Agreement and Plan of Merger by and among Microsoft Corporation, Big Sky Merger Sub Inc. And Nuance Communications, Inc.

• Date: 20 November 2021
• Section: Merger Agreements

AGREEMENT AND PLAN OF MERGER

by and among

MICROSOFT CORPORATION,

BIG SKY MERGER SUB INC.

and

NUANCE COMMUNICATIONS, INC.

Dated as of April 11, 2021

________________

3/3/22, 11:13 AM EX-2.1

https://www.sec.gov/Archives/edgar/data/0001002517/000119312521113796/

d100489dex21.htm 2/116

TABLE OF CONTENTS Page ARTICLE I DEFINITIONS & INTERPRETATIONS 1

1.1. Certain Definitions 1 1.2. Additional Definitions 17 1.3.

Certain Interpretations 19 1.4. Disclosure Letters 20

ARTICLE II THE MERGER 21

2.1. The Merger 21 2.2. The Effective Time 21 2.3. The Closing 21

2.4. Effect of the Merger 22 2.5. Certificate of Incorporation and Bylaws

22 2.6. Directors and Officers 22 2.7. Effect on Capital Stock 22

2.8. Equity Awards. 24 2.9. Surrender of Shares 27 2.10. No Further

Ownership Rights in Company Common Stock 29 2.11. Lost, Stolen or Destroyed

Certificates 29 2.12. Required Withholding 29 2.13. Necessary Further

Actions 30 2.14. Adjustment to Merger Consideration 30

ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY 30

3.1. Organization; Good Standing 30 3.2. Corporate Power; Enforceability

31 3.3. Company Board Approval; Fairness Opinion; Anti-Takeover Laws 31

3.4. Requisite Stockholder Approval 32 3.5. Non-Contravention 32 3.6.

Requisite Governmental Approvals 32 3.7. Company Capitalization. 32

3.8. Subsidiaries 34 3.9. Company SEC Reports 35 3.10. Company

Financial Statements; Internal Controls; Indebtedness 36 3.11. No

Undisclosed Liabilities 37 3.12. Absence of Certain Changes; No Company

Material Adverse Effect 37 3.13. Material Contracts 37 3.14. Real

Property 38 3.15. Environmental Matters 39 3.16. Intellectual

Property/Privacy & Security 40 3.17. HIPAA Compliance 41 -i-

________________

3/3/22, 11:13 AM EX-2.1

https://www.sec.gov/Archives/edgar/data/0001002517/000119312521113796/

d100489dex21.htm 3/116

TABLE OF CONTENTS (Continued) Page 3.18. Healthcare Laws 42 3.19.

Tax Matters 43 3.20. Employee Plans 46 3.21. Labor and Employment

Matters 49 3.22. Permits 50 3.23. Compliance with Laws 50 3.24.

Legal Proceedings; Orders 51 3.25. Insurance 52 3.26. Related Person

Transactions 52 3.27. Brokers 52 3.28. Exclusivity of Representations

and Warranties 52

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGER SUB 53

4.1. Organization; Good Standing 54 4.2. Corporate Power; Enforceability

54 4.3. Non-Contravention 55 4.4. Requisite Governmental Approvals 55

4.5. Legal Proceedings; Orders 55 4.6. Ownership of Company Capital Stock

56 4.7. Brokers 56 4.8. No Parent Vote or Approval Required 56 4.9.

Sufficient Funds 56 4.10. Tax Matters 56 4.11. Exclusivity of

Representations and Warranties 56

ARTICLE V INTERIM OPERATIONS OF THE COMPANY 57

5.1. Affirmative Obligations 57 5.2. Forbearance Covenants 58 5.3. No

Solicitation 61 5.4. No Control of the Company’s Business 66

ARTICLE VI ADDITIONAL COVENANTS 66

6.1. Required Action and Forbearance; Efforts 66 6.2. Regulatory Approvals

67 6.3. Proxy Statement 68 6.4. Company Stockholder Meeting 70 6.5.

Anti-Takeover Laws 71 6.6. Access 71 6.7. Section 16(b) Exemption

72 6.8. Directors’ and Officers’ Exculpation, Indemnification and Insurance

72 6.9. Employee Matters 74 -ii-

________________

3/3/22, 11:13 AM EX-2.1

https://www.sec.gov/Archives/edgar/data/0001002517/000119312521113796/

d100489dex21.htm 4/116

TABLE OF CONTENTS (Continued) Page 6.10. Obligations of Merger Sub 76

6.11. Notification of Certain Matters 77 6.12. Public Statements and

Disclosure 77 6.13. Transaction Litigation 78 6.14. Stock Exchange

Delisting; Deregistration 78 6.15. Additional Agreements 78 6.16.

Convertible Debentures; Senior Notes; Credit Facility 78 6.17. Parent Vote

80 6.18. Closing Representation Letters 80

ARTICLE VII CONDITIONS TO THE MERGER 81

7.1. Conditions to Each Party’s Obligations to Effect the Merger 81 7.2.

Conditions to the Obligations of Parent and Merger Sub 81 7.3. Conditions

to the Company’s Obligations to Effect the Merger 83

ARTICLE VIII TERMINATION, AMENDMENT AND WAIVER 83

8.1. Termination 83 8.2. Manner and Notice of Termination; Effect of

Termination 85 8.3. Fees and Expenses 86 8.4. Amendment 87 8.5.

Extension; Waiver 87

ARTICLE IX GENERAL PROVISIONS 88

9.1. Survival of Representations, Warranties and Covenants 88 9.2. Notices

88 9.3. Assignment 89 9.4. Confidentiality 89 9.5. Entire Agreement

90 9.6. Third Party Beneficiaries 90 9.7. Severability 90 9.8.

Remedies 90 9.9. Governing Law 91 9.10. Consent to Jurisdiction 91

9.11. WAIVER OF JURY TRIAL 92 9.12. Counterparts 92 9.13. No Limitation

92 Exhibit A – Form of Company Representation Letter

Exhibit B – Form of Parent Representation Letter

Exhibit C – Second Amended and Restated Certificate of Incorporation of the

Surviving Corporation

-iii-

________________