AFFILIATED COMPUTER SERVICES INC - FORM 8-K - EX-99.2 - STIPULATION DATED NOVEMBER 20, 2009

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file	filename
8-K - CURRENT REPORT - AFFILIATED COMPUTER SERVICES INC	form8-k.htm
EX-99.1 - PRESS RELEASE - AFFILIATED COMPUTER SERVICES INC	ex99-1.htm

Exhibit 99.2

IN THE COUNTY COURT AT LAW NO. 3,

DALLAS COUNTY, TEXAS

CITY of ST. CLAIR SHORES POLICE AND FIRE RETIREMENT SYSTEM, Individually and On

Behalf of All Others Similarly Situated,

AFFILIATED COMPUTER SERVICES, INC., et al.

No. CC-09-07377-C

--- and ---

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

In re ACS SHAREHOLDER LITIGATION

Consolidated C.A. No. 4940-VCP

STIPULATION

City of St. Clair Shores Police and Fire Retirement System, Mark Levy, Steward Large Cap Enhanced Index Fund, Edward Delgato, York County Employees Retirement Board, John Rahe and International Union of Operating Engineers Local 825 Pension Fund (collectively, the “Texas Plaintiffs”), who are the plaintiffs in the action captioned City of St. Clair Shores Police and Fire Retirement System v. Affiliated Computer Services, Inc., No. CC-09-07377-C, in the County Court at Law No. 3, Dallas County, Texas and all actions consolidated therewith (the “Texas Action”), and New Orleans Employees’ Retirement System, Sheet Metal Workers Local 28, Federated Kaufman Fund, Federated Kaufman Growth Fund, Federated Kaufman Fund II and Federated Max-Cap Index Fund (collectively, the “Delaware Plaintiffs”, and together with the Texas Plaintiffs, the “Plaintiffs”), who are the plaintiffs and class representatives in the action captioned In re ACS Shareholders Litigation, C.A. No. 4940-VCP, in the Chancery Court of the State of Delaware and all actions consolidated therewith (the “Delaware Action”, and together with the Texas Action, the “Actions”), and Affiliated Computer Services, Inc. (“ACS”), Darwin Deason, Lynn R. Blodgett, Robert A. Druskin, Kurt R. Krauss, Ted B. Miller, Paul E. Sullivan, Frank Varasano, Boulder Acquisition Corp. and Xerox Corporation (collectively, “Defendants”) hereby stipulate and agree as follows:

1. Capitalized terms used in this Stipulation have the same meanings ascribed to those terms in the Agreement and Plan of Merger, dated as of September 27, 2009, among Xerox Corporation, Boulder Acquisition Corp. and Affiliated Computer Services, Inc. (the “Merger Agreement”), and the Voting Agreement by and between Xerox Corporation and Darwin Deason, dated as of September 27, 2009 (the “Voting Agreement”).

2. Xerox Corporation undertakes that:

(i) if the ACS Board of Directors determines that ACS has received a Superior Proposal, Xerox Corporation will not enforce any provision of the Voting Agreement, including, without limitation, § 2.1, that obliges Darwin Deason to vote any of the Covered Shares (a) in favor of the Merger or (b) against such Superior Proposal;

(ii) it will release Darwin Deason from the proxy granted under § 2.3 of the Voting Agreement in the event that the ACS Board of Directors determines that ACS has received a Superior Proposal;

(iii) it will not enforce any provision of the Merger Agreement, including, without limitation, § 4.02(d), that would have the effect of compelling ACS or its Board of Directors to hold the Company Stockholders’ Meeting if the ACS Board of Directors (a) determines that ACS has received a Superior Proposal, and (b) makes a Company Adverse Recommendation Change as a result thereof; and

(iv) if (a) the ACS Board of Directors determines that ACS has received a Superior Proposal, and (b) a Company Adverse Recommendation Change occurs as a result thereof, then, at the request of the ACS Board of Directors, Xerox Corporation shall terminate the Merger Agreement pursuant to § 7.01(f)(i) of the Merger Agreement.

3. The Texas Plaintiffs (a) contemporaneously with the execution of this Stipulation, have withdrawn their Motion for a Temporary and/or Permanent Injunction with prejudice, and (b) will stay prosecution of the Texas Action until agreed otherwise by the Defendants and ordered by the Court. All Plaintiffs agree that any further prosecution of the Actions, or any claims that could have been brought in the Actions, will proceed in the Delaware Action. Counsel for the Texas Plaintiffs may appear in the Delaware Action for that purpose.

4. The Plaintiffs in the Actions will not seek to enjoin or otherwise prevent the enforcement of the Challenged Provisions, as defined in the Stipulation and Order on Expedited Discovery and Expedited Proceedings on Plaintiff’s Motion for Temporary and/or Permanent Injunction, entered in the Texas Action on October 29, 2009. This Stipulation shall be without prejudice to any other right, remedy or defense of the parties in the Actions.

5. Except as explicitly set forth herein, neither Xerox Corporation nor ACS shall be deemed to make any undertaking with respect to the Merger Agreement or the Voting Agreement.

DATED: November 20, 2009	BARON & BUDD, P.C. BRUCE W. STECKLER Texas State Bar No. 00785039 KELLY REDDELL Texas State Bar No. 12618250
	/s/ Kelly Reddell

	3102 Oak Lawn Avenue, Suite 1100 Dallas, TX 75219 Telephone: 214/521-3605 214/520-1181 (fax)
	COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP DARREN J. ROBBINS RANDALL J. BARON DAVID T. WISSBROECKER 655 West Broadway, Suite 1900 San Diego, CA 92101 Telephone: 619/231-1058 619/231-7423 (fax)
	Lead Counsel for the Texas Plaintiffs

	VANOVERBEKE MICHAUD & TIMMONY, P.C. MICHAEL J. VANOVERBEKE THOMAS C. MICHAUD 79 Alfred Street Detroit, MI 48201 Telephone: 313/578-1200 313/578-1201 (fax)

By:	/s/ Orrin Harrison III	By:	/s/ Bob Mow
Orrin Harrison III State Bar No. 09130700 M. Scott Barnard State Bar No. 24001690 AKIN GUMP STRAUSS HAUER & FELD LLP 1700 Pacific Avenue, Suite 4100 Dallas, Texas 75201 Tel: (214) 969-2800 / Fax: (214) 969-4343 John D. Donovan, Jr. (pro hac vice pending) Peter L. Welsh (pro hac vice pending) ROPES & GRAY LLP One International Place Boston, Massachusetts 02110 Tel: (617) 951-7000 / Fax: (617) 951-7050 Attorneys for ACS Special Committee Members Kurt R. Krauss, Paul E. Sullivan, Ted B. Miller, Jr., and Frank Varasano		Bob Mow State Bar No. 14607000 Bart Sloan State Bar No. 00788430 K&L GATES 1717 Main Street, Suite 2800 Dallas, Texas 75201 Tel: (214) 939-5500 / Fax: (214) 939-5849 Peter E. Kazanoff (pro hac vice pending) SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, New York 10017 Tel: (212) 455-2000 / Fax: (212) 455-2502 Attorneys for Xerox Corporation and Boulder Acquisition Corp.
By:	/s/ Robert Elkin	By:	/s/ Michael P. Lynn
Lewis T. LeClair State Bar No. 12072500 Robert Elkin State Bar No. 06522600 McKOOL SMITH P.C. 300 Crescent Court, Suite 1500 Dallas, Texas 75201 Tel: (214) 978-4000 / Fax: (214) 978-4044 Attorneys for Darwin Deason		Michael P. Lynn State Bar No. 12738500 Trey Cox State Bar No. 24003722 LYNN TILLOTSON PINKER & COX, LLP 2100 Ross Avenue, Suite 2700 Dallas, Texas 75201 Tel: (214) 981-3800 / Fax: (214) 981-3839 Francis P. Barron (pro hac vice pending) Gary A. Bornstein (pro hac vice pending) CRAVATH, SWAINE & MOORE LLP Worldwide Plaza 825 Eighth Avenue New York, New York 10019 Tel: (212) 474-1000 / Fax: (212) 474-3700 Attorneys for Lynn R. Blodgett, Robert Allen Druskin and Affiliated Computer Services, Inc.

Of Counsel:

By:

/s/ Cynthia A. Calder

Mark Lebovitch Amy Miller BERNSTEIN LITOWITZ BERGER & GROSSMANN LLP 1285 Avenue of the Americas New York, New York 10019 (212) 554-1400 Stephen Lowey Thomas Skelton LOWEY DANNENBERG COHEN & HART, P.C. One North Broadway White Plains, NY 10601-2310 (914) 997-0500	Jay W. Eisenhofer (#2864) Stuart M. Grant (#2526) Cynthia A. Calder (#2978) GRANT & EISENHOFER, P.A. 1201 North Market Street Wilmington, Delaware 18901 (302) 622-7000 Attorneys for Co-Lead Plaintiffs and Class Representatives New Orleans Employees’ Retirement System, the Federated Kaufman Fund, the Federated Kaufman Growth Fund, the Federated Kaufman Fund II and the Federated Max-Cap Index Fund
Of Counsel: John D. Donovan, Jr. Peter L. Welsh ROPES & GRAY LLP One International Place Boston, Massachusetts 02110 (617) 951-7000	By:	/s/ Kevin G. Abrams
	Kevin G. Abrams (#2357) Nathan A. Cook (#4841) ABRAMS & BAYLISS LLP 20 Montchanin Road Suite 200 Wilmington, Delaware 19807 (302) 778-1000 Attorneys for ACS Special Committee Members Kurt R. Krauss, Paul E. Sullivan, Ted B. Miller, Jr. and Frank Varasano
Of Counsel: Peter E. Kazanoff SIMPSON THACHER & BARTLETT LLP 425 Lexington Avenue New York, New York 10017-3954 (212) 455-2000	By:	/s/ Raymond J. DiCamillo
	Raymond J. DiCamillo (#3188) Harry Tashjian, IV (#4609) RICHARDS, LAYTON & FINGER, P.A. One Rodney Square 920 North King Street Wilmington, Delaware 19801 (302) 651-7700 Attorneys for Xerox Corporation and Boulder Acquisition Corp.

Of Counsel: Lewis T. LeClair Robert Elkin MCKOOL SMITH P.C. 300 Crescent Court, Suite 1500 Dallas, TX 75201 (214) 978-4000	By:	/s/ Bruce L. Silverstein
	David C. McBride (#408) Bruce L. Silverstein (#2495) YOUNG CONAWAY STARGATT & TAYLOR, LLP 1000 West Street – 17th Floor P.O. Box 391 Wilmington, Delaware 19899-0391 (302) 571-6600 Attorneys for Darwin Deason
Of Counsel: Francis P. Barron Gary A. Bornstein CRAVATH, SWAINE & MOORE LLP Worldwide Plaza 825 Eighth Avenue New York, New York 10019 (212) 474-1000	By:	/s/ Samuel T. Hirzel
	Kenneth J. Nachbar (#2067) MORRIS, NICHOLS, ARSHT & TUNNELL LLP 1201 North Market Street P.O. Box 1347 Wilmington, Delaware 19899-1347 (302) 658-9200 Attorneys for Lynn R. Blodgett, Robert Allen Druskin and Affiliated Computer Services, Inc.
Dated: November 20, 2009

AFFILIATED COMPUTER SERVICES INC - FORM 8-K - EX-99.2 - STIPULATION DATED NOVEMBER 20, 2009 - November 23, 2009

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