Document:

EX-10.1

 

Exhibit 10.1

Becton, Dickinson and Company

1 Becton Drive,

Franklin Lakes, New Jersey 07417

August 16, 2006

TriPath Imaging, Inc.

780 Plantation Drive,

Burlington, NC 27215

	 	 	 
	Attention:

	 	Paul R. Sohmer, M.D.

Chief Executive Officer

Ladies and Gentlemen:

     Becton, Dickinson and Company (“BD”) and TriPath Imaging, Inc. (the “Company”)
are currently exploring the feasibility of a business combination transaction involving BD and the
Company (the “Transaction”). As an inducement to each party continuing to pursue the
Transaction, the Company and BD agree to work in good faith to negotiate the Transaction with each
other on an exclusive basis through 11:59 p.m. (New York City time) on August 25, 2006, or such
later date as BD and the Company may agree in writing (the “Termination Date”).

     From the date hereof until the Termination Date, none of the Company, any of its subsidiaries
or any of their respective directors or officers shall (whether directly or indirectly through
officers, directors, employees, affiliates, advisors, representatives, agents or other
intermediaries), and the Company shall direct and use reasonable best efforts to cause its and its
subsidiaries’ respective officers, directors, employees, affiliates, advisors, representatives or
other agents not to, directly or indirectly, (i) solicit, initiate, knowingly encourage or
knowingly facilitate (including by way of furnishing non-public information) any inquiries or the
making or submission of any proposal or transaction that constitutes an Acquisition Proposal, (ii)
participate or engage in discussions or negotiations with, or disclose any non-public information
or data relating to the Company or its subsidiaries or afford access to the properties, books or
records of the Company or its subsidiaries to, any person relating to, or who has made or disclosed
to the Company that it is contemplating making, an Acquisition Proposal or (iii) accept or
recommend an Acquisition Proposal or enter into any agreement, letter of intent or agreement in
principle providing for or relating to an Acquisition Proposal or enter into any agreement, letter
of intent or agreement in principle requiring the Company to abandon discussions relating to the
Transaction, (iv) waive, terminate, modify or fail to enforce any provision of any contractual
“standstill” or similar obligation of any person other than BD or (v) agree or publicly propose to
do any of the foregoing. Notwithstanding the previous sentence, if at any time prior to the
Termination Date, (x) the Company has received a bona fide unsolicited Acquisition Proposal from a
third party, then the Company may take any of the actions described in clauses (ii) — (iv) of the
previous sentence to the extent that the board of directors of the Company concludes in good faith,
after consultation with its independent outside legal and

 

 

financial advisors, that failure to take such actions would result in a violation of its fiduciary
responsibilities to the Company’s stockholders under applicable law.

     For purposes of this letter agreement, “Acquisition Proposal” means any inquiry, offer
or proposal regarding a merger, consolidation, share exchange, recapitalization, reclassification,
liquidation or other business combination involving the Company or any of its subsidiaries that
would constitute a “significant subsidiary” of the Company within the meaning of Rule 1.02(w) of
Regulation S-X as promulgated by the Securities and Exchange Commission (the “Significant
Subsidiaries”), or the acquisition, disposition, purchase, sale or issuance in any manner
directly or indirectly of 15% or more of any class of equity securities of, or economic or voting
interest in, the Company or any of the Significant Subsidiaries or a substantial portion of the
assets of the Company or any of the subsidiaries of the Company taken as a whole, or any tender
offer (including self-tenders) or exchange offer that if consummated would result in any person or
the stockholders of such person beneficially owning 15% or more of any class of equity securities
of, or economic or voting interest in, the Company or any of its Significant Subsidiaries or the
surviving parent entity in such transaction, other than the transactions contemplated hereby.

     The Company shall immediately cease and cause to be terminated all existing discussions or
negotiations with any person and any other activities conducted heretofore with respect to any
Acquisition Proposal and will use its reasonable best efforts to enforce any confidentiality,
standstill or similar agreement to which the Company or any of its subsidiaries is a party. The
Company will promptly (within 24 hours) following the receipt of any Acquisition Proposal advise BD
of the substance thereof (including the identity of the person making, and the terms and conditions
of, such Acquisition Proposal) and will keep BD apprised of any related developments, discussions
and negotiations on a current basis (and in any event with 48 hours of the occurrence of such
developments, discussions or negotiations).

     If prior to the Termination Date, the Company violates in any material respect its obligations
set forth in the second paragraph of this letter agreement, then the Company shall pay to BD (or
its designees) the sum of $5,000,000 (the “Termination Fee”), on the Termination Date.

     If prior to the Termination Date, the Company takes any of the actions described in clauses
(ii)-(iv) of the first sentence of the second paragraph of this letter agreement and is otherwise
in compliance with the terms of this letter agreement and within 3 months after the date hereof the
Company or any of its subsidiaries enters into a definitive agreement with respect to, or
consummates, an Acquisition Proposal resulting from the taking of such actions, then the Company
shall pay to BD (or its designees), if BD has complied with the terms of this letter, the
Termination Fee on the date of the consummation of any such transaction, if any such consummation
occurs.

     This letter agreement may not be assigned by any party hereto by operation of law or otherwise
without the express prior written consent of the other parties hereto. This letter agreement may
not be amended or modified except by an instrument in writing signed by each of the parties hereto.
This letter agreement may be executed in counterparts and shall be governed by the internal laws
of the State of Delaware. The parties hereto agree that irreparable damage

2

 

would occur in the event any provision of this letter agreement was not performed in
accordance with the terms hereof, that the parties hereto shall be entitled to specific performance
of the terms hereof, in addition to any other remedy at law or equity and that any requirement for
the securing or posting of any bond in connection with such remedy is hereby waived.

     If the foregoing is acceptable and agreed to by you, please sign on the line provided below to
signify such acceptance and agreement.

[Remainder of Page Intentionally Left Blank]

3

 

	 	 	 	 	 	 	 
	 

	 	 	 	Sincerely,
	 
	 	 	 	 	 	 
	 

	 	 	 	Becton, Dickinson and Company
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:

Title:
	 
	 	 	 	 	 	 
	Accepted and agreed as of

the date first written above:	 	 	 	 
	 
	 	 	 	 	 	 
	TriPath Imaging, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:

Title:	 	 	 	 

4EX-10.5 IMDEMNIFICATION AGREEMENT DATED AUGUST 9

 

Exhibit 10.5

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT, dated as of August 9, 2006, is made by and between AFC
Enterprises, Inc., a Minnesota corporation (the “Company”), and John Hoffner, a director of the
Company (“Director”).

     WHEREAS, Director is a member of the Board of Directors of the Company; and

     WHEREAS, it will be difficult to retain directors of the Company unless such directors are
adequately indemnified against liabilities incurred and claims made in performance of their duties
as directors of the Company; and

     WHEREAS, it is in the best interests of the Company to retain such directors by providing
adequate indemnification by means of indemnification agreements with individual directors.

     NOW, THEREFORE, in consideration of Director’s continued service as a director of the Company,
and as an inducement to Director to continue to serve as a director of the Company, the Company and
Director agree as follows:

     1.      Indemnification. The Company agrees to indemnify and hold Director harmless from
and against any claims, liabilities, damages, judgments, penalties, fines or expenses of any type
whatsoever incurred by Director in or arising out of the status, capacities or activities of
Director as a director of the Company to the maximum extent permitted under Minnesota Statutes,
Section 302A.521 (attached hereto as Exhibit A) as in effect on the date hereof.

     2.      Advances of Expenses. Subject to Director’s execution of a written affirmation,
satisfactory to the Company, of the Director’s good faith belief that the criteria for
indemnification have been satisfied and to repay all amounts advanced by the Company if it is
ultimately determined that the criteria for indemnification have not been satisfied, the Company
shall advance all expenses incurred by Director in connection with the investigation, defense,
settlement or appeal of any proceeding, action or investigation to which Director is a party or is
threatened to be made a party arising out of the status, capacities or activities of Director as a
director of the Company to the maximum extent permitted under Minnesota Statutes, Section 302.521,
subd. 3 as in effect on the date of this Agreement upon the determination by the Company that the
facts then known to those making the determination would not preclude indemnification under Section
502A.521, subd. 6 within 60 days after receipt of said written affirmation. Director shall have a
reasonable right to appear in person and to be represented by counsel.

     3.      Other Rights of Directors. The right of Director to indemnification or
advance
of expenses pursuant to this Agreement shall not be exclusive of
other rights Director may have (i) under applicable law, (ii) pursuant to other agreements between the Company and Director
or the Company’s Articles of Incorporation or Bylaws, or (iii) pursuant to any agreement with a
third
party (by way of insurance, indemnification or otherwise).

1

 

     4.      Absolute Right to Indemnification and Advances of Expenses. The Company agrees
that it shall not, and the Company hereby waives all rights that it has or may have to, refuse to
indemnify or advance expenses, or withhold payment of amounts for which Director is indemnified
hereunder, or for advance of expenses to Director, based on any breach or alleged breach of any of
the provisions of this Agreement by Director or for any other reason whatsoever. In the event
Director is required to bring any action to enforce Director’s rights or to collect monies due to
Director under this Agreement, and is successful in such action, the Company shall reimburse
Director for all of Director’s legal fees and expenses in bringing and pursuing such action.

     5.      Amendments to Minnesota Statutes or Company’s Articles of Incorporation or Bylaws.
The Company represents that its Bylaws provide for indemnification of Director to the maximum
extent permitted by Minnesota Statutes, Section 302A.521 as in effect on the date hereof and to the
maximum extent required by this Agreement. The Company shall not amend its Articles of
Incorporation or Bylaws to reduce or eliminate the Director’s right to indemnification or advances
provided for under this Agreement. Any amendments to the Articles of Incorporation or Bylaws of
the Company made subsequent to the date of this Agreement which reduce or eliminate rights of
persons entitled to indemnification or advances under such Articles of Incorporation or Bylaws
shall not limit the rights of Director pursuant to this Agreement. If the Minnesota Statutes, the
Articles of Incorporation or the Bylaws of the Company are amended so as to provide for greater
indemnification rights or benefits, and Director shall be entitled to such greater rights or
benefits, and Director shall be entitled to such greater rights and benefits immediately upon such
amendment. Subsequent amendments to the Minnesota Statutes or other applicable law shall in no way
reduce Director’s rights under this Agreement.

     6.      Maintenance of Insurance. The Company represents that it presently has in force
and effect directors and officers insurance under a Directors’ and Officers’ Liability Insurance
Policies including Company Reimbursement issued by XL Specialty Insurance Company. (Policy No.
ELU088117-06) covering certain liabilities which may be incurred by its officers and directors.
The Company may maintain in effect, for the benefit of Director, directors’ and officers’ insurance
providing such coverage as may, from time to time, be determined by the Board of Directors of the
Company, in their absolute discretion.

     7.      Notification. Promptly after receipt by Director of the Company of any
notice
or document respecting the commencement of any action, suit, proceeding or investigation naming or
involving Director and relating to any matter concerning which Director may be

entitled to indemnification or advances pursuant to this Agreement, the party receiving notice will
notify the other of the receipt of same, but the failure by Director to so notify the Company shall
not relieve the Company from any obligation under this Agreement or otherwise.

     8.      Amendment. This Agreement may be amended at any time by written instrument
executed by the Company and Director.

2

 

     9.      Notices. All notices and other communications between the parties with respect to
this Agreement must be made in writing and shall be deemed to have been fully delivered as of the
date on which they are hand delivered or deposited in the United States mail for delivery by
registered or certified mail, postage and fees prepaid.

     10.      Binding Effect. Due to the personal nature of the services to be rendered by
Director, Director may not assign this Agreement. Subject to the foregoing, the provisions of this
Agreement are binding upon and inure to the benefit of (i) Director and Director’s respective
heirs, legal representatives and administrators, and (ii) the Company and its successors,
transferees and assigns.

     11.      Survival. The obligations of the Company to Director as provided in this
Agreement shall survive and continue after Director has ceased to be a director of the Company.

     12.      Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.

     13.      Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be discussed between the parties in a good faith effort to arrive at a mutual
settlement of any such controversy. If, notwithstanding the parties’ good faith efforts, a dispute
remains unresolved for a period of 45 days after initial notice from one party to the other of the
dispute, the parties shall submit such dispute to arbitration in accordance with the rules of the
American Arbitration Association, and judgment upon the award may be entered in any court having
jurisdiction over the controversy. The costs of the proceeding shall be paid by the Company.
Unless otherwise agreed upon, the place of arbitration proceedings shall be Fulton County, Georgia.

     14.      Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota.

     IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above
written.

	 	 	 	 	 
	 	AFC ENTERPRISES, INC.

 	 
	 	By:  	     /s/ Kenneth L. Keymer
 	 
	 	 	Kenneth L. Keymer, Chief Executive Officer 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 	 
	 	               /s/ John Hoffner
 	 
	 	John Hoffner, Director 	 
	 	 	 
	 

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00108-of-00352.parquet"}]]