees, until the termination of this Agreement pursuant to Section 3.1 not to (i) sell, transfer, pledge, encumber, assign or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, pledge, encumbrance, assignment or other disposition of, any of Stockholders Shares, (ii) grant any proxies, deposit any of Stockholders Shares into a voting trust or enter into a voting
4
agreement with respect to any of Stockholders Shares, or (iii) take any action that would make any representation or warranty of Stockholder contained herein untrue or incorrect in any material respect or have the effect of preventing, impairing, or disabling Stockholder from timely and promptly performing Stockholders obligations under this Agreement.
(b) Stockholder hereby agrees, if so requested by Parent, (i) that the Shares held by Stockholder shall bear a legend stating that they are subject to this Agreement and to an irrevocable proxy and (ii) that, subject to the terms of Section 2.3(a), such Stockholder shall not sell, transfer, pledge, encumber, assign or otherwise dispose of, or enter into any contract, option or other arrangement or understanding with respect to the sale, transfer, pledge, encumbrance, assignment or other disposition of, any of Stockholders Shares without first having the aforementioned legend affixed to the certificates representing such Shares.
Section 2.4 No Solicitation.
(a) During the Term, each Stockholder covenants and agrees not to, directly or indirectly, solicit, initiate, knowingly encourage, or take any other action designed to facilitate any inquiries or the making of any proposal from any Person (other than from Parent or Merger Sub) relating to any transaction that constitutes a Takeover Proposal.
(b) During the Term, each Stockholder further covenants and agrees not to participate in any discussions or negotiations (except with Parent or Merger Sub) regarding, or furnish to any Person (other than Parent or Merger Sub or if required by law or compelled by subpoena or similar legal process) any information with respect to, or otherwise cooperate in any way with, or assist or participate in or facilitate or encourage, any effort or attempt by any Person (other than Parent and Merger Sub) to make or effect, any transaction that may constitute a Takeover Proposal.
(c) Each Stockholder shall immediately cease and cause to be terminated any existing discussions or negotiations of Stockholder and Stockholders agents or other representatives with any Person (other than Parent and Merger Sub) with respect to any of the foregoing. During the Term, each Stockholder shall notify Parent and Merger Sub promptly of any specific proposal or offer made to such Stockholder relating to a Takeover Proposal, or any substantive inquiry or contact made to such Stockholder specifically relating to a Takeover Proposal, and shall, in any such notice to Parent and Merger Sub, indicate in reasonable detail the identity of the Person making such proposal, offer, inquiry, or contact and the material terms and conditions of such proposal, offer, inquiry, or contact.
(d) Notwithstanding the foregoing, any Stockholder who is also an officer and/or a member of the board of directors of the Company, may, in such Stockholders capacity as an officer of the Company and/or a member of the Board of Directors of the Company, as the case may be, take such actions, if any, in such capacity or capacities as are permitted by Section 5.2 (No Solicitation) of the Merger Agreement.
Section 2.5 Mutuality. Each Stockholder agrees that the terms of this Agreement shall apply to any interest, spousal or otherwise, of such Stockholder in the Shares described in this Agreement as being owned by the other Stockholder. The representations, warranties, and covenants of the Stockholders made in this Agreement are joint and several.
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ARTICLE III
MISCELLANEOUS
Section 3.1 Termination. This Agreement shall terminate and be of no further force and effect upon the earlier to occur of (i) such date and time as the Merger Agreement shall have been terminated pursuant to Article VII thereof, (ii) the Effective Time, or (iii) March 31, 2013. The termination of this Agreement shall not relieve any party hereto from any liability for any breach of this Agreement prior to termination.
Section 3.2 Voluntary Execution of Agreement. This Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the parties hereto. The parties acknowledge that: (i) they have read this Agreement; (ii) they have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel; (iii) they understand the terms and consequences of this Agreement; and (iv) they are fully aware of the legal and binding effect of this Agreement.
Section 3.3 Definitions. Terms used but not otherwise defined in this Agreement shall have the respective meanings ascribed to such terms in the Merger Agreement, as it may be amended from time to time.
Section 3.4 Expenses. All costs and expenses incurred in connection with the transactions contemplated by this Agreement shall be paid by the party incurring such costs and expenses.
Section 3.5 Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given (i) upon hand delivery, (ii) upon confirmation of receipt of facsimile transmission, or (iii) upon confirmed delivery by a standard overnight courier, to the following address or to such other address that a party hereto might later specify by like notice:
(a) | If to Parent or Merger Sub, to: |
Teledyne Technologies Incorporated
1049 Camino Dos Rio
Thousand Oaks, CA 91360
Attention: Melanie S. Cibik
Telecopier No.: (805) 373-4605
with a copy to:
McGuireWoods LLP
625 Liberty Avenue
23rd Floor, EQT Plaza
Pittsburgh, PA 15222
Attention: Scott E. Westwood
Telecopier No.: (412) 402-4191
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(b) | If to Stockholder, to the address for notice set forth on Exhibit A hereto. |
with a copy to:
Bingham McCutchen LLP
One Federal Street
Boston, MA 02110
Attention: Brian Keeler
Telecopier No.: 617-951-8736
Section 3.6 Severability. In the event that any provision in this Agreement is held invalid, illegal, or unenforceable in a jurisdiction, such provision shall be modified or deleted as to the jurisdiction involved but only to the extent necessary to render the same valid, legal, and enforceable. The validity, legality, and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby nor shall the validity, legality, or enforceability of such provision be affected thereby in any other jurisdiction.
Section 3.7 Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, both written and oral, among the parties hereto, or any of them, with respect thereto.
Section 3.8 Assignment. No party hereto may assign or delegate this Agreement or any right, interest, or obligation hereunder; provided, however, that Parent or Merger Sub, in its sole discretion, may assign or delegate its rights and obligations hereunder to any direct or indirect wholly owned subsidiary of Parent without obtaining the consent of any other party hereto; and provided, further, that any such assignment or delegation shall not relieve Parent or Merger Sub from liability hereunder.
Section 3.9 No Third-Party Beneficiaries. This Agreement shall be binding upon, inure solely to the benefit of, and be enforceable by only the parties hereto, their respective successors, and their permitted assigns, and nothing in this Agreement, express or implied, is intended to or shall confer upon any Person, other than the parties hereto, their respective successors, and permitted assigns, any rights, remedies, obligations, or liabilities of any nature whatsoever.
Section 3.10 Waiver of Appraisal Rights. Stockholder hereby waives any rights of appraisal or rights to dissent from the Merger.
Section 3.11 Further Assurance. Each Stockholder shall execute and deliver such additional documents and take all such further action as may be necessary or desirable to consummate and make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement.
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Section 3.12 Certain Events. Stockholder agrees that this Agreement and the obligations hereunder shall attach to Stockholders Shares and shall be binding upon any Person to which legal or beneficial ownership of such Shares shall pass, whether by operation of law or otherwise. Notwithstanding any transfer of Shares, the transferor shall remain liable for the performance of all obligations under this Agreement.
Section 3.13 No Waiver. The failure of any party hereto to exercise any right, power, or remedy provided under this Agreement or otherwise available at law or in equity, the failure of any party hereto to insist upon compliance by any other party hereto with its respective obligations hereunder, or the existence of any custom or practice of the parties hereto at variance with the terms hereof shall not constitute a waiver by such party of its right to exercise any such or other right, power, or remedy or to demand such compliance.
Section 3.14 Specific Performance. The parties hereto acknowledge that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, the parties hereto agree that an aggrieved party shall be entitled to injunctive relief to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof in any court having jurisdiction, this being in addition to any other right or remedy to which such party may be entitled under this Agreement at law, or in equity.
Section 3.15 Governing Law; Venue. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware without giving effect to provisions thereof relating to conflicts of law. Each of the parties hereto, hereby submits to the exclusive jurisdiction and venue of the state and federal courts located in the State of Delaware in the event any dispute or controversy arises out of this Agreement or the transactions contemplated hereby, or for recognition and enforcement of any judgment in respect thereof.
Section 3.16 WAIVER OF JURY TRIAL. THE PARTIES HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS OR THE ACTIONS OF PARENT, MERGER SUB OR STOCKHOLDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.
Section 3.17 Headings. The descriptive headings contained in this Agreement were included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.
Section 3.18 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile transmission of any signed original document and/or retransmission of any signed facsimile transmission will be deemed the same as delivery of an original. At the request of another party hereto, each party hereto will confirm facsimile transmission by signing a duplicate original document.
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Section 3.19 Press Releases. No press release or public announcement concerning the Merger Agreement, this Agreement or the transactions contemplated hereby shall be made by Stockholder or by Stockholders affiliates or representatives (other than the Company) without advance approval thereof by Parent.
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IN WITNESS WHEREOF, the parties hereto have each caused this Stockholder Agreement to be executed in a manner sufficient to bind them as of the date first written above.
TELEDYNE TECHNOLOGIES INCORPORATED | ||
By: |
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Name: |
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Title: |
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LUNA MERGER SUB, INC. | ||
By: |
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Name: |
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Title: |
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STOCKHOLDER
[See Schedule of Stockholders and Shares]
[SIGNATURE PAGE TO STOCKHOLDER AGREEMENT]
EXHIBIT A
[SCHEDULE OF STOCKHOLDERS AND SHARES]
Name of Beneficial and Record Owner |
Company Common Stock |
Stock Options | Restricted Stock | Stock Appreciation Rights |
||||||||||||
Walter O. LeCroy, Jr. |
258,803 | 0 | 0 | 0 | ||||||||||||
Thomas H. Reslewic |
185,339 | 0 | 3,305 | 1,413,500 | ||||||||||||
Robert E. Anderson |
93,518 | 28,767 | 0 | 0 | ||||||||||||
Sean B. OConnor |
79,833 | 7,500 | 1,771 | 411,500 | ||||||||||||
Allyn C. Woodward, Jr. |
81,261 | 21,000 | 0 | 0 | ||||||||||||
Norman R. Robertson |
66,361 | 22,000 | 0 | 0 | ||||||||||||
David C. Graef |
49,126 | 15,000 | 1,179 | 407,250 | ||||||||||||
William G. Scheerer |
30,577 | 69,668 | 0 | 0 | ||||||||||||
Robert Petrillo |
15,000 | 12,500 | 403,250 | |||||||||||||
Conrad J. Fernandes |
332 | 5,000 | 0 | 251,250 | ||||||||||||
TOTAL |
860,150 | 181,435 | 6,255 | 2,886,750 |