Item 1.01 Entry into a Material Definitive Agreement.
Agreement and Plan of Merger
On
The board of directors of the Company (the "Company Board") delegated to a special committee (the "Special Committee") the responsibility and authority to review, evaluate, negotiate and recommend or not recommend to the Company Board a potential strategic transaction involving the Company. The Special Committee recommended to the Company Board the approval, execution, delivery and performance by the Company of the Merger Agreement. The Company Board, acting on the recommendation of the Special Committee, approved the execution, delivery and performance by the Company of the Merger Agreement, approved the acquisition of the Company by Parent on the terms and subject to the conditions set forth in the Merger Agreement and resolved to recommend that the stockholders of the Company (other than Parent and its subsidiaries) tender their shares of Common Stock to Merger Sub pursuant to the Offer. Under the Merger Agreement, Merger Sub is required to commence the Offer as promptly as reasonably practicable.
Merger Sub's obligation to accept shares of Common Stock tendered in the Offer
is subject to customary closing conditions, including: (a) that the number of
shares of Common Stock validly tendered and not validly withdrawn represent at
least a majority of the shares of Common Stock then outstanding that are not
shares held by Parent, any of its Subsidiaries, any directors or executive
officers of Parent or by certain members of management of the Company who have
entered into employment agreements with Parent; (b) the absence of any order of
a governmental authority having jurisdiction over any party, applicable law or
other legal restraint, injunction or prohibition which has the effect of
prohibiting the consummation of the Offer or making the Offer or the Merger
illegal or that requires any sale, divestiture, license or other disposition by
Parent or Merger Sub of any assets, properties or businesses; (c) the absence,
since the date of the Merger Agreement, of any material adverse effect on the
business, assets, financial condition or results of operations of the Company
and its subsidiaries, taken as a whole; (d) compliance by the Company with its
covenants under the Merger Agreement; (e) the accuracy of representations and
warranties made by the Company in the Merger Agreement; (f) the Termination
Agreement (as defined below) remaining in full force and effect and the Company
having taken no steps to terminate the Termination Agreement; (g) if required,
the approval of the
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Pursuant to the terms of the Merger Agreement, as of immediately prior to the
effective time of the Merger, by virtue of the Merger and without any action on
the part of the holders, (i) each share of Common Stock, other than any shares
owned by Parent, Merger Sub or the Company, or by any stockholders who are
entitled to and who properly exercise appraisal rights under
Item 1.02 Termination of a Material Definitive Agreement.
The information set forth under Item 1.01 regarding the Termination Agreement is hereby incorporated by reference into this Item 1.02.
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Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On
Under the terms of the amended and restated employment agreement with
Under the terms of the amended and restated employment agreement with
Under the terms of the amended and restated employment agreement with
Under their respective Employment Agreements, each of
Under each of the respective Employment Agreements, if such executive's
employment ends for any reason, the Company must pay to him his base salary
through the date of his termination, a prorated target bonus with respect to the
year employment ends (or, if no target has been set, the target bonus for the
prior year, with this prorated target bonus not payable on terminations for
Cause (as defined in the Employment Agreements) or resignations without Good
Reason (as defined in the Employment Agreements) after
If Messrs. Mullen, Worman, or DeSena is terminated without Cause, resigns for
Good Reason, leaves employment as a result of Disability (as each of those terms
is defined in the Employment Agreements) or dies, he or his estate will also,
contingent upon the execution and delivery of a release of claims, receive a
lump sum severance payment equal to the sum of his base salary and the target
bonus for the current year (or prior year if no target has been set) (with the
payment to
The foregoing description of each of the Employment Agreements does not purport to be complete and is qualified in its entirety by reference to the full text of each of the Employment Agreements, copies of which are filed as Exhibit 10.2, Exhibit 10.3 and Exhibit 10.4 hereto and are incorporated herein by reference.
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Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.
On
The foregoing description of the By-law Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the By-law Amendment, which is filed as Exhibit 3.1 hereto and is incorporated herein by reference.
Item 8.01 Other Events. Press Release
On
Forward-Looking Statements
Statements in this Current Report on Form 8-K regarding the business of Parent
or the Company that are not descriptions of historical facts are
"forward-looking statements" that are based on Parent's and the Company's
management's current expectations and assumptions and are subject to risks and
uncertainties. If such risks or uncertainties materialize or such assumptions
prove incorrect, the business, operating results, financial condition and stock
price of Parent or the Company could be materially negatively affected. You
should not place undue reliance on such forward-looking statements, which are
based on the information currently available to us and speak only as of the date
of this Current Report on Form 8-K. Such forward looking statements include, but
are not limited to, risks related to the satisfaction or waiver of the
conditions to closing the proposed acquisition in the anticipated timeframe or
at all, including uncertainties as to how many of the Company's stockholders
will tender their shares in the tender offer and the possibility that the
acquisition does not close; disruption from the transaction making it more
difficult to maintain business and operational relationships; risks that
anticipated synergies will not be realized or may be delayed; the magnitude of
transaction costs; statements regarding Parent's and the Company's anticipated
results of operations for 2021, as well as statements regarding Parent's and the
Company's excitement and the expected growth of Parent's business segments.
Factors that could cause such actual results to differ materially from those
contemplated or implied by such forward-looking statements include, without
limitation, the risks associated with the unpredictable and ongoing impact of
the COVID-19 pandemic, and the other risks described from time to time in
Parent's periodic filings with the
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No Offer or Solicitation
The tender offer referred to in this Current Report on Form 8-K has not yet
commenced. The description contained in this Current Report on Form 8-K is
neither an offer to purchase nor a solicitation of an offer to sell any
securities, nor is it a substitute for the tender offer materials that Parent
and the Company will file with the
In addition to the offer to purchase, the related letter of transmittal and
certain other tender offer documents to be filed by Parent, as well as the
solicitation/recommendation statement to be filed by the Company, Parent and the
Company will also file quarterly and current reports with the
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The Exhibits to this Current Report on Form 8-K are listed in the Exhibit Index below.
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