K2 Inc. and the City of
Roseville Employees' Retirement System agreed to a settlement in principle of the
pending litigation in the Superior Court of the State of California
brought by the City of Roseville Employees' Retirement System relating
to the pending acquisition of K2 by Jarden Corporation. The
material terms of the settlement include K2's agreement to make
certain disclosures regarding the transaction, which disclosures K2
has already made in its proxy materials sent to shareholders and
reports previously filed with the Securities and Exchange Commission.
The settlement also provides that K2 and Jarden will amend the merger
agreement with respect to the transaction as soon as reasonably
possible in order to reduce from $27.5 million to $24 million the
termination fee payable by K2 to Jarden under certain circumstances in
the event that the merger agreement is terminated. The settlement
includes full releases of all the defendants. The settlement is
subject to preliminary and final approval of the California Superior
Court where the case is pending. A companion case brought by
Steamfitters Local 449 Pension & Retirement Security Funds will be
dismissed.
