sc13dza
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 5)*
ALLSCRIPTSMISYS HEALTHCARE SOLUTIONS, INC.
Common Stock, $0.01 Par Value
(Title of Class of Securities)
01988P108
Thomas E. Kilroy, Esq.
Misys plc
One Kingdom Street
Paddington
London W2 6BL
United Kingdom
44 (0)20 3320 5000
A. Peter Harwich, Esq.
Allen & Overy LLP
1221 Avenue of the Americas
New York, New York 10020
United States of America
(212) 610-6300
(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
August 20, 2010
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report the
acquisition that is the subject of this Schedule 13D, and is filing this schedule because of
Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box o.
Note: Schedules filed in paper format shall include a signed original and five copies of the
schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.
* The remainder of this cover page shall be filled out for a reporting persons initial filing on
this form with respect to the subject class of securities, and for any subsequent amendment
containing information which would alter dis-closures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be filed for
the purposes of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to
the liabilities of that section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).
|
|
|
|
|
|
1 |
|
NAME OF REPORTING PERSON
MISYS PLC I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a |
|
|
|
|
|
|
2 |
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
|
|
(a) o |
|
(b) o |
|
|
|
3 |
|
SEC USE ONLY |
|
|
|
|
|
|
|
4 |
|
SOURCE OF FUNDS (SEE INSTRUCTIONS) |
|
|
|
OO |
|
|
|
5 |
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
|
|
|
o |
|
|
|
6 |
|
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
United Kingdom
|
|
|
|
|
|
7 |
|
SOLE VOTING POWER |
|
|
|
NUMBER OF |
|
|
|
|
|
|
SHARES |
8 |
|
SHARED VOTING POWER |
BENEFICIALLY |
|
|
OWNED BY |
|
28,369,428 |
|
|
|
|
EACH |
9 |
|
SOLE DISPOSITIVE POWER |
REPORTING |
|
|
PERSON |
|
|
|
|
|
|
WITH |
10 |
|
SHARED DISPOSITIVE POWER |
|
|
|
|
|
28,369,428 |
|
|
|
11 |
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
28,369,428 |
|
|
|
12 |
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
|
|
|
o
|
|
|
|
13 |
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
23.2 |
|
|
|
14 |
|
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
|
|
|
CO |
2
|
|
|
|
|
|
1 |
|
NAME OF REPORTING PERSON
KAPITI LIMITED I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a |
|
|
|
|
|
|
2 |
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
|
|
(a) o |
|
(b) o |
|
|
|
3 |
|
SEC USE ONLY |
|
|
|
|
|
|
|
4 |
|
SOURCE OF FUNDS (SEE INSTRUCTIONS) |
|
|
|
OO |
|
|
|
5 |
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
|
|
|
o |
|
|
|
6 |
|
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
United Kingdom
|
|
|
|
|
|
7 |
|
SOLE VOTING POWER |
|
|
|
NUMBER OF |
|
|
|
|
|
|
SHARES |
8 |
|
SHARED VOTING POWER |
BENEFICIALLY |
|
|
OWNED BY |
|
283,694 |
|
|
|
|
EACH |
9 |
|
SOLE DISPOSITIVE POWER |
REPORTING |
|
|
PERSON |
|
|
|
|
|
|
WITH |
10 |
|
SHARED DISPOSITIVE POWER |
|
|
|
|
|
283,694 |
|
|
|
11 |
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
283,694 |
|
|
|
12 |
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
|
|
|
o
|
|
|
|
13 |
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
0.2 |
|
|
|
14 |
|
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
|
|
|
OO |
3
|
|
|
|
|
|
1 |
|
NAME OF REPORTING PERSON
ACT SIGMEX LIMITED I.R.S. IDENTIFICATION NO. OF ABOVE PERSON n/a |
|
|
|
|
|
|
2 |
|
CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
|
|
(a) o |
|
(b) o |
|
|
|
3 |
|
SEC USE ONLY |
|
|
|
|
|
|
|
4 |
|
SOURCE OF FUNDS (SEE INSTRUCTIONS) |
|
|
|
OO |
|
|
|
5 |
|
CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e) |
|
|
|
o |
|
|
|
6 |
|
CITIZENSHIP OR PLACE OF ORGANIZATION |
|
|
|
United Kingdom
|
|
|
|
|
|
7 |
|
SOLE VOTING POWER |
|
|
|
NUMBER OF |
|
|
|
|
|
|
SHARES |
8 |
|
SHARED VOTING POWER |
BENEFICIALLY |
|
|
OWNED BY |
|
28,085,734 |
|
|
|
|
EACH |
9 |
|
SOLE DISPOSITIVE POWER |
REPORTING |
|
|
PERSON |
|
|
|
|
|
|
WITH |
10 |
|
SHARED DISPOSITIVE POWER |
|
|
|
|
|
28,085,734 |
|
|
|
11 |
|
AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
|
|
|
28,085,734 |
|
|
|
12 |
|
CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS) |
|
|
|
o
|
|
|
|
13 |
|
PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11) |
|
|
|
22.9 |
|
|
|
14 |
|
TYPE OF REPORTING PERSON (SEE INSTRUCTIONS) |
|
|
|
OO |
4
INTRODUCTORY STATEMENT
This Amendment No. 5 (this Amendment) amends the Schedule 13D initially filed on
October 20, 2008 (the Original Filing), as amended by Amendment No. 1 filed on February
11, 2009 (the First Amendment), Amendment No. 2 filed on February 26, 2010 (the
Second Amendment), Amendment No. 3 filed on June 10, 2010 (the Third Amendment)
and Amendment No. 4 filed on July 27, 2010 (the Fourth Amendment), each relating to the
common stock, par value $0.01, of Allscripts-Misys Healthcare Solutions, Inc. (the
Company). Information reported in the Original Filing, as amended or superseded by
information contained in the First Amendment, the Second Amendment, the Third Amendment or the
Fourth Amendment remains in effect except to the extent that it is amended or superseded by
information contained in this Amendment.
ITEM 2. IDENTITY AND BACKGROUND
The disclosure in Item 2 of this Schedule 13D is hereby amended and restated in its entirety
by this Amendment:
Reporting Person: Misys plc (Misys)
The place of organization of Misys is the United Kingdom. The principal business of Misys is
providing software to clients in the international banking and healthcare industries. The principal
office of Misys is One Kingdom Street, Paddington, London W2 6BL, UK.
During the last five years, Misys has not been either (i) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of such proceeding was or
is subject to a judgment, decree or final order enjoining future violations of, or prohibiting
activities subject to, federal or state securities laws or finding any violation of such laws.
Reporting Person: Kapiti Limited (Kapiti)
The place of organization of Kapiti is United Kingdom. Kapiti is a limited company
incorporated in England and Wales that holds a portion of Misys interest in the Company. The
registered address of Kapiti is One Kingdom Street, Paddington, London W2 6BL, UK. Kapiti is
indirectly wholly owned by Misys.
During the last five years, Kapiti has not been either (i) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of such proceeding was or
is subject to a judgment, decree or final order enjoining future violations of, or prohibiting
activities subject to, federal or state securities laws or finding any violation of such laws.
Reporting Person: ACT Sigmex Limited (ACTS)
The place of organization of ACTS is the United Kingdom. ACTS is a limited company
incorporated in England and Wales that holds a portion of Misys interest in the Company. The
registered office of ACTS is One Kingdom Street, Paddington, London W2 6BL, UK. ACTS is indirectly
wholly owned by Misys.
During the last five years, ACTS has not been either (i) convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors) or (ii) a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of such proceeding was or
is subject to a judgment, decree or final order enjoining future violations of, or prohibiting
activities subject to, federal or state securities laws or finding any violation of such laws.
Misys, Kapiti and ACTS have entered into a joint filing agreement, dated as of August 20, 2010
(the Joint Filing Agreement), a copy of which is attached as Exhibit 99.18 to this
Amendment, and incorporated by reference herein.
ITEM 4. PURPOSE OF TRANSACTION
The disclosure in Item 4 of this Schedule 13D is hereby amended and supplemented by adding the
following statement after the final paragraph thereof:
In accordance with the Framework Agreement, on August 20, 2010, concurrently with the closing
of the transactions described in Item 5 below, Kelly J. Barlow, Sir Dominic Cadbury, Corey A. Eaves
and J. Michael Lawrie, each of whom was nominated by Misys, resigned from the board of directors of
the Company with immediate effect. The remaining Misys nominees to the board of directors of the
Company are John King and Stephen Wilson.
5
As described in Item 6 below, Kapiti and ACTS have agreed pursuant to the Underwriting
Agreement (defined below) not to sell any shares of Company common stock (subject to certain
exceptions) for up to 90 days from the date of the Underwriting Agreement without the prior written
consent of Credit Suisse Securities (USA) LLC, Barclays Capital Inc., J.P. Morgan Securities Inc.
and UBS Securities LLC (the Underwriters).
As permitted under the Underwriting Agreement, Misys intends to exercise its right under the
Framework Agreement to require the Company to purchase 5,313,807 shares of Company common stock for
$19.12 per share promptly after the closing of the Merger (the Additional Repurchase).
After completion of the Additional Repurchase and settlement of the Over-Allotment Option (defined below), subsidiaries of Misys will hold an aggregate of
19,005,621 shares of Company common stock.
Pursuant to the Registration Rights Agreement, Misys has the right among other things to
require the Company to conduct registered secondary public offerings of shares of Company common
stock held by Misys and its affiliates (including Kapiti and ACTS). Misys intends to monitor its
investment in the Company on an ongoing basis and exercise its rights under the Registration Rights
Agreement as and when market conditions warrant once the above-referenced transfer restrictions
under the Underwriting Agreement expire or terminate.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
The disclosure in Item 5 of this Schedule 13D is hereby amended and supplemented by adding the
following statement after the final paragraph thereof:
On August 20, 2010, three wholly owned subsidiaries of Misys sold an aggregate of 51,442,083
shares of Company common stock in accordance with the Framework Agreement, as amended by the
Amendment Agreement. 27,000,000 shares were sold to the Underwriters in connection with an
underwritten public offering pursuant to the underwriting agreement, dated August 16, 2010, among
the Company, the Underwriters, Kapiti and ACTS (the Underwriting Agreement), a copy of
which is attached as Exhibit 99.19 to this Amendment. Pursuant to the Underwriting Agreement,
Kapiti and ACTS granted the Underwriters an option to purchase up to 4,050,000 shares of Company
common stock on or prior to September 16, 2010 (the
Over-Allotment Option).
On August 20, 2010, the Underwriters exercised the Over-Allotment Option in full, with settlement expected
to occur on August 25, 2010. Another 24,442,083 shares were sold to the Company
by Misys Patriot Limited, Kapiti and ACTS pursuant to the Framework Agreement. Concurrently with
the closing of these transactions, Misys and the Company entered into an Amended and Restated
Relationship Agreement in the form described in the Third Amendment (as amended pursuant to the
Amendment Agreement described in the Fourth Amendment, the Amended Relationship
Agreement). The Amended Relationship Agreement is attached as Exhibit 99.20 to this Amendment.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE
ISSUER
|
|
The disclosure in Item 6 of this Schedule 13D is hereby amended and supplemented as
follows: |
Following the closing of the transactions described in Item 5 above, subsidiaries of Misys hold an
aggregate of 28,369,428 shares of Company common stock. Following settlement of the Over-Allotment Option, subsidiaries of Misys will hold an aggregate of
24,319,428 shares of Company common stock. Misys, Kapiti and ACTS and certain directors and officers of Misys
have agreed with the Underwriters not to sell any shares of Company common stock for 90 days after
the date of the Underwriting Agreement, subject to certain exceptions, without the prior written
consent of the Underwriters.
As permitted under the Underwriting Agreement, Misys intends to exercise its right under the
Framework Agreement to require the Company to effect the Additional Repurchase promptly after the
closing of the Merger. After completion of the Additional Repurchase and settlement of the Over-Allotment Option, subsidiaries of Misys will
hold an aggregate of 19,005,621 shares of Company common stock.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS
Item 7 of the Original Filing is hereby amended to add the following:
|
|
|
Exhibit 99.18
|
|
Joint Filing Agreement, dated August 20, 2010, among Misys
plc, Kapiti Limited and ACT Sigmex Limited. |
|
|
|
Exhibit 99.19
|
|
Underwriting Agreement, dated August 16, 2010, among
Allscripts-Misys Healthcare Solutions, Inc., Kapiti Limited,
ACT Sigmex Limited, Credit Suisse Securities (USA) LLC,
Barclays Capital Inc., J.P. Morgan Securities Inc. and UBS
Securities LLC. |
|
|
|
Exhibit 99.20
|
|
Amended and Restated Relationship Agreement, dated as of
August 20, 2010, between Misys plc and Allscripts-Misys
Healthcare Solutions, Inc. |
6
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I certify that the
information set forth in this statement is true, complete and correct.
Date: August 20, 2010
|
|
|
|
|
|
|
|
|
MISYS PLC |
|
|
|
|
|
|
|
|
|
|
|
By:
Name:
|
|
/s/ Thomas E. Kilroy
Thomas E. Kilroy
|
|
|
|
|
Title:
|
|
Executive Vice President, General |
|
|
|
|
|
|
Counsel and Company Secretary |
|
|
|
|
|
|
|
|
|
|
|
KAPITI LIMITED |
|
|
|
|
|
|
|
|
|
|
|
By:
Name:
|
|
/s/ Nicholas Farrimond
Nicholas Farrimond
|
|
|
|
|
Title:
|
|
Authorized signatory |
|
|
|
|
|
|
|
|
|
|
|
ACT SIGMEX LIMITED |
|
|
|
|
|
|
|
|
|
|
|
By:
Name:
|
|
/s/ Nicholas Farrimond
Nicholas Farrimond
|
|
|
|
|
Title:
|
|
Authorized signatory |
|
|
INDEX OF EXHIBITS
|
|
|
Exhibit No. |
|
Description |
|
|
|
99.18
|
|
Joint Filing Agreement, dated August 20, 2010, among Misys
plc, Kapiti Limited and ACT Sigmex Limited. |
|
|
|
99.19
|
|
Underwriting Agreement, dated August 16, 2010, among
Allscripts-Misys Healthcare Solutions, Inc., Kapiti Limited,
ACT Sigmex Limited, Credit Suisse Securities (USA) LLC,
Barclays Capital Inc., J.P. Morgan Securities Inc. and UBS
Securities LLC. |
|
|
|
99.20
|
|
Amended and Restated Relationship Agreement, dated as of
August 20, 2010, between Misys plc and Allscripts-Misys
Healthcare Solutions, Inc. |
exv99w18
Exhibit 99.18
Joint Filing Agreement
Pursuant to Rule 13d-1(k)(1) promulgated under the Securities Exchange Act of 1934, as
amended, the undersigned agree that the Amendment No. 5 to the Statement on Schedule 13D, and all
subsequent amendments to which this exhibit is attached, is filed on behalf of each of them in the
capacities set forth below.
Date: August 20, 2010
|
|
|
|
|
|
MISYS PLC
|
|
|
By: |
/s/ Thomas E. Kilroy
|
|
|
Name: |
Thomas E. Kilroy |
|
|
Title: |
Executive Vice President, General Counsel and Company Secretary |
|
|
|
KAPITI LIMITED
|
|
|
By: |
/s/ Nicholas Farrimond
|
|
|
Name: |
Nicholas Farrimond |
|
|
Title: |
Authorized signatory |
|
|
|
ACT SIGMEX LIMITED
|
|
|
By: |
/s/ Nicholas Farrimond
|
|
|
Name: |
Nicholas Farrimond |
|
|
Title: |
Authorized signatory |
|
|
exv99w19
Exhibit 99.19
EXECUTION VERSION
27,000,000 Shares of Common Stock
Allscripts-Misys Healthcare Solutions, Inc.
UNDERWRITING AGREEMENT
August 16, 2010
Credit Suisse Securities (USA) LLC
Barclays Capital Inc.
J.P. Morgan Securities Inc.
UBS Securities LLC,
As Representatives of the Several Underwriters,
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue,
New York, NY 10010-3629
Dear Sirs:
1. Introductory. Each of the stockholders listed on Schedule A hereto (the Selling
Stockholders), each a direct or indirect wholly-owned subsidiary of Misys plc, a public limited
company formed under the laws of England and Wales (Misys), agrees severally with the several
Underwriters named in Schedule B hereto (the Underwriters) to sell to the several Underwriters an
aggregate of 27,000,000 outstanding shares (Firm Securities) of the common stock, par value $0.01
per share (Securities), of Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation
(the Company) and each of the Selling Stockholders also agrees to sell to the Underwriters, at
the option of the Underwriters, an aggregate of not more than 4,050,000 additional outstanding
shares (Optional Securities) of Securities as set forth below. The Firm Securities and the
Optional Securities are herein collectively called the Offered Securities.
As part of the transactions described under the heading The Eclipsys Merger in the Companys
preliminary prospectus supplement, dated August 16, 2010, following completion of the offering of
the Offered Securities and, subject to the satisfaction or waiver of certain conditions set forth
in the Framework Agreement, dated as of June 9, 2010, as amended on July 26, 2010 (as in existence
on the date hereof, the Framework Agreement), by and between the Company and Misys, and in the
Agreement and Plan of Merger, dated as of June
9, 2010 (as in existence on the date hereof, the Merger Agreement), by and among the Company,
Arsenal Merger Corp., a Delaware corporation and a direct wholly owned subsidiary of the Company
(Merger Sub, and together with the Company, the Allscripts Parties) and Eclipsys Corporation, a
Delaware corporation (Target), Merger Sub will merge with and into Target, with Target surviving
as a wholly owned subsidiary of the Company. After completion of the US Reorganization (as defined
in the Framework Agreement), the Selling Stockholders desire to transfer the Newco Shares (as
defined in the Framework Agreement) to the Company in exchange for 61,308,295 newly issued shares
of the Companys common stock (such newly issued shares, the Exchange Shares, and the transfer of
the Newco Shares to the Company in exchange for the Exchange Shares, the Arsenal Exchange). Upon
the terms and subject to the conditions of the Framework Agreement, the Company will, on the First
Closing Date (as defined below), repurchase 24,442,083 shares of the Companys common stock to be
received by the Selling Stockholders and Misys Patriot Limited, a limited company formed under the
Laws of England and Wales, in the Arsenal Exchange for an aggregate consideration of $577.4 million
(the Share Repurchase).
1
2. Representations and Warranties of the Company and the Selling Stockholders.
(a) The Company represents and warrants to, and agrees with, the several
Underwriters that:
(i) Filing and Effectiveness of Registration Statement; Certain Defined Terms.
The Company has filed with the Commission a registration statement on Form S-3 (No.
333-167412), including a related prospectus or prospectuses, covering the
registration of the Offered Securities under the Act, which has become effective.
Registration Statement at any particular time means such registration statement
in the form then filed with the Commission, including any amendment thereto, any
document incorporated by reference therein and all 430B Information and all 430C
Information with respect to such registration statement, that in any case has not
been superseded or modified. Registration Statement without reference to a time
means the Registration Statement as of the Applicable Time. For purposes of this
definition, 430B Information shall be considered to be included in the Registration
Statement as of the time specified in Rule 430B under the Act.
For purposes of this Agreement:
430B Information means information included in a prospectus then deemed to be a part of the
Registration Statement pursuant to Rule 430B(e) under the Act or retroactively deemed to be a part
of the Registration Statement pursuant to Rule 430B(f) under the Act.
430C Information means information included in a prospectus then deemed to be a part of the
Registration Statement pursuant to Rule 430C under the Act.
Act means the Securities Act of 1933, as amended.
Applicable Time means 6:00 p.m. (Eastern time) on the date of this Agreement.
Closing Date has the meaning defined in Section 3 hereof.
Commission means the Securities and Exchange Commission.
Exchange Act means the Securities Exchange Act of 1934, as amended.
Final Prospectus means the Statutory Prospectus that discloses the public offering price,
other 430B Information and other final terms of the Offered Securities and otherwise satisfies
Section 10(a) of the Act.
General Use Issuer Free Writing Prospectus means any Issuer Free Writing Prospectus that is
intended for general distribution to prospective investors, as evidenced by its being so specified
in Schedule C to this Agreement.
2
Issuer Free Writing Prospectus means any issuer free writing prospectus, as defined in
Rule 433 under the Act, relating to the Offered Securities in the form filed or required to be
filed with the Commission or, if not required to be filed, in the form retained in the Companys
records pursuant to Rule 433(g) under the Act.
knowledge of the Company means the actual knowledge of Glen Tullman, Lee Shapiro, Bill Davis
or Brian Vandenberg, who, the Company represents, have engaged in and managed all material aspects
of the Companys diligence process and investigation of the Target, are the primary individuals at
the Company responsible for such acquisition and managing such diligence investigation and have had
access to all material information regarding Target that was made available to the Company.
Limited Use Issuer Free Writing Prospectus means any Issuer Free Writing Prospectus that is
not a General Use Issuer Free Writing Prospectus.
Merger Agreement Disclosures means the Target Disclosures and the Parent Disclosure Letter
to the Merger Agreement and the Parent SEC Documents (as defined in the Merger Agreement), all as
in effect on the date hereof.
Rules and Regulations means the rules and regulations of the Commission.
Securities Laws means, collectively, the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley), the
Act, the Exchange Act, the Rules and Regulations, the auditing principles, rules, standards and
practices applicable to auditors of issuers (as defined in Sarbanes-Oxley) promulgated or
approved by the Public Company Accounting Oversight Board and, as applicable, the rules of the
NASDAQ Stock Market (Exchange Rules).
Statutory Prospectus with reference to any particular time means the prospectus relating to
the Offered Securities that is included in the Registration Statement immediately prior to that
time, including all 430B Information and all 430C Information with respect to the Registration
Statement. For purposes of the foregoing definition, 430B Information shall be considered to be
included in the Statutory Prospectus only as of the actual time that form of prospectus (including
a prospectus supplement) is filed with the Commission pursuant to Rule 424(b) under the Act and not
retroactively.
Target Disclosures means the Company Disclosure Letter to the Merger Agreement and the
Company SEC Documents (as defined in the Merger Agreement) , all as in effect on the date hereof.
Unless otherwise specified, a reference to a rule is to the indicated rule under the Act.
(ii) Compliance with Securities Act Requirements. (i) (A) At the time the
Registration Statement initially became effective, (B) at the time of each
amendment thereto for the purposes of complying with Section 10(a)(3) of the Act
(whether by post-effective amendment, incorporated report or form of prospectus),
(C) at the Applicable Time and (D) on the Closing Date, the Registration Statement
conformed and will conform in all material respects to the requirements of the Act
and the Rules and Regulations and did not and will not include any untrue statement
of a material fact or omit to state any material fact required to be stated therein
or necessary to make the statements therein not misleading and (ii) (A) on its
date, (B) at the time of filing the Final Prospectus pursuant to Rule 424(b) under
the Act and (C) on the Closing Date, the
3
Final Prospectus will conform in all material respects to the requirements of the Act and
the Rules and Regulations, and will not include any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the
statements therein not misleading. The preceding sentence does not apply to statements in
or omissions from any such document based upon written information furnished to the
Company by any Underwriter through the Representatives specifically for use therein, it
being understood and agreed that the only such information is that specified in Section
8(c) hereof.
(iii) Automatic Shelf Registration Statement.
(1) Well-Known Seasoned Issuer Status. (A) At the time of initial filing of the
Registration Statement, (B) at the time of the most recent amendment thereto for the
purposes of complying with Section 10(a)(3) of the Act (whether such amendment was by
post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the
Exchange Act or form of prospectus), and (C) at the time the Company or any person acting
on its behalf (within the meaning, for this clause only, of Rule 163(c) under the Act)
made any offer relating to the Offered Securities in reliance on the exemption of Rule 163
under the Act, the Company was a well known seasoned issuer as defined in Rule 405 under
the Act, including not having been an ineligible issuer as defined in Rule 405 under the
Act.
(2) Effectiveness of Automatic Shelf Registration Statement. The Registration
Statement is an automatic shelf registration statement, as defined in Rule 405 under the
Act, that initially became effective within three years of the date of this Agreement.
(3) Eligibility to Use Automatic Shelf Registration Form. The Company has not
received from the Commission any notice pursuant to Rule 401(g)(2) under the Act objecting
to use of the automatic shelf registration statement form. If at any time when Offered
Securities remain unsold by the Underwriters the Company receives from the Commission a
notice pursuant to Rule 401(g)(2) under the Act or otherwise ceases to be eligible to use
the automatic shelf registration statement form, the Company will (i) promptly notify the
Representatives, (ii) promptly file a new registration statement or post-effective
amendment on the proper form relating to the Offered Securities, in a form satisfactory to
the Representatives, (iii) use its reasonable best efforts to cause such registration
statement or post-effective amendment to be declared effective as soon as reasonably
practicable, and (iv) promptly notify the Representatives of such effectiveness. The
Company will take all other action necessary or appropriate to permit the public offering
and sale of the Offered Securities to continue as contemplated in the registration
statement that was the subject of the Rule 401(g)(2) under the Act notice or for which the
Company has otherwise become ineligible. References herein to the Registration Statement
shall include such new registration statement or post-effective amendment, as the case may
be.
(4) Filing Fees. The Company has paid or shall pay the required Commission filing
fees relating to the Offered Securities within the time required by Rule 456(b)(1) under
the Act without regard to the proviso therein and otherwise in accordance with Rules
456(b) and 457(r) under the Act.
4
(iv) Ineligible Issuer Status. (i) At the earliest time after the filing of the
Registration Statement that the Company or another offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2) under the Act) of the Offered Securities and
(ii) at the date of this Agreement, the Company was not and is not an ineligible issuer,
as defined in Rule 405 under the Act.
(v) General Disclosure Package. As of the Applicable Time, neither (i) the General
Use Issuer Free Writing Prospectus(es) issued at or prior to the Applicable Time, the
preliminary prospectus supplement, dated August 16, 2010, including the base prospectus,
dated June 9, 2010 (which is the most recent Statutory Prospectus distributed to investors
generally), and the other information, if any, stated in Schedule C to this
Agreement to be included in the General Disclosure Package, all considered together
(collectively, the General Disclosure Package), nor (ii) any individual Limited Use
Issuer Free Writing Prospectus, when considered together with the General Disclosure
Package, included any untrue statement of a material fact or omitted to state any material
fact necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The preceding sentence does not apply to
statements in or omissions from any Statutory Prospectus or any Issuer Free Writing
Prospectus in reliance upon and in conformity with written information furnished to the
Company by any Underwriter through the Representatives specifically for use therein, it
being understood and agreed that the only such information furnished by any Underwriter
consists of the information specified in Section 8(c) hereof.
(vi) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the public offer and sale
of the Offered Securities or until any earlier date that the Company notified or notifies
the Representatives as described in the next sentence, did not, does not and will not
include any information that conflicted, conflicts or will conflict with the information
then contained in the Registration Statement. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a
result of which such Issuer Free Writing Prospectus conflicted or would conflict with the
information then contained in the Registration Statement or as a result of which such
Issuer Free Writing Prospectus, if republished immediately following such event or
development, would include an untrue statement of a material fact or omitted or would omit
to state a material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, (i) the Company has
promptly notified or will promptly notify the Representatives and (ii) the Company has
promptly amended or will promptly amend or supplement such Issuer Free Writing Prospectus
to eliminate or correct such conflict, untrue statement or omission. This provision does
not apply to statements in or omissions from any such document based upon written
information furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that the only such
information is that specified in Section 8(c) hereof.
(vii) Good Standing of the Company. The Company has been duly incorporated and is
existing and in good standing under the laws of the State of Delaware, with corporate
power and authority to own its properties and conduct its business as described in the
General Disclosure Package; and, except as would not, individually or in the aggregate,
result in a material adverse change in the condition (financial or otherwise), results of
operations or business of either (x) with respect to all matters pertaining to the Company
and its subsidiaries, the Company and its subsidiaries, taken as a whole or (y) with
respect to all matters pertaining to Target and its subsidiaries, the Company and its
subsidiaries taken as a whole after giving pro forma effect to the Merger (a Material
Adverse Effect), the Company and, to the knowledge of the Company, Target are each duly
qualified to do business as a foreign corporation in good standing in all other
5
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification.
(viii) Subsidiaries of Company and of Target. Each subsidiary of the Company and, to
the knowledge of the Company, each subsidiary of Target has been duly incorporated and is
existing and in good standing under the laws of the jurisdiction of its incorporation or
organization, with power and authority (corporate and other) to own its properties and
conduct its business as described in the General Disclosure Package; and, except as would
not, individually or in the aggregate, result in a Material Adverse Effect, each subsidiary
of the Company and, to the knowledge of the Company, each subsidiary of Target is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its business
requires such qualification; all of the issued and outstanding capital stock of each
subsidiary of the Company and, to the knowledge of the Company, each subsidiary of Target
has been duly authorized and validly issued and is fully paid and nonassessable; and,
except under the credit facilities of the Company described in the General Disclosure
Package and of Target, respectively, the capital stock of each subsidiary owned by the
Company and, to the knowledge of the Company, each subsidiary owned by Target, directly or
through subsidiaries, is owned free from liens, encumbrances and defects.
(ix) Offered Securities; Capital Stock of the Company. The Offered Securities and all
other outstanding shares of capital stock of the Company have been duly authorized; the
authorized equity capitalization of the Company is as set forth in the General Disclosure
Package; all outstanding shares of capital stock of the Company are, and, when the Offered
Securities have been delivered and paid for in accordance with this Agreement on each
Closing Date, such Offered Securities will have been, validly issued, fully paid and
nonassessable, will conform to the information in the General Disclosure Package and to
the description of such Offered Securities contained in the Final Prospectus; except as to
the anti-dilution protection provided to Misys in the Relationship Agreement, dated as of
March 17, 2008, by and between the Company and Misys, as amended to date (the
Relationship Agreement), as set forth in the General Disclosure Package, the
stockholders of the Company have no preemptive rights with respect to the Securities; and
none of the outstanding shares of capital stock of the Company have been issued in
violation of any preemptive or similar rights of any security holder. Except (x) as
disclosed in the General Disclosure Package and (y) with respect to the Companys and
Targets benefit plans, there are no outstanding (i) securities or obligations of the
Company convertible into or exchangeable for any capital stock of the Company, (ii)
warrants, rights or options to subscribe for or purchase from the Company any such capital
stock or any such convertible or exchangeable securities or obligations or (iii)
obligations of the Company to issue or sell any shares of capital stock, any such
convertible or exchangeable securities or obligations, or any such warrants, rights or
options.
(x) No Finders Fee. Except as disclosed in the General Disclosure Package, there are
no contracts, agreements or understandings between, on the one hand, the Company or, to
the knowledge of the Company, Target and, on the other hand, any person that would give
rise to a valid claim against the Company or Target or any Underwriter for a brokerage
commission, finders fee or other like payment with respect to this offering.
(xi) Registration Rights. Except as disclosed in the General Disclosure Package,
there are no contracts, agreements or understandings between the Company and any person
granting such person the right to require the Company to file a registration statement
under the Act with respect to any securities of the Company owned or to be owned by such
person or to require the Company to include such securities in the securities registered
pursuant to a Registration
6
Statement or in any securities being registered pursuant to any other registration
statement filed by the Company under the Act (collectively, registration rights).
(xii) Listing. The Offered Securities have been approved for listing on the NASDAQ
Stock Market, subject to notice of issuance.
(xiii) Absence of Further Requirements. No consent, approval, authorization, or order
of, or filing (other than Current Reports on Form 8-K and prospectus supplements relating
to the Offered Securities required to be filed with the Commission) or registration with,
any person (including any governmental agency or body or any court) is required in
connection with the execution and delivery of this Agreement by the Company or the
consummation by the Company of the transactions contemplated by this Agreement, except (i)
as have been obtained or (ii) as may be required under state securities laws. Except as
disclosed in the General Disclosure Package, no consent, approval, authorization, or order
of, or filing (other than Current Reports on Form 8-K required to be filed with the
Commission and filings required to be filed in the State of Delaware with respect to the
Merger Agreement) with, any person (including any governmental agency or body or any
court) is required that would prevent the consummation by the Company of the transactions
contemplated by the Framework Agreement or the Merger Agreement, except as have been
obtained.
(xiv) Title to Property. Except as disclosed in the General Disclosure Package or the
Target Disclosures and except as would not, individually or in the aggregate, result in a
Material Adverse Effect, (i) the Company and its subsidiaries and, to the knowledge of the
Company, Target and its subsidiaries each have good and marketable title to their
respective real properties and personal properties reflected as owned by them in the
financial statements referred to in Section 2(a)(xxvii) or described in the General
Disclosure Package, in each case free from liens, charges, encumbrances and defects that
would affect the value thereof or interfere with the use made or to be made thereof by
them, and (ii) each lease pursuant to which the Company and its subsidiaries and, to the
knowledge of the Company, Target and its subsidiaries holds properties described in the
General Disclosure Package is in full force and effect.
(xv) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance by the Company of this Agreement, the sale of the Offered
Securities, and, with respect to clause (iii) and except as set forth on Schedules 2.4 and
3.4 to the Merger Agreement Disclosures, the consummation of the transactions contemplated
by the Framework Agreement and the Merger Agreement will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under, or result
in the imposition of any lien, charge or encumbrance upon any property or assets of the
Company or any of its subsidiaries or, to the knowledge of the Company, Target or any of
its subsidiaries pursuant to (i) the charter or by-laws of the Company or any of its
subsidiaries or, to the knowledge of the Company and other than as set forth in the Target
Disclosures, Target or any of its subsidiaries, (ii) any statute, rule, regulation or
order of any governmental agency or body or any court, domestic or foreign, having
jurisdiction over the Company or any of its subsidiaries or any of their properties or, to
the knowledge of the Company and other than as set forth in the Target Disclosures, Target
or any of its subsidiaries or any of their properties, or (iii) any agreement or
instrument to which the Company or any of its subsidiaries or, to the knowledge of the
Company, Target or any of its subsidiaries is a party (including the Merger Agreement and
the Framework Agreement) or by which the Company or any of its subsidiaries or, to the
knowledge of the Company, Target or any of its subsidiaries is bound, or to which any of
the properties of the Company or any of its subsidiaries or, to the knowledge of the
Company, Target or any of its subsidiaries is subject,
7
except in the case of clauses (ii) and (iii) for those which would not have a Material
Adverse Effect.
(xvi) Absence of Existing Defaults and Conflicts. Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company and other than as set forth in the
Target Disclosures, Target or any of its subsidiaries is in violation of its respective
charter or by-laws or in default (or with the giving of notice or lapse of time would be
in default) under any existing obligation, agreement, covenant or condition contained in
any indenture, loan agreement, mortgage, lease or other agreement or instrument to which
any of them is a party or by which any of them is bound or to which any of the properties
of any of them is subject, except such defaults that would not, individually or in the
aggregate, result in a Material Adverse Effect.
(xvii) Authorization of Agreement. This Agreement has been duly authorized, executed
and delivered by the Company.
(xviii) Possession of Licenses and Permits. The Company and its subsidiaries and, to
the knowledge of the Company and other than as set forth in the Target Disclosures, Target
and its subsidiaries (i) possess, and are in compliance with the terms of, all
certificates, authorizations, franchises, licenses and permits (Licenses) necessary or
material to the conduct of the business now conducted or proposed in the General
Disclosure Package to be conducted by them, and (ii) have not received any notice of
proceedings relating to the revocation or modification of any Licenses, except in either
case as would not, individually or in the aggregate, have a Material Adverse Effect.
(xix) Absence of Labor Dispute. No labor dispute with the employees of the Company or
any of its subsidiaries or, to the knowledge of the Company and other than as set forth in
the Target Disclosures, Target or any of its subsidiaries exists or, to the knowledge of
the Company, is imminent that could, individually or in the aggregate, have a Material
Adverse Effect.
8
(xx) Possession of Intellectual Property. Except as described in the General Disclose
Package, the Company and its subsidiaries and, to the knowledge of the Company and except
as disclosed in the Merger Agreement Disclosures, Target and its subsidiaries own or
possess a valid right to use (in either case, free of any liens, charges and encumbrances)
or can acquire on reasonable terms sufficient trademarks, trade names, patent rights,
copyrights, domain names, licenses, approvals, trade secrets, inventions, technology,
know-how and other intellectual property and similar rights, including registrations and
applications for registration thereof (collectively, Intellectual Property Rights)
necessary or material to the conduct of the business now conducted or proposed in the
General Disclosure Package to be conducted by them, and the expected expiration of any
such Intellectual Property Rights would not, individually or in the aggregate, have a
Material Adverse Effect. Except as disclosed in the General Disclosure Package or, with
respect to Target and its subsidiaries, the Merger Agreement Disclosures (i) there are no
rights of third parties to own or use any of the Intellectual Property Rights owned by the
Company or its subsidiaries or, to the knowledge of the Company, Target or its
subsidiaries; (ii) there is no infringement, misappropriation, breach, default or other
violation, or the occurrence of any event that with notice or the passage of time would
constitute any of the foregoing, by any third parties of any of the Intellectual Property
Rights of the Company or its subsidiaries or, to the knowledge of the Company, Target or
its subsidiaries, and, to the Companys knowledge, the Intellectual Property Rights of the
Company, the Target and each of their subsidiaries are valid and enforceable; (iii) there
is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or
claim by others challenging the rights of the Company or any of its subsidiaries or, to
the knowledge of the Company, Target or any of its subsidiaries in or to, or the violation
of their Intellectual Property Rights; (iv) there is no pending or, to the knowledge of
the Company, threatened action, suit, proceeding or claim by others challenging the
validity, enforceability or scope of any such Intellectual Property Rights of the Company
or its subsidiaries or, to the knowledge of the Company, Target and its subsidiaries; (v)
there is no pending or, to the knowledge of the Company, threatened action, suit,
proceeding or claim by others that the Company or any of its subsidiaries or, to the
knowledge of the Company, Target or any of its subsidiaries infringes, misappropriates or
otherwise violates or conflicts with any Intellectual Property Rights or other proprietary
rights of others; (vi) none of the Intellectual Property Rights used by the Company or its
subsidiaries or, to the knowledge of the Company, Target or its subsidiaries in their
businesses has been obtained or is being used by the Company or its subsidiaries or Target
or its subsidiaries in violation of any contractual obligation binding on the Company or
any of its subsidiaries or Target or any of its subsidiaries in violation of the rights of
any persons; and (vii) the Company and its subsidiaries and, to the knowledge of the
Company, Target and its subsidiaries have taken reasonable measures to protect the
confidentiality of trade secrets and other confidential and proprietary information, and,
to the knowledge of the Company, there has not been any disclosure of any trade secrets or
other confidential and proprietary information that has resulted, or is likely to result,
in the loss of trade secret or other rights in and to such information; except in each
case covered by clauses (i) (vii) such as would not, individually or in the aggregate,
have a Material Adverse Effect.
(xxi) Environmental Laws. Except as disclosed in the General Disclosure Package,
neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company and
except as set forth in the Merger Agreement Disclosures, Target nor any of its
subsidiaries, is in violation of any statute, any rule, regulation, decision or order of
any governmental agency or body or any court, domestic or foreign, relating to the use,
disposal or release of hazardous or toxic substances or relating to the protection or
restoration of the environment or human exposure to hazardous or toxic substances
(collectively, environmental laws), owns or operates any real property contaminated with
any substance that is subject to any environmental laws, is liable for any off-site
disposal or contamination pursuant to any environmental laws, or is subject to any claim
relating to any environmental laws, which violation, contamination, liability or claim
would, individually or in the aggregate, have a Material Adverse Effect; and the Company
is not aware of any pending investigation which might lead to such a claim.
9
(xxii) Accurate Disclosure. The statements in the General Disclosure Package and the
Final Prospectus under the headings Recent Developments, under the caption Risk
FactorsRisks Related to the Coniston Transactions Newco may be liable for significant
potential contingent tax liabilities arising out of the Coniston Transactions and certain
related transactions, or out of prior activities of Newco unrelated to those
transactions, The Eclipsys Merger, Description of our Capital Stock and Certain U.S.
Federal Tax Consequences, and in the Companys Annual Report on Form 10-K for the fiscal
year ended May 31, 2010 under the caption Risk FactorsRisks Related to Our IndustryWe
are subject to a number of existing laws, regulations and industry initiatives,
non-compliance with certain of which could materially affect our operations or otherwise
adversely affect our business, financial condition and results of operations, as we are
susceptible to a changing regulatory environment, insofar as such statements summarize
legal matters, agreements, documents or proceedings discussed therein, are accurate and
fair summaries of such legal matters, agreements, documents or proceedings and present the
information required to be shown.
(xxiii) Absence of Manipulation. The Company has not taken, directly or indirectly,
any action that is designed to or that has constituted or that would reasonably be
expected to cause or result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the Offered Securities.
(xxiv) Statistical and Market-Related Data. Any third party statistical and
market-related data included or incorporated by reference in a Registration Statement, a
Statutory Prospectus or the General Disclosure Package are based on or derived from
sources that the Company believes to be reliable and accurate.
(xxv) Internal Controls and Compliance with the Sarbanes-Oxley Act. Except as set
forth in the General Disclosure Package, the Company, its subsidiaries and the Companys
Board of Directors (the Company Board) and, to the knowledge of the Company and except
as set forth in the Merger Agreement Disclosures, Target, its subsidiaries and Targets
Board of Directors (the Target Board) are in compliance with Sarbanes-Oxley and all
applicable Exchange Rules. Each of the Company and, to the knowledge of the Company and
other than as set forth in the Target Disclosures, Target maintains a system of internal
controls, including, but not limited to, disclosure controls and procedures, internal
controls over accounting matters and financial reporting, an internal audit function and
legal and regulatory compliance controls (with respect to the Company, Company Internal
Controls and with respect to Target, Target Internal Controls) that complies with the
Securities Laws and are sufficient to provide reasonable assurances that (i) transactions
are executed in accordance with managements general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial statements in
conformity with U.S. Generally Accepted Accounting Principles and to maintain
accountability for assets, (iii) access to assets is permitted only in accordance with
managements general or specific authorization and (iv) the recorded accountability for
assets is compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences. The Company Internal Controls are overseen by
the Audit Committee (the Company Audit Committee) of the Company Board, and the Target
Internal Controls are overseen by the Audit Committee (the Target Audit Committee) of
the Target Board, in each case in accordance with Exchange Rules. Since the date of the
latest audited financial statements of the Company included in the General Disclosure
Package, there has been no change in the Companys internal control over financial
reporting that has materially affected, or is reasonably likely to materially affect, the
Companys internal control over financial reporting.
10
(xxvi) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) to which the Company or any of
its subsidiaries or, to the knowledge of the Company and except as set forth in the Merger
Agreement Disclosures, Target or any of its subsidiaries is a party, or which concerns the
Company, Target or any of their respective properties, that would individually or in the
aggregate have a Material Adverse Effect, or would materially and adversely affect the
ability of the Company or the Selling Stockholders to perform their obligations under this
Agreement, the Framework Agreement or the Merger Agreement, or which are otherwise material
in the context of the sale of the Offered Securities; and no such actions, suits or
proceedings (including any inquiries or investigations by any court or governmental agency
or body, domestic or foreign) are, to the Companys knowledge, threatened.
(xxvii) Financial Statements. The financial statements included in the Registration
Statement and the General Disclosure Package present fairly the financial position of the
Company and its consolidated subsidiaries and, to the knowledge of the Company and other
than as set forth in the General Disclosure Package, Target and its consolidated
subsidiaries as of the dates shown and their results of operations and cash flows for the
periods shown, and such financial statements have been prepared in conformity with the
generally accepted accounting principles in the United States applied on a consistent
basis; and the schedules included in the Registration Statement present fairly the
information required to be stated therein; the assumptions used in preparing the pro forma
financial statements included in the Registration Statement and the General Disclosure
Package provide a reasonable basis for presenting the significant effects directly
attributable to the transactions or events described therein, the related pro forma
adjustments give appropriate effect to those assumptions, and the pro forma columns
therein reflect the proper application of those adjustments to the corresponding
historical financial statement amounts; the summary and selected financial and statistical
data included in the Registration Statement, the General Disclosure Package and the Final
Prospectus presents fairly the information shown therein and such data has been compiled
on a basis consistent with the financial statements presented therein and the books and
records of the Company; the Company does not have any material liabilities or obligations,
direct or contingent (including any off-balance sheet obligations or any variable
interest entities within the meaning of Financial Accounting Standards Board
Interpretation No. 46), not disclosed in the Registration Statement, the General
Disclosure Package and the Final Prospectus; and there are no financial statements that
are required to be included in the Registration Statement, the General Disclosure Package
or the Final Prospectus that are not included as required.
(xxviii) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the respective latest audited
financial statements included in the General Disclosure Package (i) there has been no
change in the condition (financial or otherwise), results of operations or business of the
Company and its subsidiaries taken as a whole or, to the knowledge of the Company, Target
and its subsidiaries, taken together with the Company and its subsidiaries as a whole
after giving pro forma effect to the merger, that is material and adverse, (ii) except as
disclosed in or contemplated by the General Disclosure Package, there has been no dividend
or distribution of any kind declared, paid or made by the Company or, to the knowledge of
the Company and other than as set forth in the Target Disclosures, Target on any class of
its capital stock and (iii) except as disclosed in or contemplated by the General
Disclosure Package, there has been no material adverse change in the capital stock,
short-term indebtedness, long-term indebtedness, net current assets or net assets of the
Company and its subsidiaries or, to the knowledge of the Company, Target and its
subsidiaries.
11
(xxix) Investment Company Act. The Company is not and, after giving effect to the
offering and sale of the Offered Securities as described in the General Disclosure
Package, will not be an investment company as defined in the Investment Company Act of
1940 (the Investment Company Act).
(xxx) Authorization of the Merger Agreement. The Merger Agreement has been duly
authorized, executed and delivered by the Allscripts Parties and, to the knowledge of the
Company, Target, and constitutes a valid and legally binding agreement of the Allscripts
Parties and, to the knowledge of the Company, Target, enforceable in accordance with its
terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws relating to or affecting creditors rights
generally or by general equitable principles.
(xxxi) Authorization of the Framework Agreement. The Framework Agreement has been
duly authorized, executed and delivered by the Company and constitutes a valid and legally
binding agreement of the Company, enforceable in accordance with its terms, except as
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium
or other similar laws relating to or affecting creditors rights generally or by general
equitable principles.
(xxxii) Taxes. Except as would not reasonably be expected to result in a Material
Adverse Effect and other than as set forth in the General Disclosure Package, the Company
and each of its subsidiaries (which, for the avoidance of doubt, shall not include Newco
(as defined in the Framework Agreement)) and, to the knowledge of the Company and other
than as set forth in the Target Disclosures, Target and each of its subsidiaries and Newco
have filed all Federal, state, local and foreign income and franchise tax returns required
to be filed through the date hereof, subject to permitted extensions, and have paid all
taxes due thereon. Except as set forth in the General Disclosure Package, (i) no tax
deficiency has been determined adversely to the Company or any of its subsidiaries (which,
for the avoidance of doubt, shall not include Newco) or, to the knowledge of the Company
and other than as set forth in the Target Disclosures, Target or any of its subsidiaries
or Newco, and (ii) the Company does not have any knowledge of any tax deficiencies, that,
in the case of clauses (i) and (ii), would, in the aggregate, reasonably be expected to
have a Material Adverse Effect.
(xxxiii) Transfer Taxes. There are no transfer taxes or other similar fees or charges
under Federal law or the laws of any state, or any political subdivision thereof, required
to be paid in connection with the execution and delivery of this Agreement.
(xxxiv) Compliance Under Federal Healthcare Programs. Neither the Company nor any of
its subsidiaries nor, to the knowledge of the Company and other than as set forth in the
Target Disclosures, Target or any of its subsidiaries nor any other person who has a
direct or indirect ownership or control interest in the Company or any of its subsidiaries
or in Target or any of its subsidiaries or who is an officer, director, agent or managing
employee of the Company or any of its subsidiaries or of Target or any of its subsidiaries
(i) has engaged in any activities which are prohibited, or are cause for criminal or civil
penalties and/or mandatory or permissive exclusion from Medicare or Medicaid, under
Section 1320a-7, 1320a-7a, 1320a-7b, or 1395nn of Title 42 of the United States Code, the
Federal TRICARE statute, the Federal False Claims Act (31 U.S.C. §3729-3733), or the
regulations promulgated pursuant to such statutes or regulations or corresponding state or
local statutes; (ii) has had a civil monetary penalty assessed against it under 42 U.S.C.
§1320a-7(a); (iii) is currently excluded from participation under the Medicare program
12
or a Federal Health Care Program (as that term is defined in 42 U.S.C. §1320a7b(f)); or
(iv) has been convicted (as that term is defined in 42 C.F.R. §1001.2) of any of the
categories of offenses described in 42 U.S.C. 1320a7(a) and 42 U.S.C. 1320a7b(b)(1), (2)
and (3), except in the case of clauses (i) and (ii), for such activities or penalties as
would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(xxxv) HIPAA Compliance. Except as set forth in the General Disclosure Package, the
Company, its subsidiaries and, to the knowledge of the Company, Target and its
subsidiaries, are and have been in compliance with all applicable provisions of the Health
Insurance Portability and Accountability Act of 1996, and all other applicable laws and
its own internal procedures pertaining to privacy, data protection and the collection and
use of personal information, except as would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.
(xxxvi) No Prohibition on Dividends. No subsidiary of the Company or, to the
knowledge of the Company, Target is currently prohibited, directly or indirectly, from
paying any dividends to the Company or Target, respectively, from making any other
distribution on such subsidiarys capital stock, from repaying to the Company or Target,
respectively, any loans or advances to such subsidiary from the Company or Target,
respectively, or from transferring any of such subsidiarys property or assets to the
Company or Target, respectively, or any other subsidiary of the Company or Target,
respectively, except under the credit facilities of the Company described in the General
Disclosure Package and of Target, respectively.
(xxxvii) Insurance. The Company and its subsidiaries and, to the knowledge of the
Company and except as set forth in the Merger Agreement Disclosures, Target and its
subsidiaries are insured by insurers with appropriately rated claims paying abilities
against such losses and risks and in such amounts as are prudent and customary for the
businesses in which they are engaged, and all material policies of insurance insuring the
Company or any of its subsidiaries or, to the knowledge of the Company, Target or any of
its subsidiaries or their respective businesses, assets, employees, officers and directors
are in full force and effect.
(xxxviii)No Unlawful Payments. Neither the Company nor any of its subsidiaries nor
any director, officer, agent, employee or other person associated with or acting on behalf
of the Company or any of its subsidiaries has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; (iii) violated or is in violation of
any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe,
rebate, payoff, influence payment, kickback or other unlawful payment.
(xxxix) Compliance with Money Laundering Laws. The operations of the Company and its
subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the applicable money laundering statutes
of all jurisdictions, the rules and regulations thereunder and any related or similar
rules, regulations or guidelines, issued, administered or enforced by any governmental
agency (collectively, the Money Laundering Laws) and no action, suit or proceeding by or
before any court or governmental agency, authority or body or any arbitrator involving the
Company or any of its subsidiaries with respect to the Money Laundering Laws is pending
or, to the knowledge of the Company, threatened.
13
(xl) Compliance with OFAC. None of the Company, any of its subsidiaries or any
director, officer, agent, employee or affiliate of the Company or any of its subsidiaries
is currently subject to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Department of the Treasury (OFAC); and the Company will not, directly
or indirectly, use the proceeds of the offering of the Securities hereunder, or lend,
contribute or otherwise make available such proceeds to any subsidiary, joint venture
partner or other person or entity, for the purpose of financing the activities of any
person currently subject to any U.S. sanctions administered by OFAC.
(b) The Selling Stockholders jointly and severally represent and warrant to, and agree with,
the several Underwriters that:
(i) Title to Securities. In respect of the Newco Shares owned by each Selling
Stockholder, immediately prior to the completion of the Arsenal Exchange, such Selling
Stockholder has valid title to, or a valid security entitlement within the meaning of
Section 8-501 of the New York Uniform Commercial Code (the UCC) free and clear of all
security interests, claims, liens, equities or other encumbrances. In respect of the
Offered Securities to be sold by such Selling Stockholder pursuant to this Agreement, upon
completion of the Arsenal Exchange, such Selling Stockholder will, on each Closing Date,
have, valid title to, or a valid security entitlement within the meaning of Section
8-501 of the New York Uniform Commercial Code (the UCC) free and clear of all security
interests, claims, liens, equities or other encumbrances and the legal right and power,
and all authorization and approval required by law, to enter into this Agreement and to
sell, transfer and deliver the Offered Securities to be sold by such Selling Stockholder
or a security entitlement in respect of such Offered Securities.
(ii) DTC. Upon payment for the Offered Securities to be sold by such Selling
Stockholder pursuant to this Agreement, delivery of such Offered Securities, as directed by
the Underwriters, to Cede & Co. (Cede) or such other nominee as may be designated by the
Depository Trust Company (DTC), registration of such Offered Securities in the name of
Cede or such other nominee and the crediting of such Offered Securities on the books of DTC
to securities accounts of the Underwriters (assuming that neither DTC nor any such
Underwriter has notice of any adverse claim (within the meaning of Section 8-105 of the UCC
to such Offered Securities), (A) DTC shall be a protected purchaser of such Offered
Securities within the meaning of Section 8-303 of the UCC, (B) under Section 8-501 of the
UCC, the Underwriters will acquire a valid security entitlement in respect of such Offered
Securities and (C) no action based on any adverse claim, within the meaning of Section
8-102 of the UCC, to such Offered Securities may be successfully asserted against the
Underwriters with respect to such security entitlement; for purposes of this
representation, such Selling Stockholder has assumed that when such payment, delivery and
crediting occurs, (x) such Offered Securities will have been registered in the name of Cede
or another nominee designated by DTC, in each case on the Companys share registry in
accordance with its charter, bylaws and applicable law, (y) DTC will be registered as a
clearing corporation within the meaning of Section 8-102 of the UCC and (z) appropriate
entries to the accounts of the several Underwriters on the records of DTC will have been
made pursuant to the UCC.
(iii) Absence of Further Requirements. No consent, approval, authorization or order
of, or filing with, any person (including any stockholder (including shareholders of the
Selling Stockholders direct or indirect parent), governmental agency or body or any court)
is required to be obtained or made by any Selling Stockholder for the consummation of the
transactions contemplated by this Agreement in connection with the offering and sale of the
Offered Securities sold by the Selling Stockholders or the Framework Agreement except (i)
with respect to the US
14
reorganization of Misys described in the Framework Agreement, which will be obtained at or
prior to the First Closing Date, (ii) such as have been obtained and made under the Act
and (iii) such as may be required under state securities laws.
(iv) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of this Agreement and the Framework Agreement and the
consummation of the transactions herein and therein contemplated will not contravene (i)
the memorandum or articles of association of any Selling Stockholder, (ii) except as would
not materially and adversely affect the ability of the Selling Stockholders to perform
their obligations under this Agreement or the Framework Agreement, any provision of any
statute, any rule or regulation in the United Kingdom or the United States or order of any
governmental agency or body or any court in the United Kingdom or the United States having
jurisdiction over any Selling Stockholder, (iii) any agreement or instrument binding upon
any Selling Stockholder that is material to such Selling Stockholder or (iv) the Framework
Agreement..
(v) Compliance with Securities Act Requirements. (i) (A) At the time the Registration
Statement initially became effective, (B) at the time of each amendment thereto for the
purposes of complying with Section 10(a)(3) of the Act (whether by post-effective
amendment, incorporated report or form of prospectus), (C) at the Applicable Time and (D)
on the Closing Date, the Registration Statement did not and will not include any untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading; (ii) (A) on its date,
(B) at the time of filing the Final Prospectus pursuant to Rule 424(b) and (C) on the
Closing Date, the Final Prospectus did not and will not include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary
to make the statements therein not misleading in the light of the circumstances under which
they were made; and (iii) at the Applicable Time, the General Disclosure Package did not
include any untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made. This Section 2(b)(v) shall only
apply to Selling Stockholder Information.
(vi) No Undisclosed Material Information. The sale of the Offered Securities by such
Selling Stockholder under this Agreement is being made pursuant to Misyss obligations
under the Framework Agreement and is not the result of any material information that is
not set forth in the shareholder circular, dated as of July 29, 2010, sent to Misys
shareholders in connection with the meeting of its shareholders convened to approve the
transactions contemplated by the Framework Agreement.
(vii) Authorization of Agreement. This Agreement has been duly authorized, executed
and delivered by each Selling Stockholder and the consummation of the transactions
contemplated hereby is consistent with the authorization by Misys shareholders obtained on
August 13, 2010. The Framework Agreement has been duly executed and delivered by Misys and,
assuming the due authorization, execution and delivery by each other party thereof,
constitutes a legal, valid and binding obligation of Misys, enforceable in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium or other similar laws of general application relating to or
affecting creditors rights generally and except for the limitations imposed by general
principles of equity.
(viii) No Finders Fee. Except as disclosed in the General Disclosure Package or
otherwise paid in connection with the transactions described in the second paragraph of
this
15
Agreement, there are no contracts, agreements or understandings between such
Selling Stockholder and any person that would give rise to a valid claim against
such Selling Stockholder or any Underwriter for a brokerage commission, finders
fee or other like payment in connection with this offering.
(ix) Absence of Manipulation. Such Selling Stockholder has not taken, directly
or indirectly, any action that is designed to or that has constituted or that would
reasonably be expected to cause or result in the stabilization or manipulation of
the price of any security of the Company to facilitate the sale or resale of the
Offered Securities.
(x) Fair Summaries of Agreements. The statements summarizing the terms of (a)
the Framework Agreement under the caption Recent Developments Reduction of Misys
Share Ownership on pages S-6 through S-8 of the Statutory Prospectus (other than
the statements summarizing the terms of the Commitment Letter (as defined in the
Statutory Prospectus) and the related credit facilities and Misys expected
ownership percentage upon completion of the Coniston Transactions (as defined in
the Statutory Prospectus)); (b) the Shared Services Agreement and the Transition
Services Agreement (each as defined in the Statutory Prospectus) under the caption
Risk Factors We currently rely on Misys for the provision of certain corporate
services and the combined company will have to rely on its own resources and
personnel to operate the business on page S-30 of the Statutory Prospectus (other
than the second and last sentence of such risk factor); and (c) the Shared Services
Agreement (other than the third and last sentences of the relevant summary), the
Aprima Medical Software Agreement, the Stock Repurchase Agreement (other than the
average price and aggregate purchase price of the repurchased shares), the License
Agreements (in each case as such terms are used in the Companys definitive proxy
statement, dated August 26, 2009, the Proxy Statement) and the Relationship
Agreement (other than the date of such agreement specified therein) on pages 37-39
of the Proxy Statement, are accurate and fair summaries of the relevant terms of
such agreements.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Selling
Stockholders agree to sell to the several Underwriters, and each of the Underwriters agrees,
severally and not jointly, to purchase from the Selling Stockholders that number of Firm Securities
(rounded up or down, as determined by Barclays Capital Inc. in their discretion, in order to avoid
fractions) obtained by multiplying the number of Firm Securities set forth opposite the name of
such Selling Stockholder in Schedule A hereto by a fraction the numerator of which is the
number of Firm Securities set forth opposite the name of such Underwriter in Schedule B
hereto and the denominator of which is the total number of Firm Securities, at a purchase price
equal to $16.368 per share for 25,000,000 shares of common stock and $16.45325 per share for
2,000,000 shares of common stock (resulting in a blended purchase price per Firm Security of
$16.3743148148148), such shares allocated amongst the Underwriters in accordance with their
respective purchases. The Selling Stockholders will deliver the Firm Securities to or as
instructed by Barclays Capital Inc. for the accounts of the several Underwriters in a form
reasonably acceptable to Barclays Capital Inc. against payment of the purchase price by the
Underwriters in Federal (same day) funds by wire transfer to the bank account(s) previously
designated by Misys in writing to the Underwriters or their counsel at 10:00 A.M., New York time,
on August 20, 2010, or at such other time not later than seven full business days thereafter as
Barclays Capital Inc. and the Company and Misys shall determine, such time being herein referred to
as the First Closing Date. For purposes of Rule 15c6-1 under the Exchange Act, the First Closing
Date (if later than the otherwise applicable settlement date) shall be the settlement date for
payment of funds and delivery of securities for all the Offered Securities sold pursuant to the
offering. Evidence of the issuance of the Firm Securities so to be delivered will be provided to
Skadden, Arps, Slates, Meagher & Flom LLP at or prior to the First Closing Date.
In addition, upon written notice from the Representatives given to the Company and the Selling
Stockholders from time to time not more than 30 days subsequent to the date of the Final
Prospectus, the
16
Underwriters may purchase all or less than all of the Optional Securities at a purchase price of
$16.45325 per share. The Selling Stockholders agree, severally and not jointly, to sell to the
Underwriters the respective numbers of shares of Optional Securities obtained by multiplying the
number of shares of Optional Securities specified in such notice by a fraction the numerator of
which is 40,500 in the case of Kapiti Limited, and 4,009,500 in the case of ACT Sigmex Limited, and
the denominator of which is the total number of Optional Securities (subject to adjustment by
Barclays Capital Inc. to eliminate fractions), and the Underwriters agree, severally and not
jointly, to purchase such Optional Securities. Such Optional Securities shall be purchased for the
account of each Underwriter in the same proportion as the number of shares of Firm Securities set
forth opposite such Underwriters name bears to the total number of shares of Firm Securities
(subject to adjustment by Barclays Capital Inc. to eliminate fractions) and may be purchased by the
Underwriters only for the purpose of covering over-allotments made in connection with the sale of
the Firm Securities. No Optional Securities shall be sold or delivered unless the Firm Securities
previously have been, or simultaneously are, sold and delivered. The right to purchase the Optional
Securities or any portion thereof may be exercised from time to time not more than 30 days
subsequent to the date of the Final Prospectus and to the extent not previously exercised may be
surrendered and terminated at any time upon notice by the Representatives to the Company and the
Selling Stockholders.
Each time for the delivery of and payment for the Optional Securities, being herein referred
to as an Optional Closing Date, which may be the First Closing Date (the First Closing Date and
each Optional Closing Date, if any, being sometimes referred to as a Closing Date), shall be
determined by Barclays Capital Inc. but shall be not later than five full business days after
written notice of election to purchase Optional Securities is given. The Selling Stockholders will
deliver the Optional Securities being purchased on each Optional Closing Date to or as instructed
by Barclays Capital Inc. for the accounts of the several Underwriters in a form reasonably
acceptable to Barclays Capital Inc. against payment of the purchase price therefor in Federal (same
day) funds by wire transfer to the bank account(s) previously designated by Misys in writing to the
Underwriters or their counsel. Evidence of the issuance of the Optional Securities being purchased
on each Optional Closing Date will be provided to Skadden, Arps, Slate, Meagher & Flom LLP at or
prior to such Optional Closing Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose to offer
the Offered Securities for sale to the public as set forth in the Final Prospectus.
5. Certain Agreements of the Company and the Selling Stockholders. The Company agrees with the
several Underwriters and the Selling Stockholders that:
(a) Filing of Prospectuses. The Company has filed or will file each Statutory
Prospectus (including the Final Prospectus) pursuant to and in accordance with Rule 424(b)
under the Act within the applicable time period specified therein. The Company has complied
and will comply with Rule 433 under the Act.
17
(b) Filing of Amendments; Response to Commission Requests. At any time when a prospectus
relating to the Offered Securities is (or but for the exemption in Rule 172 under the Act would be)
required to be delivered under the Act by any Underwriter or dealer, the Company will promptly
advise the Representatives of any proposal to amend or supplement the Registration Statement or any
Statutory Prospectus at any time and will offer the Representatives a reasonable opportunity to
comment on any such amendment or supplement. The Company will also advise the Representatives
promptly of (i) the filing of any such amendment or supplement, (ii) any request by the Commission
or its staff for any amendment to the Registration Statement, for any supplement to any Statutory
Prospectus or for any additional information, (iii) the institution by the Commission of any stop
order proceedings in respect of the Registration Statement or the threatening of any proceeding for
that purpose, and (iv) the receipt by the Company of any notification with respect to the
suspension of the qualification of the Offered Securities in any jurisdiction or the institution or
threatening of any proceedings for such purpose. The Company will use its reasonable best efforts
to prevent the issuance of any such stop order or the suspension of any such qualification and, if
issued, to obtain as soon as possible the withdrawal thereof.
(c) Continued Compliance with Securities Laws. If, at any time when a prospectus relating to
the Offered Securities is (or but for the exemption in Rule 172 under the Act would be) required to
be delivered under the Act by any Underwriter or dealer, any event occurs as a result of which the
Final Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state any material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, or if it is necessary at any time to
amend the Registration Statement or supplement the Final Prospectus to comply with the Act, the
Company will promptly notify the Representatives of such event and will promptly prepare and file
with the Commission and furnish, at its own expense, to the Underwriters and the dealers and any
other dealers upon request of the Representatives, an amendment or supplement which will correct
such statement or omission or an amendment which will effect such compliance. Neither the
Representatives consent to, nor the Underwriters delivery of, any such amendment or supplement
shall constitute a waiver of any of the conditions set forth in Section 7 hereof.
(d) Rule 158. As soon as practicable, but not later than 16 months, after the date of this
Agreement, the Company will make generally available to its securityholders an earnings statement
covering a period of at least 12 months beginning after the date of this Agreement and satisfying
the provisions of Section 11(a) of the Act and Rule 158 under the Act.
(e) Furnishing of Prospectuses. The Company will furnish to the Representatives copies of the
Registration Statement, including all exhibits, any Statutory Prospectus, the Final Prospectus and
all amendments and supplements to such documents, in each case as soon as available and in such
quantities as the Representatives reasonably request. The Company will pay the expenses of
printing and distributing to the Underwriters all such documents.
(f) Blue Sky Qualifications. The Company will arrange for the qualification of the Offered
Securities for sale under the laws of such jurisdictions as the Representatives designate and will
continue such qualifications in effect so long as required for the distribution; provided that in
no event shall the Company be obligated to (i) qualify to do business in any jurisdiction where it
is not now so qualified, (ii) to take any action that would subject it to service of process in
suits, other than those arising out of the offering or sale of the Offered Securities, in any
jurisdiction where it is not now so subject or (iii) subject itself to taxation in any jurisdiction
in which it would not otherwise be subject.
(g) Reporting Requirements. During the period of three years hereafter, the Company will
furnish to the Representatives, to the extent not available on the Commissions Electronic Data
Gathering,
18
Analysis and Retrieval system or its successor (EDGAR), as soon as practicable after the end of
each fiscal year, a copy of its annual report to stockholders for such year and, as soon as
available, a copy of each report and any definitive proxy statement of the Company filed with the
Commission under the Exchange Act or mailed to stockholders.
(h) Payment of Expenses. The Company will pay all expenses incident to the performance of its
obligations under this Agreement, including but not limited to any filing fees and other expenses
incurred in connection with qualification of the Offered Securities for sale under the laws of such
jurisdictions as the Representatives designate and the preparation and printing of memoranda
relating thereto, costs and expenses related to the review by the Financial Industry Regulatory
Authority, Inc. of the Offered Securities, costs and expenses relating to investor presentations or
any road show in connection with the offering and sale of the Offered Securities including,
without limitation, any travel expenses of the Companys officers and employees and any other
expenses of the Company including the chartering of airplanes, fees and expenses incident to
listing the Offered Securities on the NASDAQ Stock Market and other national and foreign exchanges,
fees and expenses in connection with the registration of the Offered Securities under the Exchange
Act, expenses incurred in preparing, printing and distributing preliminary prospectuses and the
Final Prospectus (including any amendments and supplements thereto) to the Underwriters and for
expenses incurred for preparing, printing and distributing any Issuer Free Writing Prospectuses to
investors or prospective investors; provided, however, except as set forth in this Agreement, the
Underwriters shall pay their own costs and expenses, including the fees of their counsel.
Notwithstanding the foregoing, the Selling Stockholders will pay any transfer taxes on the sale by
the Selling Stockholders of the Offered Securities to the Underwriters.
(i) Absence of Manipulation. The Company and the Selling Stockholders will not take, directly
or indirectly, any action designed to or that would constitute or that might reasonably be expected
to cause or result in, stabilization or manipulation of the price of any securities of the Company
to facilitate the sale or resale of the Offered Securities.
(j) Restriction on Sale of Securities by the Company. For the period specified below (the
Company Lock-Up Period), the Company will not, directly or indirectly, take any of the following
actions with respect to its Securities or any securities convertible into or exchangeable or
exercisable for any of its Securities (Company Lock-Up Securities): (i) offer, sell, issue,
contract to sell, pledge or otherwise dispose of Company Lock-Up Securities, (ii) offer, sell,
issue, contract to sell, contract to purchase or grant any option, right or warrant to purchase
Company Lock-Up Securities, (iii) enter into any swap, hedge or any other agreement that transfers,
in whole or in part, the economic consequences of ownership of Company Lock-Up Securities, (iv)
establish or increase a put equivalent position or liquidate or decrease a call equivalent position
in Company Lock-Up Securities within the meaning of Section 16 of the Exchange Act or (v) file with
the Commission a registration statement under the Act relating to Company Lock-Up Securities, or
publicly disclose the intention to take any such action, without the prior written consent of the
Representatives; provided, that the foregoing shall not apply to (A) the issuance of Securities to
the holders of common stock of Target pursuant to the Merger Agreement; (B) the issuance of equity
awards to holders of Target equity awards pursuant to the Merger Agreement, as described in the
General Disclosure Package; (C) the issuance of restricted stock units and performance-based awards
under the Companys equity compensation plans and incentive retention plans, including any equity
compensation plan and incentive retention plan assumed by the Company in connection with the
Eclipsys Merger; (D) the issuance of Securities pursuant to the vesting or exercise of equity
awards, restricted stock units or performance based awards, including such awards issued as
described in clauses (B) and (C); (E) the Arsenal Exchange, the Share Repurchase, the Contingent
Repurchase (as defined in the Framework Agreement) and the issuance of Securities pursuant to the
Framework Agreement; and (F) the filing of any registration statement (x) on Form S-4 with respect
to issuances pursuant to clause (A), Form S-8 or any successor forms thereto, or (y) relating
solely to any of the Companys or Targets employee benefit plans.
19
The Company Lock-Up Period will commence on the date hereof and continue for 90 days after
the date hereof or such earlier date that the Representatives consent to in writing.
(k) Restriction on Sale of Securities by Selling Stockholders. For the period
specified below (the Selling Stockholders Lock-Up Period), each Selling Stockholder will
not, directly or indirectly, take any of the following actions with respect to Securities
of the Company or any securities convertible into or exchangeable or exercisable for any
Securities (Selling Stockholders Lock-Up Securities): (i) offer, sell, issue, contract to
sell, pledge or otherwise dispose of Selling Stockholders Lock-Up Securities, (ii) offer,
sell, issue, contract to sell, contract to purchase or grant any option, right or warrant
to purchase Selling Stockholders Lock-Up Securities, (iii) enter into any swap, hedge or
any other agreement that transfers, in whole or in part, the economic consequences of
ownership of Selling Stockholders Lock-Up Securities, (iv) establish or increase a put
equivalent position or liquidate or decrease a call equivalent position in Selling
Stockholders Lock-Up Securities within the meaning of Section 16 of the Exchange Act or (v)
publicly disclose the intention to take any such action during the Selling Stockholders
Lock-Up Period (except as required by law), without the prior written consent of the
Representatives; provided, that the foregoing shall not apply (A) to the US Reorganization,
the Arsenal Exchange, the Share Repurchase and the Contingent Repurchase (as defined in the
Framework Agreement), in each case in accordance with the terms of the Framework Agreement
(B) to the extent Misys or any of its subsidiaries is required to take any of the actions
referred to in (i) through (v) above, to enable Misys to comply with Listing Rules 9.2.2A
and 6.1.4(2) of the United Kingdom Listing Authority. The Selling Stockholders Lock-Up
Period will commence on the date hereof and continue for 90 days after the date hereof or
such earlier date that the Representatives consent to in writing.
(l) Replacement Registration Statement. If immediately prior to the Renewal Deadline
(as hereinafter defined), any of the Offered Securities remain unsold by the Underwriters,
the Company will prior to the Renewal Deadline use its reasonable best efforts to file, if
it has not already done so and is eligible to do so, a new automatic shelf registration
statement relating to the Offered Securities, in a form reasonably satisfactory to the
Representatives. If the Company is no longer eligible to file an automatic shelf
registration statement, the Company will prior to the Renewal Deadline, if it has not
already done so, use its reasonable best efforts to file a new shelf registration statement
relating to the Offered Securities, in a form reasonably satisfactory to the
Representatives, and will use its reasonable best efforts to cause such registration
statement to be declared effective within 180 days after the Renewal Deadline. The Company
will take all other action necessary or appropriate to permit the public offering and sale
of the Offered Securities to continue as contemplated in the expired registration statement
relating to the Offered Securities. References herein to the Registration Statement shall
include such new automatic shelf registration statement or such new shelf registration
statement, as the case may be. Renewal Deadline means the third anniversary of the
initial effective time of the Registration Statement.
(m) W-8BEN. Each Selling Stockholder will deliver to the Representatives a properly
completed and executed United States Internal Revenue Service Form W-8BEN (or other
applicable form or statement in lieu thereof).
6. Free Writing Prospectuses. Except with respect to the free writing prospectus set forth on
Schedule C(3), the Company and the Selling Stockholders represent and agree that, unless they
obtain the prior consent of the Representatives, and each Underwriter represents and agrees that,
unless it obtains the prior consent of the Company and the Representatives, it has not made and
will not make any offer relating to the Offered Securities that would constitute an Issuer Free
Writing Prospectus, or that would otherwise constitute a free writing prospectus, as defined in
Rule 405 under the Act, required to be filed with the Commission. The free writing prospectuses set
forth on Schedule C(3) and any such free writing prospectus consented to by the Company and the
Representatives is hereinafter referred to as a Permitted Free Writing Prospectus. The Company
represents that it has treated and agrees that it will treat each Permitted Free Writing Prospectus
as an issuer free writing
20
prospectus, as defined in Rule 433, and has complied and will comply with the requirements of
Rules 164 and 433 under the Act applicable to any Permitted Free Writing Prospectus, including
timely Commission filing where required, legending and record keeping.
7. Conditions of the Obligations of the Underwriters. The obligations of the several
Underwriters to purchase and pay for the Firm Securities on the First Closing Date and the Optional
Securities to be purchased on each Optional Closing Date will be subject to the accuracy of the
representations and warranties of the Company and the Selling Stockholders herein (as though made
on such Closing Date) in all material respects, provided that if any representation and warranty
includes a materiality qualification (including the words Material Adverse Effect, material,
in all material respects and like words) then such representation and warranty shall be true and
correct in all respects; to the accuracy of the statements of Company officers made pursuant to the
provisions hereof; to the performance by the Company and the Selling Stockholders of their
obligations hereunder; and to the following additional conditions precedent:
(a) Accountants Comfort Letters. The Representatives shall have received (i) a letter
with respect to the Company dated the date hereof and each Closing Date, of
PricewaterhouseCoopers LLP confirming that they are a registered public accounting firm and
independent public accountants within the meaning of the Securities Laws and substantially
in the form of Schedule D-1 hereto (except that, in any letter dated a Closing
Date, the specified date referred to in Schedule D-1 hereto shall be a date no more
than three days prior to such Closing Date), and (ii) a letter with respect to Target dated
the date hereof and each Closing Date, of PricewaterhouseCoopers LLP confirming that they
are a registered public accounting firm and independent public accountants within the
meaning of the Securities Laws and substantially in the form of Schedule D-2 hereto (except
that, in any letter dated a Closing Date, the specified date referred to in Schedule D-2
hereto shall be a date no more than three days prior to such Closing Date).
(b) Filing of Prospectus. The Final Prospectus shall have been filed with the
Commission in accordance with the Rules and Regulations and Section 5(a) hereof. No stop
order suspending the effectiveness of the Registration Statement or of any part thereof
shall have been issued and no proceedings for that purpose shall have been instituted or,
to the knowledge of any Selling Stockholder, the Company or any Underwriter, threatened by
the Commission.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations or business of (x) with respect to all matters pertaining to the Company and its
subsidiaries, the Company and its subsidiaries, taken as a whole or (y) with respect to all
matters pertaining to Target and its subsidiaries, the Company and its subsidiaries taken
as a whole after giving pro forma effect to the Merger, which, in the judgment of the
Representatives, is material and adverse and makes it impractical or inadvisable to market
the Offered Securities; (ii) any downgrading in the rating assigned to the Company or the
debt securities or preferred stock, if any, of the Company by any nationally recognized
statistical rating organization, or any public announcement that any such organization has
under surveillance or review, with possible negative implications, any such rating assigned
to the Company or the debt securities or preferred stock, if any, of the Company or any
announcement that the Company has been placed on negative outlook; (iii) any change in
either U.S. or international financial, political or economic conditions or currency
exchange rates or exchange controls the effect of which is such as to make it, in the
judgment of the Representatives, impractical to market or to enforce contracts for the sale
of the Offered Securities, whether in the primary market or in respect of dealings in the
secondary market; (iv) any suspension or material limitation of trading in securities
generally on the New York Stock Exchange or the NASDAQ Stock Market, or any setting of
minimum or maximum prices for trading on such exchange; (v) or any suspension of trading of
any securities of the Company on any exchange or in the over-the-counter market; (vi) any
banking moratorium declared by any U.S. Federal or New York authorities; (vii) any major
disruption of
21
settlements of securities, payment, or clearance services in the United States or (viii) any
attack on, outbreak or escalation of hostilities or act of terrorism involving the United States,
any declaration of war by Congress or any other national or international calamity or emergency
if, in the judgment of the Representatives, the effect of any such attack, outbreak, escalation,
act, declaration, calamity or emergency is such as to make it impractical or inadvisable to market
the Offered Securities or to enforce contracts for the sale of the Offered Securities.
(d) Opinion of Counsel for the Company. The Representatives shall have received an opinion,
dated such Closing Date, of Sidley Austin LLP, counsel for the Company, in the form attached
hereto as Schedule H.
(e) Opinion of Counsel for Target. The Representatives shall have received an opinion, dated
such Closing Date, of King & Spalding LLP, counsel for Target, in the form attached hereto as
Schedule I.
(f) Opinion of Counsel for Selling Stockholders. The Representatives shall have received
opinions, dated such Closing Date, of Allen & Overy LLP, counsel for the Selling Stockholders in
the United States and in the United Kingdom, respectively, in the form attached hereto as
Schedules J-1 and J-2.
(g) Opinion of Counsel for Underwriters. The Representatives shall have received from Skadden,
Arps, Slate, Meagher & Flom LLP, counsel for the Underwriters, such opinion or opinions, dated such
Closing Date, with respect to such matters as the Representatives may require, and the Selling
Stockholders and the Company shall have furnished to such counsel such documents as they request
for the purpose of enabling them to pass upon such matters.
(h) Officers Certificate of Company. The Representatives shall have received a certificate,
dated such Closing Date, of the chief executive officer and chief financial officer of the Company
in which such officers shall state that: (i) the representations and warranties of the Company in
this Agreement are true and correct as of the Closing Date in all material respects, provided that
if any representation and warranty includes a materiality qualification (including the words
Material Adverse Effect, material, in all material respects and like words) then such
representation and warranty shall be true and correct in all respects; the Company has complied
with all agreements required on its part to be performed hereunder at or prior to such Closing Date
and satisfied all conditions on its part required to be satisfied hereunder at or prior to such
Closing Date; (ii) no stop order suspending the effectiveness of the Registration Statement has
been issued and no proceedings for that purpose have been instituted or, to the best of their
knowledge and after reasonable investigation, are contemplated or threatened by the Commission; and
(iii) subsequent to the date of the most recent financial statements in the General Disclosure
Package, there has been no material adverse change in the condition (financial or otherwise),
results of operations or business of (x) the Company and its subsidiaries taken as a whole or (y)
to the knowledge of the Company and other than as set forth in the Target Disclosure Package, the
Target and its subsidiaries taken as a whole, except in each case as set forth in the General
Disclosure Package or as described in such certificate.
(i) Directors Certificates of Selling Stockholders. The Representatives shall have received
a certificate, dated such Closing Date, of a director of each of the Selling Stockholders in which
such director shall state that: (i) the representations and warranties of the respective Selling
Stockholder in this Agreement are true and correct in all material respects, provided that if any
representation and warranty includes a materiality qualification (including the words Material
Adverse Effect, material, in all material respects and like words) then such representation
and warranty shall be true and correct in all respects; and (ii) the respective Selling
Stockholder has complied with all agreements required on its part to
22
be performed hereunder at or prior to such Closing Date and satisfied all conditions
required on its part to be satisfied hereunder at or prior to such Closing Date.
(j) Lock-Up Agreements. The lock-up agreements, each substantially in the form set
forth in Schedule E hereto, between the Representatives, on the one hand, and the executive
officers, directors and director-nominees of the Company (as set forth on Schedule
F), on the other hand, relating to sales and certain other dispositions of Securities,
delivered to the Representatives prior to the date hereof, shall be in full force and
effect.
(k) Chief Financial Officers Certificate. The Representatives shall have received on
and as of the First Closing Date a certificate of the chief financial officer of the
Company (i) confirming that the chief financial officer is familiar with the books and
records and internal accounting practices, policies, procedures and controls of the Company
and has had responsibility for accounting matters with respect to the Company, (ii)
confirming that the chief financial officer has reviewed the identified information, which
is included in the General Disclosure Package and (iii) attesting to the accuracy of the
identified information.
The Selling Stockholders and the Company will furnish the Representatives with such conformed
copies of such opinions, certificates, letters and documents as the Representatives reasonably
request. The Representatives may in their sole discretion waive on behalf of the Underwriters
compliance with any conditions to the obligations of the Underwriters hereunder, whether in respect
of an Optional Closing Date or otherwise.
8. Indemnification and Contribution.
(a) Indemnification of Underwriters by the Company. The Company will indemnify and
hold harmless each Underwriter, its partners, members, directors, officers, employees,
agents, affiliates and each person, if any, who controls such Underwriter within the
meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a Company
Indemnified Party), against any and all losses, claims, damages or liabilities, joint or
several, to which such Company Indemnified Party may become subject, under the Act, the
Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact
contained in any part of the Registration Statement at any time, any Statutory Prospectus
as of any time, the Final Prospectus, any Issuer Free Writing Prospectus or any other
materials reviewed and consented to by the Company and included on Annex I hereto, or arise
out of or are based upon the omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein not misleading, and will
reimburse each Company Indemnified Party for any legal or other expenses reasonably
incurred by such Company Indemnified Party in connection with investigating or defending
against any loss, claim, damage, liability, action, litigation, investigation or proceeding
whatsoever (whether or not such Company Indemnified Party is a party thereto), whether
threatened or commenced, and in connection with the enforcement of this provision with
respect to any of the above as such expenses are incurred; provided, however, that the
Company will not be liable in any such case to the extent that any such loss, claim, damage
or liability arises out of or is based upon an untrue statement or alleged untrue statement
in or omission or alleged omission from any of such documents in reliance upon and in
conformity with written information furnished to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood and agreed that the only
such information furnished by any Underwriter consists of the information specified in
subsection (c) below.
23
(b) Indemnification of Underwriters by Selling Stockholders. The Selling Stockholders, jointly
and severally, will indemnify and hold harmless each Underwriter, its partners, members, directors,
officers, employees, agents, affiliates and each person, if any, who controls such Underwriter
within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (each, a Selling
Stockholders Indemnified Party), against any and all losses, claims, damages or liabilities, joint
or several, to which such Selling Stockholders Indemnified Party may become subject, under the Act,
the Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact contained in any part of
any Registration Statement at any time, any Statutory Prospectus as of any time, the Final
Prospectus or any Issuer Free Writing Prospectus, or arise out of or are based upon the omission or
alleged omission of a material fact required to be stated therein or necessary to make the
statements therein not misleading, in each case to the extent, but only to the extent, that such
untrue statement or alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by Misys specifically for
use therein, which information consists of the disclosure identified in Schedule G hereto
(the Selling Stockholder Information), and will reimburse each Selling Stockholders Indemnified
Party for any legal or other expenses reasonably incurred by such Selling Stockholders Indemnified
Party in connection with investigating or defending against any loss, claim, damage, liability,
action, litigation, investigation or proceeding whatsoever (whether or not such Selling
Stockholders Indemnified Party is a party thereto), whether threatened or commenced, and in
connection with the enforcement of this provision with respect to the above as such expenses are
incurred; provided, however, that the Selling Stockholders will not be liable in any such case to
the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue
statement or alleged untrue statement in or omission or alleged omission from any of such documents
in reliance upon and in conformity with written information furnished to the Company by any
Underwriter through the Representatives specifically for use therein, it being understood and
agreed that the only such information furnished by any Underwriter consists of the information
specified in subsection (c) below. The liability of the Selling Stockholders under the indemnity
agreement contained in this subsection (c) shall be limited to an amount equal to the aggregate
price paid to the Selling Stockholders pursuant to Section 3 of this Agreement.
(c) Indemnification of Company and Selling Stockholders. Each Underwriter will severally and
not jointly indemnify and hold harmless the Company, each of its directors and each of its officers
who signs a Registration Statement, the Selling Stockholders, Misys and each person, if any, who
controls each of them within the meaning of Section 15 of the Act or Section 20 of the Exchange Act
and each Selling Stockholder (each, an Underwriter Indemnified Party), against any losses,
claims, damages or liabilities to which such Underwriter Indemnified Party may become subject,
under the Act, the Exchange Act, other Federal or state statutory law or regulation or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of
or are based upon any untrue statement or alleged untrue statement of any material fact contained
in any part of the Registration Statement at any time, any Statutory Prospectus as of any time, the
Final Prospectus, or any Issuer Free Writing Prospectus, or arise out of or are based upon the
omission or the alleged omission of a material fact required to be stated therein or necessary to
make the statements therein not misleading, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company by such
Underwriter through the Representatives specifically for use therein, and will reimburse any legal
or other expenses reasonably incurred by such Underwriter Indemnified Party in connection with
investigating or defending against any such loss, claim, damage, liability, action, litigation,
investigation or proceeding whatsoever (whether or not such Underwriter Indemnified Party is a
party thereto), whether threatened or commenced, based upon any such untrue statement or omission,
or any such alleged untrue statement or omission as such expenses are incurred, it being understood
and agreed that the only such information furnished by any Underwriter consists of the following
information in the Final Prospectus furnished on behalf of each Underwriter: the concession figure
appearing in the fourth paragraph under the caption Underwriting and the information contained in
the first sentence of the twelfth paragraph concerning stabilizing transactions under the caption
Underwriting.
24
(d) Actions against Parties; Notification. Promptly after receipt by an indemnified party
under this Section of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under subsection (a), (b) or
(c) above, notify the indemnifying party of the commencement thereof; but the failure to notify the
indemnifying party shall not relieve it from any liability that it may have under subsection (a),
(b) or (c) above except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided further that the
failure to notify the indemnifying party shall not relieve it from any liability that it may have
to an indemnified party otherwise than under subsection (a), (b) or (c) above. In case any such
action is brought against any indemnified party and it notifies the indemnifying party of the
commencement thereof, the indemnifying party will be entitled to participate therein and, to the
extent that it may wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying party), and after notice
from the indemnifying party to such indemnified party of its election so to assume the defense
thereof, the indemnifying party will not be liable to such indemnified party under this Section for
any legal or other expenses subsequently incurred by such indemnified party in connection with the
defense thereof other than reasonable costs of investigation. No indemnifying party shall, without
the prior written consent of the indemnified party, effect any settlement of any pending or
threatened action in respect of which any indemnified party is or could have been a party and
indemnity could have been sought hereunder by such indemnified party unless such settlement (i)
includes an unconditional release of such indemnified party from all liability on any claims that
are the subject matter of such action and (ii) does not include a statement as to, or an admission
of, fault, culpability or a failure to act by or on behalf of an indemnified party.
(e) Contribution. If the indemnification provided for in this Section is unavailable or
insufficient to hold harmless an indemnified party under subsection (a), (b) or (c) above, then
each indemnifying party shall contribute to the amount paid or payable by such indemnified party as
a result of the losses, claims, damages or liabilities referred to in subsection (a), (b) or (c)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
Company and the Selling Stockholders on the one hand and the Underwriters on the other from the
offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative
benefits referred to in clause (i) above but also the relative fault of the Company and the Selling
Stockholders on the one hand and the Underwriters on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as well as any other
relevant equitable considerations. The relative benefits received by the Company and the Selling
Stockholders on the one hand and the Underwriters on the other shall be deemed to be in the same
proportion as the total net proceeds from the offering (before deducting expenses) received by the
Selling Stockholders bear to the total underwriting discounts and commissions received by the
Underwriters. The relative fault shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company, the Selling Stockholders or
the Underwriters and the parties relative intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission. The amount paid by an indemnified party as
a result of the losses, claims, damages or liabilities referred to in the first sentence of this
subsection (e) shall be deemed to include any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any action or claim which is the
subject of this subsection (e). Notwithstanding the provisions of this subsection (e), no
Underwriter shall be required to contribute any amount in excess of the amount by which the total
price at which the Securities underwritten by it and distributed to the public were offered to the
public exceeds the amount of any damages which such Underwriter has otherwise been required to pay
by reason of such untrue or alleged untrue statement or omission or alleged omission. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.
The Underwriters obligations in this subsection (e) to contribute are several in proportion to
their respective underwriting obligations and not joint. The Company, the Selling Stockholders and
the Underwriters agree that it would not be just and equitable if contribution pursuant to this
Section 8(e) were determined by pro rata allocation
25
(even if the Underwriters were treated as one entity for such purpose) or by any other
method of allocation which does not take account of the equitable considerations referred
to in this Section 8(e).
9. Default of Underwriters. If any Underwriter or Underwriters default in their obligations to
purchase Offered Securities hereunder on either the First or any Optional Closing Date and the
aggregate number of shares of Offered Securities that such defaulting Underwriter or Underwriters
agreed but failed to purchase does not exceed 10% of the total number of shares of Offered
Securities that the Underwriters are obligated to purchase on such Closing Date, the
Representatives may make arrangements satisfactory to the Company and the Selling Stockholders for
the purchase of such Offered Securities by other persons, including any of the Underwriters, but if
no such arrangements are made by such Closing Date, the non-defaulting Underwriters shall be
obligated severally, in proportion to their respective commitments hereunder, to purchase the
Offered Securities that such defaulting Underwriters agreed but failed to purchase on such Closing
Date. If any Underwriter or Underwriters so default and the aggregate number of shares of Offered
Securities with respect to which such default or defaults occur exceeds 10% of the total number of
shares of Offered Securities that the Underwriters are obligated to purchase on such Closing Date
and arrangements satisfactory to the Representatives, the Company and the Selling Stockholders for
the purchase of such Offered Securities by other persons are not made within 36 hours after such
default, this Agreement will terminate without liability on the part of any non-defaulting
Underwriter, the Company or the Selling Stockholders, except as provided in Section 10 (provided
that if such default occurs with respect to Optional Securities after the First Closing Date, this
Agreement will not terminate as to the Firm Securities or any Optional Securities purchased prior
to such termination). As used in this Agreement, the term Underwriter includes any person
substituted for an Underwriter under this Section. Nothing herein will relieve a defaulting
Underwriter from liability for its default.
10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company or its officers and of
the several Underwriters set forth in or made pursuant to this Agreement will remain in full force
and effect, regardless of any investigation, or statement as to the results thereof, made by or on
behalf of any Underwriter, the Company or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment for the Offered
Securities. If the purchase of the Offered Securities by the Underwriters is not consummated due to
(i) the failure to achieve the conditions precedent provided for in Sections 7(a), 7(b), 7(c)(i)
(unless the condition in 7(h) is satisfied), 7(c)(ii), 7(c)(v), 7(d), 7(e), 7(h), 7(j) or 7(k),
then the Company, or (ii) the failure of the Selling Stockholders to deliver the Securities as
provided for in Section 3 or the failure to achieve the conditions precedent provided for in 7(f)
or 7(i), then the Selling Stockholders jointly and severally, will reimburse the Underwriters for
all out-of-pocket expenses (including fees and disbursements of counsel) reasonably incurred by
them in connection with the offering of the Offered Securities, and the respective obligations of
the Company and the Underwriters pursuant to Section 8 hereof shall remain in effect. In addition,
if any Offered Securities have been purchased hereunder, the representations and warranties in
Section 2 and all obligations under Section 5 shall also remain in effect.
11. Notices. All communications hereunder will be in writing and, if sent to the Underwriters,
will be mailed, delivered or telegraphed and confirmed to the Representatives, c/o (a) Credit
Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, NY 10010-3629, Attention: LCD-IBD,
(b) Barclays Capital Inc., 745 Seventh Avenue, New York, NY 10019, Attention: Syndicate
Registration, with a copy to the Director of Litigation, Office of the General Counsel, (c) J.P.
Morgan Securities Inc., 383 Madison Avenue, New York, NY 10179, Attention: Equity Syndicate Desk
and (d) UBS Securities LLC, 299 Park Avenue, New York, NY 10171-0026; or, if sent to the Company,
will be mailed, delivered or telegraphed and confirmed to it at 222 Merchandise Mart Plaza, Suite
2024, Chicago, Illinois 60654, Attention: Corporate Secretary; or, if sent to the Selling
Stockholders, will be mailed, delivered or telegraphed and confirmed to them at One Kingdom Street,
Paddington, London W2 6BL, United Kingdom, Attention: General Counsel with a copy to Allen & Overy
LLP, 1221 Avenue of the Americas, New York, NY 10020, Attention: A. Peter Harwich; provided,
however, that any notice to an Underwriter pursuant to Section 8 will be mailed, delivered or
telegraphed and confirmed to such Underwriter.
26
12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the officers and directors and controlling persons
referred to in Section 8, and no other person will have any right or obligation hereunder.
13. Representation of Underwriters. The Representatives will act for the several Underwriters
in connection with this financing and this Agreement, and any action under this Agreement taken by
the Representatives jointly will be binding upon all the Underwriters.
14. Research Analyst Independence. The Company and the Selling Stockholders acknowledge that
the Underwriters research analysts and research departments are required to be independent from
their respective investment banking divisions and are subject to certain regulations and internal
policies, and that such Underwriters research analysts may hold views and make statements or
investment recommendations and/or publish research reports with respect to the Company and/or the
offering that differ from the views of their respective investment banking divisions. The Company
and the Selling Stockholders hereby waive and release, to the fullest extent permitted by law, any
claims that the Company or the Selling Stockholders may have against the Underwriters with respect
to any conflict of interest that may arise from the fact that the views expressed by their
independent research analysts and research departments may be different from or inconsistent with
the views or advice communicated to the Company or the Selling Stockholders by such Underwriters
investment banking divisions. The Company and the Selling Stockholders acknowledge that each of the
Underwriters is a full service securities firm and as such from time to time, subject to applicable
securities laws, may effect transactions for its own account or the account of its customers and
hold long or short positions in debt or equity securities of the companies that may be the subject
of the transactions contemplated by this Agreement.
15. Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all such counterparts shall together constitute one and the
same Agreement.
16. Absence of Fiduciary Relationship. The Company and the Selling Stockholders acknowledge
and agree that:
(a) No Other Relationship. The Representatives have been retained solely to act as
underwriters in connection with the sale of the Offered Securities and that no fiduciary,
advisory or agency relationship between the Company or the Selling Stockholders, on the one
hand, and the Representatives, on the other, has been created in respect of any of the
transactions contemplated by this Agreement or the Final Prospectus, irrespective of
whether the Representatives have advised or are advising the Company or the Selling
Stockholders on other matters;
(b) Arms Length Negotiations. The price of the Offered Securities set forth in this
Agreement was established by the Company and the Selling Stockholders following discussions
and arms-length negotiations with the Representatives and the Company and the Selling
Stockholders are capable of evaluating and understanding and understand and accept the
terms, risks and conditions of the transactions contemplated by this Agreement;
(c) Absence of Obligation to Disclose. The Company and the Selling Stockholders have
been advised that the Representatives and their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Company or the
Selling Stockholders and that the Representatives have no obligation to disclose such
interests and transactions to the Company or the Selling Stockholders by virtue of any
fiduciary, advisory or agency relationship; and
27
(d) Waiver. The Company and the Selling Stockholders waive, to the fullest extent
permitted by law, any claims they may have against the Representatives for breach of
fiduciary duty or alleged breach of fiduciary duty and agree that the Representatives shall
have no liability (whether direct or indirect) to the Company or the Selling Stockholders
in respect of such a fiduciary duty claim or to any person asserting a fiduciary duty claim
on behalf of or in right of the Company, including stockholders, employees or creditors of
the Company.
17. Applicable Law. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR
RELATED TO THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF, THE
STATE OF NEW YORK WITHOUT REGARD TO ITS CHOICE OF LAW PROVISIONS.
The Company and the Selling Stockholders hereby submit to the non-exclusive jurisdiction of
the Federal and state courts in the Borough of Manhattan in The City of New York in any suit or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
The Company and the Selling Stockholders irrevocably and unconditionally waive any objection to the
laying of venue of any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby in Federal and state courts in the Borough of Manhattan in The
City of New York and irrevocably and unconditionally waive and agree not to plead or claim in any
such court that any such suit or proceeding in any such court has been brought in an inconvenient
forum.
If the foregoing is in accordance with the Representatives understanding of our agreement,
kindly sign and return to the Company one of the counterparts hereof, whereupon it will become a
binding agreement between the Company, the Selling Stockholders and the several Underwriters in
accordance with its terms.
[Remainder of this page intentionally left blank]
28
|
|
|
|
|
|
Very truly yours,
Allscripts-Misys Healthcare Solutions, Inc.
|
|
|
By: |
/s/ Lee Shapiro
|
|
|
|
Name: |
Lee Shapiro |
|
|
|
Title: |
President |
|
|
|
Kapiti Limited
|
|
|
By: |
/s/ Nick Farrimond
|
|
|
|
Name: |
Nick Farrimond |
|
|
|
Title: |
Director |
|
|
|
Act Sigmex Limited
|
|
|
By: |
/s/ Nick Farrimond
|
|
|
|
Name: |
Nick Farrimond |
|
|
|
Title: |
Director |
|
|
The foregoing Underwriting Agreement is hereby confirmed and accepted as of the date first
above written.
|
|
|
|
|
Credit Suisse Securities (USA) LLC |
|
|
|
|
|
|
|
By:
|
|
/s/ C. Cullom Davis |
|
|
|
|
|
|
|
|
|
Name: C. Cullom Davis |
|
|
|
|
Title: Managing Director |
|
|
|
|
|
|
|
Barclays Capital Inc. |
|
|
|
|
|
|
|
By:
|
|
/s/ Mark D. Hanson |
|
|
|
|
|
|
|
|
|
Name: Mark D. Hanson |
|
|
|
|
Title: Managing Director |
|
|
|
|
|
|
|
J.P. Morgan Securities Inc. |
|
|
|
|
|
|
|
By:
|
|
/s/ Ted Omlid |
|
|
|
|
|
|
|
|
|
Name: Ted Omlid |
|
|
|
|
Title: Vice President |
|
|
|
|
|
|
|
UBS Securities LLC |
|
|
|
|
|
|
|
By:
|
|
/s/ M. Robert DiGia |
|
|
|
|
|
|
|
|
|
Name: M. Robert DiGia |
|
|
|
|
Title: Managing Director |
|
|
|
|
|
|
|
By:
|
|
/s/ Brice Baradel |
|
|
|
|
|
|
|
|
|
Name: Brice Baradel |
|
|
|
|
Title: Executive Director |
|
|
Acting on behalf of themselves and as the Representatives of the several Underwriters
29
SCHEDULE A
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of |
|
|
Number of Firm |
|
Optional |
|
|
Securities |
|
Securities |
Selling Stockholder |
|
to be Sold |
|
to be Sold |
Kapiti Limited |
|
|
270,000 |
|
|
|
40,500 |
|
ACT Sigmex Limited |
|
|
26,730,000 |
|
|
|
4,009,500 |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
27,000,000 |
|
|
|
4,050,000 |
|
|
|
|
|
|
|
|
|
|
30
SCHEDULE B
|
|
|
|
|
|
|
Number of |
|
|
Firm Securities |
Underwriter |
|
to be Purchased |
Credit Suisse Securities (USA) LLC |
|
|
10,758,118 |
|
Barclays Capital Inc. |
|
|
9,209,391 |
|
J.P. Morgan Securities Inc. |
|
|
4,224,554 |
|
UBS Securities LLC |
|
|
2,807,937 |
|
|
|
|
|
|
Total |
|
|
27,000,000 |
|
|
|
|
|
|
31
SCHEDULE C
1. |
|
General Use Free Writing Prospectuses (included in the General Disclosure Package) |
|
|
|
General Use Issuer Free Writing Prospectus includes each of the following documents: |
None
2. |
|
Other Information Included in the General Disclosure Package |
The following information is also included in the General Disclosure Package:
Price per share to the public: $17.05
Number of shares of sold to the public: 27,000,000 (excluding over-allotment option of
4,050,000)
3. |
|
Permitted Free Writing Prospectuses |
None
32
SCHEDULE D-1
ACCOUNTANTS COMFORT LETTER WITH RESPECT TO COMPANY
33
SCHEDULE D-2
ACCOUNTANTS COMFORT LETTER WITH RESPECT TO TARGET
34
SCHEDULE E
[FORM OF LOCK-UP AGREEMENT]
August ___, 2010
Credit Suisse Securities (USA) LLC
Barclays Capital Inc.
J.P. Morgan Securities Inc.
UBS Securities LLC,
As Representatives of the Several Underwriters,
c/o Credit Suisse Securities (USA) LLC,
Eleven Madison Avenue,
New York, NY 10010-3629
Dear Sirs:
The undersigned understands that you, as Representatives of the several Underwriters named in
Schedule B to the Underwriting Agreement (the Underwriters), propose to enter into an
Underwriting Agreement (the Underwriting Agreement) with Kapiti Limited and ACT Sigmex Limited,
each a limited company incorporated under the laws of England and Wales (together, the Selling
Stockholders), and Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation (the
Company), providing for the public offering (the Public Offering) of common stock, par value
$0.01 per share, of the Company (the Securities). Capitalized terms used herein and not otherwise
defined shall have the meanings set forth in the Underwriting Agreement.
As an inducement to the Underwriters to execute the Underwriting Agreement, the undersigned
hereby agrees that during the period specified in the following paragraph (the Lock-Up Period),
the undersigned will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or
indirectly, any Securities or securities convertible into or exchangeable or exercisable for any
Securities, enter into a transaction which would have the same effect, or enter into any swap,
hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of
ownership of the Securities, whether any such aforementioned transaction is to be settled by
delivery of the Securities or such other securities, in cash or otherwise, or publicly disclose the
intention to make any such offer, sale, pledge or disposition, or to enter into any such
transaction, swap, hedge or other arrangement, without, in each case, your prior written consent.
In addition, the undersigned agrees that, without your prior written consent, it will not, during
the Lock-Up Period, make any demand for or exercise any right with respect to, the registration of
any Securities or any security convertible into or exercisable or exchangeable for the Securities.
The Lock-Up Period will commence on the date of this Lock-Up Agreement and continue and
include the date 90 days after the public offering date set forth on the final prospectus used to
sell the Securities (the Public Offering Date) pursuant to the Underwriting Agreement.
Any Securities received upon exercise of options granted to the undersigned will also be
subject to this Lock-Up Agreement. Any Securities acquired by the undersigned in the open market
will not be subject to this Lock-Up Agreement. A transfer of Securities may be made (i) to a family
member or trust, (ii) by bona fide gift for charitable or estate planning purposes, (iii) by will
or by operation of law, or (iv) in connection with the satisfaction of withholding obligations in
connection with the vesting of restricted stock units (including performance-based restricted stock
units) awarded by the Company under an equity compensation plan; provided, that in the case of
clauses (i), (ii) and (iii), the transferee agrees to be bound in writing by the terms of this
Lock-Up Agreement prior to such transfer, such transfer shall not involve a disposition for value
and no filing by any party (donor, donee, transferor or transferee) under the Securities Exchange
Act of 1934 (the Exchange Act) shall be required or shall be voluntarily made in connection with
such transfer (other than a filing on a Form 5 made after the expiration of the Lock-Up Period).
In furtherance of the foregoing, the Company and its transfer agent and registrar are hereby
authorized to decline to make any transfer of shares of Securities if such transfer would
constitute a violation or breach of this Lock-Up Agreement.
35
This Lock-Up Agreement shall be binding on the undersigned and the successors, heirs, personal
representatives and assigns of the undersigned. This Lock-Up Agreement shall lapse and become null
and void if (i) the Public Offering Date shall not have occurred on or before September 16, 2010,
(ii) prior to the execution of the Underwriting Agreement, upon written notice delivered by the
Company or the Selling Stockholders to the Underwriters of their determination not to proceed with
the Public Offering prior to the end of the Lock-Up Period or (iii) following execution of the
Underwriting Agreement, the termination of the Underwriting Agreement before the sale of any
Securities to the Underwriters. This Lock-Up Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York.
|
|
|
|
|
|
|
|
|
Very truly yours, |
|
|
|
|
|
|
|
|
|
|
|
Name: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Title: |
|
|
|
|
|
|
|
|
|
|
|
36
SCHEDULE F
LIST OF EXECUTIVE OFFICERS AND DIRECTORS OF THE COMPANY
SUBJECT TO LOCK-UP AGREEMENTS
Directors
Michael Lawrie
Kelly J. Barlow
Sir Dominic Cadbury
Cory A. Eaves
Marcel L. Gus Gamache
Glen E. Tullman
Philip M. Pead
Michael J. Kluger
Philip D. Green
John G. King
Stephen Wilson
Edward A. Kangas
Eugene V. Fife
Officers (other than Directors who serve as Officers)
William J. Davis
Lee A. Shapiro
Eileen McPartland
Jeff A. Surges
Kent Alexander
Diane K. Adams
37
SCHEDULE G
SELLING STOCKHOLDER INFORMATION
1. The following information set forth under the caption Selling Stockholders in
the Final
Prospectus:
(a) the first and third sentences of the second paragraph;
(b) the number of shares of the Companys common stock (i) beneficially owned by the
Selling Stockholders prior to the offering being made pursuant to this Agreement, (ii) being
sold in such offering, (iii) subject to the Underwriters over-allotment option and (iv)
beneficially owned by the Selling Stockholders after such offering assuming full exercise of
the Underwriters over-allotment option, each as set forth in the table; and
(c) the third sentence of the first footnote, the second footnote and the second and
third sentences of the fourth footnote to such table.
38
SCHEDULE H
FORM OF OPINION OF SIDLEY AUSTIN LLP
1. The Company has been duly incorporated and is a corporation validly existing and in good
standing under the laws of the State of Delaware.
2. The Company has corporate power and authority to conduct its business as
described in the
Prospectus.
3. The authorized equity capitalization of the Company is as set forth in the
Prospectus Supplement.
4. Each of the Underwriting Agreement, the Merger Agreement dated June 9, 2010
(the Merger
Agreement) among the Company, Eclipsys Corporation (Eclipsys) and Arsenal Merger Corp., and the
Framework Agreement dated June 9, 2010, as amended on July 26, 2010 (as amended, the Framework
Agreement) between Misys plc (Misys) and the Company, has been duly authorized, executed and
delivered by the Company.
5. The Selling Stockholders Shares have been duly authorized by the Company and are validly
issued, fully paid and non-assessable.
6. No consent, approval, filing, authorization or other order of any federal regulatory body,
federal administrative agency or other federal governmental body of the United States of America or
any state regulatory body, state administrative agency or other state governmental body is required
under Applicable Laws for the execution and delivery by the Company of the Underwriting Agreement
and the performance of its obligations thereunder.
7. The execution and delivery by the Company of the Underwriting Agreement and the performance
of its obligations thereunder and the sale of the Selling Stockholders Shares do not (a) violate
the certificate of incorporation or by-laws of the Company, (b) to our knowledge, result in a
violation by the Company of any Applicable Laws, (c) result in a violation by the Company of any
order or decree listed in Schedule I hereto, or (d) result in any breach of, or constitute a
default under, any of the agreements or instruments listed in Schedule II hereto.
8. The Registration Statement has become effective under the 1933 Act; each of the
Preliminary
Prospectus and the Prospectus has been filed pursuant to Rule 424(b) of the 1933 Act Regulations
within the required time period; and, to our knowledge, no stop order suspending the effectiveness
of the Registration Statement has been issued under the 1933 Act and no proceedings for that
purpose have been instituted or are pending by the Commission.
9. The Registration Statement, as of the date it first became effective, the
Registration Statement
(including the information in the Prospectus that was omitted from the Registration Statement at
the time it first became effective but that is deemed, pursuant to Rule 430B(f) of the 1933 Act
Regulations, to be part of and included in the Registration Statement), at August 16, 2010, and the
Prospectus, as of the date of the Prospectus Supplement, each appeared on its face to be
appropriately responsive in all material respects relevant to the offering of the Selling
Stockholders Shares to the applicable requirements of the 1933 Act and the 1933 Act Regulations
for registration statements on Form S-3 or related prospectuses, as the case may be, except in each
case that we express
39
no opinion with respect to (A) financial statements and schedules and other financial or
statistical data included or incorporated by reference therein or omitted therefrom and (B) the
Incorporated Documents.
10. The Incorporated Documents, as of the respective dates they were filed with the
Commission, each appeared on its face to be appropriately responsive in all material respects to
the applicable requirements of the 1934 Act and the rules and regulations of the Commission
thereunder applicable thereto, except in each case that we express no opinion with respect to
financial statements and schedules and other financial or statistical data included or incorporated
by reference therein or omitted therefrom.
11. The statements in the Prospectus under the caption Description of Capital Stock, to the
extent that such statements purport to describe certain provisions of the DGCL as currently in
effect or of the Companys certificate of incorporation, after giving effect to the Fourth Amended
and Restated Certificate of Incorporation of the Company attached as Exhibit 2 to the Framework
Agreement, accurately describe such provisions in all material respects, except that we express no
opinion in this paragraph with respect to any statements regarding the number of outstanding shares
of Common Stock.
12. The statements in the Prospectus under the caption The Eclipsys Merger, to the extent
that such statements purport to describe certain provisions of the Merger Agreement and Framework
Agreement as currently in effect accurately describe such provisions in all material respects.
13. The statements in the Prospectus under the caption Certain U.S. Federal Tax Consequences
for Non-U.S. Holders, to the extent that such statements purport to describe matters of United
States federal income tax law and regulations or legal conclusions with respect thereto, accurately
describe such matters in all material respects.
14. The Company is not and, after giving effect to the offering and sale of the Selling
Stockholders Shares, will not be required to be registered as an investment company as defined
in the 1940 Act.
In acting as counsel to the Company in connection with the transactions described in the first
paragraph above, we have participated in conferences with officers and other representatives of the
Company, representatives of the independent public accountants for the Company and your
representatives and counsel, at which conferences certain contents of the Registration Statement,
the Preliminary Prospectus and the Prospectus and related matters were discussed. Although we are
not passing upon or assuming responsibility for the accuracy, completeness or fairness of the
statements included or incorporated by reference in or omitted from the Registration Statement, the
Preliminary Prospectus, the Prospectus or the Incorporated Documents and have made no independent
check or verification thereof (except as set forth in paragraphs (xi), (xii) and (xiii) above),
based upon our participation in such conferences, no facts have come to our attention that have
caused us to believe that, insofar as is relevant to the offering of the Selling Stockholders
Shares:
1. the Registration Statement, at the time it first became effective, or the Registration
Statement (including the information in the Prospectus that was omitted from the Registration
Statement at the time it first became effective but that is deemed, pursuant to Rule 430B(f) of the
1933 Act Regulations, to be part of and included in the Registration Statement), at August 16,
2010, contained an untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary to make the statements therein not misleading,
40
2. the Preliminary Prospectus, as of 6:00 p.m. (New York City time) on August 16, 2010,
included an untrue statement of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading, or
3. the Prospectus, as of the date of the Prospectus Supplement or on the date hereof, included
or includes an untrue statement of a material fact or omitted or omits to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading,
except in each case that we express no belief and make no statement with respect to financial
statements and schedules and other financial or statistical data included or incorporated by
reference in or omitted from the Registration Statement, the Preliminary Prospectus, the Prospectus
or the Incorporated Documents.
41
FORM OF OPINION OF ALLSCRIPTS GENERAL COUNSEL
1. Each subsidiary of the Company is validly existing and in good standing under the laws of
the jurisdiction of its incorporation or formation, with power and authority to own, lease and
operate its properties and to conduct its business as described in the Prospectus.
2. There are no contracts, agreements or understandings between the Company and any person
granting such person registration rights or pre-emptive rights that are not described in the
Prospectus.
3. The Selling Stockholders Shares conform to the description of such Selling Stockholders
Shares contained in the Prospectus and, to my knowledge, none of the outstanding shares of capital
stock of the Company have been issued in violation of any preemptive or similar rights of any
security holder.
4. The statements in the Companys Annual Report on 10-K for the fiscal year ended May 31,
2010 under the risk factor captioned We are subject to a number of existing laws, regulations and
industry initiatives, non-compliance with certain of which could materially adversely affect our
operations or otherwise adversely affect our business, financial condition and results of
operations, and we are susceptible to a changing regulatory environment, to the extent such
statements purport to describe legal conclusions with respect thereto, have been reviewed by me
and, to my knowledge, accurately describe such matters in all material respects.
42
SCHEDULE I
FORM OF OPINION OF KING & SPALDING LLP
AS COUNSEL FOR THE TARGET
1. Target is a corporation existing and in good standing under the laws of the State of
Delaware, and is duly qualified to do business as a foreign corporation in good standing in the
State of Georgia.
2. Target has corporate power and authority to conduct its business as described
in the Prospectus.
43
SCHEDULE J-1
FORM OF OPINION OF ALLEN & OVERY LLP
AS COUNSEL FOR THE SELLING STOCKHOLDERS IN THE UNITED STATES
1. The Underwriting Agreement has been duly executed and delivered by the Selling Stockholders
insofar as New York law is concerned.
2. The execution and delivery by the Selling Stockholders of the Underwriting Agreement and
the performance by the Selling Stockholders of their respective obligations thereunder and the
consummation of the transactions contemplated thereby do not and will not result in any violation
of any Applicable Laws (other than the federal securities laws of the United States as to which we
express no opinion) or contravene any of the terms or provisions of the Material Agreements, in
each case except for such violations or contraventions which would not materially and adversely
affect the ability of the Selling Stockholders to perform their respective obligations under the
Underwriting Agreement.
3. No authorization, approval or consent of, and no filing or registration with, any
governmental or regulatory authority or agency of the United States or of the State of New York is
required under Applicable Laws on the part of the Selling Stockholders for the execution, delivery
or performance by the Selling Stockholders of the Underwriting Agreement other than those required
under the Act or the Exchange Act, or the rules and regulations thereunder, and other than those
which have been obtained or effected (or as may be required under the securities or blue sky laws
of the various States of the United States, as to which we express no opinion).
4. Based solely on Section 8-502 of the New York UCC, an action based on an adverse claim to
the financial asset consisting of Securities deposited in or held in the DTC Account in which an
Underwriter has a security entitlement, whether such action is framed in conversion, replevin,
constructive trust, equitable lien, or other theory, may not be successfully asserted against such
Underwriter, provided that (i) such Underwriter acquires security entitlements under Section 8-501
of the New York UCC with respect to such Securities from DTC, (ii) such Underwriter acquired such
security entitlements for value by making payment for such Securities as provided in the
Underwriting Agreement and (iii) neither the Representatives nor any Underwriter has notice of any
adverse claims with respect to such Securities.
44
SCHEDULE J-2
FORM OF OPINION OF ALLEN & OVERY LLP
AS COUNSEL FOR THE SELLING STOCKHOLDERS IN THE UNITED KINGDOM
1. Status: Each Selling Stockholder is a company duly incorporated and registered
under the laws of
England which is not in liquidation.
2. Power and Authority: Each Selling Stockholder has the corporate power to execute, deliver
and perform its obligations under the Underwriting Agreement and the execution, delivery and
performance of the Underwriting Agreement by it have been duly authorised by all necessary
corporate action.
3. Due execution: The Underwriting Agreement has been duly executed and delivered
by the Selling
Stockholders insofar as English law is concerned;
4. Non-conflict: The execution, delivery and performance of the Underwriting
Agreement by the
Selling Stockholders and the transactions and matters contemplated thereby do not and will not
violate: (i) any existing English law applicable to companies generally; (ii) in the case only of
the Selling Stockholder, the memorandum and articles of association of each such Selling
Stockholder; or (iii) the resolutions passed by the Misys Shareholders as referred to at paragraph
2(n) above.
5. Authorisations: No consents, approvals, authorisations or other requirements of
governmental, judicial or public bodies and authorities of or in England are required by Misys or
the Selling Stockholders in connection with their entry into the Underwriting Agreement or the sale
of the Securities to the Underwriters.
45
ANNEX I
1. Secondary offering roadshow presentation, dated August 16, 2010
46
exv99w20
Exhibit 99.20
EXECUTION COPY
AMENDED AND RESTATED RELATIONSHIP AGREEMENT
by and between
MISYS PLC
and
ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC.
dated as of August 20, 2010
CONTENTS
|
|
|
|
|
Clause |
|
Page |
1. INTERPRETATION |
|
|
3 |
|
2. DURATION |
|
|
8 |
|
3. BOARD REPRESENTATION |
|
|
8 |
|
4. ARSENAL CHAIRMAN |
|
|
10 |
|
5. OPERATING REQUIREMENTS |
|
|
11 |
|
6. PROVISION OF INFORMATION |
|
|
11 |
|
7. TRADING IN ARSENAL AND MANCHESTER SHARES |
|
|
12 |
|
8. ANNOUNCEMENTS |
|
|
12 |
|
9. CONFIDENTIALITY |
|
|
12 |
|
10. WAIVER AND AMENDMENT |
|
|
13 |
|
11. STANDSTILL |
|
|
14 |
|
12. TERMINATION |
|
|
16 |
|
13. GENERAL |
|
|
16 |
|
14. NOTICES |
|
|
17 |
|
15. GOVERNING LAW |
|
|
18 |
|
16. ENFORCEMENT |
|
|
18 |
|
2
THIS AMENDED AND RESTATED RELATIONSHIP AGREEMENT dated as of August 20, 2010, is made and entered
into
BETWEEN:
(1) |
|
Misys plc, a public limited company incorporated under the laws of England and Wales
(Manchester); and |
|
(2) |
|
Allscripts-Misys Healthcare Solutions, Inc., a Delaware corporation (Arsenal);
together, the Parties. |
WHEREAS:
(A) |
|
Manchester acquired direct and indirect ownership of approximately fifty-four and one-half
percent (54.5%) of the then issued and outstanding Arsenal Shares pursuant to an Agreement and
Plan of Merger, dated March 17, 2008, entered into by and among Manchester, Misys Healthcare
Systems, LLC, Arsenal Healthcare Solutions Inc. and Patriot Merger Company, LLC (the Merger); |
|
(B) |
|
Manchester and Arsenal entered into the Original Relationship Agreement (as defined below) to
govern the relationship between them and to ensure that, among other things, Manchester would
continue to comply with its UK Regulatory Requirements and Arsenal would continue to comply
with its US Regulatory Requirements following the Merger; |
|
(C) |
|
Manchester and Arsenal entered into a Framework Agreement dated as of June 9, 2010 (the
Framework Agreement) pursuant to which Manchester and Arsenal agreed, among other things and
subject to certain conditions, to reduce Manchesters existing indirect shareholding in
Arsenal through (i) a repurchase by Arsenal of certain Arsenal Shares held indirectly by
Manchester through its subsidiaries Misys Patriot Limited (MPL), Kapiti Limited (Kapiti) and
ACT Sigmex Limited (ACTS) and (ii) a secondary public offering by Kapiti and ACTS of
additional Arsenal Shares (the transactions described in clauses (i) and (ii), the Coniston
Transaction); |
|
(D) |
|
Arsenal has entered into an Agreement and Plan of Merger dated as of June 9, 2010 (the Merger
Agreement) with Eclipsys Corporation, a Delaware corporation (Emerald), pursuant to and
subject to the terms and conditions of which the stockholders of Emerald would receive newly
issued Arsenal Shares as consideration (the Emerald Transaction), it being understood that
under no circumstances would the Emerald Transaction be consummated prior to the closing of
the Coniston Transaction (the Coniston Closing); and |
|
(E) |
|
In connection with and subject to the Coniston Closing, Manchester and Arsenal desire to
amend and restate the Original Relationship Agreement in accordance with the terms and
conditions set forth in this Agreement. |
NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements set
forth herein and in the Framework Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each of Manchester and Arsenal hereby
agrees that the Original Relationship Agreement is hereby amended and restated in its entirety as
follows:
1. |
|
INTERPRETATION |
|
1.1 |
|
In this Agreement: |
3
|
|
13D Group means any group of Persons that is required under Section 13(d) of the Exchange
Act and the rules and regulations thereunder to file a statement on Schedule 13D with the
SEC as a person within the meaning of Section 13(d)(3) of the Exchange Act with respect to
the Equity Securities of Arsenal. |
|
|
|
Acquired Person shall have the meaning ascribed to such term in Section 11.1 hereof. |
|
|
|
ACTS means ACT Sigmex Limited, a limited company formed under the Laws of England and Wales
and a subsidiary of Manchester. |
|
|
|
Affiliate means, with respect to any Person, any other Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by, or is under common Control
with, such Person. For purposes of this Agreement, Manchester and its Subsidiaries, on the
one hand, and Arsenal and its Subsidiaries, on the other hand, shall not be deemed
Affiliates of each other. |
|
|
|
Agreement means this Amended and Restated Relationship Agreement. |
|
|
|
Arsenal shall have the meaning ascribed to such term in the first paragraph of this
Agreement. |
|
|
|
Arsenal Board shall have the meaning ascribed to such term in Section 3.1 hereof. |
|
|
|
Arsenal Chairman shall have the meaning ascribed to such term in Section 4.1 hereof. |
|
|
|
Arsenal Non-Executive Chairman Term shall have the meaning ascribed to such term in
Section 4.4 hereof. |
|
|
|
Arsenal Shares means the issued and outstanding shares of common stock of Arsenal, par value
$0.01 per share. |
|
|
|
beneficially own (or any similar phrase) shall have the meaning set forth in Rule 13d-3
under the Exchange Act. |
|
|
|
business day means any day except Saturday, Sunday or any day on which banks or stock
exchanges are generally not open for business in the City of New York, New York or the City
of London, England. |
|
|
|
Chairman Agreement means the Employment Agreement, dated as of the date hereof, by and
between Arsenal and Philip M. Pead, which shall be effective as of the Emerald Closing. |
|
|
|
Companies Act (UK) means the Companies Act 2006, as amended from time to time. |
|
|
|
Confidential Information shall have the meaning ascribed to such term in Section 9.1
hereof. |
|
|
|
Coniston Closing shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
Coniston Closing Percentage means the number of Arsenal Shares held by Manchester and its
Subsidiaries immediately after the Coniston Closing expressed as a percentage of the
aggregate number of the then issued and outstanding Arsenal Shares. |
|
|
|
Coniston Transaction shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
Contingent Repurchase shall have the meaning ascribed to such term in the Framework
Agreement. |
|
|
|
Contingent Repurchase Closing means the consummation of the Contingent Repurchase. |
4
|
|
Contingent Repurchase Closing Percentage means the number of Arsenal Shares held by
Manchester and its Subsidiaries immediately after the Contingent Repurchase Closing
expressed as a percentage of the aggregate number of the then issued and outstanding Arsenal
Shares. |
|
|
|
Control (including, with its correlative meanings, Controlled by and under common Control
with) means, with respect to any Person, any of the following: (a) ownership, directly or
indirectly, by such Person of equity securities entitling it to exercise in the aggregate
more than fifty percent (50%) of the voting power of the entity in question or (b) the
possession by such Person of the power, directly or indirectly, to elect a majority of the
board of directors (or equivalent governing body) of the entity in question. |
|
|
|
Disclosing Party shall have the meaning ascribed to such term in Section 9.1 hereof. |
|
|
|
Disclosure and Transparency Rules (UK) means the disclosure and transparency rules of the
FSA. |
|
|
|
Emerald shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
Emerald Closing means the consummation of the Emerald Transaction. |
|
|
|
Emerald Closing Percentage means the number of Arsenal Shares held by Manchester and its
Subsidiaries immediately after the Emerald Closing expressed as a percentage of the
aggregate number of the then issued and outstanding Arsenal Shares. |
|
|
|
Emerald Designee shall have the meaning ascribed to such term in Section 4.2 hereof. |
|
|
|
Emerald Transaction shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
Equity Security means any Arsenal Shares or other equity security of Arsenal, or option,
warrant, right or other security convertible, or exercisable into or exercisable for equity
securities of Arsenal. |
|
|
|
Excepted Transaction shall have the meaning ascribed to such term in Section 11.1
hereof. |
|
|
|
Exchange Act means the U.S. Securities Exchange Act of 1934, as amended. |
|
|
|
FINRA means the U.S. Financial Industry Regulatory Authority. |
|
|
|
First Arsenal Chairman means Marcel L. Gamache. |
|
|
|
Framework Agreement shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
FSA means the UK Financial Services Authority. |
|
|
|
Governmental Authority means any federation, nation, state, sovereign or government, any
federal, supranational, regional, state or local political subdivision, any governmental or
administrative body, instrumentality, department or agency or any court, administrative
hearing body, commission or other similar dispute resolving panel or body, and any other
entity exercising executive, legislative, judicial, regulatory or administrative functions
of a government. |
|
|
|
Governmental Authorization means any permit, consent, approval, authorization, waiver,
grant, concession, license, exemption or order of, registration, certificate, declaration or
filing with, or report or notice to, any Governmental Authority. |
|
|
|
Independent Director means a director who, with respect to Arsenal, meets the criteria for
independence established by Nasdaq. |
5
|
|
Kapiti means Kapiti Limited, a limited company formed under the Laws of England and Wales
and a subsidiary of Manchester. |
|
|
|
Law means all applicable provisions of all (a) constitutions, treaties, statutes, laws
(including common law), rules, regulations, ordinances or codes of any Governmental
Authority, and (b) orders, decisions, injunctions, judgments, awards, decrees and
Governmental Authorizations of any Governmental Authority. |
|
|
|
Listing Rules (UK) means the listing rules of the FSA. |
|
|
|
LSE means London Stock Exchange plc. |
|
|
|
Manchester shall have the meaning ascribed to such term in the first paragraph of this
Agreement. |
|
|
|
Manchester Directors shall have the meaning ascribed to such term in Section 3.1
hereof. |
|
|
|
Manchesters General Counsel means the Manchester executive who holds that title at any
given time. |
|
|
|
Manchester Group means Manchester and its Subsidiaries from time to time (excluding Arsenal
and its Subsidiaries from time to time). |
|
|
|
Manchester Marks shall have the meaning ascribed to such term in Section 11.3(b)
hereof. |
|
|
|
Maximum Arsenal Percentage shall have the meaning ascribed to such term in Section
11.1 hereof. |
|
|
|
Merger shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
Merger Agreement shall have the meaning ascribed to such term in the Recitals hereof. |
|
|
|
MOSS shall have the meaning ascribed to such term in Section 11.4 hereof. |
|
|
|
MPL means Misys Patriot Limited, a limited company formed under the Laws of England and
Wales and a subsidiary of Manchester. |
|
|
|
Nasdaq means the Nasdaq National Market. |
|
|
|
Original Relationship Agreement means, collectively, the Relationship Agreement between the
Parties dated as of March 17, 2008, as amended by the First Amendment to the Relationship
Agreement, dated as of August 14, 2008, and the Second Amendment to the Relationship
Agreement, dated as of January 5, 2009. |
|
|
|
Parties means Manchester and Arsenal, with each being a Party. |
|
|
|
Person means any natural person, business trust, corporation, partnership, limited liability
company, joint stock company, proprietorship, association, trust, joint venture,
unincorporated association or any other legal entity of whatever nature organized under any
applicable Law, an unincorporated organization or any Governmental Authority. |
|
|
|
Representatives shall have the meaning ascribed to such term in Section 9.1 hereof. |
|
|
|
Restricted Activities shall have the meaning ascribed to such term in Section
11.3(a) hereof. |
|
|
|
SEC means the U.S. Securities and Exchange Commission. |
|
|
|
Second Arsenal Chairman shall have the meaning ascribed to such term in Section 4.3
hereof. |
6
|
|
Standstill Period shall have the meaning ascribed to such term in Section 11.1
hereof. |
|
|
|
Subsidiary means, with respect to any Person, another Person that, at the time of
determination, directly or indirectly, through one or more intermediaries, is Controlled by
such first Person. |
|
|
|
Transaction shall have the meaning ascribed to such term in Section 11.1 hereof. |
|
|
|
UKLA means the UK Listing Authority. |
|
|
|
UK Regulatory Requirements means Manchesters obligations under, inter alia, the Companies
Act (UK), the Listing Rules (UK) and the Disclosure and Transparency Rules (UK) or any
similar Law in effect now or in the future. |
|
|
|
UK Takeover Code means the City Code on Takeovers and Mergers issued by the Panel on
Takeovers and Mergers. |
|
|
|
US Regulatory Requirements means Arsenals obligations under, inter alia, the U.S.
Securities Act of 1933, as amended, the Exchange Act, FINRA rules and regulations and the
General Corporation Law of the State of Delaware or any similar Law in effect now or in the
future. |
|
|
|
Voting Securities means at any time any securities entitled to vote generally in the
election of directors of Arsenal or its successors; provided, that for purposes of
this definition any securities which at such time are convertible or exchangeable into or
exercisable for Arsenal Shares shall be deemed to have been so converted, exchanged or
exercised. |
|
1.2 |
|
In this Agreement any reference, express or implied, to a Law includes: |
|
(a) |
|
that Law, as amended, extended or applied by or under any other Law (before, on
or after execution of this Agreement); |
|
|
(b) |
|
any Law which that Law re-enacts (with or without modification); and |
|
|
(c) |
|
any subordinate legislation made (before, on or after execution of this
Agreement) under that Law, including (where applicable) that Law as amended, extended
or applied as described in paragraph (a) above, or under any Law which it re-enacts as
described in paragraph (b) above, |
|
|
and Law includes any rule, regulation or requirement of the SEC, General Corporation Law of
the State of Delaware, FINRA, UK Listing Authority, London Stock Exchange, FSA, the UK
Takeover Code and any other body or authority acting under the authority of any Law and any
legislation in any jurisdiction. |
|
1.3 |
|
Unless the context of this Agreement otherwise clearly requires, (i) references to the plural
include the singular, and references to the singular include the plural, (ii) references to a
Person are also to its permitted successors and assigns, (iii) references to any gender
include the other genders, (iv) the words include, includes and including do not limit
the preceding terms or words and shall be deemed to be followed by the words without
limitation, (v) the terms hereof, herein, hereunder, hereto and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision of this
Agreement, (vi) the terms day and days mean and refer to calendar day(s) and (vii) the
terms year and years mean and refer to calendar year(s). |
|
1.4 |
|
The headings and captions in this Agreement and in the table of contents are included for
convenience of reference only and shall be ignored in the construction or interpretation of
this Agreement. |
7
2. |
|
DURATION |
|
|
|
This Agreement shall take effect immediately on the date hereof and, except for the specific
rights and obligations set forth herein that by their terms are intended to terminate
earlier, shall continue indefinitely. |
|
3. |
|
BOARD REPRESENTATION |
|
3.1 |
|
The Arsenal board of directors (the Arsenal Board) shall consist of a number of directors
fixed from time to time by the Arsenal Board. Manchester shall have the right to nominate for
election to the Arsenal Board two (2) directors (the Manchester Directors), one of whom shall
serve on the Arsenal Nominating and Governance Committee; provided, however,
that the Manchester Director serving on the Arsenal Nominating and Governance Committee shall
be an Independent Director and if neither Manchester Director is an Independent Director, then
neither of the Manchester Directors shall serve on the Arsenal Nominating and Governance
Committee; provided, further, that Manchesters right to nominate two (2)
Manchester Directors for election to the Arsenal Board shall be reduced as follows: |
|
(i) |
|
if, at any time, Manchester shall own, directly or indirectly, for more than
ten (10) consecutive business days, less than 15.5 million Arsenal Shares (as adjusted
pursuant to Section 13.6) but continues to own, directly or indirectly, such
number of Arsenal Shares that as a percentage of the then outstanding Arsenal Shares is
equal to or greater than 5.0%, the number of Manchester Directors shall be permanently
(unless further reduced pursuant to clause (ii) below) reduced to one (which individual
shall not serve on the Arsenal Nominating and Governance Committee); |
|
|
(ii) |
|
if, at any time, Manchester shall own, directly or indirectly, for more than
ten (10) consecutive business days, less than 5.0% of the then outstanding Arsenal
Shares, Manchester shall permanently cease to have a right to nominate any Manchester
Directors to the Arsenal Board; |
|
|
(iii) |
|
if, at any time, Manchester takes an action specified in Sections
11.1(iii), 11.1(iv) or 11.1(viii) (or the board of directors of
Manchester formally resolves to take an action specified in Section 11.1(xi)
with regard to any action specified in Sections 11.1(iii), 11.1(iv) or
11.1(viii)) at a time when it has the right to designate a Manchester Director
but no Manchester Director is then serving on the Arsenal Board, Manchester shall
permanently cease to have a right to nominate any Manchester Directors to the Arsenal
Board; and |
|
|
(iv) |
|
if, at any time, a Manchester Director resigns from, or refuses to stand for
re-election to, the Arsenal Board (A) after notifying the Arsenal Board in writing that
the reason for such resignation or refusal to stand for re-election is a disagreement
with Arsenal or (B) if no such written notification is provided prior to such
resignation or refusal to stand for re-election, if such Manchester Director does not
furnish Arsenal with a letter indicating disagreement with any disclosure by Arsenal
pursuant to Item 5.02(a)(1) of Form 8-K, then Manchester shall permanently cease to
have a right to nominate a replacement for such Manchester Director. |
3.2 |
|
The Manchester Directors who will serve immediately following the date hereof and until the
next annual meeting of stockholders shall be Stephen Wilson and John King. Thereafter,
Manchester shall provide the Arsenal Manchester Nominating Committee and Nominating and
Governance Committee at least one hundred twenty (120) days prior to the anniversary date of
the immediately preceding annual meeting, with the names of the Manchester Directors that
Manchester has a right to nominate pursuant to Section 3.1, if any, and the Arsenal
Manchester Nominating Committee or Nominating and Governance Committee, as applicable, shall
then recommend such Manchester Directors to the Arsenal Board who |
8
|
|
shall in turn recommend such Manchester Directors for election by Arsenal stockholders. For
so long as Manchester retains the right to nominate any Manchester Directors pursuant to
Section 3.1, Arsenal shall use commercially reasonable efforts to (a) ensure that
the Arsenal Nominating and Governance Committee (other than the Manchester Director serving
thereon, if any) recommends to the Arsenal Board such Manchester Directors for election, (b)
ensure that the Arsenal Board (other than any Manchester Director serving thereon)
recommends to the stockholders of Arsenal such Manchester Directors for election and (c)
cause the Arsenal Board to use reasonable efforts to solicit from the stockholders of
Arsenal eligible to vote for the election of directors proxies in favor of such Manchester
Directors. For so long as Manchester retains the right to nominate any Manchester Directors
pursuant to Section 3.1, if Manchester shall fail to provide the Arsenal Manchester
Nominating Committee and Nominating and Governance Committee with the names of the
Manchester Director nominees as provided above, it shall be deemed that the then serving
Manchester Directors shall be the Manchester nominees for election. If at any time a
Manchester Director resigns or is removed from the Arsenal Board (other than pursuant to
Section 3.3) and at such time Manchester would have a right to nominate such
director pursuant to Section 3.1, Manchester shall be entitled to designate a
replacement Manchester Director to be appointed by the Arsenal Board to fill such vacancy
and serve on the Arsenal Board until the next annual meeting of stockholders. |
|
3.3 |
|
In the case of any reduction in Manchesters ownership of Arsenal Shares such that
Manchesters right to nominate Manchester Directors is reduced as set forth in Section
3.1(i) or 3.1(ii), within three (3) business days thereafter, (a) Manchester shall
designate the appropriate number of Manchester Directors to resign immediately and shall use
its commercially reasonable efforts to cause such Manchester Directors to so resign, (b) the
Arsenal Board (following the recommendation of the Arsenal Nominating and Governance
Committee) shall appoint replacement directors to serve for the remainder of the term of such
Manchester Directors and (c) where Manchesters right to nominate Manchester Directors is
reduced to one as set forth in Section 3.1(i), Manchester shall use its commercially
reasonable efforts to cause the Manchester Director then serving on the Arsenal Nominating and
Governance Committee to resign immediately from his position as a member of such committee. |
|
3.4 |
|
Subject to compliance with Arsenals conflict of interest policy generally applicable to all
Arsenal directors, the Manchester Directors shall be furnished with all information that is
provided to any other directors of Arsenal (in their capacities as such) at the same time as
such information is furnished to such other directors. |
|
3.5 |
|
At any annual meeting of Arsenal stockholders held during calendar year 2010 and at the first
meeting of Arsenal stockholders held to elect directors in calendar year 2011, Manchester will
cause its Voting Securities to be present for quorum purposes and will vote or cause to be
voted all Voting Securities beneficially owned by any member of the Manchester Group in favor
of all the directors recommended by the Arsenal Nominating and Governance Committee and the
Arsenal Board. After the date of the first meeting of Arsenal stockholders held to elect
directors in calendar year 2011, Manchester may vote or cause to be voted all Voting
Securities beneficially owned by any member of the Manchester Group in any manner Manchester
deems appropriate, including against one or more of the directors recommended by the Arsenal
Nominating and Governance Committee and the Arsenal Board. |
|
3.6 |
|
At any annual meeting of Arsenal stockholders held during calendar year 2010 and at the first
meeting of Arsenal stockholders held to elect directors in calendar year 2011, except as set
forth in Section 3.3 or in accordance with the recommendation of the Arsenal
Nominating and Governance Committee or the Arsenal Board or in any case of removal for
cause, Manchester will not vote (and will cause not to be voted) any Voting Securities
beneficially owned by any member of the Manchester Group in favor of the |
9
|
|
removal from the Arsenal Board of any director nominated for election to the Arsenal Board
by the Arsenal Nominating and Governance Committee and will cause all Voting Securities
beneficially owned by any member of the Manchester Group to be voted against such removal.
For avoidance of doubt, in any case of removal for cause or if so recommended by the
Arsenal Nominating and Governance Committee or the Arsenal Board, Manchester may, but shall
not be required to, vote (or cause to be voted) any Voting Securities beneficially owned by
any member of the Manchester Group in favor of the removal from the Arsenal Board of any
director nominated for election to the Arsenal Board by the Arsenal Nominating and
Governance Committee. |
|
4. |
|
ARSENAL CHAIRMAN |
|
4.1 |
|
During the Arsenal Non-Executive Chairman Term (as defined below), (x) except as set forth in
the second sentence of Section 4.2 below, the Chairman of Arsenal shall be a newly
created position of non-executive Chairman of the Arsenal Board (the Arsenal Chairman) and (y)
the positions of the Arsenal Chairman (or Chairman of the Arsenal Board, as the case may be)
and the Chief Executive Officer of Arsenal shall be held by different persons. Arsenal shall
take such actions as are necessary so as to amend the Bylaws of Arsenal to give immediate
effect to the foregoing. |
|
4.2 |
|
The First Arsenal Chairman shall serve in such role for a term that expires on the earlier of
(x) the date that is two (2) years following the date hereof and (y) the date on which the
Emerald Closing occurs; provided, however, that if during such term (i) the
First Arsenal Chairman resigns, dies or is otherwise unable to continue to serve in such
position or is removed (which removal may only be carried out by the affirmative vote of no
less than a two-thirds majority of the members of the Arsenal Board) and (ii) at the time such
vacancy is created Manchester has the right to nominate one or more Manchester Directors to
the Arsenal Board in accordance with Section 3.1, then a replacement for the First
Arsenal Chairman shall be elected by the affirmative vote of no less than a two-thirds
majority of the members of the Arsenal Board to serve out the remaining term of such two (2)
year period (and, for the purposes of this Section 4, such replacement shall also be
referred to as the First Arsenal Chairman). In the event the term of the First Arsenal
Chairman expires on the date of the Emerald Closing in accordance with clause (y) of the
immediately preceding sentence, the individual designated by the Arsenal Board in accordance
with terms of the Merger Agreement to serve as the Chairman of the Arsenal Board (the Emerald
Designee) shall serve as the Chairman of the Arsenal Board for a term of three (3) years from
the date of the Emerald Closing in accordance with the terms of the Merger Agreement, the
Bylaws of Arsenal and the Chairman Agreement; provided, however, that if
during such term (i) the Emerald Designee resigns, dies or is otherwise unable to continue to
serve in such position or is removed (which removal may only be carried out by the affirmative
vote of no less than a two-thirds majority of the entire Arsenal Board) and (ii) at the time
such vacancy is created Manchester has the right to nominate one or more Manchester Directors
to the Arsenal Board in accordance with Section 3.1, then a replacement for the
Emerald Designee shall be elected by the affirmative vote of no less than a two-thirds
majority of the entire Arsenal Board to serve out the remaining term of such three (3) year
period (and, for the purposes of this Section 4, such replacement shall also be
referred to as the Emerald Designee). |
|
4.3 |
|
If at the expiration of the (x) two (2) year term of the First Arsenal Chairman or (y) the
term during which the Emerald Designee serves as the Arsenal Chairman, as the case may be,
Manchester continues to have the right to nominate one or more Manchester Directors to the
Arsenal Board in accordance with Section 3.1, then the next Arsenal Chairman shall be
elected (or the First Arsenal Chairman or the Emerald Designee, as the case may be, shall be
re-elected) (in either case, the Second Arsenal Chairman) by the affirmative vote of no less
than a two-thirds majority of the entire Arsenal Board. The term of appointment of the Second
Arsenal Chairman shall be for a period of not less than two (2) |
10
|
|
years following the date of such election (or re-election). During the Arsenal
Non-Executive Chairman Term, the removal of the Second Arsenal Chairman shall require the
affirmative vote of no less than a two-thirds majority of the entire Arsenal Board. |
|
4.4 |
|
For purposes of this Section 4, the Arsenal Non-Executive Chairman Term shall mean
the period between the date hereof and the first to occur of (i) the date on which Manchester
ceases to have the right to nominate any Manchester Directors and (ii) the expiration of the
two (2) year term of the Second Arsenal Chairman (or any replacement therefor). |
|
5. |
|
OPERATING REQUIREMENTS |
|
5.1 |
|
For so long as Manchester continues to own, directly or indirectly, such number of Arsenal
Shares that as a percentage of the then outstanding Arsenal Shares is equal to or greater than
5.0%, each of Arsenal and Manchester agrees to use its commercially reasonable efforts to
ensure that it and each of its Subsidiaries continues to comply with all applicable US
Regulatory Requirements and UK Regulatory Requirements from time to time (as applicable). |
|
5.2 |
|
For so long as Manchester continues to own, directly or indirectly, such number of Arsenal
Shares that as a percentage of the then outstanding Arsenal Shares is equal to or greater than
5.0%, other than with the prior written consent of Manchester, Arsenal shall not treat itself
as other than a corporation for U.S. federal income tax purposes. |
|
6. |
|
PROVISION OF INFORMATION |
|
6.1 |
|
Arsenal shall provide, and shall cause its Subsidiaries to provide, Manchester with all
information (including financial information prepared in accordance with International
Financial Reporting Standards in a form consistent with past practice) as Manchester
reasonably requires to comply with all applicable UK Regulatory Requirements for any period as
to which Manchester is required to account for its investment in Arsenal by full consolidation
or by the equity method of accounting, which in any event shall include such information
relating to the period from the commencement of Arsenals fiscal year 2011 until the date
hereof. |
|
6.2 |
|
Subject to applicable Laws and attorney-client privilege, and so long as such disclosure does
not result in any reporting or disclosure obligations for Arsenal under US Regulatory
Requirements, the Manchester Directors shall be entitled to disclose to such of Manchesters
officers, directors, employees and advisers who have a reasonable need to receive such
disclosure in connection with Manchesters investment in Arsenal, any information in such
Manchester Directors possession however obtained that relates to Arsenal or any of its
Subsidiaries; provided, that Manchester shall ensure that each such recipient is
aware, where such is the case, of the confidential nature of such information and, in any such
case, Manchester shall use commercially reasonable efforts to cause each such recipient to
treat such information as Confidential Information in accordance with Section 9;
provided, further, that if disclosure of any such information to Manchester
would result in the loss of attorney-client privilege to Arsenal and if entering into a joint
defense agreement would protect such privilege, Arsenal and Manchester shall negotiate in good
faith an appropriate joint defense agreement as promptly as practicable in order to permit
such disclosure to Manchester. Manchester shall be responsible for any breach of
confidentiality by such recipients. |
|
6.3 |
|
Manchester acknowledges that the information disclosed under Section 6.1 may be
inside information in relation to Arsenal and undertakes that it shall (and shall use all
powers vested in it to procure, so far as it is legally able, that each of its Subsidiaries
shall) comply with all applicable Laws in relation to the |
11
|
|
disclosure or use of such information until such information ceases to be inside information
in relation to Arsenal. |
|
6.4 |
|
Neither Manchester nor Arsenal shall be obliged to disclose any information under this
Section 6 if and to the extent that such disclosure would be prohibited by Law. |
|
6.5 |
|
For the purposes of this Section 6, Arsenals obligations to disclose information to
Manchester will be satisfied when the information is received by Manchesters General Counsel
or such other executive officer of Manchester as Manchester may designate from time to time. |
|
7. |
|
TRADING IN ARSENAL AND MANCHESTER SHARES |
|
|
|
For so long as Manchester continues to own, directly or indirectly, such number of Arsenal
Shares that as a percentage of the then outstanding Arsenal Shares is equal to or greater
than 5.0%, Arsenal and Manchester agree to work together in good faith to, where
appropriate: |
|
(a) |
|
maintain all existing internal controls for monitoring and regulating the
appropriate flow of inside information between Arsenal and Manchester; and |
|
|
(b) |
|
maintain all agreed protocols for trading in Arsenal Shares and shares of
Manchester common stock. |
8. |
|
ANNOUNCEMENTS |
|
|
|
Except as required by Law or by the requirements of any securities exchange on which the
securities of a Party are listed, the Parties shall cooperate as to the timing and contents
of any press release or public announcement in respect of this Agreement or the transactions
contemplated hereby or any communication with any news media with respect thereto. |
|
9. |
|
CONFIDENTIALITY |
|
9.1 |
|
Each Party shall hold and not disclose, and shall cause its employees, officers, directors,
agents and other representatives (Representatives) and any of its Subsidiaries or other
controlled Affiliates or any of their respective Representatives to hold and not disclose, all
material non-public information and any other information of a secret or confidential nature
(including all business, operational, customer, employee, technological, financial, commercial
and other proprietary information and materials) (the Confidential Information) received by it
from the other Party or any of its Subsidiaries or other Affiliates or any of their respective
Representatives (the Disclosing Party). |
|
9.2 |
|
Except as expressly authorized by prior written consent of (i) Manchester, in any case where
Manchester or any of its Subsidiaries or other controlled Affiliates, or any of their
respective Representatives, is the Disclosing Party or (ii) Arsenal, in any case where Arsenal
or any of its Subsidiaries or other controlled Affiliates, or any of their respective
Representatives, is the Disclosing Party, the receiving Party shall and shall cause its
Representatives to: |
|
(a) |
|
limit access to any Confidential Information of the Disclosing Party received
by it to its and its Affiliates Representatives who have a reasonable need to know
such Confidential Information; |
12
|
(b) |
|
advise such Representatives having access to the Confidential Information of
the Disclosing Party of the proprietary nature thereof and of the obligations set forth
in this Agreement and confirm their agreement that they will be bound by such
obligations; |
|
|
(c) |
|
safeguard all Confidential Information of the Disclosing Party received using a
reasonable degree of care, but not less than that degree of care used by the receiving
Party in safeguarding its own similar information or material; |
|
|
(d) |
|
comply in all material respects with all applicable Laws relating to
maintaining the confidentiality of the Confidential Information of the Disclosing
Party; and |
|
|
(e) |
|
not reproduce, exploit or, except as set forth in Section 3.4 and
Section 6, use any Confidential Information of the Disclosing Party or disclose
the Confidential Information of the Disclosing Party to any other Person. |
9.3 |
|
Nothing in Section 8 or this Section 9 shall prevent any announcement being
made or any Confidential Information being disclosed: |
|
(a) |
|
with the prior written approval of the other Party, which in the case of any
announcement shall not be unreasonably withheld or delayed; or |
|
|
(b) |
|
to the extent required by Law or the Disclosure and Transparency Rules (UK) or
by the FSA, the UKLA, the LSE, the UK Takeover Code, the Nasdaq, FINRA or the SEC (or
their replacement bodies) or any rule or regulation promulgated thereby or thereunder. |
9.4 |
|
Nothing in this Section 9 shall prevent disclosure of Confidential Information: |
|
(a) |
|
that was or becomes generally available to the public other than as a result of
a disclosure by the receiving Party or its Representatives; |
|
|
(b) |
|
that was or becomes available to the receiving Party on a non-confidential
basis from a source other than the Disclosing Party or its Representatives;
provided that such source was not known by the receiving Party to be bound by
any agreement with the Disclosing Party to keep such information confidential; or |
|
|
(c) |
|
that has already been or is hereafter independently acquired or developed by
the receiving Party or its Representatives without violating any confidentiality
agreement or other similar obligation. |
10. |
|
WAIVER AND AMENDMENT |
|
10.1 |
|
Any provision of this Agreement may be amended or waived if, but only if, such amendment or
waiver is in writing and is signed, in the case of an amendment, by each Party, or in the case
of a waiver, by the Party against whom the waiver is to be effective. |
|
10.2 |
|
Any waiver of any term or condition of this Agreement shall not be construed as a waiver of
any subsequent breach, or a subsequent waiver of the same term or condition or a waiver of any
other term or condition, of this Agreement. The failure of either Party to assert any of its
rights hereunder shall not constitute a waiver of any of such rights. No failure or delay by
either Party in exercising any right, power or privilege under this Agreement shall operate as
a waiver thereof nor shall any single or partial |
13
|
|
exercise thereof preclude any other or further exercise thereof or the exercise of any other
right, power or privilege. Other than as expressly set forth herein, the rights and
remedies provided in this Agreement shall be cumulative and not exclusive of any rights or
remedies provided by Law. |
|
11. |
|
STANDSTILL |
|
11.1 |
|
For a period of five (5) years after the date hereof (the Standstill Period), Manchester
shall not, and shall cause each of its Subsidiaries not to, (i) directly or indirectly,
acquire, seek to acquire or make an offer to acquire, alone or in concert with others, whether
by purchase, gift, business combination or otherwise (a Transaction), any number of Equity
Securities such that, after giving effect to such Transaction, the Manchester Group (taken as
a whole) would beneficially own, directly or indirectly, an aggregate number of Arsenal Shares
representing (as a percentage) more than the lesser of (A) the Coniston Closing Percentage or
(B) (1) if the Emerald Closing does occur (but the Contingent Repurchase does not occur), 2%
above the Emerald Closing Percentage or (2) if the Contingent Repurchase occurs, 2% above the
Contingent Repurchase Closing Percentage (the lesser of (A) or (B) is hereinafter referred to
as the Maximum Arsenal Percentage), in each case unless such Transaction is approved by the
Audit Committee of the Arsenal Board prior to the consummation thereof, (ii) propose to enter
into or seek to effect, directly or indirectly, alone or in concert with others, any merger,
consolidation, recapitalization, reorganization or other business combination involving
Arsenal or any of its Subsidiaries or to purchase, directly or indirectly, alone or in concert
with others, a material portion of the business or assets of Arsenal or any of its
Subsidiaries, (iii) for so long as a Manchester Director is serving on the Arsenal Board,
initiate or propose any security holder proposal, (iv) make, or in any way participate,
directly or indirectly, in any solicitation of proxies (as such terms are defined in
Regulation 14A under the Exchange Act) whether or not such solicitation is exempt under Rule
14a-2 under the Exchange Act, to vote or act by written consent, or seek to advise or
influence any person with respect to the voting of, or the execution of a written consent in
respect of any Equity Securities of Arsenal or any of its Subsidiaries or become a
participant in a solicitation of proxies (as such terms are defined in Regulation 14A
under the Exchange Act), in each case with respect to the election of directors to the Arsenal
Board, or, for so long as a Manchester Director is serving on the Arsenal Board, with respect
to any other matter, (v) deposit any Equity Securities into a voting trust or subject any such
Equity Securities to any arrangement or agreement with respect to the voting thereof by or
together with any person other than Manchester, (vi) form, join, knowingly influence,
participate in or knowingly encourage the formation of any 13D Group with respect to any
Equity Securities, (vii) except as specifically permitted by this Agreement, seek election to
or seek to place a representative or other Affiliate or nominee on the Arsenal Board or seek
the removal of any member of the Arsenal Board other than for cause or in accordance with the
recommendation of the Arsenal Nominating and Governance Committee or the Arsenal Board, (viii)
for so long as a Manchester Director is serving on the Arsenal Board, initiate, propose or
knowingly take any public action in support of any security holder proposal to, or otherwise
seek to have Arsenal amend its by-laws or its certificate of incorporation, (ix) other than in
a public offering or a Rule 144 broker transaction, sell, transfer or otherwise dispose of any
Equity Securities to any Person or 13D Group who is prior to the consummation of such sale,
transfer or other disposition known to Manchester to be a beneficial owner of 5% or more of
the outstanding Equity Securities (other than a beneficial owner who has filed or is eligible
to file a Schedule 13G under the Exchange Act), (x) publicly disclose any intention, plan or
arrangement inconsistent with the foregoing or (xi) publicly disclose a willingness or desire
to have any other Person engage in, any of the transactions or actions described in this
Section 11.1. Manchester also agrees not to, and to cause each of its Subsidiaries
during the Standstill Period not to, request Arsenal or its Representatives, directly or
indirectly, to amend or waive any provisions of this Section 11 (including this
sentence), other than through a direct non-public communication by the CEO of |
14
|
|
Manchester to the CEO or non-executive Chairman of Arsenal (and to no other Person) that
would not reasonably be expected to require any public disclosure on the part of Arsenal or
Manchester and that is not thereafter voluntarily disclosed by Manchester except as required
by Law or any UK Regulatory Requirement. Nothing in this Section 11.1 shall limit
Manchesters power and right to purchase or acquire, directly or indirectly, any Person (an
Acquired Person) that at the time of such acquisition owns Arsenal Shares so long as such
Arsenal Shares represent no more than 5% of the total assets of such Acquired Person at the
time of such acquisition (an Excepted Transaction); provided, that if Manchester
completes an Excepted Transaction, it shall notify Arsenal promptly upon learning that an
Acquired Person owns Arsenal Shares. If Manchesters acquisition, directly or indirectly,
of Arsenal Shares pursuant to an Excepted Transaction would result in Manchesters
beneficial ownership being in excess of the Maximum Arsenal Percentage, then in such event
the Maximum Arsenal Percentage shall be increased by a percentage determined by dividing (x)
only such number of Arsenal Shares purchased or acquired in connection with such Excepted
Transaction that would result in Manchester beneficially owning an amount of Arsenal Shares
in excess of the Maximum Arsenal Percentage by (y) the number of then issued and outstanding
Arsenal Shares, and such modified Maximum Arsenal Percentage shall remain in full force and
effect; provided, however, that in the event Manchester or any of its
Subsidiaries, at any time after an Excepted Transaction, directly or indirectly, sells,
transfers or otherwise disposes of any Arsenal Shares or such Acquired Person, then, in such
event, the Maximum Arsenal Percentage shall be decreased by a percentage determined by
dividing (x) the amount of Arsenal Shares owned by such Acquired Person or sold, transferred
or otherwise disposed of by Manchester or any of its Subsidiaries by (y) the number of then
issued and outstanding Arsenal Shares, and such modified Maximum Arsenal Percentage shall
remain in full force and effect; provided, further, that in no event shall
the Maximum Arsenal Percentage be decreased below the lesser of (A) the Coniston Closing
Percentage or (B) (1) if the Emerald Closing does occur (but the Contingent Repurchase does
not occur), 2% above the Emerald Closing Percentage or (2) if the Contingent Repurchase
occurs, 2% above the Contingent Repurchase Closing Percentage, without giving effect, in the
case of each of clauses (A) and (B), to any Excepted Transaction. |
|
11.2 |
|
If any member of the Manchester Group inadvertently acquires any Equity Securities in
violation of this Agreement, such member of the Manchester Group shall, as soon as it becomes
aware of such violation, (a) give immediate notice to Arsenal and (b) subject to Section
11.1(ix), immediately dispose of such Equity Securities to Persons who are not members of
the Manchester Group or Affiliates of any member thereof; provided that if the
applicable member of the Manchester Group fails to comply with this Section 11.2
within ten (10) business days after becoming aware of such violation, Arsenal may also pursue
any other available remedy to which it may be entitled as a result of such violation. |
|
11.3 |
|
In furtherance of the transactions contemplated hereby and by the Framework Agreement,
Manchester covenants and agrees that neither Manchester nor any of its controlled Affiliates
will: |
|
(a) |
|
for a period of eighteen (18) months after the Coniston Closing, directly or
indirectly (including by partnering with third parties) deploy, sell, license or market
any electronic medical health record or physician practice management software, related
applications or solutions (the Restricted Activities), in any country in the world
where Arsenal is conducting Restricted Activities on the date hereof; provided,
however, that the reference to related applications or solutions in the
definition of Restricted Activities shall not preclude MOSS from conducting its
business as conducted on the date of the Framework Agreement or reasonable extensions
thereof in the healthcare information exchange market which, for the avoidance of
doubt, will in no event include electronic medical health record or physician practice
management software; or |
15
|
(b) |
|
for a period of eighteen (18) months after the Coniston Closing, utilize the
name Misys or any trade name, trademark, brand name, domain name or logo containing
or associated with the name Misys (collectively, the Manchester Marks) in connection
with any healthcare information technology solutions, or grant to any third party the
right or license to use the Manchester Marks in connection with any healthcare
information technology solutions anywhere in the world. |
11.4 |
|
Notwithstanding anything contained in Section 11.3(b) to the contrary, Misys Open
Source Solutions, LLC (MOSS) shall be permitted to utilize the MOSS name or any trade name,
trademark, brand name, domain name or logo relating to MOSS in connection with healthcare
information technology solutions other than in connection with any of the Restricted
Activities. |
|
12. |
|
TERMINATION |
|
|
|
This Agreement shall only be terminated with the prior written consent of both Arsenal and
Manchester. |
|
13. |
|
GENERAL |
|
13.1 |
|
The provisions of this Agreement shall be binding upon and inure to the benefit of the
Parties and their respective successors and permitted assigns; provided that neither
Party may assign, delegate or otherwise transfer any of its rights or obligations under this
Agreement without the consent of the other Party. Any attempted assignment in violation of
this Section 13.1 shall be void. |
|
13.2 |
|
This Agreement constitutes the entire agreement and understanding between the Parties with
respect to the subject matter of this Agreement and supersedes all prior agreements and
understandings, both oral and written, between Manchester and Arsenal with respect to the
subject matter hereof, including the Original Relationship Agreement. All terms and
provisions of the Original Relationship Agreement are hereby terminated and are null and void
and of no further force and effect. |
|
13.3 |
|
This Agreement may be signed in any number of counterparts (including by fax or other
electronic signature), each of which shall be an original, with the same effect as if the
signatures were upon the same instrument. This Agreement shall become effective when each
Party shall have received a counterpart of this Agreement signed by the other Party. This
Agreement is for the sole benefit of the Parties and their successors and permitted assigns
and nothing express or implied in this Agreement is intended or shall be construed to confer
upon any Person other than the Parties any legal or equitable rights or remedies under this
Agreement. |
|
13.4 |
|
If any provision of this Agreement (or any portion thereof) or the application of any such
provision (or any portion thereof) to any Person or circumstance shall be held invalid,
illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision of this Agreement (or the
remaining portion thereof) or the application of such provision to any other Person or
circumstances. Upon such determination that any term or other provision is invalid, illegal
or incapable of being enforced, the Parties shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the Parties as closely as possible in a
mutually acceptable manner in order that the transactions contemplated hereby are completed as
originally contemplated to the greatest extent possible. |
|
13.5 |
|
Nothing contained herein shall limit in any way Manchesters rights under the Registration
Rights Agreement (as defined in the Framework Agreement). |
16
13.6 |
|
If Arsenal (i) reduces the number of Arsenal Shares outstanding and increases the share price
proportionately by a reverse stock split or any similar action or (ii) increases the number of
Arsenal Shares outstanding by a stock dividend, subdivision or split-up of Arsenal Shares or
any similar action, in each case, the number of Arsenal Shares set out in Section
3.1(i) shall be adjusted proportionately following the record date for such transaction. |
|
14. |
|
NOTICES |
|
|
|
All notices, requests, claims, demands and other communications required or permitted to be
given under this Agreement shall be in writing and shall be delivered by hand, sent by fax
or sent by international overnight courier service and shall be deemed given when so
delivered by hand or fax (if received prior to 5 p.m. in the place of receipt and such day
is a business day in the place of receipt; otherwise, any such notice, request or
communication shall be deemed not to have been received until the next succeeding business
day in the place of receipt), or one (1) business day after mailing in the case of
international overnight courier service, to the respective Parties at the following
addresses (or at such other address for a Party as shall be specified in a notice given in
accordance with this Section 14): |
if to Manchester, to:
Misys plc
One Kingdom Street
Paddington
London W2 6BL, UK
|
|
|
Telephone: |
|
+44 (0)20 3320 5000 |
Fax: |
|
+44 (0)20 3320 1771 |
Attention: |
|
General Counsel |
with a copy to:
Allen & Overy LLP
1221 Avenue of the Americas
New York, NY 10020
|
|
|
Telephone: |
|
+1 212 610 6471 |
Fax: |
|
+1 212 610 6399 |
Attention: |
|
A. Peter Harwich |
if to Arsenal, to:
Allscripts-Misys Healthcare Solutions, Inc.
222 Merchandise Mart Plaza, Suite 2024
Chicago, IL 60654
|
|
|
Telephone: |
|
+1 800 654 0889 |
Fax: |
|
+1 312 506 1208 |
Attention: |
|
General Counsel |
with a copy to:
Sidley Austin LLP
One South Dearborn
Chicago, IL 60603
17
|
|
|
Telephone: |
|
+1 312 853 7000 |
Fax: |
|
+1 312 853 7036 |
Attention: |
|
Frederick C. Lowinger; Gary D. Gerstman |
and
Winston & Strawn LLP
35 W. Wacker Drive
Chicago, IL 60601
|
|
|
Telephone: |
|
+1 312 558 5600 |
Fax: |
|
+1 312 558 5700 |
Attention: |
|
Robert F. Wall |
15. |
|
GOVERNING LAW |
|
|
|
This Agreement (and any claims or disputes arising out of or related to this Agreement or to
the inducement of any Party to enter into this Agreement, whether for breach of contract,
tortious conduct or otherwise and whether predicated on common law, statute or otherwise)
shall in all respects be governed by and construed in accordance with the Laws of the State
of Delaware, including all matters of construction, validity and performance, in each case
without reference to any conflict of law rules that might lead to the application of the
Laws of any other jurisdiction. |
|
16. |
|
ENFORCEMENT |
|
16.1 |
|
The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the Parties shall be entitled to seek an injunction or
injunctions or other appropriate equitable relief to prevent breaches of this Agreement and to
enforce specifically the terms and provisions of this Agreement in the Delaware Court of
Chancery (unless such court shall lack subject matter jurisdiction over such action, in which
case, in any state or federal court located in Delaware), this being in addition to any other
remedy to which they are entitled at law or in equity, and the Parties hereby waive in any
such proceeding the defense of adequacy of a remedy at law and any requirement for the
securing or posting of any bond or any other security related to such equitable relief. |
|
16.2 |
|
Each Party irrevocably and unconditionally submits to the exclusive jurisdiction of the
Delaware Court of Chancery, or if such court is unavailable, state or federal courts located
in Delaware, for the purposes of any suit, action or other proceeding arising out of this
Agreement or the transactions contemplated hereby. Each Party hereby agrees that it will not
bring any action relating to this Agreement or the transactions contemplated hereby in any
court other than the Delaware Court of Chancery (unless such court shall lack subject matter
jurisdiction over such action, in which case, in any state or federal court located in
Delaware). Each Party hereby waives formal service of process and agrees that service of any
process, summons, notice or document by U.S. registered mail to such Partys respective
address set forth above shall be effective service of process for any action, suit or
proceeding in Delaware with respect to any matters to which it has submitted to jurisdiction
in this Section 16.2. Each Party irrevocably and unconditionally waives any objection
to the laying of venue of any action, suit or proceeding arising out of this Agreement or the
transactions contemplated hereby in such courts and hereby and thereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that any such
action, suit or proceeding brought in any such court has been brought in an inconvenient
forum. |
18
16.3 |
|
EACH PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY ACTION, PROCEEDING
OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) DIRECTLY OR INDIRECTLY RELATING
TO ANY DISPUTE ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. Each Party (a) certifies that no representative, agent or attorney of
the other Party has represented, expressly or otherwise, that such other Party would not, in
the event of litigation, seek to enforce the foregoing waiver and (b) acknowledges that it and
the other Party have been induced to enter into this Agreement by, among other things, the
mutual waivers and certifications in this Section 16.3. |
[SIGNATURE PAGE FOLLOWS]
19
SIGNATORIES
IN WITNESS WHEREOF, Manchester and Arsenal have caused their respective duly authorized officers to
execute this Agreement as of the day and year first above written.
|
|
|
|
|
|
MISYS PLC
|
|
|
By: |
/s/ J. Michael Lawrie
|
|
|
Name: |
J. Michael Lawrie |
|
|
Title: |
Chief Executive Officer |
|
|
|
ALLSCRIPTS-MISYS HEALTHCARE SOLUTIONS, INC.
|
|
By: |
/s/ Glen Tullman
|
|
|
Name: |
|
|
|
Title: |
|
|
|
20