Agreement and Plan of Merger (2016)Full Document 

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EXECUTION VERSION

AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

by and among

MACOM TECHNOLOGY SOLUTIONS HOLDINGS, INC.,

MONTANA MERGER SUB I, INC.,

MONTANA MERGER SUB II, LLC,

and

APPLIED MICRO CIRCUITS CORPORATION

Dated as of NOVEMBER 21, 2016


TABLE OF CONTENTS

Page

ARTICLE I

2

Section 1.1.

The Offer

2

Section 1.2.

Schedule TO; Offer Documents; Registration Statement

4

Section 1.3.

Company Actions

6

ARTICLE II THE MERGERS

8

Section 2.1.

The Mergers

8

Section 2.2.

Closing

9

Section 2.3.

Effective Time

9

Section 2.4.

Effects of the Mergers

9

Section 2.5.

Organizational Documents of the Surviving Company

9

Section 2.6.

Tax Consequences

10

Section 2.7.

Directors, Officers and Manager

10

ARTICLE III CONVERSION OF SHARES; EXCHANGE OF CERTIFICATES

10

Section 3.1.

Effect on Capital Stock

10

Section 3.2.

Exchange of Certificates

12

Section 3.3.

Company Options, Company RSUS and ESPP.

16

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY

20

Section 4.1.

Organization

20

Section 4.2.

Capital Stock and Indebtedness

21

Section 4.3.

Corporate Authority Relative to this Agreement; No Violation

22

Section 4.4.

SEC Filings, Reports and Financial Statements

24

Section 4.5.

Internal Controls and Procedures

25

Section 4.6.

No Undisclosed Liabilities

26

Section 4.7.

Compliance with Law; Permits

26

Section 4.8.

Environmental Laws and Regulations

27

Section 4.9.

Employee Benefit Plans

28

Section 4.10.

Absence of Certain Changes or Events

29

Section 4.11.

Investigations; Litigation

30

Section 4.12.

[Reserved]

30

Section 4.13.

Tax Matters

30

Section 4.14.

Employment and Labor Matters

32

Section 4.15.

Intellectual Property

33

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Section 4.16.

Property

37

Section 4.17.

Insurance

37

Section 4.18.

Opinions of Financial Advisors

37

Section 4.19.

Material Contracts

38

Section 4.20.

Export Controls

40

Section 4.21.

Customers and Suppliers

41

Section 4.22.

Finders or Brokers

41

Section 4.23.

State Takeover Laws

41

Section 4.24.

Non-Reliance

41

Section 4.25.

No Other Representations

42

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND PURCHASER

42

Section 5.1.

Organization

42

Section 5.2.

Capitalization

43

Section 5.3.

Corporate Authority Relative to this Agreement; No Violation

43

Section 5.4.

Parent SEC Documents, Reports and Financial Statements

45

Section 5.5.

Internal Controls and Procedures

46

Section 5.6.

Investigations; Litigation

47

Section 5.7.

Compliance with Law

47

Section 5.8.

Absence of Certain Events

47

Section 5.9.

Purchaser

47

Section 5.10.

Ownership of Company Common Stock

47

Section 5.11.

Sufficient Funds

48

Section 5.12.

Tax Matters

48

Section 5.13.

Intellectual Property

48

Section 5.14.

Export Controls

48

Section 5.15.

Non-Reliance

48

Section 5.16.

Finders or Brokers

48

Section 5.17.

No Other Representations

48

ARTICLE VI ADDITIONAL COVENANTS

49

Section 6.1.

Conduct of Business

49

Section 6.2.

Access

53

Section 6.3.

No Solicitation

53

Section 6.4.

Employee Matters.

56

Section 6.5.

Regulatory Approvals; Efforts

58

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Section 6.6.

Takeover Statutes

60

Section 6.7.

Public Announcements

60

Section 6.8.

Indemnification and Insurance

61

Section 6.9.

Control of Operations

62

Section 6.10.

Section 16 Matters

63

Section 6.11.

Transaction Litigation

63

Section 6.12.

Nasdaq Matters; SEC Matters

63

Section 6.13.

Additional Agreements