Agreement and Plan of Merger (2017)Full Document 

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Execution Version

AGREEMENT AND PLAN OF MERGER

dated as of

September 25, 2017

among

ENVESTNET, INC.,

FCD MERGER SUB, INC.,

FOLIO DYNAMICS HOLDINGS, INC.

and

ACTUA USA CORPORATION

(as the Representative)


TABLE OF CONTENTS

Page

ARTICLE 1 DEFINITIONS

1

Section 1.01.

Definitions

1

Section 1.02.

Other Definitional and Interpretative Provisions

15

ARTICLE 2 THE MERGER

16

Section 2.01.

The Merger 16

Section 2.02.

Closing; Effective Time; Closing Deliveries 16

Section 2.03.

Certificate of Incorporation; Bylaws; Directors and Officers 16

Section 2.04.

Conversion of Common Stock 17

Section 2.05.

Closing Deliverables 17

Section 2.06.

Payment of Closing Merger Consideration 19

Section 2.07.

Stock Options 21

Section 2.08.

Appraisal Rights 21

Section 2.09.

Post-Closing Statement 21

Section 2.10.

Withholding 24

ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

24

Section 3.01.

Corporate Existence and Power 25

Section 3.02.

Corporate Authorization 25

Section 3.03.

Governmental Authorization 25

Section 3.04.

Noncontravention 25

Section 3.05.

Capitalization 26

Section 3.06.

Subsidiaries 27

Section 3.07.

Financial Statements 27

Section 3.08.

Absence of Certain Changes 28

Section 3.09.

No Undisclosed Material Liabilities 29

Section 3.10.

Material Contracts 30

Section 3.11.

Litigation 32

Section 3.12.

Compliance with Laws and Court Orders 32

Section 3.13.

Regulatory 32

Section 3.14.

Investment Advisory Clients; Investment Advisory Contracts 33

Section 3.15.

Properties 34

Section 3.16.

Intellectual Property 35

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Page

Section 3.17.

Insurance Coverage 40

Section 3.18.

Licenses and Permits 40

Section 3.19.

Finders’ Fees 41

Section 3.20.

Labor Matters 41

Section 3.21.

Employee Benefit Plans 42

Section 3.22.

Environmental Matters 44

Section 3.23.

Affiliate Transactions 44

Section 3.24.

Taxes 45

Section 3.25.

Customers 47

Section 3.26.

Suppliers 47

Section 3.27.

Disclaimer of Representations and Warranties 47

ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUBSIDIARY

48

Section 4.01.

Corporate Existence and Power 48

Section 4.02.

Corporate Authorization 48

Section 4.03.

Governmental Authorization 48

Section 4.04.

Noncontravention 48

Section 4.05.

Litigation 49

Section 4.06.

Finders’ Fees 49

Section 4.07.

Solvency 49

Section 4.08.

Availability of Funds 49

Section 4.09.

Non-Reliance on Estimates, Projections, Forecasts, Forward-Looking Statements and Business Plans 49

Section 4.10.

No Other Representations or Warranties 50

ARTICLE 5 COVENANTS OF THE COMPANY

50

Section 5.01.

Conduct of the Company 50

Section 5.02.

Access to Information; Confidentiality 52

Section 5.03.

Notices of Certain Events 53

Section 5.04.

Resignations 54

Section 5.05.

Exclusivity 54

Section 5.06.

Financial Statements 54

Section 5.07.

Investment Advisory Clients; Investment Advisory Contracts 56

Section 5.08

401(k) Profit Sharing Plan 56

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ARTICLE 6 COVENANTS OF PARENT

57

Section 6.01.

Confidentiality 57

Section 6.02.

Maintenance of Records; Access 57

Section 6.03.

Obligations of Merger Subsidiary 58

Section 6.04.

Indemnification; D&O Insurance 58

Section 6.05.

Financing 59

ARTICLE 7 COVENANTS OF PARENT AND THE COMPANY; MUTUAL COVENANTS

59

Section 7.01.

Commercially Reasonable Efforts; Further Assurances