WIXLIB

0001[ST: 2C-1] [ED: 2C-7] [REL: 91] (Beg Group)Composed: Thu May 17 11:22:36 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]0CHAPTER 2CPrincipal Provisions of Merger andAcquisition 2C.052C.06IntroductionThe Parties and the DateThe RecitalsThe Basic Terms of the TransactionRepresentations and Warranties in GeneralOrganization and Good Standing[1]Capitalization[2]Corporate Authority[3]Absence of Conflict[4]Consents and Authorization[5][6][7]Financial Statements and Securities Law FilingsTaxationAbsence of Changes[8]Material Contracts and Defaults[9][10][11]Title to PropertiesEmployee Benefit and Compensation PlansEmployee Matters[12][13][14][15][16][17]LitigationLicenses, Compliance and Accuracy of InformationAccuracy of Proxy Statement and ProspectusInsurance CoverageEnvironmental IssuesIntellectual Property2C-1

0003[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:32 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]0§ 2C.07§ C.15§ 2C.01[18]Labor and Employment[19]Related Party Matters[20]State Takeover Statues[21]Finders and Brokers[22]Accounting for Acquisition[23]Full and Complete DisclosureThe Purchaser’s Representations and WarrantiesCovenants and Undertakings[1]Access and Information[2]Governmental Filings[3]Consents and Approvals[4]Shareholder Meetings and Securities Filings[5]Conduct of Seller’s Business Prior to Closing[6]Conduct of Purchaser’s Business Prior to Closing[7]Publicity[8]Notification of Default or Adverse Developments[9]Satisfaction of Conditions to Closing[10]Anti-takeover Statutes[11]Indemnification and Insurance[12]Employee Benefits[13]No Solicitation[14]ReorganizationConditions to ClosingTermination, Amendment and WaiverEffect of Termination and “Break-up” ductionIn Chapters 1, 2 and 2A we reviewed the business and legal settings of mergersand acquisitions and the principal legal concepts that come into play in planninga merger or acquisition. In Chapter 2B we reviewed the business and legal duediligence activities that confirm the specific information about the businesses ofthe parties needed to document a particular transaction. The purpose of thisChapter is to review the principal provisions of merger and acquisition agreements. Although there are substantive and procedural differences between thevarious forms of agreement, they share much in common: specification of theparties, recitals, description of the transaction, the consideration to be paid, themechanics of transferring or exchanging the consideration, representations andwarranties of the buyer and the seller, covenants, conditions, provisions relating2C-3

0004[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:33 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]0§ 2C.012C-4to termination and miscellaneous matters such as notices, governing law,interpretation, further assurances and especially in some transactions, guarantyand indemnification provisions.In drafting merger or sale documents, it would seem obvious that the parties’counsel should exercise due care to assure that all the terms of the agreement arereflected. Sometimes that does not happen. In Cerberus International, Ltd. v.Apollo Management, L.P.,1 an agreement to pay shareholder/option holders fortheir options was omitted. The consequences of the omission were an expensivetrial and appellate litigation and embarrassment.The model agreement that will be used to discuss these and many relatedmatters is an Agreement and Plan of Merger between Avnet, Inc., a New Yorkcorporation (“Parent”), Alpha Acquisition Corp., a Texas Corporation that is awholly-owned subsidiary of Parent (the “Buyer”) and Kent Electronics Corporation, a Texas corporation (“Company”). The transaction is cast as a triangularmerger. See § 3.03[4], infra. Before each Article or Section of the Agreement,there will be a separate commentary explaining its purpose.In Volume 4 of this treatise, additional forms of agreement, from a variety oftransactions in various industries, are set forth. Each of them is preceded by acomment which discusses the salient points of the particular agreement. Generally, the bold-face comments preceding each of the provisions of the sampleagreement below will be helpful in analyzing the agreements in Volume 4.AGREEMENT AND PLAN OF MERGERBy and BetweenAVNET, INC.,ALPHA ACQUISITION CORP.andKENT ELECTRONICS CORPORATIONDated as of March 21, 2003TABLE OF CONTENTSArticle IThe MergerSection 1.01. The Merger1794 A.2d 1141 (Del. 2002). See also Joyce v. RCN Corp., 2003 Del. Ch. LEXIS 69 (July 1,2003), in which plaintiff alleged that by virtue of a mutual mistake there was a substantial disparitybetween the amount shareholders were to receive and the actual amount received.

0005[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:33 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]02C-5PRINCIPAL PROVISIONS§ 2C.01Section 1.02. ClosingSection 1.03. Effective TimeSection 1.04. Articles of IncorporationSection 1.05. By-LawsSection 1.06. Officers and DirectorsSection 1.07. [Intentionally Omitted]Section 1.08. Conversion of SharesSection 1.09. Surrender of Shares; Transfer BooksSection 1.10. Options and WarrantsSection 1.11. AffiliatesSection 1.12. Closing Day PaymentsArticle IIRepresentations and Warranties of CompanySection 2.01. Organization; SubsidiariesSection 2.02. CapitalizationSection 2.03. Authority; ValiditySection 2.04. No ConflictSection 2.05. ConsentsSection 2.06. Financial Statements; SEC FilingsSection 2.07. Tax MattersSection 2.08. Absence of Certain Changes or EventsSection 2.09. Material Contracts; Customers and SuppliersSection 2.10. Title and Related MattersSection 2.11. Employee Benefit PlansSection 2.12. Employment AgreementsSection 2.13. Legal ProceedingsSection 2.14. Licenses; Compliance with Law; Accuracy of Certain Information

0006[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:33 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]0§ 2C.012C-6Section 2.15. Accuracy of Proxy Statement/ProspectusSection 2.16. InsuranceSection 2.17. Environmental MattersSection 2.18. Intellectual PropertySection 2.19. Labor MattersSection 2.20. Related Party TransactionsSection 2.21. State Takeover StatutesSection 2.22. Brokers; AdvisorsSection 2.23. Pooling of InterestSection 2.24. Full DisclosureArticle IIIRepresentations and Warranties of Parent and BuyerSection 3.01. OrganizationSection 3.02. CapitalizationSection 3.03. Authority; ValiditySection 3.04. No ConflictSection 3.05. ConsentsSection 3.06. Legal ProceedingsSection 3.07. Financial Statements, SEC FilingsSection 3.08. No Material Adverse EffectSection 3.09. Accuracy of Proxy Statement/ProspectusSection 3.10. ReorganizationSection 3.11. No Brokers or FindersSection 3.12. Full DisclosureSection 3.13. Compliance with LawSection 3.14. TaxesSection 3.15. Employee BenefitsSection 3.16. Environmental Matters

0007[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:33 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]02C-6.1PRINCIPAL PROVISIONS§ 2C.01Article IVCovenantsSection 4.01. Access and InformationSection 4.02. Governmental FilingsSection 4.03. Consents and ApprovalsSection 4.04. Meetings of Shareholders; Securities FilingsSection 4.05. Conduct of Company BusinessSection 4.06. Conduct of Parent BusinessSection 4.07. PublicitySection 4.08. Notification of Defaults and Adverse EventsSection 4.09. Satisfy Conditions to ClosingSection 4.10. Anti-takeover StatutesSection 4.11. Indemnification; InsuranceSection 4.12. Employee BenefitsSection 4.13. No SolicitationSection 4.14. Rights AgreementSection 4.15. Option VestingSection 4.16. Special Earnings AnnouncementSection 4.17. ReorganizationArticle VConditionsSection 5.01. Conditions to Obligations of Company, Parent and BuyerSection 5.02. Conditions to Obligations of Parent and BuyerSection 5.03. Conditions to Obligations of CompanyArticle VITermination, Amendment and WaiverSection 6.01. Termination and AbandonmentSection 6.02. Effect of Termination and Termination FeeSection 6.03. Amendment

0008[ST: 2C-1] [ED: 2C-7] [REL: 91]Composed: Thu May 17 11:22:36 EDT 2007XPP 7.3C.1 Patch #3 SC 63962 llp 291 [PW 500pt PD 684pt TW 360pt TD 516pt]VER: [SC 63962-Local:03 Oct 06 14:28][MX-SECNDARY: 18 Apr 07 15:24][TT-: 30 Aug 06 13:14 loc usa unit ch0002c]0§ 2C.012C-6.2Section 6.04. Extension; WaiverArticle VIIMiscellaneousSection 7.01. Termination of Representations and WarrantiesSection 7.02. ExpensesSection 7.03. NoticesSection 7.04. Further Assurances(Text continued on page 2C-7)(Rel. 91-3/2007Pub.291)

RCN Corp., 2003 Del. Ch. LEXIS 69 (July 1, 2003), in which plaintiff alleged that by virtue of a mutual mistake there was a substantial disparity between the amount shareholders were to receive and the actual amount received. § 2C.01 2C-4 0004 [ST: 2C-1] [ED: 2C-7] [REL: 91] Composed: Thu May 17 11:22:33 EDT 2007