TABLE OF CONTENTS
ARTICLE I THE TRANSACTIONS; CLOSING (49.5kb)
Section 1.1 The Asset Contribution ..................................... 2
Section 1.2 The Merger ................................................. 9
Section 1.3 Closing .................................................... 10
Section 1.4 Effective Time of the Merger ............................... 11
Section 1.5 Effects of the Merger ...................................... 11
Section 1.6 Subsequent Actions ......................................... 11
Section 1.7 Certificate of Incorporation; By-laws; Directors and
Officers of the Surviving Corporation ...................... 12
ARTICLE II EFFECT ON THE STOCK OF NORTHPOINT AND MERGER SUBSIDIARY (35.5kb)
Section 2.1 Conversion of Securities ................................... 12
Section 2.2 Conversion of Shares ....................................... 12
Section 2.3 Exchange Procedures ........................................ 14
Section 2.4 Transfer Books ............................................. 17
Section 2.5 Transfer Taxes; Withholding ................................ 17
Section 2.6 Dissenting Shares .......................................... 18
Section 2.7 Options to Purchase NorthPoint Common Stock ................ 18
Section 2.8 Restricted Stock ........................................... 19
Section 2.9 Certain Adjustments ........................................ 20
ARTICLE III
CERTAIN ADDITIONAL MATTERS
Section 3.1 Certificate of Incorporation and By-laws of Parent.......... 20
Section 3.2 Corporate Headquarters ..................................... 20
Section 3.3 Corporate Identity ......................................... 20
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF NORTHPOINT (65kb)
Section 4.1 Organization and Qualification; Subsidiaries ............... 21
Section 4.2 Certificate of Incorporation and By-laws ................... 21
Section 4.3 Capitalization ............................................. 21
Section 4.4 Authority Relative to this Agreement ....................... 22
Section 4.5 No Conflict; Required Filings and Consents ................. 23
Section 4.6 SEC Filings; Financial Statements .......................... 24
Section 4.7 Absence of Certain Changes or Events ....................... 25
Section 4.8 Litigation ................................................. 25
Section 4.9 Permits; No Violation of Law ............................... 25
Section 4.10 Proxy Statement ............................................ 26
Section 4.11 Employee Matters; ERISA .................................... 27
Section 4.12 Labor Matters .............................................. 28
Section 4.13 Environmental Matters ...................................... 29
Section 4.14 Tax Matters ................................................ 29
Section 4.15 Intellectual Property ...................................... 31
Section 4.16 Insurance .................................................. 32
Section 4.17 Certain Contracts .......................................... 32
Section 4.18 Board Action; Vote Required; Applicability of Section 203... 33
Section 4.19 Opinions of Financial Advisors ............................. 33
Section 4.20 Brokers .................................................... 34
ARTICLE V REPRESENTATIONS AND WARRANTIES OF VERIZON (34kb)
Section 5.1 Organization and Qualification; Subsidiaries ............... 34
Section 5.2 Authority Relative to this Agreement ....................... 34
Section 5.3 No Conflict; Required Filings and Consents ................. 35
Section 5.4 Litigation ................................................. 36
Section 5.5 Permits; No Violation of Law ............................... 36
Section 5.6 Proxy Statement ............................................ 37
Section 5.7 Labor Matters .............................................. 37
Section 5.8 Environmental Matters ...................................... 38
Section 5.9 Assets ..................................................... 39
Section 5.10 Certain Contracts .......................................... 39
Section 5.11 Intellectual Property ...................................... 40
Section 5.12 Brokers .................................................... 41
Section 5.13 Tax Matters ................................................ 41
Section 5.14 Insurance .................................................. 41
Section 5.15 No Business Activities ..................................... 41
ARTICLE VI COVENANTS AND AGREEMENTS (61kb)
Section 6.1 Conduct of Business of NorthPoint Pending the Effective Time 42
Section 6.2 Conduct of the Verizon DSL Business Pending the
Effective Time ............................................. 45
Section 6.3 No Solicitation ............................................ 46
Section 6.4 Regulatory Compliance Costs ................................ 48
Section 6.5 Real Estate Matters ........................................ 49
Section 6.6 Facilities Related Payments ................................ 50
Section 6.7 Systems Assets ............................................. 53
Section 6.8 Future Contracts ........................................... 53
Section 6.9 Master Services Agreement .................................. 53
Section 6.10 Vendor Contracts ........................................... 53
ARTICLE VII ADDITIONAL AGREEMENTS (56kb)
Section 7.1 Proxy Statement and Registration Statement ................. 54
Section 7.2 NorthPoint Stockholder Meeting ............................. 55
Section 7.3 Additional Agreements ...................................... 56
Section 7.4 Access to Information ...................................... 58
Section 7.5 Public Announcements ....................................... 59
Section 7.6 Indemnification; Maintenance of NorthPoint's
Indemnification, Directors' and Officers' Insurance ........ 59
Section 7.7 Stock Market Listing ....................................... 60
Section 7.8 Post-Merger Parent Board of Directors ...................... 60
Section 7.9 No Shelf Registration ...................................... 60
Section 7.10 Affiliates ................................................. 61
Section 7.11 Blue Sky ................................................... 61
Section 7.12 Tax-Free Reorganization .................................... 61
Section 7.13 Employment and Employee Benefits Matters ................... 62
Section 7.14 Indemnification by Verizon ................................. 62
Section 7.15 Preemptive Right ........................................... 64
Section 7.16 Further Assurances ......................................... 64
ARTICLE VIII CONDITIONS TO THE ASSET CONTRIBUTION AND THE MERGER (25kb)
Section 8.1 Conditions to Each Party's Obligation to Effect the Merger.. 64
Section 8.2 Additional Conditions to Obligations of NorthPoint ......... 66
Section 8.3 Additional Conditions to Obligations of Verizon ............ 67
ARTICLE IX TERMINATION, AMENDMENT AND WAIVER (20kb)
Section 9.1 Termination ................................................ 70
Section 9.2 Effect of Termination ...................................... 71
Section 9.3 Amendment .................................................. 72
Section 9.4 Waiver ..................................................... 73
ARTICLE IX GENERAL PROVISIONS (39kb)
Section 10.1 Non-Survival of Representations, Warranties and Agreements . 73
Section 10.2 Notices .................................................... 73
Section 10.3 Expenses ................................................... 74
Section 10.4 Certain Definitions ........................................ 74
Section 10.5 Headings ................................................... 78
Section 10.6 Severability ............................................... 78
Section 10.7 Entire Agreement; No Third-Party Beneficiaries ............. 79
Section 10.8 Assignment ................................................. 79
Section 10.9 Governing Law .............................................. 79
Section 10.10 Counterparts ............................................... 79
Section 10.11 Interpretation ............................................. 79
|