qF xÎ]Ë Ù Jå»ad18rn0p25nwr6d.cloudfront.net/CIK-0000217346/6a0f... · reference. (c) The...
Transcript of qF xÎ]Ë Ù Jå»ad18rn0p25nwr6d.cloudfront.net/CIK-0000217346/6a0f... · reference. (c) The...
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
SCHEDULE TO
Tender Offer Statement Under Section 14(d)(1) or 13(e)(1) of the Securities Exchange Act of 1934
Arctic Cat Inc. (NameofSubjectCompany(Issuer))
Aces Acquisition Corp., Textron Specialized Vehicles Inc.
and
Textron Inc. (NameofFilingPersons(Offerors)
Common Stock, par value $0.01 per share (TitleofClassofSecurities)
039670104 (CUSIPNumberofClassofSecurities)
E. Robert Lupone Executive Vice President, General Counsel and Secretary
Textron Inc. 40 Westminster Street, Providence, RI 02903
Telephone: (401) 421-2800 (Name,AddressandTelephoneNumberofPersonAuthorized
toReceiveNoticesandCommunicationsonBehalfofFilingPersons)
Copy to: Robert M. Katz
Shearman & Sterling LLP 599 Lexington Avenue New York, NY 10022
Telephone: (212) 848-4000
Calculation of Filing Fee
Transaction Valuation(1) Amount of Filing Fee(2)
$246,258,816.78 $28,541.40
(1) Estimatedforpurposesofcalculatingtheamountofthefilingfeeonly,inaccordancewithRule0-11(d)undertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct").Calculatedbyadding(a)13,061,142sharesofcommonstockofArcticCatInc.issuedandoutstanding,multipliedby$18.50,thepersharetenderofferprice,(b)480,518sharesofcommonstocksubjecttooutstandingstockoptionswithanexercisepricelessthan$18.50pershare,multipliedby$2.71,whichistheofferpriceof$18.50pershareminustheweightedaverageexercisepriceforsuchoptionsof$15.79pershare,and(c)179,756sharesofcommonstocksubjecttooutstandingrestrictedstockunits,multipliedby$18.50,thepersharetenderofferprice,ineachcaseasofJanuary31,2017.ThecalculationofthefilingfeeisbasedoninformationprovidedbyArcticCatInc.asofJanuary31,2017.
(2) ThefilingfeewascalculatedinaccordancewithRule0-11oftheExchangeActandFeeRateAdvisory#1forfiscalyear2017,issuedOctober1,2016,bymultiplyingthetransactionvaluationby0.0001159.
o ChecktheboxifanypartofthefeeisoffsetasprovidedbyRule0-11(a)(2)andidentifythefilingwithwhichtheoffsettingfeewaspreviouslypaid.Identifythepreviousfilingbyregistrationstatementnumber,ortheFormorScheduleanddateofitsfiling.
o Checktheboxifthefilingrelatessolelytopreliminarycommunicationsmadebeforethecommencementofatenderoffer.
Checktheappropriateboxesbelowtodesignateanytransactionstowhichthestatementrelates:
ý third-partytenderoffersubjecttoRule14d-1.
o issuertenderoffersubjecttoRule13e-4.
o going-privatetransactionsubjecttoRule13e-3.
o amendmenttoSchedule13DunderRule13d-2.
AmountPreviouslyPaid: None FilingParty: N/AFormorRegistrationNo.: N/A DateFiled: N/A
Checkthefollowingboxifthefilingisafinalamendmentreportingtheresultsofthetenderoffer:o
ThisTenderOfferStatementonScheduleTOisfiledbyAcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),TextronSpecializedVehiclesandTextron.ThisScheduleTOrelatestotheofferbyPurchasertopurchasealloftheoutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares")ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheoffertopurchase,datedFebruary2,2017(asitmaybeamendedorsupplemented,the"OffertoPurchase"),andtherelatedletteroftransmittal(asitmaybeamendedorsupplemented,the"LetterofTransmittal,"andtogetherwiththeOffertoPurchase,the"Offer"),copiesofwhichareattachedtothisScheduleTOasExhibits(a)(1)(A)and(a)(1)(B),respectively.PursuanttoGeneralInstructionFtoScheduleTO,theinformationcontainedintheOffertoPurchase,includingallschedulesandannexestotheOffertoPurchase,isherebyexpresslyincorporatedinthisScheduleTObyreferenceinresponsetoItems1through11ofthisScheduleTOandissupplementedbytheinformationspecificallyprovidedforinthisScheduleTO.TheAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat,acopyofwhichisattachedasExhibit(d)(1)tothisScheduleTO,isincorporatedinthisScheduleTObyreferencewithrespecttoItems4through11ofthisScheduleTO.
Item 1. Summary Term Sheet.
TheinformationsetforthinthesectionoftheOffertoPurchaseentitled"SummaryTermSheet"isincorporatedinthisScheduleTObyreference.
Item 2. Subject Company Information.
(a)ThesubjectcompanyandissuerofthesecuritiessubjecttotheOfferisArcticCat.Itsprincipalexecutiveofficeislocatedat500North3rdStreet,Minneapolis,Minnesota55401,anditstelephonenumberis(612)350-1800.
(b)ThisScheduleTOrelatestoArcticCat'ssharesofcommonstock,parvalue$0.01pershare.AccordingtoArcticCat,asofthecloseofbusinessonJanuary31,2017,therewere(i)13,061,142Sharesissuedandoutstanding,(ii)480,518SharesissuableuponexerciseofoutstandingstockoptionsgrantedunderArcticCat'sstockplanswithexercisepricesbelow$18.50pershareand(iii)179,756SharesissuablepursuanttooutstandingrestrictedstockunitsgrantedunderArcticCat'sstockplans.
(c)TheinformationconcerningtheprincipalmarketinwhichtheSharesaretradedandcertainhighandlowsalespricesfortheSharesinthatprincipalmarketissetforthinthesectionoftheOffertoPurchaseentitled"PriceRangeoftheShares;Dividends"andisincorporatedinthisScheduleTObyreference.
Item 3. Identity and Background of Filing Person.
(a),(b),(c)TheinformationsetforthinthesectionoftheOffertoPurchaseentitled"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"andinScheduleItotheOffertoPurchaseisincorporatedinthisScheduleTObyreference.
Item 4. Terms of the Transaction.
(a)(1)(i)-(viii),(x),(xii)Theinformationsetforthinthe"SummaryTermSheet,""Introduction"andinthesectionsoftheOffertoPurchaseentitled"TermsoftheOffer,""AcceptanceforPaymentandPaymentforShares,""ProceduresforAcceptingtheOfferandTenderingShares,""Withdrawal
2
Rights,""MaterialUnitedStatesFederalIncomeTaxConsequences,""PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistration;MarginRegulations"and"ConditionsoftheOffer"isincorporatedinthisScheduleTObyreference.
(a)(1)(ix),(xi)Notapplicable.
(a)(2)(i)-(v)and(vii)TheinformationsetforthinthesectionsoftheOffertoPurchaseentitled"TermsoftheOffer,""MaterialUnitedStatesFederalIncomeTaxConsequences,""BackgroundoftheOffer;PastContactsorNegotiationswithArcticCat,""PurposeoftheOffer;PlansforArcticCat;OtherMatters"and"MergerAgreement;OtherAgreements"isincorporatedinthisScheduleTObyreference.
(a)(2)(vi)Notapplicable.
Item 5. Past Contacts, Transactions, Negotiations and Agreements.
(a),(b)TheinformationsetforthinthesectionsoftheOffertoPurchaseentitled"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser,""BackgroundoftheOffer;PastContactsorNegotiationswithArcticCat,""PurposeoftheOffer;PlansforArcticCat;OtherMatters"and"MergerAgreement;OtherAgreements"isincorporatedinthisScheduleTObyreference.
Item 6. Purposes of the Transaction and Plans or Proposals.
(a),(c)(1),(c)(3-7)Theinformationsetforthinthe"Introduction"andinthesectionsoftheOffertoPurchaseentitled"BackgroundoftheOffer;PastContactsorNegotiationswithArcticCat,""PurposeoftheOffer;PlansforArcticCat;OtherMatters,""MergerAgreement;OtherAgreements,""DividendsandDistributions"and"PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistration;MarginRegulations"isincorporatedinthisScheduleTObyreference.
(c)(2)None.
Item 7. Source and Amount of Funds or Other Consideration.
(a),(b),(d)TheinformationsetforthinthesectionoftheOffertoPurchaseentitled"SourceandAmountofFunds"isincorporatedinthisScheduleTObyreference.
Item 8. Interest in Securities of the Subject Company.
(a)TheinformationsetforthinthesectionoftheOffertoPurchaserentitled"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"isincorporatedinthisScheduleTObyreference.
(b)None.
Item 9. Persons/Assets, Retained, Employed, Compensated or Used.
(a)Theinformationsetforthinthe"Introduction"andinthesectionsoftheOffertoPurchaseentitled"FeesandExpenses"isincorporatedinthisScheduleTObyreference.
Item 10. Financial Statements of Certain Bidders.
(a),(b)NotApplicable.
3
Item 11. Additional Information.
(a)(1)TheinformationsetforthinthesectionsoftheOffertoPurchaseentitled"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser,""PurposeoftheOffer;PlansforArcticCat;OtherMatters"and"MergerAgreement;OtherAgreements"isincorporatedinthisScheduleTObyreference.
(a)(2)and(a)(3)TheinformationsetforthinthesectionsoftheOffertoPurchaseentitled"PurposeoftheOffer;PlansforArcticCat;OtherMatters,""MergerAgreement;OtherAgreements"and"LegalMatters;RequiredRegulatoryApprovals"isincorporatedinthisScheduleTObyreference.
(a)(4)TheinformationsetforthinthesectionoftheOffertoPurchaseentitled"PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistration;MarginRegulations"isincorporatedinthisScheduleTObyreference.
(a)(5)TheinformationsetforthinthesectionsoftheOffertoPurchaseentitled"PurposeoftheOffer;PlansforArcticCat;OtherMatters,""MergerAgreement;OtherAgreements"and"LegalMatters;RequiredRegulatoryApprovals"isincorporatedinthisScheduleTObyreference.
(c)TheinformationsetforthintheOffertoPurchaseandtheLetterofTransmittal,copiesofwhichareattachedheretoasExhibits(a)(1)(A)and(a)(1)(B),respectively,totheextentnototherwiseincorporatedhereinbyreference,isincorporatedhereinbyreference.
Item 12. Exhibits.
Item 13. Information Required by Schedule 13E-3.
Notapplicable.
4
(a)(1)(A) OffertoPurchase,datedFebruary2,2017.*
(a)(1)(B) FormofLetterofTransmittal.*
(a)(1)(C) FormofNoticeofGuaranteedDelivery.*
(a)(1)(D) FormofLettertoBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees.*
(a)(1)(E) FormofLettertoClientsforUsebyBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees.*
(a)(1)(F) FormofInstructionstoPlanParticipantsintheArcticCatInc.RetirementSavingsPlan.*
(a)(1)(G) SummaryAdvertisementaspublishedinThe Wall Street Journal onFebruary2,2017.*
(a)(5)(A) ExcerptfrompressreleaseissuedbyTextronInc.onJanuary25,2017,originallyfiledasExhibit(a)(5)(A)totheScheduleTO-CfiledbyTextronInc.,TextronSpecializedVehiclesInc.andAcesAcquisitionCorp.withtheSecuritiesandExchangeCommissiononJanuary25,2017,whichisincorporatedhereinbyreference.
(a)(5)(B) PressreleaseissuedbyTextronInc.onFebruary2,2017.*
(b) Notapplicable.
(d)(1) AgreementandPlanofMerger,datedasofJanuary24,2017,amongTextronInc.,AcesAcquisitionCorp.andArcticCatInc.,originallyfiledasExhibit2.1toArcticCatInc.'sForm8-KfiledwiththeSecuritiesandExchangeCommissiononJanuary25,2017,whichisincorporatedhereinbyreference.
(d)(2) ConfidentialityAgreement,datedOctober6,2016,byandbetweenArcticCatInc.andTextronInc.*
(g) Notapplicable.
(h) Notapplicable.
* Filedherewith.
SIGNATURE
Afterdueinquiryandtothebestofmyknowledgeandbelief,Icertifythattheinformationsetforthinthisstatementistrue,completeandcorrect.
Dated:February2,2017
5
ACES ACQUISITION CORP.
By: /s/ELIZABETHC.PERKINS
Name: ElizabethC.Perkins Title: Vice President
TEXTRON SPECIALIZED VEHICLES INC.
By: /s/ELIZABETHC.PERKINS
Name: ElizabethC.Perkins Title: Vice President
TEXTRON INC.
By: /s/E.ROBERTLUPONE
Name: E.RobertLupone Title: Executive Vice President, General
Counsel, Secretary and Chief Compliance Officer
EXHIBIT INDEX
(a)(1)(A) OffertoPurchase,datedFebruary2,2017.*
(a)(1)(B) FormofLetterofTransmittal.*
(a)(1)(C) FormofNoticeofGuaranteedDelivery.*
(a)(1)(D) FormofLettertoBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees.*
(a)(1)(E) FormofLettertoClientsforUsebyBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees.*
(a)(1)(F) FormofInstructionstoPlanParticipantsintheArcticCatInc.RetirementSavingsPlan.*
(a)(1)(G) SummaryAdvertisementaspublishedinThe Wall Street Journal onFebruary2,2017.*
(a)(5)(A) ExcerptfrompressreleaseissuedbyTextronInc.onJanuary25,2017,originallyfiledasExhibit(a)(5)(A)totheScheduleTO-CfiledbyTextronInc.,TextronSpecializedVehiclesInc.andAcesAcquisitionCorp.withtheSecuritiesandExchangeCommissiononJanuary25,2017,whichisincorporatedhereinbyreference.
(a)(5)(B) PressreleaseissuedbyTextronInc.onFebruary2,2017.*
(b) Notapplicable.
(d)(1) AgreementandPlanofMerger,datedasofJanuary24,2017,amongTextronInc.,AcesAcquisitionCorp.andArcticCatInc.,originallyfiledasExhibit2.1toArcticCatInc.'sForm8-KfiledwiththeSecuritiesandExchangeCommissiononJanuary25,2017,whichisincorporatedhereinbyreference.
(d)(2) ConfidentialityAgreement,datedOctober6,2016,byandbetweenArcticCatInc.andTextronInc.*
(g) Notapplicable.
(h) Notapplicable.
* Filedherewith.
QuickLinks
Item1.SummaryTermSheet.Item2.SubjectCompanyInformation.Item3.IdentityandBackgroundofFilingPerson.Item4.TermsoftheTransaction.Item5.PastContacts,Transactions,NegotiationsandAgreements.Item6.PurposesoftheTransactionandPlansorProposals.Item7.SourceandAmountofFundsorOtherConsideration.Item8.InterestinSecuritiesoftheSubjectCompany.Item9.Persons/Assets,Retained,Employed,CompensatedorUsed.Item10.FinancialStatementsofCertainBidders.Item11.AdditionalInformation.Item12.Exhibits.Item13.InformationRequiredbySchedule13E-3.
SIGNATUREEXHIBITINDEX
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(A)
Offer To Purchase For Cash All Outstanding Shares Of Common Stock
of
Arctic Cat Inc. at
$18.50 Per Share by
Aces Acquisition Corp.,
Textron Specialized Vehicles Inc.and
Textron Inc.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017 UNLESS THE OFFER ISEXTENDED.
AcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),isofferingtopurchasealloutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthinthisOffertoPurchase(asitmaybeamendedorsupplemented,this"OffertoPurchase")andintherelatedLetterofTransmittal(asitmaybeamendedorsupplemented,the"LetterofTransmittal"and,togetherwiththisOffertoPurchase,the"Offer").
TheOfferisbeingmadepursuanttotheAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat.PursuanttotheMergerAgreement,followingtheconsummationoftheOfferandthesatisfactionor,totheextentpermittedbyapplicablelaw,waiverofeachoftheapplicableconditionssetforthintheMergerAgreement,PurchaserandArcticCatwillmerge(the"Merger"),withArcticCatasthesurvivingcorporationintheMergercontinuingasanindirectwhollyownedsubsidiaryofTextron.AsaresultoftheMerger,eachoutstandingShare(otherthanSharesownedby(a)TextronorPurchaseroranyothersubsidiaryofTextronor(b)anyshareholderofArcticCatwhoisentitledtoandproperlydemandsandexercisesdissenters'rightswithrespecttosuchSharespursuantto,andcompliesinallrespectswith,theapplicableprovisionsofMinnesotalaw)willattheeffectivetimeoftheMergerbeconvertedintotherighttoreceiveanamountequaltotheOfferPrice,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.
ARCTIC CAT'S BOARD OF DIRECTORS RECOMMENDS THAT YOU TENDER ALL OF YOUR SHARES INTO THE OFFER.
OnJanuary23,2017,eachoftheArcticCatBoardofDirectors(the"ArcticCatBoard")and,asrequiredbytheMinnesotaBusinessCorporationAct,acommitteeofdisinteresteddirectorsoftheArcticCatBoard,amongotherthings,(i)determinedthattheMergerAgreementandthetransactionscontemplatedtherebyareadvisable,fairtoandinthebestinterestsofArcticCatanditsshareholders,(ii)approvedandadoptedtheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger,and(iii)recommendedthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserintheOfferand,ifrequiredtoconsummatetheMerger,such
shareholdersapproveandadopttheMergerAgreementandtheMerger.Accordingly,andforotherreasonsdescribedinmoredetailinArcticCat'sTenderOfferSolicitation/RecommendationStatementonSchedule14D-9thatisbeingfiledwiththeUnitedStatesSecuritiesandExchangeCommission(the"SEC")and,togetherwiththisOffertoPurchase,theLetterofTransmittalandotherrelatedmaterials,mailedtotheshareholdersofArcticCatinconnectionwiththeOffer,theArcticCatBoardunanimouslyrecommendsthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.
ThereisnofinancingconditiontotheOffer.TheOfferis,however,subjecttothesatisfactionoftheMinimumCondition(asdefinedinthe"Introduction"totheOffertoPurchase)andtheotherconditionsdescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.AsummaryoftheprincipaltermsoftheOfferappearsinSection1—"TermsoftheOffer"ofthisOffertoPurchase.YoushouldreadthisentiredocumentcarefullybeforedecidingwhethertotenderyourShares.
QuestionsandrequestsforassistancemaybedirectedtoAllianceAdvisorsLLC,theInformationAgent,atitsaddressandtelephonenumbersetforthbelowandonthebackcoverofthisOffertoPurchase.AdditionalcopiesofthisOffertoPurchase,therelatedLetterofTransmittal,theNoticeofGuaranteedDelivery(asitmaybeamendedorsupplemented,the"NoticeofGuaranteedDelivery")andotherrelatedmaterialsmaybeobtainedfromtheInformationAgentoratthewebsitemaintainedbytheSECatwww.sec.gov .ShareholdersofArcticCatalsomaycontacttheirbroker,dealer,commercialbank,trustcompanyorothernomineeforcopiesofthesedocuments.
The Information Agent for the Offer is:
AllianceAdvisorsLLC
200BroadacresDrive,3rdFloorBloomfield,NJ07003
Call Collect: (973)873-7780or
Call Toll-Free: (888)991-1293Email: [email protected]
February 2, 2017
2
IMPORTANT
ShareholdersofArcticCatdesiringtotenderSharesmust:
1. ForSharesthatareregisteredinthenameofabroker,dealer,commercialbank,trustcompanyorothernominee:
• contactthebroker,dealer,commercialbank,trustcompanyorothernomineeandrequestthatthebroker,dealer,commercialbank,trustcompanyorothernomineetendertheSharestoPurchaserbeforetheexpirationoftheOffer.
2. ForSharesthatareregisteredintheshareholder'snameandheldinbook-entryform:
• completeandsigntheLetterofTransmittal(orafacsimilethereof)inaccordancewiththeinstructionsintheLetterofTransmittalorprepareanAgent'sMessage(asdefinedinSection2—"AcceptanceforPaymentandPaymentforShares"ofthisOffertoPurchase);
• ifusingtheLetterofTransmittal,havetheshareholder'ssignatureontheLetterofTransmittalguaranteedifrequiredbyInstruction1oftheLetterofTransmittal;
• deliveranAgent'sMessageortheLetterofTransmittal(orafacsimilethereof),properlycompletedanddulyexecuted,andanyotherrequireddocumentstoWellsFargoBank,N.A.,thedepositaryfortheOffer(the"Depositary"),atitsaddressonthebackofthisOffertoPurchasebeforetheexpirationoftheOffer;and
• transfertheSharesthroughbook-entrytransferintotheaccountoftheDepositarybeforetheexpirationoftheOffer.
3. ForSharesthatareregisteredintheshareholder'snameandheldasphysicalcertificates:
• completeandsigntheLetterofTransmittal(orafacsimilethereof)inaccordancewiththeinstructionsintheLetterofTransmittal;
• havetheshareholder'ssignatureontheLetterofTransmittalguaranteedifrequiredbyInstruction1totheLetterofTransmittal;and
• delivertheLetterofTransmittal(orafacsimilethereof)properlycompletedanddulyexecuted,thecertificatesforsuchSharesandanyotherrequireddocumentstotheDepositary,atitsaddressonthebackofthisOffertoPurchasebeforetheexpirationoftheOffer.
The Letter of Transmittal, the certificates for the Shares and any other required documents must be received by the Depositary before the expiration ofthe Offer, unless the procedures for guaranteed delivery described in Section 3—"Procedures for Accepting the Offer and Tendering Shares" of this Offer toPurchase are followed. The method of delivery of Shares, the Letter of Transmittal and all other required documents, including delivery through theDepositary, is at the election and risk of the tendering shareholder.
*****
This Offer to Purchase and the related Letter of Transmittal contain important information and you should read both carefully and in their entiretybefore making a decision with respect to the Offer.
The Offer has not been approved or disapproved by the SEC or any state securities commission nor has the SEC or any state securities commissionpassed upon the fairness or merits of or upon the accuracy or adequacy of the information contained in this Offer to Purchase. Any representation to thecontrary is unlawful.
SUMMARYTERMSHEET 1
INTRODUCTION 12
THETENDEROFFER 17
1.TermsoftheOffer
17
2. AcceptanceforPaymentandPaymentforShares 193. ProceduresforAcceptingtheOfferandTenderingShares 204. WithdrawalRights 235. MaterialUnitedStatesFederalIncomeTaxConsequences 246. PriceRangeoftheShares;Dividends 277. PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistration;Margin
Regulations 28
8. CertainInformationConcerningArcticCat 299. CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser 3010. BackgroundoftheOffer;PastContactsorNegotiationswithArcticCat 3111. PurposeoftheOffer;PlansforArcticCat;OtherMatters 3412. MergerAgreement;OtherAgreements 3813. SourceandAmountofFunds 6514. DividendsandDistributions 6515. ConditionsoftheOffer 6616. LegalMatters;RequiredRegulatoryApprovals 6717. FeesandExpenses 7018. Miscellaneous 70
SCHEDULEIINFORMATIONCONCERNINGTHEDIRECTORSANDEXECUTIVEOFFICERSOFTEXTRONINC.,TEXTRONSPECIALIZEDVEHICLESINC.ANDACESACQUISITIONCORP.
72
SUMMARY TERM SHEET
Aces Acquisition Corp., a Minnesota corporation (" Purchaser"), is a direct wholly owned subsidiary of Textron Specialized Vehicles Inc., a Delawarecorporation (" TextronSpecializedVehicles"), which is a direct wholly owned subsidiary of Textron Inc. (" Textron"), a Delaware corporation. Purchaser isoffering to purchase all outstanding shares of common stock, par value $0.01 per share (the " ArcticCatCommonStock" or the " Shares"), of Arctic Cat Inc.,a Minnesota corporation (" ArcticCat"), for $18.50 per Share (the " OfferPrice"), payable net to the holder thereof in cash, without interest, subject to anywithholding of taxes required by applicable law, upon the terms and subject to the conditions set forth in this Offer to Purchase (together with any amendmentsor supplements hereto, this " OffertoPurchase") and the related Letter of Transmittal (together with any amendments or supplements thereto, the " LetterofTransmittal" and, together with this Offer to Purchase, the " Offer"). The Offer is being made pursuant to the Agreement and Plan of Merger, dated as ofJanuary 24, 2017 (as it may be amended, restated or supplemented from time to time, the " MergerAgreement"), among Textron, Purchaser and Arctic Cat,which provides, among other things, that following the consummation of the Offer and the satisfaction or, to the extent permitted by applicable law, waiver ofeach of the applicable conditions set forth in the Merger Agreement, Purchaser and Arctic Cat will merge (the " Merger"), with Arctic Cat as the survivingcorporation in the Merger continuing as an indirect wholly owned subsidiary of Textron (the " SurvivingCompany"). The following are answers to somequestions that you, as a shareholder of Arctic Cat, may have about the Offer. WeurgeyoutocarefullyreadthisOffertoPurchaseandtheaccompanyingLetterofTransmittalintheirentiretybecausetheinformationinthisSummaryTermSheetisnotcompleteandadditionalimportantinformationiscontainedintheremainderofthisOffertoPurchaseandtheaccompanyingLetterofTransmittal. Unless the context indicates otherwise, in this Offer toPurchase we use the terms "us," "we" and "our" to refer to Purchaser and, where appropriate, Textron and Textron Specialized Vehicles. We use the term"Textron" to refer to Textron Inc. alone, the term "Purchaser" to refer to Aces Acquisition Corp. alone, the term "Textron Specialized Vehicles" to refer toTextron Specialized Vehicles Inc. alone, and the term "Arctic Cat" to refer to Arctic Cat Inc.
1
Securities Sought: Alloftheoutstandingsharesofcommonstock,parvalue$0.01pershare,ofArcticCat.
Offer Price Per Share:
$18.50payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.
Scheduled Expiration of the Offer:
5:00P.M.,NewYorkCitytime(the"ExpirationTime"),onMarch3,2017(the"ExpirationDate,"unlesstheOfferisextendedpursuanttoandinaccordancewiththetermsoftheMergerAgreement,inwhichevent"ExpirationDate"willmeanthelatesttimeanddateatwhichtheOffer,assoextended,willexpire).
Purchaser:
AcesAcquisitionCorp.,anindirectwhollyownedsubsidiaryofTextron.
Who is offering to buy my securities?
OurnameisAcesAcquisitionCorp.,aMinnesotacorporation,formedforthepurposeofmakingthisOffer.WeareanindirectwhollyownedsubsidiaryofTextron,aDelawarecorporation.Textronisamulti-industrycompanywith2016revenuesof$13.8billionthatleveragesitsglobalnetworkofaircraft,defense,industrialandfinancebusinessestoprovidecustomerswithinnovativeproductsandservicesaroundtheworld.Seethe"Introduction"andSection9—"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"ofthisOffertoPurchase.
TheOfferisthefirststepinourplantoacquirealloftheoutstandingShares,asprovidedintheMergerAgreement.If,aftercompletionoftheOffer,we,togetherwithTextron,ownatleastoneSharemorethan50%oftheFullyDilutedShares(asdefinedbelow),uponthetermsandsubjecttotheconditionsoftheMergerAgreement,weintendtoacquiretheremainderoftheoutstandingSharesintheMergerfor$18.50perShareincash.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"ofthisOffertoPurchase.
What are the classes and amounts of securities sought in the Offer?
WeareofferingtopurchasealloftheoutstandingSharesonthetermsandsubjecttotheconditionssetforthinthisOffertoPurchase.Seethe"Introduction"andSection1—"TermsoftheOffer"ofthisOffertoPurchase.
2
Recommendation of the Arctic Cat Board of Directors: OnJanuary23,2017,eachoftheArcticCatBoardofDirectors(the"ArcticCatBoard")and,asrequiredbytheMinnesotaBusinessCorporationAct(the"MBCA"),acommitteeofdisinteresteddirectorsoftheArcticCatBoard,amongotherthings,(i)determinedthattheMergerAgreementandthetransactionscontemplatedtherebyareadvisable,fairtoandinthebestinterestsofArcticCatanditsshareholders,(ii)approvedandadoptedtheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger,and(iii)recommendedthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserintheOfferand,ifrequiredtoconsummatetheMerger,suchshareholdersapproveandadopttheMergerAgreementandtheMerger.Accordingly,andforotherreasonsdescribedinmoredetailinArcticCat'sTenderOfferSolicitation/RecommendationStatementonSchedule14D-9thatisbeingfiledwiththeUnitedStatesSecuritiesandExchangeCommission(the"SEC")and,togetherwiththisOffertoPurchase,theLetterofTransmittalandotherrelatedmaterials,mailedtotheshareholdersofArcticCatinconnectionwiththeOffer,theArcticCatBoardunanimouslyrecommendsthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.
How much are you offering to pay? Will I have to pay any fees or commissions?
Weareofferingtopay$18.50perShare,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.IfyouareashareholderofArcticCatwhohasSharesregisteredinyournameandyoutenderdirectlytoWellsFargoBank,N.A.,thedepositaryfortheOffer(the"Depositary"),youwillnotbechargedbrokeragefeesorcommissions.IfyouholdyourSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeandyourbroker,dealer,commercialbank,trustcompanyorothernomineetendersyourSharesonyourbehalf,yourbroker,dealer,commercialbank,trustcompanyorothernomineemaychargeyouafeeorcommissionfordoingso.Youshouldconsultyourbroker,dealer,commercialbank,trustcompanyorothernomineetodeterminewhetheranychargeswillapply.Seethe"Introduction"andSection1—"TermsoftheOffer"ofthisOffertoPurchase.
Why are you making the Offer?
WearemakingtheOfferbecausewewanttoacquireArcticCat.IftheOfferisconsummated,Textronintends,assoonaspracticableaftercompletionoftheOffer,tocauseustoconsummatetheMerger.UponconsummationoftheMerger,theSurvivingCompanywouldbeanindirectwhollyownedsubsidiaryofTextron.SeeSection1—"TermsoftheOffer"andSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"ofthisOffertoPurchase.
Is there an agreement governing the Offer?
Yes.Textron,PurchaserandArcticCathaveenteredintotheMergerAgreement.TheMergerAgreementprovides,amongotherthings,forthetermsandconditionsoftheOfferand,followingcompletionoftheOffer,theMerger.SeeSection12—"MergerAgreement;OtherAgreements"andSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.
Do you have the financial resources to make payment?
Yes.Textron,ourindirectparentcompany,willprovideuswithsufficientfundstopurchaseallSharesvalidlytenderedintheOfferandtoprovidefundingforouracquisitionoftheremainingSharesintheMerger,whichisexpectedtofollowthesuccessfulcompletionoftheOfferinaccordancewiththetermsandconditionsoftheMergerAgreement.Textronintendstoobtainsuchfundsfromitscashonhand.TheOfferisnotconditioneduponTextronorusobtainingfinancing.SeeSection13—"SourceandAmountofFunds"ofthisOffertoPurchase.
Is your financial condition relevant to my decision to tender my Shares in the Offer?
No.WedonotthinkourfinancialconditionisrelevanttoyourdecisionwhethertotenderyourSharesandaccepttheOfferbecause:
• theOfferisbeingmadeforalloutstandingSharessolelyforcash;
• TextronwillprovideuswithsufficientfundsandfinancialresourcesavailabletopurchaseallSharesvalidlytenderedintheOfferoracquiredintheMerger;
• theOfferisnotsubjecttoanyfinancingcondition;and
• ifweconsummatetheOffer,wewillacquireanyremainingSharesforthesamecashpriceintheMerger.
SeeSection13—"SourceandAmountofFunds"ofthisOffertoPurchase.
3
Do I have to vote to approve the Offer or the Merger?
YourvoteisnotrequiredtoapprovetheOffer.YousimplyneedtotenderyourSharesifyouchoosetodoso.However,theOffercanbecompletedonlyif,amongotherthings,theMinimumCondition(asdefinedbelow)issatisfied.
TheArcticCatBoardhasapprovedandadoptedtheMergerAgreement.ArcticCatshareholderswillberequiredtoapproveandadopttheMergerAgreementandtheMergeronlyifweandTextrondonotacquire,intheaggregate,atleast90%oftheoutstandingSharesintheOffer,andanysubsequentexerciseoftheTopUpOption(asdefinedbelow)orotherwise,inwhichcasewewouldnotbeabletoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCAwithouttheapprovalofArcticCatshareholders.BecausesatisfactionoftheMinimumConditionisrequiredtocompletetheOfferandapprovaloftheMergerrequirestheaffirmativevoteofholdersofamajorityoftheoutstandingShares,uponcompletionoftheOffer,wewillownasufficientnumberofSharestoensurethattheMergerwillbeapprovedbytheshareholdersofArcticCat.
AnysolicitationofproxiesorconsentsfromArcticCatshareholderstoadopttheMergerAgreement,ifnecessary,willbemadepursuanttoseparatematerialscomplyingwiththerulesandregulationsoftheSEC.
How long do I have to decide whether to tender my Shares in the Offer?
YouwillhaveatleastuntiltheexpirationoftheOffertotenderyourSharesintheOffer.ThecurrentexpirationoftheOfferis5:00P.M.,NewYorkCitytime,onMarch3,2017,unlessweextendtheperiodoftimeforwhichtheinitialofferingperiodoftheOfferisopenpursuanttothetermsoftheMergerAgreement.Ifyoucannotdelivereverythingrequiredtomakeavalidtenderbythattime,youmaystillparticipateintheOfferbyusingtheguaranteeddeliveryprocedurethatisdescribedlaterinthisOffertoPurchasepriortothattime.IfyouownyourSharesthroughtheArcticCatInc.RetirementSavingsPlan(the"ArcticCat401(k)Plan"),youwillhavetocompletetheTenderOfferInstructionFormtoinstructtheArcticCat401(k)PlanTrusteetotenderyourSharesatleastthree(3)businessdayspriortotheExpirationDate.SeeSection1—"TermsoftheOffer"andSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.
Can the Offer be extended and under what circumstances?
Yes.WehaveagreedintheMergerAgreementthat:
• UnlesstheOfferisterminatedinaccordancewiththeMergerAgreement,wemay,inoursolediscretion,extendtheOfferforsuccessiveperiodsofuptotwenty(20)businessdayseachif,atthethenscheduledexpirationoftheOffer,anyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearenotsatisfiedor,wherepermittedbyapplicablelaw,waivedbyusorTextroninordertopermitthesatisfactionofsuchconditions.
• UnlesstheOfferisterminatedinaccordancewiththeMergerAgreement,intheeventthatanyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearenotsatisfiedor,totheextentpermittedbyapplicablelaw,waivedbyusorTextronasofanythenscheduledexpirationoftheOfferandtheArcticCatBoardhasnoteffectedanAdverseRecommendationChange(asdefinedinSection12(a)—"MergerAgreement"ofthisOffertoPurchase),ArcticCatmay,initssolediscretionandbywrittennoticeatleasttwo(2)businessdayspriortothethenscheduledexpirationoftheOffer,requestthatweextendtheOfferforoneperiodoften(10)businessdays,untilalloftheconditionstotheOffersetforthintheMergerAgreementanddescribedin
4
Section15—"ConditionsoftheOffer"ofthisOffertoPurchasearesatisfiedor,wherepermittedbyapplicablelaw,waivedbyusorTextron.
• WewillalsoextendtheOfferforanyperiodrequiredbyapplicablelaworapplicablerule,regulation,interpretationorpositionoftheSECoritsstafforanyoftherulesandregulations,includinglistingstandards,ofNASDAQoranyotherUnitedStatesnationalsecuritiesexchangeregisteredundertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct"),onwhichtheSharesarethentraded.
InnoeventwillweberequiredtoextendtheOfferforanyreasonbeyondtheearliertooccurof(a)thedatetheMergerAgreementisterminatedor(b)May24,2017.
FollowingouracceptanceandpaymentforSharestenderedintheOffer,wewill,ifnecessary,inordertoenableus,togetherwithTextron,toacquireatleast90%oftheSharesthenoutstanding,takingintoaccounttheexerciseoftheTopUpOption,provideforone"subsequentofferingperiod"(asprovidedinRule14d-11undertheExchangeAct)ofnotlessthanthree(3)normorethantwenty(20)businessdays(the"SubsequentOfferingPeriod")asdeterminedinourorTextron'ssolediscretion.DuringsuchSubsequentOfferingPeriodallSharesthatarevalidlytenderedpursuanttotheOfferwillbeimmediatelyacceptedforpaymentbyus,andwewillimmediatelypayforsuchSharesattheOfferPrice.
SeeSection1—"TermsoftheOffer"ofthisOffertoPurchaseformoredetailsonourobligationandabilitytoextendtheOffer.
What is the difference between an extension of the Offer and the Subsequent Offering Period?
Exceptasdescribedinthenextsentence,iftheOfferisextended,noShareswillbeacceptedorpaidforuntilfollowingtheExpirationDate(assoextended),andyouwillbeabletowithdrawyourSharesuntiltheExpirationDate.
TheSubsequentOfferingPeriod,ifitisprovided,wouldoccuraftertheAcceptanceTime(asdefinedbelow)andafterwehavebecomeobligatedtopayforallSharesthatwerevalidlytenderedandnotproperlywithdrawnpriortotheExpirationDate.SharesthatarevalidlytenderedduringtheSubsequentOfferingPeriodwillbeimmediatelyacceptedforpaymentbyus,wewillimmediatelypayforsuchSharesattheOfferPriceandsuchSharescannotbewithdrawn.SeeSection1—"TermsoftheOffer"andSection4—"WithdrawalRights"ofthisOffertoPurchase.
How will I be notified if the Offer is extended?
IfweextendtheOffer,wewillinformtheDepositaryofanyextensionandwillissueapressreleaseannouncingtheextensionnotlaterthan9:00A.M.,NewYorkCitytime,onthenextbusinessdayafterthedayonwhichtheOfferwaspreviouslyscheduledtoexpire.SeeSection1—"TermsoftheOffer"ofthisOffertoPurchase.
IftheSubsequentOfferingPeriodisnecessary,apublicannouncementofsuchperiodwillbemadenotlaterthan9:00A.M.,NewYorkCitytime,onthenextbusinessdayfollowingthepreviouslyscheduledExpirationDateoftheOffer.
What is the "Minimum Condition" to the Offer?
WearenotobligatedtoacceptforpaymentorpayforanySharesintheOfferunlessthenumberofSharesvalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOfferwhich,togetherwiththenumberofShares(ifany)thenbeneficiallyownedbyTextronorus,intheaggregate,orwithrespecttowhichTextronorweotherwisehave,directlyorindirectly,solevotingpower,representsatleastoneSharemorethan50%oftheFullyDilutedShares(collectively,the"Minimum
5
Condition").PursuanttotheMergerAgreement,thesatisfactionoftheMinimumConditionwillbedeterminedwithouttreatingasvalidlytenderedSharestenderedviaguaranteeddeliveryproceduresunlesstheDepositaryhasreceivedallrequireditemsonaccountofsuchSharesinsettlementorsatisfactionofanysuchguaranteeatorpriortotheexpirationoftheOffer.
"FullyDilutedShares"meansalloutstandingsecuritiesentitledtovoteintheelectionofdirectorsofArcticCatorontheadoptionoftheMergerAgreementandapprovaloftheMerger,togetherwithallsuchsecuritieswhichArcticCatwouldberequiredorpermittedtoissueassumingtheconversionorexchangeofanythen-outstandingwarrants,options,securitiesorinstrumentsconvertibleorexchangeableinto,orrightsexercisablefor,suchsecurities,whetherornotthenconvertible,exchangeableorexercisable.
What are the conditions to the Offer other than the Minimum Condition?
InadditiontotheMinimumCondition,wearenotobligatedtoacceptforpaymentorpayforanyvalidlytenderedShares(subjecttoapplicablerulesandregulationsoftheSEC)andmaydelaytheacceptanceforpaymentoforthepaymentforanyvalidlytenderedShares(subjecttoapplicablerulesandregulationsoftheSEC),unless:
(i) (a)thewaitingperiodapplicabletotheconsummationoftheOfferundertheHart-Scott-RodinoAntitrustImprovementsActof1976,andtherulesandregulationspromulgatedthereunder(the"HSRAct")hasexpiredorbeenterminatedatorpriortotheExpirationDateand(b)anyconsent,approval,orotherauthorizationapplicabletotheconsummationoftheOfferundertheantitrustlawsofGermanyhasbeenreceivedorgranted(collectively,the"RegulatoryApprovalCondition");and
(ii) atanytimeonorafterthedateoftheMergerAgreementandpriortotheExpirationDate,noneofthefollowinghasoccurredandiscontinuingattheExpirationDate:
(a) anygovernmentalauthorityofcompetentjurisdictionhasenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororder(whethertemporary,preliminaryorpermanent)thatisineffectandenjoinsorotherwiseprohibitsormakesillegaltheconsummationofthetransactionscontemplatedbytheMergerAgreementonthetermscontemplatedbytheMergerAgreement(providedthatweandTextronhaveusedourreasonablebesteffortstoopposeanysuchactionbysuchgovernmentalauthority)(the"GovernmentalAuthorityCondition");
(b) therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreement,subjecttothematerialityandotherqualificationssetforthintheMergerAgreement,includingcertainoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase,areinaccurate(the"RepresentationsCondition");
(c) ArcticCathasbreachedorfailedtoperformorcomply,inanymaterialrespect,withanyagreementorcovenanttobeperformedorcompliedwithbyitundertheMergerAgreementandanysuchbreachorfailureshallnothavebeencuredpriortotheExpirationDate(the"CovenantsCondition");
(d) sincethedateoftheMergerAgreement,therehasoccurredaCompanyMaterialAdverseEffect(asdefinedinSection12(a)—"MergerAgreement"ofthisOffertoPurchase)(the"MaterialAdverseEffectCondition");
(e) ArcticCatshallnothavefurnishedTextronanduswithacertificate,datedasoftheExpirationDate,executedbytheChiefExecutiveOfficerorPresidentofArcticCat,to
6
theeffectthattheRepresentationsCondition,theCovenantsConditionandtheMaterialAdverseEffectConditionhavebeensatisfied;and
(f) theMergerAgreementhasbeenterminatedinaccordancewithitsterms.
SeeSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseforacompletedescriptionoftheconditionstotheOffer.
How do I tender my Shares?
IfyourSharesareregisteredinthenameofabroker,dealer,commercialbank,trustcompanyorothernominee,contactthebroker,dealer,commercialbank,trustcompanyorothernomineeandrequestthatthebroker,dealer,commercialbank,trustcompanyorothernomineetenderyourSharestousonyourbehalfbeforetheExpirationDate.
IfyourSharesareregisteredinyournameandheldinbook-entryform(i.e.,nostockcertificateshavebeenissuedtoyou):
• completeandsigntheLetterofTransmittal(orafacsimilethereof)inaccordancewiththeinstructionsintheLetterofTransmittalorprepareanAgent'sMessage(asdefinedinSection2—"AcceptanceforPaymentandPaymentforShares"ofthisOffertoPurchase);
• ifusingtheLetterofTransmittal,haveyoursignatureontheLetterofTransmittalguaranteedifrequiredbyInstruction1oftheLetterofTransmittal;
• deliveranAgent'sMessageortheLetterofTransmittal(orafacsimilethereof),properlycompletedanddulyexecuted,andanyotherrequireddocumentstotheDepositary,atitsaddressonthebackofthisOffertoPurchasebeforetheexpirationoftheOffer;and
• transfertheSharesthroughbook-entrytransferintotheaccountoftheDepositarybeforetheexpirationoftheOffer.
IfyourSharesareregisteredinyournameandheldasphysicalcertificates(i.e.,stockcertificateshavebeenissuedtoyou):
• completeandsigntheLetterofTransmittal(orafacsimilethereof)inaccordancewiththeinstructionsintheLetterofTransmittal;
• haveyoursignatureontheLetterofTransmittalguaranteedifrequiredbyInstruction1totheLetterofTransmittal;and
• delivertheLetterofTransmittal(orafacsimilethereof)properlycompletedanddulyexecuted,thecertificatesforsuchSharesandanyotherrequireddocumentstotheDepositary,atitsaddressonthebackofthisOffertoPurchase,beforetheexpirationoftheOffer.
IfyouarearecordholderbutyourstockcertificateisnotavailableoryoucannotdeliveryourstockcertificatetotheDepositarybeforetheExpirationDate,youmaybeabletotenderyourSharesusingtheenclosedNoticeofGuaranteedDelivery(asitmaybeamendedorsupplemented,the"NoticeofGuaranteedDelivery").PleasecalltheInformationAgent,AllianceAdvisorsLLC,at(973)873-7780(CallCollect)or(888)991-1293(CallToll-Free).
IfyouholdyourSharesthroughtheArcticCat401(k)Plan,youmustcompleteandsigntheenclosedTenderOfferInstructionForm.TheTenderOfferInstructionForminstructstheArcticCat401(k)PlanTrusteetotenderyourSharesintheOffer.TheTenderOfferInstructionFormmustbedeliveredtoWellsFargoBank,N.A.sufficientlyinadvanceoftheExpirationDate(andinanyeventnotlaterthanthree(3)businessdayspriortotheExpirationDate)toenableWellsFargoBank,N.A.andtheArcticCat401(k)PlanTrusteetocomplywiththeinstructionscontainedtherein.DetailedinstructionsarecontainedintheTenderOfferInstructionFormandinSection3—"Procedurefor
7
AcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.PurchaserassumesnoresponsibilityfortheactionsoftheArcticCat401(k)PlanTrustee.
SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchaseformoredetails.
Until what time may I withdraw previously tendered Shares?
YoumaywithdrawSharesthatyouhavepreviouslytenderedintheOfferatanytimeuntiltheOfferhasexpired.Inaddition,unlessweacceptedyourSharesforpaymentasprovidedinthisOffertoPurchase,youmayalsowithdrawsuchSharesatanytimeafterApril27,2017.IfyoutenderedSharesundertheArcticCat401(k)Plan,tomakeaneffectivewithdrawal,youmustprovidesufficientnoticeinadvanceoftheExpirationDate(andinanyeventnotlaterthanthree(3)businessdayspriortotheExpirationDate)toenableWellsFargoBank,N.A.andtheArcticCat401(k)PlanTrusteetocomplywiththeinstructionscontainedinyourTenderOfferInstructionForm.NowithdrawalrightsapplytoSharestenderedintheSubsequentOfferingPeriodandnowithdrawalrightsapplyduringtheSubsequentOfferingPeriodwithrespecttoSharestenderedintheOfferandacceptedforpayment.SeeSection4—"WithdrawalRights"ofthisOffertoPurchase.
How do I withdraw previously tendered Shares?
If,aftertenderingyourSharesintheOffer,youdecidethatyoudonotwanttoaccepttheOffer,youcanwithdrawyourSharesbydeliveringawrittennoticeofwithdrawalwiththerequiredinformationtotheDepositarybeforetheExpirationDate.IfyoutenderedyourSharesbygivinginstructionstoabroker,dealer,commercialbank,trustcompanyorothernominee,youmustinstructthebroker,dealer,commercialbank,trustcompanyorothernomineetoarrangeforthewithdrawalofyourShares,andsuchbroker,dealer,commercialbank,trustcompanyorothernomineemusteffectivelywithdrawsuchShareswhileyoustillhavetherighttowithdrawShares.IfyoutenderedSharesundertheArcticCat401(k)Plan,tomakeaneffectivewithdrawal,youmustdeliverupdatedinstructionstoWellsFargoBank,N.A.,asexplainedintheTenderOfferInstructionForm.SeeSection4—"WithdrawalRights"ofthisOffertoPurchase.
Have any shareholders previously agreed to tender their Shares?
No.WehavenotpreviouslyenteredintoanyagreementswithanyshareholdersofArcticCatwithrespecttothetenderofSharesintotheOffer.
How long will it take to complete the proposed transaction?
ThetimingofcompletingtheOfferandtheMergerwilldependonavarietyoffactors.WeannouncedtheOffertofacilitatetheacquisitionofArcticCataspromptlyaspracticable.IftheconditionstotheOfferaresatisfied,weexpectthattheOfferwillbeconsummatedpromptlyfollowingtheExpirationDate.InaccordancewiththeMergerAgreement,theMergerisexpectedtotakeplaceonthethirdbusinessdayafterthesatisfactionor,totheextentpermittedbyapplicablelaw,waiverofcertainconditionstotheMergersetforthintheMergerAgreement(includingtheconsummationoftheOffer),asdescribedinSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.IfwereceivetendersintheOfferofatleast90%oftheoutstandingShares,orsufficienttenderstoenableustoexercisetheTopUpOption,weanticipatethattheMergerwouldbecompletedshortlyfollowingcompletionoftheOffer.
Will the Offer be followed by a merger?
Yes,unlesstheconditionstotheMergerarenotsatisfiedor,totheextentpermittedbyapplicablelaw,waived.IfweacceptforpaymentandpayforallSharesvalidlytenderedandnotproperly
8
withdrawnpursuanttotheOffer,andtheotherconditionstotheMergeraresatisfiedor,totheextentpermittedbyapplicablelaw,waived,wewillmergewithandintoArcticCat.IftheMergertakesplace,TextronoritssubsidiarieswillownalloftheShares,andalloftheremainingshareholdersofArcticCat,otherthananydissentingshareholdersofArcticCatthatproperlyexercisedissenters'rights,willhavetherighttoreceive$18.50pershareofArcticCatcommonstock(the"MergerConsideration"),withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.See"Introduction"tothisOffertoPurchase.SeealsoSection12—"MergerAgreement;OtherAgreements"andSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseforadescriptionoftheconditionstotheMergerandtheOffer.
If the Merger occurs, will Arctic Cat continue as a public company?
No.FollowingthecompletionoftheOffer,we,TextronandArcticCatexpecttoconsummatetheMergeraspromptlyaspracticablethereafter.IftheMergertakesplace,noShareswillremainpubliclyowned,andArcticCatwillbeanindirectwhollyownedsubsidiaryofTextron.
If I decide not to tender, how will the Merger affect my Shares?
IfyoudecidenottotenderyourSharesintheOfferandtheMergeroccurs,youwillsubsequentlyreceivetheMergerConsideration,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,whichisthesameamountofcashperSharethatyouwouldhavereceivedhadyoutenderedyourSharesintheOffer.Therefore,iftheMergertakesplace,andyoudonotvalidlyexerciseyourdissenters'rightsunderSection302A.471(c)oftheMBCA,theonlydifferencetoyoubetweentenderingyourSharesandnottenderingyourSharesisthatyouwillbepaidearlierifyoutenderyourShares.Ifyoudovalidlyexerciseyourdissenters'rights,thenyoumayreceivethejudiciallydeterminedfairvalueofyourSharesincash.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters—Dissenters'Rights"ofthisOffertoPurchase.IfyoudecidenottotenderyourSharesintheOfferandwepurchasethetenderedShares,buttheMergerdoesnotoccur,youwillremainanArcticCatshareholder.However,theremaybesofewremainingshareholdersandpubliclytradedSharesthattheremaynotbeanactivepublictradingmarketfortheArcticCatCommonStock.Also,ArcticCatmayceasetoberequiredtomakefilingswiththeSECorotherwisecomplywiththeSECrulesrelatingtopubliclyheldcompanies.See"Introduction"andSection7—"PossibleEffectsoftheOfferontheMarketfortheShares;NASDAQListing;ExchangeActRegistration;MarginRegulations"ofthisOffertoPurchase.
What is the market value of my Shares as of a recent date?
TheclosingpricefortheSharesreportedontheNASDAQwas$13.09perShareonJanuary24,2017,thelastfulldayoftradingpriortotheannouncementoftheexecutionoftheMergerAgreement,and$18.80pershareonJanuary31,2017,thelatestpracticablefulltradingdaypriortothecommencementoftheOffer.Before deciding whether to tender, you should obtain a current market quotation for the Shares.
If I accept the Offer, when and how will I get paid?
IftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearesatisfiedor,totheextentpermittedbyapplicablelaw,waivedandweconsummatetheOfferandacceptyourSharesforpayment,wewillpayyou,promptlyfollowingtheExpirationDate,anamountequaltothenumberofSharesyoutenderedmultipliedby$18.50,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.SeeSection1—"TermsoftheOffer"andSection2—"AcceptanceforPaymentandPaymentforShares"ofthisOffertoPurchase.
9
What is the Top Up Option and when could it be exercised?
Ifwe,togetherwithTextron,intheaggregate,acquirelessthan90%oftheoutstandingSharesintheOffer,wehavetheoptioninspecifiedcircumstancestopurchasefromArcticCatadditionalSharessufficienttocauseustoown,intheaggregate,oneSharemorethan90%oftheFullyDilutedShares(the"TopUpOption").ThepurposeoftheTopUpOptionistopermitustoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCAandwithoutconveningameetingoftheshareholdersofArcticCat.WeexpecttoexercisetheTopUpOption,subjecttothelimitationssetforthintheMergerAgreement,ifweacquiremorethanapproximately66.5%butlessthan90%oftheoutstandingSharesintheOffer.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"andSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.
How will my outstanding options, stock appreciation rights and RSUs be treated in the Offer and the Merger?
ThisOfferisbeingmadeforalloutstandingShares,butnotforanyoutstanding,unexercisedoptiontopurchaseShares("ArcticCatOption"),anyoutstandingstockappreciationrightrepresentingtherighttoreceiveapaymentincash("ArcticCatStockAppreciationRight")oranyoutstandingrestrictedstockunitwithrespecttoShares("ArcticCatRSU")(collectively,"ArcticCatEquityAwards").NoArcticCatOptions,ArcticCatStockAppreciationRightsorArcticCatRSUsmaybetenderedintheOffer.IfyouwishtotenderSharessubjecttoArcticCatOptions,ArcticCatStockAppreciationRightsorArcticCatRSUs,youmustfirstexercisethem(totheextentexercisable)inaccordancewiththeirtermsinsufficienttimetotendertheSharesreceivedintheOffer.
PursuanttothetermsoftheMergerAgreementandsubjecttotheconditionstherein:
• eachArcticCatEquityAwardthatisoutstandingandunvestedasoftheeffectivetimeoftheMerger,whichisthedateandtimeofthefilingofthearticlesofmergerwiththeSecretaryofStateofMinnesota,orsuchlatertimeasisspecifiedinthearticlesofmergerandisagreedtobyTextronandArcticCatinwriting(the"EffectiveTime"),willbecomefullyvestedandexercisableimmediatelypriortotheEffectiveTime;
• eachArcticCatOptionthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatislessthantheMergerConsideration,willbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceiveanamount,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,equaltotheproductof(i)theamountbywhichtheMergerConsiderationexceedstheapplicableexercisepriceperShareofsuchArcticCatOption,and(ii)theaggregatenumberofSharesissuableuponexerciseofsuchArcticCatOption;
• eachArcticCatStockAppreciationRightthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatislessthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceiveanamount,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,equaltotheproductof(i)theamountbywhichtheMergerConsiderationexceedstheapplicableexercisepriceperShareofsuchArcticCatStockAppreciationRight,and(ii)theaggregatenumberofSharessubjecttosuchArcticCatStockAppreciationRight;and
• eachArcticCatRSUthatisoutstandingasoftheEffectiveTimewillbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceiveanamount,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,equaltotheproductof(i)theMergerConsiderationand(ii)theaggregatenumberofSharessubjecttosuchArcticCatRSUaward.
10
EachArcticCatOptionthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatisgreaterthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimewithoutthepaymentofanyconsideration.EachArcticCatStockAppreciationRightthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatisgreaterthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimewithoutthepaymentofconsideration.
SeeSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.
What are the material United States federal income tax consequences of tendering my Shares?
ThereceiptofcashforSharespursuanttotheOfferortheMergerwillbeataxabletransactionforUnitedStatesfederalincometaxpurposes.Ingeneral,aU.S.holder(asdefinedinSection5—"MaterialUnitedStatesFederalIncomeTaxConsequences"ofthisOffertoPurchase)thatsellsSharespursuanttotheOfferorreceivescashinexchangeforSharespursuanttotheMergerwillrecognizegainorlossforUnitedStatesfederalincometaxpurposesequaltothedifference,ifany,betweentheamountofcashreceivedandsuchshareholder'staxbasisintheSharessoldorexchanged.Ingeneral,anon-U.S.holder(asdefinedinSection5—"MaterialUnitedStatesFederalIncomeTaxConsequences"ofthisOffertoPurchase)thatsellsSharespursuanttotheOfferorreceivescashinexchangeforSharespursuanttotheMergerwillnotbesubjecttoUnitedStatesfederalincometaxinrespectofsuchsaleofSharesorreceiptofcash,unlesssuchholderhascertainconnectionstotheUnitedStates.AsummaryofthematerialUnitedStatesfederalincometaxconsequencesoftheOfferandtheMergerisincludedinSection5—"MaterialUnitedStatesFederalIncomeTaxConsequences"ofthisOffertoPurchase.
You should consult your tax advisor about the tax consequences to you (including the application and effect of any state, local or foreign incomeand other tax laws) of participating in the Offer and the Merger in light of your particular circumstances. SeeSection5—"MaterialUnitedStatesFederalIncomeTaxConsequences"ofthisOffertoPurchase.
Will I have the right to have my Shares appraised?
Dissenters'rightsarenotavailableinconnectionwiththeOffer,andshareholdersofArcticCatwhotenderSharesintheOfferwillnothavedissenters'rightsinconnectionwiththeMerger.IftheMergerisconsummated,dissenters'rightswillbeavailabletoholdersofSharesatthetimeoftheMergerwhohavenottenderedtheirSharesintheOffer,demanddissenters'rightsfortheirSharesandotherwisecomplywiththeapplicablelegalrequirementsundertheMBCA.
TheforegoingsummaryoftherightsofdissentingshareholdersundertheMBCAdoesnotpurporttobeacompletestatementoftheprocedurestobefollowedbyshareholdersofArcticCatdesiringtoexerciseanyavailabledissenters'rightsundertheMBCAandisqualifiedinitsentiretybyreferencetotheMBCA.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"ofthisOffertoPurchase.
Who should I call if I have questions about the Offer? Where do I get additional copies of the Offer documents?
YoumaycallAllianceAdvisorsLLCat(973)873-7780(callcollect)ortoll-freeat(888)991-1293.AllianceAdvisorsLLCisactingastheInformationAgentfortheOffer.SeethebackcoverofthisOffertoPurchase.
11
To All Holders of Shares of Common Stock of Arctic Cat Inc.:
INTRODUCTION
AcesAcquisitionCorp.,aMinnesotacorporation("Purchaser"),isofferingtopurchasealloftheoutstandingsharesofcommonstock,parvalue$0.01pershare(the"ArcticCatCommonStock"orthe"Shares")ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthinthisoffertopurchase(asitmaybeamendedorsupplementedfromtimetotime,this"OffertoPurchase"),andintherelatedLetterofTransmittal(asitmaybeamendedorsupplementedfromtimetotime,the"LetterofTransmittal,"andtogetherwiththisOffertoPurchase,the"Offer").PurchaserisadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation,("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron").Textronisamulti-industrycompanywith2016revenuesof$13.8billionthatleveragesitsglobalnetworkofaircraft,defense,industrialandfinancebusinessestoprovidecustomerswithinnovativeproductsandservicesaroundtheworld.
TheOfferisbeingmadepursuanttotheAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat.UndertheMergerAgreement,followingthecompletionoftheOffer,uponthetermsandsubjecttotheconditionssetforthintheMergerAgreement,andinaccordancewiththeMinnesotaBusinessCorporationAct(the"MBCA"),PurchaserwillmergewithandintoArcticCat(the"Merger"),withArcticCatcontinuingasthesurvivingcorporationandanindirectwhollyownedsubsidiaryofTextron(the"SurvivingCompany").WhentheMergeriscompleted,eachSharethenoutstanding(otherthanSharesownedby(a)TextronorPurchaseroranyothersubsidiaryofTextronor(b)anyshareholderofArcticCatwhoisentitledtoandproperlydemandsandexercisesdissenters'rightswithrespecttosuchSharespursuantto,andcompliesinallrespectswith,theapplicableprovisionsofMinnesotalaw)willbeconvertedintotherighttoreceive$18.50,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.TheMergerAgreementisdescribedindetailinSection12(a)—"MergerAgreement"ofthisOffertoPurchase.
On January 23, 2017, each of the Arctic Cat Board of Directors (the " ArcticCatBoard") and, as required by the MBCA, a committee of disinteresteddirectors of the Arctic Cat Board (the " ArcticCatCommitteeofDisinterestedDirectors"), among other things, (i) determined that the Merger Agreementand the transactions contemplated thereby are advisable, fair to and in the best interests of Arctic Cat and its shareholders, (ii) approved and adopted theMerger Agreement and the transactions contemplated thereby, including the Offer and the Merger and (iii) recommended that Arctic Cat's shareholdersaccept the Offer and tender their Shares to Purchaser in the Offer and, if required to consummate the Merger, such shareholders approve and adopt theMerger Agreement and the Merger. Accordingly, and for other reasons described in more detail in Arctic Cat's Tender Offer Solicitation/RecommendationStatement on Schedule 14D-9 that is being filed with the United States Securities and Exchange Commission (the " SEC") and, together with this Offer toPurchase, the Letter of Transmittal and other related materials, mailed to the shareholders of Arctic Cat in connection with the Offer, the Arctic Cat Boardunanimously recommends that Arctic Cat's shareholders accept the Offer and tender their Shares to Purchaser pursuant to the Offer.
AmorecompletedescriptionoftheArcticCatBoard'sreasonsforauthorizingandapprovingtheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger,issetforthintheSchedule14D-9thatisbeingfiledwiththeSECand,togetherwiththisOffertoPurchase,theLetterofTransmittalandotherrelatedmaterials,mailedtotheshareholdersofArctic
12
CatinconnectionwiththeOffer.ShareholdersshouldcarefullyreadtheinformationsetforthintheSchedule14D-9initsentirety.
TenderingshareholdersofArcticCatwhohaveSharesregisteredintheirnamesandwhotenderdirectlytoWellsFargoBank,N.A.,thedepositaryfortheOffer(the"Depositary"),willnotbechargedbrokeragefeesorcommissionsor,subjecttoInstruction6oftheLetterofTransmittal,transfertaxesonthepurchaseofSharespursuanttotheOffer.ShareholderswhoholdtheirSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeshouldconsultwithsuchinstitutionastowhetheritchargesanyservicefeesorcommissions.However,ifaregisteredshareholderofArcticCatdoesnotcompleteandsigntheFormW-9thatisincludedintheLetterofTransmittalorotherwiseestablishesanexemption,heorshemaybesubjecttoarequiredbackupUnitedStatesfederalincometaxwithholding(currentlyatarateof28%)ofthegrossproceedspayabletosuchshareholder.SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.TextronwillpayallchargesandexpensesoftheDepositaryandAllianceAdvisorsLLC,theInformationAgent,incurredinconnectionwiththeOffer.SeeSection17—"FeesandExpenses"ofthisOffertoPurchase.
ThereisnofinancingconditiontotheOffer.TheOfferisconditionedupon,amongotherthings,(a)theabsenceofaterminationoftheMergerAgreementinaccordancewithitstermsand(b)thesatisfactionof(i)theMinimumCondition,(ii)theRegulatoryApprovalCondition,(iii)theGovernmentalAuthorityCondition,(iv)theRepresentationsCondition,(v)theCovenantsConditionand(vi)theMaterialAdverseEffectCondition,eachasdefinedbelow.The"MinimumCondition"requiresthatthenumberofSharesvalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOfferwhich,togetherwiththenumberofShares(ifany)thenbeneficiallyownedbyTextronorPurchaser,intheaggregate,orwithrespecttowhichTextronorPurchaserotherwisehas,directlyorindirectly,solevotingpower,representsatleastoneSharemorethan50%oftheFullyDilutedShares.PursuanttotheMergerAgreement,thesatisfactionoftheMinimumConditionwillbedeterminedwithouttreatingasvalidlytenderedSharestenderedviaguaranteeddeliveryproceduresunlesstheDepositaryhasreceivedallrequireditemsonaccountofsuchSharesinsettlementorsatisfactionofanysuchguaranteeatorpriortotheexpirationoftheOffer.
"FullyDilutedShares"meansalloutstandingsecuritiesentitledtovoteintheelectionofdirectorsofArcticCatorontheadoptionoftheMergerAgreementandapprovaloftheMerger,togetherwithallsuchsecuritieswhichArcticCatwouldberequiredorpermittedtoissueassumingtheconversionorexchangeofanythen-outstandingwarrants,options,securitiesorinstrumentsconvertibleorexchangeableinto,orrightsexercisablefor,suchsecurities,whetherornotthenconvertible,exchangeableorexercisable.
The"RegulatoryApprovalCondition"requiresthat(a)thewaitingperiodapplicabletotheconsummationoftheOfferundertheHSRActhasexpiredorbeenterminatedatorpriortotheExpirationDate(asdefinedbelow)and(b)anyconsent,approval,orotherauthorizationapplicabletotheconsummationoftheOfferundertheantitrustlawsofGermanyhasbeenreceivedorgranted.The"GovernmentalAuthorityCondition"requiresthatnogovernmentalauthorityofcompetentjurisdictionhasenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororder(whethertemporary,preliminaryorpermanent)thatisineffectandenjoinsorotherwiseprohibitsormakesillegaltheconsummationofthetransactionscontemplatedbytheMergerAgreementonthetermscontemplatedbytheMergerAgreement.The"RepresentationsCondition"requirestherepresentationsandwarrantiesmadebyArcticCatintheMergerAgreement,subjecttothematerialityandotherqualificationssetforthintheMergerAgreement,tobeaccurate.The"CovenantsCondition"requiresthatArcticCathasnotbreachedorfailedtoperformorcomply,inanymaterialrespect,withanyagreementorcovenanttobeperformedorcompliedwithbyitundertheMergerAgreementandanysuchbreachorfailureshallnothavebeencuredpriortotheExpirationDate.The"MaterialAdverseEffectCondition"requiresthat,sincethedateoftheMergerAgreement,
13
therehasnotoccurredaCompanyMaterialAdverseEffect(asdefinedinSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase).TheOfferalsoissubjecttocertainothertermsandconditions.SeeSection1—"TermsoftheOffer,"Section15—"ConditionsoftheOffer"andSection16—"LegalMatters;RequiredRegulatoryApprovals"ofthisOffertoPurchase.
ArcticCathasinformedPurchaserthat,asofJanuary31,2017,therewere(i)13,061,142Sharesissuedandoutstanding(includingalloutstandingrestrictedstockgrantedunderArcticCat'sstockplans),allofwhicharedulyauthorized,validlyissued,fullypaidandnon-assessableandwereissuedfreeofpreemptive(orsimilar)rights,(ii)noSharesheldbysubsidiariesofArcticCat,(iii)nosharesofpreferredstockissuedandoutstandingand(iv)1,095,296SharesreservedforfutureissuanceinconnectionwithawardsgrantedunderArcticCat'sstockplans(including915,540SharessubjecttooutstandingoptionsawardedunderArcticCat'sstockplans(ofwhich480,518haveexercisepricesbelowtheOfferPrice)and179,756SharessubjecttooutstandingrestrictedstockunitsgrantedunderArcticCat'sstockplans).NoneofTextron,Purchaseroranyoftheirrespectiveaffiliates(exceptforonedirectorofTextronwhoowns315SharesasdescribedinSection9—"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"ofthisOffertoPurchase)beneficiallyownsanyShares.Asaresult,assumingthatnoShares,optionstoacquireSharesoranyotherrightstoacquireSharesareissuedafterJanuary31,2017,theMinimumConditionwillbesatisfiedifatleast7,078,220Shares,whichrepresentonemoreSharethan50%oftheFullyDilutedShares,arevalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOffer.TheactualnumberofSharesrequiredtobevalidlytenderedandnotproperlywithdrawntosatisfytheMinimumConditionwilldependupontheactualnumberofFullyDilutedSharesofArcticCatonthedateandtimethatPurchaseracceptsforpaymentandpaysforanySharestenderedandnotwithdrawnpursuanttotheOffer(the"AcceptanceTime").
UponthetermsandsubjecttotheconditionsoftheOffer(including,iftheOfferisextendedoramended,thetermsandconditionsofanyextensionoramendment),PurchaserwillpurchaseallSharesvalidlytenderedandnotproperlywithdrawninaccordancewiththeproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchaseonorpriortotheexpirationoftheOffer.TheOfferwillexpireat5:00P.M.,NewYorkCitytime,onMarch3,2017,unlessPurchaser,underapplicablelawortheMergerAgreement,isrequiredto,orelectstoinitsorTextron'ssolediscretion,extendtheperiodoftimeforwhichtheinitialofferingperiodoftheOfferisopen.SeeSection1—"TermsoftheOffer"ofthisOffertoPurchaseforadescriptionofPurchaser'srightsandobligationswithrespecttoextensionsoftheOffer.
FollowingPurchaser'sacceptanceandpaymentforSharestenderedintheOffer,Purchaserwill,ifrequired,inordertoenableTextronandPurchasertoacquire,intheaggregate,atleast90%oftheSharesthenoutstanding,provideforone"subsequentofferingperiod"(asprovidedinRule14d-11undertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct"))ofnotlessthanthree(3)normorethantwenty(20)businessdays(the"SubsequentOfferingPeriod")asdeterminedinthesolediscretionofTextronandPurchaser.DuringtheSubsequentOfferingPeriod,allSharesthatarevalidlytenderedpursuanttotheOfferwillbeimmediatelyacceptedforpaymentbyPurchaser,andPurchaserwillimmediatelypayforsuchSharesattheOfferPrice.SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.
PursuanttotheMergerAgreement,ArcticCatgrantedtoPurchaseranirrevocableoption(the"TopUpOption")exercisableonlyaftertheacceptanceforpaymentofSharesintheOffer,topurchase,atapricepershareequaltotheOfferPrice,additionalShares(the"TopUpOptionShares")equaltothelowestnumberofSharesthat,whenaddedtothenumberofSharesowned,directlyorindirectly,byTextronandPurchaser,willconstituteoneSharemorethan90%oftheFullyDilutedShares(aftergivingeffecttotheissuanceoftheTopUpOptionShares).TheTopUpOptionisnotexercisableunlessimmediatelyaftersuchexerciseandtheissuanceoftheTopUpOptionShares,TextronandPurchaserwould,directlyorindirectly,hold,intheaggregate,atleast90%oftheoutstandingShares.
14
TheTopUpOptionisnotexercisableforanumberofSharesinexcessofArcticCat'stotalauthorizedandunissuedShares.TheTopUpOptionwillbeexercisableonce,tothefullnumberoftheTopUpOptionSharesthenpurchasableundertheTopUpOptiontoreachoneSharemorethan90%oftheFullyDilutedShares.PurchaserisrequiredtopaytheaggregateamountpayabletoArcticCatfortheTopUpOptionSharespurchaseduponexerciseoftheTopUpOptionthatwillbeequaltotheproductofthenumberofTopUpOptionSharesbeingsopurchaseduponsuchexerciseandtheOfferPrice(the"TopUpConsideration").TheTopUpConsiderationwillconsistof(i)anamountequaltotheparvalueoftheSharesissuedpursuanttotheTopUpOptionpayableincashand(ii)anamountequaltothebalanceoftheTopUpConsiderationpayablebycashorissuanceofapromissorynoteofPurchaseror,atPurchaser'selection,anycombinationofcashandapromissorynote.AnysuchpromissorynoteissuedbyPurchaser(i)willbearinterestattherateperannumequaltotheshort-termapplicablefederalrateonthedateofexecutionanddeliveryofsuchpromissorynote,payableinarrearsatmaturity,(ii)willmatureonthefirstanniversaryofthedateofexecutionanddeliveryofsuchpromissorynote,(iii)maybeprepaidwithoutpremiumorpenaltyand(iv)willhavenoothermaterialterms.PurchasermayexercisetheTopUpOptiononlyaftertheAcceptanceTime.ThepurposeoftheTopUpOptionistopermitPurchasertoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCAandwithoutconveningameetingoftheshareholdersofArcticCat.FollowingtheOffer,ifTextronandPurchaserwouldnotownatleast90%oftheoutstandingShares,avoteoftheshareholdersofArcticCatwillberequiredtoconsummatetheMerger.Insuchcase,theapprovaloftheMergeratameetingoftheshareholdersofArcticCatwouldbeassuredbecauseofPurchaser'sownershipofatleastoneSharemorethan50%oftheFullyDilutedSharesfollowingcompletionoftheOffer.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"andSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.
FollowingthecompletionoftheOffer,uponthetermsandsubjecttotheconditionssetforthintheMergerAgreement,andinaccordancewiththeMBCA,PurchaserwillmergewithandintoArcticCat,withArcticCatcontinuingastheSurvivingCompany.PursuanttotheMergerAgreement,attheeffectivetimeoftheMerger,whichisthedateandtimeofthefilingofthearticlesofmergerwiththeSecretaryofStateofMinnesota,orsuchlatertimeasisspecifiedinthearticlesofmergerandisagreedtobyTextronandArcticCatinwriting(the"EffectiveTime"),eachShareissuedandoutstandingimmediatelypriortotheEffectiveTime(otherthanSharesownedby(a)TextronorPurchaseroranyothersubsidiaryofTextronor(b)anyshareholderofArcticCatwhoisentitledtoandproperlydemandsandexercisesdissenters'rightswithrespecttosuchSharespursuantto,andcompliesinallrespectswith,theapplicableprovisionsofMinnesotalaw)willbeconvertedintotherighttoreceive$18.50pershareofArcticCatcommonstock(the"MergerConsideration"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.Section12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchasecontainsamoredetaileddescriptionoftheMergerAgreement.Section5—"MaterialUnitedStatesFederalIncomeTaxConsequences"ofthisOffertoPurchasedescribesthematerialUnitedStatesfederalincometaxconsequencesofthesaleofSharesintheOffer(includingtheSubsequentOfferingPeriod)andtheMerger.
ApprovaloftheMergerrequirestheaffirmativevoteofholdersofamajorityoftheoutstandingShares,unlesstheMergerisconsummatedasa"short-form"mergerinaccordancewithSection302A.621oftheMBCAasdescribedbelow.Asaresult,iftheMinimumConditionissatisfiedandtheotherconditionstotheOfferaresatisfiedor,totheextentpermittedbyapplicablelaw,waivedbyPurchaserandtheOfferiscompleted,PurchaserwillownasufficientnumberofSharestoensurethattheMergerwillbeapprovedbytheshareholdersofArcticCat.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"ofthisOffertoPurchase.
Section302A.621oftheMBCAprovidesthat,ifacorporationownsatleast90%oftheoutstandingsharesofeachclassofstockofasubsidiarycorporation,thecorporationholdingsuchstock
15
maymergesuchsubsidiaryintoitself,oritselfintosuchsubsidiary,withoutanyactionorvoteonthepartoftheboardofdirectorsortheshareholdersofsuchothercorporation.UponthetermsandsubjecttotheconditionsoftheMergerAgreement,intheeventthatPurchaseracquiresatleast90%ofthethen-outstandingSharespursuanttotheOfferandanysubsequentexerciseoftheTopUpOption,thepartieshaveagreedtotakeallnecessaryandappropriateactiontocausetheMergertobecomeeffectiveaspromptlyaspracticablewithoutameetingoftheshareholdersofArcticCatinaccordancewithSection302A.621oftheMBCA.SeeSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.
This Offer to Purchase and the related Letter of Transmittal contain important information that shareholders of Arctic Cat should read carefullybefore making any decision with respect to the Offer.
16
THE TENDER OFFER
1. Terms of the Offer
UponthetermsandsubjecttotheconditionsoftheOffer(including,iftheOfferisextendedoramended,thetermsandconditionsofanyextensionoramendment),PurchaserwillpurchaseallSharesvalidlytenderedandnotproperlywithdrawninaccordancewiththeproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase,onorpriortotheExpirationDate.The"ExpirationDate"is5:00P.M.,NewYorkCitytime,onMarch3,2017,unlesstheOfferisextendedpursuanttoandinaccordancewiththetermsoftheMergerAgreement,inwhichevent"ExpirationDate"willmeanthelatesttimeanddateatwhichtheOffer,assoextended,willexpire.
TheMergerAgreementprovidesthat,unlesstheMergerAgreementisterminated,Purchasermay,initssolediscretion,extendtheOfferforoneormoreperiodsofuptotwenty(20)businessdayseachif,atthethenscheduledExpirationDate,anyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasehavenotbeensatisfiedor,totheextentpermittedbyapplicablelaw,waivedbyTextronorPurchaser.TheMergerAgreementprovidesthatPurchaserwillalsoextendtheOfferforanyperiodrequiredbyanyapplicablelaworanyrule,regulation,interpretationorpositionoftheSECoritsstaffapplicabletotheOfferoranyoftherulesandregulations,includinglistingstandards,ofNASDAQoranyotherUnitedStatesnationalsecuritiesexchangeonwhichtheSharesarethentraded.UnlesstheOfferisterminatedinaccordancewiththeMergerAgreement,intheeventthatanyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearenotsatisfiedor,totheextentpermittedbyapplicablelaw,waivedbyTextronorPurchaserasofanythenscheduledexpirationoftheOfferandtheArcticCatBoardhasnoteffectedanAdverseRecommendationChange(asdefinedinSection12(a)—"MergerAgreement"ofthisOffertoPurchase),ArcticCatmay,initssolediscretionandbywrittennoticeatleasttwo(2)businessdayspriortothethenscheduledexpirationoftheOffer,requestthatPurchaserextendtheOfferforoneperiodoften(10)businessdays,untilalloftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearesatisfiedor,wherepermittedbyapplicablelaw,waivedbyTextronorPurchaser.SeeSection1—"TermsoftheOffer"ofthisOffertoPurchaseforadditionalinformationaboutPurchaser'sobligationstoextendtheOffer.InnoeventwillPurchaserberequiredtoextendtheOfferforanyreasonbeyondtheearliertooccurof(a)thedatetheMergerAgreementisterminatedor(b)May24,2017.
UndernocircumstanceswillinterestbepaidontheOfferPricefortenderedShares,regardlessofanyextensionoforamendmenttotheOfferoranydelayinpayingfortheShares.
TheOfferisconditionedupon,amongotherthings,thesatisfactionoftheMinimumCondition,theRegulatoryApprovalCondition,theGovernmentalAuthorityCondition,theRepresentationsCondition,theCovenantsConditionandtheMaterialAdverseEffectCondition.ConsummationoftheOfferisalsoconditioneduponthesatisfactionor,totheextentpermittedbyapplicablelaw,waiverofotherconditionssetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.
IntheeventthatPurchaserwaivesanyconditionsetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase,theSECmay,ifthewaiverisdeemedtoconstituteamaterialchangetotheinformationpreviouslyprovidedtoshareholdersofArcticCat,requirethattheOfferremainopenforanadditionalperiodoftimeandthatTextronandPurchaserdisseminateinformationconcerningsuchwaiver.PurchaseracknowledgesthatRule14e-1(c)undertheExchangeActrequiresPurchasertopaytheconsiderationofferedorreturntheSharestenderedpromptlyaftertheterminationorwithdrawaloftheOffer.
17
If,attheExpirationDate,alloftheconditionsoftheOfferhavebeensatisfiedor,totheextentpermittedbyapplicablelaw,waived,PurchaserwillacceptforpaymentandpromptlypayforSharestenderedtoPurchaserandnotproperlywithdrawnintheOffer.AfteracceptanceforpaymentofSharesintheOffer,ifTextronandPurchaserdonothold,intheaggregateand,ifapplicable,aftergivingeffecttothe"topupoption,"atleast90%oftheoutstandingSharestopermitPurchasertoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCA,thenPurchaserwillprovide,inaccordancewithRule14d-11undertheExchangeAct,theSubsequentOfferingPeriodofnotlessthanthree(3)normorethantwenty(20)businessdaysasdeterminedinthesolediscretionofTextronandPurchaser.TheSubsequentOfferingPeriod,ifitisprovided,willallowshareholdersofArcticCattotenderSharesaftertheExpirationDateandreceivethesameconsiderationthatwaspaidintheOffer.IntheSubsequentOfferingPeriod,SharesmaybetenderedintheOffer(butSharestenderedmaynotbewithdrawn)andPurchaserwillimmediatelyacceptandpromptlypayforSharesastheyaretendered.IntheeventthatitisnecessaryforPurchasertoprovidetheSubsequentOfferingPeriod,PurchaserwillprovideanannouncementtothateffectalongwiththeresultsoftheOffertoanationalnewsservicenolaterthan9:00A.M.,NewYorkCitytime,onthenextbusinessdayafterthepreviouslyscheduledExpirationDate.TheExpirationDatefortheOfferiscurrentlyscheduledfor5:00P.M.,NewYorkCitytime,onMarch3,2017.
TextronandPurchaserreservetherighttoincreasetheOfferPrice,waive(totheextentpermittedbyapplicablelaw),initssolediscretion,inwholeorinpart,anyconditiontotheOfferormakeanyotherchangesinthetermsandconditionsoftheOffer,except,unlessotherwisecontemplatedbytheMergerAgreementoraspreviouslyapprovedbyArcticCatinwriting,Purchaserisnotpermittedto:
• decreasetheOfferPrice;
• changetheformofconsiderationpayableintheOffer;
• reducethemaximumnumberofSharessoughttobepurchasedintheOffer;
• amendorwaivetheMinimumCondition;
• amendanyoftheotherconditionsandrequirementstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseinamannermateriallyadversetotheholdersofShares;or
• extendtheExpirationDateinamannerotherthaninaccordancewiththeMergerAgreement.
If,priortotheExpirationDate,PurchaserincreasestheOfferPriceofferedtoshareholdersofArcticCatintheOffer,PurchaserwillpaytheincreasedpricetoallshareholdersofArcticCatfromwhomPurchaserpurchasesSharesintheOffer,whetherornotSharesweretenderedbeforetheincreaseinprice.AsofthedateofthisOffertoPurchase,PurchaserhasnointentiontoincreasetheOfferPrice.
TherightsPurchaserreservesintheprecedingparagraphareinadditiontoitsrightspursuanttoSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.Anyextension,waiveroramendmentoftheOffer,delayinacceptanceforpaymentorpaymentfortheSharestenderedintheOffer,orterminationoftheOffer,willbefollowedaspromptlyaspracticablebypublicannouncementthereof,suchannouncement,inthecaseofanextension,tobemadenolaterthan9:00A.M.,NewYorkCitytime,onthenextbusinessdayafterthepreviouslyscheduledExpirationDate,inaccordancewiththepublicannouncementrequirementsofRule14e-1(d)undertheExchangeAct.Subjecttoapplicablelaw(includingRules14d-4(d)and14d-6(c)undertheExchangeAct,whichrequirethatmaterialchangesbepromptlydisseminatedtoshareholdersinamannerreasonablydesignedtoinformthemofsuchchanges),andwithoutlimitingthemannerinwhichPurchasermaychoosetomakeanypublicannouncement,Purchaserwillhavenoobligationtopublish,advertiseorotherwisecommunicateanypublicannouncementotherthanbyissuingapressreleasetoanationalnewsservice.Duringanysuch
18
extension,allSharespreviouslytenderedandnotproperlywithdrawnwillremainsubjecttotheOffer,subjecttotherightsofatenderingshareholdertowithdrawsuchshareholder'sShares.
IfPurchasermakesamaterialchangeinthetermsoftheOffer,orifPurchaserwaivesamaterialconditiontotheOffer,PurchaserwillextendtheOfferanddisseminateadditionaltenderoffermaterialstotheextentrequiredbyapplicablelawandtheapplicableregulationsoftheSEC.TheminimumperiodduringwhichtheOffermustremainopenfollowingmaterialchangesinthetermsoftheOffer,otherthanachangeinpriceorachangeinpercentageofsecuritiessought,dependsuponthefactsandcircumstances,includingthematerialityofthechanges.IntheSEC'sview,atenderoffershouldremainopenforaminimumoffive(5)businessdaysfromthedatethematerialchangeisfirstpublished,sentorgiventoshareholders,and,ifmaterialchangesaremadewithrespecttoinformationthatapproachesthesignificanceofpriceandthepercentageofsecuritiessought,aminimumoften(10)businessdaysmayberequiredtoallowforadequatedisseminationandinvestorresponse.Withrespecttoachangeinprice,aminimumten(10)businessdayperiodfromthedateofthechangeisgenerallyrequiredtoallowforadequatedisseminationtoshareholders.Accordingly,if,priortotheExpirationDate,PurchaserdecreasesthenumberofSharesbeingsought,orincreasesordecreasestheconsiderationofferedpursuanttotheOffer,andiftheOfferisscheduledtoexpireatanytimeearlierthantheperiodendingonthetenth(10th)businessdayfromthedatethatnoticeoftheincreaseordecreaseisfirstpublished,sentorgiventoshareholdersofArcticCat,PurchaserwillextendtheOfferatleastuntiltheexpirationofthatten(10)businessdayperiod.ForpurposesoftheOffer,a"businessday"meansanydayotherthanaSaturday,SundayoraUnitedStatesfederalholidayandconsistsofthetimeperiodfrom12:01A.M.through12:00midnight,NewYorkCitytime.
ArcticCathasprovidedTextronandPurchaserwithitsshareholderlistsandsecuritypositionlistingsforthepurposeofdisseminatingtheOffertoshareholdersofArcticCat.ThisOffertoPurchase,therelatedLetterofTransmittalandotherrelevantmaterialswillbemailedtorecordholdersofShares,andwillbefurnishedtobrokers,dealers,commercialbanks,trustcompaniesorothernomineeswhosenamesappearonthesecurityholderlistsor,ifapplicable,thatarelistedasparticipantsinaclearingagency'ssecuritypositionlisting,forforwardingtobeneficialownersofShares.
2. Acceptance for Payment and Payment for Shares
UponthetermsandsubjecttotheconditionsoftheOffer(including,ifPurchaserextendsoramendstheOffer,thetermsandconditionsoftheOfferassoextendedoramended)andtheapplicablerulesandregulationsoftheSEC,promptlyaftertheExpirationDate,Purchaserwillpurchase,byacceptingforpayment,andwillpayfor,allSharesvalidlytenderedandnotproperlywithdrawn(aspermittedbySection4—"WithdrawalRights"ofthisOffertoPurchase)priortotheExpirationDate.IfPurchaserincludestheSubsequentOfferingPeriod,PurchaserwillimmediatelyacceptandpromptlypayforSharesastheyaretenderedduringtheSubsequentOfferingPeriod.ForinformationwithrespecttoapprovalsthatTextronandPurchaserareormayberequiredtoobtainpriortothecompletionoftheOffer,seeSection16—"LegalMatters;RequiredRegulatoryApprovals"ofthisOffertoPurchase.
ForpurposesoftheOffer,Purchaserwillbedeemedtohaveacceptedforpayment,andtherebypurchased,Sharesvalidlytenderedandnotproperlywithdrawnas,ifandwhenPurchasergivesoralorwrittennoticetotheDepositaryofPurchaser'sacceptanceforpaymentofsuchSharespursuanttotheOffer.UponthetermsandsubjecttotheconditionsoftheOffer,paymentforSharesacceptedforpaymentpursuanttotheOfferwillbemadebydepositoftheOfferPricewiththeDepositary,whichwillactasagentfortenderingshareholdersofArcticCatforthepurposeofreceivingpaymentsfromPurchaserandtransmittingsuchpayments,lessanyapplicablewithholdingtax,toshareholdersofArcticCatwhoseShareshavebeenacceptedforpayment.IfPurchaserextendstheOffer,isdelayedinitsacceptanceforpaymentofSharesorisunabletoacceptSharesforpaymentpursuanttotheOffer
19
foranyreason,then,withoutprejudicetoPurchaser'srightsundertheOffer,theDepositarymay,nevertheless,onbehalfofPurchaser,retaintenderedShares,andsuchSharesmaynotbewithdrawnexcepttotheextentthattenderingshareholdersareentitledtowithdrawalrightsasdescribedunderSection4—"WithdrawalRights"ofthisOffertoPurchaseandasotherwiserequiredbyRule14e-1(c)undertheExchangeAct,whichrequiresthatPurchaserpaytheconsiderationofferedorreturnSharesdepositedbyoronbehalfoftenderingshareholderspromptlyafterthecompletionoftheOffer.
Under no circumstances will Purchaser pay interest on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment forShares.
Inallcases,PurchaserwillpayforSharespurchasedpursuanttotheOfferonlyaftertimelyreceiptbytheDepositaryof:(a)certificatesrepresentingtenderedShares("Certificates")ortimelyconfirmationofabook-entrytransferofsuchShares(a"Book-EntryConfirmation")intotheDepositary'saccountatTheDepositoryTrustCompany("DTC")pursuanttotheproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase;(b)aLetterofTransmittal(orafacsimilethereof),properlycompletedanddulyexecuted,withanyrequiredsignatureguaranteesoranAgent'sMessage(asdefinedbelow)inconnectionwithabook-entrytransfer;and(c)anyotherdocumentsrequiredbytheLetterofTransmittal.
Theterm"Agent'sMessage"meansamessagetransmittedbyDTCto,andreceivedby,theDepositaryandformingapartofaBook-EntryConfirmation,whichmessagestatesthatDTChasreceivedanexpressacknowledgmentfromtheparticipantinDTCtenderingtheSharesthatarethesubjectoftheBook-EntryConfirmationthattheparticipanthasreceivedandagreestobeboundbythetermsoftheLetterofTransmittalandthatPurchasermayenforcethatagreementagainsttheparticipant.
IfPurchaserdoesnotpurchaseanytenderedSharespursuanttotheOfferforanyreason,orifCertificatesrepresentingmoreSharesthanaretenderedaresubmitted,PurchaserwillreturnCertificatesrepresentingunpurchasedoruntenderedShares(or,inthecaseofSharesdeliveredbyBook-EntryConfirmationofatransferintotheDepositary'saccountatDTCpursuanttotheproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase,theShareswillbecreditedtoanaccountmaintainedwithinDTC),withoutexpense,aspromptlyaspracticablefollowingtheexpiration,terminationorwithdrawaloftheOffer.
3. Procedures for Accepting the Offer and Tendering Shares
Valid Tender of Shares. Exceptassetforthbelow,tovalidlytenderSharesintheOffer,theDepositarymustreceivetheLetterofTransmittal(orafacsimilethereof),properlycompletedandsigned,togetherwithanyrequiredsignatureguarantees,oranAgent'sMessageinconnectionwithabook-entrydeliveryofShares,andanyotherdocumentsrequiredbytheLetterofTransmittalatitsaddresssetforthonthebackcoverofthisOffertoPurchaseonorpriortotheExpirationDate,andeither(a)CertificatesrepresentingtenderedSharesmustbedeliveredtotheDepositaryorSharesmustbetenderedpursuanttotheprocedureforbook-entrytransfersetforthbelowandtheDepositarymustreceiveBook-EntryConfirmation,ineachcase,onorpriortotheExpirationDate,or(b)thetenderingshareholdermustcomplywiththeguaranteeddeliveryproceduressetforthbelow.
The method of delivery of the Letter of Transmittal, Certificates and all other required documents, including delivery through DTC, is at the optionand sole risk of the tendering shareholder, and delivery will be considered made only when the Depositary actually receives the Certificates, the Letter ofTransmittal and all other required documents. If delivery is by mail, registered mail with return receipt requested, properly insured, is encouraged andstrongly recommended. In all cases, sufficient time should be allowed to ensure timely delivery prior to the Expiration Date.
20
Book-Entry Transfer. TheDepositarywillmakearequesttoestablishanaccountwithrespecttotheSharesatDTCforpurposesoftheOfferwithintwo(2)businessdaysafterthedateofthisOffertoPurchase.AnyfinancialinstitutionthatisaparticipantinthesystemofDTCmaymakebook-entrydeliveryofSharesbycausingDTCtotransfertheSharesintotheDepositary'saccountatDTCinaccordancewithDTC'sprocedures(a"Book-EntryTransfer").AlthoughSharesmaybedeliveredthroughBook-EntryConfirmationofatransferintotheDepositary'saccountatDTC,theDepositarymustreceivetheLetterofTransmittal(orafacsimilethereof),properlycompletedandsigned,withanyrequiredsignatureguarantees,oranAgent'sMessageinconnectionwithabook-entrytransfer,andanyotherrequireddocuments,atoneofitsaddressessetforthonthebackcoverofthisOffertoPurchaseatorbeforetheExpirationDate,ortheguaranteeddeliveryproceduressetforthbelowmustbecompliedwith.
Delivery of documents to DTC in accordance with DTC's procedures does not constitute delivery to the Depositary.
ForSharestobevalidlytenderedduringtheSubsequentOfferingPeriod,ifany,theforegoingproceduresmustbecompliedwith,exceptthatrequireddocumentsandCertificatesmustbereceivedduringtheSubsequentOfferingPeriod.
ThetenderofSharespursuanttoanyoneoftheproceduresdescribedabovewillconstituteacceptanceoftheOffer,aswellasthetenderingshareholder'srepresentationandwarrantythatsuchshareholderhasfullpowerandauthoritytotenderandassigntheSharestendered,asspecifiedintheLetterofTransmittal.Purchaser'sacceptanceforpaymentofSharestenderedpursuanttotheOfferwillconstituteabindingagreementbetweenPurchaserandthetenderingshareholderuponthetermsandsubjecttotheconditionsoftheOffer.
Signature Guarantees. Abank,broker,dealer,creditunion,savingsassociationorotherentitythatisamemberingoodstandingoftheSecuritiesTransferAgentsMedallionProgramoranyother"eligibleguarantorinstitution"(asdefinedinRule17Ad-15undertheExchangeAct)(each,an"EligibleInstitution"andcollectively,"EligibleInstitutions")mustguaranteesignaturesonallLettersofTransmittal,unlesstheSharestenderedaretendered(a)byaregisteredholderofSharesthathasnotcompletedeithertheboxlabeled"SpecialPaymentInstructions"ortheboxlabeled"SpecialDeliveryInstructions"intheLetterofTransmittalor(b)fortheaccountofanEligibleInstitution.SeeInstruction1oftheLetterofTransmittal.
IfCertificatesareregisteredinthenameofapersonotherthanthesigneroftheLetterofTransmittal,orifpaymentistobemadeto,orCertificatesforunpurchasedSharesaretobeissuedorreturnedto,apersonotherthantheregisteredholder,thenthetenderedCertificatesmustbeendorsedoraccompaniedbyappropriatestockpowers,signedexactlyasthenameornamesoftheregisteredholderorholdersappearontheCertificates,withthesignaturesonsuchCertificatesorstockpowersguaranteedbyanEligibleInstitutionasprovidedintheLetterofTransmittal.SeeInstructions1and5oftheLetterofTransmittal.
IfCertificatesareforwardedseparatelytotheDepositary,aproperlycompletedanddulyexecutedLetterofTransmittal(orafacsimileoftheLetterofTransmittal)mustaccompanyeachdeliveryofCertificates.
Guaranteed Delivery. AshareholderwhodesirestotenderSharesintheOfferandwhoseCertificatesarenotimmediatelyavailableortimewillnotpermitallrequireddocumentstoreachtheDepositaryatorbeforetheExpirationDateortheproceduresforbook-entrytransfercannotbecompletedatorbeforetheExpirationDate,maytenderSharesbycomplyingwithallofthefollowingguaranteeddeliveryprocedures:
• suchtenderismadebyorthroughanEligibleInstitution;
21
• theDepositaryreceives,asdescribedbelow,aproperlycompletedandsignedNoticeofGuaranteedDeliveryatorbeforetheExpirationDate,substantiallyintheformmadeavailablebyPurchaser;and
• theDepositaryreceivesCertificates(oraBook-EntryConfirmation)representingalltenderedShares,inproperformfortransfertogetherwithaproperlycompletedanddulyexecutedLetterofTransmittal(orafacsimileoftheLetterofTransmittal),withanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent'sMessage)andanyotherdocumentsrequiredbytheLetterofTransmittalwithinthree(3)tradingdaysontheNASDAQafterthedateofexecutionoftheNoticeofGuaranteedDelivery.
DeliveryoftheNoticeofGuaranteedDeliverymaybemadebymailorfacsimiletransmissiontotheDepositary.TheNoticeofGuaranteedDeliverymustincludeaguaranteebyanEligibleInstitutionintheformsetforthintheNoticeofGuaranteedDelivery.
NotwithstandinganyotherprovisionoftheOffer,PurchaserwillpayforSharestenderedandacceptedforpaymentpursuanttotheOfferonlyaftertimelyreceiptbytheDepositaryof(a)CertificatesrepresentingsuchShares,orBook-EntryConfirmationofabook-entrytransferofsuchSharesintotheDepositary'saccountatDTC,(b)aproperlycompletedanddulyexecutedLetterofTransmittal(orfacsimileoftheLetterofTransmittal),togetherwithanyrequiredsignatureguarantees(or,inthecaseofabook-entrytransfer,anAgent'sMessage),and(c)anyotherdocumentsrequiredbytheLetterofTransmittal.Accordingly,paymentmightnotbemadetoalltenderingshareholdersofArcticCatatthesametime,andwilldependuponwhentheDepositaryreceivesCertificatesorBook-EntryConfirmationthatShareshavebeentransferredintotheDepositary'saccountatDTC.
Backup United States Federal Income Tax Withholding. Toavoidbackupwithholding,eachtenderingshareholderthatisaUnitedStatespersonforUnitedStatesfederalincometaxpurposesisrequiredtoprovidetheDepositarywiththeshareholder'scorrectTaxpayerIdentificationNumber("TIN"),generallytheshareholder'ssocialsecurityorfederalemployeridentificationnumber,ontheFormW-9,whichisprovidedunder"ImportantTaxInformation"below,or,alternatively,toestablishtothesatisfactionoftheDepositaryanadequatebasisforexemptionfrombackupwithholding.Atenderingshareholdermustcrossoutitem(2)inPartIIoftheFormW-9iftheshareholderhasbeennotifiedbytheInternalRevenueService(the"IRS")thatsuchshareholderissubjecttobackupwithholding.Inadditiontopotentialpenalties,failuretoprovidethecorrectinformationontheFormW-9maysubjectthetenderingshareholdertobackupUnitedStatesfederalincometaxwithholdingatacurrentrateof28%onthepaymentofthepurchasepricemadetosuchshareholder.IfthetenderingshareholderhasnotbeenissuedaTINandhasappliedforoneorintendstoapplyforoneinthenearfuture,suchshareholdershouldwrite"AppliedFor"inthespaceprovidedfortheTINinPartIoftheFormW-9,andsignanddatetheFormW-9.If"AppliedFor"iswritteninPartI,theDepositarywillwithhold28%fromanypaymentsofthepurchasepricetosuchshareholderuntilaTINisprovidedtotheDepositary.AtenderingshareholderthatisnotaUnitedStatespersonmayqualifyasanexemptrecipientbysubmittingtotheDepositaryaproperlycompletedFormW-8BEN,FormW-8BEN-E,FormW-8ECIorFormW-8IMY,asapplicable(whichtheDepositarywillprovideuponrequest)signedunderpenaltiesofperjury,attestingtothatshareholder'sexemptstatus.Suchshareholdershouldconsultataxadvisortodeterminewhichformisappropriate.
Backupwithholdingisnotanadditionaltax.AnyamountswithheldunderthebackupwithholdingrulesfrompaymentsmadetoashareholderofArcticCatmayberefundedorcreditedagainstsuchshareholder'sUnitedStatesfederalincometaxliability,ifany,providedthattherequiredinformationistimelyfurnishedtotheIRS.
Appointment as Proxy. ByexecutingtheLetterofTransmittal,thetenderingshareholderirrevocablyappointsPurchaser'sdesignees,andeachofthem,assuchshareholder'sagents,attorneys-in-factandproxies,withfullpowerofsubstitution,inthemannersetforthintheLetterof
22
Transmittal,tothefullextentofsuchshareholder'srightswithrespecttotenderedSharesthatPurchaseracceptsforpaymentandwithrespecttoanyandallotherSharesorrightsissuedorissuableinrespectofthoseSharesonorafterthedateofthisOffertoPurchase.AllsuchpowersofattorneyandproxieswillbeconsideredirrevocableandcoupledwithaninterestinthetenderedShares.ThisappointmentwillbeeffectivewhenPurchaseracceptstheSharesforpaymentinaccordancewiththetermsoftheOffer.Uponacceptanceforpayment,allotherpowersofattorneyandproxiesgivenbythetenderingshareholderwithrespecttosuchshareholder'sSharesorrightspriortosuchpaymentwillberevoked,withoutfurtheraction,andnosubsequentpowersofattorneyandproxiesmaybegivenbysuchshareholder(and,ifgiven,willnotbedeemedeffective).Purchaser'sdesigneeswill,withrespecttotheSharesandrightsforwhichtheappointmentiseffective,beempoweredtoexerciseallvotingandotherrightsofsuchshareholderasthey,intheirsolediscretion,maydeemproperatanyannualorspecialmeetingofshareholdersofArcticCat,oranyadjournmentorpostponementthereof,orbyconsentinlieuofanysuchmeetingofshareholdersofArcticCatorotherwise.InorderforSharestobedeemedvalidlytendered,immediatelyupontheacceptanceforpaymentofsuchShares,PurchaseroritsdesigneemustbeabletoexercisefullvotingrightswithrespecttoShares,includingvotingatanymeetingofshareholdersofArcticCat.
Determination of Validity. Allquestionsastotheformofdocumentsandthevalidity,eligibility(includingtimeofreceipt)andacceptanceforpaymentofanytenderofShareswillbedeterminedbyPurchaser,initssolediscretion.Purchaserreservestheabsoluteright,subjecttothetermsoftheMergerAgreementandapplicablelaw,torejectanyoralltendersdeterminedbyPurchasernottobeinproperformortheacceptanceoforpaymentforwhichmay,intheopinionofPurchaser'scounsel,beunlawful.PurchaseralsoreservestheabsoluterighttowaiveanyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase,excepttheMinimumCondition(whichwaiverrequiresArcticCat'spriorwrittenconsent)oranydefectorirregularityinanytenderofSharesofanyparticularshareholderofArcticCat,whetherornotsimilardefectsorirregularitiesarewaivedinthecaseofothershareholdersofArcticCat.AllquestionsastotheinterpretationofthetermsandconditionsoftheOfferwillbedeterminedbyPurchaser,initssolediscretion.NotenderofShareswillbedeemedtohavebeenvalidlymadeuntilalldefectsandirregularitieswithrespecttothetenderhavebeencuredorwaivedbyPurchaser.NoneofTextron,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgentoranyotherpersonorentitywillbeunderanydutytogiveanynotificationofanydefectsorirregularitiesintendersorincuranyliabilityforfailuretogiveanysuchnotification.
Shares held through the Arctic Cat 401(k) Plan. IfashareholderbeneficiallyholdsSharesthroughtheArcticCat401(k)Plan,theenclosedTenderOfferInstructionFormmustbecompletedandsigned.TheTenderOfferInstructionForminstructstheArcticCat401(k)PlanTrusteetotenderSharesintheOffer.TheTenderOfferInstructionFormmustbedeliveredtoWellsFargoBank,N.A.sufficientlyinadvanceoftheExpirationDate(andinanyeventnotlaterthanthree(3)businessdayspriortotheExpirationDate)toenableWellsFargoBank,N.A.andtheArcticCat401(k)PlanTrusteetocomplywiththeinstructionscontainedtherein.DetailedinstructionsarecontainedintheTenderOfferInstructionForm.PurchaserassumesnoresponsibilityfortheactionsoftheArcticCat401(k)PlanTrustee.
4. Withdrawal Rights
AshareholdermaywithdrawSharespreviouslytenderedintheOfferatanytimepriortotheExpirationDate(includinganyextensionofsuchtime).Thereafter,tendersofSharesareirrevocable.IfnotacceptedforpaymentasprovidedinthisOffertoPurchasepriortoApril27,2017,suchSharesmayalsobewithdrawnatanytimeafterApril27,2017.In the event Purchaser provides the Subsequent Offering Period following the Offer, no withdrawal rights will apply to Sharestendered
23
during such Subsequent Offering Period or to Shares tendered in the Offer and accepted for payment prior to the commencement of such SubsequentOffering Period.
If,foranyreason,acceptanceforpaymentofanySharestenderedintheOfferisdelayed,orPurchaserisunabletoacceptforpaymentorpayforSharestenderedintheOffer,then,withoutprejudicetoPurchaser'srightssetforthinthisOffertoPurchase,theDepositarymay,nevertheless,onPurchaser'sbehalf,retaintenderedShares,andsuchSharesmaynotbewithdrawn,excepttotheextentthatsuchshareholderisentitledtoandproperlyexerciseswithdrawalrightsasdescribedinthisSection4—"WithdrawalRights"ofthisOffertoPurchase.AnysuchdelaywillbebyanextensionoftheOffertotheextentrequiredbyapplicablelawandtherulesandregulationsoftheSEC.
Inorderforashareholder'swithdrawalofSharestobeeffective,suchshareholdermusttimelydeliverawrittenorfacsimiletransmissionnoticeofwithdrawaltotheDepositaryatoneofitsaddressesorfaxnumberssetforthonthebackcoverofthisOffertoPurchase.Anysuchnoticeofwithdrawalmustspecifysuchshareholder'sname,thenumberofSharesthatsuchshareholderwantstowithdraw,and,ifCertificateshavebeentendered,thenameoftheregisteredholderofSharesasshownontheCertificate,ifdifferentfromsuchshareholder'sname.IfCertificatesfortheSharestobewithdrawnhavebeendeliveredorotherwiseidentifiedtotheDepositary,then,priortothephysicalreleaseofCertificates,theserialnumbersshownontheparticularCertificatesevidencingSharestobewithdrawnmustbesubmittedtotheDepositaryandanEligibleInstitutionmustguaranteethesignaturesonthenoticeofwithdrawal,exceptinthecaseofSharestenderedfortheaccountofanEligibleInstitution.IfShareshavebeentenderedpursuanttotheproceduresforbook-entrytransfersetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase,thenoticeofwithdrawalmustspecifythenameandnumberoftheaccountatDTCtobecreditedwiththewithdrawnShares,inwhichcaseanoticeofwithdrawalwillbeeffectiveifdeliveredtotheDepositarybyanymethodofdeliverydescribedinthefirstsentenceofthisparagraph.
IfashareholderwhotenderedSharesthroughtheArcticCat401(k)PlanbygivinginstructionstoWellsFargoBank,N.A.wishestowithdrawSharesfromthetender,anupdatedTenderOfferInstructionFormmustbedeliveredtoWellsFargoBank,N.A.SuchinstructionsmustprovidesufficientnoticeinadvanceoftheExpirationDate(andinanyeventnotlaterthanthree(3)businessdayspriortotheExpirationDate)toenableWellsFargoBank,N.A.andtheArcticCat401(k)PlanTrusteetocomplywiththeinstructionscontainedtherein.
Allquestionsastotheformandvalidity(includingtimeofreceipt)ofnoticesofwithdrawalwillbedeterminedbyPurchaser,initssolediscretion.NoneofTextron,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgentoranyotherpersonorentitywillbeunderanydutytogiveanynotificationofanydefectsorirregularitiesinanynoticeofwithdrawalorincuranyliabilityforfailuretogiveanysuchnotification.
AwithdrawalofSharesmaynotberescinded.AnySharesthatareproperlywithdrawnwillbeconsiderednottohavebeenvalidlytenderedforpurposesoftheOffer,butsuchSharesmaybetenderedagainatanytimebeforetheExpirationDatebyfollowinganyoftheproceduresdescribedinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.
5. Material United States Federal Income Tax Consequences
ThefollowingisasummaryofthematerialUnitedStatesfederalincometaxconsequencesoftheOfferandtheMergerto"U.S.holders"and"non-U.S.holders"(eachasdefinedbelow)ofArcticCatCommonStockwhoseSharesaretenderedandacceptedforpaymentpursuanttotheOfferorwhoseSharesareconvertedintotherighttoreceivecashintheMerger.ThisdiscussionisforgeneralinformationonlyanddoesnotpurporttoconsiderallaspectsofUnitedStatesfederalincometaxationthatmightberelevanttoshareholdersofArcticCat.ThediscussionisbasedoncurrentprovisionsoftheInternalRevenueCodeof1986,asamended(the"Code"),theU.S.TreasuryRegulationspromulgatedthereunderandadministrativeandjudicialrulings,allofwhicharesubjecttochangeorvaryinginterpretation,possiblywithretroactiveeffect.
24
Forpurposesofthisdiscussion,theterm"U.S.holder"meansabeneficialowneroftheSharesthatis,forUnitedStatesfederalincometaxpurposes:
• anindividualcitizenorresidentoftheUnitedStates;
• acorporation(includinganyentitytreatedasacorporation)createdororganizedunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbia;
• anestatetheincomeofwhichissubjecttoUnitedStatesfederalincometaxregardlessofitssource;or
• atrustif(i)aUnitedStatescourtisabletoexerciseprimarysupervisionoverthetrust'sadministrationandoneormoreUnitedStatespersonsareauthorizedtocontrolallsubstantialdecisionsofthetrustor(ii)ithasavalidelectionineffectunderapplicableUnitedStatesTreasuryregulationstobetreatedasaUnitedStatesperson.
IfanentityorarrangementtreatedasapartnershipforUnitedStatesfederalincometaxpurposesholdsShares,thetaxtreatmentofapartnerinsuchpartnershipwillgenerallydependonthestatusofthepartnerandtheactivitiesofthepartnership.IfashareholderisapartnerofapartnershipholdingShares,suchshareholdershouldconsulttheirtaxadvisor.
A"non-U.S.holder"isabeneficialownerofsharesthatisnotaU.S.holderoranentityorarrangementtreatedasapartnershipforUnitedStatesfederalincometaxpurposes.
ThisdiscussionassumesthataholderholdstheSharesasacapitalassetwithinthemeaningofSection1221oftheCode(generally,propertyheldforinvestment).NorulinghasbeenorwillbesoughtfromtheIRS,andnoopinionofcounselhasbeenorwillberendered,astothetaxconsequencesoftheOfferandtheMerger.ThefollowingdoesnotaddressallaspectsofUnitedStatesfederalincometaxthatmightberelevanttoholdersinlightoftheirparticularcircumstancesorholdersthatmaybesubjecttospecialrules(including,withoutlimitation,dealersinsecuritiesorcurrencies,tradersinsecuritiesthatelectmark-to-markettreatment,financialinstitutions,insurancecompanies,mutualfunds,tax-exemptorganizations,holdersliableforthealternativeminimumtax,UnitedStatesexpatriates,U.S.holderswhosefunctionalcurrencyisnottheUnitedStatesdollar,holderswhoholdSharesaspartofahedge,straddle,constructivesaleorconversiontransactionorotherintegratedinvestment,holderswhoacquiredSharespursuanttotheexerciseofemployeestockoptionsorotherwiseascompensation,holderswhoactuallyorconstructivelyownmorethan5%ofArcticCatCommonStock,orholderswhoexercisedissenters'rights).Inaddition,thisdiscussiondoesnotaddressanyaspectofforeign,state,local,alternativeminimumestate,giftorothertaxlawthatmaybeapplicabletoaholder.
Tax matters are complicated, and the tax consequences of the Offer and the Merger depend on the shareholder's particular tax situation. Holders arestrongly urged to consult their tax advisor to determine the applicability of the rules discussed below and the particular tax consequences of the Offer andthe Merger, including the application and effect of any state, local and foreign tax laws and of changes to such laws.
U.S.Holders
TheexchangeofSharesforcashpursuanttotheOfferortheMergerwillbeataxabletransactionforUnitedStatesfederalincometaxpurposes.Ingeneral,aU.S.holderwhosellsSharespursuanttotheOfferorreceivescashinexchangeforSharespursuanttotheMergerwillrecognizegainorlossforUnitedStatesfederalincometaxpurposesinanamountequaltothedifference,ifany,betweentheamountofcashreceivedfortheSharesandtheU.S.holder'sadjustedtaxbasisintheSharessoldpursuanttotheOfferorexchangedforcashpursuanttotheMerger.GainorlosswillbedeterminedseparatelyforeachblockofShares(thatis,Sharesacquiredatthesamepricepershareinasingle
25
transaction)tenderedpursuanttotheOfferorexchangedforcashpursuanttotheMerger.Suchgainorlossgenerallywillbecapitalgainorloss,andwillbelong-termcapitalgainorlossiftheU.S.holder'sholdingperiodforsuchSharesismorethanone(1)yearatthetimeofconsummationoftheOfferortheMerger,asthecasemaybe.Long-termcapitalgainsrecognizedbyanon-corporateU.S.holdergenerallywillbeeligibleforpreferentialUnitedStatesfederalincometaxrates.CertainlimitationsapplytothedeductibilityofaU.S.holder'scapitallosses.Inaddition,certainnon-corporateU.S.holdersmaybesubjecttoanadditional3.8%Medicaresurtaxonalloraportionoftheir"netinvestmentincome,"whichmayincludealloraportionofthegainrecognizedinconnectionwiththeOfferortheMerger.
InformationreportingwillapplytopaymentsmadetoaU.S.holderwhoseSharesarepurchasedintheOfferorexchangedforcashpursuanttotheMergerandthepaymentsmaybesubjecttobackupUnitedStatesfederalincometaxwithholding(currentlyatarateof28%),unlesscertaininformationisprovidedtotheDepositaryoranexemptionapplies.SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.Backupwithholdingisnotanadditionaltax.AnyamountswithheldunderthebackupwithholdingrulescanberefundedorcreditedagainstaU.S.holder'sUnitedStatesfederalincometaxliability,ifany,providedthatsuchU.S.holderfurnishestherequiredinformationtotheIRSinatimelymanner.
Non-U.S.Holders
Anygainorlossrecognizedbyanon-U.S.holderupontheexchangeofSharesforcashpursuanttotheOfferortheMergergenerallywillnotbesubjecttoUnitedStatesfederalincometaxunless:
• thegainis"effectivelyconnected"withatradeorbusinessofthenon-U.S.holderintheUnitedStates(and,ifrequiredbyanapplicableincometaxtreaty,isattributabletoaUnitedStatespermanentestablishmentofthenon-U.S.holder);
• thenon-U.S.holderisanindividualwhoispresentintheUnitedStatesforonehundredeighty-three(183)daysormoreinthetaxableyearofthatdispositionandcertainotherconditionsaremet;or
• ArcticCatisorhasbeena"UnitedStatesrealpropertyholdingcorporation"forUnitedStatesfederalincometaxpurposesatanytimeduringtheshorterof(i)thefive-yearperiodendingonthedateoftheconsummationoftheOfferortheMerger,asapplicable,and(ii)thenon-U.S.holder'sholdingperiodintheShares,andthenon-U.S.holderowned(directly,indirectlyorconstructively)morethan5%ofArcticCatCommonStockatanytimeduringtheapplicableperiod.Althoughtherecanbenoassurancesinthisregard,ArcticCatdoesnotbelievethatitis,was,orwillbecomea"UnitedStatesrealpropertyholdingcorporation"forU.S.federalincometaxpurposesatanytimeduringthefive-yearperiodprecedingtheOfferortheMerger,asapplicable.
Anon-U.S.holderdescribedinthefirstbulletpointabovewillbesubjecttoUnitedStatesfederalincometaxonsuchgaininthesamemannerasaU.S.holder.Inaddition,anon-U.S.holderthatisacorporationmaybesubjecttoabranchprofitstaxonsucheffectivelyconnectedgain.Anon-U.S.holderdescribedinthesecondbulletpointabovewillbesubjecttoUnitedStatesfederalincometaxatarateof30%(orareducedrateunderanapplicableincometaxtreaty)ontheamountbywhichcapitalgainsallocabletoUnitedStatessources(includinggainrecognizedupontheexchangeofShares)exceedcapitallossesallocabletoUnitedStatessources.
Informationreportingand,dependingonthecircumstances,backupwithholdingwillapplytothecashreceivedintheOfferortheMerger,unlessthebeneficialownercertifiesunderpenaltyofperjurythatitisanon-U.S.holder(andthepayerdoesnothaveactualknowledgeorreasontoknowthatthebeneficialownerisaUnitedStatespersonasdefinedundertheCode)orsuchownerotherwise
26
establishesanexemption.SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"ofthisOffertoPurchase.Backupwithholdingisnotanadditionaltaxandanyamountswithheldunderthebackupwithholdingrulesmayberefundedorcreditedagainstanon-U.S.holder'sUnitedStatesfederalincometaxliability,ifany,providedthattherequiredinformationistimelyprovidedtotheIRS.
Shareholders of Arctic Cat are urged to consult their tax advisor with respect to the specific tax consequences to them for participating in the Offer, theSubsequent Offering Period (if one is provided) and the Merger, including United States federal, state, local and foreign tax consequences.
6. Price Range of the Shares; Dividends
TheSharesaretradedontheNASDAQunderthesymbol"ACAT."Thefollowingtablesetsforth,fortheperiodsindicated,thehighandlowtradingpricesperShareontheNASDAQasreportedbypublishedfinancialsources:
AccordingtoitsAnnualReportonForm10-KforthefiscalyearendedMarch31,2016(the"ArcticCat201610-K")filedwiththeSEC,theArcticCatBoardconsidersArcticCat'scashpositionandprojectedcashneedsinregardstoArcticCat'sdividendpolicy.TheArcticCat201610-Kstatedthat,inJanuary2016,theArcticCatBoardvotedtosuspendArcticCat'squarterlycashdividendinordertopreservecashforcontinuedinvestmentinArcticCat'sgrowthinitiatives.Furthermore,theArcticCat201610-KstatedthatwhiletheArcticCatBoardhasdiscretiontoresumepaymentofcashdividendsatanytime,itdoesnotanticipatedeclaringorpayingcashdividendsonArcticCat'scommonstockintheforeseeablefuture.
ArcticCatdeclaredandpaidaggregatecashdividendsof$4.9millionand$6.5millioninfiscal2016and2015respectively.In2016,ArcticCatpaiddividendsof$1,635,000inthefirstquarter,$1,640,000inthesecondquarterand$1,642,000inthethirdquarter.In2015,ArcticCatpaiddividendsof$1,617,000inthefirstquarter,$1,624,000inthesecondquarter,$1,624,000inthethirdquarterand$1,635,000inthefourthquarter.
UnderthetermsoftheMergerAgreement,ArcticCatisnotpermittedtodeclare,setaside,makeorpaydividendswithrespecttotheShareswithouttheconsentofTextronexceptforcertainexceptionspermittedundertheMergerAgreement.Inaddition,undertheSecondAmendedandRestatedLoanandSecurityAgreement,datedasofNovember29,2016,amongArcticCat,certainsubsidiariesofArcticCat,BankofAmerica,N.A.,asAgent,andcertainlenderspartythereto,(the"ExistingCreditAgreement"),ArcticCatisrestrictedfromdeclaringorpayingdividendsifitsborrowingundertheExistingCreditAgreementexceedscertainthresholds.
27
High Low Fiscal 2015 FourthQuarter $ 39.72 $ 26.00 Fiscal 2016 FirstQuarter $ 39.00 $ 30.75SecondQuarter 34.44 22.15ThirdQuarter 25.60 15.44FourthQuarter 19.82 8.90
Fiscal 2017 FirstQuarter $ 18.39 $ 12.91SecondQuarter 18.97 13.54ThirdQuarter 17.89 12.13FourthQuarter(throughJanuary31,2017) 19.60 12.78
OnJanuary24,2017,thelastfulldayoftradingpriortotheannouncementoftheexecutionoftheMergerAgreement,thereportedclosingpriceontheNASDAQfortheShareswas$13.09perShare.OnJanuary31,2017,thelatestpracticablefulldayoftradingpriortothecommencementoftheOffer,thereportedclosingpriceontheNASDAQfortheShareswas$18.80perShare.Shareholders of Arctic Cat are urged to obtain current market quotations for the Shares.
7. Possible Effects of the Offer on the Market for the Shares; NASDAQ Listing; Exchange Act Registration; Margin Regulations
Possible Effects of the Offer on the Market for the Shares. ThepurchaseofSharespursuanttotheOfferwillreducethenumberofSharesthatmightotherwisetradepublicly,willadverselyaffecttheliquidityofandcouldadverselyaffectthemarketvalueoftheremainingSharesheldbythepublic.ThepurchaseofSharespursuanttotheOfferalsocanbeexpectedtoreducethenumberofholdersofShares.TextronandPurchasercannotpredictwhetherthereductioninthenumberofSharesthatmightotherwisetradepubliclywouldhaveanadverseorbeneficialeffectonthemarketpriceforormarketabilityoftheSharesorwhetheritwouldcausefuturemarketpricestobegreaterorlessthantheOfferPrice.
NASDAQ Listing. DependingonthenumberofSharespurchasedpursuanttotheOffer,theSharesmayceasetomeettherequirementsforcontinuedlistingontheNASDAQ.AccordingtothepublishedguidelinesoftheNASDAQStockMarketLLC,asecuritymusthaveaminimumbidpriceof$1.00,theremustbeatleast400beneficialholdersand/orholdersofrecordandthesecuritymustmeetoneofthreemaintenancestandardsforcontinuedlistingontheNASDAQ.Thefirstmaintenancestandardrequiresthattherebeatleast$10millioninshareholders'equity,atleast750,000publiclyheldshares,amarketvalueofatleast$5millionforallpubliclyheldsharesandatleasttworegisteredandactivemarketmakersfortheshares.Thesecondmaintenancestandardrequiresthatthemarketvalueoflistedsecuritiesisatleast$50million,thereareatleast1.1millionpubliclyheldshareswithanaggregatemarketvalueofatleast$15millionandatleastfourregisteredandactivemarketmakersfortheshares.Thethirdmaintenancestandardrequiresthattheissuer'stotalassetsandtotalrevenueeachareatleast$50millionforthemostrecentlycompletedfiscalyearortwoofthethreemostrecentlycompletedfiscalyears,thereareatleast1.1millionpubliclyheldshareswithanaggregatemarketvalueofatleast$15millionandatleastfourregisteredandactivemarketmakersfortheshares.Shareshelddirectlyorindirectlybydirectors,officersorbeneficialownersofmorethan10%oftheSharesarenotconsideredtobepubliclyheldforthepurposeofthemaintenancestandards.
If,asaresultofthepurchaseofSharesintheOfferorotherwise,theSharesnolongermeettherequirementsoftheNASDAQforcontinuedlistingandthelistingoftheSharesisdiscontinued,themarketfortheSharescouldbeadverselyaffected.
Exchange Act Registration. TheSharescurrentlyareregisteredundertheExchangeAct.ThepurchaseoftheSharespursuanttotheOffermayresultintheSharesbecomingeligibleforderegistrationundertheExchangeAct.RegistrationoftheSharesmaybeterminateduponapplicationbyArcticCattotheSECiftheSharesarenotlistedona"nationalsecuritiesexchange"andtherearefewerthan300recordholdersofShares.TerminationofregistrationoftheSharesundertheExchangeActwouldreducetheinformationthatArcticCatisrequiredtofurnishtotheshareholdersofArcticCatandtheSECandwouldmakecertainprovisionsoftheExchangeAct,suchastheshort-swingprofitrecoveryprovisionsofSection16(b)oftheExchangeActandtherequirementsoffurnishingaproxystatementinconnectionwithshareholders'meetingspursuanttoSection14(a)or14(c)oftheExchangeActandtherelatedrequirementofanannualreport,nolongerapplicabletoArcticCat.IftheSharesceasetoberegisteredundertheExchangeAct,therequirementsofRule13e-3promulgatedundertheExchangeActwithrespectto"goingprivate"transactionswouldnolongerbeapplicabletoArcticCat.Inaddition,theabilityof"affiliates"ofArcticCatandpersonsholding"restrictedsecurities"ofArcticCattodisposeofthesecuritiespursuanttoRule144promulgatedunderthe
28
SecuritiesActof1933,asamended,maybeimpairedor,withrespecttocertainpersons,eliminated.IfregistrationoftheSharesundertheExchangeActwereterminated,theShareswouldceasetobe"marginsecurities"and,asindicatedabove,maynolongerbeavailableforquotationontheNASDAQ.TextronandPurchaserbelievethatthepurchaseoftheSharespursuanttotheOffermayresultintheSharesbecomingeligibleforderegistrationundertheExchangeAct,anditisPurchaser'sintentiontocauseArcticCattomakeanapplicationforterminationofregistrationoftheSharesassoonaspossibleaftersuccessfulcompletionoftheOfferiftheSharesaretheneligiblefortermination.IfregistrationoftheSharesisnotterminatedpriortotheMerger,thenTextronandPurchaserintendtoterminatetheregistrationoftheSharesundertheExchangeActpromptlyfollowingtheconsummationoftheMerger.
Margin Regulations. TheSharesarecurrently"marginsecurities"undertheregulationsoftheBoardofGovernorsoftheFederalReserveSystem(the"FederalReserveBoard"),whichregulationshavetheeffect,amongotherthings,ofallowingbrokerstoextendcreditonthecollateraloftheSharesforthepurposeofbuying,carryingortradinginsecurities("PurposeLoans").DependinguponfactorssuchasthenumberofrecordholdersofSharesandthenumberandmarketvalueofpubliclyheldShares,followingthepurchaseofSharespursuanttotheOffer,theSharesmightnolongerconstitute"marginsecurities"forpurposesoftheFederalReserveBoard'smarginregulations,and,therefore,couldnolongerbeusedascollateralforPurposeLoansmadebybrokers.Inaddition,asindicatedabove,ifregistrationoftheSharesundertheExchangeActwereterminated,theShareswouldnolongerconstitutemarginsecurities.
8. Certain Information Concerning Arctic Cat
Exceptasotherwisesetforthherein,theinformationconcerningArcticCatcontainedinthisOffertoPurchasehasbeenfurnishedbyArcticCatoritsrepresentativesortakenfromorbaseduponpubliclyavailabledocumentsandrecordsonfilewiththeSECandotherpublicsources.NoneofTextron,Purchaseroranyoftheirrespectiveaffiliates,theInformationAgentortheDepositaryassumesanyresponsibilityfortheaccuracyoftheinformationconcerningArcticCatcontainedinsuchdocumentsandrecordsorforanyfailurebyArcticCattodiscloseeventswhichmayhaveoccurredormayaffectthesignificanceoraccuracyofanysuchinformationbutwhichareunknowntoTextron,Purchaseroranyoftheirrespectiveaffiliates,theInformationAgentortheDepositary.
General. ArcticCatisaMinnesotacorporationwithitsprincipalexecutiveofficeslocatedat500North3rdStreet,Minneapolis,Minnesota55401,anditstelephonenumberis(612)350-1800.ThefollowingdescriptionofArcticCatanditsbusinesshasbeentakenfromtheArcticCat201610-K,andisqualifiedinitsentiretybyreferencethereto.ArcticCatdesigns,engineers,manufacturesandmarketssnowmobiles,all-terrainvehiclesandrecreationaloff-highwayvehicles,aswellasrelatedparts,garmentsandaccessoriesundertheArcticCatandMotorFistbrandnames.ArcticCatmarketsitsproductsthroughanetworkofindependentdealerslocatedthroughouttheUnitedStates,Canada,andEuropeandthroughdistributorsrepresentingdealersinEurope,Russia,SouthAmerica,theMiddleEast,China,Asiaandotherinternationalmarkets.TheArcticCatbrandnamehasexistedformorethan50yearsandisamongthemostwidelyrecognizedandrespectednamesinthesnowmobile,all-terrainvehiclesandrecreationaloff-highwayvehiclesindustry.
Available Information. TheSharesareregisteredundertheExchangeAct.Accordingly,ArcticCatissubjecttotheinformationreportingrequirementsoftheExchangeActand,inaccordancetherewith,isrequiredtofileperiodicreports,proxystatementsandotherinformationwiththeSECrelatingtoitsbusiness,financialconditionandothermatters.Suchreports,proxystatementsorotherinformationmaybereadorcopiedattheSEC'spublicreferenceroomat100FStreet,N.E.,Washington,D.C.20549.PleasecalltheSECat1-800-SEC-0330forfurtherinformationonthepublicreferenceroom.Copiesofsuchinformationmaybeobtainablebymail,uponpaymentoftheSEC'scustomary
29
charges,bywritingtotheSECattheaddressabove.TheSECalsomaintainsawebsiteontheInternetatwww.sec.gov thatcontainsreports,proxystatementsandotherinformationregardingregistrants,includingArcticCat,thatfileelectronicallywiththeSEC.
ShareholdersareencouragedtoreviewArcticCat'sSchedule14D-9carefullyandinitsentiretybeforedecidingwhethertotenderShares.
9. Certain Information Concerning Textron, Textron Specialized Vehicles and Purchaser
TextronisaDelawarecorporationwithitsprincipalexecutiveofficeslocatedat40WestminsterStreet,Providence,RhodeIsland02903anditstelephonenumberis(401)421-2800.Textronisamulti-industrycompanywith2016revenuesof$13.8billionthatleveragesitsglobalnetworkofaircraft,defense,industrialandfinancebusinessestoprovidecustomerswithinnovativeproductsandservicesaroundtheworld.Textronconductsitsbusinessthroughfiveoperatingsegments:TextronAviation,Bell,TextronSystems,IndustrialandFinance.Textron'ssharesarelistedontheNewYorkStockExchange.
TextronSpecializedVehiclesisaDelawarecorporationwithitsprincipalexecutiveofficeslocatedat1451MarvinGriffinRoad,Augusta,Georgia30906,anditstelephonenumberis(706)798-4311.TextronSpecializedVehiclesisadirectwhollyownedsubsidiaryofTextronwhichoperateswithinTextron'sIndustrialsegment.TextronSpecializedVehicles—whichincludestheE-Z-GO,TextronOffRoad,Jacobsen,Cushman,DixieChopper,Ransomes,TUGTechnologies,DouglasEquipment,PremierandSafeaerobusinessesandbrands—designs,manufacturesandsellsgolfcars,off-roadutilityvehicles,lighttransportationvehicles,aviationgroundsupportequipmentandprofessionalturf-maintenanceequipment,aswellasspecializedturf-carevehicles.
Purchaser'sprincipalexecutiveofficesarelocatedat1451MarvinGriffinRoad,Augusta,Georgia30906,anditstelephonenumberis(706)798-4311.PurchaserisanewlyformedMinnesotacorporationandadirectwhollyownedsubsidiaryofTextronSpecializedVehicles.PurchaserwasformedforthepurposeofmakingtheOfferandhasnotconducted,anddoesnotexpecttoconduct,anybusinessotherthaninconnectionwithitsorganization,theOfferandtheMerger.
Thename,businessaddressandbusinesstelephonenumber,citizenship,presentprincipaloccupationoremploymentandmaterialoccupations,positions,officesoremploymentheldduringthepastfive(5)yearsofeachdirectorandexecutiveofficerofTextron,TextronSpecializedVehiclesandPurchaseraresetforthinScheduleItothisOffertoPurchase.
NoneofTextron,TextronSpecializedVehicles,Purchaseroranymajority-ownedsubsidiaryofTextron,TextronSpecializedVehiclesorPurchaser,or,totheknowledgeofTextron,TextronSpecializedVehiclesandPurchaser,anyofthepersonslistedinScheduleItothisOffertoPurchaseoranyassociateofanyofthepersonssolisted,beneficiallyownsorhasarighttoacquireanySharesoranyotherequitysecuritiesofArcticCat,otherthan315Shares,orlessthan1%ofthetotalSharesoutstandingasofJanuary17,2017,beneficiallyownedbyJamesZiemer,amemberoftheTextronboardofdirectors.NoneofTextron,TextronSpecializedVehicles,Purchaseroranymajority-ownedsubsidiaryofTextron,TextronSpecializedVehiclesorPurchaser,or,totheknowledgeofTextron,TextronSpecializedVehiclesandPurchaser,anyofthepersonslistedinScheduleItothisOffertoPurchaseoranyassociateofanyofthepersonssolisted,haseffectedanytransactionintheSharesoranyotherequitysecuritiesofArcticCatduringthepastsixty(60)days.NoneofTextron,TextronSpecializedVehiclesorPurchaseror,totheknowledgeofTextron,TextronSpecializedVehiclesandPurchaser,anyofthepersonslistedinScheduleItothisOffertoPurchase,hasanycontract,arrangement,understandingorrelationshipwithanyotherpersonwithrespecttoanysecuritiesofArcticCat(including,butnotlimitedto,anycontract,arrangement,understandingorrelationshipconcerningthetransferorthevotingofanysuchsecurities,jointventures,loanoroptionarrangements,putsorcalls,guarantiesofloans,guarantiesagainstloss,orthegivingorwithholdingofproxies,consentsorauthorizations).ExceptasdescribedinthisOffertoPurchase,sinceFebruary2,
30
2015,therehavebeennotransactionsthatwouldrequirereportingundertherulesandregulationsoftheSECamongTextron,TextronSpecializedVehicles,Purchaseroranyoftheirrespectivesubsidiariesor,totheknowledgeofTextron,TextronSpecializedVehiclesandPurchaser,anyofthepersonslistedinScheduleItothisOffertoPurchase,ontheonehand,andArcticCatoranyofitsexecutiveofficers,directorsoraffiliates,ontheotherhand.ExceptasdescribedinthisOffertoPurchase,sinceFebruary2,2015,therehavebeennocontacts,negotiationsortransactionsamongTextron,TextronSpecializedVehicles,Purchaseroranyoftheirrespectivesubsidiariesor,totheknowledgeofTextron,TextronSpecializedVehiclesandPurchaser,anyofthepersonslistedinScheduleItothisOffertoPurchase,ontheonehand,andArcticCatoranyofitssubsidiariesoraffiliates,ontheotherhand,concerningamerger,consolidationoracquisition,atenderofferorotheracquisitionofsecurities,anelectionofdirectorsorasaleorothertransferofamaterialamountofassets.
NoneofTextron,TextronSpecializedVehicles,PurchaseroranyofthepersonslistedinScheduleItothisOffertoPurchasehas,totheknowledgeofTextron,TextronSpecializedVehiclesorPurchaser,duringthepastfive(5)years,beenconvictedinacriminalproceeding(excludingtrafficviolationsorsimilarmisdemeanors).NoneofTextron,TextronSpecializedVehicles,PurchaseroranyofthepersonslistedinScheduleItothisOffertoPurchasehas,totheknowledgeofTextron,TextronSpecializedVehiclesorPurchaser,duringthepastfive(5)years,beenapartytoanyjudicialoradministrativeproceeding(exceptformattersthatweredismissedwithoutsanctionorsettlement)thatresultedinajudgment,decreeorfinalorderenjoiningthepersonfromfutureviolationsof,orprohibitingactivitiessubjectto,UnitedStatesfederalorstatesecuritieslaws,orafindingofanyviolationofUnitedStatesfederalorstatesecuritieslaws.
Available Information. PursuanttoRule14d-3undertheExchangeAct,Textron,TextronSpecializedVehiclesandPurchaserfiledwiththeSECaTenderOfferStatementonScheduleTO(the"ScheduleTO"),whichthisOffertoPurchaseformsapartthereof,andexhibitstotheScheduleTOandsuchdocumentsareavailabletothepublicovertheInternetattheSEC'swebsiteatwww.sec.gov.TheScheduleTOandtheexhibitsthereto,andsuchreportsorotherinformation,alsomaybereadorcopiedattheSEC'spublicreferenceroomat100FStreet,N.E.,Washington,D.C.20549.PleasecalltheSECat1-800-SEC-0330forfurtherinformationonthepublicreferenceroom.Thiswebsiteaddressisnotintendedtofunctionasahyperlink,andtheinformationcontainedontheSEC'swebsiteisnotincorporatedbyreferenceinthisOffertoPurchaseanditshouldnotbeconsideredtobeapartofthisOffertoPurchase.
10. Background of the Offer; Past Contacts or Negotiations with Arctic Cat
ThefollowingisadescriptionofthematerialcontactsbetweenrepresentativesofTextron,TextronSpecializedVehiclesorPurchaserwithrepresentativesofArcticCatthatresultedintheexecutionoftheMergerAgreementandtheOffer.ForareviewofArcticCat'sactivitiesrelatingtothesecontacts,pleaserefertoArcticCat'sSolicitation/RecommendationStatementonSchedule14D-9beingmailedtoshareholderswiththisOffertoPurchase.
Textron'smanagementteam,underthedirectionofitsboardofdirectors,regularlyevaluatesavarietyofstrategicobjectivesforTextron,includingproductdevelopmentandpotentialacquisitionsandcommercialtransactions.Inrecentyears,TextronhasincreaseditsfocusonthepowersportsindustrythroughacquisitionsandinvestmentinitsnewTextronOffRoadproductline.Infurtheranceofthisobjective,duringameetingoftheTextronboardofdirectorsonFebruary24,2016,ScottC.Donnelly,Chairman,PresidentandChiefExecutiveOfficerofTextron,presentedinformationconcerningapotentialacquisitionofArcticCatinordertoexpandTextron'spresenceinthepowersportsindustry.Followingsuchdiscussion,theTextronboardofdirectorsauthorizedTextron'smanagementtocontinuetomonitorArcticCatasapotentialtargetforanacquisitionanddeterminewhether,howandwhentoapproachArcticCat.
31
InlateMay2016,Mr.DonnellycontactedChristopherT.Metz,PresidentandChiefExecutiveOfficerofArcticCat,toinformMr.MetzthatTextronwasincreasingitsinvestmentinthepowersportsmarketandwasinterestedinacquiringArcticCat.Mr.DonnellyandMr.Metzdidnotdiscusspriceorvaluationinconnectionwithapotentialacquisition.
InearlyJune2016,Mr.DonnellyandMr.MetzhadatelephonicconversationduringwhichMr.MetzstatedthathehaddiscussedTextron'sinterestinacquiringArcticCatwiththeArcticCatBoardandadvisedMr.DonnellythattheArcticCatBoarddidnotbelievethatitwastheappropriatetimeforittoengageindiscussionswithTextronwithregardtosuchatransaction.Inresponse,Mr.DonnellyconfirmedTextron'scontinuinginterestinacquiringArcticCat,butMr.Donnellydidnotindicateaspecificpriceorvaluationinconnectionwithapotentialacquisition.
OnJuly26,2016,duringameetingoftheTextronboardofdirectors,Mr.DonnellyprovidedanupdatetotheothermembersoftheTextronboardofdirectorsregardinghisdiscussionswithMr.MetzthathadoccurredsincetheFebruary24,2016Textronboardmeeting.Atthismeeting,Mr.DonnellyinformedtheothermembersoftheTextronboardofdirectorsthat,withtheboard'sconcurrence,heintendedtosubmittoMr.Metzawrittennon-bindingindicationofinterestproposinganacquisitionofArcticCatbyTextron,includingapreliminaryvaluation,subjectto,amongotherthings,duediligenceandthenegotiationofadefinitiveacquisitionagreement.TheTextronboardofdirectorsconcurredwithMr.Donnelly'sintentiontosubmitanon-bindingindicationofinteresttoacquireArcticCat.
OnAugust16,2016,Mr.DonnellyandMr.MetzhadatelephonicconversationduringwhichMr.DonnellyreiteratedTextron'sinterestinacquiringArcticCatandinformedMr.MetzthatTextronwouldbesubmittingawrittennon-bindingindicationofinterest,basedonArcticCat'spubliclyavailableinformation,proposinganacquisitionofArcticCatbyTextronatapurchasepriceof$20.00perShareincash,reflectinga27%premiumovertheclosingpriceofArcticCatcommonstockonAugust15,2016.Onthesameday,Mr.DonnellysentTextron'swrittennon-bindingindicationofinteresttoMr.Metz.
OnAugust30,2016,Mr.DonnellyandMr.MetzmetinMinneapolis,MinnesotatodiscussTextron'sstrategicinterestinapotentialacquisitionofArcticCat.
FollowingameetingofArcticCat'sboardofdirectorsonSeptember19,2016,Mr.MetzcalledMr.DonnellytolethimknowthatArcticCathasagreedtoengageinexploratoryduediligencebasedonTextron'snon-bindingindicationofinterest.
OnOctober6,2016,TextronandArcticCatenteredintoaconfidentialityagreementpursuanttowhichArcticCatwouldfurnishnon-publicinformationtoTextronsolelyforthepurposeofevaluatingandnegotiatingapotentialtransactionbetweenTextronandArcticCat.Theconfidentialityagreementcontaineda"standstill"infavorofArcticCat,whichgenerallyprohibitedTextronfrommakingpublicproposalstoacquireArcticCat,acquiringArcticCatsecuritiesortakingsimilaractions.
OnOctober11,2016,membersoftheseniormanagementofTextronattendedanin-personmanagementpresentationbyArcticCatinMinneapolis,Minnesota,whichpresentationincludedadiscussionofcertainfinancialforecastsofArcticCat.
Followingthismanagementpresentation,betweenOctober2016andJanuary2017,TextronperformedduediligenceonArcticCat,includingsubmittinganinitialduediligencerequestlisttoArcticCatonOctober13,2016,andholdingtelephonicdiscussionswithrepresentativesofArcticCat.Duringthistimeperiod,representativesofTextron,ChristopherJ.Eperjesy,ChiefFinancialOfficerofArcticCat,andrepresentativesofRobertW.Baird&Co.Incorporated("Baird")heldtelephonicmeetingstodiscussthefinancialforecastsofArcticCatinmoredetail.
OnDecember6,2016,theTextronboardofdirectorsreceivedanupdatefromMr.Donnellyregardingprogressto-dateonthepotentialacquisitionofArcticCatbyTextron.Followingsuch
32
discussion,theTextronboardofdirectorsauthorizedMr.DonnellytocontinuediscussionswithArcticCatregardingapotentialacquisition.
OnDecember7,2016,Mr.DonnellyspokebytelephonewithMr.MetztoconfirmTextron'scontinuedinterestinacquiringArcticCatatapurchasepriceof$20.00perShareincash.
OnDecember16,2016,atthedirectionofArcticCat,arepresentativeofBairdheldatelephonicdiscussionwithMr.DonnellyduringwhichtherepresentativeofBairdinformedMr.DonnellythatArcticCatbelievedthatTextronneededtosubmitanimprovednon-bindingindicationofinterest,withahigherofferprice.
OnDecember22,2016,ArcticCatdisclosedtoTextronArcticCat'spreliminaryviewofitsfinancialresultsforthethirdquarterofthe2017fiscalyear.
OnDecember23,2016,Textrondeliveredarevisedwrittennon-bindingindicationofinteresttoacquireArcticCatforapurchasepriceof$21.00perShareincash,subjecttoduediligence.Thisletteralsoproposedcertainkeytermsandconditionsoftheproposedtransaction,includingaterminationfeeequalto4%oftheequityvalueofthetransaction,customarynon-solicitationprovisionswithacustomaryfiduciaryoutandcustomaryclosingconditions.Thenon-bindingindicationofinterestalsonotedthattheproposedtransactionwouldnotbesubjecttoanyfinancingcontingency.
DuringthelastweekofDecember2016,Textronand,atthedirectionoftheArcticCatBoard,BairdnegotiatedcertainofthekeytermsandconditionsinTextron'sDecember23,2016writtennon-bindingindicationofinterest,inparticularthenon-solicitationandfiduciaryoutprovisions,andagreedtolowertheterminationfeeto3%oftheequityvalueofthetransaction.OnJanuary1,2017,TextronprovidedArcticCatwithadrafttermsheetregardingnon-solicitationprovisionstobeincludedintheMergerAgreement.
OnDecember29,2016,TextrondeliveredtoArcticCataproposedagendaforamoredetailedmanagementpresentationandadetailedduediligencerequestlist.
OnJanuary9,2017,membersoftheseniormanagementofTextronanditsSpecializedVehiclesbusinessattendedanin-personmanagementpresentationbyArcticCatinMinneapolis,Minnesota,withrepresentativesofBairdpresent,duringwhichtherepresentativesofArcticCatprovidedTextron'srepresentativeswithadetailedoverviewofArcticCatandanupdateonrecentbusinessactivities.Inaddition,ontheafternoonofJanuary9andmorningofJanuary10,therewereseparatebreakoutsessionsoncertainfinancialandlegalduediligencetopics,includingadetaileddiscussionofArcticCat'sfinancialstatementsandforecastsaswellasongoinglitigationandregulatorymatters.OnJanuary10,representativesofTextronandrepresentativesofArcticCatvisitedArcticCat'soperatingfacilitiesinThiefRiverFallsandSt.Cloud.
FromJanuary10toJanuary16,2017,representativesofTextron,representativesofArcticCat,andrepresentativesofBairdcontinuedtoconductduediligencethroughfollowuptelephonicmeetingsandinformationexchangesonvariousfinancialandoperationalmatters.OnJanuary17,2017,representativesofArcticCatprovidedrepresentativesofTextronwithanupdateonArcticCat'sfiscalthirdquarter2017preliminaryresults,describingrevenueandearningsbelowArcticCat'sforecastprovidedtoTextrononDecember22,2016.
OnJanuary13,2017,Shearman&SterlingLLP("Shearman&Sterling"),legalcounseltoTextron,deliveredadraftoftheMergerAgreementtoFredrikson&Byron,P.A.("Fredrikson&Byron"),legalcounseltoArcticCat,andBaird.Fredrikson&ByronsentreviseddraftsoftheMergerAgreementtoShearman&SterlingonJanuary15and17,2017,reflectingArcticCat'scomments.DiscussionsandnegotiationsamongrepresentativesofTextronandShearman&SterlingandrepresentativesofArcticCatandFredrikson&ByroncontinueduntilthesigningoftheMergerAgreementinthelateafternoononJanuary24,2016,andrepresentativesofShearman&Sterlingandrepresentativesof
33
Fredrikson&ByronexchangednumerousreviseddraftsoftheMergerAgreementandArcticCat'sdisclosureschedulesduringthistime.
OnJanuary19,2017,Mr.DonnellycontactedarepresentativeofBairdtoreiterateTextron'sinterestinacquiringArcticCatbutcommunicatingthatinlightofArcticCat'sfiscalthirdquarter2017preliminaryresults,Textronwasreducingitsofferfrom$21.00perShareincashto$18.00perShareincash,withnootherchangestomaterialtransactionterms.DiscussionsandnegotiationsbetweenrepresentativesofTextronand,atthedirectionoftheArcticCatBoard,representativesofBairdcontinuedonJanuary19and20,2017,resultinginanagreedofferpriceof$18.50perShareincash.
OnJanuary20,2017,theTextronboardofdirectorsmetviateleconferencewithcertainmembersofTextron'smanagement.Atthismeeting,Textron'smanagementprovidedtheTextronboardofdirectorswithanupdateontheproposedtransaction.Textron'smanagementreviewedthepotentialbenefitsoftheproposedtransactionandreportedonthestatusofnegotiationswithArcticCatandtheproposedfinaltermsoftheMergerAgreement.Atthismeeting,theTextronboardofdirectorsunanimously(i)approvedtheproposedacquisitionofArcticCatonsubstantiallytheterms,andsubjecttotheconditions,presentedtotheTextronboardofdirectors,(ii)approvedtheMergerAgreement,onsubstantiallythetermsdescribedtotheTextronboardofdirectors,(iii)approvedtheconsummationofthetransactionscontemplatedbytheMergerAgreement,and(iv)authorizedtheofficersofTextrontoexecutetheMergerAgreementwithsuchchanges,additions,modificationsandamendmentsthereto,astheofficerofTextronexecutinganddeliveringtheMergerAgreementshallapprove.
DuringthelateafternoononJanuary23,2017,ArcticCatcommunicatedtoBaird,whoatthedirectionofArcticCatnotifiedTextron,thattheArcticCatBoardhadunanimouslyapprovedthetransactionsubjecttofinalizingtheMergerAgreement.
DuringthelateafternoononJanuary24,2017,representativesofTextronandShearman&SterlingandFredrikson&ByronfinalizedthenegotiationoftheMergerAgreement,andTextronandArcticCatenteredintotheMergerAgreement.
TextronincludedtheannouncementoftheexecutionoftheMergerAgreementinitsfourthquarterearningsreleaseonJanuary25,2017,andArcticCatissuedapressreleaseannouncingtheexecutionoftheMergerAgreementonJanuary25,2017.
Contacts and Transactions with Arctic Cat
AsofthedateofthisOffertoPurchase,TextronandPurchaserhavenotenteredintoanyagreement,arrangementorunderstandingwithanymembersofArcticCatmanagementregardingemploymentorconsultancywiththeSurvivingCompany.TextronandPurchasermayseektoretaincertainmembersoftheArcticCatmanagementteamfollowingconsummationoftheOfferandtheMerger.Aspartoftheseretentionefforts,TextronandPurchasermayenterintoemploymentorconsultancy,compensation,retention,severanceorotheremployeeorconsultantbenefitarrangementswithArcticCatexecutiveofficersandotherkeyArcticCatemployees;however,therecanbenoassurancethatanypartieswillreachanagreement.Anysucharrangementswouldbesubjecttonegotiationanddiscussion,andnotermsorconditionshavebeendiscussed,agreeduponorfinalized.AnysuchnewarrangementswouldnotbecomeeffectiveuntiltheconsummationoftheMerger.SeeSection11—"PurposeoftheOffer;PlansforArcticCat;OtherMatters"ofthisOffertoPurchase.
11. Purpose of the Offer; Plans for Arctic Cat; Other Matters
(a)Purpose of the Offer. ThepurposeoftheOfferandtheMergeristoacquirecontrolof,andtheentireequityinterestin,ArcticCat.TheOffer,asthefirststepintheacquisitionofArcticCat,isintendedtofacilitatetheacquisitionofalloftheShares.ThepurposeoftheMergeristoacquireallcapitalstockofArcticCatnotpurchasedpursuanttotheOfferorotherwise.
34
IfPurchaserpurchasesSharespursuanttotheOffer,TextronisentitledandcurrentlyintendstoexerciseitsrightsundertheMergerAgreementtoobtainproratarepresentationon,andcontrolof,theArcticCatBoard.SeeSection12—"MergerAgreement;OtherAgreements—ArcticCatBoardofDirectors."
(b)Plans for Arctic Cat. Exceptasotherwiseprovidedherein,itisexpectedthat,initiallyfollowingtheMerger,thebusinessandoperationsofArcticCatwillbecontinuedsubstantiallyastheyarecurrentlybeingconducted.FollowingtheMerger,ArcticCatwillbeawhollyownedsubsidiaryofTextronSpecializedVehiclesandanindirectwhollyownedsubsidiaryofTextron.TextronwillcontinuetoevaluatethebusinessandoperationsofArcticCatduringthependencyoftheOfferandaftertheconsummationoftheOfferandtheMergerandwilltakesuchactionsasitdeemsappropriateunderthecircumstancesthenexisting.Thereafter,TextronintendstoreviewsuchinformationaspartofacomprehensivereviewofArcticCat'sbusiness,operations,capitalizationandmanagementwithaviewtooptimizingdevelopmentofArcticCat'spotentialinconjunctionwiththeexistingbusinessesofTextron.AttheAcceptanceTime,TextronintendstopayoffanyoutstandingindebtednessundertheExistingCreditAgreement.
TheRestatedArticlesofIncorporationofArcticCatasineffectasofthedateoftheMergerAgreementwillbeamendedintheirentiretytoreadthesameasthearticlesofincorporationofPurchaserimmediatelypriortotheEffectiveTime,exceptthatthenameoftheSurvivingCompanywillbe"ArcticCatInc."andassoamendedwillbethearticlesofincorporationoftheSurvivingCompany.TheAmendedandRestatedBylawsofArcticCatasineffectasofthedateoftheMergerAgreementwillbeamendedintheirentiretytoreadthesameasthebylawsofPurchaserimmediatelypriortotheEffectiveTime,andassoamendedwillbethebylawsoftheSurvivingCompany.ThedirectorsofPurchaserimmediatelypriortotheEffectiveTimewill,fromandaftertheEffectiveTime,betheinitialdirectorsoftheSurvivingCompany.TheofficersofArcticCatimmediatelypriortotheEffectiveTime,fromandaftertheEffectiveTime,willbetheinitialofficersoftheSurvivingCompany.
(c)Shareholder Approval. UndertheMBCAandArcticCat'sorganizationaldocuments,theapprovaloftheArcticCatBoard(whichhasbeenobtained)isrequiredfortheadoptionoftheMergerAgreementandtheconsummationoftheMerger,andtheaffirmativevoteoftheholdersofamajorityoftheoutstandingShares,votingtogetherasasingleclass,isrequiredtoadoptandapprovetheMergerAgreementandtheMerger,unlessthe"short-form"mergerisavailable.ArcticCathasrepresentedintheMergerAgreementthattheexecutionanddeliveryoftheMergerAgreementbyArcticCatandtheconsummationbyArcticCatofthetransactionscontemplatedbytheMergerAgreementhavebeendulyandvalidlyauthorizedbyallnecessarycorporateactiononthepartofArcticCat,subjecttotheadoptionoftheMergerAgreementbytheaffirmativevoteoftheholdersofamajorityoftheoutstandingShares,ifrequiredinaccordancewiththeMBCAandArcticCat'sorganizationaldocuments.ArcticCathasfurtherrepresentedthattheapprovaldescribedintheprecedingsentenceistheonlyshareholdervoterequiredtoadopttheMergerAgreementandconsummatetheMerger.AfterPurchaseracceptsforpaymentSharesvalidlytenderedintheOfferandaftertheexpirationoftheSubsequentOfferingPeriod,ifPurchaserownslessthan90%oftheoutstandingSharesentitledtovoteontheadoptionoftheMergerAgreementandtheTopUpOptionisnotavailabletobeexercised,Textron,PurchaserandArcticCathaveagreedtoseektocompletetheMergerusinga"long-form"mergerstructureandArcticCathasagreed,ifnecessary,tosetarecorddatefor,callandgivenoticeofaspecialmeetingofitsshareholderstoconsiderandtakeactionupontheMergerAgreementandtoconveneandholdsuchmeeting.Thespecialmeetingwouldbeheldaspromptlyaspracticablethereafter.
(d)Dissenters' Rights. Dissenters'rightsarenotavailableinconnectionwiththeOffer,andshareholdersofArcticCatwhotenderSharesintheOfferwillnothavedissenters'rightsinconnectionwiththeMerger.IftheMergerisconsummated,ashareholderofArcticCatwhohasnottenderedhis,heroritsSharesintheOfferwillhavecertainrightsunderSections302A.471and302A.473ofthe
35
MBCAtodissentfromtheMergerandobtainpaymentincashforthe"fairvalue"ofthatshareholder'sShares.Thoserights,ifthestatutoryproceduresarecompliedwith,couldleadtoajudicialdeterminationofthefairvalue(immediatelypriortotheEffectiveTime)requiredtobepaidincash,plusinterest,lessanyrequiredwithholdingtaxes,todissentingshareholdersofArcticCatfortheirShares.AnysuchjudicialdeterminationofthefairvalueoftheShareswouldnotnecessarilyincludeanyelementofvaluearisingfromtheaccomplishmentorexpectationoftheMergerandcouldbebaseduponconsiderationsotherthanorinadditiontotheconsiderationperSharetobepaidintheMergerandthemarketvalueoftheShares,includingassetvaluesandtheinvestmentvalueoftheShares.Moreover,ArcticCatmayargueinsuchajudicialproceedingthat,forpurposesofthatproceeding,thefairvalueoftheSharesislessthanthepriceperSharepaidpursuanttotheOfferortheconsiderationperSharepayableintheMerger,andthejudiciallydeterminedvaluecouldbemoreorlessthanthepriceperSharepaidpursuanttotheOfferortheconsiderationperSharepayableintheMerger.HoldersofSharesshouldnotethatinvestmentbankingopinionsastothefairness,fromafinancialpointofview,oftheconsiderationpayableinasaletransaction,suchasthetransactionscontemplatedbytheOfferandtheMerger,arenotopinionsasto,anddonotinanymanneraddress,fairvalueundertheMBCA.UnderSubdivision4ofSection302A.471oftheMBCA,acompanyshareholder'srightswithrespecttotheMergerarelimitedtothedissenters'rightsprovidedunderSections302A.471and302A.473oftheMBCA.Acompanyshareholderhasnoright,atlaworinequity,tosetasidetheapprovaloftheMergerortheconsummationoftheMerger,unlesstheadoptionorconsummationwasfraudulentwithrespecttothatshareholderorArcticCat.IfanydemandforfairvalueismadeofDissentingShares(asdefinedbelow)andtheTopUpOptionwasexercisedpriortotheEffectiveTime,thenforpurposesofdeterminingthefairvalueofanyDissentingShares,thecashreceivedand/orvalueofthepromissorynotereceivedbyArcticCatinpaymentoftheexercisepriceoftheTopUpOptionwillbetreatedasifithadnotbeenpaidtoorreceivedbyArcticCatandtheSharesissueduponexerciseoftheTopUpOptionwillbetreatedasiftheywerenotissuedoroutstanding.
AnySharesthatareissuedandoutstandingimmediatelypriortotheEffectiveTimeandthatareheldbyaholderwhohasnotvotedtheseSharesinfavoroftheMergerandwhohasproperlyexerciseddissenters'rightswithrespecttotheseSharesinaccordancewiththeMBCA(includingSections302A.471and302A.473thereof)and,asoftheEffectiveTime,hasneithereffectivelywithdrawnnorotherwiselostforanyreasontherighttoexercisethesedissenters'rights,willnotbeconvertedintoorrepresentarighttoreceivetheconsiderationpayableintheMerger.TheholdersofDissentingShareswillbeentitledtoonlythoserightsgrantedbySections302A.471and302A.473oftheMBCA.IfanyshareholderofArcticCatwhoassertsdissenters'rightswithrespecttothatshareholder'sSharesundertheMBCAeffectivelywithdrawsorotherwiselosesforanyreason(includingfailuretoperfect)thesedissenters'rights,thenasoftheEffectiveTimeortheoccurrenceofsuchevent,whicheverlateroccurs,theholder'sShareswillautomaticallybecanceledandconvertedintoandrepresentonlytherighttoreceivetheconsiderationpayableintheMerger,withoutinterestandlessanyrequiredwithholdingtaxes,uponsurrenderofthesharecertificateorsharecertificatesformerlyrepresentingtheDissentingShares.
The preservation and exercise of dissenters' rights requires strict adherence to the applicable provisions of the MBCA. Failure to fully and preciselyfollow the steps required by Sections 302A.471 and 302A.473 of the MBCA for the perfection of dissenters' rights will result in the loss of those rights. Theforegoing summary of the rights of dissenting shareholders under the MBCA is not a complete statement of the procedures to be followed by shareholdersdesiring to exercise any dissenters' rights available under the MBCA and is qualified in its entirety by reference to Sections 302A.471 and 302A.473 of theMBCA, which will be set forth in their entirety in the proxy statement to be filed by Arctic Cat related to the adoption of the Merger Agreement by theshareholders of Arctic Cat, unless the Merger is consummated as a "short-form" merger pursuant to Section 302A.621 of the MBCA, in which case they willbe set forth in the notice of merger.
36
Dissenters' rights cannot be exercised at this time. The information set forth above is for informational purposes only with respect to alternativesavailable to shareholders if the Merger is consummated. Shareholders who will be entitled to dissenters' rights in connection with the Merger will receiveadditional information concerning dissenters' rights and the procedures to be followed before these shareholders have to take any action relating todissenters' rights.
EachShareoutstandingimmediatelypriortotheEffectiveTimeandheldofrecordorbeneficiallybyapersonwhohasnotvotedinfavorofapprovalandadoptionoftheMergerAgreementandwhoisentitledtodemandandproperlyexercisesdissenters'rightswithrespecttosuchShares("DissentingShares")willnotbeconvertedintotherighttoreceivetheMergerConsideration,andwillinsteadrepresenttherighttoreceivepaymentofthefairvalueofsuchDissentingSharesinaccordancewithandtotheextentprovidedbySections302A.471and302A.473.
Ifadissentingshareholderfailstoperfectorotherwisewaives,withdrawsorlosesitsrighttoadeterminationof"fairvalue"ofitsSharesunderSections302A.471and302A.473orotherapplicablelaw,thentherightofthatdissentingshareholdertobepaidthefairvalueofsuchDissentingShareswillceaseandsuchDissentingShareswillbedeemedtohavebeenconverted,asoftheEffectiveTime,intoandwillbeexchangeablesolelyfortherighttoreceivetheMergerConsideration,withoutinterest,uponsurrenderofsuchshareholder'sCertificatesorBook-EntryShares(asdefinedbelow)inthemannerprovidedintheMergerAgreement.
Withrespecttoanydemandfordissenters'rightsofSharesunderSections302A.471and302A.473:
• ArcticCatwillgivepromptnoticetoPurchaserofanydemandsfordissenters'rightsofanyShares,attemptedwithdrawalsofsuchdemandsandanyotherinstrumentsservedpursuanttotheMBCAreceivedbyArcticCatrelatingtorightstobepaidforthefairvalueofDissentingShares;
• ArcticCathasagreedtogivePurchasertherighttoparticipateinallnegotiationsandproceedingswithrespecttosuchdemandsfordissenters'rights;and
• priortotheEffectiveTime,ArcticCatwillnot,exceptwithPurchaser'spriorwrittenconsent,voluntarilymakeanypaymentwithrespectto,orsettleorcompromiseoroffertosettleorcompromise,anysuchdemands,orapproveanywithdrawalofsuchdemands,oragreetodoanyoftheforegoing.
(e)"Going Private" Transactions. TheSEChasadoptedRule13e-3promulgatedundertheExchangeAct("Rule13e-3"),whichisapplicabletocertain"goingprivate"transactionsandwhichmay,undercertaincircumstances,beapplicabletotheMerger.However,Rule13e-3wouldbeinapplicableif(i)theSharesarederegisteredundertheExchangeActpriortotheMergerorotherbusinesscombinationor(ii)theMergerorotherbusinesscombinationisconsummatedwithinone(1)yearafterthepurchaseoftheSharespursuanttotheOfferandtheamountpaidperShareintheMergerorotherbusinesscombinationisatleastequaltotheamountpaidperShareintheOffer.TextronandPurchaserbelievethatRule13e-3willnotbeapplicabletotheMergerbecauseitisanticipatedthattheMergerwillbeeffectedwithinone(1)yearfollowingtheconsummationoftheOfferand,intheMerger,theshareholdersofArcticCatwillreceivethesamepriceperShareaspaidintheOffer.Ifapplicable,Rule13e-3requires,amongotherthings,thatcertainfinancialinformationconcerningthefairnessoftheproposedtransactionandtheconsiderationofferedtominorityshareholdersinthetransactionbefiledwiththeSECanddisclosedtoshareholderspriortotheconsummationofthetransaction.
37
12. Merger Agreement; Other Agreements
(a) Merger Agreement .
ThefollowingisasummaryofcertainprovisionsoftheMergerAgreement.ThissummarydoesnotpurporttobecompleteandisqualifiedinitsentiretybyreferencetotheMergerAgreementitself,whichPurchaserhasfiledasanexhibittothisScheduleTO.CopiesoftheMergerAgreementandthisScheduleTO,andanyotherfilingsthatTextronorPurchasermakeswiththeSECwithrespecttotheOfferortheMerger,maybeobtainedinthemannersetforthinSection9—"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"ofthisOffertoPurchase.ShareholdersofArcticCatandotherinterestedpartiesshouldreadtheMergerAgreementinitsentiretyforamorecompletedescriptionoftheprovisionssummarizedbelow.
TheMergerAgreementhasbeenprovidedsolelytoinforminvestorsofitsterms.ExceptforitsstatusasthecontractualdocumentthatestablishesandgovernsthelegalrelationsamongthepartieswithrespecttotheOfferandtheMerger,TextronandArcticCatdonotintendfortheMergerAgreementtobeasourceoffactual,businessoroperationalinformationaboutthecompanies.TheMergerAgreementcontainsrepresentationsandwarrantiesofthepartiesasofspecificdatesandmayhavebeenusedforpurposesofallocatingriskbetweenthepartiesratherthanestablishingmattersasfacts.ThoserepresentationsandwarrantiesweremadesolelyforthebenefitoftheotherpartiestotheMergerAgreementandarequalifiedinseveralimportantrespects,whichshouldbeconsideredbyshareholdersastheyreadthemintheMergerAgreement.TherepresentationsandwarrantiesarequalifiedintheirentiretybycertaininformationfiledbyArcticCatwiththeSECpriortothedateoftheMergerAgreement,aswellasbyconfidentialdisclosureschedulesthatArcticCatdeliveredtoTextronandPurchaserinconnectionwiththeexecutionoftheMergerAgreement,andarequalifiedbycontractualstandardsofmaterialitythatmaydifferfromwhatshareholdersconsidertobematerial.InformationconcerningthesubjectmatteroftherepresentationsandwarrantiesmayhavechangedsincethedateoftheMergerAgreement.Fortheforegoingreasons,shareholdersandotherinvestorsshouldnotrelyontherepresentationsandwarrantiescontainedintheMergerAgreementasaccuratestatementsasofthedateoftheMergerAgreementoranyotherdate.
CapitalizedtermsusedinthisSection12(a)—"MergerAgreement"ofthisOffertoPurchaseandnototherwisedefinedhavetherespectivemeaningsassignedtheretointheMergerAgreement.
The Offer
TheMergerAgreementprovidesthatPurchaserwillcommencetheOfferaspromptlyaspracticable(andinanyeventonorpriortoFebruary7,2017)aftertheexecutionoftheMergerAgreement,andthat,subjecttothesatisfactionoftheMinimumConditionandtheotherconditionsthataredescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase,PurchaserwillacceptforpaymentandpayforallSharesvalidlytenderedandnotproperlywithdrawnintheOfferpromptlyafterPurchaserislegallypermittedtodosounderapplicablelawinaccordancewiththeExchangeAct.TextronandPurchaserexpresslyreservetherighttowaive(wherepermittedbyapplicablelaw),intheirsolediscretion,inwholeorinpart,anyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase,toincreasetheOfferPriceortomakeanyotherchangesinthetermsandconditionsoftheOffer,exceptthat,unlessotherwisecontemplatedbytheMergerAgreementoraspreviouslyapprovedbyArcticCatinwriting,Purchaserisnotpermittedto(i)decreasetheOfferPrice,(ii)changetheformofconsiderationpayableintheOffer,(iii)reducethemaximumnumberofSharessoughttobepurchasedintheOffer,(iv)amendorwaivetheMinimumCondition,(v)amendanyoftheotherconditionsandrequirementstotheOffersetforthinSection15—"ConditionsoftheOffer"inamannermateriallyadversetotheholdersofSharesor(vi)extendtheExpirationDateinamannerotherthaninaccordancewiththeMergerAgreement.
38
TheMergerAgreementprovidesthatPurchaser:
• willextendtheOfferforanyperiodorperiodsrequiredbyapplicablelaworapplicablerules,regulations,interpretationsorpositionsoftheSECoritsstaff,aswellasanyoftherulesandregulations,includinglistingstandards,ofNASDAQoranyotherUnitedStatesnationalsecuritiesexchangeregisteredundertheExchangeActonwhichtheapplicablecommonstockisthentraded;and
• unlesstheOfferisterminatedinaccordancewiththeMergerAgreement,intheeventthatanyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearenotsatisfiedor,wherepermittedbyapplicablelaw,waivedasofanythenscheduledExpirationDate,Purchasermay,initssolediscretion,extendtheOfferforsuccessiveextensionperiodsofnotmorethantwenty(20)businessdayseachinordertopermitthesatisfactionoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.
TheMergerAgreementfurtherprovidesthat,unlesstheOfferisterminatedinaccordancewiththeMergerAgreement,intheeventthatanyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearenotsatisfiedor,wherepermittedbyapplicablelaw,waivedbyPurchaserorTextronasofanythenscheduledExpirationDate,andtheArcticCatBoardhasnoteffectedanAdverseRecommendationChange(asdefinedbelow),ArcticCatmay,initssolediscretionandbywrittennoticeatleasttwo(2)businessdayspriortothethenscheduledExpirationDate,requestthatPurchaserextendtheOfferforoneperiodoften(10)businessdaysuntilalloftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchasearesatisfiedor,wherepermittedbyapplicablelaw,validlywaivedbyPurchaserorTextron.
InnoeventwillPurchaserberequiredtoextendtheOfferbeyondtheearliertooccurof(a)thedatetheMergerAgreementisterminatedinaccordancewithitstermsor(b)May24,2017.Theforegoingparagraphswillnotbedeemedtoimpair,limitorotherwiserestrictinanymannerTextron'srightstoterminatetheMergerAgreementinaccordancewithitsterms.
AfteracceptanceforpaymentofSharesintheOffer,ifTextronandPurchaser,directlyorindirectly,donothold,intheaggregate,atleast90%oftheoutstandingSharessoastopermitPurchasertoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCA,thenPurchaserwillprovidetheSubsequentOfferingPeriodinaccordancewithRule14d-11undertheExchangeActofnotlessthanthree(3)normorethantwenty(20)businessdaysasdeterminedinthesolediscretionofTextronorPurchaser.SubjecttothetermsandconditionsoftheMergerAgreementandtheOffer,PurchaserwillimmediatelyacceptforpaymentandpayforallSharesvalidlytenderedintheOfferduringanysuchSubsequentOfferingPeriodandsuchSharescannotbewithdrawn.TextronwillprovideorcausetobeprovidedtoPurchaserthefundsnecessarytopayforanySharesthatPurchaserbecomesobligatedtopurchasepursuanttotheOffer.IfPurchaserexercisestheTopUpOption(asdescribedbelow),itwillnotberequiredtoprovidefortheSubsequentOfferingPeriod.
PurchaserwillnotterminateorwithdrawtheOfferpriortoanyscheduledExpirationDatewithoutthepriorwrittenconsentofArcticCat,exceptiftheMergerAgreementhasbeenterminatedpursuanttoitsterms.IftheMergerAgreementisterminatedpursuanttoitsterms,thenPurchaserisrequiredtopromptly(andinanyeventwithinforty-eight(48)hoursofsuchtermination),irrevocablyandunconditionallyterminatetheOffer.IftheOfferisterminatedorwithdrawnbyPurchaser,ortheMergerAgreementisterminatedpursuanttoitstermspriortothepurchaseofSharesintheOffer,PurchaserwillpromptlyreturnandwillcauseanydepositaryactingonbehalfofPurchasertoreturn,inaccordancewithapplicablelaw,alltenderedSharestotheregisteredholdersthereof.
39
TextronandPurchaserwilltimelyfilewiththeCommissionerofCommerceoftheStateofMinnesotaanyregistrationstatementrelatingtothetransactionscontemplatedbytheMergerAgreementrequiredtobefiledpursuanttoChapter80BoftheMinnesotaStatutesandwilldisseminatetotheholdersofSharesviathisOffertoPurchaseandtheotherdocumentsrelatedtheretotheinformationsetforthinanysuchregistrationstatementtotheextentandwithinthetimeperiodrequiredbyChapter80BoftheMinnesotaStatutes.
Arctic Cat Board of Directors
PursuanttotheMergerAgreement,effectiveimmediatelyaftertheAcceptanceTime,andatalltimesthereafter,subjecttocompliancewiththeprovisionsoftheRestatedArticlesofIncorporationofArcticCat,theAmendedandRestatedBylawsofArcticCat,applicablelawandtheListingRulesoftheNASDAQ,Textronwillbeentitledtoelectordesignatesuchnumberofdirectors,roundeduptothenextwholenumber,ontheArcticCatBoardasisequaltotheproductofthetotalnumberofdirectorsontheArcticCatBoard(givingeffecttothedirectorselectedordesignatedbyTextronpursuanttothissentence)multipliedbythepercentagethattheaggregatenumberofSharesbeneficiallyownedbyTextron,PurchaseroranyoftheirrespectiveaffiliatesbearstothetotalnumberofSharesthenoutstanding.TextronwillbeentitledtodesignateatleastamajorityofthedirectorsontheArcticCatBoardaslongasTextron,PurchaserandtheiraffiliatesbeneficiallyownamajorityoftheoutstandingShares.ArcticCathasagreedtotakeallactionsasarenecessarytoenableTextron'sdesigneestobeelectedordesignatedtotheArcticCatBoard,includingincreasingthesizeoftheArcticCatBoardandseekingandacceptingtheresignationsofitsincumbentdirectors.PriortotheEffectiveTime,notwithstandingtheaboveobligationswithrespecttoTextron'sdesignees,theArcticCatBoardwillalwayshaveatleasttwo(2)memberswhoarenotofficers,directors,employeesordesigneesofTextronorPurchaseroranyoftheiraffiliates("PurchaserInsiders").IfthenumberofdirectorswhoarenotPurchaserInsidersisreducedbelowtwo(2)priortotheEffectiveTime,theremainingdirectorwhoisnotaPurchaserInsiderwillbeentitledtodesignateapersontofillsuchvacancywhoisnotaPurchaserInsiderandwhowillbeadirectornotdeemedtobeaPurchaserInsiderforallpurposesoftheMergerAgreement,andArcticCatwillcausesuchdesigneetobeappointedtotheArcticCatBoard.IfthenumberofdirectorswhoarenotPurchaserInsidersisreducedtozero,thentheotherdirectorsontheArcticCatBoardwilldesignateandappointtotheArcticCatBoardtwo(2)directorswhoarenotofficers,directors,employeesorotherwiseaffiliatedwithTextronorPurchaser(otherthanasaresultofsuchdesignation).ArcticCatwillalsouseitsreasonablebesteffortstocauseindividualsdesignatedbyTextrontoconstitutethesamepercentageaspersonsdesignatedbyTextronontheArcticCatBoardof(i)eachcommitteeoftheArcticCatBoard,(ii)eachboardofdirectors(orothersimilarbody)ofeachsubsidiaryofArcticCatand(iii)eachcommitteeofeachsuchboard,ineachcaseonlytotheextentpermittedbyapplicablelaw.
AfterTextron'sdesigneesareelectedorappointedtotheArcticCatBoardandpriortotheEffectiveTime,theapprovalofamajorityofthedirectorsofArcticCattheninofficewhoarenotPurchaserInsiders(ortheapprovalordirectionofthesoledirectoriftherewillonlybeone(1)directortheninofficewhoisnotaPurchaserInsider)isrequired,andsuchapprovalwillconstitutetheauthorizationoftheArcticCatBoardandnootheractiononthepartofArcticCat,includinganyactionbyanyotherdirectorofArcticCat,willberequiredtoauthorizeanysuchaction,forArcticCatto:
• amendorterminatetheMergerAgreement;
• extendthetimeforperformanceofanyobligationoractionbyTextronorPurchaserundertheMergerAgreement;or
• waiveorenforceanyofArcticCat'srightsoranyoftheobligationsofTextronorPurchaserundertheMergerAgreement.
40
Top Up Option
ArcticCatgrantedtoPurchasertheTopUpOption,exercisableonlyaftertheAcceptanceTime,topurchase,atapricepershareequaltotheOfferPrice,anaggregatenumberofShares(the"TopUpOptionShares")equaltothelowestnumberofSharesthat,whenaddedtothenumberofSharesowned,directlyorindirectly,byPurchaserandTextron,intheaggregate,atthetimeofsuchexercise,willconstituteoneSharemorethan90%oftheFullyDilutedShares(aftergivingeffecttotheissuanceoftheTopUpOptionShares).TheTopUpOptionisnotexercisableunless,immediatelyaftersuchexerciseandtheissuanceoftheTopUpOptionShares,TextronandPurchaserwouldthen,directlyorindirectly,hold,intheaggregate,atleast90%oftheoutstandingShares.TheTopUpOptionisalsonotexercisableforanumberofSharesinexcessofArcticCat'stotalauthorizedandunissuedShares.TheTopUpOptionwillbeexercisableonce,tothefullnumberoftheTopUpOptionSharesthenpurchasableundertheTopUpOptiontoreachoneSharemorethan90%oftheFullyDilutedShares.
PurchaserisrequiredtopaytheTopUpConsideration.TheTopUpConsiderationwillconsistof(i)anamountequaltotheparvalueoftheSharesissuedpursuanttotheTopUpOptionpayableincashand(ii)anamountequaltothebalanceoftheTopUpConsiderationpayablebycashorissuanceofapromissorynoteofPurchaseror,atPurchaser'selection,anycombinationofcashandapromissorynote.AnysuchpromissorynoteissuedbyPurchaser(i)willbearinterestattherateperannumequaltotheshort-termapplicablefederalrateonthedateofexecutionanddeliveryofsuchpromissorynote,payableinarrearsatmaturity,(ii)willmatureonthefirstanniversaryofthedateofexecutionanddeliveryofsuchpromissorynote,(iii)maybeprepaidwithoutpremiumorpenaltyand(iv)willhavenoothermaterialterms.TheArcticCatBoardhasdeterminedthattheTopUpConsiderationfortheTopUpOptionSharesisadequateinaccordancewiththeMBCAandhasotherwisetakenallstepsnecessarysuchthat,uponissuanceanddelivery,theTopUpOptionShareswillbevalidlyissued,fullypaidandnon-assessable.
IfanydemandforfairvalueismadeofDissentingSharesandtheTopUpOptionwasexercisedpriortotheEffectiveTime,thenforpurposesofdeterminingthefairvalueofanyDissentingShares,thecashreceivedand/orvalueofthepromissorynotereceivedbyArcticCatinpaymentoftheexercisepriceoftheTopUpOptionwillbetreatedasifithadnotbeenpaidtoorreceivedbyArcticCat,andtheSharesissueduponexerciseoftheTopUpOptionwillbetreatedasiftheywerenotissuedoroutstanding.
Closing of the Merger
UnlesstheMergerAgreementisterminatedpriortosuchtimeinaccordancewithitsterms,theclosingoftheMerger(the"MergerClosing")willoccuronthethirdbusinessdayfollowingthedayonwhichthesatisfactionor,totheextentpermittedbyapplicablelaw,waiverofalloftheconditionssetforthintheMergerAgreement(otherthanconditionsthatbytheirnaturearetobesatisfiedattheMergerClosing,butsubjecttothesatisfactionor,totheextentpermittedbyapplicablelaw,waiverofthoseconditions)occursorsuchotherdateasthepartiesmaymutuallyagree.
ConcurrentlywiththeMergerClosing,TextronandArcticCatwillcausethearticlesofmergertobefiledwiththeSecretaryofStateoftheStateofMinnesota.TheMergerwillbecomeeffectiveatthetimethearticlesofmergerhasbeensofiledoratanothertimeasisagreedbythepartiesandspecifiedinthearticlesofmergerinaccordancewiththerelevantprovisionsoftheMBCA.OnthetermsandsubjecttotheconditionsoftheMergerAgreement,andinaccordancewiththeMBCA,attheEffectiveTime,(i)PurchaserwillbemergedwithandintoArcticCatandtheseparatecorporateexistenceofPurchaserwillcease,(ii)ArcticCatwillsurvivetheMergerastheSurvivingCompanyandanindirectwhollyownedsubsidiaryofTextronandwillcontinuetobegovernedbytheMBCA,and(iii)theseparatecorporateexistenceofArcticCatwithallitsrights,privileges,immunities,powersand
41
franchiseswillcontinueunaffectedbytheMerger,andalloftheirdebts,liabilitiesanddutieswillbecomedebts,liabilitiesanddutiesoftheSurvivingCompany.
Governing Documents, Directors and Officers Following the Merger
AttheEffectiveTime,theRestatedArticlesofIncorporationofArcticCatasineffectasofthedateoftheMergerAgreementwillbeamendedintheirentiretytoreadthesameasthearticlesofincorporationofPurchaserimmediatelypriortotheEffectiveTime,exceptthatthenameoftheSurvivingCompanywillbe"ArcticCatInc."andassoamendedwillbethearticlesofincorporationoftheSurvivingCompany.TheAmendedandRestatedBylawsofArcticCatasineffectasofthedateoftheMergerAgreementwillbeamendedintheirentiretytoreadthesameasthebylawsofPurchaserimmediatelypriortotheEffectiveTime,andassoamendedwillbethebylawsoftheSurvivingCompany.ThedirectorsofPurchaserimmediatelypriortotheEffectiveTimewill,fromandaftertheEffectiveTime,betheinitialdirectorsoftheSurvivingCompany.TheofficersofArcticCatimmediatelypriortotheEffectiveTime,fromandaftertheEffectiveTime,willbetheinitialofficersoftheSurvivingCompany.
Meeting of Shareholders to Approve the Merger
IfapprovaloftheshareholdersofArcticCatisrequiredundertheMBCAtoconsummatetheMerger,ArcticCatwill:
• aspromptlyaspracticablefollowingtheAcceptanceTimeandtheexpirationoftheSubsequentOfferingPeriodprovidedbyPurchaser,ifapplicable,andinanyeventwithinten(10)businessdaysfollowingtheAcceptanceTimeortheexpirationoftheSubsequentOfferingPeriod,asapplicable,prepareandfilewiththeSECaproxyorinformationstatementforaspecialmeetingofitsshareholdersforpurposesofconsideringandtakingactionupontheMergerAgreementandtheMerger(the"SpecialMeeting"),providedthatTextron,PurchaserandtheircounselwillbegivenareasonableopportunitytoreviewandcommentonthepreliminaryproxystatementbeforeitsfilingwiththeSECandArcticCatwillgivedueconsiderationtothereasonableadditions,deletionsorchangessuggestedbyTextron,PurchaserandtheircounseltotheproxystatementwiththeintentionthattheproxystatementbeinaformreadytoprintandmailtotheshareholdersofArcticCataspromptlyaspracticablefollowingtheProxyStatementClearanceDate(asdefinedbelow);
• notifyTextronofthereceiptofanycommentsoftheSECwithrespecttotheproxystatementandofanyrequestsbytheSECforanyamendmentorsupplementtheretoorforadditionalinformation;
• providetoTextronpromptlycopiesofallwrittencorrespondenceortelephonicnoticeoforalcommunicationsbetweenArcticCatoranyofitsrepresentativesandtheSECoritsstaffwithrespecttotheproxystatement;and
• giveTextronanditscounselareasonableopportunitytoreviewandcommentonallresponsestorequestsforadditionalinformationandrepliestocommentspriortotheirbeingfiledwith,orsentto,theSEC.
ArcticCatwillincludeintheproxystatementtherecommendationoftheArcticCatBoardthattheshareholdersofArcticCatvoteinfavoroftheapprovalandadoptionoftheMergerAgreementinaccordancewiththeMBCA.
EachpartytotheMergerAgreementwilluseitsreasonablebestefforts,afterconsultationwiththeotherparties,torespondpromptlytoallsuchcommentsof,andrequestsby,theSECoritsstaff.ArcticCat,ontheonehand,andTextronandPurchaser,ontheotherhand,agreetopromptlycorrectanyinformationprovidedbysuchpartyforuseintheproxystatement,ifandtotheextentthatitwill
42
havebecomefalseormisleadinginanymaterialrespectorasotherwiserequiredbyapplicablelaw,andArcticCatagreestopromptlycausetheproxystatement,assocorrected,tobefiledwiththeSECand,ifanysuchcorrectionismadefollowingthemailingoftheproxystatement,mailedtoholdersofShares,ineachcaseasandtotheextentrequiredbytheExchangeActand/ortheMBCA.
ArcticCat,actingthrough(oruponauthorizationby)theArcticCatBoard(oracommitteethereof),will,inaccordancewithandsubjecttotherequirementsoftheRestatedArticlesofIncorporationofArcticCat,theAmendedandRestatedBylawsofArcticCatandapplicablelaw:
• aspromptlyaspracticablefollowingtheAcceptanceTimeandtheexpirationoftheSubsequentOfferingPeriodprovidedbyPurchaser,ifapplicable,(i)dulysetarecorddatefor,callandgivenoticeoftheSpecialMeeting(withtherecorddateandmeetingdatesetinconsultationwithPurchaser)forthepurposeofconsideringandtakingactionupontheMergerAgreementand(ii)conveneandholdtheSpecialMeeting;
• causethedefinitiveproxystatementtobeprintedandmailedtotheshareholdersofArcticCat;and
• usecommerciallyreasonableeffortstosecureanyapprovalbytheshareholdersofArcticCatthatisrequiredbytheRestatedArticlesofIncorporationofArcticCat,theAmendedandRestatedBylawsofArcticCatandtheMBCAandanyotherapplicablelawtoeffecttheMerger.
Textronwillvote,orcausetobevoted,attheSpecialMeetingoranypostponementoradjournmentthereof,orpursuanttoawrittenconsentinlieuofameeting,alloftheSharesthenownedbyit,PurchaseroranyofTextron'saffiliatesinfavoroftheapprovalandadoptionoftheMergerAgreement.
"ProxyStatementClearanceDate"meanstheearlierof(i)thedateonwhichArcticCatlearns,orallyorinwriting,thattheproxystatementwillnotbereviewedbytheSEC,includingthefirstbusinessdaythatisatleastten(10)calendardaysafterthefilingofthepreliminaryproxystatementiftheSEChasnotinformedArcticCatthatitintendstoreviewtheproxystatement,and(ii)intheeventthatArcticCatreceivescommentsfromtheSEConthepreliminaryproxystatement,thefirstbusinessdayimmediatelyfollowingthedateArcticCatlearns,orallyorinwriting,thattheSECstaffhasnofurthercommentsonthepreliminaryproxystatement.
Merger Without Meeting of Shareholders
IfaftertheAcceptanceTimeand,ifapplicable,theexpirationoftheSubsequentOfferingPeriodortheexerciseoftheTopUpOption,TextronandPurchaser,directlyorindirectly,hold,intheaggregate,atleast90%oftheoutstandingShares,ArcticCat,TextronandPurchaserwilltakeallnecessaryandappropriateactiontocausetheMergertobecomeeffectiveaspromptlyaspracticablewithoutameetingoftheshareholdersofArcticCatinaccordancewithSection302A.621oftheMBCA.
Merger Consideration to Arctic Cat Shareholders
AttheEffectiveTime,eachShareissuedandoutstandingimmediatelypriortotheEffectiveTime(otherthancanceledShares,asdescribedbelow,orDissentingShares(collectively,the"ExcludedShares"))willbecanceledandautomaticallyconvertedintotherighttoreceivetheMergerConsideration,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.EachShareownedbyanydirectorindirectwhollyownedsubsidiaryofArcticCat(ifany)andeachShareownedbyTextron,PurchaseroranydirectorindirectwhollyownedsubsidiaryofTextronimmediatelypriortotheEffectiveTimewillautomaticallybecanceledwithoutanyconversionthereofandnopaymentordistributionwillbemadewithrespectthereto.Until
43
surrenderedinaccordancewiththeMergerAgreement,uncertificatedSharesrepresentedbybook-entryform("Book-EntryShares")andeachCertificatewillthereafterrepresentonlytherighttoreceive,uponsuchsurrender,theMergerConsiderationtowhichtheholderthereofisentitledpursuanttotheMergerAgreement.NointerestshallbepaidorwillaccrueonanycashpayabletoholdersofCertificatesorBook-EntryShares.
Treatment of Arctic Cat Options
AttheEffectiveTime,eachoutstandingoption(each,an"ArcticCatOption")topurchaseSharesgrantedunderArcticCat's2002StockPlan,2007OmnibusStockandIncentivePlanand2013OmnibusStockandIncentivePlan(the"CompanyStockPlans")thatisoutstandingandunexercisedasofimmediatelypriortotheEffectiveTime,whetherornotvestedorexercisable,willbecomefullyvestedandexercisableimmediatelypriortotheEffectiveTime.EachArcticCatOptionthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatislessthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceive,followingtheEffectiveTime,anamountincash,withoutinterest,equaltotheproductof(i)theamountbywhichtheMergerConsiderationexceedstheapplicableexercisepriceperShareofsuchArcticCatOptionand(ii)theaggregatenumberofSharesissuableuponexerciseofsuchArcticCatOption.Allsuchpaymentswillbemadenolaterthanthelateroffifteen(15)calendardaysfollowingtheMergerClosingandthefirstbusinessdayonwhichtheSurvivingCompanypayspayrolltoserviceprovidersfollowingtheMergerClosingandwillbesubjecttoallapplicablefederal,stateandlocaltaxwithholdingrequirements.EachArcticCatOptionthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatisgreaterthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimewithoutthepaymentofconsideration.
Treatment of Arctic Cat Stock Appreciation Rights
EachstockappreciationrightrepresentingtherighttoreceiveapaymentincashorSharesofArcticCat(each,an"ArcticCatStockAppreciationRight")grantedundertheCompanyStockPlansthatisoutstandingasofimmediatelypriortotheEffectiveTimewillbecomefullyvestedimmediatelypriortotheEffectiveTime.EachArcticCatStockAppreciationRightthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatislessthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceive,followingtheEffectiveTime,anamountincash,withoutinterest,equaltotheproductof(i)theamountbywhichtheMergerConsiderationexceedstheapplicableexercisepriceperShareofsuchArcticCatStockAppreciationRightand(ii)theaggregatenumberofSharessubjecttosuchArcticCatStockAppreciationRight.Allsuchpaymentswillbemadenolaterthanthelateroffifteen(15)calendardaysfollowingtheMergerClosingandthefirstbusinessdayonwhichtheSurvivingCompanypayspayrolltoserviceprovidersfollowingtheMergerClosingandwillbesubjecttoallapplicablefederal,stateandlocaltaxwithholdingrequirements.EachArcticCatStockAppreciationRightthatisoutstandingandunexercisedasoftheEffectiveTimeandhasanexercisepriceperSharethatisgreaterthantheMergerConsiderationwillbecanceledeffectiveasoftheEffectiveTimewithoutthepaymentofconsideration.
Treatment of Arctic Cat Restricted Stock Units
Eachrestrictedstockunit(each,an"ArcticCatRSU")grantedundertheCompanyStockPlansandoutstandingasofimmediatelypriortotheEffectiveTimewillbecomefullyvestedasoftheEffectiveTime.EachArcticCatRSUthatisoutstandingasoftheEffectiveTimewillbecanceledeffectiveasoftheEffectiveTimeandconvertedintotherighttoreceive,followingtheEffectiveTime,anamountincash,withoutinterest,equaltotheproductof(i)theMergerConsiderationand(ii)the
44
aggregatenumberofSharessubjecttosuchArcticCatRSUaward.Allsuchpaymentswillbemadenolaterthanthelateroffifteen(15)calendardaysfollowingtheMergerClosingandthefirstbusinessdayonwhichtheSurvivingCompanypayspayrolltoserviceprovidersfollowingtheMergerClosingandwillbesubjecttoallapplicablefederal,stateandlocaltaxwithholdingrequirements.
Treatment of Arctic Cat Restricted Stock Awards
Eachrestrictedstockaward(each,an"ArcticCatRestrictedStockAward")grantedundertheCompanyStockPlansthatisoutstandingasofimmediatelypriortotheEffectiveTimewillbecomefullyvestedasoftheEffectiveTime.EachArcticCatRestrictedStockAwardthatisoutstandingasoftheEffectiveTimewillbecanceledasoftheEffectiveTimeandconvertedintotherighttoreceive,followingtheEffectiveTime,anamountincash,withoutinterest,equaltotheproductof(i)theMergerConsiderationand(ii)theaggregatenumberofSharessubjecttosuchArcticCatRestrictedStockAward.Allsuchpaymentswillbemadenolaterthanthelateroffifteen(15)calendardaysfollowingtheMergerClosingandthefirstbusinessdayonwhichtheSurvivingCompanypayspayrolltoserviceprovidersfollowingtheMergerClosingandwillbesubjecttoallapplicablefederal,stateandlocaltaxwithholdingrequirements.
Dissenters' Rights
HoldersofDissentingShareswhocomplyinallrespectswith,Sections302A.471and302A.473oftheMBCA(the"DissentersRights")willnotbeconvertedintoorrepresenttherighttoreceivetheMergerConsiderationforsuchDissentingSharesbutinsteadwillbeentitledtopaymentofthefairvalue(includinginterestdeterminedinaccordancewithSection302A.473oftheMBCA)ofsuchDissentingSharesinaccordancewiththeDissentersRights.If,however,anysuchholderfailstoperfectorotherwisewaives,withdrawsorlosestherighttodissentundertheDissentersRights,thentherightofsuchholdertobepaidthefairvalueofsuchholder'sDissentingShareswillceaseandsuchDissentingShareswillbedeemedtohavebeenconvertedasoftheEffectiveTimeinto,andtohavebecomeexchangeablesolelyfortherighttoreceive,theMergerConsideration,withoutinterestthereon.IfanydemandforfairvalueismadeofDissentingSharesandtheTopUpOptionwasexercisedpriortotheEffectiveTime,thenforpurposesofdeterminingthefairvalueofanyDissentingShares,thecashreceivedand/orvalueofthepromissorynotereceivedbyArcticCatinpaymentoftheexercisepriceoftheTopUpOptionwillbetreatedasifithadnotbeenpaidtoorreceivedbyArcticCatandtheSharesissueduponexerciseoftheTopUpOptionwillbetreatedasiftheywerenotissuedoroutstanding.
TheforegoingsummaryofSections302A.471and302A.473oftheMBCAdoesnotpurporttobecompleteandisqualifiedinitsentiretybyreferencetoSections302A.471and302A.473oftheMBCA.
Exchange of Arctic Cat Stock Certificates Following the Merger
PriortotheEffectiveTime,Textronwillappointabankortrustcompanyapproved(suchapprovalnottobeunreasonablywithheld,conditionedordelayed)inadvancebyArcticCattoactaspayingagent(the"PayingAgent")forthepaymentoftheMergerConsideration.
AtorpromptlyaftertheEffectiveTime,Textronwilldeposit,orwillcausetheSurvivingCompanytodeposit,withthePayingAgent,forthebenefitoftheholdersofSharesissuedandoutstandingimmediatelypriortotheEffectiveTime(otherthantheExcludedShares),forpaymentthroughthePayingAgent,anamountincashsufficienttopaytheaggregateMergerConsideration.
PromptlyaftertheEffectiveTime,TextronwillcausethePayingAgenttomailtoeachpersonwhowas,immediatelypriortotheEffectiveTime,aholderofrecordofShares(otherthantheExcludedShares)entitledtoreceivetheMergerConsideration,aLetterofTransmittalandinstructionsforuseineffectingthesurrenderofthoseCertificatesandBook-EntrySharesinexchangefortheMergerConsideration.
45
UponsurrenderofadulyexecutedLetterofTransmittalandaCertificaterepresentingSharestothepayingagentorreceiptbythePayingAgentofan"agent'smessage"inthecaseofBook-EntrySharesand,ineachcase,suchotherdocumentsasmaycustomarilyberequiredbythePayingAgent,theholderofsuchCertificateorBook-EntrySharewillbeentitledtoreceiveinexchangetherefortheMergerConsiderationintowhichtheSharesrepresentedbysuchCertificateorBook-EntrySharehavebeenconvertedpursuanttotheMergerAgreement.
Asofthesix-monthanniversaryoftheEffectiveTime,theSurvivingCompanywillbeentitledtorequirethePayingAgenttodelivertotheSurvivingCompanyanyportionoftheconsiderationdepositedwiththePayingAgentthathasnotbeentransferredtotheholdersofSharesandanyholderofShares(otherthantheExcludedShares)whohasnottheretoforesurrenderedsuchCertificatesorBook-EntrySharesincompliancewiththeMergerAgreementwillonlylooktoTextronortheSurvivingCompanyfor,andTextronandtheSurvivingCompanywillremainliablefor,(subjecttoabandonedproperty,escheatorothersimilarlaws)satisfactionofanyclaimsforpaymentoftheMergerConsideration.
Representations and Warranties
TheMergerAgreementcontainsrepresentationsandwarrantiesmadebyArcticCat,ontheonehand,andTextronandPurchaser,ontheotherhand,thatarequalifiedinseveralimportantrespects,whichshouldbeconsideredbyshareholdersastheyreadthemintheMergerAgreement.TherepresentationsandwarrantiesmadebyArcticCatarequalifiedintheirentiretybycertaininformationofArcticCatfiledwiththeSECbyArcticCatbeforethedateoftheMergerAgreement.Inaddition,therepresentations,warrantiesandcertaincovenantsofArcticCatarequalifiedbyconfidentialdisclosureschedulesthatArcticCatpreparedanddeliveredtoTextronandPurchaserinconnectionwiththeexecutionanddeliveryoftheMergerAgreement.Inaddition,certainoftherepresentationsandwarrantiesmadebyArcticCat,ontheonehand,andTextronandPurchaser,ontheotherhand,weremadeasofaspecifieddate,andcertainoftherepresentationsandwarrantiesmayhavebeenusedforthepurposeofallocatingriskbetweenthepartiestotheMergerAgreementratherthanestablishingmattersasfacts.Moreover,certainoftherepresentations,warrantiesandcovenantsofthepartiesmaybesubjecttoacontractualstandardofmaterialitydifferentfromwhatmightbeviewedasmaterialtoshareholders.
TherepresentationsandwarrantiesmadebyArcticCatrelatetothefollowingsubjectmatters,amongotherthings:
• corporateorganizationandsimilarcorporatematters,includingqualificationtodobusinessunderapplicablelaws,corporatestandingandcorporatepowerofeachofArcticCatanditssubsidiaries;
• ArcticCatsubsidiaries;
• theorganizationaldocumentsofArcticCatanditssubsidiaries;
• thecapitalstructureandequitysecuritiesofArcticCat;
• theauthorityofArcticCattoenterintotheMergerAgreement,dueexecutionanddeliveryoftheMergerAgreementandthecompletionofthetransactionscontemplatedthereby;
• theabsenceofviolationsofapplicablelaws,organizationaldocumentsandcontractsasaresultofthetransactionscontemplatedbytheMergerAgreement,includingtheOfferandtheMerger;
• requiredconsents,approvalsandfilingsasaresultofthetransactionscontemplatedbytheMergerAgreement,includingtheOfferandtheMerger;
• companypermitsandabsenceofviolationofcompanypermits;
46
• compliancewithapplicablelaws;
• timelyfilingofrequiredSECfilings,complianceofSECfilingswithapplicablelaw,accuracyandcompletenessofSECfilingsandabsenceofcertainSECinquiriesorinvestigations;
• accuracyoffinancialstatementsandmaintenanceofasystemofinternalcontrolsoverfinancialreportinganddisclosurecontrols;
• theabsenceofcertainundisclosedliabilities,off-balancesheetarrangementsandloans;
• theabsenceofcertainchangesandeventssinceMarch31,2016;
• theabsenceofmateriallitigation;
• employeebenefitplans;
• certainlaborandemploymentmatters;
• ownedrealproperty,includingownershipandgoodandmarketabletitle,leasedrealpropertyandownershipoftangibleandintangibleassets;
• certaintaxmatters;
• materialcontracts,includingtheabsenceofviolationorbreachofeachsuchcontract;
• certaininsurancematters;
• environmentalmatters;
• intellectualproperty;
• compliancewithanti-corruptionlaws;
• theabsenceofcertainaffiliatetransactions;
• qualityandsafetyofproductsproduced,soldordistributedbyoronbehalfofArcticCatoritssubsidiaries;
• accuracyoftheinformationincludedinthisOffertoPurchase,theSolicitation/RecommendationStatementfiledonSchedule14D-9andanyproxystatementfiledbyArcticCatrelatedtotheapprovalandadoptionoftheMergerAgreementbytheshareholdersofArcticCat;
• approvalsoftheMergerAgreementandthetransactionscontemplatedtherebybytheArcticCatBoardandthevoterequiredbytheshareholdersofArcticCat;
• exemptionfromthetakeoverlawsofMinnesota,includingSections302A.671,302A.673and302A.675oftheMBCA;
• opinionofBairdtotheArcticCatBoardwithrespecttothefairness,fromafinancialpointofview,toholdersofSharesoftheOfferPriceandtheMergerConsideration;and
• brokers.
TherepresentationsandwarrantiesmadebyTextronandPurchaserrelatetothefollowingsubjectmatters,amongotherthings:
• corporateorganizationandsimilarcorporatematters,includingqualificationtodobusinessunderapplicablelaw,corporatestandingandcorporatepowerofTextronandPurchaser;
• theauthorityofTextronandPurchasertoenterintotheMergerAgreementanddueexecutionanddeliveryoftheMergerAgreementandthecompletionofthetransactionscontemplatedthereby;
47
• theabsenceoftheviolationofapplicablelaws,organizationaldocumentsandcontractsasaresultofthetransactionscontemplatedbytheMergerAgreement,includingtheOfferandtheMerger;
• requiredconsentsandapprovalsandfilingsasaresultofthetransactionscontemplatedbytheMergerAgreement,includingtheOfferandtheMerger;
• noownershipofArcticCatCommonStock;
• ownershipandoperationofPurchaser;
• sufficiencyoffundstoconsummatethetransactionscontemplatedbytheMergerAgreement,includingtheOfferandtheMerger;
• accuracyoftheinformationincludedinthisOffertoPurchaseorsuppliedbyTextronorPurchaserforinclusionintheSolicitation/RecommendationStatementfiledonSchedule14D-9oranyproxystatementfiledbyArcticCatrelatedtotheapprovalandadoptionoftheMergerAgreementbytheshareholdersofArcticCat;and
• brokers.
UndertheMergerAgreement,ArcticCat,TextronandPurchaseragreedthatexceptfortherepresentationsandwarrantiesexpresslycontainedintheMergerAgreement,eachpartydoesnotmakeanyotherrepresentationorwarranty.
TherepresentationsandwarrantiesofArcticCat,TextronandPurchasercontainedintheMergerAgreementwillterminateandexpireattheEffectiveTime.
Material Adverse Effect
Severaloftherepresentations,warrantiesandclosingconditionscontainedintheMergerAgreementrefertotheconceptofa"CompanyMaterialAdverseEffect"ora"ParentMaterialAdverseEffect."
ForpurposesoftheMergerAgreement,a"CompanyMaterialAdverseEffect"withrespecttoArcticCatwillbedeemedtooccurifanyevent,circumstance,change,condition,occurrenceoreffect,individuallyorintheaggregatewithanyotherdirectlyrelatedevent,circumstance,change,condition,occurrenceoreffect,(a)hashad,orwouldreasonablybeexpectedtohave,amaterialadverseeffectontheassets,business,condition(financialorotherwise)orresultsofoperationsofArcticCatanditssubsidiaries,takenasawhole,or(b)preventsormateriallydelaystheabilityofArcticCattoconsummatethetransactionscontemplatedbytheMergerAgreement.Notwithstandingtheforegoing,inthecaseofclause(a)above,innoeventshallanyofthefollowing,aloneorincombination,bedeemedtoconstitute,norshallanyofthefollowingbetakenintoaccountindeterminingwhethertherehasbeen,aCompanyMaterialAdverseEffect:
• anyevent,circumstance,change,condition,occurrenceoreffectresultingfromorrelatingto(providedthattheexceptionssetforthinthefirst,second,third,fourthandfifthbulletpointsbelowshallapplyonlytotheextentthatsuchevent,circumstance,change,condition,occurrenceoreffectdoesnothaveadisproportionateimpactonArcticCatanditssubsidiaries,takenasawhole,comparedtoothercompaniesthatoperateintheindustriesinwhichArcticCatanditssubsidiariesoperate):
• achangeingeneraleconomic,political,regulatory,business,financial,creditorcapitalmarketconditions,includinginterestorexchangerates;
• anychangeinconditionsgenerallyaffectingtheprincipalindustryinwhichArcticCatanditssubsidiariesoperate;
48
• anychangeinaccountingrequirementsorprinciplesrequiredbyGAAP(oranyauthoritativeinterpretationsthereof)orrequiredbyanychangeinapplicablelawafterthedateoftheMergerAgreement;
• anyadoption,implementation,promulgation,repealormodificationofanyapplicablelawafterthedateoftheMergerAgreement;
• anyoutbreak,escalationoractsofarmedhostility,terrorismorwar;
• changesproximatelycausedbytheannouncementoftheexecutionoftheMergerAgreementorthependencyofthetransactionscontemplatedthereby(providedthattheseexceptionsshallnotapplytoanyrepresentationsorwarrantiesrelatingtoArcticCat'srequiredconsents,approvalsandfilingspursuanttotheMergerAgreement,unlessotherwisedisclosedintheconfidentialdisclosureschedulesdeliveredbyArcticCattoTextronandPurchaserinconnectionwiththeMergerAgreement);or
• compliancewiththeexpresstermsof,orthetakingofanyactionexpresslyrequiredby,theMergerAgreement(excludingArcticCatoperatingintheordinarycourseofbusiness)orthetakingofanyactionconsentedtoorrequestedinwritingbyTextronpriortothetakingofsuchaction;
• anylegalproceedingsmadeorbroughtbyanycurrentorformersecurityholdersofArcticCat(ontheirownbehalforonbehalfofArcticCat)arisingoutoforrelatedtotheMergerAgreementoranytransactionscontemplatedthereby;or
• anyfailuretomeetinternalorpublishedprojections,forecasts,performancemeasures,operatingstatisticsorrevenueorearningspredictionsforanyperiodoradeclineinthepriceortradingvolumeoftheShares(providedthat,exceptasotherwiseprovidedinthedefinitionofCompanyMaterialAdverseEffect,theunderlyingcausesofsuchfailureordeclinemaybeconsideredindeterminingwhetherthereisaCompanyMaterialAdverseEffect).
ForpurposesoftheMergerAgreement,a"ParentMaterialAdverseEffect"withrespecttoeachofTextronorPurchasermeansanyevent,circumstance,development,condition,effect,changeoroccurrencethat,individuallyorintheaggregatewithanyotherevents,circumstances,developments,conditions,effects,changesoroccurrences,preventsormateriallydelaysconsummationoftheOfferortheMergerortheperformancebyTextronorPurchaserofanyoftheirobligationsundertheMergerAgreement.
Conduct of Business by Arctic Cat Pending the Merger
ArcticCatintheMergerAgreementagreedtocertainrestrictionsrelatingtotheconductofitsbusinessbetweenthedateoftheMergerAgreementandtheearlieroftheEffectiveTimeandtheterminationoftheMergerAgreementinaccordancewithitsterms.Duringsuchtime:
• exceptasexpresslycontemplatedbyanyotherprovisionoftheMergerAgreementorassetforthintheconfidentialdisclosurescheduledeliveredbyArcticCattoTextronandPurchaserinconnectionwiththeMergerAgreement,ArcticCatwill,andwillcauseitssubsidiariesto,conductthebusinessofArcticCatanditssubsidiariesintheordinarycourseofbusinessand,totheextentconsistenttherewith,usereasonablebesteffortsto(i)preservesubstantiallyintactthebusinessorganizationofArcticCatanditssubsidiaries,(ii)keepavailabletheservicesofitsexecutiveofficersandkeyemployeesoncommerciallyreasonableterms,(iii)maintainineffectallnecessarylicenses,permits,consents,franchisesandapprovalsandauthorizationsand(iv)maintainsatisfactoryrelationshipswithanypersonswithwhichtheyhavematerialbusinessrelationsandwithgovernmentalauthoritiesthathavejurisdictionovertheirrespectivebusinessesandoperations;
49
• ArcticCatwillnot,directlyorindirectly,takeanyactionorknowinglyfailtotakeanyactionthatisintendedtomateriallydelayorpreventtheconsummationofthetransactionscontemplatedbytheMergerAgreement;and
• exceptasexpresslycontemplatedbyanyotherprovisionoftheMergerAgreementorassetforthintheconfidentialdisclosurescheduledeliveredbyArcticCattoTextronandPurchaserinconnectionwiththeMergerAgreementorasrequiredbyapplicablelaw,neitherArcticCatnoranyofitssubsidiarieswill,withoutthepriorwrittenconsentofTextron(providedthatinthecaseoftheeighthandthirteenthbulletpointsbelow,and,solelywithrespecttotheeighthandthirteenthbulletpointsbelow,thetwenty-firstbulletpointbelow,suchconsentnottobeunreasonablywithheld,conditionedordelayed):
• amendorotherwisechangetheirrespectiveorganizationaldocuments;
• issue,sell,disposeoforencumber,orauthorizesuchissuance,sale,dispositionorencumbranceof,anysharesofanyclassofsharecapitaloranyotherequityinterestsofArcticCatoranyofitssubsidiaries,subjecttocertainexceptions;
• declare,setaside,makeorpayanydividendorotherdistributionwithrespecttoanyoftheirsharecapitalorotherequityinterests,subjecttocertainexceptions,orenterintoanycontractwithrespecttothevotingorregistrationoftheirsharecapitalorotherequityinterests;
• reclassify,combine,split,subdivideorredeem,orpurchaseorotherwiseacquire,directlyorindirectly,anyoftheirsharecapitalorotherequityinterests;
• sell,transfer,lease,sublease,license,mortgage,pledge,encumber,allowtolapse,incuranylienon(otherthanapermittedlien),orotherwisedisposeof,orauthorizeanyoftheforegoingwithrespectto,anyownedrealpropertyoranyoftheirmaterialproperties,assets,licenses,operations,rights,businessesorintereststherein(includingintellectualproperty),subjecttocertainexceptions;
• acquire(includingbymerger,consolidation,acquisitionofequityinterestsorassets,oranyotherbusinesscombination)anypersonorotherbusinessorganization(oranydivisionthereof);
• (i)repurchase,prepayorincuranyindebtednessforborrowedmoney(otherthanpursuanttotheExistingCreditAgreement,inallcasesinmaterialcompliancewiththetermsandconditionsoftheExistingCreditAgreement)orissueanydebtsecurities,orissueorselloptions,warrants,callsorotherrightstoacquireanydebtsecuritiesofArcticCatoranyofitssubsidiaries,(ii)makeanyloans,advancesorcapitalcontributionsto,orinvestmentsin,anyotherperson(otherthananArcticCatsubsidiary),(iii)enterintoany"keepwell"orothercontracttomaintainanyfinancialstatementorsimilarconditionofanotherpersonorenterintoanyarrangementhavingtheeconomiceffectofanyoftheforegoingor(iv)assume,guarantee,endorseorotherwisebecomeliableorresponsiblefortheindebtednessorotherobligationsofanotherperson(otherthanaguarantybyArcticCatonbehalfofanyofitssubsidiaries);
• enterinto,amendinamaterialmanner,waive,reneworterminateanymaterialcontract;
• authorize,ormakeanycommitmentwithrespectto,capitalexpendituresthatintheaggregate,togetherwithanycapitalexpendituresincurredpriortothedateoftheMergerAgreementduringArcticCat'sfiscalyearendedMarch31,2017,exceedtheannualcapitalexpendituresbudgetofArcticCatanditssubsidiaries,takenasawhole,providedtoTextronandPurchaser,otherthanintheordinarycourseofbusiness;
50
• exceptasotherwiserequiredunderanyplan,program,policy,agreementorotherarrangementinexistenceasofthedateoftheMergerAgreement,(i)increasethecompensationpayableortobecomepayableorthebenefitsprovidedtoserviceproviders,(ii)grantanyretention,severanceorterminationpayto,orenterintoanyemployment,bonus,changeofcontrolorseveranceagreementwith,anycurrentorformerserviceprovider,(iii)establish,adopt,enterinto,terminateoramendanyemployeebenefitsplan,orestablish,adoptorenterintoanyplan,agreement,program,policy,trust,fundorotherarrangementthatwouldbeanemployeebenefitsplanifitwereinexistenceasofthedateoftheMergerAgreement,forthebenefitofanyserviceproviderexceptasrequiredbylaw,(iv)loanoradvanceanymoneyorotherpropertytoanycurrentorformerserviceprovideror(v)establish,adopt,enterintooramendanycollectivebargainingagreementorlaborunioncontract;
• exercisediscretionwithrespecttoorotherwisevoluntarilyacceleratethelapseofrestrictionorvestingofanyequityorequity-basedawardsasaresultoftheMerger;
• failtomaintaininfullforceandeffecttheexistinginsurancepolicies(oralternativepolicieswithcomparabletermsandconditions)coveringArcticCatanditssubsidiariesandtheirrespectiveproperties,assetsandbusinesses;
• (i)settle(orproposetosettle)anylawsuit,litigation,suit,audit,claim,complaint,demand,summons,ceaseanddesistletter,subpoena,injunction,action,proceeding,arbitration,noticeofviolationorinvestigation(an"Action"),otherthan(A)settlementsinvolvingnotmorethan$200,000inmonetarydamagesindividually(netofinsuranceproceeds)andthatdonotrequireanyactions(includingthelicenseofanyintellectualproperty)orimposeanymaterialrestrictionsonthebusinessoroperationsofArcticCatoranyofitssubsidiaries,or,aftertheEffectiveTime,Textronoritssubsidiaries,orincludetheadmissionofwrongdoingbyArcticCatoranyofitssubsidiariesand(B)shareholderlitigation,whichisthesubjectofaseparateprovisionintheMergerAgreement,(ii)settleorcompromiseanymaterialinvestigationorinquirybyanygovernmentalauthority,includingbyenteringintoanyconsentdecreeorothersimilaragreementor(iii)waive,releaseorassignanyclaimsorrightsofmaterialvalue;
• changeitsfinancialaccountingpoliciesorproceduresineffectasofMarch31,2016,otherthanasrequiredbyapplicablelaworGAAP,orwriteup,writedownorwriteoffthebookvalueofanyassetsofArcticCatoranyofitssubsidiaries,otherthanintheordinarycourseofbusinessorasmayberequiredbyapplicablelaworGAAP;
• makeanychangeintheinvestment,hedging,reserving,underwritingorclaimsadministrationpolicies,practicesorprinciplesthatwouldbematerialtoArcticCatanditssubsidiaries,takenasawhole,exceptasmayberequiredtoconformtochangesinGAAPorapplicablelaw;
• mergeorconsolidateArcticCatoranyofitssubsidiarieswithanypersonoradoptaplanofcompleteorpartialliquidationorresolutionsprovidingforacompleteorpartialliquidation,dissolution,restructuring,recapitalizationorotherreorganizationofArcticCatoranyofitssubsidiaries;
• (i)changeoradopt(orfilearequesttochangeoradopt)anymethodoftaxaccountingoranyannualtaxaccountingperiod,(ii)make,changeorrescindanymaterialtaxelection,(iii)fileanytaxreturnrelatingtoArcticCatoranyofitssubsidiariesthathasbeenpreparedinamannerthatisinconsistentwiththepastpracticesofArcticCatoranyofitssubsidiaries,asapplicable,(iv)settleorcompromiseanyclaim,investigation,auditorcontroversyrelatingtotaxes,(v)surrenderanyrighttoclaimataxrefund,(vi)fileany
51
amendedtaxreturn,(vii)enterintoanyclosingagreementwithrespecttoanytaxor(viii)waiveorextendthestatuteoflimitationswithrespecttotheassessmentordeterminationoftaxes;
• (i)abandon,disclaim,dedicatetothepublic,sell,assign,transferorencumber(otherthanpermittedliens)itsrightsorinterestin,toorunderanymaterialintellectualproperty,includingfailingtoperformorcausetobeperformedallapplicablefilings,recordingsandotheracts,ortopayorcausetobepaidallrequiredfeesandtaxes,tomaintainandprotectArcticCatoranyofitssubsidiaries'interestinsuchmaterialintellectualproperty,(ii)licenseanyintellectualpropertytoanythirdparty,otherthannon-exclusivelicensesgrantedintheordinarycourseofbusiness,(iii)develop,createorinventanyintellectualpropertyjointlywithanythirdparty,ineachcaseotherthanintheordinarycourseofbusinessor(iv)discloseanyconfidentialinformationorconfidentialintellectualpropertytoanyperson,otherthanemployeesofArcticCatoranyofitssubsidiariesorthirdpartiesthataresubjecttoconfidentialityornon-disclosureagreementsprotectingagainstdisclosurethereof,ineachcaseintheordinarycourseofbusiness,ortoTextronoranyofitsaffiliatesinconnectionwiththetransactionscontemplatedbytheMergerAgreement;
• enterinto,amend,waiveorterminate(otherthanterminationsinaccordancewiththeirterms)anyaffiliatetransaction;
• failtomakeinatimelymanneranyfilingswiththeSECrequiredundertheSecuritiesActortheExchangeActortherulesandregulationspromulgatedthereunder;or
• agree,resolve,announceanintention,enterintoanyformalorinformalagreementorotherwisemakeacommitment,todoanyoftheforegoing.
Third Party Acquisition Proposals
ArcticCatwill,andwillcauseitssubsidiariesto,andwillinstruct(anduseitsreasonablebesteffortstocause)anyrepresentativeofArcticCatanditssubsidiariesto,immediatelyceaseandcausetobeterminatedanysolicitation,discussionsornegotiationswithanypersonthatmaybeongoingwithrespecttoanAcquisitionProposal(asdefinedbelow),oranyinquiry,proposalorofferthatwouldreasonablybeexpectedtoleadtoanAcquisitionProposal,andwillrequestthepromptreturnordestructionofallnon-publicconfidentialinformationpreviouslyfurnishedtoanypersoninconnectiontherewithandimmediatelyterminateallphysicalandelectronicdataroomaccesspreviouslygrantedtoanysuchperson,itssubsidiariesoritsoritssubsidiaries'representatives.
Subjecttotheexceptionsdescribedbelow,ArcticCathasagreedthatduringtheperiodfromthedateoftheMergerAgreementandtheearlieroftheAcceptanceTimeandtheterminationoftheMergerAgreementinaccordancewithitsterms,itwillnot,andwillcauseeachofitssubsidiariesnotto,andwillinstruct(anduseitsreasonablebesteffortstocause)anyrepresentativeofArcticCatanditssubsidiariesnotto,directlyorindirectly:
• solicitorinitiateanyinquiriesortheimplementationorsubmissionofanyAcquisitionProposal,oranyproposalsoroffersthatwouldbereasonablyexpectedtoleadtoanAcquisitionProposal;
• engagein,continueorotherwiseparticipateinanydiscussionsornegotiationsregarding,orfurnishtoanypersonanynon-publicandconfidentialinformationinconnectionwith,orforthepurposeoffacilitating,anyinquiries,proposalsoroffersthatconstitute,orcouldbereasonablyexpectedtoleadto,anAcquisitionProposal,excepttonotifysuchpersonoftheexistenceoftherestrictionregardingthirdpartyproposalscontainedintheMergerAgreement;
• otherwisefacilitateanyeffortorattempttomakeanAcquisitionProposal,oranyinquiries,proposalsoroffersthatcouldreasonablybeexpectedtoleadtoanAcquisitionProposal;or
52
• executeorenterintoanyletterofintent,memorandumofunderstanding,agreementinprinciple,acquisitionagreement,mergeragreement,optionorothersimilaragreement(otherthananAcceptableConfidentialityAgreement(asdefinedbelow)enteredintoinaccordancewiththetermsoftheMergerAgreement)regarding,orthatisintendedtoresultin,orwouldreasonablybeexpectedtoleadto,anyAcquisitionProposal(anyoftheforegoing,an"AcquisitionAgreement").
An"AcquisitionProposal"meansanyoralorwrittenproposalorofferfromanypersonorgroup(asthatgroupisdefinedinRule13d-3oftheExchangeAct),otherthanTextronorPurchaser,relatingto,inasingletransactionorseriesofrelatedtransactions,(i)anydirectorindirectacquisitionof(A)20%ormoreoftheassets(whetherbasedonthefairmarketvalue,revenuegenerationornetincome)ofArcticCatanditsconsolidatedsubsidiaries,takenasawhole,includinginanysuchcasethroughtheacquisitionofoneormoreArcticCatsubsidiariesowningsuchassets,or(B)20%ormoreoftheoutstandingArcticCatCommonStock(oranysecuritiesconvertibleinto,orexchangeablefor,suchArcticCatCommonStock);(ii)anytenderofferorexchangeoffer,asdefinedpursuanttotheExchangeAct,thatifconsummatedwouldresult,directlyorindirectly,inanypersonorgroup(ortheshareholdersofanypersonorgroup)beneficiallyowning20%ormoreoftheoutstandingArcticCatCommonStock;or(iii)anymerger,consolidation,businesscombination,shareexchange,recapitalization,liquidation,dissolutionorothersimilartransactioninvolvingArcticCatthatwouldresultinanypersonorgroup(ortheshareholdersofanypersonorgroup)beneficiallyowning,directlyorindirectly,20%ormoreoftheoutstandingArcticCatCommonStockor20%ormoreofthevotingpowerofthesurvivingentityinamergerinvolvingArcticCatortheresultingdirectorindirectparentofArcticCatorsuchsurvivingentity(oranysecuritiesconvertibleinto,orexchangeablefor,securitiesrepresentingsuchvotingpower).
An"AcceptableConfidentialityAgreement"meansanexecutedconfidentialityagreementwithtermsnolessfavorable,intheaggregate,toArcticCatthanthosecontainedintheconfidentialityagreemententeredintobyTextronandArcticCatonOctober6,2016(the"ConfidentialityAgreement"),provided,however,thatsuchconfidentialityagreement(i)shallincludea"standstill"restrictionthatissimilarinscopetothe"standstill"restrictionsintheConfidentialityAgreement,withoutapplicationofany"fall-away"provisionscontainedtherein,butsuchrestrictionsneednotprohibitthemakingofanyconfidentialAcquisitionProposaltoArcticCatortheArcticCatBoard(oranycommitteethereof),and(ii)shallnotprovideforanexclusiverighttonegotiatewithArcticCatandshallnotrestrictArcticCatfromcomplyingwithanytermorconditionoftheMergerAgreement,includingtherequirementtoprovideinformationtoTextron(asdescribedbelow).
However,notwithstandingtheforegoingparagraphs,ArcticCatmayrespondtounsolicitedinboundinquiries(orallyorinwriting)fromthirdpartiesthatcommunicateaninterestinpursuinganAcquisitionProposal.Additionally,priortotheAcceptanceTime,nothingcontainedintheforegoingparagraphswillpreventArcticCatortheArcticCatBoardfromfurnishinginformationto,orengaginginnegotiationsordiscussionswith,anypersonthatmakesanunsolicitedbonafideAcquisitionProposal,whichAcquisitionProposaldidnotresultinanymaterialrespectfromabreach(ordeemedbreach)ofArcticCat'sresponsibilitiessetforthintheforegoingparagraphs,if,andonlyif,priortotakingsuchaction:
• theArcticCatBoard(i)determinesingoodfaith(afterconsultationwithitsfinancialadvisorsandoutsidelegalcounsel)thatsuchAcquisitionProposalis,orcouldreasonablybeexpectedtoresultin,aSuperiorProposal(asdefinedbelow)and(ii)determinesingoodfaith(afterconsultationwithitsoutsidelegalcounsel)thatitsfailuretotakesuchactionswouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw;
• ArcticCatprovideswrittennoticetoTextronofthedeterminationreferencedintheimmediatelyprecedingbulletpoint;and
53
• ArcticCat(i)receivesfromsuchpersonanexecutedAcceptableConfidentialityAgreementand(ii)deliverstoTextronacopyofsuchexecutedAcceptableConfidentialityAgreementpromptlyfollowingitsexecution.
A"SuperiorProposal"meansanybonafidewrittenAcquisitionProposalmadebyanypersonorgroup(otherthanTextronorPurchaser)afterthedateoftheMergerAgreement,whichAcquisitionProposaldidnotresultinanymaterialrespectfromabreach(ordeemedbreach)ofArcticCat'sresponsibilitiessetforthintheforegoingparagraphs,that(i)wouldresultinsuchpersonorgroup(orinthecaseofadirectmergerbetweensuchpersonandArcticCat,theshareholdersofsuchperson)acquiring,directlyorindirectly,50%ormoreoftheoutstandingArcticCatCommonStockorallorsubstantiallyalloftheassetsofArcticCatanditssubsidiariestakenasawhole,(ii)isontermsthattheArcticCatBoarddeterminesingoodfaith(afterreceivingtheadviceofitsfinancialadvisorandoutsidelegalcounselandaftertakingintoaccountallthetermsandconditionsoftheAcquisitionProposal)aremorefavorabletoArcticCat'sshareholdersfromafinancialpointofviewthanthetransactionscontemplatedbytheMergerAgreement(takingintoaccountanyproposedamendmentormodificationproposedbyTextroninaccordancewiththetermsoftheMergerAgreement)and(iii)theArcticCatBoarddetermines(afterreceivingtheadviceofitsfinancialadvisorandoutsidelegalcounsel)isreasonablycapableofbeingconsummatedinaccordancewithitstermsinareasonableperiodoftime,takingintoaccountallfinancial,regulatory,legalandotheraspects(includingcertaintyofclosingandcertaintyoffinancing)ofsuchproposal.
ArcticCatwillpromptly(andinanyeventwithin48hours):
• provideTextronwrittennoticeof(i)thereceiptofanyAcquisitionProposalor(ii)anyinquiries,proposalsoroffersreceivedby,oranydiscussionsornegotiationssoughttobeinitiatedorcontinuedwith,ArcticCat,anyofitssubsidiariesoranyrepresentativeofArcticCatoritssubsidiariesconcerninganAcquisitionProposal;
• disclosetoTextronthematerialtermsofanysuchAcquisitionProposaloranysuchinquiry,offer,proposalorrequest,includingtheidentityofthepersonmakinganysuchAcquisitionProposaloranysuchinquiry,offer,proposalorrequest;
• provideTextronwithcopiesofallwritteninformationconcerningArcticCatoranyofitssubsidiariesprovidedormadeavailablebyArcticCat,anyofitssubsidiariesoranyrepresentativeofArcticCatoritssubsidiariestosuchpersontotheextentnotpreviouslyprovidedormadeavailabletoTextron;
• respondtorequestsbyTextronforinformationregardingthestatusanddetailsofanysuchAcquisitionProposalorotherinquiry,offer,proposalorrequestconcerninganAcquisitionProposal;and
• disclosetoTextronanymaterialdevelopmentormaterialamendmentofanysuchAcquisitionProposalorotherinquiry,offer,proposalorrequestconcerninganAcquisitionProposal.
ArcticCatwillpromptly(andinanyeventwithin24hours)followingadeterminationbytheArcticCatBoardthatanAcquisitionProposalisaSuperiorProposal,notifyTextronofsuchdetermination.
Board Recommendation Change and Written Notice of Adverse Recommendation Change
Exceptasdescribedbelow,neitherArcticCatnortheArcticCatBoard(oranycommitteethereof),will(i)withhold,withdrawormodify,inamanneradversetoTextronorPurchaser,theCompanyBoardRecommendation(asdefinedbelow);(ii)approveorrecommendanyAcquisitionProposal;(iii)enterintoanyAcquisitionAgreement;or(iv)recommendanyAcquisitionProposal(andfailtoreaffirmtheCompanyBoardRecommendation).Anysuchaction,otherthanthatsetforthintheprecedingclause(iii),isan"AdverseRecommendationChange."
54
The"CompanyBoardRecommendation"meanstheArcticCatBoard's,and,asrequiredbytheMBCA,acommitteeofdisinteresteddirectorsoftheArcticCatBoard's,amongotherthings,(i)determinationthattheMergerAgreementandthetransactionscontemplatedtherebyareadvisable,fairtoandinthebestinterestsofArcticCatanditsshareholders;(ii)approvalandadoptionoftheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger;and(iii)recommendationthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserintheOfferand,ifrequiredtoconsummatetheMerger,suchshareholdersapproveandadopttheMergerAgreementandtheMerger.
However,priortotheAcceptanceTime,theArcticCatBoardmayeffectanAdverseRecommendationChange,if:
• ArcticCatreceivesanunsolicited,writtenAcquisitionProposalthattheArcticCatBoarddeterminesingoodfaith(afterconsultationwithitsfinancialadvisorsandoutsidelegalcounsel)isaSuperiorProposalanddeterminesingoodfaith(afterconsultationwithitsoutsidelegalcounsel)thatitsfailuretotakesuchactionswouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw;providedthat:
• priortoeffectingsuchanAdverseRecommendationChangewithrespecttoaSuperiorProposal,(i)ArcticCathasnotifiedTextroninwritingthatitintendstoeffectanAdverseRecommendationChange,(ii)ArcticCathasprovidedTextronacopyofallproposeddefinitiveagreements(includingallfinancingdocuments,ifapplicable)withrespecttosuchSuperiorProposal,(iii)ifrequestedtodosobyTextron,foraperiodoffour(4)calendardaysfollowingdeliveryofsuchnotice,ArcticCatwillhavediscussedandnegotiatedingoodfaith,andwillhavemadeitsoritssubsidiaries'representativesavailabletodiscussandnegotiateingoodfaith,withTextronanditsoritssubsidiaries'representativesanybonafideproposedmodificationstothetermsandconditionsoftheMergerAgreementand(iv)noearlierthantheendofsuchfour(4)calendardayperiod,theArcticCatBoard(afterconsultationwithitsoutsidelegalcounselandfinancialadvisor)willhavedeterminedingoodfaith,afterconsideringthetermsofanyproposedamendmentormodificationtotheMergerAgreementproposedbyTextronduringsuchfour(4)calendardayperiod,thatsuchSuperiorProposalstillconstitutesaSuperiorProposalandthatthefailuretomakeanAdverseRecommendationChangeinconnectiontherewithwouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw;and
• anychangetothefinancialorothermaterialtermsofsuchSuperiorProposalwillrequireArcticCattoprovideanewnoticetoTextroninthesamemannerasdescribedintheimmediatelyprecedingbulletpointandrequireArcticCattoagaincomplywiththerequirementssetforthintheimmediatelyprecedingbulletpoint;exceptthatwithrespecttoanysuchnewnoticeorsubsequentnotices,referencestoa"four(4)calendardayperiod"willbedeemedreferencestoa"two(2)calendardayperiod."
• anInterveningEvent(asdefinedbelow)occursandasaresultthereoftheArcticCatBoarddeterminesingoodfaith(afterconsultationwithitsoutsidelegalcounsel)thatthefailuretoeffectanAdverseRecommendationChangewouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw;providedthat:
• priortoeffectingsuchanAdverseRecommendationChangewithrespecttoanInterveningEvent,(i)ArcticCathasnotifiedTextroninwritingthatitintendstoeffectsuchanAdverseRecommendationChange,describinginreasonabledetailthereasonsforsuchAdverseRecommendationChange,(ii)ifrequestedtodosobyTextron,foraperiodoffour(4)calendardaysfollowingdeliveryofsuchnotice,ArcticCatwillhavediscussedandnegotiatedingoodfaith,andwillhavemadeitsoritssubsidiaries'representativesavailabletodiscussandnegotiateingoodfaith,withTextronanditsoritssubsidiaries'
55
representativesanybonafideproposedmodificationstothetermsandconditionsoftheMergerAgreementand(iii)noearlierthantheendofsuchfour(4)calendardayperiod,theArcticCatBoardwillhavedeterminedingoodfaith,afterconsideringthetermsofanyproposedamendmentormodificationtotheMergerAgreementproposedbyTextronduringsuchfour(4)calendardayperiodandafterconsultationwithitsoutsidelegalcounsel,thatthefailuretoeffectanAdverseRecommendationChangewouldstillbeinconsistentwiththeArcticCatBoard'sfiduciarydutiesunderapplicablelaw.
An"InterveningEvent"meansanymaterialevent,circumstance,change,effect,developmentorcondition(otherthananAcquisitionProposaloranyinquiry,offerorproposalthatwouldreasonablybeexpectedtoleadtoanAcquisitionProposal)firstoccurringorarisingafterthedateoftheMergerAgreementthatwasnotknownorreasonablyforeseeablebytheArcticCatBoardasofthedateoftheMergerAgreement(orifknown,themagnitudeormaterialconsequencesofwhichwerenotknownorreasonablyforeseeablebytheArcticCatBoardasofthedateoftheMergerAgreement).
NothingcontainedintheMergerAgreementwillpreventArcticCatortheArcticCatBoardfromissuinga"stop,lookandlisten"communicationpursuanttoRule14d-9(f)undertheExchangeActorcomplyingwithRule14d-9andRule14e-2undertheExchangeActwithrespecttoanAcquisitionProposalorfrommakinganydisclosuretoArcticCat'sshareholdersiftheArcticCatBoarddetermines(afterconsultationwithitsoutsidelegalcounsel)thatitsfailuretodosowouldbeinconsistentwithitsfiduciarydutiesunderapplicablelaw;providedthat,ineachcase,anyAdverseRecommendationChangemayonlybemadeinaccordancewiththeforegoingparagraphs.
IfanysubsidiaryofArcticCatorrepresentativeofArcticCatoritssubsidiariesoranysubsidiaryofArcticCattakesanyaction,onbehalfofArcticCat,which,iftakenbyArcticCat,wouldconstituteamaterialbreachoftheno-solicitationprovisionsoftheMergerAgreementdescribedinthissubsection,andArcticCatdoesnottakereasonableactiontoseektocuresuchbreachwithintwo(2)businessdaysoftheearlierofthedateonwhichArcticCatreceiveswrittennoticefromTextronorPurchaserofsuchbreachandthedateonwhichArcticCat'sseniormanagementteamobtainsknowledgeofsuchbreach,thenArcticCatwillbedeemedtohavebreachedtheno-solicitationprovisionsoftheMergerAgreementdescribedinthissubsection.
Indemnification
FromandaftertheEffectiveTime,theSurvivingCompanyanditssubsidiarieswill,andTextronwillcausetheSurvivingCompanyto,tothefullestextentpermittedundertheMBCA,honorandfulfillinallrespectstheobligationsofArcticCatanditssubsidiariesunderanyandallindemnificationagreementsbetweenArcticCatoranyofitssubsidiariesandanyoftheirrespectivepresentorformerdirectorsandofficers(collectively,the"IndemnifiedParties").ThearticlesofincorporationandbylawsoftheSurvivingCompanywillcontainprovisionsnolessfavorablewithrespecttoexculpationandindemnificationthanaresetforthintheRestatedArticlesofIncorporationofArcticCatasineffectasofthedateoftheMergerAgreementortheAmendedandRestatedBylawsofArcticCatasineffectasofthedateoftheMergerAgreement,whichprovisionswillnotbeamended,repealedorotherwisemodifiedforaperiodofsix(6)yearsfromtheEffectiveTimeinanymannerthatwouldaffectadverselyinanymaterialrespecttherightsthereunderofindividualswho,atorpriortotheEffectiveTime,weredirectorsorofficersofArcticCatoranyofitssubsidiaries.
Inaddition,foraperiodofsix(6)yearsaftertheEffectiveTime,theSurvivingCompanywilltothefullestextentpermittedunderapplicablelawindemnifyandholdharmlesseachIndemnifiedPartyagainstallcostsandexpenses(includingattorneys'fees),judgments,fines,losses,claims,damages,liabilitiesandsettlementamountspaidinconnectionwithanyAction(whetherarisingbeforeoraftertheEffectiveTime),whethercivil,criminal,administrativeorinvestigative,arisingoutoforrelatingto
56
anyactionoromissionintheircapacityasadirectororofficerofArcticCatoranyofitssubsidiariesoccurringonorbeforetheEffectiveTime.
TheSurvivingCompanywilleither(i)purchaseattheEffectiveTimea"tail"directors'andofficers'liabilityinsurancepolicieswithaclaimsperiodofatleastsix(6)yearsfromtheEffectiveTimecoveringthosepersonswhoarecurrentlycoveredbythedirectors'andofficers'liabilityinsurancepoliciesofArcticCatinanamountandscopeatleastasfavorable,intheaggregate,asArcticCat'sexistinginsurancecoverageforclaimsarisingfromfactsoreventsthatoccurredonorpriortotheEffectiveTimeor(ii)maintainineffectforsix(6)yearsfromtheEffectiveTime,ifavailable,thecurrentdirectors'andofficers'liabilityinsurancepoliciesmaintainedbyArcticCat;providedthat(a)theSurvivingCompanymaysubstitutepoliciesofatleastthesamecoveragecontainingtermsandconditionsthataresubstantiallysimilar,intheaggregate,withrespecttomattersoccurringpriortotheEffectiveTime,(b)theSurvivingCompanywillnotberequiredtoexpendinconnectiontherewithmorethananamountperyearequalto250%ofcurrentannualpremiumspaidbyArcticCatforsuchinsuranceand(c)intheeventofanexpiration,terminationorcancellationofsuchcurrentpolicies,TextronortheSurvivingCompanywillberequiredtoobtainasmuchcoverageasispossibleundersubstantiallysimilarpoliciesforsuchmaximumannualamountinaggregateannualpremiums.
Regulatory Approvals
EachofTextron,PurchaserandArcticCatwill,andwillcauseeachofitssubsidiariesto:
• useitsreasonablebestefforts(subjecttocompliancewithapplicablelaw)topromptlytake,orcausetobetaken,allactions,andtopromptlydo,orcausetobedone,andtoassistandcooperatewiththeotherpartiesindoing,allthingsnecessary,properoradvisableunderapplicablelawtoconsummateandmakeeffectivethetransactionscontemplatedbytheMergerAgreement,including:
• usingreasonablebesteffortstopromptlyobtainallauthorizations,consents,orders,approvals,licenses,permitsandwaiversofallgovernmentalauthoritiesandofficialsthatmaybeorbecomenecessaryfortheperformanceofitsobligationspursuanttotheMergerAgreement;
• cooperatingfullywiththeotherpartiesinpromptlyseekingtoobtainallsuchauthorizations,consents,orders,approvals,licenses,permitsandwaivers;
• providingsuchotherinformationtoanygovernmentalauthorityassuchgovernmentalauthoritymaylawfullyrequestinconnectionwiththeMergerAgreement;and
• usingreasonablebesteffortstoobtainconsents,approvalsorwaiversfromthirdpartiesthatare(i)necessarytoconsummatethetransactionscontemplatedbytheMergerAgreementor(ii)disclosedintheconfidentialdisclosurescheduledeliveredbyArcticCattoTextronandPurchaserinconnectionwiththeMergerAgreement,providedthat,notwithstandingtheforegoing,noneofArcticCat,anyofArcticCat'ssubsidiaries,Textron,oranyofTextron'ssubsidiarieswillberequiredtomakeanypaymentsorconcessionsinconnectionwiththefulfillmentofitsobligationsunderthisbulletpointandthatneitherArcticCatnoranyofitssubsidiarieswillpayanyconsiderationormakeanyagreementsorcommitmentsinconnectionwithanysuchnecessaryconsents,approvalsorwaiverswithoutthepriorwrittenconsentofTextron;
• aspromptlyaspracticable,butinanyeventnolaterthanten(10)calendardaysfollowingthedateoftheMergerAgreement,makeitsrespectivefilings,ifnecessary,pursuanttotheHSRActwithrespecttothetransactionscontemplatedbytheMergerAgreementandsupplyaspromptlyasreasonablypracticablethereaftertotheappropriategovernmentalauthoritiesanyadditionalinformationanddocumentarymaterialthatmayberequestedpursuanttotheHSRAct;
57
• aspromptlyaspracticableafterthedateoftheMergerAgreement,makeitsrespectivefilingsandnotifications,ifany,underanyotherapplicableantitrustlaw,includingtheantitrustlawsofGermany,andsupplyaspromptlyasreasonablypracticabletotheappropriategovernmentalauthoritiesanyadditionalinformationanddocumentarymaterialthatmayberequestedpursuanttoapplicableantitrustlaw,includingtheantitrustlawsofGermany;
• promptlynotifytheotherpartiesofanynoticefromanypersonorgovernmentalauthorityallegingthattheconsentofsuchpersonisormayberequiredinconnectionwiththetransactionscontemplatedbytheMergerAgreement;
• keeptheotherpartiesapprisedofthecontentandstatusofanycommunicationswith,andcommunicationsfrom,anygovernmentalauthoritywithrespecttothetransactionscontemplatedbytheMergerAgreement,includingpromptlynotifyingtheotherpartiesofanymaterialcommunicationitoranyofitsaffiliatesreceivesfromanygovernmentalauthorityrelatingtoanyrevieworinvestigationofthetransactionscontemplatedbytheMergerAgreementundertheHSRActoranyapplicablenon-UnitedStatesantitrustlawsandpermittingtheotherpartiestoreviewinadvance(andconsideringanycommentsmadebytheotherpartyinrelationto)anyproposedsubstantivecommunicationbysuchpartytoanygovernmentalauthorityrelatingtosuchmatters;
• coordinateandcooperatefullywitheachotherinexchangingsuchinformationandprovidingsuchassistanceastheotherpartymayreasonablyrequestinconnectionwiththeforegoingandinseekingearlyterminationofanyapplicablewaitingperiods,includingundertheHSRAct;and
• provideeachotherwithcopiesofallcorrespondence,filingsorcommunicationsbetweenthemoranyoftheirrepresentatives,ontheonehand,andanygovernmentalauthorityormembersofitsstaff,ontheotherhand,withrespecttotheMergerAgreementandthetransactionscontemplatedthereby,subjecttocertainlimitations.
Noneofthepartieswillagreetoparticipateinanysubstantivemeeting,telephonecallordiscussionwithanygovernmentalauthorityinrespectofanysubmissions,filings,investigation(includinganysettlementoftheinvestigation)orotherinquiryrelatingtothetransactionscontemplatedbytheMergerAgreementunlessitconsultswiththeotherpartiesinadvanceand,totheextentpermittedbysuchgovernmentalauthority,givestheotherpartiestheopportunitytoattendandparticipateatsuchmeeting,telephonecallordiscussion.
Textron,afterpriorconsultationwithArcticCat(totheextentpracticable),willhavetheprincipalresponsibilityfordevisingandimplementingthestrategyforobtaininganynecessaryantitrust,competitionorinvestmentreviewclearances,andwilltaketheleadinallmeetingsandcommunicationswithanygovernmentalauthorityinconnectionwithobtaininganynecessaryantitrust,competitionorinvestmentreviewclearances.
NothingintheMergerAgreementwillrequire,orbeconstruedtorequire,TextronoranyaffiliateofTextronto(andArcticCatwillnot,withoutthepriorwrittenconsentofTextron,whichconsentmaybewithheldforanyreason)agreeto:
• anysale,license,divestitureorotherdispositionorholdingseparateofanycapitalstock,businesses,assets,propertiesorotherinterestsofTextron,ArcticCat,oranyoftheirrespectiveaffiliates;
• theimpositionofanylimitation,restrictionorconditionontheabilityofTextron,ArcticCat,oranyoftheirrespectiveaffiliatestoconducttheirrespectivebusinessesorown,acquire,holdorexercisefullrightsofownershipofanycapitalstock,businesses,assets,propertiesorotherinterests;or
58
• theimpositionofanylimitation,restrictionorconditiononTextron,ArcticCat,oranyoftheirrespectiveaffiliatesunderanyantitrustlaws.
Shareholder Litigation
ArcticCathasagreedtoprovideTextronwiththeopportunitytoparticipateinthedefenseorsettlementofanyshareholderlitigationbroughtbyanyshareholderofArcticCatagainstArcticCatand/oritsdirectorsorexecutiveofficersrelatingtothetransactionscontemplatedbytheMergerAgreement,whethercommencedpriortooraftertheexecutionanddeliveryoftheMergerAgreement.ArcticCatwillnotsettleoroffertosettleanysuchlitigationwithoutthepriorwrittenconsentofTextron.
Other Covenants and Agreements
TheMergerAgreementcontainscertainothercovenantsandagreements,includingcovenantsrelatingto:
• cooperationbetweenTextronandArcticCatinthepreparationoftheOffer,ofwhichthisScheduleTOformsapart,theSchedule14D-9,ifapplicable,theproxystatement,ifnecessary,andotherrequiredfilings;
• subjecttocertainlimitations,reasonableaccesstoinformationaboutArcticCattobemadeavailableuponTextron'srequest;
• consultationbetweenArcticCatandTextronpriortomakinganypublicstatementsrelatingtotheMergerAgreementandthetransactionscontemplatedthereby;
• delistingofArcticCatCommonStockfromNASDAQandderegisteringofArcticCatCommonStockundertheExchangeAct;
• promptlynotifyingtheotherpartyoftheoccurrenceofaneventthatwouldorwouldbereasonablylikelyto(i)preventormateriallydelaytheconsummationofthetransactionscontemplatedbytheMergerAgreementor(ii)resultinthefailureofanyconditionsetforthintheMergerAgreementanddescribedin"ConditionstotheCompletionoftheMerger"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchasetobesatisfiedorreceiptofanynoticeorothercommunicationfromanygovernmentalauthorityoranysecuritiesmarketinconnectionwiththetransactionscontemplatedbytheMergerAgreement;
• ArcticCatconsulting,ifpracticable,withTextronpriortomakingpubliclyavailableitsfinancialresultsforanyperiodafterthedateoftheMergerAgreementandpriortofilinganyreportordocumentwiththeSECafterthedateoftheMergerAgreement;
• priortotheEffectiveTime,uponTextron'srequest,ArcticCatcausinganydirectororofficerofArcticCatandeachofitssubsidiariestoexecuteanddeliveralettereffectuatinghisorherresignationasadirectororofficer,asthecasemaybe,ofsuchentityeffectiveasoftheEffectiveTime;
• ArcticCatundertakingcertainactionsatleasttwo(2)businessdayspriortotheexpectedAcceptanceTimeortheMergerClosing,asrequestedbyTextronafterthedateoftheMergerAgreement,relatingtotherepaymentinfullofallobligationsundertheExistingCreditAgreement;and
• ArcticCatnotifyingTextronpromptly(andinanyeventwithinfive(5)calendardays)inwritingofanymaterialinvestigationsordirectivesregardinganyproductproduced,soldordistributedbyoronbehalfofArcticCatoranyofitssubsidiariescommenced,issuedorthreatenedin
59
writingbycertaingovernmentalauthoritiesandanymaterialnoticesreceivedbyArcticCatoranyofitssubsidiariesfromcertaingovernmentalauthoritiesregardingthesame.
Conditions to the Completion of the Merger
ThecompletionofthetransactionscontemplatedbytheMergerAgreementdependsuponthesatisfactionorwrittenwaiverofanumberofconditions,allofwhich,totheextentpermittedbyapplicablelaw,maybewaivedbyTextron,PurchaserorArcticCat,asapplicable.
ThefollowingconditionsmustbesatisfiedorwaivedbeforeTextron,PurchaserorArcticCatisobligatedtocompletetheMerger:
• iftheadoptionoftheMergerAgreementandapprovaltoconsummatetheMergerbytheshareholdersofArcticCatarerequiredbyapplicablelaw,theshareholdersofArcticCatshallhaveadoptedtheMergerAgreementandapprovedtheconsummationoftheMerger;
• Purchasershallhaveacceptedforpaymentandpaidfor,orcausetobeacceptedforpaymentandpaidfor,allSharesvalidlytenderedandnotproperlywithdrawnpursuanttotheOffer(includingpursuanttotheSubsequentOfferingPeriodprovidedbyPurchaserpursuanttotheMergerAgreement);and
• nogovernmentalauthorityofcompetentjurisdictionshallhaveenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororder(whethertemporary,preliminaryorpermanent)thatisineffectandenjoinsorotherwiseprohibitsormakesillegaltheconsummationofthetransactionsonthetermscontemplatedbytheMergerAgreement.
SubjecttoanyapplicablerulesandregulationsoftheSEC,includingRule14e-1(c)promulgatedundertheExchangeAct,PurchaserisnotrequiredtoacceptforpaymentorpayforanyvalidlytenderedSharesintheOfferandmaydelaytheacceptanceforpaymentorthepaymentforanyvalidlytenderedSharesif:
• theMinimumConditionhasnotbeensatisfiedattheExpirationDate;
• thewaitingperiodapplicabletotheconsummationoftheOfferundertheHSRActhasnotexpiredorbeenterminatedatorpriortotheExpirationDateandanyconsent,approval,orotherauthorizationapplicabletotheconsummationoftheOfferundertheantitrustlawsofGermanyhasnotbeenreceivedorgranted;or
• atanytimeonorafterthedateoftheMergerAgreementandpriortotheExpirationDate,anyofthefollowinghasoccurredandiscontinuingattheExpirationDate:
• agovernmentalauthorityofcompetentjurisdictionhasenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororder(whethertemporary,preliminaryorpermanent)thatisineffectandenjoinsorotherwiseprohibitsormakesillegaltheconsummationofthetransactionscontemplatedbytheMergerAgreementonthetermscontemplatedbytheMergerAgreement(providedthatTextronandPurchaserhaveusedtheirreasonablebesteffortstoopposeanysuchactionbysuchgovernmentalauthorityinaccordancewiththetermsoftheMergerAgreement);
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoArcticCat'ssubsidiaries,organizationaldocuments,indebtedness,agreementsrelatedtothedisposition,votingordividendsoftheequityinterestsofArcticCatoranyofitssubsidiaries,authoritytoexecuteanddelivertheMergerAgreementandtoperformitsobligationsthereunderandtoconsummatethetransactionsascontemplatedbytheMergerAgreement,absenceofaCompanyMaterialAdverseEffectsinceMarch31,2016throughthedateoftheMergerAgreement,approvalsbytheArcticCatBoardandshareholdersof
60
ArcticCat,takeoverlawsandbrokersshall,ifqualifiedbymaterialityorCompanyMaterialAdverseEffect,failtobetrueandcorrectinallrespectsor,ifnotsoqualified,shallfailtobetrueandcorrectinallmaterialrespects;
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoitsanditssubsidiaries'organizationandqualificationshallfailtobetrueandcorrectinallrespects;
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoArcticCat'scapitalizationshallfailtobetrueandcorrectinallrespects,exceptwherethefailuretobesotrueandcorrectinallrespectshasnotresultedandwouldnotreasonablybeexpectedtoresultinanincreaseintheaggregateconsiderationrequiredtobepaidbyPurchaserundertheMergerAgreement,individuallyorintheaggregate,bymorethan$500,000;
• theremainingrepresentationsandwarrantiesmadebyArcticCatintheMergerAgreement(withoutgivingeffecttoqualificationssetforththereinrelatingtomateriality,CompanyMaterialAdverseEffectorotherqualificationbasedontheword"material"orsimilarphrases)shallfailtobetrueandcorrectinanyrespect,exceptwherethefailureofsuchrepresentationsandwarrantiesofArcticCattobesotrueandcorrectwouldnothaveaCompanyMaterialAdverseEffect;
• ArcticCatbreachedorfailedtoperformorcomply,inanymaterialrespect,withanyagreementorcovenanttobeperformedorcompliedwithbyitundertheMergerAgreementandsuchbreachorfailureshallnothavebeencuredpriortotheExpirationDate;
• thereshallhaveoccurredsincethedateoftheMergerAgreementaCompanyMaterialAdverseEffect;
• TextronandPurchaserhavefailedtoreceiveacertificateexecutedbyArcticCat'sChiefExecutiveOfficerorPresidentonbehalfofArcticCat,datedasoftheExpirationDate,totheeffectthattheconditionssetforthinthesecondthroughseventhbulletpointsabovehavenotbeensatisfied;or
• theMergerAgreementhasbeenterminatedinaccordancewithitsterms.
TheforegoingconditionsareforthesolebenefitofTextronandPurchaserandmaybeassertedbyTextronorPurchaserregardlessofthecircumstancesgivingrisetosuchconditionsandmaybewaivedinwriting,aspermittedbyapplicablelaw,byTextronorPurchaserinwholeorinpartatanytimeandfromtimetotimeintheirsolediscretion,ineachcasesubjecttothetermsoftheMergerAgreement.
Termination of the Merger Agreement
TheMergerAgreementmaybeterminatedinthefollowingways:
• bymutualwrittenconsentofTextronandArcticCatatanytimepriortotheAcceptanceTime;
• byeitherTextronorArcticCatiftheAcceptanceTimehasnotoccurredonorbeforeMay24,2017,exceptthattherighttosoterminatetheMergerAgreementwillnotbeavailabletoTextronorArcticCatifitsfailuretofulfillanyagreementsorcovenantsundertheMergerAgreementhasbeentheprimarycauseorprimarilyresultedinthefailureoftheAcceptanceTimetooccuronorbeforesuchdate;
• byeitherTextronorArcticCatiftheOfferexpiresasaresultofthenon-satisfactionofanyconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseoristerminatedorwithdrawnpursuantto
61
itstermswithoutanySharesbeingpurchasedthereunder,exceptthattherighttosoterminatetheMergerAgreementwillnotbeavailabletoTextronorArcticCatifitsbreachoftheMergerAgreementhasbeentheprimarycauseorprimarilyresultedinthenon-satisfactionofanyconditiontotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseortheterminationorwithdrawaloftheOfferpursuanttoitstermswithoutanySharesbeingpurchasedundertheOffer;
• byeitherTextronorArcticCatifanygovernmentalauthorityofcompetentjurisdictionhasenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororderpermanentlyenjoiningorotherwiseprohibitingormakingillegal(i)priortotheAcceptanceTime,theacceptanceforpaymentof,orpaymentfor,SharespursuanttotheOfferor(ii)priortotheEffectiveTime,theMerger,andsuchdecision,injunction,decree,ruling,laworordershallhavebecomefinalandnon-appealable,exceptthattherighttosoterminatetheMergerAgreementwillnotbeavailabletoTextronorArcticCatifitsbreachoftheMergerAgreementhasbeentheprimarycauseorprimarilyresultedintheissuanceofsuchdecision,injunction,decree,ruling,lawororder;
• byArcticCatpriortotheAcceptanceTimeif,foranyreason,PurchaserhasfailedtocommencetheOfferwithintwenty(20)calendardaysafterthedateoftheMergerAgreement,exceptArcticCatmaynotsoterminatetheMergerAgreementifArcticCathasnotprovidedTextronwithaSchedule14D-9thatArcticCatispreparedtofile,withoutfurtherrevisions;
• byArcticCatpriortotheAcceptanceTimeiftheArcticCatBoarddeterminestoenterintoadefinitiveagreementwithrespecttoaSuperiorProposal,providedthatArcticCathascompliedwiththenon-solicitationprovisionssetforthintheMergerAgreementanddescribedin"ThirdPartyAcquisitionProposals"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,andpriorto,andasaconditiontotheeffectivenessofsuchtermination,ArcticCathaspaidtoTextrontheCompanyTerminationFee(asdefinedbelow);
• byArcticCatpriortotheAcceptanceTimeifTextronorPurchaserhasbreachedanyofitsrepresentationsorwarrantiesorfailedtoperformanyofitscovenantsoragreementssetforthintheMergerAgreement,whichbreachorfailuretoperform(i)hadaParentMaterialAdverseEffectand(ii)isincapableofbeingcuredpriortoMay24,2017or,ifcurablebysuchdate,isnotcuredwithintheearlierofthirty(30)calendardaysafterwrittennoticethereofisgivenbyArcticCattoTextronandMay24,2017,exceptthattherighttosoterminatetheMergerAgreementwillnotbeavailabletoArcticCatifitistheninmaterialbreachofanyofitsrepresentations,warranties,covenantsoragreementsundertheMergerAgreement;
• byTextronpriortotheAcceptanceTimeiftheArcticCatBoardeffectedanAdverseAction(asdefinedbelow)orArcticCatoranyofitssubsidiariesentersintoanAcquisitionAgreement;
• byTextronpriortotheAcceptanceTimeifArcticCathasbreachedanyofitsrepresentationorwarrantiesorfailedtoperformanyofitscovenantsoragreementssetforthintheMergerAgreement,whichbreachorfailuretoperform(i)wouldgiverisetothefailureofanyconditiontotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"ofthisOffertoPurchaseand(ii)isincapableofbeingcuredpriortoMay24,2017,or,ifcurablebysuchdate,isnotcuredwithintheearlierofthirty(30)calendardaysafterwrittennoticethereofisgivenbyTextrontoArcticCatandMay24,2017,exceptthattherighttosoterminatetheMergerAgreementwillnotbeavailabletoTextronifeitheritorPurchaseristheninmaterialbreachofanyofitsrepresentations,warranties,covenantsoragreementsundertheMergerAgreement;
62
• byTextronpriortotheAcceptanceTimeifArcticCathasintentionallybreached(orisdeemedtohaveintentionallybreached)itsnon-solicitationobligationssetforthintheMergerAgreementanddescribedin"ThirdPartyAcquisitionProposals"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase;or
• byTextronpriortotheAcceptanceTimeiftherehasbeenaCompanyMaterialAdverseEffectsincethedateoftheMergerAgreementandthesameiscontinuing.
An"AdverseAction"meansthatArcticCatortheArcticCatBoardhas(i)effectedanAdverseRecommendationChange,(ii)failedtoincludetheCompanyBoardRecommendationintheSchedule14D-9ortopermitTextrontoincludetheCompanyBoardRecommendationintheOfferDocuments,(iii)refusedtoaffirmpubliclytheCompanyBoardRecommendationfollowinganyreasonablewrittenrequestbyTextrontoprovidesuchreaffirmation(includingintheeventofanAcquisitionProposalhavingbeenpubliclydisclosed)withintwo(2)businessdaysofsuchrequestor(iv)formallyresolvedtotake,orpubliclyannouncedanintentiontotake,anyoftheforegoingactions.
Termination Fee; Effect of Termination
IftheMergerAgreementisterminatedby(i)ArcticCatinthecircumstancesdescribedinthesixthbulletpointaboveunder"TerminationoftheMergerAgreement"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,thenArcticCatwillpayTextronaterminationfeeinanamountequalto$7,400,000(the"CompanyTerminationFee").
IftheMergerAgreementisterminatedbyTextroninthecircumstancesdescribedintheeighthortenthbulletpointsaboveunder"TerminationoftheMergerAgreement"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,thenArcticCatwillpayTextrontheCompanyTerminationFee.
IftheMergerAgreementisterminatedby(i)TextronorArcticCatinthecircumstancesdescribedinthesecondorthirdbulletpointsaboveunder"TerminationoftheMergerAgreement"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,or(ii)Textroninthecircumstancedescribedintheninthbulletpointaboveunder"TerminationoftheMergerAgreement"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,then,inthecaseofeitherclause(i)or(ii),if(A)atorpriortothedateofterminationoftheMergerAgreement,anAcquisitionProposalhasbeenpubliclyannounced,disclosedorotherwisemadepublicand(B)withintwelve(12)monthsofthedateofterminationoftheMergerAgreement,ArcticCatoranyofitssubsidiariesentersintoadefinitiveagreementwithrespecttoanyAcquisitionProposalorconsummatesanyAcquisitionProposal(ineachcase,whetherornotsuchAcquisitionProposalisthesameAcquisitionProposaldescribedinclause(A)),thenArcticCatwillpayTextrontheCompanyTerminationFee.Fortheavoidanceofdoubt,intheeventthattheMergerAgreementisterminatedbyArcticCatforanyreasonatatimewhenTextronwouldhavehadtherighttoterminatetheMergerAgreement,TextronwillbeentitledtoreceiptoftheCompanyTerminationFeethatwouldhavebeenpayablehadTextronterminatedtheMergerAgreementatsuchtime.Forpurposesofthisparagraph,"AcquisitionProposal"hasthemeaningdescribedabovein"ThirdPartyAcquisitionProposals"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase,exceptthatreferencesto20%inthedefinitionwillbedeemedtobereferencesto50%.
ThepaymenttoTextronoritsdesigneesoftheCompanyTerminationFeeinthecircumstancesdescribedabovewill,exceptinthecaseoffraud,bethesoleandexclusiveremedyofTextronforanylosssufferedbyTextronorPurchaserasaresultofthefailureofthetransactionscontemplatedbytheMergerAgreementtobeconsummatedtotheextentpaidanduponpaymentoftheCompanyTerminationFeeinaccordancewiththetermsoftheMergerAgreement,ArcticCatwillhavenofurtherliabilityorobligationrelatingtoorarisingoutoftheMergerAgreementorthetransactionscontemplatedthereby.
63
Obligations in Event of Termination
Intheeventofaterminationasdescribedabove,theMergerAgreementwillbecomevoidandofnofurtherforceoreffectexceptforcertainsectionsoftheMergerAgreement.SuchterminationwillnotrelieveanypartytotheMergerAgreementofanyliabilityforanyfraudorintentionalbreachofanyrepresentation,warrantyorcovenantorotheragreementcontainedintheMergerAgreementpriortothedateofsuchtermination,inwhichcasetheaggrievedpartywillbeentitledtoallrightsandremediesavailableatlaworinequity.
Expenses
WhetherthetransactionscontemplatedbytheMergerAgreementareorarenotconsummated,allcostsandexpensesincurredinconnectionwiththeMergerAgreementandthetransactionscontemplatedtherebywillbepaidbythepartyincurringsuchcostsandexpenses,subjecttoanypaymentsdescribedin"TerminationFee;EffectofTermination"inthisSection12(a)—"MergerAgreement"ofthisOffertoPurchase.
Amendment
AtanytimepriortotheEffectiveTime,theMergerAgreementmaybeamendedbyTextron,PurchaserandArcticCatbyactiontakenbyoronbehalfoftheirrespectiveboardofdirectors,exceptthataftertheAcceptanceTime,(i)noamendmentmaybemadethatdecreasestheMergerConsiderationand(ii)noamendmentthat,bylaworinaccordancewiththerulesofanyrelevantstockexchanges,requiresapprovalbytheshareholdersofArcticCatmaybemadewithoutsuchshareholderapproval.
Governing Law
TheMergerAgreementisgovernedbyandconstruedinaccordancewiththelawsoftheStateofDelaware,withoutgivingeffecttoanyapplicableprinciplesofconflictoflawsthatwouldcausethelawsofanotherstatetootherwisegoverntheMergerAgreement,excepttotheextentthattheMBCAmandatorilyappliesandgovernstheMerger.
Textron,PurchaserandArcticCathaveagreedthatanysuit,actionorproceedingseekingtoenforceanyprovisionof,orbasedonanymatterarisingoutoforinconnectionwith,theMergerAgreementorthetransactionscontemplatedthereby(whetherbroughtbyanypartytotheMergerAgreementoranyofitsaffiliatesoragainstanypartytotheMergerAgreementoranyofitsaffiliates)willbeheardanddeterminedexclusivelyintheDelawareCourtofChancery.However,iftheDelawareCourtofChancerydoesnothavejurisdictionoversuchAction,suchActionwillbeheardanddeterminedexclusivelyintheUnitedStatesDistrictCourtfortheDistrictofDelaware.
Specific Performance
Textron,PurchaserandArcticCathaveacknowledgedandagreedthateachwouldbeirreparablyharmedifanyoftheprovisionsoftheMergerAgreementarenotperformedinaccordancewiththeirspecifictermsorareotherwisebreached.Accordingly,Textron,PurchaserandArcticCatagreethat,intheeventofanybreachorthreatenedbreachbyanyotherpartyofanycovenantorobligationcontainedintheMergerAgreement,thenon-breachingpartywillbeentitled(inadditiontoanyotherremedythatmaybeavailabletoitwhetherinlaworequity)toseek(inadditiontoanyotherremedythatmaybeavailabletoitwhetherinlaworequity)(i)anorderofspecificperformancetoenforcetheobservanceandperformanceofsuchcovenantorobligationand(ii)aninjunctionrestrainingsuchbreachorthreatenedbreach.
64
(b) Confidentiality Agreement .
InconnectionwithTextron'sevaluationofthepotentialbusinesscombinationthatresultedintheOffer,TextronandArcticCatenteredintoaconfidentialityagreementonOctober6,2016(the"Confidentiality Agreement ").PursuanttotheConfidentialityAgreement,subjecttocertaincustomaryexceptions,Textronagreedtokeepconfidentialallnon-publicinformationfurnishedbyArcticCattoTextron.Textronalsoagreedthatthenon-publicinformationfurnishedtoTextronwouldbeusedsolelyforthepurposeofevaluatingthepotentialbusinesscombinationthatresultedintheexecutionoftheMergerAgreementandthelaunchingoftheOffer.IfrequestedbyArcticCat,Textronisrequiredtoreturnordestroythewrittennon-publicinformationfurnishedtoTextronundertheConfidentialityAgreement(exceptforonecopytoberetainedforcomplianceandregulatorypurposes).TheConfidentialityAgreementalsoprovidesthatTextronanditsaffiliatesmaynotsolicitArcticCat'semployeesforthetermoftheConfidentialityAgreementandforaperiodofeighteen(18)monthsfollowingtheexpirationorterminationoftheConfidentialityAgreement.Textronalsoagreedthat,forthetermoftheConfidentialityAgreementandforaperiodofeighteen(18)monthsfollowingtheexpirationorterminationoftheConfidentialityAgreement,itwouldnotproposeoroffertoenterintoanymergerorotherextraordinarytransactionorparticipateinanychangeofcontrolofArcticCat,ordiscloseanysuchintentiontodoso,withoutthepriorwrittenconsentofArcticCat'sBoardandMinnesotaActCommittee.TextronalsoagreedtoindemnifyArcticCatdamagesarisingfromamaterialbreachoftheConfidentialityAgreement.TheConfidentialityAgreementexpiresonOctober6,2017.
TheabovesummaryofcertainprovisionsoftheConfidentialityAgreementisqualifiedinitsentiretybyreferencetotheConfidentialityAgreementitself,whichisincorporatedhereinbyreferenceandacopyofwhichisfiledasExhibit (d)(2) .
13. Source and Amount of Funds
TheOfferisnotconditionedontheprocurementofanyfinancing.PurchaserestimatesthatthetotalamountoffundsrequiredtopurchasealloutstandingSharespursuanttotheOfferandtocompletetheMerger,topayrelatedfeesandexpensesandtorepayoutstandingindebtednessundertheExistingCreditAgreementwillbeapproximately$317million.PurchaserintendstoobtainsuchfundsbymeansofacapitalcontributionfromTextron,andTextronintendstoobtainsuchfundsfromitscashonhand.
PurchaserbelievesthatthefinancialconditionofTextronandPurchaserisnotmaterialtoadecisionbyaholderofShareswhethertosell,holdortenderSharesintheOfferbecause(a)theOfferisbeingmadeforalloutstandingSharessolelyforcash,(b)Purchaser,throughitsparentcompany,Textron,willhavesufficientfundsandfinancialresourcesavailabletopurchaseallSharesvalidlytenderedintheOfferoracquiredintheMerger,(c)theOfferisnotsubjecttoanyfinancingconditionand(d)ifPurchaserconsummatestheOffer,TextronwillacquireanyremainingSharesforthesamecashpriceintheMerger.
14. Dividends and Distributions
TheMergerAgreementprovidesthat,withoutthepriorwrittenconsentofTextronorasmayberequiredbylaw,ArcticCatwillnot,andwillnotpermitanyofitssubsidiariesto,priortotheEffectiveTime,directlyorindirectly,declare,setaside,makeorpayanydividendorotherdistribution(whetherpayableincash,stock,propertyoracombinationthereof)withrespecttoanyofitscapitalstock,otherthandividendsorotherdistributionspaidbyanydirectorindirectwhollyownedsubsidiaryofArcticCattoArcticCatoranyotherdirectorindirectwhollyownedsubsidiaryofArcticCat.SeeSection12—"MergerAgreement;OtherAgreements"ofthisOffertoPurchase.
65
15. Conditions of the Offer
SubjecttoanyapplicablerulesandregulationsoftheSEC,includingRule14e-1(c)promulgatedundertheExchangeAct,PurchaserisnotrequiredtoacceptforpaymentorpayforanyvalidlytenderedSharesintheOfferandmaydelaysuchacceptanceorpaymentif:
• theMinimumConditionhasnotbeensatisfiedattheExpirationDate;
• thewaitingperiodapplicabletotheconsummationoftheOfferundertheHSRActhasnotexpiredorbeenterminatedatorpriortotheExpirationDateandanyconsent,approval,orotherauthorizationapplicabletotheconsummationoftheOfferundertheantitrustlawsofGermanyhasnotbeenreceivedorgranted;or
• atanytimeonorafterthedateoftheMergerAgreementandpriortotheExpirationDate,anyofthefollowinghasoccurredandiscontinuingattheExpirationDate:
• agovernmentalauthorityofcompetentjurisdictionhasenacted,issued,promulgated,enforcedorenteredanydecision,injunction,decree,ruling,lawororder(whethertemporary,preliminaryorpermanent)thatisineffectandenjoinsorotherwiseprohibitsormakesillegaltheconsummationofthetransactionscontemplatedbytheMergerAgreementonthetermscontemplatedbytheMergerAgreement(providedthatTextronandPurchaserhaveusedtheirreasonablebesteffortstoopposeanysuchactionbysuchgovernmentalauthorityinaccordancewiththetermsoftheMergerAgreement);
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoArcticCat'ssubsidiaries,organizationaldocuments,indebtedness,agreementsrelatedtothedisposition,votingordividendsoftheequityinterestsofArcticCatoranyofitssubsidiaries,authoritytoexecuteanddelivertheMergerAgreementandtoperformitsobligationsthereunderandtoconsummatethetransactionsascontemplatedbytheMergerAgreement,absenceofaCompanyMaterialAdverseEffectsinceMarch31,2016throughthedateoftheMergerAgreement,approvalsbytheArcticCatBoardandshareholdersofArcticCat,takeoverlawsandbrokersshall,ifqualifiedbymaterialityorCompanyMaterialAdverseEffect,failtobetrueandcorrectinallrespectsor,ifnotsoqualified,shallfailtobetrueandcorrectinallmaterialrespects;
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoitsanditssubsidiaries'organizationandqualificationshallfailtobetrueandcorrectinallrespects;
• therepresentationsandwarrantiesmadebyArcticCatintheMergerAgreementrelatingtoArcticCat'scapitalizationshallfailtobetrueandcorrectinallrespects,exceptwherethefailuretobesotrueandcorrectinallrespectshasnotresultedandwouldnotreasonablybeexpectedtoresultinanincreaseintheaggregateconsiderationrequiredtobepaidbyPurchaserundertheMergerAgreement,individuallyorintheaggregate,bymorethan$500,000;
• theremainingrepresentationsandwarrantiesmadebyArcticCatintheMergerAgreement(withoutgivingeffecttoqualificationssetforththereinrelatingtomateriality,CompanyMaterialAdverseEffectorotherqualificationbasedontheword"material"orsimilarphrases)shallfailtobetrueandcorrectinanyrespect,exceptwherethefailureofsuchrepresentationsandwarrantiesofArcticCattobesotrueandcorrectwouldnothaveaCompanyMaterialAdverseEffect;
• ArcticCatbreachedorfailedtoperformorcomply,inanymaterialrespect,withanyagreementorcovenanttobeperformedorcompliedwithbyitundertheMerger
66
AgreementandsuchbreachorfailureshallnothavebeencuredpriortotheExpirationDate;
• thereshallhaveoccurredsincethedateoftheMergerAgreementaCompanyMaterialAdverseEffect;
• TextronandPurchaserhavefailedtoreceiveacertificateexecutedbyArcticCat'sChiefExecutiveOfficerorPresidentonbehalfofArcticCat,datedasoftheExpirationDate,totheeffectthattheconditionssetforthinthesecondthroughseventhbulletpointsabovehavenotbeensatisfied;or
• theMergerAgreementhasbeenterminatedinaccordancewithitsterms.
TheforegoingconditionsareforthesolebenefitofTextronandPurchaserandmaybeassertedbyTextronorPurchaserregardlessofthecircumstancesgivingrisetosuchconditionsandmaybewaivedinwriting,aspermittedbyapplicablelaw,byTextronorPurchaserinwholeorinpartatanytimeandfromtimetotimeintheirsolediscretion,ineachcasesubjecttothetermsoftheMergerAgreement.
16. Legal Matters; Required Regulatory Approvals
General. ExceptassetforthinthisOffertoPurchase,basedonitsexaminationofpubliclyavailableinformationfiledbyArcticCatwiththeSECandotherpubliclyavailableinformationconcerningArcticCat,neitherTextronnorPurchaserisawareofanylicensesorregulatorypermitsthatappeartobematerialtothebusinessofArcticCatanditssubsidiaries,takenasawhole,thatmightbeadverselyaffectedbyPurchaser'sacquisitionofSharesintheOffer,orofanyfilings,approvalsorotheractionsbyorwithanygovernmentalauthorityoradministrativeorregulatoryagencythatwouldberequiredforouracquisitionorownershipoftheSharespursuanttotheOffer.Shouldanysuchapprovalorotheractionberequired,TextronandPurchaserexpecttoseeksuchapprovaloraction,exceptasdescribedinSection16—"LegalMatters;RequiredRegulatoryApprovals—StateTakeoverLaws"ofthisOffertoPurchase.Therecanbenoassurancethatanysuchapprovalorotheraction,ifrequired,wouldbeobtainedorwouldbeobtainedwithoutsubstantialconditions,orthatadverseconsequencestoArcticCat'sbusinessmightnotresult.ExceptasotherwisedescribedinthisOffertoPurchase,althoughneitherTextronnorPurchaserpresentlyintendstodelaytheacceptanceforpaymentoforpaymentforSharestenderedintheOfferpendingtheoutcomeofanysuchmatter,therecanbenoassurancethatanysuchapprovalorotheraction,ifneeded,wouldbeobtainedorwouldbeobtainedwithoutsubstantialconditionsorthatthefailuretoobtainanysuchapprovalorotheractionmightnotresultinconsequencesadversetoArcticCat'sbusinessorthatcertainpartsofArcticCat'sbusinessmightnothavetobedisposedoforothersubstantialconditionscompliedwithintheeventthatsuchapprovalswerenotobtainedorsuchotheractionswerenottakenorinordertoobtainanysuchapprovalorotheraction.
State Takeover Laws. Anumberofstates(includingMinnesota,whereArcticCatisincorporated)haveadoptedtakeoverlawsandregulationswhichpurport,tovaryingdegrees,tobeapplicabletoattemptstoacquiresecuritiesofcorporationswhichareincorporatedinsuchstatesorwhichhavesubstantialassets,shareholders,principalexecutiveofficesorprincipalplacesofbusinesstherein.
ArcticCatisincorporatedunderthelawsoftheStateofMinnesota.UndertheMBCAandotherMinnesotastatutes,ArcticCatissubjecttoseveralstatetakeoverlaws.Asdescribedbelow,ArcticCathastakenappropriateactioninconnectionwithitsapprovaloftheMergerAgreementandtheconsummationofthetransactionscontemplatedtherebysothattheselawsdonotaffecttheabilityofTextronandPurchasertoconsummatetheOfferortheMerger.
Minnesota Control Share Acquisition Act. Section302A.671oftheMBCA,whichprovidesthatapersonwhobecomesthebeneficialownerof20%ormoreofthevotingpower(withrespecttotheelectionofdirectors)ofthesharesofan"issuingpubliccorporation"(a"ControlShareAcquisition")
67
mayexerciseonlyanaggregateof20%ofthevotingpowerofthecorporation'ssharesintheabsenceofspecialapprovalbytheshareholders.However,aControlShareAcquisitionundertheMBCAspecificallyexcludes(i)anacquisitionundertheMBCAprovisionsrelatedtomergersifthecorporationisapartytothetransactionand(ii)anacquisitionpursuanttoacashtenderofferorexchangeofferforallsharesofthecorporation'svotingstock.OnJanuary23,2017,theArcticCatCommitteeofDisinterestedDirectorsapprovedtheacquisitionofsharesbyPurchasercontemplatedbytheMergerAgreement,towhichArcticCatisaparty,forpurposesoftheMBCA;therefore,therestrictionsofSection302A.671oftheMBCAareinapplicabletotheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger.
Minnesota Business Combination Act. ArcticCatiscurrentlysubjecttoSection302A.673oftheMBCA,whichprohibitsapubliclyheldMinnesotacorporation,suchasArcticCat,fromengaginginany"businesscombination,"includingamerger,withan"InterestedShareholder"(definedgenerallyasanybeneficialowner,directlyorindirectly,of10%ormoreofthevotingpoweroftheoutstandingsharesofthatcorporationentitledtovote)foraperiodoffour(4)yearsafterthedateofthetransactioninwhichthepersonbecameanInterestedShareholder,unless,amongotherthings,acommitteeofthatcorporation'sboardofdirectorscomprisedsolelyofoneormoredisinteresteddirectorshasgivenitsapprovalofeitherthebusinesscombinationorthetransactionthatresultedintheshareholderbecominganInterestedShareholderpriortotheshareholderbecominganInterestedShareholder.UndertheMBCA,adirectororpersonis"disinterested"ifthedirectororpersonisneitheranofficernoranemployee,norhasbeenanofficeroremployeewithinfive(5)yearsprecedingtheformationofthecommittee,ofthepubliclyheldMinnesotacorporationorofarelatedorganization.OnJanuary23,2017,theArcticCatCommitteeofDisinterestedDirectorsapprovedtheacquisitionofsharesbyPurchasercontemplatedbytheMergerAgreementforpurposesoftheMBCA;therefore,therestrictionsofSection302A.673oftheMBCAareinapplicabletotheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger.
Minnesota "Fair Price" Provision. MBCASection302A.675providesthatanofferormaynotacquiresharesofaMinnesotapubliclyheldcorporationfromashareholderwithintwo(2)yearsfollowingtheofferor'slastpurchaseofsharesofthesameclasspursuanttoatakeoveroffer,including,butnotlimitedto,acquisitionsmadebypurchase,exchangeormerger,unlessthesellingshareholder`isafforded,atthetimeoftheproposedacquisition,areasonableopportunitytodisposeofthesharestotheofferoruponsubstantiallyequivalenttermsasthoseprovidedintheearliertakeoveroffer.Theprovisiondescribedabovedoesnotapplyiftheproposedacquisitionofsharesisapproved,beforethepurchaseofanysharesbytheofferorpursuanttotheearliertakeoveroffer,byacommitteeoftheboardofdirectorsofthecorporation,comprisedsolelyofdirectorswho:(a)arenot,norhavebeenintheprecedingfive(5)years,officersoremployeesofthecorporationorarelatedorganization,(b)arenottheofferorsinthetakeoverofferoranyaffiliatesorassociatesoftheofferor,(c)werenotnominatedforelectionasdirectorsbytheofferororanyaffiliatesorassociatesoftheofferorand(d)weredirectorsatthetimeofthefirstpublicannouncementoftheearliertakeoverofferorwerenominated,elected,orrecommendedforelectionasdirectorsbyamajorityofthedirectorswhoweredirectorsatthattime.OnJanuary23,2017,theArcticCatCommitteeofDisinterestedDirectorsapprovedthetakeoverofferbyPurchasercontemplatedintheMergerAgreementforpurposesoftheFairPriceProvision;therefore,therestrictionsofSection302A.675areinapplicabletotheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMerger.
Minnesota Takeover Disclosure Law. TheMinnesotaTakeoverDisclosureLaw(the"TakeoverDisclosureStatutes"),MinnesotaStatutesSections80B.01-80B.13,byitstermsrequiresthefilingofaregistrationstatement(the"MinnesotaRegistrationStatement")withspecifieddisclosureswiththeMinnesotaCommissionerofCommerce(the"CommissionerofCommerce")withrespecttoanytenderofferforsharesofacorporation,suchasArcticCat,that(a)hasitsprincipalplaceofbusinessorprincipalexecutiveofficeinMinnesota,orownsandcontrolsassetsinMinnesotahavingafairmarket
68
valueofatleast$1,000,000and(b)hasacertainnumberorpercentageofshareholdersresidentinMinnesotaoraspecifiedpercentageofitssharesownedbyMinnesotaresidents.PurchaserfiledtheMinnesotaRegistrationStatementwiththeCommissionerofCommerceonFebruary2,2017.AlthoughtheCommissionerofCommercedoesnothaveanapprovalrightwithrespecttotheOffer,theCommissionerofCommercewillreviewtheMinnesotaRegistrationStatementfortheadequacyofdisclosureandisempoweredtosuspendsummarilytheOfferinMinnesotawithinthree(3)businessdaysofthefilingiftheCommissionerofCommercedeterminesthattheregistrationstatementdoesnot(orthematerialprovidedtobeneficialownersoftheSharesresidinginMinnesotadoesnot)provideadequatedisclosureundertheTakeoverDisclosureStatutes.Ifthissummarysuspensionoccurs,theCommissionerofCommercemustholdahearingwithinten(10)calendardaysofthesummarysuspensiontodeterminewhethertopermanentlysuspendtheOfferinMinnesota,subjecttocorrectivedisclosure.IftheCommissionerofCommercetakesactiontosuspendtheeffectivenessoftheOffer,thisactionmayhavetheeffectofsignificantlydelayingtheOffer.InfilingtheMinnesotaRegistrationStatement,PurchaserdoesnotconcedethatsomeoralloftheprovisionsoftheTakeoverDisclosureStatutesareapplicable,valid,enforceableorconstitutional.
Other State Takeover Laws. TextronandPurchaserarenotawareofanyotherstatetakeoverlawsorregulationswhichareapplicabletotheOfferortheMergerandhavenotattemptedtocomplywithanyotherstatetakeoverlawsorregulations.IfanygovernmentofficialorthirdpartyshouldseektoapplyanystatetakeoverlawtotheOfferortheMergerorotherbusinesscombinationbetweenTextronandPurchaseroranyoftheiraffiliatesandArcticCat,TextronandPurchaserwilltakesuchactionasthenappearsdesirable,whichactionmayincludechallengingtheapplicabilityorvalidityofsuchstatuteinappropriatecourtproceedings.IntheeventitisassertedthatoneormorestatetakeoverstatutesisapplicabletotheOfferortheMergerandanappropriatecourtdoesnotdeterminethatitisinapplicableorinvalidasappliedtotheOfferortheMerger,TextronandPurchasermightberequiredtofilecertaininformationwith,ortoreceiveapprovalsfrom,therelevantstateauthoritiesorholdersofShares,andTextronandPurchasermightbeunabletoacceptforpaymentorpayforSharestenderedpursuanttotheOffer,orbedelayedincontinuingorconsummatingtheOfferortheMerger.SeeSection15—"ConditionsoftheOffer"ofthisOffertoPurchase.
The foregoing discussion of certain provisions of the MBCA is not a complete description of the MBCA or of those provisions thereof and is qualified inits entirety by reference to the MBCA.
Antitrust Compliance. UndertheHart-Scott-RodinoAntitrustImprovementsActof1976,asamended,andtherulesandregulationsthathavebeenpromulgatedthereunder(the"HSRAct"),certaintransactionsmaynotbeconsummateduntilnotificationshavebeengivenandcertaininformationhasbeenfurnishedtotheAntitrustDivisionoftheU.S.DepartmentofJustice(the"AntitrustDivision")andtheFederalTradeCommission(the"FTC")andcertainwaitingperiodrequirementshaveexpiredorbeenterminated.AlthoughTextrondoesnotexpecttheseoranyotherregulatoryauthoritiestoraiseanysignificantconcernsinconnectionwiththeirreviewofthetransactionscontemplatedbytheMergerAgreement,therecanbenoassurancethatallapplicablewaitingperiodsdescribedabovewillexpireorbeterminated,and,iftheydoexpireorareterminatedtherecanbenoassuranceastothetimingortheabsenceofanylitigationchallengingthetransactions.TheNotificationandReportFormwasfiledonJanuary31,2017.Accordingly,therequiredfifteen(15)daywaitingperiodwillexpireat11:59P.M.NewYorkCitytimeonFebruary15,2017.
TheacquisitionofSharespursuanttotheOfferissubjecttotheGermanActagainstRestraintsonCompetition,andmaybeconsummatedonlyiftheacquisitionisapprovedbytheGermanFederalCartelOffice(the"FCO"),eitherbywrittenapprovalorbyexpirationofaone-monthreviewperiod,unlesstheFCOnotifiesTextronwithintheone-monthreviewperiodoftheinitiationofanin-depthinvestigation.TextronfiledanotificationonJanuary30,2017withrespecttotheOffer.Theone-monthreviewperiodisscheduledtoexpireonFebruary28,2017.IftheFCOinitiatesanin-depthinvestigation,thereviewperiodisextendedforanadditionalthree(3)months,andtheacquisitionof
69
SharesundertheOffermaynotbeconsummatedunlesstheacquisitionisapprovedbytheFCO,eitherbywrittenapprovalorbyexpirationofthereviewperiodassoextended.
Otherthanthefilingsdescribedabove,Textronisnotawareofanymandatoryregulatoryfilingstobemade,approvalstobeobtainedorrequiredwaitingperiodstoexpireinordertoconsummatetheOfferortheothertransactionscontemplatedbytheMergerAgreement.Ifanysuchapprovaloractionisneeded,however,Textronmaynotbeabletoobtainitoranyoftheothernecessaryapprovals.EvenifTextroncouldobtainallnecessaryapprovals,conditionsmaybeplacedontheOfferortheMerger,onthebusinessesofTextronoronthoseofArcticCatthatcouldcausethepartiestofailtoconsummatethetransactions.
AtanytimebeforeorafterPurchaser'sacquisitionofSharespursuanttotheOffer,theAntitrustDivision,theFTC,orothers(includingforeigngovernmentalauthoritieswithjurisdictionovertheparties,statesandprivateparties)couldtakeactionundertheantitrustlaws,includingseekingtoenjointhepurchaseofSharespursuanttotheOffer,orseekingthedivestitureofSharesacquiredbyPurchaserorthedivestitureofsubstantialassetsofArcticCatoritssubsidiariesorTextronoritssubsidiaries.AlthoughthereisnoassurancethatachallengetotheOfferonantitrustgroundswillnotbemadeor,ifsuchachallengeismaderegardingtheresultthereof,Textrondoesnotexpectanygovernmentalauthority,stateorprivatepartytotakelegalactionundertheantitrustlaws.
17. Fees and Expenses
TextronhasretainedAllianceAdvisorsLLCasInformationAgentinconnectionwiththeOffer.TheInformationAgentmaycontacttheshareholdersofArcticCatbymail,telephoneandpersonalinterviewandmayrequestbrokers,dealers,commercialbanks,trustcompaniesandothernomineeshareholderstoforwardmaterialrelatingtotheOffertobeneficialownersofShares.TextronwillpaytheInformationAgentreasonableandcustomarycompensationfortheseservicesinadditiontoreimbursingtheInformationAgentforcertainout-of-pocketexpenses.TextronhasagreedtoindemnifytheInformationAgentandrelatedpartiesagainstcertainliabilitiesandexpensesinconnectionwiththeOffer.Inaddition,TextronandPurchaserhaveretainedWellsFargoBank,N.A.asDepositaryandPayingAgentinconnectionwiththeOffer.TextronwillpaytheDepositaryandPayingAgentreasonableandcustomarycompensationforitsservicesinconnectionwiththeOffer,willreimbursetheDepositaryandPayingAgentforcertainout-of-pocketexpenses,andwillindemnifytheDepositaryandPayingAgentagainstcertainliabilitiesandexpensesinconnectionwiththeOffer.
Exceptassetforthabove,neitherTextronnorPurchaserwillpayanyfeesorcommissionstoanybroker,dealer,commercialbank,trustcompanyorothernomineeforsolicitingtendersofSharespursuanttotheOffer.Textronwillreimbursebrokers,dealers,commercialbanksandtrustcompaniesandothernominees,uponrequest,forcustomaryclericalandmailingexpensesincurredbytheminforwardingofferingmaterialstotheircustomers.
18. Miscellaneous
NeitherTextronnorPurchaserisawareofanyjurisdictionwherethemakingoftheOfferisprohibitedbyanyadministrativeorjudicialactionpursuanttoanyvalidstatestatute.IfTextronorPurchaserbecomesawareofanyvalidstatestatuteprohibitingthemakingoftheOfferortheacceptanceoftheShares,TextronandPurchaserwillmakeagoodfaithefforttocomplywiththatstatestatute.If,afteragoodfaitheffort,TextronandPurchasercannotcomplywiththestatestatute,PurchaserwillnotmaketheOfferto,norwillPurchaseraccepttendersfromoronbehalfof,shareholdersofArcticCatinthatstate.Textron,TextronSpecializedVehiclesandPurchaserhavefiledwiththeSECthisScheduleTOpursuanttoRule14d-3promulgatedundertheExchangeAct,togetherwithexhibitsfurnishingcertainadditionalinformationwithrespecttotheOffer,andmayfileamendmentsthereto.Inaddition,ArcticCathasfiledwiththeSECtheSchedule14D-9,togetherwith
70
exhibits,pursuanttoRule14d-9promulgatedundertheExchangeAct,settingforththerecommendationoftheArcticCatBoardwithrespecttotheOfferandthereasonsfortherecommendationoftheArcticCatBoardandfurnishingcertainadditionalrelatedinformation.Acopyofthesedocuments,andanyamendmentsthereto,maybeexaminedat,andcopiesmaybeobtainedfrom,theSECinthemannersetforthunderSection8—"CertainInformationConcerningArcticCat"andSection9—"CertainInformationConcerningTextron,TextronSpecializedVehiclesandPurchaser"ofthisOffertoPurchase.
None of Textron, Textron Specialized Vehicles or Purchaser has authorized any person to give any information or to make any representation on behalfof Textron or Purchaser not contained in this Offer to Purchase or in the related Letter of Transmittal, and, if given or made, shareholders should not relyon any such information or representation as having been authorized.
NeitherthedeliveryofthisOffertoPurchasenoranypurchasepursuanttotheOfferwill,underanycircumstances,createanyimplicationthattherehasbeennochangeintheaffairsofTextron,Purchaser,ArcticCatoranyoftheirrespectivesubsidiariessincethedateasofwhichsuchinformationisfurnishedorthedateofthisOffertoPurchase.
ACESACQUISITIONCORP.
February2,2017
71
SCHEDULE I
INFORMATION CONCERNING THE DIRECTORS AND EXECUTIVE OFFICERS OF TEXTRON INC., TEXTRON SPECIALIZED VEHICLES INC.AND ACES ACQUISITION CORP.
TEXTRON INC.
Thefollowingtablesetsforththename,presentprincipaloccupationoremployment,andmaterialoccupations,positions,officesoremploymentforatleastthepastfive(5)yearsofeachofthemembersoftheboardofdirectorsandeachexecutiveofficerofTextronInc.Unlessotherwisenoted,thecurrentbusinessaddressofeachpersonidentifiedbelowis40WestminsterStreet,Providence,RhodeIsland02903andthecurrentbusinessphonenumberofeachoftheseindividualsis(401)421-2800.Unlessotherwisenoted,eachpersonidentifiedbelowisacitizenoftheUnitedStatesofAmerica.
72
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation
or Employment
Material Positions Held During
the Past Five (5) Years
KathleenM.Bader Director Retired Director,TysonFoods,Inc.(2011—2015)
R.KerryClarkCitizenoftheUnitedStatesofAmericaandCanada
Director Retired Director,GeneralMills,Inc.(2009—Present)
Director,Avnet,Inc.(2012—Present)
Director,Anthem,Inc.(2014—Present)
Director,HauserPrivateEquityLLC(2013—Present)
FrankT.Connor ExecutiveVicePresidentandChiefFinancialOfficer
ExecutiveVicePresidentandChiefFinancialOfficer,TextronInc.
Sameaspresentemployment(2009—Present)
JamesT.Conway Director Retired Director,xGTechnology,Inc.(2015—Present)
ScottC.Donnelly ChairmanoftheBoard,PresidentandChiefExecutiveOfficer
ChairmanoftheBoard,PresidentandChiefExecutiveOfficer,TextronInc.
Sameaspresentemployment(2009—Present)
Director,Medtronicplc.(2013—Present)
IvorJ.Evans Director Retired ExecutiveChairmanoftheBoard,Meritor,Inc.(2015—2016)
73
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation
or Employment
Material Positions Held During
the Past Five (5) Years
ChairmanandChiefExecutiveOfficer,Meritor,Inc.(2013—2015)
President,Meritor,Inc.(2013—2014)
ExecutiveChairmanandInterimChiefExecutiveOfficerandPresident,Meritor,Inc.(2013)
Director,Meritor,Inc.(2005—Present)
OperatingPartner,HCIEquityPartners(formerly,Thayer--HiddenCreek)(2005—2015)
Director,CooperIndustries(2003—2012)
Director,RoadrunnerTransportationSystems,Inc.(2004—2014)
Director,SpiritAeroSystemsHoldings,Inc.(2005—2015)
LawrenceK.Fish Director Retired ChairmanoftheBoardofDirectors,HoughtonMifflinHarcourt(2010—Present)
Director,Tiffany&Co.(2008—Present)
Director,NationalBankHoldingsCorporation(2010—2015)
PaulE.GagnéCitizenofCanada
Director ChairmanoftheBoard,WajaxCorporation
Director,WajaxCorporation(1996—Present)
74
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation
or Employment
Material Positions Held During
the Past Five (5) Years
Director,CAEInc.(2008—Present)
Director,NorbordInc.(formerly,AinsworthLumberCo.Ltd.)(2011—Present)
Director,InmetMiningCorporation(1996—2013)
DainM.Hancock Director Retired Notapplicable
CherylH.Johnson ExecutiveVicePresident,HumanResources
ExecutiveVicePresident,HumanResources,TextronInc.
DirectorofTalentandOrganizationalDevelopment,BellHelicopterTextronInc.(2011—2012)
RalphD.Heath Director Retired ExecutiveVicePresident,AeronauticsofLockheedMartinCorporation(2005—2012)
E.RobertLupone ExecutiveVicePresident,GeneralCounsel,SecretaryandChiefCompliance
ExecutiveVicePresident,GeneralCounsel,SecretaryandChiefCompliance
GeneralCounsel(Americas),SiemensAG(2008—2012)
Officer Officer,TextronInc. SeniorVicePresidentandGeneralCounsel,SiemensCorporation(US)(1999—2012)
LordPowellofBayswaterKCMGCitizenoftheUnitedKingdomofGreat
Director Retired Director,LVMHMoëtHennessy-LouisVuitton(1996—Present)
BritainandNorthernIreland
Director,MandarinOrientalInternationalLimited(1992—Present)
Director,HongKongLandHoldingsLimited(2008—Present)
Director,CaterpillarInc.(2001—2013)
75
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation
or Employment
Material Positions Held During
the Past Five (5) Years
Director,SchindlerHoldingLtd.(2003—2014)
AdvisoryDirector,NorthernTrustCorp.(2015—Present)
LloydG.Trotter Director ManagingPartner,GenNx360CapitalPartners
Sameaspresentemployment(2009—Present)
Director,PepsiCo,Inc.(2008—Present)
Director,Meritor,Inc.(2015—Present)
Member,SupervisoryBoard,DaimlerA.G.(2009—2014)
JamesL.Ziemer Director Retired Director,ThorIndustries,Inc.(2010—Present)
MariaT.Zuber Director VicePresidentforResearchandtheE.A.GriswoldProfessorofGeophysics
Sameaspresentemployment(2012—Present)
attheMassachusettsInstituteofTechnology
MemberofFacultyofDepartmentofEarth,AtmosphericandPlanetarySciences(1995—Present)
Member,NationalScienceBoard(2013—Present)
Chair,NationalScienceBoard(2016—Present)
TEXTRON SPECIALIZED VEHICLES INC.
Thefollowingtablesetsforththename,presentprincipaloccupationoremployment,andmaterialoccupations,positions,officesoremploymentforatleastthepastfive(5)yearsofeachmemberoftheboardofdirectorsandeachexecutiveofficerofTextronSpecializedVehiclesInc.Unlessotherwisenoted,thecurrentbusinessaddressofeachpersonidentifiedbelowis1451MarvinGriffinRoad,Augusta,Georgia30906,andthecurrentbusinessphonenumberofeachoftheseindividualsis(706)798-4311.Unlessotherwisenoted,eachpersonidentifiedbelowisacitizenoftheUnitedStatesofAmerica.
76
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation or Employment
Material Positions Held During the
Past Five (5) YearsKevinP.Holleran Director,PresidentandChief
ExecutiveOfficer PresidentandChiefExecutive
Officer,IndustrialSegment,TextronInc.
PresidentandChiefExecutiveOfficer,E-Z-GODivisionofTextronInc.(2007—2014)
Director,PresidentandChiefExecutiveOfficer,TextronSpecializedVehiclesInc.
RodericParson DirectorandChiefFinancialOfficer DirectorandVicePresident—Finance,TextronSpecializedVehiclesInc.
VicePresent—Finance,JacobsenDivisionofTextronInc.(2012—2016)
DanielB.Tidwell DirectorandSecretary DirectorandVicePresident,GeneralCounselandSecretary,TextronSpecializedVehiclesInc.
GeneralCounsel,E-Z-GOandJacobsenDivisionsofTextronInc.(2013—2014)
AssistantGeneralCounsel,BellHelicopterTextronInc.(2010—2013)
ACES ACQUISITION CORP.
Thefollowingtablesetsforththename,presentprincipaloccupationoremployment,andmaterialoccupations,positions,officesoremploymentforatleastthepastfive(5)yearsofeachmemberoftheboardofdirectorsandeachexecutiveofficerofAcesAcquisitionCorp.Unlessotherwisenoted,thecurrentbusinessaddressofeachpersonidentifiedbelowis1451MarvinGriffinRoad,Augusta,Georgia30906,andthecurrentbusinessphonenumberofeachoftheseindividualsis(706)798-4311.Unlessotherwisenoted,eachpersonidentifiedbelowisacitizenoftheUnitedStatesofAmerica.
77
Name, Citizenship and Business Address (If Applicable) Office
Present Principal Occupation or Employment
Material Positions Held During the
Past Five (5) YearsKevinP.Holleran Director,ChiefExecutiveOfficerand
President PresidentandChiefExecutive
Officer,IndustrialSegment,TextronInc.
PresidentandChiefExecutiveOfficer,E-Z-GODivisionofTextronInc.(2007—2014)
Director,PresidentandChiefExecutiveOfficer,TextronSpecializedVehiclesInc.
RodericParson DirectorandChiefFinancialOfficer DirectorandVicePresident—Finance,TextronSpecializedVehiclesInc.
VicePresident—Finance,JacobsenDivisionofTextronInc.(2012—2016)
ElizabethC.Perkins40WestminsterStreet,Providence,RhodeIsland02903(401)457-2200
VicePresident VicePresidentandDeputyGeneralCounsel,TextronInc.
Sameaspresentemployment(2011—Present)
DanielB.Tidwell DirectorandSecretary DirectorandVicePresident,GeneralCounselandSecretary,TextronSpecializedVehiclesInc.
GeneralCounsel,E-Z-GOandJacobsenDivisionsofTextronInc.(2013—2014)
AssistantGeneralCounsel,BellHelicopterTextronInc.(2010—2013)
TheLetterofTransmittal,CertificatesandanyotherrequireddocumentsshouldbesentordeliveredbyeachshareholderofArcticCatorsuchshareholder'sbroker,dealer,commercialbank,trustcompanyorothernomineetotheDepositaryatoneofitsaddressessetforthbelow:
The Depositary for the Offer is:
WellsFargoBank,N.A.
YoumaydirectquestionsandrequestsforassistancetotheInformationAgentatitsaddressandtelephonenumbersetforthbelow.YoumayobtainadditionalcopiesofthisOffertoPurchase,therelatedLetterofTransmittalandothertenderoffermaterialsfromtheInformationAgentassetforthbelow,andtheywillbefurnishedpromptlyatTextron'sexpense.Youmayalsocontactyourbroker,dealer,commercialbank,trustcompanyorothernomineeforassistanceconcerningtheOffer.
The Information Agent for the Offer is:
AllianceAdvisorsLLC
200BroadacresDrive,3rdFloorBloomfield,NJ07003
CallCollect:(973)873-7780or
CallToll-Free:(888)991-1293Email:[email protected]
ByMail:By5:00p.m.NYCtimeonExpiration
DateWellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActionsP.O.Box64858
St.Paul,Minnesota55164-0858
ByFacsimileTransmission:WellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActions(800)468-9716(phone)(866)734-9952(fax)
ByHandorOvernightCourier:By5:00p.m.NYCtimeonExpiration
DateWellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActions1110CentrePointeCurve,Suite101MendotaHeights,
Minnesota55120
QuickLinks
IMPORTANTSUMMARYTERMSHEETINTRODUCTIONTHETENDEROFFERSCHEDULEIINFORMATIONCONCERNINGTHEDIRECTORSANDEXECUTIVEOFFICERSOFTEXTRONINC.,TEXTRONSPECIALIZEDVEHICLESINC.ANDACESACQUISITIONCORP.TEXTRONINC.TEXTRONSPECIALIZEDVEHICLESINC.ACESACQUISITIONCORP.TheDepositaryfortheOfferisWellsFargoBank,N.A.TheInformationAgentfortheOfferis
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(B)
Letter of Transmittal
To Tender Shares of Common Stock of
Arctic Cat Inc.Pursuant to the Offer to Purchase Dated February 2, 2017
by
Aces Acquisition Corp.,
Textron Specialized Vehicles Inc.and
Textron Inc.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017 UNLESS THE OFFER IS EXTENDED.
The Depositary for the Offer is:
WellsFargoBank,N.A.
Delivery of this Letter of Transmittal to an address other than as set forth above will not constitute a valid delivery to the Depositary. You must signthis Letter of Transmittal in the appropriate space provided below, with signature guarantee if required, and complete the enclosed Form W-9.
***By Mail: By5:00p.m.NYCtimeonExpirationDate
WellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActionsP.O.Box64858
St.Paul,Minnesota55164-0858
***By Hand or Overnight Courier: By5:00p.m.NYCtimeonExpirationDate
WellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActions1110CentrePointeCurve,Suite101MendotaHeights,Minnesota55120
The instructions contained within this Letter of Transmittal should be read carefully before this Letter of Transmittal is completed.
FOR OFFICE USE ONLY Approved W-9 Completed
DESCRIPTION OF SHARES TENDERED
AccountRegistration
Please make anyaddress correction
below Certificate(s) and Share(s) Tendered
(Please attach additional signed list, if necessary)
Certificate Number(s) and/or
indicate Book-Entry shares
Total Number of Shares
Represented by Certificate(s)
Number of Shares
Tendered(1)(2)
Total Shares Tendered
(1) IfsharesareheldinBook-Entryform,youmust indicatethenumberofsharesyouaretendering.Otherwise,allSharesrepresentedbyBook-EntrydeliveredtotheDepositarywillbedeemedtohavebeentendered.By signing andsubmitting this Letter of Transmittal you warrant that these shares will not be sold, including through limitorder request, unless properly withdrawn from the Offer. SeeInstruction4.
(2) IfyouwishtotenderfewerthanallsharesrepresentedbyanyCertificatelistedabove,pleaseindicateinthiscolumnthenumberofsharesyouwishtotender.Otherwise,allSharesrepresentedbyCertificatesdeliveredtotheDepositarywillbedeemedtohavebeentendered.SeeInstruction4.
o CheckhereifCertificateshavebeenlostormutilated.
LostCertificates.IhavelostmyCertificate(s)forsharesandrequireassistanceinreplacingthem.A$75.00replacementfeemustbesentinwiththecompletedletteroftransmittal.ThecheckmustbemadepayabletoShareownerServices.Ifadditionalformsandfeesareneeded,youwillbecontacted.
ThenamesandaddressesoftheregisteredholdersofthetenderedSharesshouldbeprinted,ifnotalreadyprintedabove,exactlyastheyappearontheCertificates(asdefinedbelow)tenderedhereby.
ThisLetterofTransmittalistobeusedbyshareholdersifCertificatesforSharesaretobeforwardedherewithorifsharesareheldinbook-entryformontherecordsoftheDepositary.
HoldersofShareswhosecertificatesforsuchShares(the"Certificates")arenotimmediatelyavailable,orwhocannotcompletetheprocedureforbook-entrytransferonatimelybasis,orwhocannotdeliverallotherrequireddocumentstotheDepositarypriortotheExpirationDate(asdefinedintheOffertoPurchase),musttendertheirSharesaccordingtotheguaranteeddeliveryproceduresetforthin"Section3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.SeeInstruction2.
IMPORTANT SHAREHOLDER: SIGN HERE
(Please Complete Substitute Form W-9 Enclosed)
(Mustbesignedbytheregisteredholder(s)exactlyasname(s)appear(s)onstockcertificate(s)oronasecuritypositionlistingorbytheperson(s)authorizedtobecomeregisteredholder(s)bycertificatesanddocumentstransmittedherewith.Ifsignatureisbyatrustee,executor,administrator,guardian,attorney-in-fact,officerofacorporationorotherpersonactinginafiduciaryorrepresentativecapacity,pleasesetforthfulltitleandseeInstruction5.)
GUARANTEE OF SIGNATURE(S) (If required—See Instructions 1 and 5)
APPLY MEDALLION GUARANTEE STAMP BELOW
(Signature(s) of Owner(s))
Name(s)
Capacity(FullTitle) (See Instructions)
Address
(Include Zip Code)
Thisletteroftransmittal(asamendedorsupplementedfromtimetotime,this"LetterofTransmittal")istobecompletedbyshareholdersofArcticCatInc.,aMinnesotacorporation("ArcticCat"),ifcertificates("Certificates")representingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),aretobeforwardedwiththisLetterofTransmittal.IfdeliveryofSharesistobemadebybook-entrytransfertoanaccountmaintainedbyWellsFargoBank,N.A.(the"Depositary")atTheDepositoryTrustCompany("DTC")pursuanttotheproceduressetforthunderSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase,datedFebruary2,2017(asamendedorsupplementedfromtimetotime,the"OffertoPurchase"),shareholdersmayuseanAgent'sMessage(asdefinedinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase)orthisLetterofTransmittal.Delivery of documents to DTC in accordance with DTC's procedures does not constitute delivery to the Depositary.
ShareholdersofArcticCatwhoseCertificatesarenotimmediatelyavailableorwhosetimewillnotpermitallrequireddocumentstoreachtheDepositaryatorbeforetheexpirationoftheOfferorwhocannotcompletetheprocedureforbook-entrytransferatorbeforetheexpirationoftheOffermusttendertheirSharesaccordingtotheguaranteeddeliveryproceduressetforthunderSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.SeeInstruction2below.
IfanyCertificateyouaretenderingwiththisLetterofTransmittalhasbeenlost,stolen,destroyedormutilated,youshouldcontactWellsFargoShareownerServices,ArcticCat'sstocktransferagent(the"TransferAgent"),at800-468-9716,regardingtherequirementsforreplacement.YoumayberequiredtopostabondtosecureagainsttheriskthattheCertificatemaybesubsequentlyrecirculated.YouareurgedtocontacttheTransferAgentimmediatelyinordertoreceivefurtherinstructions,foradeterminationofwhetheryouwillneedtopostabondandtopermittimelyprocessingofthisdocumentation.TheDepositarymaychargeholdersanadministrativefeeforprocessingpaymentwithrespecttoSharesrepresentedbylostcertificates.
NOTE:PLEASEREADTHEINSTRUCTIONSSETFORTHINTHISLETTEROFTRANSMITTALCAREFULLY.
SPECIAL PAYMENT INSTRUCTIONS
(See Instructions 1, 5 and 6)
SPECIAL DELIVERY INSTRUCTIONS
TobecompletedONLYifthecheckforpaymentistobeissuedinthenameofsomeoneotherthantheundersigned.
TobecompletedONLYifthecheckistobesenttosomeoneotherthantheundersignedortotheundersignedatanaddressotherthanthatshownunder"DescriptionofSharesTendered."
IssueTo: MailTo:
Name Name
(Please Print) (Please Print)
Address Address
(Include Zip Code) (Include Zip Code)
(Recipient must complete the enclosed Form W-9)
LadiesandGentlemen:
TheundersignedherebytenderstoAcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),theabove-describedsharesofcommonstock,parvalue$0.01pershare(the"ArcticCatCommonStock"orthe"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),pursuanttoPurchaser'soffertopurchasealloftheoutstandingSharesat$18.50perShare,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheoffertopurchase,datedFebruary2,2017(asamendedorsupplementedfromtimetotime,the"OffertoPurchase"),receiptofwhichisherebyacknowledged,andinthisletteroftransmittal(asamendedorsupplementedfromtimetotime,this"LetterofTransmittal,"andtogetherwiththeOffertoPurchase,the"Offer").
Subjectto,andeffectiveupon,acceptanceforpaymentoftheSharestenderedwiththisLetterofTransmittal,inaccordancewiththetermsoftheOffer,theundersignedherebysells,assignsandtransfersto,orupontheorderof,Purchaserallright,titleandinterestinandtoalltheSharesthatarebeingtenderedbythisLetterofTransmittalandirrevocablyappointsWellsFargoBank,N.A.(the"Depositary")asthetrueandlawfulagent,attorney-in-factandproxyoftheundersignedwithrespecttosuchShares,withfullpowerofsubstitution(suchpowerofattorneybeingdeemedtobeanirrevocablepowercoupledwithaninterestintheSharestenderedbythisLetterofTransmittal),to(i)delivercertificates(the"Certificates")representingtheArcticCatCommonStock,ortransferownershipofsuchSharesontheaccountbooksmaintainedbyTheDepositoryTrustCompany,together,ineithercase,withallaccompanyingevidencesoftransferandauthenticity,toorupontheorderofPurchaser;(ii)presentsuchSharesfortransferonthebooksofArcticCat;and(iii)receiveallbenefitsandotherwiseexerciseallrightsofbeneficialownershipofsuchShares,allinaccordancewiththetermsandsubjecttotheconditionsoftheOffer.
TheundersignedherebyirrevocablyappointsPurchaser'sdesignees,andeachofthem,asagents,attorneys-in-factandproxiesoftheundersigned,eachwithfullpowerofsubstitution,inthemannersetforthherein,tothefullextentoftherightsoftheundersignedwithrespecttoSharesthattheundersignedtendersandPurchaseracceptsforpayment.AllsuchpowersofattorneyandproxieswillbeconsideredirrevocableandcoupledwithaninterestintheSharestenderedbythisLetterofTransmittal.ThisappointmentwillbeeffectivewhenPurchaseracceptstheSharestenderedbythisLetterofTransmittalforpaymentinaccordancewiththetermsoftheOffer.Uponacceptanceforpayment,allotherpowersofattorneyandproxiesgivenbytheundersignedwithrespecttotheSharestenderedbythisLetterofTransmittalpriortosuchpaymentwillberevoked,withoutfurtheraction,andnosubsequentpowersofattorneyandproxiesmaybegivenbytheundersigned(and,ifgiven,willnotbedeemedeffective).Purchaser'sdesigneeswill,withrespecttotheSharestenderedbythisLetterofTransmittalandrightsforwhichtheappointmentiseffective,beempoweredtoexerciseallofthevotingandotherrightsoftheundersignedasthey,intheirsolediscretion,maydeemproperatanyannualorspecialmeetingofshareholdersofArcticCat,oranyadjournmentorpostponementthereof,orbyconsentinlieuofanysuchmeetingofshareholdersofArcticCatorotherwise.InorderforSharestobedeemedvalidlytenderedbythisLetterofTransmittal,immediatelyupontheacceptanceforpaymentofsuchShares,PurchaseroritsdesigneemustbeabletoexercisefullvotingrightswithrespecttosuchShares,includingvotingatanymeetingofshareholdersofArcticCat.
Theundersignedherebyrepresentsandwarrantsthattheundersignedhasfullpowerandauthoritytotender,sell,assignandtransfertheSharestenderedbythisLetterofTransmittal,andthatwhensuchSharesareacceptedforpaymentbyPurchaser,Purchaserwillacquiregood,marketableandunencumberedtitletosuchShares,freeandclearofallliens,restrictions,chargesandencumbrances,andthatnoneofsuchShareswillbesubjecttoanyadverseclaim.Theundersigned,uponrequest,shallexecuteanddeliveralladditionaldocumentsdeemedbytheDepositaryorPurchasertobenecessaryordesirabletocompletethesale,assignmentandtransferoftheSharestenderedbythisLetterofTransmittal.
NoauthorityconferredoragreedtobeconferredinthisLetterofTransmittalshallbeaffectedby,andallsuchauthorityshallsurvive,thedeathorincapacityoftheundersigned.AllobligationsoftheundersignedunderthisLetterofTransmittalshallbebindingupontheheirs,personalrepresentatives,successorsandassignsoftheundersigned.ExceptasstatedintheOffertoPurchase,thistenderisirrevocable.SeeSection4—"WithdrawalRights"oftheOffertoPurchase.
TheundersignedunderstandsthattendersofSharespursuanttoanyoneoftheproceduresdescribedintheOffertoPurchaseunderSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchaseandintheinstructionstothisLetterofTransmittalwillconstitutetheundersigned'sacceptanceofthetermsandconditionsoftheOffer.Purchaser'sacceptanceofsuchSharesforpaymentwillconstituteabindingagreementbetweentheundersignedandPurchaseruponthetermsandsubjecttotheconditionsoftheOffer.Withoutlimitingtheforegoing,ifthepricetobepaidintheOfferisamendedinaccordancewiththeOffer,thepricetobepaidtotheundersignedwillbetheamendedpricenotwithstandingthefactthatadifferentpriceisstatedinthisLetterofTransmittal.TheundersignedrecognizesthatundercertaincircumstancessetforthintheOffertoPurchase,PurchasermaynotberequiredtoacceptforpaymentanyoftheSharestenderedbythisLetterofTransmittal.
UnlessotherwiseindicatedinthisLetterofTransmittalintheboxentitled"SpecialPaymentInstructions,"pleaseissuethecheckforthepurchasepriceofallSharespurchasedinthename(s)oftheregisteredholder(s)appearingaboveunder"DescriptionofSharesTendered."Similarly,unlessotherwiseindicatedintheboxentitled"SpecialDeliveryInstructions,"pleasemailthecheckforthepurchasepriceofallSharespurchasedtotheaddress(es)oftheregisteredholder(s)appearingaboveunder"DescriptionofSharesTendered."
INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER
1. Guarantee of Signatures. NosignatureguaranteeisrequiredonthisLetterofTransmittalifthisLetterofTransmittalissignedbytheregisteredholder(s)ofSharestenderedherewith,unlesssuchregisteredholder(s)hascompletedtheboxentitled"SpecialPaymentInstructions"ontheLetterofTransmittal.SeeInstruction5.
2. Requirements of Tender. ThisLetterofTransmittalistobecompletedbyshareholdersifcertificatesaretobeforwardedherewithorsharesareheldinbook-entryformontherecordsoftheDepositary.Certificates,aswellasthisLetterofTransmittal(orafacsimilehereof),properlycompletedanddulyexecuted,withanyrequiredsignatureguarantees,andanyotherdocumentsrequiredbythisLetterofTransmittal,mustbereceivedbytheDepositaryatoneofitsaddressessetforthhereinpriortotheExpirationDate.ShareholderswhoseCertificatesarenotimmediatelyavailableorwhocannotdeliverallotherrequireddocumentstotheDepositarypriortotheExpirationDate,maytendertheirSharesbyproperlycompletinganddulyexecutingaNoticeofGuaranteedDeliverypursuanttotheguaranteeddeliveryproceduresetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.Pursuanttosuchprocedure:(i)suchtendermustbemadebyorthroughanEligibleInstitution;(ii)aproperlycompletedanddulyexecutedNoticeofGuaranteedDelivery,mustbereceivedbytheDepositarypriortotheExpirationDate;and(iii)theCertificatesevidencingalltenderedShares,inproperformfortransfer,ineachcasetogetherwiththeLetterofTransmittal(orafacsimilethereof),properlycompletedanddulyexecuted,withanyrequiredsignatureguaranteesandanyotherdocumentsrequiredbythisLetterofTransmittal,mustbereceivedbytheDepositarywithinthree(3)tradingdaysafterthedateofexecutionofsuchNoticeofGuaranteedDelivery.IfCertificatesareforwardedseparatelytotheDepositary,aproperlycompletedanddulyexecutedLetterofTransmittalmustaccompanyeachsuchdelivery.
By signing and submitting this Letter of Transmittal you warrant that these Shares will not be sold, including through limit order request, unless properlywithdrawn from the Offer.
The method of delivery of this Letter of Transmittal, Certificates and all other required documents is at the option and the risk of the tenderingshareholder and the delivery will be deemed made only when actually received by the Depositary. If delivery is by mail, registered mail with return receiptrequested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
LETTERS OF TRANSMITTAL MUST BE RECEIVED IN THE OFFICE OF THE DEPOSITARY BY 5:00 P.M., NEW YORK CITY TIME, ONTHE EXPIRATION DATE OF THE OFFER. GUARANTEED DELIVERIES WILL BE ACCEPTED VIA FAX UNTIL 5:00 P.M., NEW YORK CITYTIME, ON THE EXPIRATION DATE.
Noalternative,conditionalorcontingenttenderswillbeacceptedandnofractionalShareswillbeexchanged.Alltenderingshareholders,byexecutionofthisLetterofTransmittal(orafacsimilehereof),waiveanyrighttoreceiveanynoticeoftheacceptanceoftheirSharesforpayment.
3. Inadequate Space. Ifthespaceprovidedhereinisinadequate,thecertificatenumbersand/orthenumberofSharesandanyotherrequiredinformationshouldbelistedonaseparatesignedscheduleattachedhereto.
4. Partial Tenders. Iffewerthanallofthesharesevidencedbyanycertificateand/orbook-entryaretobetendered,fillinthenumberofsharesthataretobetenderedinthecolumnentitled"NumberofSharesTendered"intheboxentitled"DescriptionofSharesTendered"above.Inthatcase,ifanytenderedsharesarepurchased,aDirectRegistrationBookEntryStatementfortheremainderoftheshares(includinganysharesnotpurchased)evidencedbytheoldcertificate(s)willbeissuedandsenttotheregisteredholder(s)promptlyaftertheexpirationdate. Unless otherwise indicated, all shares represented by the certificate(s) and/or book-entry set forth above and delivered to the Depositary will be deemed to have been tendered. Ineachcase,shareswillbereturnedorcreditedwithoutexpensetotheshareholder.
5. Signatures on Letter of Transmittal, Stock Powers and Endorsements. IfthisLetterofTransmittalissignedbytheregisteredholder(s)oftheSharestenderedhereby,thesignature(s)mustcorrespondwiththename(s)aswrittenonthefaceofthecertificate(s)withoutalteration,enlargementoranychangewhatsoever.
IfanyoftheSharestenderedherebyareheldofrecordbytwoormorejointowners,allsuchownersmustsignthisLetterofTransmittal.
IfanyofthetenderedSharesareregisteredindifferentnamesonseveralcertificates,itwillbenecessarytocomplete,signandsubmitasmanyseparateLettersofTransmittalastherearedifferentregistrations.
IfthisLetterofTransmittaloranycertificatesorstockpowersaresignedbyatrustee,executor,administrator,guardian,attorney-in-fact,officerofacorporationorotherpersonactinginafiduciaryorrepresentativecapacity,suchpersonshouldsoindicatewhensigning,andproperevidencesatisfactorytoTextronInc.oftheauthorityofsuchpersonsotoactmustbesubmitted.IfthisLetterofTransmittalissignedbytheregisteredholder(s)oftheShareslistedandtransmittedhereby,noendorsementsofcertificatesorseparatestockpowersarerequiredunlesspaymentistobemadeorcertificatesforSharesnottenderedornotacceptedforpaymentaretobeissuedinthenameofapersonotherthantheregisteredholder(s).SignaturesonanysuchCertificatesorstockpowersmustbeguaranteedbyanEligibleInstitution.
IfthisLetterofTransmittalissignedbyapersonotherthantheregisteredholder(s)oftheCertificate(s)listedandtransmittedhereby,theCertificate(s)mustbeendorsedoraccompaniedbyappropriatestockpowers,ineithercasesignedexactlyasthename(s)oftheregisteredholder(s)appear(s)ontheCertificate(s).Signature(s)onanysuchCertificatesorstockpowersmustbeguaranteedbyanEligibleInstitution.
6. Special Payment. IfacheckistobeissuedinthenameofapersonotherthanthesignerofthisLetterofTransmittaltheappropriateboxesonthisLetterofTransmittalmustbecompleted.
7. Requests for Assistance or Additional Copies. QuestionsandrequestsforassistanceoradditionalcopiesoftheOffertoPurchase,thisLetterofTransmittal,theNoticeofGuaranteedDelivery,IRSFormW-9andtheGuidelinesforCertificationofTaxpayerIdentificationNumberonSubstituteFormW-9maybedirectedtothe(InformationAgent)attheaddressesandphonenumberssetforthbelow,orfrombrokers,dealers,commercialbanksortrustcompanies.
8. Waiver of Conditions. SubjecttothetermsandconditionsoftheMergerAgreement,TextronInc.andAcesAcquisitionCorp.reservetheright,intheirsolediscretion,towaive,atanytimeorfromtimetotime,anyofthespecifiedconditionsoftheOffer,inwholeorinpart,inthecaseofanySharestendered.
9. Lost, Destroyed or Stolen Certificates. IfyourCertificatesarelost,pleasechecktheboxandcompletebelowBoxA.A$75.00lostcertificatereplacementfeemustbemailedinwithyourcompletedLetterofTransmittal.Ifthereareadditionalformsorfeesneeded,youwillbecontacted.
10. Withdrawal of Shares Tendered. SharestenderedpursuanttotheOffermaybewithdrawnatanytimepriortotheExpirationDate.AfteraneffectivewithdrawalyoumayresubmittotheDepositaryacompletedreplacementofthisdocumentandanyotherdocumentsrequiredbytheOfferforproperlytenderingSharespriortotheExpirationDate.
Important: This Letter of Transmittal together with any required signature guarantees, and any other required documents, must be received by theDepositary prior to the Expiration Date and Certificates for tendered Shares must be received by the Depositary prior to the Expiration Date, or thetendering shareholder must comply with the procedures for guaranteed delivery.
IMPORTANT TAX INFORMATION
Underthefederalincometaxlaw,unlessanexemptionapplies,ashareholderwhosetenderedSharesareacceptedforpaymentisrequiredtoprovidetheDepositarywithsuchshareholder'scorrectTINontheSubstituteFormW-9.Ifsuchshareholderisanindividual,theTINissuchshareholder'sSocialSecurityNumber.IftheDepositaryisnotprovidedwiththecorrectTIN,theshareholdermaybesubjecttoa$50penaltyimposedbytheInternalRevenueService.Inaddition,paymentsthataremadetosuchshareholdermaybesubjecttobackupwithholdingbasedon28%ofthereportableamount.
Certainshareholders(forexample,corporations)arenotsubjecttothesebackupwithholdingandreportingrequirements.Inorderforanon-U.S.persontoclaimnonresidentalien(orforeign)taxstatusandqualifyforanexemptionfrombackupwithholding,suchindividualmustsubmitanappropriateandproperlycompletedIRSFormW-8,attestingtothatindividual'sforeignstatus.Normally,aforeignindividualorcorporationwillprovideaFormW-8BEN.IntermediaryentitieswillprovideaFormW-8IMYfortheentityandaFormW-8BENorFormW-9foreachbeneficialowneralongwithawithholdingstatement.SuchaFormW-8maybeobtainedfromtheDepositary.ExemptU.S.shareholders(i.e.,corporations,etc.)shouldfurnishtheirTIN,checkthe"Exemptpayee"lineandsign,dateandreturntheSubstituteFormW-9totheDepositary.
Ifbackupwithholdingapplies,theDepositaryisrequiredtowithhold28%ofanyreportablepaymentsmadetotheshareholder.Backupwithholdingisnotanadditionaltax.Rather,thefederalincometaxliabilityofpersonssubjecttobackupwithholdingwillbereducedbytheamountoftaxwithheld.Ifbackupwithholdingresultsinanoverpaymentoftaxes,arefundmaybeobtainedfromtheInternalRevenueServicewhencompletingataxreturnforthatapplicableyear,basedonthewithholdingamountreportedontheForm1099.
Print or type SeeSpecific Instructions onpage2.
Underpenaltiesofperjury,Icertifythat:
Certification instructions. Youmustcrossoutitem2aboveifyouhavebeennotifiedbytheIRSthatyouarecurrentlysubjecttobackupwithholdingbecauseyouhavefailedtoreportallinterestanddividendsonyourtaxreturn.Forrealestatetransactions,item2doesnotapply.Formortgageinterestpaid,acquisitionorabandonmentofsecuredproperty,cancellationofdebt,contributionstoanindividualretirementarrangement(IRA),andgenerally,paymentsotherthaninterestanddividends,youarenotrequiredtosignthecertification,butyoumustprovideyourcorrectTIN.Seetheinstructionsonpage3.
FormW-9 (Rev.December2014)DepartmentoftheTreasuryInternalRevenueService
Request for Taxpayer Identification Number and Certification
Give Form to the requester. Do not send to the IRS.
1 Name(asshownonyourincometaxreturn).Nameisrequiredonthisline;donotleavethislineblank.
2 Businessname/disregardedentityname,ifdifferentfromabove
3 Checkappropriateboxforfederaltaxclassification;checkonlyone ofthefollowingsevenboxes:oIndividual/soleproprietororoCCorporationoSCorporationoPartnershipoTrust/estatesingle-memberLLC
4 Exemptions(codesapplyonlytocertainentities,notindividuals;seeinstructionsonpage3):
oLimitedliabilitycompany.Enterthetaxclassification(C=Ccorporation,S=Scorporation,P=partnership)>_____
Exemptpayeecode(ifany)_____
Note. Forasingle-memberLLCthatisdisregarded,donotcheckLLC;checktheappropriateboxinthelineaboveforthetaxclassificationofthesingle-memberowner.
ExemptionfromFATCAreportingcode(ifany)_____(Applies to accounts maintained outside the U.S.)
oOther(seeinstructions)>
5 Address(number,street,andapt.orsuiteno.)
Requester'snameandaddress(optional)
6 City,state,andZIPcode
7 Listaccountnumber(s)here(optional)
Part I Taxpayer Identification Number (TIN)
EnteryourTINintheappropriatebox.TheTINprovidedmustmatchthenamegivenonline1toavoidbackupwithholding.Forindividuals,thisisgenerallyyoursocialsecuritynumber(SSN).However,foraresidentalien,soleproprietor,ordisregardedentity,seethePartIinstructionsonpage3.Forotherentities,itisyouremployeridentificationnumber(EIN).Ifyoudonothaveanumber,seeHow to get a TIN onpage3.
Note. Iftheaccountisinmorethanonename,seetheinstructionsforline1andthechartonpage4forguidelinesonwhosenumbertoenter.
Social security number – –
or
Employer identification number –
Part II Certification
1. Thenumbershownonthisformismycorrecttaxpayeridentificationnumber(orIamwaitingforanumbertobeissuedtome);and
2.
Iamnotsubjecttobackupwithholdingbecause:(a)Iamexemptfrombackupwithholding,or(b)IhavenotbeennotifiedbytheInternalRevenueService(IRS)thatIamsubjecttobackupwithholdingasaresultofafailuretoreportallinterestordividends,or(c)theIRShasnotifiedmethatIamnolongersubjecttobackupwithholding;and
3.
IamaU.S.citizenorotherU.S.person(definedbelow);and
4.
TheFATCAcode(s)enteredonthisform(ifany)indicatingthatIamexemptfromFATCAreportingiscorrect.
Sign Here
Signature of U.S. person > Date >
General InstructionsSectionreferencesaretotheInternalRevenueCodeunlessotherwisenoted.
Future developments. InformationaboutdevelopmentsaffectingFormW-9(suchaslegislationenactedafterwereleaseit)isatwww.irs.gov/fw9 .
Purpose of Form
Anindividualorentity(FormW-9requester)whoisrequiredtofileaninformationreturnwiththeIRSmustobtainyourcorrecttaxpayeridentificationnumber(TIN)whichmaybeyoursocialsecuritynumber(SSN),individualtaxpayeridentificationnumber(ITIN),adoptiontaxpayeridentificationnumber(ATIN),oremployeridentificationnumber(EIN),toreportonaninformationreturntheamountpaidtoyou,orotheramountreportableonaninformationreturn.Examplesofinformationreturnsinclude,butarenotlimitedto,thefollowing:
•Form1099-INT(interestearnedorpaid)
•Form1099-DIV(dividends,includingthosefromstocksormutualfunds)
•Form1099-MISC(varioustypesofincome,prizes,awards,orgrossproceeds)
•Form1098(homemortgageinterest),1098-E(studentloaninterest),1098-T(tuition)
•Form1099-C(canceleddebt)
•Form1099-A(acquisitionorabandonmentofsecuredproperty)
UseFormW-9onlyifyouareaU.S.person(includingaresidentalien),toprovideyourcorrectTIN.
If you do not return Form W-9 to the requester with a TIN, you might be subject to backupwithholding. SeeWhat is backup withholding? onpage2.
Bysigningthefilled-outform,you:
1.CertifythattheTINyouaregivingiscorrect(oryouarewaitingforanumbertobeissued),
2.Certifythatyouarenotsubjecttobackupwithholding,or
3.ClaimexemptionfrombackupwithholdingifyouareaU.S.exemptpayee.Ifapplicable,youarealsocertifyingthatasaU.S.person,yourallocableshareofanypartnershipincomefromaU.S.tradeorbusinessisnotsubjecttothewithholdingtaxonforeignpartners'shareofeffectivelyconnectedincome,and
4.CertifythatFATCAcode(s)enteredonthisform(ifany)indicatingthatyouareexemptfromtheFATCAreporting,iscorrect.SeeWhat is FATCA reporting? onpage2forfurtherinformation.
•Form1099-B(stockormutualfundsalesandcertainothertransactionsbybrokers)
•Form1099-S(proceedsfromrealestatetransactions)
•Form1099-K(merchantcardandthirdpartynetworktransactions)
Cat.No.10231X FormW-9 (Rev.12-2014)
FormW-9(Rev.12-2014) Page2
Note. IfyouareaU.S.personandarequestergivesyouaformotherthanFormW-9torequestyourTIN,youmustusetherequester'sformifitissubstantiallysimilartothisFormW-9.
Definition of a U.S. person. Forfederaltaxpurposes,youareconsideredaU.S.personifyouare:
•AnindividualwhoisaU.S.citizenorU.S.residentalien;
•Apartnership,corporation,company,orassociationcreatedororganizedintheUnitedStatesorunderthelawsoftheUnitedStates;
•Anestate(otherthanaforeignestate);or
•Adomestictrust(asdefinedinRegulationssection301.7701-7).
Special rules for partnerships. PartnershipsthatconductatradeorbusinessintheUnitedStatesaregenerallyrequiredtopayawithholdingtaxundersection1446onanyforeignpartners'shareofeffectivelyconnectedtaxableincomefromsuchbusiness.Further,incertaincaseswhereaFormW-9hasnotbeenreceived,therulesundersection1446requireapartnershiptopresumethatapartnerisaforeignperson,andpaythesection1446withholdingtax.Therefore,ifyouareaU.S.personthatisapartnerinapartnershipconductingatradeorbusinessintheUnitedStates,provideFormW-9tothepartnershiptoestablishyourU.S.statusandavoidsection1446withholdingonyourshareofpartnershipincome.
Inthecasesbelow,thefollowingpersonmustgiveFormW-9tothepartnershipforpurposesofestablishingitsU.S.statusandavoidingwithholdingonitsallocableshareofnetincomefromthepartnershipconductingatradeorbusinessintheUnitedStates:
•InthecaseofadisregardedentitywithaU.S.owner,theU.S.ownerofthedisregardedentityandnottheentity;
•InthecaseofagrantortrustwithaU.S.grantororotherU.S.owner,generally,theU.S.grantororotherU.S.ownerofthegrantortrustandnotthetrust;and
•InthecaseofaU.S.trust(otherthanagrantortrust),theU.S.trust(otherthanagrantortrust)andnotthebeneficiariesofthetrust.
Foreign person. IfyouareaforeignpersonortheU.S.branchofaforeignbankthathaselectedtobetreatedasaU.S.person,donotuseFormW-9.Instead,usetheappropriateFormW-8orForm8233(seePublication515,WithholdingofTaxonNonresidentAliensandForeignEntities).
Nonresident alien who becomes a resident alien. Generally,onlyanonresidentalienindividualmayusethetermsofataxtreatytoreduceoreliminateU.S.taxoncertaintypesofincome.However,mosttaxtreatiescontainaprovisionknownasa"savingclause."ExceptionsspecifiedinthesavingclausemaypermitanexemptionfromtaxtocontinueforcertaintypesofincomeevenafterthepayeehasotherwisebecomeaU.S.residentalienfortaxpurposes.
IfyouareaU.S.residentalienwhoisrelyingonanexceptioncontainedinthesavingclauseofataxtreatytoclaimanexemptionfromU.S.taxoncertaintypesofincome,youmustattachastatementtoFormW-9thatspecifiesthefollowingfiveitems:
1.Thetreatycountry.Generally,thismustbethesametreatyunderwhichyouclaimedexemptionfromtaxasanonresidentalien.
2.Thetreatyarticleaddressingtheincome.
3.Thearticlenumber(orlocation)inthetaxtreatythatcontainsthesavingclauseanditsexceptions.
4.Thetypeandamountofincomethatqualifiesfortheexemptionfromtax.
5.Sufficientfactstojustifytheexemptionfromtaxunderthetermsofthetreatyarticle.
Example.Article20oftheU.S.-ChinaincometaxtreatyallowsanexemptionfromtaxforscholarshipincomereceivedbyaChinesestudenttemporarilypresentintheUnitedStates.UnderU.S.law,thisstudentwillbecomearesidentalienfortaxpurposesifhisorherstayintheUnitedStatesexceeds5calendaryears.However,paragraph2ofthefirstProtocoltotheU.S.-Chinatreaty(datedApril30,1984)allowstheprovisionsofArticle20tocontinuetoapplyevenaftertheChinesestudentbecomesaresidentalienoftheUnitedStates.AChinesestudentwhoqualifiesforthisexception(underparagraph2ofthefirstprotocol)andisrelyingonthisexceptiontoclaimanexemptionfromtaxonhisorherscholarshiporfellowshipincomewouldattachtoFormW-9astatementthatincludestheinformationdescribedabovetosupportthatexemption.
Ifyouareanonresidentalienoraforeignentity,givetherequestertheappropriatecompletedFormW-8orForm8233.
Backup Withholding
What is backup withholding? PersonsmakingcertainpaymentstoyoumustundercertainconditionswithholdandpaytotheIRS28%ofsuchpayments.Thisiscalled"backupwithholding."Paymentsthatmaybesubjecttobackupwithholdingincludeinterest,tax-exemptinterest,dividends,brokerandbarterexchangetransactions,rents,royalties,nonemployeepay,paymentsmadeinsettlementofpaymentcardandthirdpartynetworktransactions,andcertainpaymentsfromfishingboatoperators.Realestatetransactionsarenotsubjecttobackupwithholding.
YouwillnotbesubjecttobackupwithholdingonpaymentsyoureceiveifyougivetherequesteryourcorrectTIN,makethepropercertifications,andreportallyourtaxableinterestanddividendsonyourtaxreturn.
Payments you receive will be subject to backup withholding if:
1.YoudonotfurnishyourTINtotherequester,
2.YoudonotcertifyyourTINwhenrequired(seethePartIIinstructionsonpage3fordetails),
3.TheIRStellstherequesterthatyoufurnishedanincorrectTIN,
4.TheIRStellsyouthatyouaresubjecttobackupwithholdingbecauseyoudidnotreportallyourinterestanddividendsonyourtaxreturn(forreportableinterestanddividendsonly),or
5.Youdonotcertifytotherequesterthatyouarenotsubjecttobackupwithholdingunder4above(forreportableinterestanddividendaccountsopenedafter1983only).
Certainpayeesandpaymentsareexemptfrombackupwithholding.SeeExempt payee code onpage3andtheseparateInstructionsfortheRequesterofFormW-9formoreinformation.
AlsoseeSpecial rules for partnerships above.
What is FATCA reporting?
TheForeignAccountTaxComplianceAct(FATCA)requiresaparticipatingforeignfinancialinstitutiontoreportallUnitedStatesaccountholdersthatarespecifiedUnitedStatespersons.CertainpayeesareexemptfromFATCAreporting.SeeExemption from FATCA reporting code onpage3andtheInstructionsfortheRequesterofFormW-9formoreinformation.
Updating Your Information
Youmustprovideupdatedinformationtoanypersontowhomyouclaimedtobeanexemptpayeeifyouarenolongeranexemptpayeeandanticipatereceivingreportablepaymentsinthefuturefromthisperson.Forexample,youmayneedtoprovideupdatedinformationifyouareaCcorporationthatelectstobeanScorporation,orifyounolongeraretaxexempt.Inaddition,youmustfurnishanewFormW-9ifthenameorTINchangesfortheaccount;forexample,ifthegrantorofagrantortrustdies.
Penalties
Failure to furnish TIN. IfyoufailtofurnishyourcorrectTINtoarequester,youaresubjecttoapenaltyof$50foreachsuchfailureunlessyourfailureisduetoreasonablecauseandnottowillfulneglect.
Civil penalty for false information with respect to withholding. Ifyoumakeafalsestatementwithnoreasonablebasisthatresultsinnobackupwithholding,youaresubjecttoa$500penalty.
Criminal penalty for falsifying information. Willfullyfalsifyingcertificationsoraffirmationsmaysubjectyoutocriminalpenaltiesincludingfinesand/orimprisonment.
Misuse of TINs. IftherequesterdisclosesorusesTINsinviolationoffederallaw,therequestermaybesubjecttocivilandcriminalpenalties.
Specific InstructionsLine 1
Youmustenteroneofthefollowingonthisline;do not leavethislineblank.Thenameshouldmatchthenameonyourtaxreturn.
IfthisFormW-9isforajointaccount,listfirst,andthencircle,thenameofthepersonorentitywhosenumberyouenteredinPartIofFormW-9.
a.Individual. Generally,enterthenameshownonyourtaxreturn.IfyouhavechangedyourlastnamewithoutinformingtheSocialSecurityAdministration(SSA)ofthenamechange,enteryourfirstname,thelastnameasshownonyoursocialsecuritycard,andyournewlastname.
Note. ITIN applicant: EnteryourindividualnameasitwasenteredonyourFormW-7application,line1a.ThisshouldalsobethesameasthenameyouenteredontheForm1040/1040A/1040EZyoufiledwithyourapplication.
b.Sole proprietor or single-member LLC. Enteryourindividualnameasshownonyour1040/1040A/1040EZonline1.Youmayenteryourbusiness,trade,or"doingbusinessas"(DBA)nameonline2.
c.Partnership, LLC that is not a single-member LLC, C Corporation, or S Corporation.Entertheentity'snameasshownontheentity'staxreturnonline1andanybusiness,trade,orDBAnameonline2.
d.Other entities. EnteryournameasshownonrequiredU.S.federaltaxdocumentsonline1.Thisnameshouldmatchthenameshownonthecharterorotherlegaldocumentcreatingtheentity.Youmayenteranybusiness,trade,orDBAnameonline2.
e.Disregarded entity. ForU.S.federaltaxpurposes,anentitythatisdisregardedasanentityseparatefromitsowneristreatedasa"disregardedentity."SeeRegulationssection301.7701-2(c)(2)(iii).Entertheowner'snameonline1.Thenameoftheentityenteredonline1shouldneverbeadisregardedentity.Thenameonline1shouldbethenameshownontheincometaxreturnonwhichtheincomeshouldbereported.Forexample,ifaforeignLLCthatistreatedasadisregardedentityforU.S.federaltaxpurposeshasasingleownerthatisaU.S.person,theU.S.owner'snameisrequiredtobeprovidedonline1.Ifthedirectowneroftheentityisalsoadisregardedentity,enterthefirstownerthatisnotdisregardedforfederaltaxpurposes.Enterthedisregardedentity'snameonline2,"Businessname/disregardedentityname."Iftheownerofthedisregardedentityisaforeignperson,theownermustcompleteanappropriateFormW-8insteadofaFormW-9.ThisisthecaseeveniftheforeignpersonhasaU.S.TIN.
FormW-9(Rev.12-2014) Page3
Line 2
Ifyouhaveabusinessname,tradename,DBAname,ordisregardedentityname,youmayenteritonline2.
Line 3
Checktheappropriateboxinline3fortheU.S.federaltaxclassificationofthepersonwhosenameisenteredonline1.Checkonlyoneboxinline3.
Limited Liability Company (LLC). Ifthenameonline1isanLLCtreatedasapartnershipforU.S.federaltaxpurposes,checkthe"LimitedLiabilityCompany"boxandenter"P"inthespaceprovided.IftheLLChasfiledForm8832or2553tobetaxedasacorporation,checkthe"LimitedLiabilityCompany"boxandinthespaceprovidedenter"C"forCcorporationor"S"forScorporation.Ifitisasingle-memberLLCthatisadisregardedentity,donotcheckthe"LimitedLiabilityCompany"box;insteadcheckthefirstboxinline3"Individual/soleproprietororsingle-memberLLC."
Line 4, Exemptions
Ifyouareexemptfrombackupwithholdingand/orFATCAreporting,enterintheappropriatespaceinline4anycode(s)thatmayapplytoyou.
Exempt payee code.
•Generally,individuals(includingsoleproprietors)arenotexemptfrombackupwithholding.
•Exceptasprovidedbelow,corporationsareexemptfrombackupwithholdingforcertainpayments,includinginterestanddividends.
•Corporationsarenotexemptfrombackupwithholdingforpaymentsmadeinsettlementofpaymentcardorthirdpartynetworktransactions.
•Corporationsarenotexemptfrombackupwithholdingwithrespecttoattorneys'feesorgrossproceedspaidtoattorneys,andcorporationsthatprovidemedicalorhealthcareservicesarenotexemptwithrespecttopaymentsreportableonForm1099-MISC.
Thefollowingcodesidentifypayeesthatareexemptfrombackupwithholding.Entertheappropriatecodeinthespaceinline4.
1–Anorganizationexemptfromtaxundersection501(a),anyIRA,oracustodialaccountundersection403(b)(7)iftheaccountsatisfiestherequirementsofsection401(f)(2)
2–TheUnitedStatesoranyofitsagenciesorinstrumentalities
3–Astate,theDistrictofColumbia,aU.S.commonwealthorpossession,oranyoftheirpoliticalsubdivisionsorinstrumentalities
4–Aforeigngovernmentoranyofitspoliticalsubdivisions,agencies,orinstrumentalities
5–Acorporation
6–AdealerinsecuritiesorcommoditiesrequiredtoregisterintheUnitedStates,theDistrictofColumbia,oraU.S.commonwealthorpossession
7–AfuturescommissionmerchantregisteredwiththeCommodityFuturesTradingCommission
8–Arealestateinvestmenttrust
9–AnentityregisteredatalltimesduringthetaxyearundertheInvestmentCompanyActof1940
10–Acommontrustfundoperatedbyabankundersection584(a)
11–Afinancialinstitution
12–Amiddlemanknownintheinvestmentcommunityasanomineeorcustodian
13–Atrustexemptfromtaxundersection664ordescribedinsection4947
Thefollowingchartshowstypesofpaymentsthatmaybeexemptfrombackupwithholding.Thechartappliestotheexemptpayeeslistedabove,1through13.
1SeeForm1099-MISC,MiscellaneousIncome,anditsinstructions.
IF the payment is for . . . THEN the payment is exempt for . . .Interestanddividendpayments
Allexemptpayeesexceptfor7
Brokertransactions
Exemptpayees1through4and6through11andallCcorporations.Scorporationsmustnotenteranexemptpayeecodebecausetheyareexemptonlyforsalesofnoncoveredsecuritiesacquiredpriorto2012.
Barterexchangetransactionsandpatronagedividends
Exemptpayees1through4
Paymentsover$600requiredtobereportedanddirectsalesover$5,0001
Generally,exemptpayees1through52
Paymentsmadeinsettlementofpaymentcardorthirdpartynetworktransactions
Exemptpayees1through4
2However,thefollowingpaymentsmadetoacorporationandreportableonForm1099-MISCarenotexemptfrombackupwithholding:medicalandhealthcarepayments,attorneys'fees,grossproceedspaidtoanattorneyreportableundersection6045(f),andpaymentsforservicespaidbyafederalexecutiveagency.
Exemption from FATCA reporting code. ThefollowingcodesidentifypayeesthatareexemptfromreportingunderFATCA.ThesecodesapplytopersonssubmittingthisformforaccountsmaintainedoutsideoftheUnitedStatesbycertainforeignfinancialinstitutions.Therefore,ifyouareonlysubmittingthisformforanaccountyouholdintheUnitedStates,youmayleavethisfieldblank.Consultwiththepersonrequestingthisformifyouareuncertainifthefinancialinstitutionissubjecttotheserequirements.ArequestermayindicatethatacodeisnotrequiredbyprovidingyouwithaFormW-9with"NotApplicable"(oranysimilarindication)writtenorprintedonthelineforaFATCAexemptioncode.
A–Anorganizationexemptfromtaxundersection501(a)oranyindividualretirementplanasdefinedinsection7701(a)(37)
B–TheUnitedStatesoranyofitsagenciesorinstrumentalities
C–Astate,theDistrictofColumbia,aU.S.commonwealthorpossession,oranyoftheirpoliticalsubdivisionsorinstrumentalities
D–Acorporationthestockofwhichisregularlytradedononeormoreestablishedsecuritiesmarkets,asdescribedinRegulationssection1.1472-1(c)(1)(i)
E–AcorporationthatisamemberofthesameexpandedaffiliatedgroupasacorporationdescribedinRegulationssection1.1472-1(c)(1)(i)
F–Adealerinsecurities,commodities,orderivativefinancialinstruments(includingnotionalprincipalcontracts,futures,forwards,andoptions)thatisregisteredassuchunderthelawsoftheUnitedStatesoranystate
G–Arealestateinvestmenttrust
H–Aregulatedinvestmentcompanyasdefinedinsection851oranentityregisteredatalltimesduringthetaxyearundertheInvestmentCompanyActof1940
I–Acommontrustfundasdefinedinsection584(a)
J–Abankasdefinedinsection581
K–Abroker
L–Atrustexemptfromtaxundersection664ordescribedinsection4947(a)(1)
M–Ataxexempttrustunderasection403(b)planorsection457(g)plan
Note. YoumaywishtoconsultwiththefinancialinstitutionrequestingthisformtodeterminewhethertheFATCAcodeand/orexemptpayeecodeshouldbecompleted.
Line 5
Enteryouraddress(number,street,andapartmentorsuitenumber).ThisiswheretherequesterofthisFormW-9willmailyourinformationreturns.
Line 6
Enteryourcity,state,andZIPcode.
Part I. Taxpayer Identification Number (TIN)
Enter your TIN in the appropriate box. IfyouarearesidentalienandyoudonothaveandarenoteligibletogetanSSN,yourTINisyourIRSindividualtaxpayeridentificationnumber(ITIN).Enteritinthesocialsecuritynumberbox.IfyoudonothaveanITIN,seeHow to get a TIN below.
IfyouareasoleproprietorandyouhaveanEIN,youmayentereitheryourSSNorEIN.However,theIRSprefersthatyouuseyourSSN.
Ifyouareasingle-memberLLCthatisdisregardedasanentityseparatefromitsowner(seeLimited Liability Company (LLC) onthispage),entertheowner'sSSN(orEIN,iftheownerhasone).Donotenterthedisregardedentity'sEIN.IftheLLCisclassifiedasacorporationorpartnership,entertheentity'sEIN.
Note. Seethechartonpage4forfurtherclarificationofnameandTINcombinations.
How to get a TIN. IfyoudonothaveaTIN,applyforoneimmediately.ToapplyforanSSN,getFormSS-5,ApplicationforaSocialSecurityCard,fromyourlocalSSAofficeorgetthisformonlineatwww.ssa.gov .Youmayalsogetthisformbycalling1-800-772-1213.UseFormW-7,ApplicationforIRSIndividualTaxpayerIdentificationNumber,toapplyforanITIN,orFormSS-4,ApplicationforEmployerIdentificationNumber,toapplyforanEIN.YoucanapplyforanEINonlinebyaccessingtheIRSwebsiteatwww.irs.gov/businesses andclickingonEmployerIdentificationNumber(EIN)underStartingaBusiness.YoucangetFormsW-7andSS-4fromtheIRSbyvisitingIRS.govorbycalling1-800-TAX-FORM(1-800-829-3676).
IfyouareaskedtocompleteFormW-9butdonothaveaTIN,applyforaTINandwrite"AppliedFor"inthespacefortheTIN,signanddatetheform,andgiveittotherequester.Forinterestanddividendpayments,andcertainpaymentsmadewithrespecttoreadilytradableinstruments,generallyyouwillhave60daystogetaTINandgiveittotherequesterbeforeyouaresubjecttobackupwithholdingonpayments.The60-dayruledoesnotapplytoothertypesofpayments.YouwillbesubjecttobackupwithholdingonallsuchpaymentsuntilyouprovideyourTINtotherequester.
Note. Entering"AppliedFor"meansthatyouhavealreadyappliedforaTINorthatyouintendto
applyforonesoon.
Caution: A disregarded U.S. entity that has a foreign owner must use the appropriate Form W-8.
FormW-9(Rev.12-2014) Page4
Part II. Certification
ToestablishtothewithholdingagentthatyouareaU.S.person,orresidentalien,signFormW-9.Youmayberequestedtosignbythewithholdingagentevenifitems1,4,or5belowindicateotherwise.
Forajointaccount,onlythepersonwhoseTINisshowninPartIshouldsign(whenrequired).Inthecaseofadisregardedentity,thepersonidentifiedonline1mustsign.Exemptpayees,seeExemptpayee code earlier.
Signature requirements. Completethecertificationasindicatedinitems1through5below.
1. Interest, dividend, and barter exchange accounts opened before 1984 and brokeraccounts considered active during 1983. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertification.
2. Interest, dividend, broker, and barter exchange accounts opened after 1983 and brokeraccounts considered inactive during 1983. Youmustsignthecertificationorbackupwithholdingwillapply.IfyouaresubjecttobackupwithholdingandyouaremerelyprovidingyourcorrectTINtotherequester,youmustcrossoutitem2inthecertificationbeforesigningtheform.
3. Real estate transactions. Youmustsignthecertification.Youmaycrossoutitem2ofthecertification.
4. Other payments. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertificationunlessyouhavebeennotifiedthatyouhavepreviouslygivenanincorrectTIN."Otherpayments"includepaymentsmadeinthecourseoftherequester'stradeorbusinessforrents,royalties,goods(otherthanbillsformerchandise),medicalandhealthcareservices(includingpaymentstocorporations),paymentstoanonemployeeforservices,paymentsmadeinsettlementofpaymentcardandthirdpartynetworktransactions,paymentstocertainfishingboatcrewmembersandfishermen,andgrossproceedspaidtoattorneys(includingpaymentstocorporations).
5. Mortgage interest paid by you, acquisition or abandonment of secured property,cancellation of debt, qualified tuition program payments (under section 529), IRA, CoverdellESA, Archer MSA or HSA contributions or distributions, and pension distributions. YoumustgiveyourcorrectTIN,butyoudonothavetosignthecertification.
What Name and Number To Give the Requester
1Listfirstandcirclethenameofthepersonwhosenumberyoufurnish.IfonlyonepersononajointaccounthasanSSN,thatperson'snumbermustbefurnished.
2Circletheminor'snameandfurnishtheminor'sSSN.
For this type of account: Give name and SSN of: 1.Individual Theindividual2.Twoormoreindividuals(jointaccount) Theactualowneroftheaccountor,ifcombined
funds,thefirstindividualontheaccount13.Custodianaccountofaminor(UniformGifttoMinorsAct)
Theminor2
4.a.Theusualrevocablesavingstrust(grantorisalsotrustee)
Thegrantor-trustee1
b.So-calledtrustaccountthatisnotalegalorvalidtrustunderstatelaw
Theactualowner1
5.Soleproprietorshipordisregardedentityownedbyanindividual
Theowner3
6.GrantortrustfilingunderOptionalForm1099FilingMethod1(seeRegulationsection1.671-4(b)(2)(i)(A))
Thegrantor*
For this type of account: Give name and EIN of: 7.Disregardedentitynotownedbyanindividual Theowner8.Avalidtrust,estate,orpensiontrust Legalentity49.CorporationorLLCelectingcorporatestatusonForm8832orForm2553
Thecorporation
10.Association,club,religious,charitable,educational,orothertax-exemptorganization
Theorganization
11.Partnershipormulti-memberLLC Thepartnership12.Abrokerorregisterednominee Thebrokerornominee13.AccountwiththeDepartmentofAgriculturein
thenameofapublicentity(suchasastateorlocalgovernment,schooldistrict,orprison)thatreceivesagriculturalprogrampayments
Thepublicentity
14.GrantortrustfilingundertheForm1041FilingMethodortheOptionalForm1099FilingMethod2(seeRegulationsection1.671-4(b)(2)(i)(B))
Thetrust
3YoumustshowyourindividualnameandyoumayalsoenteryourbusinessorDBAnameonthe"Businessname/disregardedentity"nameline.YoumayuseeitheryourSSNorEIN(ifyouhaveone),buttheIRSencouragesyoutouseyourSSN.
4Listfirstandcirclethenameofthetrust,estate,orpensiontrust.(DonotfurnishtheTINofthepersonalrepresentativeortrusteeunlessthelegalentityitselfisnotdesignatedintheaccounttitle.)AlsoseeSpecial rules for partnerships onpage2.
* Note. GrantoralsomustprovideaFormW-9totrusteeoftrust.
Note. Ifnonameiscircledwhenmorethanonenameislisted,thenumberwillbeconsideredtobethatofthefirstnamelisted.
Secure Your Tax Records from Identity Theft
Identitytheftoccurswhensomeoneusesyourpersonalinformationsuchasyourname,SSN,orotheridentifyinginformation,withoutyourpermission,tocommitfraudorothercrimes.AnidentitythiefmayuseyourSSNtogetajobormayfileataxreturnusingyourSSNtoreceivearefund.
Toreduceyourrisk:
•ProtectyourSSN,
•EnsureyouremployerisprotectingyourSSN,and
•Becarefulwhenchoosingataxpreparer.
IfyourtaxrecordsareaffectedbyidentitytheftandyoureceiveanoticefromtheIRS,respondrightawaytothenameandphonenumberprintedontheIRSnoticeorletter.
Ifyourtaxrecordsarenotcurrentlyaffectedbyidentitytheftbutyouthinkyouareatriskduetoalostorstolenpurseorwallet,questionablecreditcardactivityorcreditreport,contacttheIRSIdentityTheftHotlineat1-800-908-4490orsubmitForm14039.
Formoreinformation,seePublication4535,IdentityTheftPreventionandVictimAssistance.
Victimsofidentitytheftwhoareexperiencingeconomicharmorasystemproblem,orareseekinghelpinresolvingtaxproblemsthathavenotbeenresolvedthroughnormalchannels,maybeeligibleforTaxpayerAdvocateService(TAS)assistance.YoucanreachTASbycallingtheTAStoll-freecaseintakelineat1-877-777-4778orTTY/TDD1-800-829-4059.
Protect yourself from suspicious emails or phishing schemes. Phishingisthecreationanduseofemailandwebsitesdesignedtomimiclegitimatebusinessemailsandwebsites.Themostcommonactissendinganemailtoauserfalselyclaimingtobeanestablishedlegitimateenterpriseinanattempttoscamtheuserintosurrenderingprivateinformationthatwillbeusedforidentitytheft.
TheIRSdoesnotinitiatecontactswithtaxpayersviaemails.Also,theIRSdoesnotrequestpersonaldetailedinformationthroughemailorasktaxpayersforthePINnumbers,passwords,orsimilarsecretaccessinformationfortheircreditcard,bank,orotherfinancialaccounts.
IfyoureceiveanunsolicitedemailclaimingtobefromtheIRS,[email protected] .YoumayalsoreportmisuseoftheIRSname,logo,orotherIRSpropertytotheTreasuryInspectorGeneralforTaxAdministration(TIGTA)at1-800-366-4484.YoucanforwardsuspiciousemailstotheFederalTradeCommissionat:[email protected] orcontactthematwww.ftc.gov/idtheft or1-877-IDTHEFT(1-877-438-4338).
VisitIRS.govtolearnmoreaboutidentitytheftandhowtoreduceyourrisk.
Privacy Act Notice
Section6109oftheInternalRevenueCoderequiresyoutoprovideyourcorrectTINtopersons(includingfederalagencies)whoarerequiredtofileinformationreturnswiththeIRStoreportinterest,dividends,orcertainotherincomepaidtoyou;mortgageinterestyoupaid;theacquisitionorabandonmentofsecuredproperty;thecancellationofdebt;orcontributionsyoumadetoanIRA,ArcherMSA,orHSA.ThepersoncollectingthisformusestheinformationontheformtofileinformationreturnswiththeIRS,reportingtheaboveinformation.RoutineusesofthisinformationincludegivingittotheDepartmentofJusticeforcivilandcriminallitigationandtocities,states,theDistrictofColumbia,andU.S.commonwealthsandpossessionsforuseinadministeringtheirlaws.Theinformationalsomaybedisclosedtoothercountriesunderatreaty,tofederalandstateagenciestoenforcecivilandcriminallaws,ortofederallawenforcementandintelligenceagenciestocombatterrorism.YoumustprovideyourTINwhetherornotyouarerequiredtofileataxreturn.Undersection3406,payersmustgenerallywithholdapercentageoftaxableinterest,dividend,andcertainotherpaymentstoapayeewhodoesnotgiveaTINtothepayer.Certainpenaltiesmayalsoapplyforprovidingfalseorfraudulentinformation.
QuestionsandrequestsforassistancemaybedirectedtotheInformationAgentatitsaddressesandtelephonenumberssetforthbelow.RequestsforcopiesoftheOffertoPurchase,thisLetterofTransmittal,theNoticeofGuaranteedDelivery,theIRSFormW-9andothertenderoffermaterialsmayalsobedirectedtotheInformationAgent.Ashareholdermayalsocontactsuchshareholders'broker,dealer,commercialbank,trustcompanyorothernomineeforassistanceconcerningtheOffer.
The Information Agent for the Offer is:
AllianceAdvisorsLLC
200BroadacresDrive,3rdFloorBloomfield,NJ07003
Call Collect: (973)873-7780or
Call Toll-Free: (888)991-1293Email: [email protected]
February2,2017
QuickLinks
EXHIBIT(a)(1)(B)
GUARANTEEOFSIGNATURE(S)(Ifrequired—SeeInstructions1and5)APPLYMEDALLIONGUARANTEESTAMPBELOWINSTRUCTIONSFORMINGPARTOFTHETERMSANDCONDITIONSOFTHEOFFER
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(C)
Notice of Guaranteed Delivery For Tender of Shares of Common Stock
of
Arctic Cat Inc. at
$18.50 Per Share by
Aces Acquisition Corp.,
Textron Specialized Vehicles Inc. and
Textron Inc.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017, UNLESS THE OFFER ISEXTENDED.
ThisNoticeofGuaranteedDelivery(asitmaybeamendedorsupplemented,the"NoticeofGuaranteedDelivery"),oronesubstantiallyequivalenttothisNoticeofGuaranteedDelivery,mustbeusedtoaccepttheOffer(asdefinedbelow)ifcertificatesrepresentingtenderedShares(asdefinedbelow)arenotimmediatelyavailableorthecertificatesrepresentingtenderedSharesandallotherrequireddocumentscannotbedeliveredtoWellsFargoBank,N.A.(the"Depositary")priortotheexpirationoftheOfferoriftheprocedurefordeliverybybook-entrytransfercannotbecompletedpriortotheexpirationoftheOffer.ThisinstrumentmaybedeliveredortransmittedbyfacsimiletransmissionormailedtotheDepositary.SeeSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase(asdefinedbelow).
The Depositary for the Offer is:
Wells Fargo Bank, N.A.
DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR TRANSMISSIONOF INSTRUCTIONS VIA FACSIMILE TO A NUMBER OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY TOTHE DEPOSITARY.
THIS FORM IS NOT TO BE USED TO GUARANTEE SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TOBE GUARANTEED BY AN "ELIGIBLE INSTITUTION" UNDER THE INSTRUCTIONS TO THE LETTER OF TRANSMITTAL, SUCH SIGNATUREGUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX IN THE LETTER OF TRANSMITTAL.
THE GUARANTEE ON THE NEXT PAGE MUST BE COMPLETED.
By Mail: By5:00p.m.NYCtimeon
ExpirationDateWellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActionsP.O.Box64858
St.Paul,Minnesota55164-0858
By Facsimile Transmission:
WellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActions(800)468-9716(phone)(866)734-9952(fax)
By Hand or Overnight Courier: By5:00p.m.NYCtimeon
ExpirationDateWellsFargoBank,N.A.ShareownerServices
VoluntaryCorporateActions1110CentrePointeCurve,Suite101MendotaHeights,Minnesota55120
LadiesandGentlemen:
Theundersignedherebytender(s)to:
AcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),uponthetermsandsubjecttotheconditionssetforthintheoffertopurchase,datedFebruary2,2017(asitmaybeamendedorsupplementedfromtimetotime,the"OffertoPurchase")andintherelatedletteroftransmittal(asitmaybeamendedorsupplementedfromtimetotime,the"LetterofTransmittal"and,togetherwiththeOffertoPurchase,the"Offer"),receiptofwhichisherebyacknowledged,thenumberofsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),indicatedbelowpursuanttotheguaranteeddeliveryproceduresetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.
Name(s) of Record Holder(s)
Number of Shares Tendered
Certificate Nos. (if available)
Address(es)
Zip Code
(Area Code) Telephone No.
Account Number
X Dated: , 2017
X Dated: , 2017
Signatures(s) of Record Holder(s)
GUARANTEE (NOT TO BE USED FOR SIGNATURE GUARANTEE)
Theundersigned,abank,broker,dealer,creditunion,savingsassociationorotherentitythatisamemberingoodstandingoftheSecuritiesTransferAgentsMedallionProgramoranyother"eligibleguarantorinstitution,"asdefinedinRule17Ad-15undertheSecuritiesExchangeActof1934,asamended(each,an"EligibleInstitution"),herebyguaranteesthedeliverytotheDepositary,atoneofitsaddressessetforthabove,ofthecertificatesevidencingallSharestenderedbythisNoticeofGuaranteedDeliveryinproperformfortransfer,orconfirmationofthebook-entrytransferofSharesintotheDepositary'saccountatTheDepositoryTrustCompany,ineithercase,togetherwithdeliveryofaproperlycompletedanddulyexecutedLetterofTransmittalwithanyrequiredsignatureguarantee,oranAgent'sMessage(asdefinedintheLetterofTransmittal),andanyotherdocumentsrequiredbytheLetterofTransmittal,withinthree(3)NASDAQtradingdaysafterthedateofexecutionofthisNoticeofGuaranteedDelivery.
TheEligibleInstitutionthatcompletesthisformmustcommunicatetheguaranteetotheDepositaryandmustdelivertheLetterofTransmittalandcertificatesrepresentingtenderedSharestotheDepositarywithinthetimeperiodindicatedherein.FailuretodosomayresultinfinanciallosstosuchEligibleInstitution.
NOTE:DO NOT SEND CERTIFICATES REPRESENTING TENDERED SHARES WITH THIS NOTICE. CERTIFICATES REPRESENTINGTENDERED SHARES SHOULD BE SENT WITH YOUR LETTER OF TRANSMITTAL.
X
Names of Firm
Authorized Signature
Address(es)
Name (Please Print)
Zip Code
Title
(Area Code) Telephone No.
Dated: , 2017
QuickLinks
GUARANTEE(NOTTOBEUSEDFORSIGNATUREGUARANTEE)
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(D)
Offer to Purchase for Cash All Outstanding Shares of Common Stock
of
Arctic Cat Inc. at
$18.50 Per Share by
Aces Acquisition Corp., Textron Specialized Vehicles Inc.
and
Textron Inc.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017, UNLESS THE OFFERIS EXTENDED.
February2,2017
ToBrokers,Dealers,CommercialBanks,TrustCompaniesandOtherNominees:
WehavebeenappointedbyAcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),toactasInformationAgentinconnectionwithPurchaser'soffertopurchasealloftheoutstandingsharesofcommonstock,parvalue$0.01pershare(the"ArcticCatCommonStock"orthe"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchase(asdefinedbelow)andtheLetterofTransmittalenclosedherewith.
HoldersofShareswhosecertificatesrepresentingsuchShares("Certificates")arenotimmediatelyavailableorwhocannotdelivertheirCertificatesandallotherrequireddocumentstotheDepositary(asdefinedbelow)priortotheexpirationoftheOffer,orwhocannotcompletetheprocedureforbook-entrytransferpriortotheexpirationoftheOffer,musttendertheirSharesaccordingtotheguaranteeddeliveryproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.
PleasefurnishcopiesoftheenclosedmaterialstothoseofyourclientsforwhoseaccountsyouholdSharesregisteredinyournameorinthenameofyournominee.
EnclosedherewithforyourinformationandforwardingtoyourclientsforwhomyouholdSharesregisteredinyournameorinthenameofyournomineearecopiesofthefollowingdocuments:
1. TheOffertoPurchase,datedFebruary2,2017(asitmaybeamendedorsupplemented,the"OffertoPurchase").
2. TheLetterofTransmittal(asitmaybeamendedorsupplementedthe"LetterofTransmittal")totenderSharesforyouruseandfortheinformationofyourclients.
3. TheNoticeofGuaranteedDeliveryforSharestobeusedtoaccepttheOfferifCertificatesarenotimmediatelyavailableorifsuchCertificatesandallotherrequireddocumentscannotbedeliveredtoWellsFargoBank,N.A.(the"Depositary")priortotheexpirationoftheOfferoriftheprocedureforbook-entrytransfercannotbecompletedbytheexpirationoftheOffer.
4. AprintedformofletterwhichmaybesenttoyourclientsforwhoseaccountsyouholdSharesregisteredinyournameorinthenameofyournominee,withspaceprovidedforobtainingsuchclients'instructionswithregardtotheOffer.
YOURPROMPTACTIONISREQUESTED.WEURGEYOUTOCONTACTYOURCLIENTSASPROMPTLYASPOSSIBLE.PLEASENOTETHATTHEOFFERANDWITHDRAWALRIGHTSEXPIREAT5:00P.M.,NEWYORKCITYTIME,ONMARCH3,2017,UNLESSTHEOFFERISEXTENDED.
ThereisnofinancingconditiontotheOffer.TheOfferisconditionedupon,amongotherthings,(i)thesatisfactionoftheMinimumCondition(asdescribedbelow)and(ii)thenon-occurrenceofaCompanyMaterialAdverseEffect(asdefinedintheMergerAgreement(asdefinedbelow)).Theterm"MinimumCondition"isdefinedintheOffertoPurchaseandgenerallyrequiresthatthenumberofSharesvalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOfferwhich,togetherwiththenumberofShares(ifany)thenbeneficiallyownedbyTextronorPurchaser,intheaggregate,orwithrespecttowhichTextronorPurchaserotherwisehas,directlyorindirectly,solevotingpower,representsatleastoneSharemorethan50%oftheFullyDilutedShares(asdefinedbelow).PursuanttotheMergerAgreement,thesatisfactionoftheMinimumConditionwillbedeterminedwithouttreatingasvalidlytenderedSharestenderedviaguaranteeddeliveryproceduresunlesstheDepositaryhasreceivedallrequireditemsonaccountofsuchSharesinsettlementorsatisfactionofanysuchguaranteeatorpriortotheexpirationoftheOffer.TheOfferisalsosubjecttootherconditionssetforthintheOffertoPurchase.SeeSection15—"ConditionsoftheOffer"oftheOffertoPurchase.
"FullyDilutedShares"meansalloutstandingsecuritiesentitledtovoteintheelectionofdirectorsofArcticCatorontheadoptionoftheMergerAgreementandapprovaloftheMerger,togetherwithallsuchsecuritieswhichArcticCatwouldberequiredorpermittedtoissueassumingtheconversionorexchangeofanythen-outstandingwarrants,options,securitiesorinstrumentsconvertibleorexchangeableinto,orrightsexercisablefor,suchsecurities,whetherornotthenconvertible,exchangeableorexercisable.
TheOfferisbeingmadepursuanttoanAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat.TheMergerAgreementprovides,amongotherthings,forthemakingoftheOfferbyPurchaser,andfurtherprovidesthat,followingthecompletionoftheOffer,uponthetermsandsubjecttotheconditionssetforthintheMergerAgreement,andinaccordancewiththeMinnesotaBusinessCorporationAct(the"MBCA"),PurchaserwillmergewithandintoArcticCat(the"Merger"),withArcticCatcontinuingasthesurvivingcorporationandanindirectwhollyownedsubsidiaryofTextron.
OnJanuary23,2017,eachoftheArcticCatBoardofDirectors(the"ArcticCatBoard")and,asrequiredbytheMBCA,acommitteeofdisinteresteddirectorsoftheArcticCatBoard,amongotherthings,(i)determinedthattheMergerAgreementandthetransactionscontemplatedtherebyareadvisable,fairtoandinthebestinterestsofArcticCatanditsshareholders,(ii)approvedandadoptedtheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMergerand(iii)recommendedthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserintheOfferand,ifrequiredtoconsummatetheMerger,suchshareholdersapproveandadopttheMergerAgreementandtheMerger.Accordingly,andforotherreasonsdescribedinmoredetailinArcticCat'sTenderOfferSolicitation/RecommendationStatementonSchedule14D-9thatisbeingfiledwiththeUnitedStatesSecuritiesandExchangeCommission(the"SEC")and,togetherwiththeOffertoPurchase,theLetterofTransmittalandotherrelatedmaterials,mailedtotheshareholdersofArcticCatinconnectionwiththeOffer,theArcticCatBoardunanimouslyrecommendsthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.
2
Inallcases,PurchaserwillpayforSharespurchasedpursuanttotheOfferonlyaftertimelyreceiptbytheDepositaryof:(i)CertificatesrepresentingsuchSharesortimelyconfirmationofabook-entrytransferofsuchSharesintotheDepositary'saccountatTheDepositoryTrustCompanypursuanttotheproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase;(ii)aLetterofTransmittal,properlycompletedanddulyexecuted,withanyrequiredsignatureguaranteesoranAgent'sMessage(asdefinedinSection2—"AcceptanceforPaymentandPaymentforShares"oftheOffertoPurchase)inconnectionwithabook-entrytransfer;and(iii)anyotherdocumentsrequiredbytheLetterofTransmittal.
HoldersofShareswhoseCertificatesarenotimmediatelyavailableorwhocannotdelivertheirCertificatesandallotherrequireddocumentstotheDepositarypriortotheexpirationoftheOffer,orwhocannotcompletetheprocedurefordeliverybybook-entrytransferonatimelybasis,musttendertheirSharesaccordingtotheguaranteeddeliveryproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.Purchaserwillnotpayanyfeesorcommissionstoanybroker,dealer,commercialbank,trustcompanyorothernominee(otherthantotheDepositaryandtheInformationAgent)(asdescribedintheOffertoPurchase)forsolicitingtendersofSharespursuanttotheOffer.Purchaserwillreimburseyou,uponrequest,forcustomaryclericalandmailingexpensesincurredbyyouinforwardinganyoftheenclosedmaterialstoyourclients.PurchaserwillpayorcausetobepaidanystocktransfertaxespayableonthetransferofSharestoit,exceptasotherwiseprovidedinInstruction6oftheLetterofTransmittal.
AnyinquiriesyoumayhavewithrespecttotheOffershouldbeaddressedtotheInformationAgentatitsaddressandtelephonenumbersetforthonthebackcoveroftheOffertoPurchase.AdditionalcopiesoftheenclosedmaterialsmaybeobtainedfromtheInformationAgent.
Nothing contained herein or in the enclosed documents shall make you or any other person, the agent of Purchaser, Textron, the Depositary or theInformation Agent, or any affiliate of any of them, or authorize you or any other person to make any statement or use any document on behalf of any of themin connection with the Offer other than the enclosed documents and the statements contained therein.
3
Verytrulyyours,
AllianceAdvisorsLLC
QuickLinks
EXHIBIT(a)(1)(D)
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(E)
Offer to Purchase for Cash All Outstanding Shares of Common Stock
of
Arctic Cat Inc. at
$18.50 Per Share by
Aces Acquisition Corp., Textron Specialized Vehicles Inc.
and
Textron Inc.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017, UNLESS THE OFFERIS EXTENDED.
February2,2017
ToOurClients:
Enclosedforyourconsiderationisanoffertopurchase,datedFebruary2,2017(asitmaybeamendedorsupplementedfromtimetotime,the"OffertoPurchase"),andtherelatedletteroftransmittal(asitmaybeamendedorsupplementedfromtimetotime,the"LetterofTransmittal,"andtogetherwiththeOffertoPurchase,the"Offer"),relatingtoanofferbyAcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),topurchasealloftheoutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchaseandtheLetterofTransmittalenclosedherewith.
HoldersofShareswhosecertificatesrepresentingsuchShares("Certificates")arenotimmediatelyavailableorwhocannotdelivertheirCertificatesandallotherrequireddocumentstotheDepositary(asdefinedintheOffertoPurchase)priortotheexpirationoftheOffer,orwhocannotcompletetheprocedureforbook-entrytransferpriortotheexpirationoftheOffer,musttendertheirSharesaccordingtotheguaranteeddeliveryproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.
We are the holder of record of Shares held by us for your account. A tender of such Shares can be made only by us as the holder of record and pursuantto your instructions. The Letter of Transmittal is furnished to you for your information only and cannot be used by you to tender Shares held by us for youraccount.
WerequestinstructionsastowhetheryouwishtohaveustenderonyourbehalfanyorallofsuchSharesheldbyusforyouraccount,pursuanttothetermsandsubjecttotheconditionssetforthintheOffertoPurchase.
Yourattentionisdirectedtothefollowing:
1. TheOfferpriceis$18.50perShare,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.
2. TheOfferismadeforalloutstandingShares.
3. TheOfferisbeingmadepursuanttoanAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat.TheMergerAgreementprovides,amongotherthings,forthemakingoftheOfferbyPurchaser,andfurtherprovidesthat,followingthecompletionoftheOffer,uponthetermsandsubjecttotheconditionssetforthintheMergerAgreement,andinaccordancewiththeMinnesotaBusinessCorporationAct(the"MBCA"),PurchaserwillmergewithandintoArcticCat(the"Merger"),withArcticCatcontinuingasthesurvivingcorporationandanindirectwhollyownedsubsidiaryofTextron.
4. OnJanuary23,2017,eachoftheArcticCatBoardofDirectors(the"ArcticCatBoard")and,asrequiredbytheMBCA,acommitteeofdisinteresteddirectorsoftheArcticCatBoard,amongotherthings,(i)determinedthattheMergerAgreementandthetransactionscontemplatedtherebyareadvisable,fairtoandinthebestinterestsofArcticCatanditsshareholders,(ii)approvedandadoptedtheMergerAgreementandthetransactionscontemplatedthereby,includingtheOfferandtheMergerand(iii)recommendedthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserintheOfferand,ifrequiredtoconsummatetheMerger,suchshareholdersapproveandadopttheMergerAgreementandtheMerger.Accordingly,andforotherreasonsdescribedinmoredetailinArcticCat'sTenderOfferSolicitation/RecommendationStatementonSchedule14D-9thatisbeingfiledwiththeUnitedStatesSecuritiesandExchangeCommission(the"SEC")and,togetherwiththeOffertoPurchase,theLetterofTransmittalandotherrelatedmaterials,mailedtotheshareholdersofArcticCatinconnectionwiththeOffer,theArcticCatBoardunanimouslyrecommendsthatArcticCat'sshareholdersaccepttheOfferandtendertheirSharestoPurchaserpursuanttotheOffer.
5. TheOfferandwithdrawalrightswillexpireat5:00P.M.,NewYorkCitytime,onMarch3,2017,unlesstheOfferisextended.
6. ThereisnofinancingconditiontotheOffer.TheOfferisconditionedupon,amongotherthings,(i)thesatisfactionoftheMinimumCondition(asdescribedbelow)and(ii)thenon-occurrenceofaCompanyMaterialAdverseEffect(asdefinedintheMergerAgreement).Theterm"MinimumCondition"isdefinedintheOffertoPurchaseandgenerallyrequiresthatthenumberofSharesvalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOfferwhich,togetherwiththenumberofShares(ifany)thenbeneficiallyownedbyTextronorPurchaser,intheaggregate,orwithrespecttowhichTextronorPurchaserotherwisehas,directlyorindirectly,solevotingpower,representsatleastoneSharemorethan50%oftheFullyDilutedShares.PursuanttotheMergerAgreement,thesatisfactionoftheMinimumConditionwillbedeterminedwithouttreatingasvalidlytenderedSharestenderedviaguaranteeddeliveryproceduresunlesstheDepositaryhasreceivedallrequireditemsonaccountofsuchSharesinsettlementorsatisfactionofanysuchguaranteeatorpriortotheexpirationoftheOffer.TheOfferisalsosubjecttootherconditionssetforthintheOffertoPurchase.SeeSection15—"ConditionsoftheOffer"oftheOffertoPurchase."FullyDilutedShares"meansalloutstandingsecuritiesentitledtovoteintheelectionofdirectorsofArcticCatorontheadoptionoftheMergerAgreementandapprovaloftheMerger,togetherwithallsuchsecuritieswhichArcticCatwouldberequiredorpermittedtoissueassumingtheconversionorexchangeofanythen-outstandingwarrants,options,securitiesorinstrumentsconvertibleorexchangeableinto,orrightsexercisablefor,suchsecurities,whetherornotthenconvertible,exchangeableorexercisable.
TheOfferisbeingmadesolelybytheOffertoPurchaseandtherelatedLetterofTransmittalandanyamendmentsorsupplementsthereto.PurchaserisnotawareofanyjurisdictionwherethemakingoftheOfferisprohibitedbyanyadministrativeorjudicialactionpursuanttoanyvalidstatestatute.If
2
PurchaserbecomesawareofanyvalidstatestatuteprohibitingthemakingoftheOffer,Purchaserwillmakeagoodfaithefforttocomplywiththatstatestatute.If,afteragoodfaitheffort,Purchasercannotcomplywiththestatestatute,theOfferwillnotbemadeto,norwillPurchaseraccepttendersfromoronbehalfof,ArcticCatshareholdersinthatstate.Exceptassetforthabove,theOfferisbeingmadetoallholdersofShares.Inanyjurisdictionwherethesecurities,"bluesky"orotherlawsrequiretheOffertobemadebyalicensedbrokerordealer,theOfferwillbedeemedtobemadeonbehalfofPurchaserbyoneormoreregisteredbrokersordealerstobedesignatedbyPurchaserthatarelicensedunderthelawsofsuchjurisdiction.
IfyouwishtohaveustenderanyoralloftheSharesheldbyusforyouraccount,pleaseinstructusbycompleting,executingandreturningtoustheinstructionformcontainedinthisletter.IfyouauthorizeatenderofyourShares,allsuchShareswillbetenderedunlessotherwisespecifiedinsuchinstructionform.YourinstructionsshouldbeforwardedtousinampletimetopermitustosubmitatenderonyourbehalfpriortotheexpirationoftheOffer.
3
Instructions with Respect to the Offer to Purchase for Cash
All Outstanding Shares of Common Stock
of
Arctic Cat Inc.by
Aces Acquisition Corp.,
Textron Specialized Vehicles Inc.and
Textron Inc.$18.50 Per Share
Theundersignedacknowledge(s)receiptofyourletterenclosingtheoffertopurchase,datedFebruary2,2017(asitmaybeamendedorsupplemented,the"OffertoPurchase"),andtherelatedletteroftransmittal(asitmaybeamendedorsupplemented,the"LetterofTransmittal"),pursuanttoanofferbyAcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),topurchasealloftheoutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchaseandtheLetterofTransmittal.
ThiswillinstructyoutotenderthenumberofSharesindicatedbelow(or,ifnonumberisindicatedbelow,allShares)whichareheldbyyoufortheaccountoftheundersigned,uponthetermsandsubjecttotheconditionssetforthintheOffertoPurchaseandtheLetterofTransmittalfurnishedtotheundersigned.
The method of delivery of this document is at the election and risk of the tendering shareholder. If delivery is by mail, then registered mail with returnreceipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
Dated:,2017
* Unless otherwise indicated, it will be assumed that all of your Shares held by us for your account are to be tendered.
2
AccountNumber:
NumberofSharestobeTendered*:
SIGN HERE
Signature(s)
Print Name(s)
Address(es)
(Area Code) Telephone No.
Tax Identification or Social Security Number(s)
QuickLinks
EXHIBIT(a)(1)(E)
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(F)
TENDER OFFER INSTRUCTION FORM ARCTIC CAT INC. RETIREMENT SAVINGS PLAN
BEFORECOMPLETINGTHISFORM,PLEASECAREFULLYREADTHEACCOMPANYINGINFORMATION
InresponsetothetenderofferbyAcesAcquisitionCorp.,aMinnesotacorporationandadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation,whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation,topurchasealloutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation,atapriceof$18.50perShare,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheoffertopurchase,datedFebruary2,2017,andintherelatedletteroftransmittal(collectively,the"Offer"),IherebyinstructPrudentialInvestmentManagementServicesLLC(the"Trustee")totendertheSharesallocatedtomyaccountundertheArcticCatInc.RetirementSavingsPlan(the"Plan")inresponsetotheOfferasfollows:
Your participation in this tender offer is voluntary. If you wish to make an election please proceed below. If you do not wish to make an election, no action isrequired.
PLEASE COMPLETE THE REMAINDER OF THE FORM
o I direct the Trustee to tender ALL of the Shares allocated to my account under the Plan.
o % (insert a percentage in whole numbers, 1%-99%), I direct the Trustee to tender the written percentage of the Shares allocated to my accountunder the Plan. (If you check this box but fail to insert a percentage, your direction will be treated as a direction NOT to tender any of the Shares allocated toyour account under the Plan.)
You may submit your tender instruction to Wells Fargo Bank, N.A. the Depositary for the Offer.
Tender Offer Instructions that are not timely received will be treated as an instruction not to tender the Shares.
Please submit your written instructions by mailing this completed form promptly in the enclosed envelope or via overnight courier service to WellsFargo Bank, N.A., Attn: Voluntary Corporate Actions, 1110 Centre Pointe Curve, Suite 101, Mendota Heights, MN 55120
Shares Held Outside the Plan. TheprocessoutlinedinthisTenderOfferInstructionFormappliesonlytoSharesallocatedtoyouraccountunderthePlan.IfyouwishtotenderanySharesotherthantheSharesallocatedtoyouraccountunderthePlan,youmustfollowthegeneralinstructionssetforthintheOffer.
Withdrawal Rights. Yourdirectionwillbedeemedirrevocableunlesswithdrawnby5p.m.,NewYorkCitytime,onTuesday,February28,2017,unlessthetenderofferisextended.Inordertomakeaneffectivewithdrawal,you must submit written request to the Depositary. In order to make a new election, you mustsubmit a new Tender Offer Instruction Form which may be obtained by calling Alliance Advisors LLC, the information agent, at (973) 873-7780 (CallCollect) or (888) 991-1293 (Call Toll-Free).
I hereby withdraw Number of Shares in my 401(k) account from the Offer.
IN EITHER CASE, YOUR INSTRUCTION MUST BE RECEIVED BY WELLS FARGO NO LATER THAN 5:00 P.M., NEW YORK CITY TIME,ON TUESDAY, FEBRUARY 28, 2017, OR YOUR SHARES WILL NOT BE TENDERED.
Printed Name
,2017Signature Date
QuickLinks
PLEASECOMPLETETHEREMAINDEROFTHEFORM
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(1)(G)
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely bythe Offer to Purchase, dated February 2, 2017, and the related Letter of Transmittal (as defined below), and any amendments or supplements thereto. Purchaser (asdefined below) is not aware of any state where the making of the Offer is prohibited by administrative or judicial action pursuant to any valid state statute. IfPurchaser becomes aware of any valid state statute prohibiting the making of the Offer, Purchaser will make a good faith effort to comply with such statute. If, aftersuch good faith effort, Purchaser cannot comply with such state statute, the Offer will not be made to, nor will tenders be accepted from or on behalf of, the holders ofShares in such state. Except as set forth above, the Offer is being made to all holders of Shares. In any jurisdiction where the securities, "blue sky" or other lawsrequire the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealersto be designated by Purchaser that are licensed under the laws of such jurisdiction.
Notice of Offer to Purchase for Cash All Outstanding Shares of Common Stock
of
Arctic Cat Inc. at
$18.50 Per Share by
Aces Acquisition Corp., Textron Specialized Vehicles Inc.
and
Textron Inc.AcesAcquisitionCorp.,aMinnesotacorporation("Purchaser")andadirectwhollyownedsubsidiaryofTextronSpecializedVehiclesInc.,aDelawarecorporation("TextronSpecializedVehicles"),whichisadirectwhollyownedsubsidiaryofTextronInc.,aDelawarecorporation("Textron"),isofferingtopurchasealloutstandingsharesofcommonstock,parvalue$0.01pershare(each,a"Share"andcollectively,the"Shares"),ofArcticCatInc.,aMinnesotacorporation("ArcticCat"),atapriceof$18.50perShare(the"OfferPrice"),payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw,uponthetermsandsubjecttotheconditionssetforthintheoffertopurchase,datedFebruary2,2017(asitmaybeamendedorsupplementedfromtimetotime,the"OffertoPurchase")andintherelatedletteroftransmittal(asitmaybeamendedorsupplementedfromtimetotime,the"LetterofTransmittal"and,togetherwiththeOffertoPurchase,the"Offer").TenderingshareholdersofArcticCatwhohaveSharesregisteredintheirnamesandwhotenderdirectlytoWellsFargoBank,N.A.,whichisactingasthedepositaryinconnectionwiththeOffer(the"Depositary"),willnotbechargedbrokeragefeesorcommissionsor,exceptasprovidedintheLetterofTransmittal,transfertaxesonthepurchaseofSharespursuanttotheOffer.ShareholderswhoholdtheirSharesthroughabroker,dealer,commercialbank,trustcompanyorothernomineeshouldconsultwithsuchinstitutionastowhetheritchargesanysuchfeesorcommissions.
Textronand/orPurchaserwillpayallchargesandexpensesoftheDepositaryandAllianceAdvisorsLLC,whichisactingasinformationagentfortheOffer(the"InformationAgent"),incurredinconnectionwiththeOffer.PurchaserisofferingtopurchasealltheSharesasafirststepinacquiringtheentireequityinterestinArcticCat.FollowingcompletionoftheOffer,PurchaserintendstoeffecttheMerger(asdefinedbelow).
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON MARCH 3, 2017, UNLESS THE OFFER ISEXTENDED.
ThereisnofinancingconditiontotheOffer.TheOfferisconditionedupon,amongotherthings,(1)thesatisfactionoftheMinimumCondition(asdescribedbelow)and(2)thenon-occurrenceofaCompanyMaterialAdverseEffect(asdefinedintheMergerAgreement(asdefinedbelow)).
Theterm"MinimumCondition"isdefinedintheOffertoPurchaseandgenerallyrequiresthatthenumberofSharesvalidlytenderedandnotproperlywithdrawnpriortotheexpirationoftheOfferwhich,togetherwiththenumberofShares(ifany)thenbeneficiallyownedbyTextronorPurchaser,intheaggregate,orwithrespecttowhichTextronorPurchaserotherwisehas,directlyorindirectly,solevotingpower,representsatleastoneSharemorethan50%oftheFullyDilutedShares(asdefinedbelow).PursuanttotheMergerAgreement,thesatisfactionoftheMinimumConditionwillbedeterminedwithouttreatingasvalidlytenderedSharestenderedviaguaranteeddeliveryproceduresunlesstheDepositaryhasreceivedallrequireditemsonaccountofsuchSharesinsettlementorsatisfactionofanysuchguaranteeatorpriortotheexpirationoftheOffer.TheOfferisalsosubjecttootherconditionssetforthintheOffertoPurchase.SeeSection15—"ConditionsoftheOffer"oftheOffertoPurchase.
"FullyDilutedShares"meansalloutstandingsecuritiesentitledtovoteintheelectionofdirectorsofArcticCatorontheadoptionoftheMergerAgreementandapprovaloftheMerger,togetherwithallsuchsecuritieswhichArcticCatwouldberequiredorpermittedtoissueassumingtheconversionorexchangeofanythen-outstandingwarrants,options,securitiesorinstrumentsconvertibleorexchangeableinto,orrightsexercisablefor,suchsecurities,whetherornotthenconvertible,exchangeableorexercisable.
ThepurposeoftheOfferistoacquirecontrolof,andtheentireequityinterestin,ArcticCat.Nodissenters'rightsareavailabletoholdersofSharesinconnectionwiththeOffer.
TheOfferisbeingmadepursuanttoanAgreementandPlanofMerger,datedasofJanuary24,2017(asitmaybeamended,restatedorsupplementedfromtimetotime,the"MergerAgreement"),amongTextron,PurchaserandArcticCat.TheMergerAgreementprovides,amongotherthings,that,followingthecompletionoftheOffer,uponthetermsandsubjecttotheconditionssetforthintheMergerAgreement,andinaccordancewiththeMinnesotaBusinessCorporationAct(the"MBCA"),PurchaserwillmergewithandintoArcticCat(the"Merger"),withArcticCatcontinuingasthesurvivingcorporationandanindirectwhollyownedsubsidiaryofTextron.
PursuanttotheMergerAgreement,attheeffectivetimeoftheMergereachoutstandingShare(otherthanSharesownedby(a)TextronorPurchaseroranyothersubsidiaryofTextronor(b)anyshareholderofArcticCatwhoisentitledtoandproperlydemandsandexercisesdissenters'rightswithrespecttosuchSharespursuantto,andcompliesinallrespectswith,theapplicableprovisionsofMinnesotalaw)willbeconvertedintotherighttoreceive$18.50,payablenettotheholderthereofincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.TextronhasagreedundertheMergerAgreementtoprovideorcausetobeprovidedtoPurchaserthefundsnecessarytopayforanySharesthatPurchaserbecomesobligatedtopurchasepursuanttotheOffer.TheMergerAgreementismorefullydescribedinSection12—"MergerAgreement;OtherAgreements"oftheOffertoPurchase.
On January 23, 2017, each of the Arctic Cat Board of Directors (the " ArcticCatBoard") and, as required by the MBCA, a committee of disinteresteddirectors of the Arctic Cat Board, among other things, (i) determined that the Merger Agreement and the transactions contemplated thereby are advisable,fair to and in the best interests of Arctic Cat and its shareholders, (ii) approved and adopted the Merger Agreement and the transactions contemplatedthereby, including the Offer and the Merger and (iii) recommended that Arctic Cat's shareholders accept the Offer and tender their Shares to Purchaser inthe Offer and, if required to consummate the Merger, such shareholders approve and adopt the Merger Agreement and the Merger. Accordingly, and forother reasons described in more detail in Arctic Cat's Tender Offer Solicitation/Recommendation Statement on Schedule 14D-9 that is
2
being filed with the United States Securities and Exchange Commission (the " SEC") and, together with the Offer to Purchase, the Letter of Transmittal andother related materials, mailed to the shareholders of Arctic Cat in connection with the Offer, the Arctic Cat Board unanimously recommends that ArcticCat's shareholders accept the Offer and tender their Shares to Purchaser pursuant to the Offer.
PursuanttotheMergerAgreement,ArcticCatgrantedtoPurchaseranirrevocableoption(the"TopUpOption"),exercisableonlyaftertheacceptanceforpaymentofSharesintheOffer,topurchase,atapricepershareequaltotheOfferPrice,additionalShares(the"TopUpOptionShares")equaltothelowestnumberofSharesthat,whenaddedtothenumberofSharesowned,directlyorindirectly,byTextronandPurchaser,willconstituteoneSharemorethan90%oftheFullyDilutedShares(aftergivingeffecttotheissuanceoftheTopUpOptionShares).TheTopUpOptionisnotexercisableunlessimmediatelyaftersuchexerciseandtheissuanceoftheTopUpOptionShares,TextronandPurchaserwould,directlyorindirectly,hold,intheaggregate,atleast90%oftheoutstandingShares.TheTopUpOptionisnotexercisableforanumberofSharesinexcessofArcticCat'stotalauthorizedandunissuedShares.TheaggregateparvalueoftheSharesissuedpursuanttotheTopUpOptionistobepaidincashandthebalanceoftheaggregatepriceistobepaidbyapromissorynoteofPurchaserorcash,oracombinationofcashandapromissorynote.Anysuchpromissorynote(i)willbearinterestattherateperannumequaltotheshort-termapplicablefederalrateonthedateofexecutionanddeliveryofsuchpromissorynote,payableinarrearsatmaturity,(ii)willmatureonthefirstanniversaryofthedateofexecutionanddeliveryofsuchpromissorynote,(iii)maybeprepaidwithoutpremiumorpenaltyand(iv)willhavenoothermaterialterms.ThepurposeoftheTopUpOptionistopermitPurchasertoconsummatetheMergerasa"short-form"mergerpursuanttoSection302A.621oftheMBCAandwithoutconveningameetingoftheshareholdersofArcticCat.FollowingtheOffer,ifTextronandPurchaser,directlyorindirectly,wouldnotown,intheaggregate,atleast90%oftheoutstandingShares,avoteoftheshareholdersofArcticCatisrequiredtoconsummatetheMerger.Insuchcase,theapprovaloftheMergeratameetingoftheshareholdersofArcticCatwouldbeassuredbecauseofPurchaser'sownershipofatleastoneSharemorethan50%oftheFullyDilutedSharesfollowingcompletionoftheOffer.
UponthetermsandsubjecttotheconditionsoftheMergerAgreement,intheeventthatTextronandPurchaseracquire,intheaggregate,atleast90%ofthethen-outstandingShares,thepartieshaveagreedtotakeallnecessaryandappropriateactiontocausetheMergertobecomeeffectiveaspromptlyaspracticablewithoutameetingoftheshareholdersofArcticCatinaccordancewithSection302A.621oftheMBCA.
ForpurposesoftheOffer,Purchaserwillbedeemedtohaveacceptedforpayment,andtherebypurchased,Sharesvalidlytenderedandnotproperlywithdrawnas,ifandwhenPurchasergivesoralorwrittennoticetotheDepositaryofPurchaser'sacceptanceforpaymentofsuchSharespursuanttotheOffer.UponthetermsandsubjecttotheconditionsoftheOffer,paymentforSharesacceptedforpaymentpursuanttotheOfferwillbemadebydepositoftheOfferPricewiththeDepositary,whichwillactasagentfortenderingshareholdersofArcticCatforthepurposeofreceivingpaymentsfromPurchaserandtransmittingsuchpayments,lessanyapplicablewithholdingtax,toshareholdersofArcticCatwhoseShareshavebeenacceptedforpayment.UndernocircumstanceswillPurchaserpayinterestontheOfferPrice,regardlessofanyextensionoftheOfferoranydelayinmakingsuchpayment.
Inallcases,PurchaserwillpayforSharestenderedandacceptedforpaymentpursuanttotheOfferonlyaftertimelyreceiptbytheDepositaryof(i)certificatesrepresentingsuchShares,ortimelyconfirmationofabook-entrytransferofsuchSharesintotheDepositary'saccountatTheDepositoryTrustCompanypursuanttotheproceduressetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase,(ii)aLetterofTransmittal(orafacsimilethereof),properlycompletedanddulyexecuted,withanyrequiredsignatureguaranteesoranAgent'sMessage
3
(asdefinedinSection2—"AcceptanceforPaymentandPaymentforShares"oftheOffertoPurchase)inconnectionwithbook-entrytransfer,and(iii)anyotherdocumentsrequiredbytheLetterofTransmittal.
TheMergerAgreementprovidesthatPurchasermay,initssolediscretion,extendtheOfferforoneormoreperiodsofuptotwenty(20)businessdayseachif,atthethenscheduledexpirationdateoftheOffer,anyoftheconditionstotheOffersetforthintheMergerAgreementanddescribedinSection15—"ConditionsoftheOffer"oftheOffertoPurchasehavenotbeensatisfiedor,totheextentpermittedbyapplicablelaw,waivedbyTextronorPurchaser.TheMergerAgreementalsoprovidesthatPurchaserwillextendtheexpirationdateoftheOfferforanyperiodorperiodsrequiredbyapplicablelaworanyapplicablerule,regulation,interpretationorpositionoftheSECoritsstaff.InnoeventwillPurchaserberequiredtoextendtheOfferforanyreasonbeyondtheearliertooccurof(a)thedatetheMergerAgreementisterminatedor(b)May24,2017.SeeSection1—"TermsoftheOffer"oftheOffertoPurchaseforadditionalinformationaboutPurchaser'sobligationstoextendtheOffer.
If,attheexpirationoftheOffer,alloftheconditionstotheOfferhavebeensatisfiedor,totheextentpermittedbyapplicablelaw,waived,PurchaserwillacceptforpaymentandpromptlypayforSharestenderedandnotproperlywithdrawnintheOffer.FollowingPurchaser'sacceptanceandpaymentforSharestenderedintheOffer,Purchaserwill,ifrequired,inordertoenableTextronandPurchasertoacquire,intheaggregate,atleast90%oftheSharesthenoutstanding,provideforone"subsequentofferingperiod"(asprovidedinRule14d-11undertheSecuritiesExchangeActof1934,asamended(the"ExchangeAct"))ofnotlessthanthree(3)normorethantwenty(20)businessdays(the"SubsequentOfferingPeriod")asdeterminedinthesolediscretionofTextronandPurchaser.DuringtheSubsequentOfferingPeriod,shareholdersofArcticCatmaytender,butnotwithdraw,theirSharesandreceivetheOfferPrice,andallSharesthatarevalidlytenderedpursuanttotheOfferwillbeimmediatelyacceptedforpaymentbyPurchaserandPurchaserwillimmediatelypayforsuchSharesattheOfferPrice.
SharestenderedpursuanttotheOffermaybewithdrawnatanytimepriortoMarch3,2017,theinitialexpirationoftheOffer(includinganyextensionsthereofbutexcludingthependencyoftheSubsequentOfferingPeriod).IfnotacceptedforpaymentasprovidedintheOffertoPurchaseonorpriortoApril27,2017,SharesmayalsobewithdrawnatanytimeafterApril27,2017.
ForawithdrawalofSharestobeeffective,awrittentransmissionnoticeofwithdrawalmustbetimelyreceivedbytheDepositaryatoneofitsaddressessetforthonthebackcoveroftheOffertoPurchase.AnysuchnoticeofwithdrawalmustspecifythenameofthepersonwhotenderedtheSharestobewithdrawn,thenumberofSharestobewithdrawnandthenameoftheregisteredholder,ifdifferentfromthatofthepersonwhotenderedsuchShares.IfcertificatesfortheSharestobewithdrawnhavebeendeliveredorotherwiseidentifiedtotheDepositary,then,priortothephysicalreleaseofthecertificates,theserialnumbersshownonsuchcertificatesmustbesubmittedtotheDepositaryandthesignaturesonthenoticeofwithdrawalmustbeguaranteedbyanEligibleInstitution(asdefinedintheOffertoPurchase)unlesssuchShareshavebeentenderedfortheaccountofanEligibleInstitution.IfShareshavebeentenderedpursuanttotheprocedureforbook-entrytransferassetforthinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase,anynoticeofwithdrawalmustspecifythenameandnumberoftheaccountatTheDepositoryTrustCompanytobecreditedwiththewithdrawnShares.Allquestionsastoformandvalidity(includingtimeofreceipt)ofanynoticeofwithdrawalwillbedeterminedbyPurchaser,initssolediscretion.NoneofTextron,Purchaseroranyoftheirrespectiveaffiliatesorassigns,theDepositary,theInformationAgentoranyotherpersonorentitywillbeunderanydutytogiveanynotificationofanydefectsorirregularitiesinanynoticeofwithdrawalorincuranyliabilityforfailuretogiveanysuchnotification.WithdrawalsofSharesmaynotberescinded.AnySharesproperlywithdrawnwillbeconsiderednottohavebeenvalidlytenderedforpurposesoftheOffer.However,
4
withdrawnSharesmaybere-tenderedatanytimepriortotheexpirationoftheOfferorduringtheSubsequentOfferingPeriodbyfollowingoneoftheproceduresdescribedinSection3—"ProceduresforAcceptingtheOfferandTenderingShares"oftheOffertoPurchase.
TheinformationrequiredtobedisclosedbyRule14d-6(d)(1)undertheExchangeActiscontainedintheOffertoPurchaseandisincorporatedhereinbyreference.
ArcticCathasprovidedTextronandPurchaserwiththeshareholderlistofArcticCatandsecuritypositionlistingforthepurposeofdisseminatingtheOffertoholdersofShares.TheOffertoPurchaseandtherelatedLetterofTransmittalandotherrelevantmaterialswillbemailedbyPurchasertorecordholdersofSharesandfurnishedtobrokers,dealers,commercialbanks,trustcompaniesandothernomineeswhosenamesappearontheshareholderlistor,ifapplicable,whoarelistedasparticipantsinaclearingagency'ssecuritypositionlisting,forforwardingtobeneficialownersofShares.
ThereceiptofcashforSharesintheOfferortheMergerwillbeataxabletransactionforUnitedStatesfederalincometaxpurposesandmayalsobeataxabletransactionunderapplicablestate,localorforeigntaxlaws.ShareholdersshouldconsultwiththeirtaxadvisorsastotheparticulartaxconsequencesoftheOfferandtheMergertothem,includingtheapplicabilityandeffectofthealternativeminimumtaxandanystate,localorforeignincomeandothertaxlawsandofchangesinsuchtaxlaws.ForamorecompletedescriptionofmaterialUnitedStatesfederalincometaxconsequencesoftheOfferandtheMerger,seeSection5—"MaterialUnitedStatesFederalIncomeTaxConsequences"oftheOffertoPurchase.
The Offer to Purchase and the related Letter of Transmittal contain important information which should be read carefully before any decision is madewith respect to the Offer.
AnyquestionsandrequestsforassistancemaybedirectedtotheInformationAgentatitsaddressandtelephonenumberassetforthbelow.RequestsforcopiesoftheOffertoPurchaseandtherelatedLetterofTransmittalandallothertenderoffermaterialsmaybedirectedtotheInformationAgent,andcopieswillbefurnishedpromptlyatTextron'sexpense.Shareholdersmayalsocontacttheirbanks,brokers,commercialbanksortrustcompaniesforassistanceconcerningtheOffer.TextronandPurchaserwillnotpayanyfeesorcommissionstoanybroker,dealer,commercialbank,trustcompanyorothernominee(otherthantheInformationAgent)forsolicitingtendersofSharespursuanttotheOffer.
The Information Agent for the Offer is:
AllianceAdvisorsLLC
200BroadacresDrive,3rdFloorBloomfield,NJ07003
Call Collect :(973)873-7780or
Call Toll-Free :(888)991-1293Email :[email protected]
February2,2017
5
QuickLinks
TheInformationAgentfortheOfferis
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (a)(5)(B)
Media Contact: DavidSylvestre—401-457-2362
Textron Inc. Commences Tender Offer for Acquisition of Arctic Cat Inc.
Providence,RI,February2,2017:TextronInc.(NYSE:TXT)announcedtodayithascommencedatenderofferforalloftheissuedandoutstandingsharesofcommonstock(the"Shares ")ofArcticCatInc.(NASDAQ:ACAT)for$18.50pershare,payablenettotheholderincash,withoutinterest,subjecttoanywithholdingoftaxesrequiredbyapplicablelaw.
ThetenderofferisbeingmadepursuanttoanOffertoPurchase,datedFebruary2,2017,andinconnectionwiththepreviouslyannouncedAgreementandPlanofMerger,datedJanuary24,2017,amongTextron,Textron'sacquisitionsubsidiaryandArcticCat(the"Merger Agreement ").
ThetenderofferwillexpireonMarch3,2017,at5:00p.m.,NewYorkCitytime,unlessextendedinaccordancewiththeMergerAgreementandtheapplicablerulesandregulationsoftheSecuritiesandExchangeCommission(the"SEC ").Anyextensionofthetenderofferwillbefollowedaspromptlyaspracticablebypublicannouncementthereof,andsuchannouncementwillbemadenolaterthan9:00a.m.,NewYorkCitytime,onthenextbusinessdayafterthepreviouslyscheduledexpirationdate.
Thetenderofferissubjecttocustomaryconditions,includingthetenderofatleastonesharemorethan50%oftheoutstandingShares(calculatedonafully-dilutedbasis).ArcticCat'sboardofdirectorshasapprovedthetransactionandunanimouslyrecommendedthatitsshareholderstendertheirSharespursuanttothetenderoffer.
Today,atenderofferstatementonScheduleTOwasfiledbyTextronwiththeSEC,whichsetsforthindetailthetermsofthetenderoffer.ArcticCatfiledtodaywiththeSECaSolicitation/RecommendationStatementonSchedule14D-9settingforthindetail,amongotherthings,therecommendationofArcticCat'sboardofdirectorsthatArcticCatshareholdersacceptthetenderofferandtendertheirSharespursuanttothetenderoffer.
TheDepositaryandPayingAgentforthetenderofferisWellsFargoBank,N.A.TheInformationAgentforthetenderofferisAllianceAdvisors,LLC.ThetenderoffermaterialsmaybeobtainedatnochargebydownloadingthemfromtheSEC'swebsiteathttp://www.sec.gov.TheScheduleTOTenderOfferStatementandrelatedmaterialsmaybeobtainedforfreebydirectingsuchrequeststoTextronInc.,Attention:InvestorRelationsat(401)457-2288.TheSchedule14D-9Solicitation/RecommendationStatementandsuchotherdocumentsmaybeobtainedforfreefromArcticCatunderthe"InvestorRelations"sectionofArcticCat'swebsiteathttp://phx.corporate-ir.net/phoenix.zhtml?c=97941&p=irol-irhome.
About Textron Inc.
TextronInc.isamulti-industrycompanythatleveragesitsglobalnetworkofaircraft,defense,industrialandfinancebusinessestoprovidecustomerswithinnovativesolutionsandservices.TextronisknownaroundtheworldforitspowerfulbrandssuchasBellHelicopter,Cessna,Beechcraft,Hawker,Jacobsen,Kautex,Lycoming,E-Z-GO,Greenlee,TextronOffRoad,TextronSystems,andTRUSimulation+Training.Formoreinformationvisit:www.textron.com.
Certainstatementsinthispressreleasemaydescribestrategies,goals,outlookorothernon-historicalmatters;theseforward-lookingstatementsspeakonlyasofthedateonwhichtheyaremade,andweundertakenoobligationtoupdatethem.Thesestatementsaresubjecttoknownandunknownrisks,uncertainties,andotherfactorsthatmaycauseouractualresultstodiffermateriallyfromthoseexpressedorimpliedbysuchforward-lookingstatements.
Investor Contacts: EricSalander—401-457-2288D'AnteNatili—401-457-2288
FOR IMMEDIATE RELEASE
Contacts
Investor related questions, via the Information Agent for the tender offer:
Legal Notices and Disclaimers
Thispressreleaseisforinformationalpurposesonly.ItdoesnotconstituteanoffertopurchaseSharesorasolicitation/recommendationundertherulesandregulationsoftheSEC.Purchaser,TextronSpecializedVehiclesInc.andTextronfiledaTenderOfferStatementonScheduleTOwiththeSECandArcticCatfiledaSolicitation/RecommendationStatementonSchedule14D-9withtheSEC,ineachcasewithrespecttotheoffer.TheTenderOfferStatement(includinganoffertopurchase,arelatedletteroftransmittalandotherofferdocuments)andtheSolicitation/RecommendationStatementcontainimportantinformationthatshouldbereadcarefullybeforeanydecisionismadewithrespecttothetenderoffer.ThosematerialsandallotherdocumentsfiledbyTextronorPurchaserwiththeSECwillbeavailableatnochargeontheSEC'swebsiteatwww.sec.gov.
2
AllianceAdvisors,LLC (973)873-7780(CallCollect)or(888)991-1293(CallToll-Free)Email:[email protected]
QuickLinks
EXHIBIT(a)(5)(B)
TextronInc.CommencesTenderOfferforAcquisitionofArcticCatInc.
QuickLinks--Clickheretorapidlynavigatethroughthisdocument
EXHIBIT (d)(2)
CONFIDENTIALITY AGREEMENT
ThisConfidentialityAgreement(this"Agreement "),effectiveasofOctober6,2016(the"Effective Date "),isbyandbetweenArcticCatInc.,aMinnesotacorporation("Arctic Cat "),andTextronInc.,aDelawarecorporationwithitsheadquarterslocatedinProvidence,RhodeIsland("Recipient ").
WHEREAS,inconnectionwithRecipient'sevaluationofapotentialstrategictransactiontobenegotiatedbetweenArcticCatandRecipient(a"Transaction "),RecipientdesirestoreceivecertaininformationfromArcticCatthatisnon-public,confidential,orproprietaryinnature;and
WHEREAS,ArcticCatdesirestodisclosetoRecipientnon-public,confidential,orproprietaryinformationregardingArcticCat,subjecttothetermsandconditionsofthisAgreement.
NOW,THEREFORE,inconsiderationofthemutualcovenants,termsandconditionssetforthherein,ArcticCatandRecipientagreeasfollows:
1. ArcticCatandRecipientagreethat,asusedinthisAgreement,"Confidential Information "shallrefertoallinformationthatisnotgenerallyknowntothepublic,orthatisconfidentialorproprietary,andisdisclosedbefore,onoraftertheEffectiveDatebyArcticCattoRecipientoritsaffiliates,ortoanyemployees,officers,directors,partners,shareholders,agents,attorneys,accountantsoradvisors(collectively,"Representatives ")ofRecipientoritsaffiliates,whetherdisclosedorallyordisclosedoraccessedinwritten,electronicorotherformormedia,andwhetherornotmarked,designatedorotherwiseidentifiedas"confidential,"including,withoutlimitation:
a) allinformationconcerningArcticCat'sanditsaffiliates',andtheirdealers',customers',suppliers',commercialpartners'andotherthirdparties',past,presentandfuturebusinessaffairsincluding,withoutlimitation,informationregardingproductsandproductplansanddesigns,services,supplierinformation,subcontractorinformation,consultantinformation,organizationalstructureandinternalpractices,forecasts,salesandotherfinancialinformationandresults,recordsandbudgets,bankingandinvestmentinformation,capitalinvestments,currentandpotentialstrategicinitiatives,partnershipsandrelationships,pricingorpurchasinginformation,andbusiness,marketing,development,financial,salesandothercommercialstrategies,plansorproposals,initiatives,techniques,programs,andmethodsofoperation;
b) informationrelatingtoproprietaryrightsanddata,ideas,know-how,tradesecrets,inventions,licenses,techniques,improvements,design,designconceptsanddocumentation,drawings,schematics,algorithms,sourcecode,objectcode,research,development,technology,processes,programdocumentation,productdevelopment,electronicdata,softwareowned,licensedordevelopedbyArcticCatoritsaffiliates,formulae,technicalinformation,licenses,pendingpatentablematerialsand/ordesigns,testsand/orteststandardsormanuals;
c) informationrelatingtoemployeesandemployeecompensationandbenefits;
d) anythird-partyconfidentialinformationincludedwith,orincorporatedin,anyinformationprovidedbyArcticCattoRecipientoritsRepresentatives;
e) anyotherinformationthatwouldreasonablybeconsiderednon-public,confidentialorproprietarygiventhenatureoftheinformationandthebusinessesofArcticCatandRecipient;and
f) allnotes,analyses,compilations,reports,forecasts,studies,samples,data,statistics,summaries,interpretationsandothermaterials(collectively,"Notes ")preparedbyorfor
1
RecipientoritsRepresentativesthatcontain,arebasedon,orotherwisereflectorarederivedfrom,inwholeorinpart,anyoftheforegoing.
2. Exceptasrequiredbyapplicablefederal,stateorlocallaworregulation,theterm"Confidential Information "asusedinthisAgreementshallnotincludeinformationthat:
a) atthetimeofdisclosureis,orthereafterbecomes,generallyavailabletoandknownbythepublicotherthanasaresultof,directlyorindirectly,anyactoromissionbyRecipientoranyofitsRepresentatives;
b) atthetimeofdisclosureis,orthereafterbecomes,availabletoRecipientonanon-confidentialbasisfromathird-partysource,providedthatsuchthirdpartyisnotandwasnotprohibitedfromdisclosingsuchConfidentialInformationtoRecipientbyanylegal,fiduciaryorcontractualobligation;
c) wasknownbyorinthepossessionofRecipient,asestablishedbydocumentaryevidence,priortobeingdisclosedbyoronbehalfofArcticCatpursuanttothisAgreement;or
d) wasorisindependentlydevelopedbyRecipient,asestablishedbydocumentaryevidence,withoutreferencetooruseof,inwholeorinpart,anyofArcticCat'sConfidentialInformation.
3. RecipientagreesthattheConfidentialInformationshallbeusedonlytoevaluateaTransactionandshallnotbeusedforanyotherpurposeordisclosedtoanythirdpartyexceptasprovidedherein.Recipientagreesnottotakeanyactionthatwould,directlyorindirectly,causealaw,regulationorcourtordertorequiredisclosureofanyConfidentialInformation.Notwithstandingtheforegoing,intheeventthatRecipientisrequiredbylaworregulation,oravalidorderissuedbyacourtorgovernmentalagencyofcompetentjurisdiction,todiscloseanyConfidentialInformation,Recipientwill:(i)provideArcticCatwithpromptnoticeofsuchrequirementpriortothedisclosure;(ii)refrainfromtakinganactionifRecipient,bysorefraining,wouldnotberequiredtodisclosesuchConfidentialInformation;(iii)giveArcticCatallavailableinformation,reasonableassistanceandnecessaryauthoritytoenableArcticCattotakethemeasuresthatArcticCat,initssolediscretion,maydeemappropriateornecessarytoprotecttheConfidentialInformationfromdisclosure;and(iv)if,afterprovidingsuchnoticetoArcticCatsuchthatArcticCathashadanopportunitytoseekprotectionoranotherremedy,RecipientremainssubjecttotherequirementtodisclosetheConfidentialInformation,limitwhatisdisclosedtothemaximumextentpossibleunderlaworregulationandusecommerciallyreasonableeffortstoobtainassurancesfromtheapplicablecourtoragencythatsuchConfidentialInformationwillbeaffordedconfidentialtreatment.
4. Recipientagreesthatitwillcomply,andwillrequireitsRepresentativestocomply,withallapplicablefederal,stateandlocaldataprotectionlawsandregulationsinthemaintenance,disclosureanduseofallPersonalInformationcontainedinanyConfidentialInformationthatisdisclosedtotheRecipientoritsRepresentativeshereunder.ForpurposesofthisAgreement,"Personal Information "meansinformationthatrelatestoanindividualpersonandidentifiesorcanbeusedtoidentify,locateorcontactthatindividualaloneorwhencombinedwithotherpersonaloridentifyinginformationthatisorcanbeassociatedwiththatspecificindividual.
5. RecipientacknowledgesthatitconductsbusinessinsimilarandadjacentbusinessspacesasArcticCat,andforthatreasonagreestoholdallConfidentialInformationinabsolutetrustandconfidence,andtoprotectandsafeguardagainsttheunnecessarydisseminationofConfidentialInformationbothinsideandoutsidetheRecipient'sbusinesses.RecipientwillnotdiscloseorrenderaccessibleConfidentialInformationtoRecipient'saffiliatesunlessanduntilconsentedtoinwritingbyArcticCat.Recipientshallfurthertakeallstepsnecessaryand
2
sufficienttoensurethatConfidentialInformationisnotrenderedaccessibletoindividualRepresentativesthatarenotdirectlyinvolvedinevaluatingtheTransaction.RecipientwillfurtherensurethatallindividualswhoaregivenaccesstoConfidentialInformationwillbespecificallyidentifiedtoArcticCatinwritinginadvanceofbeingprovidedaccesstoConfidentialInformation.Uponwrittennotification,ArcticCatshallhavetwobusinessdaystoobjecttoanyindividualRecipientbeingprovidedaccesstoConfidentialInformation,unlessearlierwaivedinwritingbyArcticCat.InadvanceofbeingprovidedaccesstoConfidentialInformation,eachindividualRecipientwill(i)beprovidedacopyofthisAgreementand(ii)executeanacknowledgementintheformprovidedinAddendumAstatingtheyagreetobeboundbyandwillconducttheirinvestigationinaccordancewiththisAgreementandagreetocomplywithallapplicableon-siteaccess,remoteaccessandrelatedsecurityrulesandproceduresofArcticCat.RecipientwillberesponsibleforanybreachofthisAgreementbyallthosewhogainaccesstoConfidentialInformationviaRecipientoritsRepresentatives.
6. Exceptasrequiredbyapplicablefederal,stateorlocallaworregulation,orasotherwiseconsentedtoinwritingbyArcticCat,theRecipientshallnot,andshallnotpermititsRepresentativestodisclosetoanypersonthat:(i)theConfidentialInformationhasbeenmadeavailabletoRecipientoritsRepresentatives;(ii)thatdiscussionsornegotiationsmaybe,orare,underwaybetweentheRecipientandArcticCatregardingtheConfidentialInformationoraTransaction,includingthestatusthereof;or(iii)anyterms,conditionsorotherarrangementsthatarebeingdiscussedornegotiatedinrelationtotheConfidentialInformationoraTransaction.
7. RecipientacknowledgesthatnoneofArcticCatoritsRepresentativesmakesanyexpressorimpliedrepresentationorwarrantyastothecompletenessandaccuracyofanyConfidentialInformation,andRecipientagreesthatnosuchpersonsshallhaveanyliabilitytoRecipientoranyofRecipient'sRepresentativesrelatingtoorarisingfromRecipient'sorsuchRepresentatives'useofanyConfidentialInformationorforanyerrorsthereinoromissionstherefrom.RecipientalsoagreesthatRecipientisnotentitledtorelyonthecompletenessoraccuracyofanyConfidentialInformationandthatRecipientshallbeentitledtorelysolelyonsuchrepresentationsandwarrantiesasmaybemadebyArcticCattoRecipientinanydefinitiveagreementrelatingtoaTransaction,subjecttothetermsandconditionsofsuchagreement.ForpurposesofthisAgreement,a"definitive agreement "doesnotincludeanexecutedletterofintentoranyotherpreliminarywrittenagreement,nordoesitincludeanywrittenororalacceptanceofanofferorbid.
8. ArcticCatherebyretainsitsentireright,titleandinterest,includingallintellectualpropertyrights,inandtoallConfidentialInformation.AnydisclosureofsuchConfidentialInformationhereundershallnotbeconstruedasanassignment,grant,option,licenseorothertransferofanysuchright,titleorinterest.
9. UponexpirationorterminationofthisAgreement,anduponwrittendemandbyArcticCatatanytime,allConfidentialInformation,includingcopies,Notes,photographs,andmemoranda,producedortakenbyRecipientinconnectionwithevaluatingaTransaction,whetherinhardcopyorelectronicformat,shallbedestroyedorreturnedtoArcticCat,unlessotherwiseauthorizedinwritingbyArcticCat;provided,however,thatonecopymayberetainedforlegalfilesforcomplianceandregulatorypurposesandelectronicarchivesandbackupsmadeintheordinarycourseofbusinessneednotbepurged,solongastheyaremaintainedinaccordancewiththeconfidentialityprovisionsofthisAgreement.Uponwrittenrequest,destructionofmaterialscontainingConfidentialInformationshallbecertifiedbyanofficerofRecipient.
3
10. NofailureordelaybyArcticCatinexercisinganyright,powerorprivilegehereundershalloperateasawaiverhereof,norshallanysingleorpartialexercisethereofprecludeanyotherorfurtherexercisethereofortheexerciseofanyright,powerorprivilegehereunder.RecipientagreesthatmoneydamageswouldnotbeasufficientremedyforanybreachofthisAgreementbyRecipientoritsRepresentatives,andthatinadditiontoallotherremediesArcticCatshallbeentitledtoseekspecificperformanceandinjunctiveorotherequitablereliefasaremedyforanysuchbreach.Recipientfurtheragreestowaive,andtouseitsreasonablebesteffortstocauseitsRepresentativestowaive,anyrequirementforthesecuringorpostingofanybondinconnectionwithsuchremedy.
11. RecipientagreestopromptlynotifyArcticCatofanyunauthorizeddisclosureofConfidentialInformationorotherbreachesofthisAgreementbyRecipientoritsRepresentativesofwhichRecipientoritsRepresentativeshaveknowledgeandtofullycooperatewithArcticCatinanyeffortundertakenbyArcticCattoenforceitsrightsrelatedtosuchunauthorizeddisclosure.
12. NopartytothisAgreementshallbeunderanyobligationtoenterintoanyfurtheragreementswiththeotherpartyoritsRepresentativesasaresultofthisAgreement.ArcticCatanditsRepresentativesshallbefreeatalltimestoconducttheirbusiness,operationsandaffairsintheirsolediscretionandtoenterintoanyagreementswithanyotherparty,includingwiththerespecttoaTransaction.AnysuchactivitiesbyArcticCatoritsRepresentativesshallnotbeabreachofthisAgreement.
13. WithoutthewrittenconsentofArcticCat,RecipientanditsRepresentativesshallnot,duringthetermofthisAgreementandforaperiodofeighteenmonthsfromexpirationorterminationofthisAgreement,solicitforemploymentanypersonswhoareemployeesofArcticCatoranyofitsaffiliatesasofthedateofthisAgreementoratthetimethisAgreementexpiresoristerminated.Nothingcontainedhereinshallprecludethehiringofanysuchemployeewho:(i)RecipientwasindiscussionswithregardingpossibleemploymentpriortothesigningofthisAgreement;(ii)respondstoageneralsolicitationofemploymentthroughanadvertisementnottargetedspecificallyatArcticCatoritsemployees;or(iii)isreferredtoRecipientbysearchfirms,employmentagencies,orothersimilarentities,providedthatsuchentitieshavenotbeenspecificallyinstructedbyRecipienttosolicittheemployeesofArcticCat.
14. InconsiderationoftheConfidentialInformationbeingfurnishedtoRecipient,Recipientherebyagreesthat,duringthetermofthisAgreementandforaperiodofeighteenmonthsfollowingtheexpirationorterminationofthisAgreement(the"Standstill Period "),neitherRecipientnorRecipient'sdirectors,officers,employeesorsubsidiaries,norany"group"(withinthemeaningofSection13(d)(3)oftheSecuritiesExchangeActof1934,asamended(the"Exchange Act "))ofwhichRecipientoranyofitsdirectors,officers,employeesorsubsidiariesisaparty,willassistorencourageothers(includingbyprovidingfinancing)to,directlyorindirectly,withoutthepriorwrittenconsentorrequestoftheBoardofDirectorsofArcticCatoranauthorizedSpecialCommitteeofsuchBoard,(i)acquire,agreetoacquire,propose,seekoroffertoacquire,orfacilitatetheacquisitionorownershipof,anysecuritiesorassetsofArcticCatoranyofitssubsidiaries,anywarrantoroptiontopurchasesuchsecuritiesorassets,anysecurityconvertibleintoanysuchsecurities,oranyotherrighttoacquiresuchsecuritiesorassets(otherthanpurchasesofproductsintheordinarycourseofbusiness),(ii)enter,agreetoenter,propose,seekoroffertoenterintoorfacilitateanymerger,materialassetpurchase,businesscombination,recapitalization,restructuringorotherextraordinarytransactioninvolvingArcticCatorengageinorparticipateinanywayinanytransactionregardingcontrolofArcticCat,(iii)make,orinanywayparticipateorengagein,anysolicitationofproxiestovoteorseektoadviseorinfluenceanypersonwithrespecttothevotingof,anyvotingsecuritiesofArcticCat,inoppositiontotheslateofdirectorsnominated
4
byArcticCatoranyotheritemofbusinessrecommendedbyArcticCat'sBoardofDirectorstobevotedonatanymeetingofArcticCat'sshareholders,(iv)form,joinorinanywayparticipateina"group"(withinthemeaningofSection13(d)(3)oftheExchangeAct)withrespecttoanyvotingsecuritiesofArcticCat,(v)call,requestthecallingof,orotherwiseseekorassistinthecallingofaspecialmeetingoftheshareholdersofArcticCat,(vi)nominateacompetingslateofdirectorsatanymeetingoftheCompany'sshareholders,(vii)otherwiseact,aloneorinconcertwithothers,toseektocontrolorinfluencethemanagementorpoliciesofArcticCat,(viii)discloseanyintention,planorarrangementprohibitedby,orinconsistentwith,theforegoing,or(ix)advise,assistorencourageorenterintoanydiscussions,negotiations,agreementsorarrangementswithanyotherpersonsinconnectionwiththeforegoing.
RecipientfurtheragreesthatduringtheStandstillPeriod,neitheritnoranyofitsRepresentativeswill,directlyorindirectly,withoutthepriorwrittenconsentoftheBoardofDirectorsofArcticCatoranauthorizedSpecialCommitteeofsuchBoard,(x)makeanyrequestdirectlyorindirectly,toamendorwaiveanyprovisionofthisSection14(includingthissentence),or(y)takeanyactionnotrequestedbyArcticCatthatmightrequireArcticCattomakeapublicannouncementregardingthepossibilityofabusinesscombination,mergerorothertypeoftransactiondescribedinthisparagraph.Notwithstandingtheforegoing,theprecedingrestrictionsofthissectionshallterminateintheeventthatanotherpersonor"group"(withinthemeaningofSection13(d)(3)oftheExchangeAct)(a)shallhaveenteredintoadefinitiveagreementwithArcticCattoacquireacontrollinginterestinArcticCatorallorsubstantiallyallofitsassetsor(b)haslaunchedorpubliclystateditsintentiontolaunchatenderorexchangeofferforamajorityofArcticCat'scapitalstockandArcticCatfilesaSchedule14D-9withrespecttosuchofferthatrecommendsacceptanceofsuchtenderorexchangeoffer.
15. Recipientherebyacknowledgesthatitisaware,andthatitwilladviseitsRepresentativeswhoreceiveanyConfidentialInformation,thattheUnitedStatessecuritieslawsprohibitanypersonwhohasreceivedfromanissuermaterial,nonpublicinformationfrompurchasingorsellingsecuritiesofsuchissuer(andoptions,warrantsandrightsrelatingthereto)orfromcommunicatingsuchinformationtoanyotherpersonundercircumstancesinwhichitisreasonablyforeseeablethatsuchpersonislikelytopurchaseorsellsuchsecurities.
16. Recipientagreestodefend,indemnifyandholdharmlessArcticCat,itsaffiliatesandtheirrespectiveRepresentatives,successorsandpermittedassignsfromandagainstalllosses,damages,liabilities,deficiencies,actions,judgments,interest,awards,penalties,fines,costsorexpensesofwhateverkind,includingreasonableattorneys'fees,inconnectionwithanythirdpartyclaim,suit,actionorproceedingarisingoutoforresultingfromamaterialbreachofthisAgreementbyRecipientoranyofitsRepresentatives.
17. ThisAgreementshallbegovernedbythelawsoftheStateofMinnesota.ArcticCatreservestherighttoassignallofitsrightsunderthisAgreementtoanyofitsaffiliatesortoasuccessorininteresttothebusinessofArcticCat,includingtherighttoenforcethisAgreement.Recipientherebyconsentstoanysuchassignment.RecipientshallnotassignanyofitsrightsordelegateanyofitsobligationshereunderwithoutArcticCat'spriorwrittenconsent.AnypurportedassignmentordelegationbyRecipientshallbenullandvoid.
18. ThetermofthisAgreementshallcommenceontheEffectiveDateandshallexpireoneyearfromtheEffectiveDate,providedthateitherPartymayterminatethisAgreementatanytimebyprovidingwrittennoticetotheotherParty.Inaddition,RecipientagreestopromptlyinformArcticCatifRecipientdeterminesnottoproceedwithaTransaction.Notwithstandinganythingtothecontraryherein,eachParty'srightsandobligationsunderthisAgreementshall
5
survivetheexpirationorterminationofthisAgreementforaperiodofthreeyearsfromthedateofsuchexpirationortermination,evenafterthereturnordestructionofConfidentialInformationbyRecipient(the"Survival Period "),providedtheprovisionsofSections13and14ofthisAgreementshallexpireasprovidedinsuchSections,andprovidedfurtherthat,withrespecttothetradesecretsofArcticCat,theSurvivalPeriodshalllastforaslongassuchConfidentialInformationqualifiesasatradesecretunderapplicablefederal,stateorlocallaw,andwithrespecttoPersonalInformationdisclosedbyArcticCat,theSurvivalPeriodshalllastfortheperiodoftimerequiredunderapplicablefederalstateand/orlocallaw.
19. Allnotices,requests,consents,claims,demands,waiversandothercommunicationshereundershallbeinwritingandshallbedeemedtohavebeengiven:(i)whendeliveredandreceivedbyhand;(ii)whenreceivedbytheaddresseeifsentbyanationallyrecognizedovernightcourier(receiptrequested);(iii)onthedatesentbyfacsimileorelectronictransmissionifsentduringnormalbusinesshoursoftherecipientofthecommunication;or(d)onthethirdcalendardayafterthedatemailed,bycertifiedorregisteredmail,returnreceiptrequested,postageprepaid.Suchcommunicationsmustbesenttotherespectivepartiesattheaddressessetforthonthesignaturepagehereto(orsuchotheraddressesasdesignatedfromtimetotimeinaccordancewiththissection).
20. ThisAgreementcontainstheentireagreementbetweenArcticCatandRecipientconcerningthesubjectmatterhereof,andnoprovisionofthisAgreementmaybewaived,amendedormodified,inwholeorinpart,noranyconsentgiven,unlessapprovedinwritingbyadulyauthorizedRepresentativeofeachofArcticCatandRecipient,whichwritingspecificallyreferstothisAgreementandtheprovisionsoamendedormodifiedorforwhichsuchwaiverorconsentisgiven.IntheeventthatanyprovisionofthisAgreementisdeemedinvalid,illegalorunenforceable,thevalidity,legalityandenforceabilityoftheremainingprovisionsofthisAgreementwillnotinanywaybeaffectedorimpairedthereby.
21. IfanytermorprovisionofthisAgreementisinvalid,illegalorunenforceableinanyjurisdiction,suchinvalidity,illegalityorunenforceabilityshallnotaffectanyothertermorprovisionofthisAgreementorinvalidateorrenderunenforceablesuchtermorprovisioninanyotherjurisdiction.
22. ThisAgreementmaybeexecutedinoneormorecounterparts(includingbymeansoffacsimileorelectronicallytransmittedportabledocumentformat(PDF)signaturepages),eachofwhichshallbedeemedtobeanoriginal,butallofwhichtogethershallconstituteandbeoneandthesameinstrument.
UponexecutionhereofbybothArcticCatandRecipient,thisAgreementshallbecomeabindingagreementbetweenArcticCatandRecipient.
[ SignaturePageFollows]
6
INWITNESSWHEREOF,thepartieshaveexecutedthisAgreementtobeeffectiveasoftheEffectiveDate.
[Signature Page to Confidentiality Agreement]
ARCTICCATINC. TEXTRONINC.
By: /s/CHRISTOPHERT.METZ By: /s/SCOTTHEGSTROM
Name:ChristopherT.Metz Name:ScottHegstrom
Title:President and Chief Executive Officer Title:Vice President, Mergers & Acquisitions
Address:500North3dStreet,Minneapolis,MN55401
Address:40WestminsterStreet,Providence,RI02903
Telephone:612-305-1802 Telephone:401-457-2386
Fax: Fax: 401-457-3611
QuickLinks
EXHIBIT(d)(2)
CONFIDENTIALITYAGREEMENT