Document:

exv10w1

 

Exhibit 10.1

ECHO THERAPEUTICS, INC.

NONQUALIFIED STOCK OPTION AGREEMENT

          This NONQUALIFIED STOCK OPTION AGREEMENT (the “Option Agreement”), dated as of the 25th day of
March, 2008 (the “Grant Date”), is between Echo Therapeutics, Inc., a Minnesota corporation (the
“Company”), and Vincent D. Enright (the “Optionee”), a director of the Company.

          WHEREAS, the Company desires to give the Optionee the opportunity to purchase shares of common
stock of the Company (“Common Stock”) as hereinafter provided;

          NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto, intending to be legally bound hereby, agree as
follows:

          1. Grant of Option. The Company hereby grants to the Optionee the right and option
(the “Option”) to purchase all or any part of an aggregate of 50,000 shares of Common Stock. The
Option is in all respects limited and conditioned as hereinafter provided. It is intended that the
Option granted hereunder be a nonqualified stock option (“NQSO”) and not an incentive stock
option (“ISO”) as such term is defined in section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

          2. Exercise Price. The exercise price of the shares of Common Stock covered by this
Option shall be $1.55 per share. It is the determination of the Board of Directors of the Company
(the “Board”) that on the Grant Date the exercise price was not less than the greater of (i) 100%
of the “Fair Market Value,” or (ii) the par value of the Common Stock. The term “Fair Market
Value” for purposes of this Option Agreement means the closing price of a share of Common Stock on
the trading day before the Grant Date.

          3. Term. Except as otherwise provided in Paragraph 8 or Paragraph 12, this Option
shall expire on March 25, 2018 (the “Expiration Date”), which date is not more than 10 years from
the Grant Date. This Option shall not be exercisable on or after the Expiration Date.

          4. Exercise of Option. The Optionee shall have the right to purchase from the
Company, on and after the following dates, the following number of Shares:

 

 

	 	 	 	 	 
	     Date Installment Becomes	 	 
	             Exercisable	 	Number of Option Shares
	Grant Date
	 	16,667 Shares
	March 25, 2009
	 	16,667 Shares
	March 25, 2010
	 	16,666 Shares

Once options become exercisable, they will remain exercisable until they are exercised or until
they terminate.

          5. Method of Exercising Option. Subject to the terms and conditions of this Option
Agreement, the Option may be exercised by written notice to the Company at its principal office,
which is presently located at 10 Forge Parkway, Franklin, Massachusetts 02038, Attn: Chief
Executive Officer. Such notice (a suggested form of which is attached hereto) shall state the
election to exercise the Option and the number of whole shares with respect to which it is being
exercised; shall be signed by the person or persons so exercising the Option; shall, unless the
Company otherwise notifies the Optionee, be accompanied by the investment certificate referred to
in Paragraph 6; and shall be accompanied by payment of the full exercise price of such shares.
Only full shares will be issued.

          The exercise price shall be paid to the Company –

          (a) in cash, or by certified check, bank draft, or postal or express money order;

          (b) through the delivery of shares of Common Stock which shall be valued at the closing sale
price of the Common Stock on the date of exercise (“Exercise Fair Market Value”);

          (c) by having the Company withhold shares of Common Stock at the Exercise Fair Market Value on
the date of exercise;

          (d) by delivering a properly executed notice of exercise of the Option to the Company and a
broker, with irrevocable instructions to the broker promptly to deliver to the Company the amount
of sale or loan proceeds necessary to pay the exercise price of the Option; or

          (e) in any combination of (a), (b), (c) or (d) above.

          In the event the exercise price is paid, in whole or in part, with shares of Common Stock, the
portion of the exercise price so paid shall be equal to the Exercise Fair Market Value of the
Common Stock surrendered.

          Upon receipt of notice of exercise and payment, the Company shall deliver a certificate or
certificates representing the shares with respect to which the Option is so exercised. Such
certificate(s) shall be registered in the name of the person or persons so exercising the

 

 

Option (or, if the Option is exercised by the Optionee and if the Optionee so requests in the
notice exercising the Option, shall be registered in the name of the Optionee and the Optionee’s
spouse, jointly, with right of survivorship) and shall be delivered as provided above to, or upon
the written order of, the person or persons exercising the Option. In the event the Option is
exercised by any person or persons after the death or disability of the Optionee, the notice shall
be accompanied by appropriate proof of the right of such person or persons to exercise the Option.
All shares that are purchased upon the exercise of the Option as provided herein shall be fully
paid and non-assessable.

          6. Shares to be Purchased for Investment. Unless the Company has theretofore notified
the Optionee that a registration statement covering the shares to be acquired upon the exercise of
the Option has become effective under the Securities Act of 1933, as amended (the “1933 Act”), and
the Company has not thereafter notified the Optionee that such registration statement is no longer
effective, it shall be a condition to any exercise of this Option that the shares acquired upon
such exercise be acquired for investment and not with a view to distribution, and the person
effecting such exercise shall submit to the Company a certificate of such investment intent,
together with such other evidence supporting the same as the Company may request. The Company
shall be entitled to restrict the transferability of the shares issued upon any such exercise to
the extent necessary to avoid a risk of violation of the 1933 Act (or of any rules or regulations
promulgated thereunder), or of any state laws or regulations. Such restrictions may, in the
discretion of the Company, be noted or set forth in full on the share certificates.

          7. Transferability of Option. This Option is not assignable or transferable, in whole
or in part, by the Optionee other than by will or by the laws of descent and distribution. During
the lifetime of the Optionee, the Option shall be exercisable only by the Optionee or, in the event
of his or her disability, by his or her guardian or legal representative.

          8. Termination of Service. If the Optionee’s service with the Company is terminated
for any reason prior to the Expiration Date, this Option may be exercised, to the extent of the
number of shares with respect to which the Optionee could have exercised it on the date of such
termination of service, or to any greater extent permitted by the Company, by the Optionee at any
time prior to the earlier of (i) the Expiration Date, or (ii) six months after the date of such
termination of service.

          9. Withholding of Taxes. The obligation of the Company to deliver shares of Common
Stock upon the exercise of this Option shall be subject to applicable federal, state and local tax
withholding requirements. If the exercise of the Option is subject to the withholding requirements
of applicable federal, state and/or local tax law, the Optionee, subject to such additional
withholding rules (the “Withholding Rules”) as shall be adopted by the Company, may satisfy the
withholding tax, in whole or in part, by electing to have the Company withhold (or by returning to
the Company) shares of Common Stock, which shares shall be valued, for this purpose, at their Fair
Market Value on the date the amount attributable to the exercise of the Option is includable in
income by the Optionee under section 83 of the Code. Such election must be made in compliance with
and subject to the Withholding Rules, and the Company may

 

 

limit the number of withheld shares to the extent necessary to avoid adverse accounting
consequences.

          10. Change in Control. Notwithstanding any other Paragraph of this Option Agreement,
each outstanding Option shall become fully vested and exercisable upon a “Change in Control” (as
defined below). However, this Paragraph shall not increase the extent to which an Option is vested
or exercisable if the Optionee’s termination of service occurs prior to the Change in Control.
“Change in Control” means the date on which occurs a merger, consolidation, reorganization,
recapitalization, stock dividend, stock split, combination or exchange of shares, spin-off,
split-up, or other similar change in capitalization or event in which the stockholders of the
Company immediately prior to the transaction own less than 50% of the Company’s outstanding shares
immediately after such transaction.

          11. Adjustment in Case of Changes in Common Stock. The maximum number of shares with
respect to which Options may be granted under this Agreement, and the number of shares issuable
upon the exercise of outstanding Options under this Agreement (Paragraph 4), as well as the option
price per share of such outstanding Options (Paragraph 2), shall be adjusted, as may be deemed
appropriate by the Company, to reflect any stock dividend, stock split, spin-off, share combination
or similar change in the capitalization of the Company. In the event any such change in
capitalization cannot be reflected in a straight mathematical adjustment of the number of shares
issuable upon the exercise of outstanding Options (and a straight mathematical adjustment of the
exercise price thereof), the Committee shall make such adjustments as are appropriate to reflect
most nearly such straight mathematical adjustment. Such adjustments shall be made only as
necessary to maintain the proportionate interest of Optionees, and preserve, without exceeding, the
value of Options.

          12. Certain Corporate Transactions. In the event of a corporate transaction (such as,
for example, a merger, consolidation, acquisition of property or stock, separation, reorganization
or liquidation), the surviving or successor corporation shall assume each outstanding Option or
substitute a new option for each outstanding Option; provided, however, that, in the event of a
proposed corporate transaction, the Company may terminate all or a portion of the outstanding
Options, effective upon the closing of the corporate transaction, if it determines that such
termination is in the best interests of the Company. If the Company decides so to terminate
outstanding Options, the Company shall give the Optionee not less than seven days’ notice prior to
any such termination, and any Option which is to be so terminated may be exercised (if and only to
the extent that it is then exercisable, but taking into consideration the full vesting that occurs
under Paragraph 10 if the transaction constitutes a Change in Control) up to, and including the
time of, such termination. Further, the Company, in its discretion, may accelerate, in whole or in
part, the date on which any or all Options become exercisable. The Company also may, in its
discretion, change the terms of any outstanding Option to reflect any such corporate transaction.

          13. Governing Law. This Option Agreement shall be governed by the applicable Code
provisions to the maximum extent possible. Otherwise, the laws of the State of Minnesota (without
reference to the principles of conflict of laws) shall govern the operation of, and the rights of
the Optionee under, this Option Agreement.

 

 

     IN WITNESS WHEREOF, the Company has caused this Option Agreement to be duly executed by its
duly authorized officer and the Optionee has hereunto set his hand and seal, all as of the day and
year first above written.

	 	 	 	 	 
	 	ECHO THERAPEUTICS, INC.

 	 
	 	By:  	/s/ Harry G. Mitchell
 	 
	 	 	Harry G. Mitchell 	 
	 	 	Chief Operating Officer and

Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Vincent D. Enright
 	 
	 	Optionee 	 
	 	 	 
	 

 

 

ECHO THERAPEUTICS, INC.

Notice of Exercise of Nonqualified Stock Option

     I hereby exercise the nonqualified stock option granted to me pursuant to the Nonqualified
Stock Option Agreement, dated as of March, 25 2008 by Echo Therapeutics, Inc. (the “Company”), with
respect to the following number of shares of the Company’s common stock (“Shares”), par value $.01
per Share, covered by said option:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Number of Shares to be purchased	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	Exercise price per Share
	 	 	$	 	 	 	 	 
	 

	 	Total exercise price
	 	 	$	 	 	 

	 	 
	 

	 	 	 	 	 	 	 	 	 	 

	                    	A.	 	Enclosed is cash or my certified check, bank draft, or postal or express money
order in the amount of $                     in full/partial [circle one] payment for
such Shares;

and/or

	                    	B.	 	Enclosed is/are                     Share(s) with a total Exercise Fair Market
Value of $                     on the date hereof in full/partial [circle one] payment for such
Shares;

and/or

	                    	C.	 	Please withhold                      Shares with a total Exercise Fair Market
Value of $                     on the date hereof in full/partial [circle one] payment for
such Shares;

and/or

                     D. I have provided notice to                      [insert name of broker], a
broker, who will render full/partial [circle one] payment for such Shares. [Optionee should attach
to the notice of exercise provided to such broker a copy of this Notice of Exercise and irrevocable
instructions to pay to the Company the full exercise price for the number of Shares purchased in
this method.]

     Please have the certificate or certificates representing the purchased Shares registered in
the following name or names*                                         and sent to:

                
               
               
               
                
               
               
             

 

			
	*	 	Certificates may be registered in the name of the
Optionee alone or in the joint names (with right of survivorship) of the
Optionee and his or her spouse.

 

 

     If the condition in Paragraph 6 (“Shares to be Purchased for Investment”) of the Nonqualified
Stock Option Agreement related to the Shares purchased hereby is applicable, the undersigned hereby
certifies that the Shares purchased hereby are being acquired for investment and not with a view to
the distribution of such Shares.

	 	 	 	 	 	 	 	 	 
	DATED:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 
	 	 

Optionee’s Signaturelh8k5ex10-1.htm

     

     

    Exhibit
10.1

     

     

    THIS
AGREEMENT dated as of March 26, 2008 (the “Agreement”) by and
among CommScope, Inc., a Delaware corporation (“CommScope”), Andrew Corporation,
a Delaware corporation (“Andrew”), Andrew
Corporation Mauritius, a Mauritius corporation (“Andrew Mauritius”,
and together with CommScope and Andrew, the “Andrew Parties”), Andes Industries,
Inc., a Nevada corporation (“Andes”), PCT
International, Inc., a Nevada corporation (“PCT International”),
PCT Mauritius Holding Limited, a private company incorporated in Mauritius under
the Companies Act 2001 (“PCT Mauritius”), Mr.
Steven Youtsey, an individual (“Youtsey”), and PCT
Broadband Telecommunications (Yantai) Co. Ltd., a wholly foreign-owned
enterprise organized and existing under the laws of the People’s Republic of
China (formerly known as Andrew Broadband Telecommunications (Yantai) Co. Ltd.)
(“PCTY”, and
together with Andes, PCT International, PCT Mauritius and Youtsey, the “Andes
Parties”).

     

    RECITALS

     

    WHEREAS,
Andrew is a wholly-owned indirect subsidiary of CommScope and is the owner of
7,789,813 shares of Common Stock (the “Shares”) of Andes,
par value $0.001 per share (the “Common
Stock”);

     

    WHEREAS,
PCT International issued a Senior Note, dated April 2, 2007, in favor of Andrew,
in the original principal amount of $9,035,000 (the “Andrew
Note”);

     

    WHEREAS,
PCT Mauritius issued a Senior Note, dated March 30, 2007, in favor of Andrew
Mauritius, which is a wholly-owned subsidiary of Andrew, in the original
principal amount of $5,592,000 (the “Andrew Mauritius
Note”);

     

    WHEREAS,
Andes issued a Promissory Note, dated September 29, 2006, in favor of Andrew, in
the original principal amount of $1,518,369.72 (the “Promissory Note”, and
together with the Andrew Note and the Andrew Mauritius Note, the “Notes”);

     

    WHEREAS,
Andrew and Andrew Mauritius jointly hold a Warrant to Acquire Common Stock of
Andes dated April 2, 2007 (the “Warrant”);

     

    WHEREAS,
the Andrew Parties wish to transfer the Shares, the Notes and the Warrant to
Andes for the consideration and according to the terms, and pursuant to the
conditions, of this Agreement;

     

    NOW,
THEREFORE, in consideration of the foregoing, the parties hereby agree as
follows:

     

    1. Transactions.

     

    1.1. Closing
Date.  The closing of the transactions contemplated by this
Agreement (the “Closing”) shall be
held at the offices of Fried, Frank, Harris, Shriver & Jacobson LLP, One New
York Plaza, New York, New York, at 9:00 a.m., local time, on the third business
day after the satisfaction or waiver of the conditions set forth in Article 5
(excluding those conditions that, by their terms, cannot be satisfied until the
Closing, but the Closing shall be subject to the satisfaction or waiver of those
conditions), or at such other time, place or manner (including via facsimile) as
may be mutually agreed to by the parties hereto (the date on which the Closing
occurs being referred to in this Agreement as the “Closing
Date”).

     

    1.2. Transfer of Shares, Notes
and Warrant.  On the Closing Date, the Andrew Parties shall
transfer to the respective issuing Andes Parties all of their right, title and
interest in and to the Shares, the Notes and the Warrant, free and clear of all
liens, security interests, encumbrances, mortgages, pledges or other
restrictions (“Encumbrances”).  The
parties acknowledge and agree that the Andrew Note and the Andrew Mauritius Note
evidence purchase money indebtedness for the acquisition by the Andes Parties of
certain assets and that the transfer of the Andrew Note and the Andrew Mauritius
Note from the Andrew Parties to the respective issuing Andes Parties reflects an
adjustment of the purchase price for such assets.

     

    1.3. Transfer of Z-Wire Patent
and Related Know-How.  On the Closing Date, Andrew shall
transfer to Andes all of the right, title and interest of Andrew in and to the
Z-Wire Intellectual Property pursuant to the Z-Wire IP Agreement (the “IP
Transfer Agreement”), attached hereto as Exhibit A; except
that pursuant to the IP Transfer Agreement, Andrew will retain a non-exclusive
license to the Patents (as defined in the IP Transfer Agreement) for use of the
Patents in connection with products other than Drop Cable Products (as defined
in the IP Transfer Agreement).  For the purposes hereof, “Z-Wire
Intellectual Property” means the following intellectual property owned by
Andrew: (a) the trademark “Z-Wire,” together with U.S. trademark application
serial no. 78/658,023, and the goodwill associated therewith; (b) U.S. Patent
No. 7,048,343 and all counterparts thereof throughout the world; and (c) all
intellectual property, technology and know how of Andrew identified on Schedule
A attached to the IP Transfer Agreement.

     

    1.4. Waiver of
Rights.  Effective as of the Closing, Andes and Youtsey hereby
waive all rights to otherwise acquire, or prohibit the transfer of, the Shares
pursuant to the Bylaws of Andes (as amended, the “Bylaws”) and the
Amended and Restated Investor Rights Agreement (the “Investor Rights
Agreement”) dated as of March 30, 2007 by and between Andes, the
stockholders of Andes identified on the signature page thereto and Andrew, or
otherwise.

     

    1.5. Releases. On or
before the Closing Date, the Andes Parties, and each director, stockholder and
subsidiary of Andes (other than Andrew), shall execute the Andes Release
substantially in the form of Exhibit B hereto
(“Andes
Release”) and the Andrew Parties shall execute the Andrew Release
substantially in the form of Exhibit C hereto
(“Andrew
Release”).

     

    1.6. Closing
Deliveries.  At the Closing,

     

    (a) Andrew
will deliver:

     

    (i) The
certificate or certificates representing the Shares, together with duly executed
stock powers or such other customary instruments of transfer as reasonably
requested by Andes;

     

    (ii) The
instruments representing the Notes;

     

    (iii) The
instrument representing the Warrant;

     

    (iv) The IP
Transfer Agreement executed by Andrew; and

     

    (v) The
Andrew Release, executed by each of the Andrew Parties; (each of the deliveries
under Section 1.6(a), the “Andrew Closing
Deliveries”); and

     

    (b) Andes
will deliver:

     

    (i) The IP
Transfer Agreement executed by Andes, PCT International and PCTY;
and

     

    (ii) The Andes
Release, executed by each of the Andes Parties and by each director, stockholder
and subsidiary of Andes (other than Andrew); (each of the deliveries under
Section 1.6(b), the “Andes Closing
Deliveries”).

     

    1.7. Subsequent
Adjustments.  If, at any time or from time to time, during the
two year period beginning on the Closing Date (the “Adjustment Period”),
directly or indirectly, in one or a series of transactions (a) Andes enters into
a merger or other business combination transaction or sells all or any part of
its business, properties or tangible or intangible assets (including the stock
or assets of any subsidiary) that (i) constitute more than 15% of Andes’ total
assets as set forth in the most recently prepared consolidated balance sheet of
Andes, or (ii) account for more than 15% of Andes’ total revenues as set forth
in the most recently prepared consolidated statement of operations of Andes, or
(iii) constitute a separate line of business or business segment, or (b) Youtsey
sells all or any portion of his Common Stock in connection with a sale of at
least 50% (by vote or value) of the outstanding Common Stock then held by all
stockholders, including by merger or similar transaction, or (c) Andes makes any
distribution to stockholders, declares a dividend or repays any loan or other
amount due to a stockholder that is outstanding on the date of this Agreement
(other than Notes or other amounts due to Andrew as of the Closing Date), then
in each and every such case Andes or Youtsey, as applicable, will pay to Andrew
in immediately available funds, within two business days of the closing of each
such transaction, the lesser of $16 million (less any amount previously paid to
Andrew under this Section 1.7) or 15% of the proceeds  (or if such
proceeds are not cash, the cash equivalent thereof) of such transaction (such
payments, the “Adjustments”).  Such
Adjustments shall be paid for (a) any transactions closed within the Adjustment
Period and (b) any transactions that are not closed within the Adjustment Period
if Andes or Youtsey has not acted in good faith or has purposely manipulated or
delayed closing such transactions for a purpose (among others) of avoiding this
Section 1.7.

     

    2. Representations and
Warranties of the Andrew Parties.  The Andrew Parties hereby
jointly and severally represent and warrant to the Andes Parties:

     

    2.1. Authority,
Organization.

     

    (a) Each of
the Andrew Parties is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization;

     

    (b) Each of
the Andrew Parties has all requisite power and authority to execute and deliver
this Agreement and consummate the transactions contemplated by this
Agreement.  The execution and delivery by each of the Andrew Parties
of this Agreement and the consummation by each of the Andrew Parties of the
transactions contemplated by this Agreement have been duly authorized by all
necessary action of the applicable Andrew Party;

     

    (c) This
Agreement has been duly and validly executed and delivered by each of the Andrew
Parties and constitutes a valid and binding agreement of each of the Andrew
Parties, enforceable against each of the Andrew Parties in accordance with its
terms; and

     

    (d) The
execution and delivery of this Agreement by the Andrew Parties does not, and the
consummation of the transactions contemplated by this Agreement will not,
(i) violate or conflict with the organizational documents or any material
agreement of any of the Andrew Parties or (ii) violate any law, regulation,
order, judgment or decree of any Governmental Entity (as defined below)
applicable to any of the Andrew Parties.

     

    2.2. Title.  Andrew
has, and upon the consummation of the transactions contemplated by this
Agreement, Andrew will transfer to Andes, good and valid title to the Shares,
free and clear of any Encumbrances (except as set forth in the Bylaws and the
Investor Rights Agreement).  The Andrew Parties, as applicable, have
sole ownership of the Notes and the Warrant, and each of the Notes and the
Warrant is held and since issuance has been held continuously by the original
holder thereof.  Andrew has sole ownership of the registered Z-Wire
Intellectual Property and the right to transfer same to Andes in accordance with
this Agreement and the IP Transfer Agreement.  The registered Z-Wire
Intellectual Property is in good standing and all necessary fees have been paid
to maintain U.S. Patent No. 7,084,343 and U.S. Trademark Application Serial No.
78/658,023 for “Z-Wire”.

     

    2.3. Consents.  Except for the Regulatory
Approvals (as defined in Section 4.1), none of the Andrew Parties is required to
obtain any permit, authorization, consent or approval of or by, or make any
notification to or filing with, (i) any multinational or supranational, federal,
provincial, state or other government or governmental body, (ii) any division or
authority of any government, governmental body or private body exercising any
statutory, regulatory, expropriation or taxing authority under the authority of
any government or governmental body covered under clause (i), (iii) any
domestic, foreign or international judicial, or administrative court or
arbitrator acting under the authority of any entity under clause (i) or (ii)
(each entity described under clause (i), (ii) and (iii), a “Governmental
Entity”) or (iv) any other
person or entity, in each case, in connection with the execution, delivery and
performance by any of the Andrew Parties of this Agreement or the consummation
by the Andrew Parties of the transactions contemplated by this
Agreement.

     

    2.4. No
Litigation.

     

    (a) Except
the Final Judgment (as defined below), there is no action, suit, proceeding at
law or in equity by any person, or any arbitration or any administrative or
other proceeding by or before any Governmental Entity, pending or, to the
knowledge of any Andrew Party, threatened against any of the Andrew Parties (i)
which would prohibit or materially delay or impair the consummation of the
transactions contemplated by this Agreement, or (ii) to the knowledge of any
Andrew Party, that involves any of the Z-Wire Intellectual
Property.

     

    (b) There is
no action, suit, proceeding at law or in equity, arbitration, or any other
proceeding filed, initiated, brought, pending, or otherwise begun in any way
(whether or not service of process is complete, and whether or not the relevant
jurisdiction would consider the action to have been started without service) (i)
by any of the Andrew Parties against any of the Andes Parties, or their current
and former directors, officers, employees, or agents, or (ii) to the knowledge
of any Andrew Party, that involves any of the Z-Wire Intellectual
Property.

     

    3. Representations and
Warranties of the Andes Parties.  The Andes Parties hereby
jointly and severally represent and warrant to the Andrew Parties:

     

    3.1. Authority,
Organization.

     

    (a) Each of
the Andes Parties is duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization;

     

    (b) Each of
the Andes Parties has all requisite power and authority to execute and deliver
this Agreement and consummate the transactions contemplated by this
Agreement.  The execution and delivery by each of the Andes Parties of
this Agreement and the consummation by each of the Andes Parties of the
transactions contemplated by this Agreement have been duly authorized by all
necessary action of the applicable Andes Party;

     

    (c) This
Agreement has been duly and validly executed and delivered by each of the Andes
Parties, and constitutes a valid and binding agreement of each of the Andes
Parties, enforceable against each of the Andes Parties, in accordance with its
terms;

     

    (d) The
execution and delivery of this Agreement by the Andes Parties does not, and the
consummation of the transactions contemplated by this Agreement will not,
(i) violate or conflict with the organizational documents or any material
agreement of the Andes Parties or (ii) violate any law, regulation, order,
judgment or decree of any Governmental Entity applicable to the Andes Parties;
and

     

    (e) All of
the directors, stockholders and subsidiaries of Andes are listed as signatories
on the Andes Release (other than Andrew).

     

    3.2. Consents.  Except for the Regulatory
Approvals, none of the Andes Parties is required to obtain any permit,
authorization, consent or approval of or by, or make any notification to or
filing with, any Governmental Entity or any other person or entity, in each
case, in connection with the execution, delivery and performance by any of the
Andes Parties of this Agreement or the consummation by the Andes Parties of the
transactions contemplated by this Agreement.

     

    3.3. No
Litigation.

     

    (a) There is
no action, suit, proceeding at law or in equity by any person, or any
arbitration or any administrative or other proceeding by or before any
Governmental Entity, pending or, to the knowledge of any Andes Party, threatened
against any of the Andes Parties which would prohibit or materially delay or
impair the consummation of the transactions contemplated by this
Agreement.

     

    (b) There is
no action, suit, proceeding at law or in equity, arbitration, or any other
proceeding filed, initiated, brought, pending, or otherwise begun in any way
(whether or not service of process is complete, and whether or not the relevant
jurisdiction would consider the action to have been started without service) by
any of the Andes Parties against any of the Andrew Parties, or their current and
former directors, officers, employees, or agents.

     

    4. Certain
Covenants.

     

    4.1. Necessary
Filings.

     

    (a) Subject
to the terms and conditions of this Agreement, the Andrew Parties and the Andes
Parties shall, and, where applicable, shall cause their respective affiliates
to, perform all of the obligations required or desirable to be performed by such
parties, cooperate in connection therewith, and do all such other acts and
things as may be necessary or desirable in order to consummate, as soon as
reasonably practicable, the transactions contemplated by this
Agreement.  Without limiting the generality of the foregoing, each of
Andrew and Andes shall, and, where appropriate shall cause their respective
subsidiaries to, apply for and use commercially reasonable efforts to promptly
obtain all regulatory approvals (including, but not limited to, any approval by
the United States Department of Justice (the “DOJ”) as required by
the proposed final judgment filed on December 6, 2007 in U.S. v. CommScope, Inc. and Andrew
Corporation (D.C. District Ct. 2007) (No. 07-2200) (the “Final Judgment”) set
forth on Schedule 4.1 hereto (the “Regulatory
Approvals”)).

     

    (b) If any of
the Andrew Parties or Andes Parties receives a request for information or
documentary material from any Governmental Entity with respect to any of the
transactions contemplated herein, then such party shall make, or cause to be
made, as promptly as practicable (but in the case of any such request under
Section VI of the Final Judgment, no later than the period provided for under
that Section VI) an appropriate response in compliance with such
request.  In addition, subject to applicable law, each of Andrew and
Andes will keep the other apprised of the status of any such meetings,
discussions, or communications with, and any inquiries or requests for
additional information from any Governmental Entity.

     

    4.2. Further
Assurances.  The Andrew Parties and the Andes Parties each
agree to cooperate with each other, and at the request of the other, to execute
and deliver any further instruments or documents and to take all such further
action, including, without limitation, causing their respective subsidiaries to
take such actions, as the other may reasonably request, in order to evidence or
effectuate the consummation of the transactions contemplated by this Agreement
and to otherwise carry out the intent of the parties hereunder.

     

    4.3. No
Solicitation.

     

    (a) The
Andrew Parties covenant that during the Adjustment Period, each of the Andrew
Parties shall not, and they shall cause their respective affiliates not to,
directly or indirectly, solicit the employment of or hire any person who at the
time of such solicitation or hiring or who within one year prior thereto, is or
was employed by any of the Andes Parties, on a full or part-time basis; provided
however, that the Andrew Parties may engage in general solicitations for, and
hire, employees through public advertising of employment opportunities not
specifically targeted or directed at employees of the Andes
Parties.

     

    (b) The Andes
Parties covenant that during the Adjustment Period, each of the Andes Parties
shall not, and they shall cause their respective affiliates not to, directly or
indirectly, solicit the employment of or hire any person who at the time of such
solicitation or hiring or who within one year prior thereto, is or was employed
by any of the Andrew Parties, on a full or part-time basis; provided however,
that the Andes Parties may engage in general solicitations for, and hire,
employees through public advertising of employment opportunities not
specifically targeted or directed at employees of the Andrew
Parties.

     

    4.4. To the
extent permitted by law, on and after the Closing Date, none of the Andrew
Parties (including Andrew, as assignor of the Z-Wire Intellectual Property)
shall directly or indirectly challenge the validity of any of the Z-Wire
Intellectual Property.

     

    4.5. None of
the Andrew Parties shall treat the transfer of the Andrew Note and the Andrew
Mauritius Note pursuant to Section 1.2, for federal or state income tax
reporting purposes, as giving rise to a bad debt deduction but instead shall,
except as otherwise required by law, treat such transfer as a purchase price
adjustment.

     

    5. Closing
Conditions.

     

    5.1. Conditions to Each Party’s
Obligation to Effect the Closing.  The obligation of each of
the parties under this Agreement to consummate the transactions contemplated by
this Agreement is subject to the satisfaction of the following conditions as of
the Closing Date:

     

    (a) All
Regulatory Approvals (except for that required by the DOJ, which is covered by
Section 5.1(b)) shall have been obtained or, in the case of waiting or
suspensory periods, have expired or been terminated;

     

    (b) Written
notice from the DOJ to CommScope that the DOJ does not object to the
transactions contemplated by this Agreement shall have been obtained as
prescribed in Section VI.C. of the Final Judgment; and

     

    (c) No
Governmental Entity has enacted, issued, promulgated, enforced, made, entered,
issued or applied any law (whether temporary, preliminary or permanent) that
makes this Agreement illegal or otherwise directly or indirectly enjoins,
restrains or otherwise prohibits consummation of this Agreement.

     

    5.2. Conditions Applicable to the
Andrew Parties.  The obligation of the Andrew Parties under
this Agreement to consummate the transactions contemplated by this Agreement is
subject to the satisfaction (or waiver by Andrew) of the following conditions as
of the Closing Date:

     

    (a) Accuracy of the
Representations and Warranties.  The representations and
warranties of the Andes Parties as set forth in Article 3 hereof shall be true
and correct in all material respects on the Closing Date as though made on the
Closing Date; and the Andes Parties shall have delivered to Andrew a certificate
to such effect, dated the Closing Date, signed by an authorized officer of each
of the Andes Parties; and

     

    (b) Andes Closing
Deliveries.  Andes shall have delivered to Andrew the Andes
Closing Deliveries.

     

    5.3. Conditions Applicable to the
Andes Parties.  The obligation of the Andes Parties under this
Agreement to consummate the transactions contemplated by this Agreement is
subject to the satisfaction (or waiver by Andes) of the following conditions as
of the Closing Date:

     

    (a) Accuracy of the
Representations and Warranties.  The representations and
warranties of the Andrew Parties as set forth in Article 2 hereof shall be true
and correct in all material respects on the Closing Date as though made on the
Closing Date; and the Andrew Parties shall have delivered to Andes a certificate
to such effect, dated the Closing Date, signed by an authorized officer of each
of the Andrew Parties; and

     

    (b) Andrew Closing
Deliveries.  Andrew shall have delivered to Andes the Andrew
Closing Deliveries.

     

    6. Termination.

     

    6.1. Termination by Either
Party.  This Agreement may be terminated prior to Closing by
either Andrew or Andes if the Closing has not occurred prior to June 1, 2008;
provided that the right to terminate this Agreement pursuant to this Section 6.1
shall not be available to any party who is in material breach of this
Agreement.

     

    6.2. Termination because of DOJ
Objection.  This Agreement may be terminated prior to Closing
by either Andrew or Andes if CommScope receives written notice from the DOJ that
the DOJ objects to the transactions contemplated by this Agreement, as
prescribed in Section VI.C. of the Final Judgment.

     

    6.3. Termination by
Andrew.  This Agreement may be terminated by Andrew if there
shall have been a breach of any representation, warranty, covenant or agreement
contained in this Agreement on the part of the Andes Parties or if any such
representation or warranty shall have become untrue or inaccurate, such that (i)
the conditions set forth in Section 5.2 would not be satisfied and (ii) such
breach or inaccuracy is not capable of being cured or, if reasonably capable of
being cured, shall not have been cured prior to the 30 days following notice of
such breach or inaccuracy; provided, however, that no Andrew Party is then in
breach of any of its representations, warranties, covenants or agreements
contained in this Agreement such that the conditions set forth in Section 5.3
would not be satisfied.

     

    6.4. Termination by
Andes.  This Agreement may be terminated by Andes if there
shall have been a breach of any representation, warranty, covenant or agreement
contained in this Agreement on the part of the Andrew Parties or if any such
representation or warranty shall have become untrue or inaccurate, such that (i)
the conditions set forth in Section 5.3 would not be satisfied and (ii) such
breach or inaccuracy is not capable of being cured or, if reasonably capable of
being cured, shall not have been cured prior to the 30 days following notice of
such breach or inaccuracy; provided, however, that no Andes Party is then in
breach of any of its representations, warranties, covenants or agreements
contained in this Agreement such that the conditions set forth in Section 5.2
would not be satisfied.

     

    6.5. Effect of
Termination.  In the event that this Agreement shall be
terminated pursuant to this Article 6, all further obligations of the parties
under this Agreement (other than Sections 7.6, 7.7, 7.8 and 7.9) shall be
terminated without further liability of any such party to the other, provided
that nothing herein shall relieve any such party from liability for its breach
of this Agreement prior to the termination of this Agreement.

     

    7. Miscellaneous.

     

    7.1. Notices.  Any
notice or other communication required or permitted hereunder shall be in
writing and shall be delivered personally, sent by facsimile transmission or
sent by certified, registered or express mail, postage prepaid.  Any
such notice shall be deemed given when so delivered personally, or sent by
facsimile transmission or, if mailed, five days after the date of deposit in the
United States mails, as follows:

     

    
      	
               

            	
              (i)

            	
              if
      to the Andrew Parties, to: 

            

    

     

    CommScope,
Inc.

    1100
CommScope Place, SE

    P.O. Box
339

    Hickory,
North Carolina 28602

    Attention:  General
Counsel

    Facsimile:  (828)
431-2520

    

    with a
copy to (which shall not constitute notice):

    

    Fried,
Frank, Harris, Shriver & Jacobson LLP

    One New
York Plaza

    New York,
NY  10004

    Attention:  Lois
Herzeca

    Facsimile:  (212)
859-4000

    

    
      	
               

            	
              (ii)

            	
              if
      to the Andes Parties to: 

            

    

     

    Andes
Industries, Inc.

    1715 West
Sunrise Boulevard

    Gilbert,
AZ 85233

    Attention:  Steven
Youtsey

    Facsimile:  (480)
522-2143

    

    with a
copy to (which shall not constitute notice):

    

    Squire,
Sanders & Dempsey L.L.P.

    Two
Renaissance Square

    40 North
Central Avenue, Suite 2700

    Phoenix,
Arizona  85004

    Attention:  Joseph
M. Crabb

    Facsimile:  (602)
253-8129

    

    Any party
may by notice given in accordance with this Section to the other party designate
another address or person for receipt of notices hereunder.

     

    7.2. Entire
Agreement.  This Agreement, along with the Schedules and
Exhibits hereto and the Andrew Closing Deliveries and Andes Closing Deliveries,
constitute the entire agreement among the parties hereto with respect to the
subject matter hereof and supersede all prior agreements, written or oral, with
respect thereto.

     

    7.3. Modification and
Waiver.  No amendment, modification or alteration of the terms
or provisions of this Agreement shall be binding unless the same shall be in
writing and duly executed by all of the parties hereto.  No waiver of
any of the provisions of this Agreement shall be deemed to or shall constitute a
waiver of any other provision hereof (whether or not similar).  No
delay on the part of any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof.

     

    7.4. Binding Effect; No
Assignment.  This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and legal
representatives.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by the parties.  Notwithstanding this provision, Andrew and
Andes may each assign its respective rights, except the rights under Section
4.3, to an entity that (a) purchases it, or (b) purchases substantially all of
its assets related to the Z-Wire Intellectual Property.

     

    7.5. No Third Party
Rights.  Nothing in this Agreement shall create or be deemed to
create any third-party beneficiary rights to any person other than the parties
hereto, except for the third-party beneficiaries of the Andrew Release and the
Andes Release.

     

    7.6. Expenses.  Each
of the parties shall bear its own expenses in connection with the transactions
specified herein.

     

    7.7. Governing
Law.  This Agreement shall be construed in accordance with and
governed by the laws of the State of New York without regard to provisions
concerning conflict of laws principles that would require the application of the
law of another jurisdiction.

     

    7.8. Jurisdiction.  Each
of parties hereto (i) consents to submit itself to the personal jurisdiction of
Supreme Court of State of New York or any court of the United States, each
located in the County of New York, New York in the event any dispute arises out
of or relates to this Agreement, (ii) agrees that it shall not attempt to deny
or defeat such personal jurisdiction by motion or other request for leave from
any such court, (iii) waives and agrees not to plead or claim in any such court
that any such legal action or proceeding brought in any such court has been
brought in an inconvenient forum and (iv) agrees that it shall not bring any
action arising out of or relating to this Agreement in any other court other
than Supreme Court of State of New York or any court of the United States, each
located in the County of New York, New York.  Each of the parties
hereto hereby agree that service of process, summons, notice or document by U.S.
registered mail to their respective address set forth herein shall be effective
service of process for any suit or proceeding in connection with this
Agreement.

     

    7.9. WAIVER OF JURY
TRIAL.  EACH OF THE PARTIES WAIVES ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

     

    7.10. Counterparts.  This
Agreement may be executed by the parties hereto in separate counterparts, each
of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

     

    7.11. Headings.  The
headings in this Agreement are for reference only, and shall not affect the
interpretation of this Agreement.

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement on the date first
above written.

     

    
      
        	 	
                COMMSCOPE,
      INC. 

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Frank M.
      Drendel	 
	 	 	Name: 
      Frank M. Drendel	 
	 	 	Title:   
      Chairman of the Board and Chief Executive Officer	 
	 	 	 	 

      

    

     

    
      
        
          	 	
                  ANDREW
      CORPORATION

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Marvin S.
      Edwards	 
	 	 	Name:  Marvin
      S. Edwards 	 
	 	 	Title:   
      Executive Vice President	 
	 	 	 	 

        

      

    

     

    
      
        
          	 	
                  
                    ANDREW
      CORPORATION MAURITIUS 

                  

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/
      Dan Hartnett	 
	 	 	Name:  Dan
      Hartnett	 
	 	 	Title:    Director	 
	 	 	 	 

        

      

    

     

    
      
        	 	
                
                  ANDES
      INDUSTRIES, INC. 

                

              	 
	 	 	 	 
	
                 

              	
                By:
      

              	 /s/
      Steven D. Youtsey	 
	 	 	Name: 
      Steven D. Youtsey	 
	 	 	Title:   
      Chief Executive Officer	 
	 	 	 	 

      

    

     

    
      
        
          	 	
                  PCT
      INTERNATIONAL, INC.

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 /s/
      Steven D. Youtsey	 
	 	 	Name: 
      Steven D. Youtsey	 
	 	 	Title:    Chief
      Executive Officer	 
	 	 	 	 

        

      

    

     

    
      
        
          	 	
                  
                    PCT
      MAURITIUS HOLDING LIMITED 

                  

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 /s/ Steven D. Youtsey	 
	 	 	Name: 
      Steven D. Youtsey	 
	 	 	Title:   
      Chief Executive Officer	 
	 	 	 	 

        

      

    

     

    
      
        
          	 	
                  
                    STEVEN
      YOUTSEY 

                  

                	 
	 	 	 	 
	
                   

                	  /s/
      Steven D. Youtsey	 
	 	 	 	 

        

      

    

     

    
      
        
          	 	
                  
                    PCT
      BROADBAND TELECOMMUNICATIONS (YANTAI) CO. LTD. 

                  

                	 
	 	 	 	 
	
                   

                	
                  By:
      

                	 /s/
      Steven D. Youtsey	 
	 	 	Name: 
      Steven D. Youtsey	 
	 	 	Title:   
      Chief Executive Officer

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