EXHIBIT 2.1
AGREEMENT AND PLAN OF
MERGER
BY AND AMONG
ADECCO, INC.,
JAGUAR ACQUISITION CORP.
and
MPS GROUP, INC.
October 19, 2009
TABLE OF CONTENTS
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PAGE
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ARTICLE
I
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THE
MERGER
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1
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1.1
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The Merger
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1
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1.2
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Effective Time
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2
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1.3
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Closing
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2
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ARTICLE
II
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SURVIVING
CORPORATION
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2
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2.1
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Articles of Incorporation
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2
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2.2
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Bylaws
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2
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2.3
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Directors
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2
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2.4
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Officers
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2
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2.5
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Subsequent Actions
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3
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ARTICLE
III
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EFFECT OF THE
MERGER ON CAPITAL STOCK OF THE COMPANY AND MERGER SUB
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3
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3.1
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Share Consideration for the Merger; Conversion
or Cancellation of Shares in the Merger
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3
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3.2
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Payment for Shares in the Merger
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4
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3.3
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Transfer of Shares After the Effective
Time
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5
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3.4
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Stock Options; Employee Stock Purchase Plan;
Restricted Shares
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5
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3.5
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Withholding Taxes
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6
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3.6
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Recapitalizations; Stock Splits
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7
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ARTICLE IV
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REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
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7
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4.1
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Corporate Organization and
Qualification
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7
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4.2
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Subsidiaries and Affiliates
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8
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4.3
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Capitalization
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8
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4.4
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Authority Relative to This Agreement;
Shareholder Approval
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9
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4.5
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Consents and Approvals; No Violation
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10
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4.6
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SEC Reports; Financial Statements
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11
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4.7
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Absence of Certain Changes or Events
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12
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4.8
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Litigation
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12
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4.9
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Taxes
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13
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4.10
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Employee Benefit Plans; Labor Matters
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14
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4.11
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Intellectual Property
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17
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i
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4.12
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Brokers and Finders
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18
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4.13
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Opinion of Financial Advisors
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18
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4.14
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Material Contracts
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18
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4.15
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Insurance
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20
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4.16
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Questionable Payments
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21
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4.17
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Related Party Transactions
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21
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4.18
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Required Vote of Company Shareholders; No
Appraisal Rights
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21
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4.19
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Customers
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21
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4.20
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Properties
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21
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4.21
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Compliance with Law
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22
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4.22
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Environmental Matters
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22
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4.23
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Disclaimer of Other Representations and
Warranties
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23
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ARTICLE
V
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REPRESENTATIONS
AND WARRANTIES OF PARENT AND MERGER SUB
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23
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5.1
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Corporate Organization and
Qualification
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23
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5.2
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Authority Relative to This Agreement
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23
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5.3
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Consents and Approvals; No Violation
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24
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5.4
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Financing
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24
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5.5
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Interim Operations of Merger Sub
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24
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5.6
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Share Ownership
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25
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5.7
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Brokers and Finders
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25
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5.8
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Non-Reliance
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25
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ARTICLE
VI
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ADDITIONAL
COVENANTS AND AGREEMENTS
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25
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6.1
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Conduct of Business of the Company
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25
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6.2
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No Solicitation.
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28
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6.3
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Reasonable Best Efforts
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31
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6.4
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Access to Information
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33
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6.5
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Shareholder Approval
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34
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6.6
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Proxy Statement; Other Filings
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34
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6.7
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Publicity
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35
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6.8
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Indemnification of Directors and
Officers
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36
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6.9
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Takeover Laws
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37
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6.10
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Notification of Certain Matters
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37
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ii
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6.11
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Subsequent Filings
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37
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6.12
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Resignation of Company’s
Directors
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37
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6.13
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Certain Pre-Closing Transactions
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37
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ARTICLE
VII
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CONDITIONS TO
CONSUMMATION OF THE MERGER
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38
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7.1
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Conditions to Each Party’s Obligations to
Effect the Merger
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38
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7.2
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Conditions to Obligations of Parent and Merger
Sub
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39
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7.3
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Conditions to Obligations of the
Company
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39
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ARTICLE VIII
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TERMINATION;
AMENDMENT; WAIVER
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40
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8.1
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Termination by Mutual Consent
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40
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8.2
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Termination by Either Parent or the
Company
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40
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8.3
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Termination by Parent
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40
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8.4
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Termination by the Company
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41
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8.5
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Effect of Termination; Fees and Expenses Upon
Termination
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42
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8.6
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Extension; Waiver
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44
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ARTICLE
IX
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MISCELLANEOUS
AND GENERAL
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44
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9.1
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Payment of Expenses
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44
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9.2
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Non-Survival of Representations and Warranties;
Survival of Confidentiality
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44
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9.3
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Modification or Amendment
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44
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9.4
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Waiver of Conditions
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45
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9.5
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Counterparts
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45
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9.6
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Governing Law
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45
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9.7
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Jurisdiction
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45
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9.8
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Notices
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45
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9.9
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Entire Agreement; Assignment
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46
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9.10
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Parties in Interest
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47
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9.11
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Certain Definitions; Drafting Conventions; No
Construction Against Drafter
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47
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9.12
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Schedules
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49
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9.13
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Obligation of Parent
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49
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9.14
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Validity
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50
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9.15
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Specific Performance
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50
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9.16
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Captions
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50
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iii
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Acquisition
Proposal
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Section
6.2(g)
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Adecco
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Recitals
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Adecco
Guarantee
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Recitals
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Agreement
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Introduction
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Alternative
Acquisition Agreement
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Section
6.2(d)(1)
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Antitrust
Filings
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Section
6.3(b)(y)
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Articles of
Merger
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Section
1.2
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Board
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Recitals
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Book-Entry
Shares
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Section
3.2(b)(ii)
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Breakup
Fee
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Section
8.5(d)
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Business
Day
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Section
9.11
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Certificates
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Section
3.2(b)(i)
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Change of Board
Recommendation
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Section
6.2(d)(x)
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Closing
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Section
1.3
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Closing
Date
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Section
1.3(b)
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Code
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Section
3.5
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Company
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Introduction
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Company Board
Recommendation
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Section
4.4(b)(iii)
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Company
Intellectual Property
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Section
4.11(b)
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Company
Plans
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Section
4.10(a)
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Company SEC
Reports
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Section
4.6(a)
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Company
Securities
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Section
4.3(a)(iii)
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Confidentiality
Agreement
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Section
6.4
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Disclosure
Schedule
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Article
IV
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Effective
Time
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Section
1.2
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Environmental
Requirements
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Section
4.22
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ERISA
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Section
4.10(a)(ii)
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ERISA
Affiliate
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Section
4.10(a)(ii)
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ESPP
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Section
3.4(c)(i)
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ESPP Exercise
Date
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Section
3.4(c)(i)
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Exchange
Act
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Section
3.4(b)
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FBCA
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Recitals
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GAAP
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Section
4.6(b)
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Governmental
Entity
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Section
4.5(b)
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hereby
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Section
9.11
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herein
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Section
9.11
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HSR
Act
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Section
4.5(b)(i)
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include
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Section
9.11
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includes
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Section
9.11
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including
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Section
9.11
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Indemnified
Parties
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Section
6.8(a)
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Intellectual
Property Rights
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Section
4.11(a)
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IRS
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Section
4.10(a)(i)
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knowledge
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Section
9.11
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iv
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Laws
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Section
4.21(i)
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Liens
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Section
9.11
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Material
Adverse Effect
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Section
9.11
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Material
Contract
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Section
4.14(a)
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Merger
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Section
1.1
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Merger
Consideration
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Section
3.1(a)
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Merger
Sub
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Introduction
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Merrill
Lynch
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Section
4.12
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Non-U.S.
Plan
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Section
4.10(l)
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Notice
Period
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Section
6.2(d)(1)
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Option
Payment
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Section
3.4(a)(ii)
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Option
Plans
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Section
3.4(a)
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Options
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Section
3.4(a)
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Original
Date
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Section
6.5(b)
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Other
Filings
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Section
6.6
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Parent
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Introduction
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Paying
Agent
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Section
3.2(a)
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Payment
Fund
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Section
3.2(a)
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Permits
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Section
4.21(ii)
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Person
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Section
9.11
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Preferred
Shares
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Section
4.3(a)
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Proxy
Statement
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Section
6.6
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Real Property
Leases
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Section
4.20(b)
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Related Party
Transaction
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Section
4.17
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Representatives
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Section
6.4
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Requisite
Shareholder Vote
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Section
4.18
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Restricted
Shares
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Section
3.4(d)
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Sarbanes-Oxley
Act
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Section
4.6(a)
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SEC
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Article
IV
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Securities
Act
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Section
4.6(a)
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Share
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Section
3.1(a)
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Shareholders
Meeting
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Section
6.5(a)
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Shares
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Section
3.1(a)
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Significant
Customer
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Section
4.19
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Significant
Subsidiary
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Section
9.11
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Subsidiary
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Section
9.11
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Subsidiary
Securities
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Section
4.3(b)(iii)
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Superior
Proposal
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Section
6.2(h)
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Surviving
Corporation
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Section
1.1
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Takeover
Laws
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Section
9.11
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Tax
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Section
9.11
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Tax
Returns
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Section
9.11
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Taxes
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Section
9.11
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Termination
Date
|
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Section
8.2(b)
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Unvested
Restricted Shares
|
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Section
3.4(d)
|
v
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Vested
Restricted Shares
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Section
3.4(d)
|
vi
AGREEMENT AND PLAN OF
MERGER
This Agreement and Plan of Merger
(this “ Agreement ”) is dated as of
October 19, 2009, and is by and among Adecco, Inc., a Delaware
corporation (“ Parent ”), Jaguar Acquisition
Corp., a Florida corporation and wholly owned Subsidiary of Parent
(“ Merger Sub ”), and MPS Group, Inc., a Florida
corporation (the “ Company ”).
RECITALS
WHEREAS, the Board of Directors of
the Company (the “ Board ”) has, subject to the
conditions of this Agreement, determined that the Merger (as
defined below) is in the best interests of the shareholders of
the Company and approved and adopted this Agreement and the
transactions contemplated by this Agreement in accordance with the
Florida Business Corporation Act (the “ FBCA
”);
WHEREAS, the Boards of Directors of
Parent and Merger Sub have each approved, and the Board of
Directors of Merger Sub has declared it advisable for Merger Sub to
enter into, this Agreement providing for the Merger in accordance
with the FBCA, upon the terms and subject to the conditions set
forth herein;
WHEREAS, Adecco SA, a Swiss
corporation and ultimate parent of Parent and Merger Sub (“
Adecco ”), has agreed to unconditionally guarantee the
performance of Parent’s and Merger Sub’s obligations
under this Agreement pursuant to a Guarantee of Adecco SA, dated as
of even date herewith (the “ Adecco Guarantee
”); and
WHEREAS, Parent, Merger Sub and the
Company desire to make certain representations, warranties,
covenants and agreements in connection with this
Agreement.
NOW THEREFORE, in consideration of
the mutual covenants and agreements set forth herein, the receipt
and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
ARTICLE I
THE MERGER
1.1 The Merger . Subject to
the terms and conditions of this Agreement, at the Effective Time
(as defined in Section 1.2), the Company and Merger Sub shall
consummate a merger (the “ Merger
”) pursuant to which: (a) Merger Sub shall be
merged with and into the Company and the separate corporate
existence of Merger Sub shall thereupon cease; (b) the Company
shall be the successor or surviving corporation in the Merger and
shall continue to be governed by the Laws of the State of Florida;
and (c) the separate corporate existence of the Company with
all its rights, privileges, immunities, powers and franchises shall
continue unaffected by the Merger. The corporation surviving the
Merger is sometimes referred to in this
Agreement as the “ Surviving
Corporation. ” The Merger will have the effects set forth
in the FBCA.
1.2 Effective Time . Parent,
Merger Sub and the Company will cause appropriate articles of
merger (the “ Articles of Merger ”) to be
executed and filed on the date of the Closing (as defined in
Section 1.3) (or on such other date as Parent and the Company
may agree in writing) with the Secretary of State of the State
of Florida as provided in the FBCA. The Merger will become
effective on the date on which the Articles of Merger have been
duly filed with the Secretary of State of the State of Florida, or
at such later date as is agreed upon by the parties and specified
in the Articles of Merger, and such date is referred to in this
Agreement as the “ Effective Time. ”
1.3 Closing . The parties
shall hold the closing of the Merger (the “ Closing
”) (a) at the offices of Jones Day, 1420 Peachtree
Street, N.E., Suite 800, Atlanta, Georgia 30309, at 10:00 a.m.,
local time, as promptly as practicable but in no event later than
the second Business Day after the satisfaction or waiver (by the
party entitled to grant such waiver) of the conditions set forth in
Article VII (other than those conditions that are to be satisfied
at the Closing, but subject to the fulfillment or waiver of those
conditions at the Closing) or (b) at such other place, time
and date as Parent and the Company may agree in writing (the
“ Closing Date ”).
ARTICLE II
SURVIVING CORPORATION
2.1 Articles of Incorporation
. The articles of incorporation of the Company shall, by virtue of
the Merger, be amended and restated in its entirety to read as the
articles of incorporation of Merger Sub in effect immediately prior
to the Effective Time, except that Article I thereof shall read as
follows: “The name of the Corporation is MPS Group,
Inc.” and, as so amended, shall be the articles of
incorporation of the Surviving Corporation until thereafter amended
as permitted by Law.
2.2 Bylaws . The bylaws of
the Surviving Corporation, as in effect immediately prior to the
Effective Time, shall be amended and restated in their entirety to
read as the bylaws of the Merger Sub in effect immediately prior to
the Effective Time until thereafter amended as permitted by
Law.
2.3 Directors . The directors
of Merger Sub at the Effective Time shall, from and after the
Effective Time, be the initial directors of the Surviving
Corporation until their successors have been duly elected or
appointed and qualified or until their earlier death, resignation
or removal in accordance with the Surviving Corporation’s
articles of incorporation and bylaws.
2.4 Officers . The officers
of the Company at the Effective Time shall, from and after the
Effective Time, be the initial officers of the Surviving
Corporation until their successors have been duly elected or
appointed and qualified or until their earlier death, resignation
or removal in accordance with the Surviving Corporation’s
articles of incorporation and bylaws.
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2.5 Subsequent Actions . If
at any time after the Effective Time the Surviving Corporation
determines, in its sole discretion, or is advised, that any deeds,
bills of sale, assignments, assurances or any other actions or
things are necessary or desirable to vest, perfect or confirm of
record or otherwise in the Surviving Corporation its right, title
or interest in, to or under any of the rights, properties or assets
of either of the Company, Parent or Merger Sub acquired or to be
acquired by the Surviving Corporation as a result of, or in
connection with, the Merger or otherwise to carry out this
Agreement, then the officers and directors of the Surviving
Corporation shall be authorized to execute and deliver, in the name
and on behalf of either the Company, Parent or Merger Sub, all such
deeds, bills of sale, instruments of conveyance, assignments and
assurances and to take and do, in the name and on behalf of each of
such corporations or otherwise, all such other actions and things
as may be necessary or desirable to vest, perfect or confirm any
and all right, title or interest in, to and under such rights,
properties or assets in the Surviving Corporation or otherwise to
carry out this Agreement.
ARTICLE III
EFFECT OF THE MERGER ON CAPITAL
STOCK OF THE COMPANY
AND MERGER SUB
3.1 Share Consideration for the
Merger; Conversion or Cancellation of Shares in the Merger . At
the Effective Time, by virtue of the Merger and without any action
on the part of the holders of any Shares or capital stock of Merger
Sub:
(a) Each share of common stock of
the Company, par value $0.01 per share (each, a “
Share ” and, collectively, the “ Shares
”), issued and outstanding immediately prior to the Effective
Time (other than Shares owned by Parent, Merger Sub, or any of
their respective wholly owned Subsidiaries, or any of the
Company’s direct or indirect wholly owned Subsidiaries or
held in the treasury of the Company) will, by virtue of the Merger
and without any action on the part of Merger Sub, the Company or
the holder thereof, be canceled and extinguished and converted into
the right to receive, pursuant to Section 3.2, in cash an amount
per Share equal to $13.80 (the “ Merger Consideration
”), payable to the holder thereof, without interest thereon,
less any required withholding of Taxes, upon the surrender of the
certificate formerly representing such Share or the Book-Entry
Shares (as defined in Section 3.2(b)). At the Effective Time,
all such Shares shall no longer be outstanding and shall
automatically be canceled and shall cease to exist, and each holder
of such Shares shall cease to have any rights with respect thereto,
except the right to receive the Merger Consideration as provided
herein.
(b) At the Effective Time, each
Share issued and outstanding and owned by Parent, Merger Sub or any
of their respective wholly owned Subsidiaries, or held in the
treasury of the Company immediately prior to the Effective Time
will cease to be outstanding (if applicable), be canceled and
retired without payment of any consideration therefor and cease to
exist.
(c) At the Effective Time, all
Shares (if any) held by any of the Company’s direct or
indirect wholly owned Subsidiaries shall remain outstanding and
shall become that number of shares of common stock of the Surviving
Corporation that bears the same ratio to the aggregate number of
outstanding shares of common stock of the Surviving
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Corporation as the number of Shares held by such
subsidiary bore to the aggregate number of Shares immediately prior
to the Effective Time.
(d) At the Effective Time, each
share of common stock, $0.01 par value, of Merger Sub issued and
outstanding immediately prior to the Effective Time shall, by
virtue of the Merger and without any action on the part of the
holder thereof, be converted into and become one validly issued,
fully paid and nonassessable share of common stock of the Surviving
Corporation.
3.2 Payment for Shares in the
Merger . The manner of making payment for Shares in the Merger
shall be as follows:
(a) At or immediately after the
Effective Time, Parent shall deliver to a paying agent selected by
Parent and reasonably acceptable to the Company (the “
Paying Agent ”), for the benefit of the holders of
Shares, the funds necessary to make the payments contemplated by
Section 3.1 (the “ Payment Fund ”). Parent shall
cause the Paying Agent, pursuant to irrevocable instructions, to
deliver the Merger Consideration out of the Payment Fund. The
Payment Fund shall not be used for any other purpose.
(b) As soon as reasonably
practicable after the Effective Time, Parent shall cause the Paying
Agent to mail (i) to each holder of record (other than holders
of certificates for Shares referred to in Section 3.1(b)) of a
certificate or certificates that immediately prior to the Effective
Time represented outstanding Shares (the “
Certificates ”): (A) a form of letter of
transmittal (which shall specify that delivery shall be effected,
and risk of loss and title to the Certificates shall pass, only
upon proper delivery of the Certificates to the Paying
Agent); and (B) instructions for use in effecting the
surrender of the Certificates for payment therefor, and
(ii) to each holder of Book-Entry Shares instructions for use
in effecting the surrender of non-certificated Shares held in
book-entry form (“ Book-Entry Shares ”) in
exchange for the Merger Consideration. Upon surrender of
Certificates for cancellation to the Paying Agent, together with
such letter of transmittal duly executed and any other required
documents, or surrender of Book-Entry Shares, the holder of such
Certificates or Book-Entry Shares will be entitled to receive for
each of the Shares formerly represented by such Certificates or
Book-Entry Shares, the Merger Consideration, without any interest
thereon, less any required withholding of Taxes, and the
Certificates or Book-Entry Shares so surrendered shall forthwith be
canceled. If payment is to be made to a Person other than the
Person in whose name a Certificate so surrendered is registered, it
will be a condition of payment that the Certificate so surrendered
must be properly endorsed and otherwise in proper form for transfer
and that the Person requesting such payment must pay to the Paying
Agent any transfer or other Taxes required by reason of the payment
to a Person other than the registered holder of the Certificate
surrendered, or must establish to the satisfaction of the Paying
Agent that such Tax has been paid or is not applicable. Until
surrendered in accordance with the provisions of this Section
3.2(b), each Certificate (other than Certificates formerly
representing Shares held in the Company’s treasury or by
Merger Sub, or by any Subsidiary of the Company or Merger
Sub) and Book-Entry Share will represent for all purposes only
the right to receive, for each Share formerly represented thereby,
the Merger Consideration, without interest thereon, less any
required withholding of Taxes.
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(c) If any Certificate shall have
been lost, stolen or destroyed, upon the making of an affidavit of
that fact by the Person claiming such Certificate to be lost,
stolen or destroyed and, if required by the Surviving Corporation
or the Paying Agent, the posting by such Person of a bond in such
reasonable amount as the Surviving Corporation or the Paying Agent
may direct as indemnity against any claim that may be made against
it with respect to such Certificate, the Paying Agent will deliver
in exchange for such lost, stolen or destroyed Certificate the
Merger Consideration with respect to the Shares formerly
represented thereby.
(d) Any portion of the Payment Fund
made available to the Paying Agent that remains unclaimed by the
former shareholders of the Company for one year after the Effective
Time may be delivered to Parent, upon demand of Parent, and any
former shareholders of the Company may thereafter look only to
Parent (subject to abandoned property, escheat or other similar
Laws) for payment of their claim for the Merger Consideration,
without any interest thereon. Neither Parent nor the Surviving
Corporation shall be liable to any holder of Shares for any monies
delivered from the Payment Fund or otherwise to a public official
pursuant to any applicable abandoned property, escheat or similar
Law. If any Shares shall not have been surrendered prior to such
date as shall be immediately prior to the date that such unclaimed
funds would otherwise become subject to any abandoned property,
escheat or similar Law, any unclaimed funds payable with respect to
such Shares shall, to the extent permitted by applicable Law,
become the property of the Surviving Corporation, free and clear of
all claims or interest of any Person previously entitled
thereto.
3.3 Transfer of Shares After the
Effective Time . The Company shall not permit transfers of
Shares to be made on the stock transfer books of the Company after
the close of business on the day prior to the date of the Effective
Time. If, after the Effective Time, Certificates are presented to
the Surviving Corporation for transfer, they shall be canceled and
exchanged for the Merger Consideration as provided in this Article
III.
3.4 Stock Options; Employee Stock
Purchase Plan; Restricted Shares .
(a) Prior to the Effective Time, the
Board (or, if appropriate, any committee thereof) shall adopt
appropriate resolutions and take all other actions necessary and
appropriate to provide that, immediately prior to the Effective
Time, each option then outstanding to purchase Shares (the “
Options ”) granted under the Company’s 2004
Equity Incentive Plan (and its predecessor plans), 2004
Non-Employee Director Equity Incentive Plan (and its predecessor
plans), 2008 Non-Executive Stock Plan, or any other plan, agreement
or arrangement (together, the “ Option Plans ”),
will be canceled and, in exchange therefor, each former holder of
any such canceled Option shall be entitled to receive, in
consideration of the cancellation of such Option and in settlement
therefor, a payment by the Company in cash of an amount equal to
the product of (i) the total number of Shares previously
subject to such Option and (ii) the excess, if any, of the
Merger Consideration over the exercise price per Share previously
subject to such Option (such amounts payable hereunder being
referred to as the “ Option Payment ”). From and
after the Effective Time, any such canceled Option shall no longer
be exercisable by the former holder thereof, but shall only entitle
such holder to the payment of the Option Payment, and the Company
will use its reasonable best efforts to obtain all necessary
consents to ensure that former holders of Options will have no
rights other than the right to receive the Option
Payment.
5
(b) Prior to the Effective Time,
Parent and the Company shall take action designed to provide that
the treatment of Options pursuant to Section 3.4(a) will
qualify for exemption under Rule 16b-3(d) or (e), as
applicable, under the Securities Exchange Act of 1934, as amended
(the “ Exchange Act ”).
(c) The Company shall take such
action as may be necessary to: (i) establish the end of the
purchase period in effect as of the date of this Agreement under
the Company’s Employee Stock Purchase Plan (the “
ESPP ”) no later than the last day of the
offering period ending immediately after the date hereof with
respect to any offering otherwise then in effect (the “
ESPP Exercise Date ”); and (ii) suspend any
subsequent purchase periods that would otherwise arise after the
close of the purchase period currently in effect and prior to the
Effective Time. The Company shall exercise reasonable best
efforts to terminate the ESPP as of the Effective Time or such
earlier date as determined by the Company to be administratively
reasonable. In such event, (A) each ESPP participant’s
accumulated payroll contributions as of the ESPP Exercise Date that
are not withdrawn as of such date shall be applied toward the
purchase of Shares in accordance with the terms of the ESPP; and
(B) as promptly as reasonably practicable following the ESPP
Exercise Date, following the application of accumulated payroll
contributions toward the purchase of Shares in accordance with the
preceding sentence, Parent shall cause or permit the Company or
Merger Sub, as applicable, to return to participants any of their
respective accumulated payroll contributions not applied to the
purchase of Shares under the ESPP, if any.
(d) Each Share granted subject to
vesting or other lapse restrictions pursuant to any Option Plan
(collectively, “ Restricted Shares ”) which is
outstanding immediately prior to the Effective Time and which by
its terms as in effect on the date hereof would vest and become
free of such restrictions as of the Effective Time (such Restricted
Shares, “ Vested Restricted Shares ”) shall,
subject to this Article III, be entitled to receive the Merger
Consideration with respect to each such Vested Restricted Share,
less any required withholding Taxes. Each Share granted subject to
vesting or other lapse restrictions pursuant to any Option Plan
which is outstanding immediately prior to the Effective Time and
which would not by its terms as in effect on the date hereof vest
and become free of such restrictions (such Restricted Shares,
“ Unvested Restricted Shares ”) shall be
canceled immediately prior to the Closing and shall be replaced
with a substantially equivalent award by Parent, the Surviving
Corporation or any of their respective Subsidiaries or affiliates
which, subject to the holder’s continued employment with
Parent, the Surviving Corporation or their respective Subsidiaries
or affiliates, shall continue to vest on the same schedule and in
accordance with the same terms as set forth in the applicable
Option Plan and the applicable award agreement
thereunder.
(e) After the Effective Time, all
Option Plans shall be terminated and no further Options, Restricted
Shares or other rights with respect to Shares shall be granted
thereunder.
3.5 Withholding Taxes .
Parent, the Surviving Corporation and the Paying Agent shall be
entitled to deduct and withhold from the consideration otherwise
payable to a holder of Shares, Restricted Shares or Options
pursuant to the Merger or this Agreement any stock transfer Taxes
and such amounts as are required to be withheld under the Internal
Revenue Code of 1986, as amended (the “ Code ”),
or any applicable provision of state, local or foreign
6
Tax Law. To the extent that amounts are so
withheld, such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to the holder of the Shares,
Restricted Shares or Options in respect of which such deduction and
withholding was made.
3.6 Recapitalizations; Stock
Splits . Notwithstanding anything in this Agreement to the
contrary, if, between the date of this Agreement and the Effective
Time, there shall have been declared, made or paid any dividend or
distribution on the Shares or the issued and outstanding Shares
shall have been changed into a different number of Shares or a
different class by reason of any stock split, reverse stock split,
stock dividend, reclassification, redenomination, recapitalization,
split-up, combination, exchange of shares or other similar
transaction, the Merger Consideration and any other dependent items
shall be appropriately adjusted to provide to the holders of the
Shares and Options the same economic effect as contemplated by this
Agreement prior to such action and as so adjusted shall, from and
after the date of such event, be the Merger Consideration or other
dependent item, subject to further adjustment in accordance with
this Section 3.6; provided that nothing herein shall be
construed to permit (a) the Company to take any action with
respect to its securities that is prohibited or not expressly
permitted by the terms of this Agreement, or (b) Parent and
Merger Sub to pay other than cash in fulfillment of their
obligation to pay the Merger Consideration.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF
THE COMPANY
Except as (i) disclosed in the
Company’s annual report on Form 10-K for the year ended
December 31, 2008; the Company’s quarterly reports on
Form 10-Q for the quarters ended March 31, 2009 and
June 30, 2009; the Company’s Current Reports on Form 8-K
filed with the Securities and Exchange Commission (the
“SEC”) on January 5, 2009, February 5,
2009, April 29, 2009, and July 29, 2009; and the
Company’s proxy statement on Schedule 14A filed with the SEC
on April 20, 2009 (including any documents incorporated
therein by reference and any exhibits to such filings but excluding
any amendments thereto filed after the date hereof and any
forward-looking disclosures set forth in any risk factor section
and in any section relating to forward-looking statements to the
extent that they are cautionary, predictive or forward-looking in
nature), or (ii) disclosed in the section of the disclosure
schedule dated the date of this Agreement and delivered by the
Company to Parent with respect to this Agreement prior to the
execution hereof (the “ Disclosure Schedule ”)
that specifically relates to, or is reasonably apparent on its face
to relate to, such Section of Article IV below, the Company
represents and warrants to Parent and Merger Sub as
follows:
4.1 Corporate Organization and
Qualification . Each of the Company and its Significant
Subsidiaries (as defined in Section 9.11) is duly organized,
validly existing and in good standing under the Laws of its
respective jurisdiction of organization, and is duly qualified to
do business and in good standing in each jurisdiction where the
properties owned, leased or operated, or the business conducted, by
it require such qualification, except where failure to so qualify
or be in good standing has not had and would not reasonably be
expected to have, individually or in the aggregate, a Material
Adverse Effect (as defined in Section 9.11). Each of the Company
and its Significant Subsidiaries has all requisite corporate power
and authority to own its properties and to carry on its business as
it is now being conducted except where failure
7
to have such power and authority has not had and
would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. The Company has heretofore
made available to Parent complete and correct copies of the
articles of incorporation and bylaws (or other similar governing
documents) of the Company and each of its Subsidiaries.
4.2 Subsidiaries and
Affiliates . Section 4.2 of the Disclosure Schedule sets
forth the name and jurisdiction of incorporation of each of the
Company’s Subsidiaries. Neither the Company nor any of its
Subsidiaries, directly or indirectly, owns any capital stock or
other equity securities of any Person or has any direct
or