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Entegris - Consolidation Agreement BY And Among Entegris, Fluoroware, & Empak
Exhibit 10.15
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CONSOLIDATION AGREEMENT
by and among
ENTEGRIS, INC.
a Minnesota corporation,
FLUOROWARE, INC.
a Minnesota corporation,
and
EMPAK, INC.
a Minnesota corporation,
June 1, 1999
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TABLE OF CONTENTS ARTICLE I. ORGANIZATION MATTERS...........................................................................2
1.1 Formation of the Company............................................................2
1.2 Management..........................................................................2
1.3 Board/Strategic Integration Team....................................................3
ARTICLE II. THE EXCHANGE...................................................................................3
2.1 Exchange of Shares by the Fluoroware Shareholders...................................3
2.2 Exchange of Shares by the Empak Shareholders........................................3
2.3 Reissuance of Warrants, Options, etc................................................4
2.4 Fractional Shares...................................................................4
2.5 The Closing.........................................................................4
2.6 Shareholder Agreements..............................................................5
2.7 Designation of Shareholder Representatives..........................................5
ARTICLE III. REPRESENTATIONS AND WARRANTIES OF
FLUOROWARE.....................................................................................5
3.1 Incorporation and Corporate Power...................................................6
3.2 Authority...........................................................................6
3.3 No Breach...........................................................................6
3.4 Governmental Authorities; Consents..................................................6
3.5 Capital Stock.......................................................................7
3.6 Financial Statements................................................................7
3.7 Absence of Undisclosed Liabilities..................................................7
3.8 No Material Adverse Changes.........................................................8
3.9 Absence of Certain Developments.....................................................8
3.10 Tax Matters.........................................................................9
3.11 Contracts and Commitments..........................................................11
3.12 No Defaults........................................................................14
3.13 Intellectual Property Rights.......................................................14
3.14 Litigation.........................................................................16
3.15 Employees..........................................................................16
3.16 Employee Benefit Plans.............................................................16
3.17 Customers and Suppliers............................................................18
3.18 Compliance with Laws; Permits......................................................18
3.19 Brokerage..........................................................................18
3.20 Inventory..........................................................................19
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3.21 Accounts and Notes Receivable......................................................19
3.22 Affiliate Transactions.............................................................19
3.23 Real Estate........................................................................19
3.24 Condition of Assets................................................................20
3.25 Environmental Matters..............................................................21
3.26 Year 2000 Compliance...............................................................24
3.27 Warranties.........................................................................25
3.28 Disclosure.........................................................................25
ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF EMPAK ......................................................26
4.1 Incorporation; Corporate Power; Subsidiary.........................................26
4.2 Authority..........................................................................26
4.3 No Breach..........................................................................26
4.4 Governmental Authorities; Consents.................................................27
4.5 Capital Stock......................................................................27
4.6 Financial Statements...............................................................27
4.7 Absence of Undisclosed Liabilities.................................................28
4.8 No Material Adverse Changes........................................................28
4.9 Absence of Certain Developments....................................................28
4.10 Tax Matters........................................................................29
4.11 Contracts and Commitments..........................................................31
4.12 No Defaults........................................................................33
4.13 Intellectual Property Rights.......................................................34
4.14 Litigation.........................................................................35
4.15 Employees..........................................................................36
4.16 Employee Benefit Plans.............................................................36
4.17 Customers and Suppliers............................................................37
4.18 Compliance with Laws; Permits......................................................38
4.19 Brokerage..........................................................................38
4.20 Inventory..........................................................................38
4.21 Accounts and Notes Receivable......................................................38
4.22 Affiliate Transactions.............................................................39
4.23 Real Estate........................................................................39
4.24 Conditions of Assets...............................................................40
4.25 Environmental Matters..............................................................40
4.26 Year 2000 Compliance...............................................................44
4.27 Warranties.........................................................................44
4.28 Disclosure.........................................................................45
ARTICLE V. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.................................................45
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5.1 Incorporation and Corporate Power..................................................45
5.2 Execution, Delivery; Valid and Binding Agreement...................................45
5.3 Validity of the Company Shares.....................................................46
5.4 No Breach..........................................................................46
5.5 Governmental Authorities; Consents.................................................46
5.6 Brokerage........................................................................46
ARTICLE VI. COVENANTS OF EMPAK AND FLUOROWARE.............................................................46
6.1 Conduct of the Business............................................................46
6.2 Access to Books and Records........................................................48
6.3 Hart-Scott-Rodino Filing...........................................................49
6.4 Other Regulatory Filings...........................................................49
6.5 Conditions.........................................................................49
6.6 No Negotiations....................................................................49
6.7 Tax and Accounting Treatment.......................................................50
ARTICLE VII. CONDITIONS TO CLOSING.........................................................................50
7.1 Conditions to the Fluoroware Shareholders' Obligations.............................50
7.2 Conditions to the Empak Shareholders' Obligations..................................52
ARTICLE VIII. TERMINATION...................................................................................55
8.1 Termination........................................................................55
8.2 Effect of Termination..............................................................55
ARTICLE IX. SURVIVAL; OFFSET RIGHTS.......................................................................55
9.1 Survival...........................................................................55
9.2 Indemnification Commitments........................................................56
9.3 Limitations on Indemnification Commitments.........................................56
9.4 Insurance Proceeds.................................................................58
9.5 Claims Procedure...................................................................58
ARTICLE X. MISCELLANEOUS.................................................................................59
10.1 Press Releases and Announcements...................................................59
10.2 Expenses...........................................................................60
10.3 Amendment and Waiver...............................................................60
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10.4 Notices............................................................................60
10.5 Assignment.........................................................................61
10.6 Severability.......................................................................61
10.7 Complete Agreement.................................................................61
10.8 Counterparts.......................................................................61
10.9 Governing Law......................................................................61
List of Schedules and Exhibits
Schedule A-1 - Fluoroware Shareholder List Schedule A-2 - Empak Shareholder List
Exhibit A - Shareholder Agreement Exhibit B - Legal Opinion - Empak's Legal Counsel Exhibit C - Legal Opinion - Fluoroware's Legal Counsel
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CONSOLIDATION AGREEMENT
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This Consolidation Agreement, dated as June 1, 1999, is made and entered into by and among ENTEGRIS, INC., a Minnesota corporation (the "Company"), FLUOROWARE, INC., a Minnesota corporation ("Fluoroware"), and EMPAK, INC., a Minnesota corporation ("Empak").
WHEREAS, the persons listed on schedule A-1 to this agreement (the "Fluoroware Shareholders") are the record and beneficial owners of all of the outstanding shares of capital stock of Fluoroware; and
WHEREAS, the persons listed on schedule A-2 to this agreement (the "Empak Shareholders") are the record and beneficial owners of all of the outstanding shares of capital stock of Empak; and
WHEREAS, the Company is a newly-organized corporation which has been established for the purposes of facilitating the consolidation of the business operations of Fluoroware and Empak; and
WHEREAS, Fluoroware Shareholders and the Empak Shareholders (collectively, the "Shareholders") intend to transfer their respective equity interests in Fluoroware and Empak to the Company, on the terms and subject to the conditions set forth in this agreement, in exchange for all of the outstanding shares of the Company's common stock (the "Exchange") so that the Shareholders will be in "control" of the Company immediately after the Exchange; and
WHEREAS, the Board of Directors of each of Fluoroware and Empak has determined that it is advisable and in the respective best interests of Fluoroware and Empak and their shareholders that the Exchange take place on the terms set forth in this agreement; and
WHEREAS, for federal income tax purposes, it is intended that the Exchange qualify as a tax-free transfer of property by the Shareholders under the provisions of section 351 of the United States Internal Revenue Code of 1986, as amended (the "Code"); and
WHEREAS, for accounting purposes, it is intended by Fluoroware and Empak that the Exchange be accounted for as a "pooling of interests."
NOW, THEREFORE, in consideration of the premises, the respective representations, warranties, covenants and commitments of the parties set forth in this agreement and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Empak, Fluoroware and the Company agree as follows:
ARTICLE I
ORGANIZATION MATTERS
1.1 Formation of the Company. Each of Empak and Fluoroware acknowledges that the Company was incorporated as