Initial Public Offering (IPO): Pre-Effective Amendment to Registration Statement (General Form) — Form S-1
Filing Table of Contents
Document/Exhibit Description Pages Size
1: S-1/A Amendment # 1 to Form S-1 233 1.44M
2: EX-1.1 Purchase Agreement Dated October 22, 1997 42 183K
3: EX-2.1 Share Transfer Agreement Dated April 15, 1996 12 51K
4: EX-2.2 Agreement for the Purchase of Film Assets 9 45K
5: EX-2.3 Agreement and Plan of Merger 40 198K
6: EX-2.4 Stock Purchase Agreement Dated as of June 11, 1997 20 90K
7: EX-2.5 Stock Purchase Agreement Dated as of June 11, 1997 17 80K
8: EX-2.6 Stock Purchase Agreement 17 80K
9: EX-2.7 Amended and Restated Agreement 16 68K
10: EX-3.1 Corrected and Restated Certificate 21 104K
11: EX-3.2 Amended and Restated Bylaws 22 95K
12: EX-4.1 Senior Notes Indenture 167 574K
13: EX-4.2 Senior Discount Notes Indenture 169 585K
14: EX-4.3 Senior Notes Registration Rights Agreement 37 135K
15: EX-4.4 Senior Discount Notes Registration Rights 38 142K
Agreement
16: EX-4.5 Senior Notes Liquidated Damages Agreement 5 28K
17: EX-4.6 Senior Discount Notes Liquidated Damages Agreement 5 28K
18: EX-10.1 Amended & Restated Strategic Stockholders 38 149K
Agreement
25: EX-10.12 Operating Agreement 34 146K
26: EX-10.14 Amendment No. 2 to Operating Agreement 10 45K
27: EX-10.17 Stock Ownership Agreement 11 46K
28: EX-10.18 Amendment No. 1 to Stock Ownership Agreement 5 26K
19: EX-10.2 Employment Assumption Agreement 2 22K
29: EX-10.20 Form of Fox Broadcasting Co. Station Affiliate 11 55K
Agreement
30: EX-10.21 Merchandising Rights Acquisition Agreement 12 55K
31: EX-10.22 Indemnification Agreement 6 30K
32: EX-10.23 Distribution Rights Acquisition Agreement 27 95K
33: EX-10.24 Administration Agreement 2 19K
34: EX-10.25 Registration Agreement 20 74K
35: EX-10.26 Amendment No. 1 to Registration Agreement 4 25K
36: EX-10.27 Contribution and Exchange Agreement 30 144K
37: EX-10.28 Guarantee Dated as of December 22, 1995 9 35K
38: EX-10.29 First Amendment to Lease 6 33K
20: EX-10.3 Employment Assumption Agreement 2 22K
39: EX-10.30 Guaranty of Lease 7 40K
40: EX-10.33 Funding Agreement 10 48K
41: EX-10.34 Guaranty Dated as of June 11, 1997 5 34K
42: EX-10.35 Distribution Agreement Dated August 21, 1992 20 68K
43: EX-10.36 Memorandum of Agreement 10 40K
44: EX-10.38 10960 Wilshire Boulevard Office Lease 93 410K
45: EX-10.39 Production Facility Agreement 14 57K
46: EX-10.40 Letter Agreement Dated as of January 1, 1995 3 26K
47: EX-10.41 Barter Syndication Agreement 2 19K
48: EX-10.42 Letter Agreement Dated as of September 26, 1996 22 84K
49: EX-10.43 First Amendment to the Contribution and Exchange 2 18K
Agreement
50: EX-10.44 Agreement Re Registration Rights 5 23K
51: EX-10.46 Agreement Re Transfer of LLC Interests 3 23K
52: EX-10.48 Subordinated Promissory Note 36 146K
21: EX-10.5 Form of Indemnification Agreement 10 54K
53: EX-10.54 Registration Rights Agreement 18 90K
22: EX-10.6 Employment Agreement 6 38K
23: EX-10.8 Employment Agreement 31 101K
24: EX-10.9 Employment Agreement 25 89K
54: EX-12.1 Ratio of Earnings to Fixed Charges 1 19K
55: EX-21.1 Subsidiaries of the Registrant 3 21K
56: EX-23.2 Consent of Independent Auditors 1 17K
57: EX-23.3 Consent of Independent Auditors 1 15K
58: EX-24.2 Power of Attorney 1 18K
59: EX-25.1 Statement of Eligibility - Bank of New York 10 46K
60: EX-27.1 Article 5 FDS 2 19K
EX-2.3 — Agreement and Plan of Merger
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EXHIBIT 2.3
AGREEMENT AND PLAN OF MERGER
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This AGREEMENT AND PLAN OF MERGER (the "Agreement"), dated as of June 11,
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1997, is by and among FOX KIDS WORLDWIDE, INC., a Delaware corporation ("FKWW"),
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FOX KIDS MERGER CORPORATION, a Delaware corporation and wholly-owned subsidiary
of FKWW ("FKW Sub"), and INTERNATIONAL FAMILY ENTERTAINMENT, INC., a Delaware
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corporation (the "Company").
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RECITALS
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WHEREAS, it is the intention of the parties that FKW Sub merge with and
into the Company, upon the terms and subject to the conditions set forth herein
(the "Merger"), with the Company surviving as a wholly owned subsidiary of FKWW;
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WHEREAS,
(a) M.G. "Pat" Robertson, individually and as trustee of each of the
Robertson Charitable Remainder Unitrust, u/t/a dated January 22, 1990
(the "PR Charitable Trust"), the Gordon P. Robertson Irrevocable
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Trust, u/t/a dated December 18, 1996, the Elizabeth F. Robinson
Irrevocable Trust, u/t/a dated December 18, 1996, and the Ann R.
Lablanc Irrevocable Trust, u/t/a dated December 18, 1996 (the Gordon
P. Robertson Irrevocable Trust, the Elizabeth F. Robinson Irrevocable
Trust and the Ann R. Lablanc Irrevocable Trust, together, the
"Irrevocable Trusts"), Lisa N. Robertson and Timothy B. Robertson
------------------
("Tim Robertson") as joint tenants, and Tim Robertson, individually,
---------------
as trustee of each of the Timothy and Lisa Robertson Children's Trust,
u/t/a dated September 18, 1995 (the "TR Family Trust") and the Timothy
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B. Robertson Charitable Trust, u/t/a dated December 30, 1996 (the "TR
--
Charitable Trust"), and as custodian to and for each of Abigail H.
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Robertson, Laura N. Robertson, Elizabeth C. Robertson, Willis H.
Robertson and Caroline S. Robertson under the Virginia Uniform
Transfers to Minors Act (Pat Robertson, the PR Charitable Trust, the
Irrevocable Trusts, Lisa N. Robertson, Tim Robertson, the TR Family
Trust and the TR Charitable Trust being sometimes collectively
referred to herein as the "Robertson Sellers"), have agreed to sell to
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FKWW, all of the outstanding shares of Class A Common Stock, par value
$0.01 per share, of the Company (the "Class A Stock"), in the form of
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Class B Common Stock, par value $0.01 per share, of the Company (the
"Class B Stock") issuable upon conversion thereof, and the shares of
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Class B Stock owned by them or issuable to them upon exercise of
outstanding stock options, pursuant to that certain Stock Purchase
Agreement, dated of even date herewith, by and among FKWW, on the one
hand, and each of the Robertson Sellers, on the other hand (as amended
from time to time in accordance with its terms, the "Robertson
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Purchase Agreement");
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(b) The Christian Broadcasting Network, Inc., a Virginia corporation
("CBN"), has agreed to sell to FKWW, all of the Class B Stock owned by
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it, pursuant to the terms of that certain Stock Purchase Agreement,
dated of even date herewith, by and between FKWW and CBN (as amended
from time to time in accordance with its terms, the "CBN Purchase
------------
Agreement");
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(c) Regent University, a Virginia corporation ("Regent"), has agreed to
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sell to FKWW all of the Class B Stock owned by it, pursuant to the
terms of that certain Stock Purchase Agreement, dated of even date
herewith, by and between FKWW and Regent (as amended from time to time
in accordance with its terms, the "Regent Purchase Agreement," and,
-------------------------
collectively with the Robertson Purchase Agreement and the CBN
Purchase Agreement, the "Stock Purchase Agreements");
-------------------------
(d) Liberty IFE, Inc., a Colorado corporation ("LIFE"), has agreed to
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contribute to FKWW all of the shares of Class C Common Stock, par
value $0.01 per share, of the Company (the "Class C Stock," and
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together with the Class A Stock and the Class B Stock, the "Company
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Stock"), and $23 million principal amount of 6% Convertible Secured
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Notes due 2004 of the Company (the "Convertible Notes"), in exchange
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for shares of Series A Preferred Stock, par value $0.01 per share, of
FKWW pursuant to that certain Contribution and Exchange Agreement,
dated of even date herewith, by and among LIFE, Liberty Media
Corporation, a Delaware corporation, and FKWW (as amended from time to
time in accordance with its terms, the "Contribution Agreement," and
----------------------
together with the Stock Purchase Agreements, the "Other Transaction
-----------------
Agreements"); and
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WHEREAS, the respective Boards of Directors of FKWW, FKW Sub and the
Company have each unanimously approved the Merger, in accordance with the
General Corporation Law of the State of Delaware (the "DGCL"), and the Board of
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Directors of the Company has recommended the Merger to the Company's
stockholders;
WHEREAS, this Agreement and the Merger shall be approved by the
stockholders of the Company for purposes of the DGCL at such time as the Company
is in receipt of written consents approving this Agreement and the Merger
executed by the holders of that number of shares of Class A Stock and Class B
Stock (voting as a single class) representing the right to cast a majority of
the votes entitled to be cast at a meeting to consider the Agreement and the
Merger;
2
WHEREAS, immediately following execution of this Agreement by the Company
and concurrently with the execution of this Agreement by FKWW and FKW Sub, the
Robertson Sellers, CBN and Regent (which holders hold of record a number of
shares of Class A Stock and Class B Stock representing a majority of the votes
entitled to be cast at a meeting to consider the Agreement and the Merger) are
delivering their written consent (the "Consent") approving this Agreement and
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the Merger (a copy of which is being provided to FKWW and FKW Sub), which
consent constitutes the only action necessary by stockholders of the Company
required in order to authorize this Agreement and the Merger under the Company's
Amended and Restated Certificate of Incorporation and the DGCL; and
WHEREAS, The News Corporation Limited ("Guarantor") has guaranteed the
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obligations of FKWW and FKW Sub under each of this Agreement and the Stock
Purchase Agreements by separate Guaranty Agreements (the Guaranty Agreement
delivered in connection with this Agreement, being referred to herein as the
"Guaranty") delivered to the Company, the Robertson Sellers, CBN and Regent.
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NOW, THEREFORE, in consideration of the premises and the respective
representations, warranties and covenants herein contained, and for other good
and valuable consideration the receipt and adequacy of which is hereby
acknowledged, FKWW, FKW Sub and the Company hereby agree as set forth below. An
index of defined terms used throughout this Agreement appears at Section 9.16
hereof.
ARTICLE I
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THE MERGER
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1.1 The Merger. Upon the terms and subject to the conditions of this
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Agreement, at the Effective Time (as defined in Section 1.3 hereof), in
accordance with this Agreement and the DGCL, FKW Sub shall be merged with and
into the Company, the separate existence of FKW Sub shall cease, and the Company
shall continue as the surviving corporation (the "Surviving Corporation"). The
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Company and FKW Sub are sometimes referred to herein as the "Constituent
-----------
Corporations."
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1.2 Effect of the Merger. 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 of the properties, rights,
privileges, powers and franchises of the Company and FKW Sub shall vest in the
Surviving Corporation, and all debts, liabilities and duties of the Company and
FKW Sub shall become the debts, liabilities and duties of the Surviving
Corporation.
1.3 Consummation of the Merger. On the later of (i) two business
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days after the satisfaction or waiver of the conditions set forth in Article VII
hereof or (ii) the 20th calendar day after the Information Statement is first
sent or given to the Company's stockholders, the parties hereto shall cause the
Merger to be consummated by filing with the Secretary of State of the State of
Delaware a certificate of merger in such form as required by, and executed in
accordance with, the relevant provisions of the DGCL and take all such further
actions as may
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be required by law to make the Merger effective (the "Merger Filing"). The
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Merger shall become effective at the time of day on the date that the
certificate of merger is filed with the Secretary of State of the State of
Delaware or such later time as may be mutually agreed to by the parties hereto
and specified in the Merger Filing (the "Effective Time").
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1.4 Certificate of Incorporation and Bylaws. The Amended and
---------------------------------------
Restated Certificate of Incorporation of the Company in effect immediately prior
to the Effective Time shall be the Certificate of Incorporation of the Surviving
Corporation. The By-Laws of FKW Sub in effect immediately prior to the
Effective Time shall be the By-Laws of the Surviving Corporation.
1.5 Directors and Officers. The directors of the Company immediately
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prior to the Effective Time shall be the initial directors of the Surviving
Corporation, and the officers of the Company immediately prior to the Effective
Time shall be the initial officers of the Surviving Corporation, in each case
until their successors are duly elected and qualified.
1.6 Conversion of Securities. At the Effective Time, by virtue of
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the Merger and without any action on the part of FKW Sub, the Company, the
Surviving Corporation or the holder of any outstanding share of the Class A
Stock, Class B Stock or Class C Stock (each, a "Share" and collectively, the
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"Shares"):
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(a) Each Share which is issued and outstanding immediately prior to
the Effective Time (other than Shares held by FKWW, FKW Sub or the Company or by
any Subsidiary of FKWW, FKW Sub or the Company) shall be canceled and
extinguished and be converted into and become a right to receive (i) in the case
of all such Shares other than Dissenting Shares, a cash payment equal to $35.00
per Share (subject to adjustment as provided for in Section 1.6(d) below),
without interest (the "Merger Consideration"), and (ii) in the case of
--------------------
Dissenting Shares, the consideration set forth in Section 1.7 hereof;
(b) Each Share which is issued and outstanding immediately prior to
the Effective Time and held by FKWW, FKW Sub, or the Company or by any
Subsidiary of FKWW, FKW Sub, or the Company shall be canceled and extinguished
and no consideration shall be paid therefor;
(c) Each share of capital stock of FKW Sub, par value $0.001 per
share, outstanding immediately prior to the Effective Time shall be converted
into and become one share of Class B Common Stock, par value $0.001 per share,
of the Surviving Corporation; and
(d) The Merger Consideration shall be increased to an amount which
equals (if greater than the Merger Consideration provided for herein) the per
share amount actually paid, directly or indirectly, by FKWW or any of its
Affiliates, with respect to the purchase of, or agreement to purchase, Company
Stock, or securities convertible into Company Stock, which purchase is effected
or agreement is entered into after the date hereof and through the Effective
Time (x) from (i) any of the Robertson Sellers, (ii) LIFE, (iii) CBN, (iv)
Regent, (v) any holder or "group" (within the meaning of Rule 13d-5(b)(1) under
the Exchange Act) that owns, or has the right to dispose of, or to direct the
disposition of, 2-1/2% or more of any class of common stock of the Company, (vi)
any of the Affiliates of the entities referred to in clauses
4
(i), (ii), (iii), (iv) or (v) above, or (y) in any transaction, or series of
related or unrelated transactions (excluding for purposes of this clause (y),
any transaction referred to in clauses (x)(i), (ii), (iii), (iv) and (vi)),
after the date hereof and through the Effective Time, involving, in the
aggregate, 5% or more of the outstanding shares of any class of common stock of
the Company. For these purposes, it is acknowledged and agreed that (x) the $3.5
million to be paid to LIFE under the Contribution Agreement with respect to
forfeited interest income on the Convertible Notes, and (y) amounts to be paid
with respect to any "tax gross up" with respect to the Exchange Rights under the
Contribution Agreement, shall not constitute an amount paid, directly or
indirectly, with respect to the purchase of Company Stock. Further, the Merger
Consideration shall not be adjusted as a result of the provisions of the
preceding sentence with respect to any purchase effected under any of the
Contribution Agreement, the Robertson Purchase Agreement, CBN Purchase Agreement
or the Regent Purchase Agreement unless the applicable agreement has been
amended after the date hereof so as to increase the consideration to be paid by
FKWW or any of its Affiliates, directly or indirectly, with respect to the
Company Stock or securities convertible into Company Stock. FKWW shall promptly
provide notice to the Company of any agreement or amendment to an existing
agreement entered into by FKWW or any of its Affiliates with a Robertson Seller,
CBN or Regent, or any amendment to an Other Transaction Agreement to which LIFE
or any of its Affiliates is a party, from and after the date hereof and through
the Effective Time.
1.7 Dissenting Shares.
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(a) Notwithstanding anything in this Agreement to the contrary, Shares
which are issued and outstanding immediately prior to the Effective Time and
which are held by stockholders who have not voted such Shares in favor of the
Merger or consented thereto in writing, who shall have delivered a written
demand for appraisal of such Shares in the manner provided in the DGCL and who,
as of the Effective Time, shall not have effectively withdrawn or lost such
right to appraisal ("Dissenting Shares") shall not be converted into or
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represent a right to receive the Merger Consideration pursuant to Section 1.6
hereof, but the holders thereof shall be entitled only to such rights as are
granted by Section 262 of the DGCL. Each holder of Dissenting Shares who
becomes entitled to payment for such Shares pursuant to Section 262 of the DGCL
shall receive payment therefor from the Surviving Corporation in accordance with
the DGCL; provided, however, that (i) if any such holder of Dissenting Shares
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shall have failed to establish his entitlement to appraisal rights as provided
in Section 262 of the DGCL, or (ii) if any such holder of Dissenting Shares
shall have effectively withdrawn his demand for appraisal of such Shares or lost
his right to appraisal and payment of his Shares under Section 262 of the DGCL,
or (iii) if neither any holder of Dissenting Shares nor the Surviving
Corporation shall have filed a petition demanding a determination of the value
of all Dissenting Shares within the time provided in Section 262 of the DGCL,
such holder or holders (as the case may be) shall forfeit the right to appraisal
of such Shares, and each such Share shall thereupon be deemed to have been
converted, as of the Effective Time, into and represent the right to receive
payment from the Surviving Corporation of the Merger Consideration, without
interest thereon, as provided in Section 1.6 hereof.
(b) Prior to the Effective Time, the Company shall give FKW Sub (i)
prompt notice of any written demands for appraisal, withdrawals of demands for
appraisal and any
5
petitions served pursuant to Section 262 of the DGCL received by the Company,
and (ii) the opportunity to direct all negotiations and proceedings with respect
to demands for appraisal under Section 262 of the DGCL. The Company shall not,
except with the prior written consent of FKW Sub, voluntarily make any payment
with respect to any demands for appraisal or offers to settle or settle any such
demands.
1.8 Stock Options and Other Plans.
-----------------------------
(a) Prior to the Effective Time, the Board of Directors of the Company
(or, if appropriate, any committee thereof) shall adopt appropriate resolutions
and use its reasonable good faith efforts to take all other actions necessary to
provide for the cancellation, effective at the Effective Time, subject to the
payment provided for in the next sentence being made, of all the outstanding
stock options, warrants or rights to purchase Shares heretofore granted
(collectively, the "Options") under any outstanding stock option plan or
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pursuant to any outstanding warrant agreement or any other outstanding plan,
program or arrangement of the Company providing for the issuance or grant of any
other interest in respect of the capital stock of the Company or any Subsidiary
of the Company (collectively, the "Stock Plans") such that, immediately prior to
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the Effective Time, (i) each Option, whether or not then vested or exercisable,
shall no longer be exercisable for the purchase of Shares, but shall entitle
each holder thereof, in cancellation and settlement therefor, to payments in
cash (subject to any applicable withholding taxes, the "Cash Payment"), at the
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Effective Time, equal to the product of (x) the total number of Shares subject
to such Option, whether or not then vested or exercisable, and (y) the excess of
the Merger Consideration over the exercise price per Share subject to such
Option, each such Cash Payment to be paid to each holder of an outstanding
Option at the Effective Time; provided, however, that with respect to any Person
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subject to Section 16 of the Securities Exchange Act of 1934, as amended, and
the rules and regulations thereunder (the "Exchange Act"), any such amount shall
------------
be paid, without interest, as soon as practicable after the first date payment
can be made without liability to such Person under Section 16(b) of the Exchange
Act, and (ii) each Share previously issued in the form of grants of restricted
stock or grants of contingent shares shall fully vest in accordance with their
respective terms. Any then outstanding stock appreciation rights or limited
stock appreciation rights shall be canceled immediately prior to the Effective
Time without any payment therefor. The Company will use its reasonable good
faith efforts to ensure that, at the Effective Time, neither the Company nor any
of its Subsidiaries is or will be bound by any Options or Stock Plans which
would entitle any Person to acquire or hold any capital stock of the Surviving
Corporation or any of its Subsidiaries or to receive any payment in respect
thereof other than as set forth in this Agreement or the MTM Stock Plan,
providing for the issuance to employees of MTM Entertainment, Inc., a Delaware
corporation ("MTM"), a wholly owned Subsidiary of the Company, of shares of
---
common stock of MTM, all as, and other than as, disclosed in the Company
Disclosure Letter, including using its reasonable good faith efforts to obtain
all necessary consents and releases to ensure that after the Effective Time, the
only rights of the holders of Options will be to receive the Cash Payment in
cancellation and settlement thereof. Notwithstanding any other provision of
this Section 1.8 to the contrary, the Cash Payment may be withheld with respect
to any Option until necessary consents and releases are obtained.
6
(b) All provisions in any Stock Plan providing for the future issuance
or grant of any capital stock of the Company or any interest in respect of any
capital stock of the Company shall terminate or be amended as of the Effective
Time to provide no continuing rights to acquire or be issued or granted any
capital stock or any interest in any capital stock (including, but not limited
to Options) of the Company or the Surviving Corporation (other than in respect
of capital stock or interests in capital stock (including, but not limited to,
Options) granted prior to the Effective Time, which are governed by the
provisions of Section 1.8(a) above).
1.9 Exchange of Certificates.
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(a) From and after the Effective Time, a bank or trust company to be
designated by FKW Sub and reasonably acceptable to the Company (the "Exchange
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Agent") shall act as exchange agent in effecting the exchange of the Merger
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Consideration for certificates representing Shares entitled to payment pursuant
to Section 1.6 (the "Certificates"). At or prior to the Effective Time, FKW Sub
------------
shall deposit with the Exchange Agent the amount necessary to enable the
Exchange Agent to exchange the Merger Consideration for Certificates received by
the Exchange Agent.
(b) Promptly after the Effective Time, the Exchange Agent shall mail
to each record holder of Certificates a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the
Certificates shall pass, only upon proper delivery of the Certificates to the
Exchange Agent) and instructions for use in surrendering Certificates and
receiving the Merger Consideration therefor. Upon the surrender of each
Certificate, together with such letter of transmittal duly executed and
completed in accordance with the instructions thereto, the holder of such
Certificate shall be entitled to receive in exchange therefor an amount equal to
the Merger Consideration multiplied by the number of Shares represented by such
Certificate, and such Certificate shall be canceled. Until so surrendered and
exchanged, each such Certificate shall represent solely the right to receive an
amount equal to the Merger Consideration multiplied by the number of Shares
represented by such Certificate. No interest shall be paid or accrue on the
Merger Consideration payable upon the surrender of the Certificates. If any
Merger Consideration is to be paid to a Person other than the Person in whose
name the Certificate surrendered in exchange therefor is registered, such
Certificate shall be accompanied by all documents required to evidence and
effect such transfer, and it shall be a condition to such exchange that the
Person requesting such exchange shall pay to the Exchange Agent any transfer or
other taxes required by reason of the payment of such Merger Consideration to a
Person other than the registered holder of the Certificate surrendered, or such
Person shall establish to the satisfaction of the Exchange Agent that such tax
has been paid or is not applicable. Notwithstanding the foregoing, neither the
Exchange Agent nor any party hereto shall be liable to a holder of Shares for
any Merger Consideration delivered to a public official pursuant to applicable
abandoned property, escheat and similar laws.
(c) Promptly following the date which is 180 days after the Effective
Time, the Exchange Agent's duties shall terminate, and any funds deposited with
the Exchange Agent that remain unclaimed by holders of Certificates shall be
paid to the Surviving Corporation upon demand. Thereafter, each holder of a
Certificate may surrender such Certificate to the Surviving Corporation along
with the applicable letter of transmittal and (subject to applicable
7
abandoned property, escheat and similar laws) receive in exchange therefor an
amount equal to the Merger Consideration multiplied by the number of Shares
represented by such Certificate, without any interest thereon, but shall have no
greater rights against the Surviving Corporation than may be accorded to general
creditors of the Surviving Corporation.
(d) After the Effective Time, there shall be no transfers on the stock
transfer books of the Surviving Corporation of any Shares. If, after the
Effective Time, Certificates are presented to the Surviving Corporation or the
Exchange Agent, they shall be canceled and exchanged for the applicable Merger
Consideration, as provided in this Article I, subject to applicable law in the
case of Dissenting Shares.
1.10 Taking of Necessary Action; Further Action. If, at any time
------------------------------------------
after the Effective Time, any reasonable and lawful further action is necessary
or desirable to carry out the purposes of this Agreement and to vest the
Surviving Corporation with full right, title and possession to all assets,
property, rights, privileges, powers and franchises of either of the Constituent
Corporations, the officers and directors of such corporations are fully
authorized in the name of their corporation or otherwise to take, and shall
take, all such lawful and necessary action.
ARTICLE II
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REPRESENTATIONS AND WARRANTIES OF FKWW
--------------------------------------
As an inducement to the Company to enter into this Agreement, FKWW
hereby makes the following representations and warranties:
2.1 Organization, Etc. of FKWW. FKWW is a corporation duly
--------------------------
organized, validly existing and in good standing under the laws of the State of
Delaware and has all requisite corporate power and authority to own and operate
its properties and assets and to carry on its business as now conducted. FKWW is
duly qualified and in good standing in each jurisdiction in which the property
owned, leased or operated by it or the nature of the businesses conducted by it
makes such qualification necessary and where the failure to be so qualified
would be reasonably expected to have a material adverse effect on the business,
results of operations or financial condition of FKWW and its Subsidiaries taken
as a whole. FKWW has obtained from appropriate governmental regulatory
authorities, domestic or foreign (each a "Governmental Entity") all approvals,
-------------------
permits and licenses necessary for the conduct of its business and operations as
currently conducted, which approvals, permits and licenses are valid and in
full force and effect, except where the failure to have obtained such approvals,
permits or licenses or the failure of such approvals, permits or licenses to be
valid and in full force and effect would not be reasonably expected to have a
material adverse effect on the business, results of operations or financial
condition of FKWW and its Subsidiaries taken as a whole. Other than FKW Sub,
FKWW has no Subsidiaries. As used in this Agreement, "Subsidiary" of a
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specified Person means (i) any corporation of which equity securities possessing
a majority of the ordinary voting power in electing the board of directors are,
at the time as of which such determination is being made, owned or controlled by
such specified Person either directly or indirectly or in combination with one
or more Subsidiaries of such specified Person, or (ii) any Person (other than a
corporation)
8
in which such specified Person either directly or indirectly through or in
combination with one or more Subsidiaries, at the time as of which such
determination is being made, (x) is a general partner, or (y) owns or controls
more than a 50% ownership interest and has the right to elect a majority of the
members of the governing authority of such specified Person.
2.2 Organization, Etc. of the Guarantor. The Guarantor is a
-----------------------------------
corporation organized and existing under the laws of South Australia, Australia,
with adequate corporate power and authority to own its properties and carry on
its business as presently conducted. The Guarantor has the corporate power and
authority to enter into, execute and deliver the Guaranty and to guarantee the
obligations of FKWW hereunder pursuant to such Guaranty.
2.3 Authorization. This Agreement and the consummation of the
-------------
transactions contemplated hereby have been unanimously approved by the Board of
Directors of FKWW and have been duly authorized by all other necessary corporate
action on the part of FKWW. This Agreement has been duly executed and delivered
by a duly authorized officer of FKWW and (assuming the same to be valid and
binding obligations of the other parties hereto) constitutes the valid and
binding agreement of FKWW, enforceable against FKWW in accordance with its
terms, except as may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws of general application which
may affect the enforcement of creditors' rights generally and by general
equitable principles. FKWW has delivered to the Company true and correct copies
of resolutions adopted by the Board of Directors of FKWW approving this
Agreement.
2.4 Execution, Delivery and Performance by the Guarantor. The
----------------------------------------------------
execution, delivery and performance of the Guaranty and the consummation of the
transactions contemplated thereby have been duly authorized by the Board of
Directors of the Guarantor, and the Guarantor has taken all other actions
required by law and its organizational documents in order to consummate the
transactions contemplated by the Guaranty. The Guaranty constitutes the valid
and binding obligations of the Guarantor and is enforceable in accordance with
its terms, except as enforceability may be subject to or limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting creditors' rights generally.
2.5 No Consents. The execution and delivery of this Agreement by
-----------
FKWW or by the Guarantor of the Guaranty, do not, and the performance of FKWW's
obligations under this Agreement and the Guarantor of its obligations under the
Guaranty, and the consummation of the transactions contemplated hereby or
thereby by FKWW and the Guarantor, respectively, will not require any consent,
approval, authorization or permit of, or filing with or notification to any
Governmental Entity, except (i) for (A) applicable requirements of the Exchange
Act, the Securities Act of 1933, as amended and the rules and regulations
thereunder (the "Securities Act"), and state securities or "blue sky" laws or
--------------
state anti-takeover laws ("Blue Sky Laws"), (B) the pre-merger notification
-------------
requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended and the rules and regulations thereunder (the "HSR Act"), and (C) the
-------
Merger Filing, and (ii) where the failure to obtain such consents, approvals,
authorizations or permits, or to make such filings or notifications, (x) would
not, individually or in the aggregate, reasonably be expected to prevent
consummation of the Merger, or otherwise prevent FKWW or the Guarantor from
performing their respective obligations under this Agreement or the Guaranty in
9
any material respect, and (y) would not, individually or in the aggregate,
reasonably be expected to have a material adverse effect on the business,
results of operations or financial condition of FKWW and its Subsidiaries taken
as a whole.
2.6 Brokers and Finders. FKWW has not employed any investment
-------------------
banker, broker, finder, consultant or intermediary in connection with the
transactions contemplated by this Agreement which would be entitled to any
investment banking, brokerage, finder's or similar fee or commission payable
after the date hereof in connection with this Agreement or the Merger.
2.7 Compliance with Other Instruments, Etc. As of the date hereof,
---------------------------------------
FKWW is not in violation of any term of (a) its charter, by-laws or other
organizational documents, (b) any material agreement or instrument including any
such related to Indebtedness, (c) any applicable law, ordinance, rule or
regulation of any Governmental Entity, or (d) any applicable order, judgement or
decree of any court, arbitrator or Governmental Entity, the consequences of
which violation, whether individually or in the aggregate, would be reasonably
expected to have a material adverse effect on (i) the business, results of
operations or financial condition of FKWW or (ii) the ability of FKWW to perform
its obligations under this Agreement. The execution, delivery and performance
of this Agreement by FKWW will not result in any violation of or conflict with,
constitute a default under, or require any consent under any term of the
charter, bylaws or other organizational document of FKWW or any such agreement,
instrument, law, ordinance, rule, regulation, order, judgement or decree or
result in the creation of (or impose any obligation on FKWW to create) any Lien
upon any of the properties or assets of FKWW pursuant to any such term, except
where such violation, conflict or default, or the failure to obtain such
consent, individually or in the aggregate, would not be reasonably expected to
have a material adverse effect on (i) the business, results of operations or
financial condition of FKWW and its Subsidiaries taken as a whole or (ii) the
ability of FKWW to perform its obligations under this Agreement. For purposes
of this Agreement, "Lien" means any mortgage. pledge, lien, security interest or
----
other encumbrance of any kind or nature.
2.8 Litigation. As of the date hereof, there are no actions, suits,
----------
investigations or proceedings (adjudicatory or rulemaking) pending or, to the
knowledge of FKWW, threatened against FKWW or any of its respective properties
in any court or before any arbitrator of any kind or before or by any
Governmental Entity, except actions, suits, investigations or proceedings which,
in the aggregate, would not be reasonably expected to have a material adverse
effect on the ability of FKWW to perform its obligations under this Agreement.
2.9 Information True and Correct. None of the information supplied
----------------------------
or to be supplied by FKWW for inclusion in the Information Statement will, at
the date the definitive Information Statement is first sent or given to the
stockholders of the Company, 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 are made, not misleading. No representation is made by FKWW with respect
to any information supplied by the Company or any of its Affiliates for
inclusion in the Information Statement.
10
2.10 Transaction Agreements. This Agreement, the Other Transaction
----------------------
Agreements and the other agreements listed in the recitals above, are the only
agreements existing as of the date hereof between FKWW, on the one hand, and the
respective counterparties to such agreements and any Affiliates of such parties,
on the other hand, with respect to the acquisition of Class A Stock, Class B
Stock, Class C Stock or Convertible Notes.
ARTICLE III
-----------
REPRESENTATIONS AND WARRANTIES OF FKW SUB
-----------------------------------------
As an inducement to the Company to enter into this Agreement, FKW Sub
hereby makes the following representations and warranties:
3.1 Organization, Etc. FKW Sub is a corporation duly organized,
-----------------
validly existing and in good standing under the laws of the State of Delaware
and has all requisite corporate power and authority to own and operate its
properties and assets and to carry on its business as now conducted. FKW Sub is
duly qualified and in good standing in each jurisdiction in which the property
owned, leased or operated by it or the nature of the businesses conducted by it
makes such qualification necessary and where the failure to be so qualified
would be reasonably expected to have a material adverse effect on the business,
results of operations or financial condition of FKW Sub and its Subsidiaries
taken as a whole. FKW Sub has obtained from the appropriate Government Entities
all approvals, permits and licenses necessary for the conduct of its business
and operations as currently conducted, which approvals, permits and licenses
are valid and in full force and effect, except where the failure to have
obtained such approvals, permits or licenses or the failure of such approvals,
permits or licenses to be valid and in full force and effect would not be
reasonably expected to have a material adverse effect on the business, results
of operations or financial condition of FKW Sub and its Subsidiaries taken as a
whole. At the date of this Agreement, FKW Sub has no Subsidiaries.
3.2 Authorization. This Agreement and the consummation of the
-------------
transactions contemplated hereby have been unanimously approved by the Board of
Directors of FKW Sub and have been duly authorized by all other necessary
corporate action on the part of FKW Sub. This Agreement has been duly executed
and delivered by a duly authorized officer of FKW Sub and (assuming the same to
be valid and binding obligations of the other parties hereto) constitutes the
valid and binding agreement of FKW Sub, enforceable against FKW Sub in
accordance with its terms, except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other similar laws of general
application which may affect the enforcement of creditors' rights generally and
by general equitable principles.
3.3 No Consents. The execution and delivery of this Agreement by FKW
-----------
Sub do not, and the performance of its obligations under this Agreement and the
consummation of the transactions contemplated hereby by FKW Sub will not,
require any consent, approval, authorization or permit of, or filing with or
notification to any Governmental Entity, except (i) for (A) applicable
requirements of the Exchange Act, the Securities Act, and the Blue Sky Laws, (B)
the pre-merger notification requirements of the HSR Act, and (C) the Merger
Filing, and (ii) where the failure to obtain such consents, approvals,
authorizations or permits, or to make such
11
filings or notifications, (x) would
not, individually or in the aggregate, be reasonably expected to prevent
consummation of the Merger, or otherwise prevent FKW Sub from performing its
obligations under this Agreement in any material respect, and (y) would not,
individually or in the aggregate, be reasonably expected to have a material
adverse effect on the business, results of operations or financial condition of
FKWW and its Subsidiaries taken as a whole.
3.4 Brokers and Finders. FKW Sub has not employed any investment
-------------------
banker, broker, finder, consultant or intermediary in connection with the
transactions contemplated by this Agreement which would be entitled to any
investment banking, brokerage, finder's or similar fee or commission payable
after the date hereof in connection with the Merger.
3.5 Compliance with Other Instruments, Etc. As of the date hereof,
---------------------------------------
FKW Sub is not in violation of any term of (a) its charter, by-laws or other
organizational documents, (b) any material agreement or instrument including any
such related to Indebtedness, (c) any applicable law, ordinance, rule or
regulation of any Governmental Entity, or (d) any applicable order, judgement or
decree of any court, arbitrator or Governmental Entity, the consequences of
which violation, whether individually or in the aggregate, would be reasonably
expected to have a material adverse effect on (i) the business, results of
operations or financial condition of FKWW and its Subsidiaries taken as a whole,
or (ii) the ability of FKW Sub to perform its obligations under this Agreement.
The execution, delivery and performance of this Agreement by FKW Sub will not
result in any violation of or conflict with, constitute a default under, or
require any consent under any term of the charter, bylaws or other
organizational document of FKW Sub or any such agreement, instrument, law,
ordinance, rule, regulation, order, judgement or decree or result in the
creation of (or impose any obligation on FKW Sub to create) any Lien upon any of
the properties or assets of FKW Sub pursuant to any such term, except where such
violation, conflict or default, or the failure to obtain such consent,
individually or in the aggregate, would not be reasonably expected to have a
material adverse effect on (i) the business, results of operations or financial
condition of FKWW and its Subsidiaries taken as a whole, or (ii) the ability of
FKW Sub to perform its obligations under this Agreement.
3.6 Litigation. As of the date hereof, there are no actions, suits,
----------
investigations or proceedings (adjudicatory or rulemaking) pending or, to the
knowledge of FKW Sub, threatened against FKW Sub or any of its respective
properties in any court or before any arbitrator of any kind or before or by any
Governmental Entity, except actions, suits, investigations or proceedings which,
in the aggregate, would not be reasonably expected to have a material adverse
effect on the ability of FKW Sub to perform its obligations under this
Agreement.
3.7 Information True and Correct. None of the information supplied or
----------------------------
to be supplied by FKW Sub for inclusion in the Information Statement will, at
the date the definitive Information Statement is first sent or given to the
stockholders of the Company, 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 are made, not misleading. No representation is made by FKW Sub with
respect to any information supplied by the Company or any of its Affiliates for
inclusion in the Information Statement.
12
3.8 Fraudulent Transfer Laws. Assuming the Company is not Insolvent
------------------------
immediately prior to the Effective Time, and further assuming the
representations and warranties of the Company contained in this Agreement are
true and accurate in all material respects immediately prior to the Effective
Time, the Surviving Corporation will not be Insolvent immediately after the
Effective Time (taking into account changes in assets and liabilities of the
Surviving Corporation as a result of the Merger). For purposes hereof, an
entity will be deemed to be Insolvent if (i) such entity's financial condition
is such that either the sum of its debts is greater than the fair value of its
assets or the fair saleable value of its assets is less than the amount required
to pay its probable liability on existing debts as they mature, (ii) such entity
has unreasonably small capital with which to engage in its business or (iii)
such entity has incurred liabilities beyond its ability to pay as they become
due.
ARTICLE IV
----------
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
---------------------------------------------
As an inducement to FKWW and FKW Sub to enter into this Agreement, the
Company hereby makes the following representations and warranties. Whether or
not specifically referred to therein, such representations and warranties
contain exceptions set forth in a written disclosure letter (the "Company
-------
Disclosure Letter") delivered to FKWW and FKW Sub concurrently with the
-----------------
execution hereof, which is numbered to correspond to the various sections of
this Agreement and which also sets forth certain other information called for by
this Agreement.
4.1 Organization, Etc., of the Company. The Company is a corporation
----------------------------------
duly organized, validly existing and in good standing under the laws of the
State of Delaware and has all requisite corporate power and authority to own and
operate its properties and assets and to carry on its business as now conducted.
The Company is duly qualified and in good standing in each jurisdiction in which
the property owned, leased or operated by it or the nature of the businesses
conducted by it makes such qualification necessary and where the failure to be
so qualified would be reasonably expected to have a material adverse effect on
the business, results of operations or financial condition of the Company and
its Subsidiaries taken as a whole. As of the date hereof, the Company has
obtained from the appropriate Government Entities all approvals, permits and
licenses necessary for the conduct of its business and operations as currently
conducted, which approvals, permits and licenses are, as of the date hereof,
valid and in full force and effect, except where the failure to have obtained
such approvals, permits or licenses or the failure of such approvals, permits or
licenses to be valid and in full force and effect would not be reasonably
expected to have a material adverse effect on the business, results of
operations or financial condition of the Company and its Subsidiaries taken as a
whole.
4.2 Operations of Subsidiaries. Each Subsidiary of the Company (a)
--------------------------
is a corporation or other legal entity duly organized, validly existing and (if
applicable) in good standing under the laws of the jurisdiction of its
organization and has the requisite corporate or other organizational power and
authority to own its properties and assets and conduct its business and
operations as currently conducted, except where the failure to be duly
organized, validly existing and in good standing would not be reasonably
expected to have a material adverse effect
13
on the business, results of operations or financial condition of the Company and
its Subsidiaries taken as a whole, (b) is duly qualified and in good standing in
each jurisdiction in which the property owned, leased or operated by it or the
nature of the business conducted by it makes such qualification necessary,
except where the failure to be so qualified or in good standing would not
reasonably be expected to have a material adverse effect on the business,
results of operations or financial condition of the Company and its Subsidiaries
taken as a whole, and (c) has, as of the date hereof, obtained from the
appropriate Government Entities all approvals, permits and licenses necessary
for the conduct of its business and operations, as currently conducted, which
approvals, permits and licenses are, as of the date hereof, valid and remain in
full force and effect, except where the failure to have obtained such approvals,
permits and licenses or the failure of such approvals, permits or licenses to be
valid and in full force and effect would not be reasonably expected to have a
material adverse effect on the business, results of operations or financial
condition of the Company and its Subsidiaries taken as a whole. The Company
Disclosure Letter sets forth a true and correct list of each Subsidiary of the
Company as of the date hereof. All of the outstanding capital stock of each such
Subsidiary is owned entirely by the Company or by a Subsidiary of the Company,
as the case may be, as of the date hereof, free and clear of all Liens and
Restrictions, except for such restrictions on transfer as are imposed by state
and federal securities laws and except for Liens and Restriction as will not
reasonably be expected to have a material adverse effect on the business,
results of operations or financial condition of the Company and its Subsidiaries
taken as a whole. For purposes of this Agreement, "Restriction," means, when
-----------
used with respect to any specified security, any shareholders or other trust
agreement, option, warrant, escrow, proxy, buy-sell agreement, power of attorney
or other contract, agreement or arrangement which (i) grants to any Person the
right to purchase or otherwise acquire, or obligates any Person to sell or
otherwise dispose of, such specified security or any interest therein, or (ii)
restricts the transfer of, or the exercise of any rights or the enjoyment of any
benefits arising by reason of, the ownership of such specified security. All
such shares of capital stock have been duly authorized and validly issued and
are fully paid and nonassessable. There are no agreements, understandings or
undertakings governing the rights and duties of the Company or any Subsidiary of
the Company as a stockholder of any Subsidiary (other than a Subsidiary wholly
owned by the Company or by a direct or indirect wholly owned Subsidiary of the
Company) under which the Company or any Subsidiary is or may become obligated,
directly or indirectly, to acquire or dispose of any equity interest in, make
any capital contribution or extend credit to, or act as guarantor, surety or
indemnitor for any liability of any Subsidiary (other than a Subsidiary wholly
owned by the Company or by a direct or indirect wholly owned Subsidiary of the
Company). Other than Subsidiaries of the Company, the Company has no interest in
any corporation, joint venture, limited liability company, limited liability
partnership, or other business enterprise of any nature, other than investments
in marketable securities acquired in the ordinary course of business.
4.3 Authorization. This Agreement and the consummation of the
-------------
transactions contemplated hereby have been approved by the Board of Directors of
the Company and upon execution of the Consent, this Agreement and the Merger
shall have been duly authorized by all other necessary corporate action on the
part of the Company, including any required stockholder action. This Agreement,
upon execution and delivery thereof, will be duly executed and delivered by a
duly authorized officer of the Company and (assuming the same to be valid and
binding obligations of the other parties hereto) this Agreement constitutes the
valid and binding agreement
14
of the Company, enforceable against the Company in accordance with its terms,
except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium and other similar laws of general application which may affect the
enforcement of creditors' rights generally and by general equitable principles.
The Company has delivered to FKWW and FKW Sub true and correct copies of
resolutions adopted by the Board of Directors.
4.4 Fairness Opinion; Approval by Board of Directors. On or prior to
------------------------------------------------
the date hereof, the Board of Directors of the Company (i) approved the terms of
this Agreement and the Merger, (ii) determined that the Merger is fair to and in
the best interests of the holders of the Shares (other than FKWW, FKW Sub, the
Company, and their respective Affiliates), and (iii) has recommended this
Agreement and the Merger to the Company's stockholders. The Board of Directors
of the Company has received an oral opinion, as of the date hereof, of (x) Bear,
Stearns & Co. Inc. to the effect that the consideration to be received by the
holders of the Shares (other than FKWW, FKW Sub, the Company, and their
respective Affiliates) pursuant to this Agreement is fair to such holders from a
financial point of view, and (y) Goldman Sachs & Co. to the effect that the
consideration to be received by the holders of the Shares (other than FKWW, FKW
Sub, the Company and their respective Affiliates) pursuant to this Agreement is
fair to such holders. At the date hereof, such opinions (which, when confirmed
in writing, will be provided to FKWW and FKW Sub) have not been withdrawn,
revoked or modified. It is agreed and understood that such opinions are for the
use of the Board of Directors of the Company in considering this Agreement and
the Merger and may not be relied upon by FKWW or FKW Sub. Based on such
opinions, and such other factors as it deemed relevant, the Board of Directors
of the Company has taken all of the actions set forth in clauses (i) and (ii)
above and has directed that this Agreement be submitted to the stockholders of
the Company for their approval.
4.5 Capital Stock.
-------------
(a) The authorized capital stock of the Company consists of (i)
10,000,000 shares of Class A Stock, of which 5,000,000 shares are outstanding as
of the date hereof, (ii) 100,000,000 shares of Class B Stock, of which
32,781,795 shares are outstanding as of the date hereof, (iii) 20,000,000 shares
of Class C Stock, of which 7,088,732 shares are outstanding as of the date
hereof, and (iv) 400,000 shares of 10% Convertible Cumulative Preferred Stock,
par value $0.001 per share, of which none are issued and outstanding as of the
date hereof. All outstanding Shares are duly authorized, validly issued, fully
paid and nonassessable.
(b) As of the date hereof, there are (i) no options, warrants, calls,
subscriptions, convertible securities or other rights (including preemptive
rights), agreements, understandings, arrangements or commitments of any
character obligating the Company now or at any time in the future to issue or
sell any of its capital stock or other equity interests in the Company or any of
its Subsidiaries, (ii) there are no obligations, contingent or otherwise, of the
Company or any of its Subsidiaries, to repurchase, redeem or otherwise acquire
any shares of capital stock or other equity interests of the Company or any of
its Subsidiaries, (iii) there are no outstanding bonds, debentures, notes or
other obligations of the Company or any of its Subsidiaries, the holders of
which have the right to vote (or which are convertible into or exercisable for
securities having the right to vote) with the holders of the Class A Stock and
the
15
Class B Stock on any matter, (iv) there are no obligations, contingent or
otherwise, guaranteeing the value of any of the Shares or the capital stock of
any of its Subsidiaries either now or at any time in the future, and (v) there
are no voting trusts, proxies or other agreements or understandings to which the
Company is a party or is bound with respect to the voting of any capital stock
or other equity interests of the Company or any of its Subsidiaries. None of
the Shares or any other equity interest of the Company or any other securities
convertible into or exchangeable for Shares or any other equity interests of the
Company, or options to acquire Shares or securities convertible into Shares or
equity interests of the Company are held by any of the Company's Subsidiaries.
4.6 Consents. The execution and delivery of this Agreement by the
--------
Company do not, and the performance of its obligations under this Agreement and
the consummation of the Merger by the Company will not, require any consent,
approval, authorization or permit of, or filing with or notification to any
Governmental Entity, except (i) for (A) applicable requirements of the Exchange
Act, the Securities Act, and the Blue Sky Laws, (B) the pre-merger notification
requirements of the HSR Act, and (C) the Merger Filing, and (ii) where the
failure to obtain such consents, approvals, authorizations or permits, or to
make such filings or notifications, (x) would not, individually or in the
aggregate, be reasonably expected to prevent the consummation of the Merger, or
otherwise prevent the Company from performing its obligations under this
Agreement in any material respect, and (y) with respect to any such requirement
in effect on the date hereof, would not, individually or in the aggregate, be
reasonably expected to have a material adverse effect on the business, results
of operations or financial condition of the Company and its Subsidiaries taken
as a whole.
4.7 SEC Reports and Financial Statements. Since January 1, 1994 up
------------------------------------
to and including the date hereof, the Company has filed with the SEC all forms,
reports, schedules, registration statements, proxy statements and other
documents (collectively, "Company SEC Reports") required to be filed by the
-------------------
Company with the Securities and Exchange Commission (the "SEC") under the
---
Securities Act, Exchange Act, and the rules and regulations thereunder. As of
their respective dates, or in the case of registration statements, as of their
respective effective dates, all of the Company SEC Reports, including all
exhibits and schedules thereto and all documents incorporated by reference
therein, (i) complied as to form in all material respects with the applicable
requirements of the Securities Act and the Exchange Act applicable thereto, and
(ii) did 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 the light of the circumstances under which they were made, not
misleading, except for such statements, if any, as have been modified or
superseded by subsequent filings prior to the date hereof. The consolidated
financial statements of the Company and its Subsidiaries included in such
reports complied as of the respective dates thereof as to form in all material
respects with applicable accounting requirements and with the published rules
and regulations of the SEC with respect thereto, were prepared in accordance
with United States generally accepted accounting principles ("GAAP") as in
----
effect on their respective dates applied on a consistent basis throughout the
periods involved (except as may be indicated in the notes thereto or, in the
case of the unaudited interim financial statements, as permitted by Form 10-Q of
the SEC) and fairly presented (subject, in the case of the unaudited interim
financial statements, to normal, year-end audit adjustments) the consolidated
financial position of the Company and its Subsidiaries as at the dates thereof
and the consolidated results
16
of their operations and cash flows for the periods then ended. Since December
31, 1996, and up to and including the date hereof, neither the Company nor any
of its Subsidiaries has incurred any liabilities or obligations (whether
absolute, accrued, fixed, contingent, liquidated, unliquidated or otherwise and
whether due or to become due) of any nature, which would be required by GAAP, as
of the date hereof, to be set forth on a consolidated balance sheet of the
Company and its Subsidiaries or in the notes thereto except liabilities,
obligations or contingencies (a) which are disclosed, reflected or reserved for
on the unaudited balance sheets of the Company and its Subsidiaries as of March
31, 1997 (including the notes thereto) or in this Agreement or the Company
Disclosure Letter or (b) which (i) were incurred in the ordinary course of
business after December 31, 1996, and consistent with past practices, or (ii)
are disclosed or reflected or reserved for in the Company SEC Reports filed
after December 31, 1996, or (iii) would not reasonably be expected to,
individually or in the aggregate, have a material adverse effect on the
business, results of operations or financial condition of the Company and its
Subsidiaries taken as a whole, or (c) which were incurred as a result of actions
taken or refrained from being taken (i) in furtherance of the transactions
contemplated by this Agreement, or (ii) at the request of FKWW and FKW Sub.
Since December 31, 1996, there has been no change in any of the significant
accounting (including tax accounting) policies, practices or procedures of the
Company or any of its Subsidiaries except as required by GAAP or applicable law.
4.8 Absence of Certain Changes or Events. Since December 31, 1996
------------------------------------
and up to and including the date hereof, except as disclosed in the Company
Disclosure Letter or the Company SEC Reports, (A) the Company has not declared
or paid any dividend or made any distribution on or with respect to its capital
stock; redeemed, purchased or otherwise acquired any of its capital stock;
granted any options, warrants or other rights to purchase shares of, or any
other securities which may be convertible into or exchangeable for, its capital
stock; or issued any shares of its capital stock; (B) there has been no increase
in the compensation or benefits (including but not limited to any bonus,
severance or option plan, program, arrangements or understanding) payable or to
become payable to any officer or director of the Company or any of the 25 most
highly compensated (based on cash compensation paid in or with respect to
services rendered in calendar 1996) employees of the Company and its
Subsidiaries (including officers and directors of the Company, as applicable)
(collectively, including officers and directors of the Company, "Highly
------
Compensated Persons"), other than increases in the ordinary course of business
-------------------
and consistent with past practice; (C) there has been no pledge, disposition,
encumbrance, hypothecation, sale or other transfer of any material portion of
the properties or assets of the Company and its Subsidiaries taken as a whole
(whether tangible or intangible), except in the ordinary course of business and
consistent with past practice; and (D) there has been no agreement binding upon
the Company or any of its Subsidiaries to do any of the foregoing. Since
December 31, 1996 and up to and including the date of this Agreement, other than
as disclosed in the Company Disclosure Letter or the Company SEC Reports or as
contemplated by this Agreement, the Company and each of its Subsidiaries have
conducted their respective businesses in the ordinary course and there has been
no change in the condition (financial or otherwise), business, properties,
assets or liabilities of the Company and its Subsidiaries taken as a whole,
except such failures to so conduct their businesses and such changes, which,
when considered as a whole, have not had a material adverse effect on the
business, results of operations or financial condition of the Company and its
Subsidiaries taken as a whole.
17
4.9 Service Mark. The Company and its Subsidiaries own or have
------------
adequate rights, including the underlying intellectual property rights, with
respect to the mark, "The Family Channel," in the United States.
------------------
4.10 DGCL Section 203. The Company is not subject to the provisions
----------------
of Section 203 of the DGCL.
4.11 Material Contracts and Commitments. None of M.G. "Pat"
----------------------------------
Robertson, Timothy B. Robertson, Anthony D. Thomopoulos, Richard L. Sirvaitis,
K.J. "Gus" Lucas, Stephen D. Lentz, or Louis A. Isakoff (collectively, the
"Responsible Officers") has, as of the date hereof, Actual Knowledge that the
--------------------
Company or any other party to any of the Company's contracts or agreements is in
breach of any of their respective obligations under such contracts or agreements
other than breaches which, individually or in the aggregate, would not
reasonably be expected to have a material adverse affect on the business,
results of operations or financial condition of the Company and its Subsidiaries
taken as a whole.
4.12 Agreements with Related Parties. Other than as set forth in the
-------------------------------
Company SEC Reports or the Company Disclosure Letter, as of the date hereof,
none of Pat Robertson, Tim Robertson, the officers and directors of the Company,
LIFE, CBN, Regent or their respective Affiliates (except Affiliates controlled
by the Company) (collectively, "Related Parties") is a party to any agreement
---------------
with the Company or any of its Subsidiaries providing for the payment of an
amount or amounts in excess of $250,000 in the aggregate, or has any interest in
any property (real, personal or mixed, tangible or intangible) used in or
pertaining to the business of the Company or any of its Subsidiaries which is
material to the Company and its Subsidiaries taken as a whole, except this
Agreement (the "Related Party Agreements"). No Person shall be deemed to have
------------------------
any agreement or interest referred to in this Section 4.12 solely because such
Person holds an equity interest in a Person (who is not an Affiliate of such
Person) which is party to such agreement or has such interest. None of the
Related Party Agreements, in the form previously delivered to FKWW, has been
modified or amended in any material respect through the date hereof except as
contemplated by this Agreement, the Stock Purchase Agreements or the
Contribution Agreement.
4.13 Affiliation Agreements. The Company Disclosure Letter includes a
----------------------
true and complete list as of the date hereof of the contracts between the
Company and the top 25 cable carriers relating to carriage of The Family Channel
(determined by reference to subscriber count as of the most recent practicable
dates) (the "Affiliation Agreements"). At the date hereof, to the Actual
----------------------
Knowledge of the Responsible Officers, the Company has not received any notice
(written or oral) that any such cable carrier (a) has canceled or terminated, or
has a specific intention to cancel or terminate, any Affiliation Agreement,
which cancellations or terminations would involve, in the aggregate, the loss of
more than 1,000,000 subscribers, or (b) has a specific intention to effect a
planned reduction in the number of subscribers covered by such Affiliation
Agreement other than reductions which would not reasonably be expected to have a
material adverse effect on the business, results of operations or financial
condition of the Company and its Subsidiaries taken as a whole.
18
4.14 Brokers and Finders. Except for the fees and expenses payable to
-------------------
Goldman, Sachs & Co. and Bear, Stearns & Co. Inc., which fees shall be paid by
the Surviving Corporation, the Company has not employed any investment banker,
broker, finder, consultant or intermediary in connection with the transactions
contemplated by this Agreement which would be entitled to any investment
banking, brokerage, finder's or similar fee or commission payable after the date
hereof in connection with this Agreement or the Merger contemplated hereby.
4.15 Information Statement. None of the information supplied or to be
---------------------
supplied by the Company for inclusion in the definitive Information Statement to
be filed with the SEC relating to the Merger as required by the Exchange Act
(the "Information Statement"), will, at the date such Information Statement is
---------------------
first sent or given to stockholders of the Company, 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 are made, not misleading. The Information
Statement will, when first sent or given to stockholders of the Company, comply
as to form in all material respects with the requirements of the Exchange Act.
No representation is made by Company with respect to any information supplied by
FKWW or FKW Sub expressly for inclusion in the Information Statement.
ARTICLE V
---------
CONDUCT OF BUSINESS
-------------------
5.1 Conduct of Business of the Company. Prior to the earlier of the
----------------------------------
Effective Time of the Merger or the termination of this Agreement pursuant to
its terms, unless FKWW and FKW Sub shall otherwise consent in writing or unless
otherwise set forth in the Company Disclosure Letter:
(i) except as otherwise contemplated by this Agreement, the
Company shall, and shall cause its Subsidiaries to, carry on their
respective businesses in the usual, regular and ordinary course in
substantially the same manner as heretofore conducted;
(ii) except as required or permitted by this Agreement and except
as required by any existing agreement of the Company or any of its
Subsidiaries or in order to comply with the legal requirements of the
jurisdiction of incorporation of any Subsidiary, the Company shall not and
shall not propose to, nor shall it permit any of its Subsidiaries to or
propose to (A) sell or pledge or agree to sell or pledge any capital stock
owned by it (or any of its Subsidiaries) in any of its Subsidiaries, (B)
amend its Certificate of Incorporation or By-Laws, (C) split, combine,
reclassify or amend the terms of its outstanding capital stock or issue or
authorize or propose the issuance of any other securities in respect of, in
lieu of, or in substitution for, shares of capital stock of the Company, or
declare, set aside or make any dividend or other distribution payable in
cash, stock or property, or (D) directly or indirectly redeem, purchase or
otherwise acquire or agree to redeem, purchase or otherwise acquire any
shares of the capital stock of the Company or any options or rights to
purchase any shares of capital stock except as required by this Agreement;
19
(iii) except as required by any existing agreement of the Company
or any Subsidiary or in order to comply with the legal requirements of the
jurisdiction of incorporation of any Subsidiary, the Company shall not, nor
shall it permit any of its Subsidiaries to, except as required by this
Agreement, authorize, issue, deliver, pledge, encumber or sell or agree to
authorize, issue, deliver, pledge, encumber or sell any additional shares
of, or rights of any kind to acquire any shares of, its capital stock of
any class, or any option, rights or warrants to acquire, or securities
convertible into, shares of capital stock;
(iv) except as otherwise contemplated by this Agreement, the
Company shall not, and shall cause its Subsidiaries not to: (A) adopt any
material employee benefit plan or (B) amend any material employee benefit
plan in a manner that significantly increases the benefits thereunder or
(C) adopt, extend or amend any employment agreement (including any
severance agreement) for senior management employees of the Company or (D)
make any increase in the compensation of any Highly Compensated Person,
whether now or hereafter payable, other than in the ordinary course of
business consistent with past practice (except that no such increase shall
be effected pursuant to any option, stock purchase, or other plan,
arrangement, contract or commitment providing for the issuance of capital
stock of the Company or any option or other right to acquire capital stock
of the Company), or (E) hire any new employee of the Company or any
Subsidiary at a cash compensation (including salary and anticipated bonus)
in excess of $100,000 per annum other than any replacement for a departing
employee pursuant to substantially equivalent compensation arrangements,
which replacements shall be made, if at all, only after consulting with
FKWW;
(v) the Company shall not and shall cause its Subsidiaries to
not, take or agree to take any action with the intent and knowledge that
such action would cause a breach of any of the representations or
warranties of the Company contained in this Agreement in any material
respect or prevent the Company from performing or cause the Company not to
perform any of its covenants hereunder in any material respect;
(vi) the Company shall not submit any matters to the stockholders
of the Company for a vote prior to the Effective Date other than the
Merger;
(vii) the Company shall not, and shall cause its Subsidiaries to
not, sell, pledge, dispose of, encumber or hypothecate any material portion
of the assets of the Company and its Subsidiaries taken as a whole, except
in the ordinary course of business and consistent with past practice;
(viii) the Company shall not, and shall cause its Subsidiaries to
not, acquire (by merger, consolidation or acquisition of stock or assets)
any corporation, partnership or any other business organization or division
thereof, or any material interest therein other than marketable securities
purchased in the ordinary course of business consistent with past practice;
20
(ix) the Company shall not, and shall cause its Subsidiaries to
not, incur any liability in respect of (i) borrowed money, (ii) capitalized
lease obligations, (iii) the deferred purchase price of property or
services (other than trade payables in the ordinary course of business),
(iv) reimbursement obligations in respect of letters of credit and (v)
guarantees of any of the foregoing incurred by any Person other than the
Company and its direct or indirect wholly owned Subsidiaries (collectively,
"Indebtedness") except (x) to the extent of such liabilities as of the date
hereof, including any replacements, refinancings or renewals thereof on
terms not materially more onerous to the Company, or (y) under revolving
credit facilities existing on the date hereof or (z) other obligations
which do not exceed $1 million individually or in the aggregate;
(x) the Company shall not, and shall cause its Subsidiaries to
not, authorize any capital expenditures or the purchase of any fixed assets
other than (i) expenditures or purchases which are included in the capital
budget of the Company previously delivered by the Company to FKWW and FKW
Sub or, if not included in such capital budget, do not exceed $10 million
individually or in the aggregate, or (ii) expenditures necessary to
continue to operate the technical facility of the Company following the
occurrence of any emergency in order to continue to telecast the Family
Channel (subject in the case of (ii) above, to the receipt of approval of
FKWW, which approval shall not be unreasonably withheld and shall be deemed
given, if not previously given or reasonably withheld, upon the expiration
of 24 hours following confirmed, actual delivery of notice, however
delivered, to any of Chase Carey, Jay Itzkowitz, Larry Jacobson, Haim
Saban, Margaret Loesch or Mel Woods, which notice identifies the emergency,
provides an estimate of the expenditures to be incurred and expressly
refers to the requirement that notice of approval or the withholding of
approval be delivered to the Company within 24 hours. The provisions of
Section 9.2 hereof expressly do not apply to this Section 5.1(x);
(xi) the Company shall not, and shall cause its Subsidiaries to
not, authorize any expenditure for television or motion picture productions
or programming other than expenditures or purchases which are included in
the programming budget of the Company previously delivered by the Company
to FKWW and FKW Sub or, if not included in such capital budget, do not
exceed $10 million individually or in the aggregate;
(xii) the Company shall not, and shall cause its Subsidiaries to
not, enter into any transaction or incur or make any payment to any Related
Party of the Company except for goods or services provided in the ordinary
course of business consistent with past practice and except for payments
incurred or made or other transactions effected pursuant to any agreements
existing on the date hereof;
(xiii) the Company shall not, and shall cause its Subsidiaries to
not, take any action to change any of the significant accounting (including
tax accounting) policies, practices or procedures of the Company or any of
its Subsidiaries other than as required in order to comply with GAAP or
applicable law;
21
(xiv) the Company shall not, and shall cause its Subsidiaries to
not, enter into any agreement with any Person other than FKWW or FKW Sub
granting such other Person the right to program any block of time on The
Family Channel other than arrangements which (i) terminate on or prior to
September 1, 1998, or (ii) which are terminable by the Company on not more
than 30 days notice without any payment with respect thereto other than
reimbursement of any advance payments;
(xv) the Company shall not, and shall cause its Subsidiaries to
not, to launch a new cable channel without first consulting with FKWW;
(xvi) the Company shall not and shall cause its Subsidiaries to
not, cancel, revoke or fail to renew any of the Affiliation Agreements or
take any action with the intent and knowledge that such action would cause
a material breach or violation of any Affiliation Agreement; and
(xvii) the Company shall not, and shall cause its Subsidiaries to
not enter into any contract, agreement, commitment or arrangement with
respect to any of the foregoing subsections.
5.2 Conduct of Business of FKW Sub. Prior to the earlier of the
------------------------------
Effective Time of the Merger or the termination of this Agreement pursuant to
its terms, FKW Sub shall not engage in any activities of any nature except as
provided in or contemplated by this Agreement.
ARTICLE VI
----------
ADDITIONAL AGREEMENTS
---------------------
6.1 Preparation of Information Statement. The Company shall, as
------------------------------------
promptly as practicable, prepare and file a preliminary Information Statement
with the SEC and shall use its reasonable good faith efforts to respond to any
comments of the SEC and to cause the Information Statement to be mailed to the
Company's stockholders at the earliest practicable time. Each of the parties
hereto shall supply such information reasonably requested by the Company (or in
the case of the Company, as is necessary) in its possession for inclusion in the
Information Statement. The Company will notify FKWW and FKW Sub promptly of the
receipt of any comments from the SEC or its staff and of any request by the SEC
or its staff for amendments or supplements to the Information Statement or for
additional information and will supply FKWW and FKW Sub with copies of all
correspondence between the Company or any of its representatives, on the one
hand, and the SEC or its staff, on the other hand, with respect to the
Information Statement or the Merger.
6.2 Filings and Other Actions. As promptly as practicable after the
-------------------------
execution of this Agreement, but in any event within 5 business days, FKWW, FKW
Sub and the Company shall file notification reports under the HSR Act and shall
request early termination of the waiting period under the HSR Act and use their
reasonable good faith efforts to obtain clearance or authorization under the HSR
Act of the Merger and the other transactions contemplated by this Agreement at
the earliest practicable time.
22
6.3 Fees and Expenses. Except as set forth in Section 9.11, whether
-----------------
or not the Merger is consummated, all costs and expenses incurred in connection
with this Agreement and the transactions contemplated hereby shall be paid by
the party incurring such expenses.
6.4 Further Assurances.
------------------
(a) Subject to the terms and conditions herein provided, each of the
parties hereto agrees to use all reasonable good faith efforts to take, or cause
to be taken, all actions and to do, or cause to be done, all things necessary,
proper or advisable to consummate and make effective as promptly as practicable
the transactions contemplated by this Agreement, and to cooperate with each
other in connection with the foregoing, including, but not limited to, using
reasonable good faith efforts (a) to obtain all necessary waivers, consents and
approvals from other parties to material loan agreements, leases and other
contracts; (b) to obtain all necessary consents, approvals and authorizations as
are required to be obtained under any federal, state or foreign law or
regulation; (c) to defend all lawsuits or other legal proceedings challenging
this Agreement or the transactions contemplated hereby; (d) to lift or rescind
any injunction or restraining order or other order adversely affecting the
ability of the parties to consummate the transactions contemplated hereby; (e)
to effect all necessary filings with respect to the transactions contemplated
hereby, including, but not limited to, filings under the HSR Act and submissions
of information requested by Government Entities; and (f) to fulfill all
conditions to this Agreement. Notwithstanding the foregoing, nothing contained
herein shall require any party to waive any of the conditions to the Merger or
other transactions contemplated by this Agreement.
(b) FKWW and FKW Sub hereby agree, while this Agreement is in effect,
and except as contemplated hereby, not to take any action with the intention and
knowledge that such action would make any of their representations or warranties
contained herein untrue or incorrect in any material respect or have the effect
of preventing or disabling them from performing their obligations under this
Agreement. FKWW and FKW Sub shall not enter into, permit or give any consent
to, any amendment, supplement or other modification of, or give any consent or
waiver or otherwise take any action (including agreeing to a delayed closing
date) under, any of the Other Transaction Agreements (or any of the agreements
related thereto) (collectively, a "Modification") which could reasonably be
------------
expected to delay the Effective Time, and shall not in any event waive, amend,
modify or terminate the condition set forth in Section 8.6 of the Contribution
Agreement, or terminate any of the Other Transaction Agreements (or any of the
agreements related thereto), without the prior written consent of the Company
(subject to Section 6.8, if applicable). Notwithstanding the foregoing, FKWW
and FKW Sub may effect any Modification to the Other Transaction Agreements (or
any of the agreements related thereto) which they determine in good faith to be
reasonably necessary to effect the transactions contemplated thereby, provided
they use their reasonable good faith efforts to cause the closing thereunder to
occur as soon as practicable and provided further that such Modification will
not delay the Effective Time beyond November 30, 1997.
6.5 Notification of Certain Matters. The Company shall use
-------------------------------
reasonable good faith efforts to promptly give written notice to FKWW and FKW
Sub, and FKWW and FKW Sub shall use reasonable good faith efforts to promptly
give written notice to the Company, upon becoming aware of the occurrence or, to
its knowledge, impending or threatened occurrence, of
23
any event which would cause or constitute a breach of any of its
representations, warranties or covenants contained or referenced in this
Agreement and use its reasonable good faith efforts to prevent or promptly
remedy the same.
6.6 Access and Information. From the date hereof to the Effective
----------------------
Time, the Company shall, and shall cause its Subsidiaries and its and their
respective officers, directors, employees and agents to, afford the officers,
employees and agents of FKWW and FKW Sub and their respective affiliates
reasonable access during normal business hours (or at such other times as FKWW
or FKW Sub and the Company may mutually agree) to its properties, books,
contracts, commitments and records and shall furnish FKWW and FKW Sub and their
respective affiliates all financial, operating and other data and information as
FKWW or FKW Sub or any of their respective affiliates, through their respective
officers, employees or agents, may reasonably request. All information
disclosed pursuant to this Section 6.6, shall be subject to those certain
Confidentiality Agreements entered into by and between FKWW and the Company as
of May 2, 1996, December 17, 1996, and December 31, 1996 (the "Confidentiality
---------------
Agreements").
----------
6.7 Acquisition Proposals. Prior to the Effective Time, the Company
---------------------
agrees (a) that neither it nor any of its Subsidiaries shall authorize or permit
any of its officers, directors, employees, agents and representatives
(including, without limitation, any investment banker, attorney or accountant
retained by it or any of its Subsidiaries) to initiate, solicit or encourage,
directly or indirectly, any inquiries or the making or implementation of any
proposal or offer (including, without limitation, any proposal or offer to its
stockholders) with respect to a merger, acquisition, consolidation or similar
transaction involving, or any purchase of all or any significant portion of the
assets or any equity securities of, the Company or any of its Subsidiaries (any
such proposal or offer being hereinafter referred to as an "Acquisition
-----------
Proposal") or engage in any negotiations concerning, or provide any confidential
--------
information or data to, or have any discussions with, any Person relating to an
Acquisition Proposal, or otherwise facilitate any effort or attempt to make or
implement an Acquisition Proposal; (b) that it will immediately cease and cause
to be terminated any existing activities, discussions or negotiations with any
parties conducted heretofore with respect to any of the foregoing and will take
the necessary steps to inform the individuals or entities referred to above of
the obligations undertaken in this Section 6.7; and (c) that it will notify FKWW
and FKW Sub immediately if any such inquiries or proposals are received by, any
such information is received from, or any such negotiations or discussions are
sought to be initiated or continued with, it; provided, however, that nothing
-------- -------
contained in this Section 6.7 shall prohibit the Board of Directors of the
Company from (i) furnishing information to or entering into discussions or
negotiations with, any Person or entity that makes an unsolicited bona fide
proposal to acquire the Company pursuant to a merger, consolidation, share
exchange, purchase of a substantial portion of the assets, business combination
or other similar transaction, if, and only to the extent that (A) the Board of
Directors determines in good faith, based as to legal matters on advice of
outside legal counsel, that the failure to take such action would involve a
substantial risk of breach of fiduciary duty to the Company's shareholders
imposed by applicable law, (B) prior to furnishing such information to, or
entering into discussions or negotiations with, such Person or entity, the
Company provides notice to FKWW and FKW Sub to the effect that it is furnishing
information to, or entering into discussions or negotiations with, such Person
or entity, and (C) subject to any confidentiality agreement with such Person or
entity (which the Company executed after determining in good
24
faith, based as to legal matters on advice of outside counsel, that the failure
to take such action would involve a substantial risk of breach of the Board of
Directors' fiduciary duty to stockholders imposed by applicable law), the
Company keeps FKWW and FKW Sub informed of the status (not the terms) of any
such discussions or negotiations; and (ii) to the extent applicable, complying
with Rule 14d-9 and 14e-2 promulgated under the Exchange Act with regard to an
Acquisition Proposal. Nothing in this Section 6.7 shall (x) permit any party to
terminate this Agreement (except as specifically provided in Section 8.1
hereof), (y) permit any party to enter into any agreement with respect to an
Acquisition Proposal during the term of this Agreement (it being agreed that
during the term of this Agreement, no party shall enter into any agreement with
any Person that provides for, or in any way facilitates, an Acquisition Proposal
(other than a confidentiality agreement in customary form)), or (z) affect any
other obligation of any party under this Agreement.
6.8 Board of Directors. In the event FKWW and the other parties
------------------
thereto consummate the purchase of the Company Stock from the Robertson Sellers
pursuant to the Robertson Purchase Agreement prior to the Closing of the Merger,
FKWW shall, from and after such closing, be entitled to designate, at its
option, upon notice to the Company, up to that number of directors, rounded to
the nearest whole number, of the Company's Board of Directors, subject to
compliance with Section 14(f) of the Exchange Act, as will make the percentage
of the Company's directors designated by FKWW equal to the aggregate voting
power of the Shares of Company Stock held by FKWW or any of its Subsidiaries
(after giving effect to the conversion of the Class A Stock to Class B Stock and
the conversion of any Class C Stock and any Convertible Notes then held by FKWW
or its Subsidiaries into Class B Stock); provided, however, that the Company
-------- -------
shall not be obligated and need not appoint any designee or designees to the
Board of Directors of the Company who, in the Board's good faith judgment, are
not fit to be Directors of the Company; and provided, further, that in the event
-------- -------
that FKWW designees are elected to the Board of Directors of the Company, such
Board of Directors shall have, until the Effective Time, at least two directors
who are Class B Directors on the date of this Agreement (the "Continuing
----------
Directors"), and provided, further that, in such event, if the number of
--------- -------- -------
Continuing Directors shall be reduced below two for any reason whatsoever, the
remaining Continuing Directors shall be permitted to designate an individual to
fill such vacancy who would be an "independent director" under the rules of the
New York Stock Exchange (such designee to be deemed to be a Continuing Director
for purposes of this Agreement) or, if no Continuing Directors then remain, the
other directors shall designate two individuals to fill such vacancies who shall
not be officers, directors, employees or Affiliates of FKWW or any of its
Affiliates and shall otherwise be "independent directors" under the rules of the
New York Stock Exchange (each designee to be deemed to be a Continuing Director
for purposes of this Agreement). To the fullest extent permitted by applicable
law, the Company shall take all actions requested by FKWW which are reasonably
necessary to effect the election of any such designee or designees, including
the inclusion in the Information Statement, or a separate mailing, of the
information required by Section 14(f) of the Exchange Act and Rule 14f-1
promulgated thereunder, and the making of such mailing as part of the
Information Statement or otherwise, as requested by FKWW (provided that FKWW
shall have provided to the Company on a timely basis all information required to
be included with respect to FKWW designees). In connection with the foregoing,
the Company will promptly either increase the size of the Company's Board of
Directors and/or obtain the resignation of such number of its current directors
as is necessary to enable FKWW designees to
25
be elected or appointed to the Company's Board of Directors as provided above.
Following the election or appointment of FKWW's designees pursuant to this
Section 6.8 and prior to the Effective Time, any amendment, or waiver of any
term or condition, of this Agreement or the Amended and Restated Certificate of
Incorporation or Restated By-Laws of the Company, any termination of this
Agreement by the Company, any extension by the Company of the time for the
performance of any of the obligations or other acts of FKWW or FKW Sub or waiver
or assertion of any of the Company's rights hereunder, or any other consents or
actions by the Board of Directors with respect to this Agreement or the
Guaranty, will require, and will require only, the concurrence of a majority of
the Continuing Directors, except to the extent that applicable law requires that
such action be acted upon by the full Board of Directors, in which case such
action will require the concurrence of a majority of the Directors, which
majority shall include each of the Continuing Directors, and no other action by
the Company shall be required for purposes of this Agreement. After the date of
this Agreement, until the earlier of (i) the Effective Time, and (ii) the
termination of this Agreement, FKWW will not exercise any rights it may have as
a stockholder of the Company to effect a change in the composition of the Board
of Directors of the Company, except as provided for in this Section 6.8.
6.9 Indemnification and Insurance. FKWW shall cause all rights to
-----------------------------
indemnification or exculpation now existing in favor of the past and present
directors or officers of the Company as provided in the Company's Amended and
Restated Certificate of Incorporation or Restated By-Laws with respect to claims
arising from service as officers or directors prior to the Effective Time to
survive the merger and continue in full force and effect for a period of not
less than six years from the Effective Time (or with respect to claims arising
from service as officers or directors prior to the Effective Time which have not
been resolved prior to such sixth anniversary, until the time such matters are
finally resolved). FKWW shall cause the Surviving Corporation to maintain in
effect for not less than six years from the Effective Time the current policies
of the directors' and officers' liability insurance maintained by the Company as
of the date hereof (provided that the Surviving Corporation may substitute
therefor policies of at least the same amount of coverage (covering known or
unknown claims as of the Effective Time) containing terms and conditions which
are not less advantageous), copies of which has been previously made available
to FKWW, with respect to matters occurring prior to the Effective Time, to the
extent available; provided, however, that the Surviving Corporation shall not be
-------- -------
required to maintain such insurance to the extent the annual premium therefor
exceeds 200% of the annual premiums currently paid by the Company in respect of
the current policy or policies (the "Maximum Amount") but in such case shall
--------------
purchase as much comparable coverage as available for the Maximum Amount.
6.10 Officer's Certificate. The Company, at the request of FKWW,
---------------------
shall deliver a certificate to FKWW executed by an executive officer of the
Company in the form and with respect to the matters referred to in the attached
Exhibit A, dated as of the date of the closing of the purchase of the Control
---------
Stock (as defined in the Robertson Purchase Agreement) by FKWW pursuant to terms
of the Robertson Purchase Agreement, or, alternatively, inform FKWW that it is
unable to give such certificate because of the inaccuracy of any of the matters
referred to therein.
26
ARTICLE VII
-----------
CONDITIONS
----------
7.1 Conditions to Obligation of Each Party to Effect the Merger. The
-----------------------------------------------------------
respective obligations of each party to effect the Merger shall be subject to
the fulfillment or waiver at or prior to the Effective Time of the following
conditions:
(a) no temporary or permanent order, injunction or decree shall be
entered or enforced by or before any court, arbitrator or Governmental Entity
that would prohibit the consummation of the Merger;
(b) there shall not have occurred and be continuing any declaration
of any banking moratorium or suspension of payments by banks in the United
States or any general limitation on the extension of credit by lending
institutions in the United States;
(c) all required waiting periods under the HSR Act applicable to the
transactions contemplated hereunder shall have expired or terminated;
(d) the Company shall have obtained all consents and approvals of
Governmental Entities which are legally required to be obtained by the Company
prior to consummation of the Merger, which if not obtained would have a material
adverse effect on the business, results of operations or financial condition of
the Company and its Subsidiaries taken as a whole; and
(e) there shall not have been any statute, rule, regulation or order
promulgated, enacted, issued or deemed applicable to the Merger by any
Governmental Entity or court of competent jurisdiction which would make the
consummation of the Merger illegal;
provided, however, that upon the closing of the purchase of the Control Stock
-------- -------
pursuant to the Robertson Purchase Agreement, the conditions in subparagraphs
(c) and (d) of this Section 7.1 above shall, to the extent then applicable, no
longer be applicable.
7.2 Additional Conditions to the Company's Obligation to Effect the
---------------------------------------------------------------
Merger. The obligation of the Company to effect the Merger is also subject to
------
the satisfaction or waiver at or prior to the Effective Time of the following
conditions: (a) the representations and warranties of FKWW and FKW Sub contained
in this Agreement shall be true and correct in all material respects on and as
of the Effective Time as though made on and as of such time (except for those
made as of a specified date (including "as of the date hereof") which shall be
true and correct as of such date), and (b) FKWW and FKW Sub shall have performed
in all material respects their respective obligations hereunder required to be
performed on or before the Effective Time; provided, however, upon the closing
-------- -------
of the purchase of the Control Stock pursuant to the terms of the Robertson
Purchase Agreement, the conditions set forth in clause (a) of this Section 7.2
shall no longer be applicable.
27
7.3 Additional Conditions to FKW Sub's Obligation to Effect the
-----------------------------------------------------------
Merger. The obligation of FKW Sub to effect the Merger is also subject to the
------
satisfaction or waiver at or prior to the Effective Time of the following
conditions: (a) the representations and warranties of the Company contained in
this Agreement shall be true and correct in all material respects on and as of
the Effective Time as though made on and as of such time (except for those made
as of a specified date (including "as of the date hereof"), which shall be true
and correct as of such date), except (i) for changes in circumstances expressly
permitted or contemplated by this Agreement or (ii) where the failure would not
be reasonably expected to have a material adverse effect on the business,
results of operations or financial condition of the Company and its Subsidiaries
taken as a whole, (b) the Company shall have performed in all material respects
its obligations hereunder required to be performed on or before the Effective
Time, and (c) except as set forth in the Company Disclosure Letter or as
expressly provided for herein, (x) immediately prior to the Effective Time, the
representation and warranty contained in Section 4.5 (a) hereof shall be true
and correct (other than such changes resulting from the exercise of Options or
the conversions of convertible securities which are outstanding as of the date
hereof and disclosed in the Company Disclosure Letter), and (y) immediately
following the Effective Time, other than as provided for in the Company
Disclosure Letter, neither the Company nor any of its Subsidiaries is or will be
bound by any options, warrants, rights or agreements which would entitle any
Person, other than FKWW or its Subsidiaries, to own any capital stock of the
Surviving Corporation or to receive any payment in respect thereof; provided,
--------
however, upon the closing of the purchase of the Control Stock pursuant to the
-------
provisions of the Robertson Purchase Agreement, the conditions set forth in
clauses (a) and (b) of this Section 7.3 shall no longer be applicable.
ARTICLE VII
-----------
TERMINATION, AMENDMENT, WAIVER AND LIABILITY
--------------------------------------------
8.1 Termination. This Agreement may be terminated at any time prior
-----------
to the Effective Time, whether prior to or after approval of the Merger by the
stockholders of the Company:
(a) by mutual written consent of FKW Sub, FKWW and the Company, or
(b) by FKW Sub or FKWW, if the Effective Time shall not have occurred
on or prior to November 30, 1997, due to a failure of any of the conditions to
the obligations of FKW Sub to effect the Merger, to the extent then applicable,
set forth in Sections 7.1 or 7.3, or
(c) by the Company, if the Effective Time shall not have occurred on
or prior to November 30, 1997, due to a failure of any of the conditions to the
obligations of the Company to effect the Merger, to the extent then applicable,
set forth in Sections 7.1 or 7.2, or
28
(d) by the Company, if after the date hereof and before the Effective
Time, the Guarantor attempts or purports to revoke or withdraw the Guaranty or a
court of competent jurisdiction finally determines that the Guaranty is
unenforceable or invalid;
provided that any action by the Company shall be subject to Section 6.8 if then
applicable; and provided, further, that the November 30, 1997 date shall be
-------- -------
extended for (i) any period that a party is subject to a non-final order,
injunction or decree prohibiting consummation of the Merger and (ii) the
continuation of any event set forth in Section 7.1(b).
8.2 Effect of Termination. In the event of the termination of this
---------------------
Agreement as provided in Section 8.1, this Agreement shall forthwith become void
and there shall be no liability or obligation on the part of the Company or FKW
Sub or FKWW or any of their Affiliates except as set forth in Sections 6.3 and
9.11 (with respect to fees and expenses) or Section 6.6 (with respect to
confidentiality). In the event of a termination of this Agreement as provided
in Section 8.1, the parties will not be excused for any liability owing the
others for a prior breach of this Agreement, subject to the provisions of
Sections 8.5 and 9.3.
8.3 Amendment. This Agreement may not be amended except by action of
---------
the Board of Directors of each of the parties hereto (and subject, in the case
of the Company, to Section 6.8), which Amendment is set forth in an instrument
in writing signed on behalf of each of the parties hereto. No amendment
following approval of the stockholders shall require the approval of the
stockholders unless specifically required by the DGCL.
8.4 Waiver. At any time prior to the Effective Time, whether before
------
or after the stockholder approval, any party hereto, by action taken by its
Board of Directors (and subject, in the case of the Company, to Section 6.8),
may (i) extend the time for the performance of any of the obligations or other
acts of any other party hereto or (ii) subject to the second sentence of Section
8.3, waive compliance with any of the agreements of any other party or with any
conditions to its own obligations. Any agreement on the part of a party hereto
to any such extension or waiver shall be valid only if set forth in an
instrument in writing signed on behalf of such party by a duly authorized
officer.
8.5 Limitation on Liability. The liability of the Company for any
-----------------------
breach by the Company of this Agreement shall be limited to the actual damages
suffered by FKWW and FKW Sub under this Agreement and the Company shall not be
liable for any consequential or other damages of FKWW or FKW Sub, including any
damages arising in connection with any Other Transaction Agreement.
ARTICLE IX
----------
GENERAL PROVISIONS
------------------
9.1 Publicity. The initial press release relating to this Agreement
---------
shall be a joint press release in the form attached hereto as Exhibit B, and
---------
FKWW and the Company shall, subject to their respective legal obligations of
public companies, use reasonable good faith efforts to agree upon the text of
any other press release before issuing any such press release or otherwise
29
making public statements with respect to the transactions contemplated hereby
and in making any filings with any federal or state governmental or regulatory
agency or with any national securities exchange with respect thereto.
9.2 Notices. All notices and other communications required or
-------
permitted hereunder shall be in writing and shall be delivered personally,
mailed by certified or registered mail, return receipt requested and postage
prepaid, or transmitted by facsimile to the parties at the following addresses
or at such other addresses as shall be specified by the parties by like notice:
(a) If to FKWW or FKW Sub:
---------------------
Fox Kids Worldwide, Inc. or
Fox Kids Merger Corporation
10960 Wilshire Boulevard
Los Angeles, California 90024
Attn: Mel Woods
Fax: 310-235-5552
with a copy to:
--------------
Fox, Inc.
10201 West Pico Boulevard
Los Angeles, California 90035
Attn: President
Fax: 310-369-1203
and a copy to:
-------------
The News Corporation Limited
c/o News America Publishing Incorporated
1211 Avenue of the Americas
New York, New York 10036
Attn: Arthur M. Siskind, Esq.
Fax: 212-768-2029
and a copy to:
-------------
Troop Meisinger Steuber & Pasich, LLP
10940 Wilshire Boulevard
Los Angeles, California 90024
Attn: C.N. Franklin Reddick, III, Esq.
Fax: 310-443-8512
and a copy to:
-------------
Squadron, Ellenoff, Plesent & Sheinfeld, LLP
30
551 Fifth Avenue
New York, New York 10176
Attn: Jeffrey W. Rubin, Esq.
Fax: 212-697-6686
(b) If to the Company:
-----------------
International Family Entertainment, Inc.
2877 Guardian Lane
Virginia Beach, Virginia 23450
Attn: Tim Robertson
Fax: 757-459-6422
with a copy to:
--------------
International Family Entertainment, Inc.
2877 Guardian Lane
Virginia Beach, Virginia 23450
Attn: Louis A. Isakoff, Esq.
Fax: 757-459-6422
and a copy to:
-------------
Latham & Watkins
53rd at Third, Suite 1000
885 Third Avenue
New York, New York 10022-4802
Attn: Erica H. Steinberger, Esq.
Fax: 212-751-4864
and a copy to:
-------------
Paul, Weiss, Rifkind, Wharton & Garrison
1285 Avenue of the Americas
New York, New York 10019-6064
Attn: James M. Dubin, Esq.
Fax: 212-757-3990
and shall for all purposes of this Agreement be treated as being effective or
having been given when delivered if delivered personally, or, if sent by mail or
facsimile, upon receipt.
9.3 Representations and Warranties. The respective representations
------------------------------
and warranties of the Company, FKWW and FKW Sub contained herein shall expire
with, and be terminated and extinguished at the Effective Time. Neither the
Company, FKWW nor FKW Sub shall be under any monetary or other liability
whatsoever with respect to any breach of a
31
representation or warranty contained herein or in or with respect to any
certificate or other document delivered pursuant hereto, and the sole
consequence of any such breach shall be limited to the failure to satisfy a
condition set forth in Section 7.2 or 7.3 hereof, as applicable, and the
termination right provided for in Section 8.1 hereof, in each case to the extent
applicable according to such Section's express terms.
9.4 Titles and Gender. The titles of the Sections and subsections of
-----------------
this Agreement are for convenience of reference only and are not to be
considered in construing this Agreement. Whenever used herein, the singular
member includes the plural, the plural includes the singular, and the use of
either gender shall include both genders.
9.5 Successors and Assigns. This Agreement shall be binding upon and
----------------------
inure to the benefit of and be enforceable by the respective successors and
assigns of the parties hereto; provided, however, that no party hereto shall
-------- -------
assign any of its rights, interests or obligations hereunder without the prior
written consent of the other parties.
9.6 Third Party Beneficiaries. Nothing in this Agreement, expressed
-------------------------
or implied, is intended to confer on any Person other than the parties hereto or
their respective successors and permitted assigns, and other than as expressly
provided for in Section 6.8 and 6.9 hereof, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.
9.7 Counterparts. This Agreement may be executed in counterparts,
------------
each of which shall be an original, but all of which together shall constitute
one and the same agreement.
9.8 Severability. Should any Section or any part of a Section of
------------
this Agreement be rendered void, invalid or unenforceable by any court of law
for any reason, such invalidity or unenforceability shall not void or render
invalid or unenforceable any other Section or part of a Section of this
Agreement.
9.9 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
-------------
BOTH AS TO VALIDITY AND PERFORMANCE AND ENFORCED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES
THEREOF.
9.10 No Adverse Construction. The rule that a contract is to be
-----------------------
construed against the party drafting the contract is hereby waived, and shall
have no applicability in construing this Agreement or any provisions hereof.
9.11 Costs and Attorneys' Fees. In the event that any action, suit,
-------------------------
or other proceeding is brought or instituted, to enforce or to seek damages for
breach of this Agreement, the prevailing party shall recover all of such party's
costs, and reasonable attorneys' fees incurred in each and every such action,
suit, or other proceeding, including any and all appeals or petitions therefrom.
9.12 Entire Agreement. This Agreement, the attached Exhibits and
----------------
Company Disclosure Letter, the Confidentiality Agreements and the Guaranty
contain the entire
32
understanding of the parties and there are no further or other agreements or
understandings, written or oral, in effect between the parties relating to the
subject matter hereof unless expressly referred to herein.
9.13 Jurisdiction; Consent to Service of Process; No Jury Trial. (a)
----------------------------------------------------------
Except as provided in the next paragraph, the parties hereto agree that any
dispute between or among them arising out of, connected with, related to, or
incidental to the relationship established among them pursuant to this
Agreement, and whether arising in contract, tort, equity, or otherwise, may be
resolved by state or federal courts located in Delaware. Each of the parties
hereto waives in any such dispute any objection that it may have to such
Delaware courts considering the dispute including, without limitation, any
objection to the laying of venue or based on the ground of forum non conveniens.
(b) Each of the parties hereto agrees that the other parties to this
Agreement shall have the right, to the extent permitted by applicable law, to
proceed against it or its property in a court in any location reasonably
selected in good faith to enable such other parties to realize on such property,
or to enforce a judgment or other court order entered in favor of any such other
party. Each of the parties hereto waives any objection that it may have to the
location of the court in which any other party to this Agreement has commenced a
proceeding described in this paragraph including, without limitation, any
objection to the laying of venue or based on the ground of forum non conveniens.
(c) The parties hereto each waives any right to have a jury
participate in resolving any dispute whether sounding in contract, tort, or
otherwise arising out of, connected with, related to or incidental to the
relationship established between them pursuant to this Agreement. Instead, any
disputes resolved in court will be resolved in a bench trial without a jury.
(d) Each party hereto hereby irrevocably designates CT Corporation
System as its designee, appointee and agent to receive, for and on behalf of it,
service of process in such respective jurisdictions in any legal action or
proceeding with respect to this Agreement or any document related thereto. It
is understood that a copy of such process serviced on such agent will be
promptly forwarded by mail to it at its address set forth in Section 9.2 hereof,
but the failure to receive such copy shall not affect in any way the service of
such process. Each of the parties hereto further irrevocably consents to the
service of process of any of the aforementioned courts in any such action or
proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to it at its said address, such service to become effective
upon confirmed delivery.
(e) Nothing herein shall affect the right of any party to this
Agreement to serve process in any other manner permitted by law or to commence
legal proceedings or otherwise proceed against any other party in any other
jurisdiction.
9.14 Affiliate; Control, Controlled By and Under Common Control With;
----------------------------------------------------------------
Person; Actual Knowledge. For purposes of this Agreement:
------------------------
33
(a) "Affiliate" shall mean, when used with reference to a specified
---------
Person, any Person that directly or indirectly through one or more
intermediaries controls or is controlled by, or is under common control with,
such specified Person and, in the case of individuals, a Person's spouse,
parents, children, siblings, mothers and fathers in law, sons and daughters in
law, and brothers and sisters in law. For purposes of this definition, control
(including controlled by and under common control with), as used with respect to
any Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise.
For purposes of this Agreement, (i) neither the Company nor any of its
Subsidiaries shall be deemed to be an Affiliate of FKWW, FKW Sub or any of their
respective Affiliates, (ii) each of the holders of the Class A Stock, Liberty,
CBN, Regent and their respective Affiliates shall be deemed to be an Affiliate
of the Company, and (iii) the Guarantor, Fox, Inc. and Saban Entertainment,
Inc., and their respective Affiliates, shall each be deemed to be an Affiliate
of FKWW and FKW Sub.
(b) "Person" means any individual, corporation, general or limited
------
partnership, limited liability company, limited liability partnership, trust,
joint venture, association or unincorporated entity of any kind.
(c) "Actual Knowledge" of a specified Person means the actual
----------------
knowledge of such Person without independent investigation or inquiry.
9.15 Specific Performance. Each of the parties hereto recognizes and
--------------------
acknowledges that a breach by it of any covenants or agreements contained in
this Agreement will cause the other parties to sustain damages for which they
would not have an adequate remedy at law for money damages, and therefore each
of the parties hereto agrees that in the event of any such breach the aggrieved
party or parties shall, without the posting of bond or other security, be
entitled to the remedy of specific performance of such covenants and agreements
and injunctive and other equitable relief, in addition to any other remedy to
which it or they may be entitled, at law or in equity.
9.16 Definitions. The following terms are defined on the page numbers
-----------
indicated below:
[Download Table]
DEFINITION SECTION
---------- -------
Acquisition Proposal.................................................. 6.7
Actual Knowledge...................................................... 9.14
Affiliate............................................................. 9.14
Affiliation Agreements................................................ 4.13
Agreement............................................................. Preamble
Blue Sky Laws......................................................... 2.3
Cash Payment.......................................................... 1.8
CBN................................................................... Recitals
CBN Purchase Agreement................................................ Recitals
Certificates.......................................................... 1.9
34
[Download Table]
Class A Stock......................................................... Recitals
Class B Stock......................................................... Recitals
Class C Stock......................................................... Recitals
Company............................................................... Recitals
Company Disclosure Letter.............................................Article IV
Company SEC Reports................................................... 4.7
Company Stock......................................................... Recitals
Confidentiality Agreements............................................ 6.6
Consent............................................................... Recitals
Constituent Corporations.............................................. 1.1
Continuing Directors.................................................. 6.8
Contribution Agreement................................................ Recitals
Convertible Notes..................................................... Recitals
DGCL.................................................................. Recitals
Dissenting Shares..................................................... 1.7
Effective Time........................................................ 1.3
Exchange Act.......................................................... 1.8
Exchange Agent........................................................ 1.9
FKW Sub............................................................... Recitals
FKWW.................................................................. Recitals
GAAP.................................................................. 4.7
Governmental Entity................................................... 2.1
Guarantor............................................................. Recitals
Guaranty.............................................................. Recitals
Highly Compensated Persons............................................ 4.8
HSR ACT............................................................... 2.3
Information Statement................................................. 4.15
Irrevocable Trusts.................................................... Recitals
Lien.................................................................. 2.5
LIFE.................................................................. Recitals
Maximum Amount........................................................ 6.9
Merger................................................................ Recitals
Merger Consideration.................................................. 1.6
Merger Filing......................................................... 1.3
Modification.......................................................... 6.4
MTM................................................................... 1.8
Options............................................................... 1.8
Other Transaction Agreements.......................................... Recitals
Person................................................................ 9.14
PR Charitable Trust................................................... Recitals
Regent................................................................ Recitals
Regent Purchase Agreement............................................. Recitals
Related Parties....................................................... 4.12
Related Party Agreements.............................................. 4.12
Responsible Officers.................................................. 4.11
Restriction........................................................... 4.2
35
[Download Table]
Robertson Purchase Agreement.......................................... Recitals
The Robertson Sellers................................................. Recitals
SEC................................................................... 4.7
Securities Act........................................................ 2.3
Share................................................................. 1.6
Stock Plans........................................................... 1.8
Stock Purchase Agreements............................................. Recitals
Subsidiary............................................................ 2.1
Surviving Corporation................................................. 1.11
The Family Channel.................................................... 4.9
Tim Robertson......................................................... Recitals
TR Charitable Trust................................................... Recitals
TR Family Trust....................................................... Recitals
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
36
IN WITNESS WHEREOF, FKWW, FKW Sub and the Company have caused this
Agreement to be executed as of the date first written above by their duly
authorized respective officers.
FOX KIDS WORLDWIDE, INC.
By: /s/ Mel Woods
______________________________________
Name: Mel Woods
Title: President
FOX KIDS MERGER CORPORATION
By: /s/ Mel Woods
_____________________________________
Name: Mel Woods
Title: President
INTERNATIONAL FAMILY ENTERTAINMENT, INC.
By: /s/ M.G. Robertson
_____________________________________
Name: M.G. Robertson
Title: Chairman of the Board
EXHIBITS
Exhibit A --- Officer's Certificate
Exhibit B --- Press Release
CERTIFICATE
This Certificate is issued to Fox Kids Worldwide, Inc., a Delaware
corporation ("FKWW") pursuant to Section 6.10 of that certain Agreement and Plan
of Merger (the "Merger Agreement"), dated as of June 11, 1997, by and among
FKWW, Fox Kids Merger Corporation, a Delaware corporation and a wholly owned
subsidiary of FKWW, and International Family Entertainment, a Delaware
corporation, (the "Company"). Capitalized terms, unless otherwise defined
herein, shall have the meanings ascribed to them in the Merger Agreement.
In connection therewith, the Company hereby certifies, to the Actual
Knowledge of the Responsible Officers, as of the date hereof:
1. No temporary or permanent order, injunction, or decree has been entered or
enforced by or before any court, arbitrator or Governmental Entity against the
Company that would prohibit the consummation of the Merger by the Company; and
2. The Company has obtained all consents and approvals of any Governmental
Entity which are legally required to be obtained by the Company prior to the
consummation of the Merger, and which if not obtained would have a material
adverse effect on the business, results of operations or financial condition of
the Company and its Subsidiaries taken as a whole.
This certificate is being delivered by the undersigned in his capacity as
an officer of the Company and the undersigned shall have no personal liability
with respect to the matters set forth above. This certificate is for
informational purposes only and the accuracy of the information included herein
is not, and shall not be deemed to be, a condition to the Merger. Sections 7.1,
7.2 and 7.3 of the Merger Agreement include a complete list of the conditions to
the Merger. Further, this Certificate shall not form the basis of any claim or
assertion of liability on the part of the Company or any other Person
irrespective of whether the Merger occurs.
IN WITNESS WHEREOF, the undersigned has executed this certificate and
caused it to be delivered this ______________, day of _______________, 1997.
International Family Entertainment, Inc.
By:____________________________________
Its:___________________________________
Acknowledged and (as to
the penultimate paragraph) agreed,
Fox Kids Worldwide, Inc.
By: ______________________________
Its: _____________________________
Fox Kids Merger Corporation
By: ______________________________
Its: _____________________________
Dates Referenced Herein and Documents Incorporated by Reference
| Referenced-On Page |
|---|
| This ‘S-1/A’ Filing | | Date | | First | | Last | | | Other Filings |
|---|
| |  |
| | 9/1/98 | | 22 | | | | | None on these Dates |
| Filed on: | | 1/26/98 |
| | 11/30/97 | | 23 | | 29 |
| | 6/11/97 | | 39 |
| | 3/31/97 | | 17 |
| | 12/31/96 | | 17 | | 24 |
| | 12/30/96 | | 1 |
| | 12/18/96 | | 1 |
| | 12/17/96 | | 24 |
| | 5/2/96 | | 24 |
| | 9/18/95 | | 1 |
| | 1/1/94 | | 16 |
| List all Filings |
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