Exhibit 2.2
AMENDMENT
NO. 1 TO
PURCHASE
AND SALE AGREEMENT
This Amendment No. 1 to Purchase and Sale Agreement
(this Amendment) is dated as of April 11, 2006, by and among Avago
Technologies Limited, a company organized under the laws of Singapore (Seller
Parent), Avago Technologies Imaging Holding (Labuan) Corporation, a company
organized under the laws of Labuan (Seller), Marvell Technology Group
Ltd., a Bermuda corporation (Purchaser Parent), and Marvell
International Technology Ltd., a Bermuda corporation (Purchaser)
(each, a Party and collectively, the Parties).
W I T
N E S S E T H:
WHEREAS, the
Parties have previously entered into a Purchase and Sale Agreement dated as of
February 17, 2006 (the Signing Date and such Purchase and Sale Agreement
being hereinafter referred to as the Purchase Agreement);
WHEREAS, the
Purchase Agreement provides that the parties thereto may amend such agreement
at any time by written agreement of each party thereto;
WHEREAS,
capitalized terms not defined in this Amendment have the respective meanings
ascribed to such terms in the Purchase
Agreement;
WHEREAS, Section
8.1 of the Purchase Agreement provides that the Closing shall take place on the
second Business Day immediately following the satisfaction or, to the extent
permitted, waiver of all of the conditions in Article VII (other than those
conditions which by their nature are to be satisfied or, to the extent
permitted, waived at the Closing but subject to the satisfaction or, to the
extent permitted, waiver of such conditions), or at such other time, date and
place as shall be fixed by the mutual agreement of the Parties; and
WHEREAS,
the Parties desire that the Closing occur on May 1, 2006, or as soon thereafter
as reasonably practicable.
NOW, THEREFORE,
in consideration of the mutual covenants herein contained and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, agree as follows:
1.1 Section
7.1(b)
Section 7.1(b) of the
Purchase Agreement is hereby amended and restated in its entirety to read Reserved.
1.2 Section
7.3(a)
Section 7.3(a) of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
Accuracy
of Representations and Warranties of Seller and the Other Sellers. The
representations and warranties of Seller Parent, Seller and the Other Sellers
contained in this Agreement and the other Transaction Documents (i) that are
qualified as to Seller Material Adverse Effect shall be true and correct on
the date of this
Agreement and on the Closing Date as though made on the Closing Date (except
(y) to the extent such representations and warranties by their terms speak as
of an earlier date, in which case they shall be true and correct as of such
date and (z) for those representations and warranties set forth in Sections 4.5
through 4.8, Sections 4.10 through 4.23 and Section 4.26, which shall be true
and correct on the date of this Agreement and on April 4, 2006 as though made
on April 4, 2006); and (ii) that are not qualified as to Seller Material
Adverse Effect shall be true and correct on the date of this Agreement and on
the Closing Date as though made on the Closing Date (except (y) to the extent
such representations and warranties by their terms speak as of an earlier date,
in which case they shall be true and correct as of such date and (z) for those
representations and warranties set forth in Sections 4.5 through 4.8, Sections
4.10 through 4.23 and Section 4.26, which shall be true and correct on the date
of this Agreement and on April 4, 2006 as though made on April 4, 2006), except
for such failures to be true and correct which would not, individually or in
the aggregate, have a Seller Material Adverse Effect; and Purchaser shall have
received a certificate signed by an authorized officer of Seller Parent, Seller
and the Other Sellers to such effect.
1.3 Covenants
Purchaser hereby agrees,
including for purposes of the last sentence of Section 4.27 of the Purchase
Agreement, that, to Purchasers Knowledge, Seller, Parent Seller and the Other
Sellers have been in material compliance through April 4, 2006 with the
covenants contained in the Purchase Agreement. Accordingly, notwithstanding
Section 4.27 of the Purchase Agreement, Purchaser shall not be entitled to
assert a failure of the Closing condition contained in Section 7.3(b) of the
Purchase Agreement to the extent Purchaser had Knowledge of Sellers, Parent
Sellers or the Other Sellers failure to be in material compliance through
April 4, 2006 with any covenant contained in the Purchase Agreement.
1.4 Section
7.3(e)
Section 7.3(e) of the Purchase Agreement is hereby
amended and restated in its entirety to read Reserved.
1.5 Section
7.3(f)
Section 7.3(f) of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
No
Seller Material Adverse Effect. Between the date of this Agreement and April
4, 2006, there shall have been no event, condition, change or development,
worsening of any existing event, condition, change or development (except as
relates to Excluded Assets, the failure to transfer to Purchaser the Excluded
Assets or any failure to obtain a consent with respect to CAD Licenses to the
extent provided in Section 6.18 hereto) that, individually or in combination
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with any other event,
condition, change, development or worsening thereof, has had or would
reasonably be expected to have a Seller Material Adverse Effect.
1.6 Section
8.1
Section 8.1 of the Purchase Agreement is hereby
amended and restated in its entirety to read as follows:
Unless this
Agreement shall have been terminated pursuant to Article X hereof, the closing
of the sale and transfer of the Purchased Assets and the other transactions
hereunder (the Closing) shall take place at the offices of Latham
& Watkins LLP, 135 Commonwealth Drive, Menlo Park, CA 94025 at
7:00 a.m., local time, and in such other places as are necessary to effect
the transactions to be consummated at the Closing, on May 1, 2006 (such date of
the Closing being herein referred to as the Closing Date), subject to
the satisfaction or, to the extent permitted, waiver of all of the conditions
in Article VII (other than those conditions which by their nature are to be
satisfied or, to the extent permitted, waived at the Closing but subject to the
satisfaction or, to the extent permitted, waiver of such conditions), or if
such satisfaction or waiver has not occurred, the second Business Day
immediately following such satisfaction or, to the extent permitted, waiver.
The effective time (Effective Time) of the Closing for tax,
operational and all other matters shall be deemed to be 12:01 a.m., local time
in each jurisdiction in which the Business is conducted, on the Closing Date. No
later than April 24, 2006 (the Notice Delivery Date), each party shall
deliver to the other a written notice (a Closing Notice) identifying
any circumstances of which it has Knowledge that would reasonably be expected
to cause any of the conditions in Article VII to not be satisfied as of the
Notice Delivery Date (other than those conditions which by their nature are to
be satisfied at the Closing) (it being understood that a party shall not be
entitled to refuse to consummate the transactions contemplated by this
Agreement for failure of any condition in Article VII to be satisfied to the
extent such refusal is based on any circumstance of which such party had Knowledge
on the Notice Delivery Date if such circumstance would reasonably have been
expected to cause any of the conditions in Article VII to not be satisfied as
of the Notice Delivery Date (other than those conditions which by their nature
are to be satisfied at the Closing) and if such party did not describe such
circumstance in reasonable detail in such partys Closing Notice).
1.7 Section
10.1(b)
Section 10.1(b) of the Purchase Agreement is hereby
amended by substituting May 31, 2006 for April 18, 2006.
1.8 Section
4.5(b)
Clause (iv) of the first sentence of Section 4.5(b) of
the Purchase Agreement is hereby amended and restated in its entirety to read
as follows:
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(iv)
a subleasehold interest pursuant to the form of sublease attached hereto as Exhibit
J (the Sublease) in certain real property located at 4238 SW
Research Way, Corvallis, OR 97333 pursuant to that certain Lease Agreement
dated April 21, 2000 by and between Owyhee River LLC, as landlord, and Angel,
as predecessor in interest to U.S. R&D, as tenant (the Corvallis Lease).
1.9 Elective
FTO; Malaysia Pay In Lieu of Notice; China Severance
(a) Notwithstanding
the provisions of Section 6.6(g) of the Purchase Agreement, to the extent
Seller pays (whether by way of direct payment, reimbursement, adjustment to
working capital or otherwise) Angel (in an amount not to exceed $250,000) or,
at the direction of Purchaser, any Transferred Employee the amount of any
accrued but unused vacation time (including flexible time off and sick leave,
the FTO Liabilities) for Transferred Employees in Malaysia, California
or elsewhere, as to which indemnification by the Purchaser is not required
under Section 6.6(g) of the Purchase Agreement, together with any employment
taxes payable to a Governmental Authority by Seller or Angel that are related
thereto (the Employment Taxes), then Purchaser shall reimburse Seller
the amount of such FTO Liabilities and Employment Taxes in cash within thirty
(30) days of Purchasers receipt of Sellers written notice of the payment
thereof.
(b) Notwithstanding
anything in the Purchase Agreement to the contrary, Purchaser agrees to
indemnify, defend and hold harmless each Seller Indemnified Party from and
against, and shall compensate and reimburse each Seller Indemnified Party for,
all Losses imposed upon or incurred by such Seller Indemnified Party with
respect to any claims for pay in lieu of notice (whether based on a contractual
claim or applicable Law) made by or on behalf of any Transferred Employee in
Malaysia that arise out of the termination
of such Transferred Employee in connection with the transactions contemplated
by the Purchase Agreement.
(c) Notwithstanding
anything in the Purchase Agreement to the contrary, Purchaser agrees to
indemnify, defend and hold harmless each Seller Indemnified Party from and
against, and shall compensate and reimburse each Seller Indemnified Party for,
one-half of all Losses imposed upon or incurred by such Seller Indemnified
Party with respect to any claims that may
arise as a result of, or are in any way related to, the termination of the
employment relationship between the Business Employees in the Peoples Republic
of China and Seller, including, but
not limited to, any claims for severance, claims for wrongful termination, or
claims for insufficient notice or payment in lieu of notice, but only to
the extent such Losses do not arise from the gross negligence or willful
misconduct of such Seller Indemnified Party. Seller Parent, Seller and the
Other Sellers represent and warrant to Purchaser that, to Sellers knowledge,
neither Seller nor any Seller Party has any Liabilities relating to or arising
out of the termination of the employment
relationship between the Business Employees in the Peoples Republic of China
and Seller.
1.10 New
Exhibit J
The Purchase Agreement is hereby amended by adding as Exhibit
J thereto the form of Sublease attached hereto as Attachment 1.
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1.11 Delayed
Closing; Transition Issues
(a) The
Parties acknowledge and agree that notwithstanding the provisions of the
Purchase Agreement, including without limitation Sections 2.1, 6.6 and 6.7, the
consummation of the transfer and conveyance to Purchasers Affiliate in Malaysia
of the Purchased Assets located in Malaysia and the employment by Purchaser or
one or more of its Affiliates of Transferred Employees in Penang, Malaysia (such
consummation, the Delayed Closing) will not occur on the Closing Date
and will instead be consummated as soon as practicable thereafter and no later
than the six-month anniversary of the Closing Date, and no breach or default of
the Purchase Agreement will be deemed to have occurred as a result of not
transferring such assets or employing such Transferred Employees at the Closing.
The Parties will enter into, or will
cause their respective applicable Subsidiaries to enter into, on or prior to
the Closing, the following agreements on terms and conditions mutually
acceptable to each of the Parties, in addition to such other agreements or
other instruments as the parties may agree: (i) an amendment to the Master
Separation Agreement providing for the provision of services by Seller Parents
Subsidiaries to Purchaser in Penang, Malaysia (such services (y) to include,
without limitation, the sorting, assembly and testing of all semiconductor
wafers supplied by Purchaser and drop shipping to Purchasers customers or
warehouse, and the dedication of the Business Employees in Malaysia as set
forth in such amendment, and (z) to be billed monthly in advance at Sellers
fully loaded cost, without proration of fixed costs for either (1) the
provision of services for less than a full month or (2) for a reduction in the
usage of services by Purchaser compared to the usage set forth in Annex A to
the Master Separation Agreement, as in effect on the Closing Date); and (ii) with
respect to the Purchased Assets in Malaysia, Local Asset Transfer Agreements
providing for the transfer of the Purchased Assets in Malaysia (it being
understood that the transfer of such assets may take place in stages, and that
the Parties will enter into one or more Local Asset Transfer Agreements, as
required by local law, to effectuate the transfer of title in such Purchased Assets
on the schedule to be mutually agreed upon by the Parties, but in any event no
later than the six-month anniversary of the Closing Date). To the extent
permitted by Law and to the extent not recovered by Seller or one of its
Affiliates under the Master Separation Agreement, as such agreement may be
amended from time to time, or any Separation Agreements entered into in
connection therewith, Purchaser (a) shall assume the Assumed Liabilities with
respect to Malaysia as of the Closing Date, and (b) to the extent any such
Assumed Liabilities are not assumed as of such Closing Date, shall indemnify
each Seller Indemnified Party with respect thereto pursuant to Section
9.1(b)(iii) of the Purchase Agreement. After the Closing, there will be no
conditions to closing with respect to the Delayed Closing.
(b) The
Parties further acknowledge and agree that, notwithstanding the provisions of
the Purchase Agreement, including without limitation Section 2.3(b), Seller
Parent shall cause its Subsidiaries to provide reasonable access to their
respective facilities to Purchaser and its Affiliates for purposes of ensuring
that the transfer of the Purchased Assets can be accomplished as expeditiously
as possible and without unreasonable disruption to the operation of the
Business from and after the Closing.
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In connection therewith:
(i) with respect to the
Shanghai facility, the Parties shall cooperate with one another to have
executed as soon as possible by the landlord under the China Lease and by the
Chinese Affiliate of Purchaser a new lease identical to the China Lease (but
for the term thereof, which shall be solely for the remaining term of the China
Lease) in order to permit such Affiliate to obtain the Consent of the relevant
Governmental Authority to operate a branch office for the Business on the
premises covered by the China Lease;
(ii) with respect to the
Boise facility, Seller shall cause U.S. R&D to promptly execute the Fourth
Amendment to the Boise Lease in the form attached hereto as Attachment 2 (the Fourth
Amendment) and shall cause U.S. R&D to use commercially reasonable
efforts to cause Owyhee River LLC (the Boise Lessor) to promptly execute the
Fourth Amendment. In connection with the execution of the Fourth Amendment, (y)
Seller shall cause U.S. R&D to use commercially reasonable efforts to cause
the Boise Lessor to undertake and diligently prosecute to completion the
capital improvements as contemplated by the Fourth Amendment to be made to the Boise
facility (the Capital Improvements), and (z) Purchaser Parent and
Purchaser confirm they have reviewed, consented to and approved U.S. R&Ds
execution of the Fourth Amendment and that all expenses Seller or any Seller
Subsidiaries incur in connection with the Capital Improvements to the extent
that such expenses are not reimbursed as a component of the Suite 125 Work (as
defined in the Fourth Amendment) covered by the Tenant Allowance (as defined in
the Fourth Amendment) from the date hereof through the Closing shall be for the
account of the Purchaser and shall be reimbursed to Seller on the Closing Date
(or, to the extent such expenses have not been invoiced as of the Closing Date,
no later than 30 days after the receipt by Purchaser of such invoice);
(iii) with respect to the
Corvallis facility, the Parties shall enter into a letter agreement in the form
attached here to as Attachment 3 which provides for certain rights and
obligations with regard to the installation of certain information technology
equipment as more particularly set forth therein (it being understood that: (x)
no failure of either Party to perform its obligations thereunder shall give
rise to a right of the other Party to delay the Closing; (y) Purchaser Parent
hereby indemnifies, defends and holds harmless each Seller Indemnified Party
from and against, and shall compensate and reimburse each Seller Indemnified
Party for, all Losses imposed upon or incurred by such Seller Indemnified Party
as a result of any claim arising from or otherwise related to the performance
by Purchaser and its Affiliates of their respective obligations under such
letter agreement; and (z) no work contemplated by such letter agreement may be
commenced without the lessors prior written consent, if required (which U.S.
R&D shall use commercially reasonable efforts to obtain as promptly as
practicable));
(iv) with respect to each
of the Boise facility and the Corvallis facility, Seller shall, and shall cause
the Seller Subsidiaries to, permit Purchaser or its agents access to the Boise
facility and the Corvallis facility from the date hereof to the Closing Date
for the purposes of connecting Purchasers networks and systems to the existing
cabling and wiring; and
(v) Purchaser Parent hereby indemnifies, defends
and holds harmless each Seller Indemnified Party from and against, and shall
compensate and reimburse each Seller Indemnified Party for, all Losses imposed
upon or incurred by such Seller Indemnified Party as a
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result of any claim arising from or otherwise related
to the access to the facilities of Seller Parent and its Subsidiaries afforded
to Purchaser and its Affiliates under this clause Section 1.11(b).
1.12 HP
License Agreement
At the Closing, Purchaser Parent shall execute and
deliver to Seller Parent the license agreement attached hereto as Attachment 4
and shall pay to Seller Parent $2,750,000, which amount Seller Parent shall
promptly remit to The Hewlett-Packard Company.
1.13 Insurance
Proceeds
From and after April 4, 2006, upon acquiring knowledge
of any damage (other than immaterial damage), destruction or loss to, or
condemnation of, any material Purchased Asset or any facility located at the
Assigned Real Property or the Subleased Real Property, Seller agrees, or shall cause its Affiliates, to (a)
promptly notify Purchaser, (b) make all available claims against insurance
policies covering such Purchased Asset or facility (the Pre-Closing
Insurance Claims) and (c) consult with Purchaser as to the application of
any and all insurance proceeds with respect thereto to repair, replace or
restore such Purchased Asset or facility. Any and all proceeds received by
Seller Parent, Seller or any Seller Party in connection with the Pre-Closing
Insurance Claims (other than such proceeds used to replace the damaged or
destroyed Purchased Assets or facilities in accordance with clause (c) of the
immediately preceding sentence) shall be Purchased Assets, notwithstanding
anything to the contrary contained in Exhibit F to the Purchase Agreement.
1.14 Miscellaneous
(a) Except
as specifically provided for in this Amendment, the terms of the Purchase
Agreement shall be unmodified and shall remain in full force and effect.
(b) This
Amendment may be executed in counterparts, each of which shall be deemed to be
an original and both of which together shall be deemed to be one and the same
instrument. Copies of executed counterparts transmitted by telecopy, telefax or
other electronic transmission service shall be considered original executed
counterparts for purposes of this Amendment.
(c) This
Amendment shall be binding upon and shall inure to the benefit of the Parties
and their respective successors and permitted assigns, except that neither this
Amendment nor any rights or obligations hereunder shall be assigned or
delegated by either Party; provided, however, Purchaser may assign any or all
of its rights and obligations under this Amendment to any wholly-owned (other
than director qualifying shares) direct or indirect Subsidiary of Purchaser
(provided that no such assignment shall release Purchaser from any obligation
under this Amendment) or to a lender of Purchaser as collateral for bona fide
indebtedness for money borrowed in connection with a merger, consolidation, conversion
or sale of assets of Purchaser. This Amendment is not intended to confer upon
any person or entity other than the Parties and their permitted assigns any
rights or remedies.
(d) This
Amendment may be amended only by a written instrument signed by each of the
Parties. No provision of this Amendment may be extended or waived orally, but
only by a
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written instrument signed by the Party against whom
enforcement of such extension or waiver is sought. All notices and other
communications provided for herein shall be dated and in writing.
(e) Any
indemnification required under this Amendment shall be subject to Sections 9.3
and 9.4 of the Purchase Agreement.
(f) This
Amendment and all claims arising out of this Amendment shall be governed by,
and construed in accordance with, the Laws of the State of California, without
regard to any conflicts of law principles that would result in the application
of any law other than the law of the State of California.
[SIGNATURE PAGES FOLLOW]
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IN WITNESS WHEREOF,
the Parties have caused this Amendment No. 1 to Purchase and Sale Agreement to
be duly executed as of the date first above written.
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AVAGO
TECHNOLOGIES LIMITED
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By:
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/s/
James H. Greene
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Name:
James H. Greene, Jr.
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Title:
Director
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AVAGO TECHNOLOGIES IMAGING
HOLDING (LABUAN) CORPORATION
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By:
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/s/
Rex Jackson
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Name:
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Rex
Jackson
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Title:
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Director
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MARVELL TECHNOLOGY GROUP LTD.
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By:
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/s/
Tom Crickett
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Name:
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Tom
Crickett
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Title:
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Asst.
General Manager
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MARVELL INTERNATIONAL
TECHNOLOGY LTD.
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By:
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/s/
Tom Crickett
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Name:
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Tom
Crickett
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Title:
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Alternate
Director
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[SIGNATURE PAGE TO PSA AMENDMENT NO. 1]
ATTACHMENT 1
EXHIBIT J
FORM OF SUBLEASE
(see attached)
ATTACHMENT 2
BOISE LEASE 4TH
AMENDMENT
(see attached)
ATTACHMENT 3
CORVALLIS LETTER
AGREEMENT
(see attached)
ATTACHMENT 4
HP LICENSE
AGREEMENT
(see attached)