UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

SCHEDULE 13D

(Amendment No. 12)*

 

Under the Securities Exchange Act of 1934

 

 

 

W.R. GRACE & CO.

(Name of Issuer)

 

Common Stock, par value $0.01 per share

(Title of Class of Securities)

 

38388F108

(CUSIP Number)

 

David S. Winter

David J. Millstone

40 North Management LLC

9 West 57th Street, 47th Floor

New York, New York 10019

(212) 821-1600

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

 

COPIES TO:

Robert W. Downes, Esq.

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004

(212) 558-4000

 

April 26, 2021

(Date of Event which Requires Filing of this Statement)

  

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. ¨

 

 

 

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule §240.13d-7 for other parties to whom copies are to be sent.

 

 

  

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

 

 

  1.

Names of Reporting Persons

 

40 NORTH MANAGEMENT LLC  

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

AF

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

9,865,008

 

8.

 

Shared Voting Power

 

0

 

9.

 

Sole Dispositive Power

 

9,865,008

 

10.

 

Shared Dispositive Power

 

0

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

IA

  

 

 

  

  1.

Names of Reporting Persons

 

40 NORTH GP III LLC

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

AF

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

0

 

8.

 

Shared Voting Power

 

9,865,008

 

9.

 

Sole Dispositive Power

 

0

 

10.

 

Shared Dispositive Power

 

9,865,008

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

OO

 

 

 

  

  1.

Names of Reporting Persons

 

40 NORTH LATITUDE MASTER FUND LTD.

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x  
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

WC

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

CAYMAN ISLANDS

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

0

 

8.

 

Shared Voting Power

 

9,865,008

 

9.

 

Sole Dispositive Power

 

0

 

10.

 

Shared Dispositive Power

 

9,865,008

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

CO

 

 

 

  

  1.

Names of Reporting Persons

 

40 NORTH LATITUDE FUND LP

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

WC

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

DELAWARE

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

0

 

8.

 

Shared Voting Power

 

9,865,008

 

9.

 

Sole Dispositive Power

 

0

 

10.

 

Shared Dispositive Power

 

9,865,008

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

PN

  

 

 

  

  1.

Names of Reporting Persons

 

DAVID S. WINTER

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

AF

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

UNITED STATES

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

0

 

8.

 

Shared Voting Power

 

9,865,008

 

9.

 

Sole Dispositive Power

 

0

 

10.

 

Shared Dispositive Power

 

9,865,008

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

IN

  

 

 

  

  1.

Names of Reporting Persons

 

DAVID J. MILLSTONE

     
  2. Check the Appropriate Box if a Member of a Group (See Instructions)
    (a) ¨
    (b) x
     
  3.

SEC Use Only

 

     
  4.

Source of Funds (See Instructions)

 

AF

     
  5.

Check Box if Disclosure of Legal Proceedings Is Required Pursuant to Items 2(d) or 2(e)     ¨

 

     
  6.

Citizenship or Place of Organization

 

UNITED STATES

Number of

Shares

Beneficially

Owned by

Each

Reporting

Person With

 

7.

 

Sole Voting Power

 

0

 

8.

 

Shared Voting Power

 

9,865,008

 

9.

 

Sole Dispositive Power

 

0

 

10.

 

Shared Dispositive Power

 

9,865,008

 

 

11.

 

Aggregate Amount Beneficially Owned by Each Reporting Person

 

9,865,008

 

 

12.

 

Check Box if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)   ¨

 

 

 

13.

 

Percent of Class Represented by Amount in Row (11)

 

14.9%

 

 

14.

 

Type of Reporting Person (See Instructions)

 

IN

 

 

 

 

AMENDMENT NO. 12 TO SCHEDULE 13D

 

This Amendment No. 12 supplements the information set forth in the Schedule 13D filed by 40 North Management LLC, a Delaware limited liability company, 40 North Latitude Fund LP, a Delaware limited partnership, 40 North GP III LLC, a Delaware limited liability company, 40 North Latitude Master Fund Ltd., a Cayman Islands exempted company incorporated with limited liability, David S. Winter, an American citizen, and David J. Millstone, an American citizen, with the United States Securities and Exchange Commission (the “SEC”) on May 7, 2018, as heretofore amended (the “Schedule 13D”), relating to Common Stock, par value $0.01 per share (the “Shares”), of W.R. Grace & Co., a Delaware corporation (the “Issuer”). All capitalized terms contained herein but not otherwise defined shall have the meanings ascribed to such terms in the Schedule 13D.

 

The information set forth in response to each separate Item below shall be deemed to be a response to all Items where such information is relevant. The Schedule 13D is hereby supplementally amended as follows:

 

Item 2. Identity and Background.

 

This statement on Schedule 13D is filed on behalf of 40 North Management LLC, a Delaware limited liability company (“40 North Management”), 40 North Latitude Fund LP, a Delaware limited partnership (“40 North Latitude Feeder”), 40 North GP III LLC, a Delaware limited liability company (“40 North GP III”), 40 North Latitude Master Fund Ltd., a Cayman Islands exempted company incorporated with limited liability (“40 North Latitude Master”), David S. Winter, an American citizen and David J. Millstone, an American citizen (all of the foregoing, collectively, the “Reporting Persons”).

 

This statement relates to Shares held by 40 North Latitude Master.

 

The principal business of each of 40 North Latitude Feeder and 40 North Latitude Master is the making of investments in securities and other assets. The principal business of 40 North GP III is to serve as general partner of 40 North Latitude Feeder. 40 North Management serves as principal investment manager to 40 North Latitude Feeder and 40 North Latitude Master. As such, 40 North Management has been granted investment discretion over portfolio investments, including the Shares. David S. Winter and David J. Millstone serve as the sole members and principals of each of 40 North Management and 40 North GP III, and as the sole directors of 40 North Latitude Master. The principal business address of all of the Reporting Persons, is 9 West 57th Street, 47th Floor, New York, New York 10019. A joint filing agreement of the Reporting Persons is attached hereto as Exhibit 1.

 

 

 

 

During the last five years, none of the Reporting Persons has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) or has been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

Item 3. Source and Amount of Funds or Other Consideration.

 

The responses to Items 4, 5 and 6 of this Schedule 13D are incorporated herein by reference.

 

The Shares reported herein were purchased by 40 North Latitude Master using working capital. The total purchase price for the Shares reported herein was $640,071,630. All or part of the Shares owned by the Reporting Persons may from time to time be pledged with one or more banking institutions or brokerage firms as collateral for loans made by such bank(s) or brokerage firm(s) to the Reporting Persons. Such indebtedness may be refinanced with other banks or broker dealers.

 

Item 4. Purpose of Transaction.

 

Item 4 of this Schedule 13D is hereby amended and supplemented by adding the following information: 

  

As previously disclosed, the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master (collectively, the “40 North Parties”) have been in ongoing discussions regarding a potential transaction.

 

On April 26, 2021, the Issuer, Gibraltar Acquisition Holdings LLC, an indirect wholly owned subsidiary of Standard Industries Holdings Inc. (“Standard”) and Gibraltar Merger Sub Inc. (“Merger Sub”), a wholly owned subsidiary of Gibraltar Acquisition Holdings LLC, entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Merger Sub will merge with and into the Issuer with the Issuer surviving the merger and becoming an indirect wholly owned subsidiary of Standard. Standard is the parent company of Standard Industries Inc., a privately held global industrial company. The 40 North Parties comprise a related investment platform of Standard.

 

On April 26, 2021, in connection with the Merger Agreement, the Issuer and 40 North Latitude Master entered into a Voting Agreement (the “Voting Agreement”) and the Issuer and the 40 North Parties entered into a second amendment (the “Second Amendment”) to the letter agreement previously entered into between the Issuer and the 40 North Parties, pursuant to which the 40 North Parties may be furnished with certain confidential information by or on behalf of the Issuer (the “Confidentiality Letter Agreement”), copies of which are attached as Exhibit 12 and Exhibit 13 hereto and are incorporated by reference herein.

 

Item 5. Interest in Securities of the Issuer.

 

(a)  – (b) Each of 40 North Management, 40 North Latitude Master, 40 North Latitude Feeder, 40 North GP III, Mr. Winter and Mr. Millstone may be deemed the beneficial owner of all of the Shares reported herein, which represent approximately 14.9% of the Issuer’s outstanding Shares. 40 North Management may be deemed to have sole power to vote and sole power to dispose of all of the Shares, whereas the other Reporting Persons having beneficial ownership may be deemed to have shared power to vote and shared power to dispose of such Shares as they may be deemed to have beneficial ownership of.

 

 

 

 

The percentage in the immediately foregoing paragraph is calculated based on a total of 66,191,426 Shares outstanding as of January 31, 2021 (based on the Issuer’s Annual Report on Form 10-K filed with the SEC on February 26, 2021).

 

(c)  There have been no transactions with respect to the Shares during the sixty days prior to the date hereof by any of the Reporting Persons.

 

(d)  In addition to the Reporting Persons, the limited partners of (or investors in) 40 North Latitude Feeder or its subsidiaries or affiliated entities, have the right to participate in the receipt of dividends from, or proceeds from the sale of, the Shares held for the account of 40 North Latitude Feeder in accordance with their respective limited partnership interests (or investment percentages).

 

(e) Not applicable.

 

Item 6. Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer.

 

Item 6 of this Schedule 13D is hereby amended and supplemented by adding the following information:

 

The following description of the Voting Agreement, defined and referenced in Item 4 above, does not purport to be complete and is qualified in its entirety by reference to the Voting Agreement, which is attached hereto as Exhibit 12 and is incorporated herein by reference.

 

Pursuant to the Voting Agreement, 40 North Latitude Master agreed to, among other things, vote all of the Shares beneficially owned by it and any other Shares that it may acquire during the term of the Voting Agreement (the “Covered Shares”) in favor of (i) the adoption of the Merger Agreement and the approval of the transactions contemplated thereby, including the merger, and (ii) any other matter or action necessary to the consummation of the merger, at every Issuer’s stockholder meeting at which such matters are to be voted on, until the earlier of when the affirmative vote of the holders of a majority of the voting power of the then-outstanding Shares to adopt the Merger Agreement is received or the Merger Agreement is validly terminated (the “Expiration Time”).

 

In addition, 40 North Latitude Master agreed that until the Expiration Time, it will not transfer or cause or permit the transfer of any of its Covered Shares, except (i) between 40 North Latitude Master and any controlled affiliate of 40 North Latitude Master or (ii) to a trust for the benefit of, and controlled by, 40 North Latitude Master, in each case so long as, (a) prior to and as a condition to the effectiveness of any such transfer, such affiliate or transferee executes and delivers to the Issuer a joinder to the Voting Agreement and (b) such transfers do not reduce the aggregate beneficial ownership of 40 North Latitude Master.

 

On April 26, 2021, the Issuer entered into the Second Amendment to the Confidentiality Letter Agreement with the 40 North Parties, defined and referenced in Item 4 above and attached as Exhibit 13 hereto, pursuant to which the Issuer and the 40 North Parties agreed to allow the 40 North Parties to  engage or provide confidential information to equity or debt financing sources in connection with the potential transaction without the express prior written approval of the Issuer to the extent such financing sources are informed by the 40 North Parties of the confidential nature of such information and are directed to abide for the benefit of the Issuer to the confidentiality terms in the Confidentiality Letter Agreement.

 

The foregoing description of the Second Amendment to the Confidentiality Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Second Amendment to the Confidentiality Letter Agreement, a copy of which is attached hereto as Exhibit 13 and is incorporated herein by reference.

 

 

 

 

Item 7. Material to be Filed as Exhibits.

 

Exhibit 1 – Agreement by and among 40 North Management, 40 North GP III, 40 North Latitude Feeder, 40 North Latitude Master, David S. Winter and David J. Millstone to file this Schedule 13D and any amendments thereto jointly on behalf of each of them. 

 

Exhibit 2 – Letter of Resignation from Kathleen G. Reiland, dated October 13, 2020 (incorporated by reference to Exhibit 2 to Schedule 13D (Amendment No. 5) filed by the Reporting Persons on October 14, 2020).

 

Exhibit 3 – Letter Agreement between the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master, dated February 20, 2019 (incorporated by reference to Exhibit 3 to Schedule 13D (Amendment No. 4) filed by the Reporting Persons on February 20, 2019).

 

Exhibit 4 – Confidentiality Agreement between the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master, dated February 20, 2019 (incorporated by reference to Exhibit 4 to Schedule 13D (Amendment No. 4) filed by the Reporting Persons on February 20, 2019).

 

Exhibit 5 – Offer Letter to the Board of Directors of the Issuer, dated November 9, 2020 (incorporated by reference to Exhibit 5 to Schedule 13D (Amendment No. 6) filed by the Reporting Persons on November 9, 2020).

 

Exhibit 6 – Press Release with Offer Letter to the Board of Directors of the Issuer, dated January 11, 2021 (incorporated by reference to Exhibit 6 to Schedule 13D (Amendment No. 7) filed by the Reporting Persons on January 11, 2021).

 

Exhibit 7 – Letter Agreement between the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master, dated February 1, 2021 (incorporated by reference to Exhibit 7 to Schedule 13D (Amendment No. 8) filed by the Reporting Persons on February 1, 2021).

 

Exhibit 8 – Press Release with Offer Letter to the Board of Directors of the Issuer, dated April 1, 2021 (incorporated by reference to Exhibit 8 to Schedule 13D (Amendment No. 9) filed by the Reporting Persons on April 1, 2021).

 

Exhibit 9 – Letter to the President and Chief Executive Officer of the Issuer, dated April 6, 2021 (incorporated by reference to Exhibit 9 to Schedule 13D (Amendment No. 10) filed by the Reporting Persons on April 6, 2021).

 

Exhibit 10 – Amendment to the Letter Agreement between the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master, dated April 14, 2021 (incorporated by reference to Exhibit 10 to Schedule 13D (Amendment No. 11) filed by the Reporting Persons on April 14, 2021).

 

Exhibit 11 – Press Release dated April 14, 2021 (incorporated by reference to Exhibit 11 to Schedule 13D (Amendment No. 11) filed by the Reporting Persons on April 14, 2021).

 

Exhibit 12 – Voting Agreement between the Issuer and 40 North Latitude Master, dated April 26, 2021.

 

Exhibit 13 – Second Amendment to the Letter Agreement between the Issuer and 40 North Management, 40 North Latitude Feeder, 40 North GP III and 40 North Latitude Master, dated April 26, 2021.

 

 

 

 

SIGNATURES

 

After reasonable inquiry and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Date: April 26, 2021

40 NORTH MANAGEMENT LLC
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

40 NORTH LATITUDE FUND LP
   
  By 40 North GP III LLC, its General Partner 
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

40 NORTH LATITUDE MASTER FUND LTD.
   
  By:
    /s/ David S. Winter
    David S. Winter
    Director

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Director

 

 

 

 

Date: April 26, 2021

40 NORTH GP III LLC
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

DAVID S. WINTER
   
  By:
    /s/ David S. Winter

 

Date: April 26, 2021

DAVID J. MILLSTONE
     
  By:  
    /s/ David J. Millstone

 

 

 

 

Exhibit 1

 

AGREEMENT

JOINT FILING OF SCHEDULE 13D

 

The undersigned hereby agree to jointly prepare and file with regulatory authorities this Schedule 13D and any future amendments thereto reporting each of the undersigned’s ownership of securities of W.R. Grace & Co., and hereby affirm that such Schedule 13D is being filed on behalf of each of the undersigned pursuant to and in accordance with the provisions of Rule 13d-1(k) under the Securities Exchange Act of 1934. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained therein, but shall not be responsible for the completeness and accuracy of the information concerning the other, except to the extent that he or it knows or has reason to believe that such information is inaccurate.

 

Date: April 26, 2021

40 NORTH MANAGEMENT LLC
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

40 NORTH LATITUDE FUND LP
   
  By 40 North GP III LLC, its General Partner 
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

40 NORTH LATITUDE MASTER FUND LTD.
   
  By:
    /s/ David S. Winter
    David S. Winter
    Director

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Director

 

Date: April 26, 2021

40 NORTH GP III LLC
   
  By:
    /s/ David S. Winter
    David S. Winter
    Principal

 

  By:
    /s/ David J. Millstone
    David J. Millstone
    Principal

 

Date: April 26, 2021

DAVID S. WINTER
   
  By:
    /s/ David S. Winter

 

Date: April 26, 2021

DAVID J. MILLSTONE
   
  By:
    /s/ David J. Millstone

 

 

 

Exhibit 12

 

VOTING AGREEMENT

 

This Voting Agreement (this “Agreement”) is made and entered into as of April 26, 2021 (the “Agreement Date”), by and between W. R. Grace & Co., a Delaware corporation (the “Company”), and the stockholder of the Company listed on Schedule A and the signature pages hereto (the “Stockholder”). Each of the Company and the Stockholder is sometimes referred to as a “Party.”

 

RECITALS

 

A.         Concurrently with the execution and delivery of this Agreement, Gibraltar Acquisition Holdings LLC, a Delaware limited liability company (“Parent”), Gibraltar Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Parent (“Merger Sub”), and the Company are entering into an Agreement and Plan of Merger (as amended, supplemented or modified from time to time, the “Merger Agreement”) that, among other things and subject to the terms and conditions set forth therein, provides for the merger of Merger Sub with and into the Company, with the Company being the surviving entity in such merger (the “Merger”).

 

B.         As of the Agreement Date, the Stockholder is the record or “beneficial owner” (within the meaning of Rule 13d-3 under the Exchange Act) of the number of shares of common stock, par value $0.01 per share, of the Company (the “Company Common Stock”) set forth next to such Stockholder’s name on Schedule A hereto, being all of the shares of Company Common Stock owned of record or beneficially by such Stockholder as of the Agreement Date (the “Owned Shares”, and the Owned Shares together with any additional shares of Company Common Stock that such Stockholder may acquire record or beneficial ownership of after the Agreement Date, such Stockholder’s “Covered Shares”).

 

C.          As an inducement and condition to the Company’s willingness to enter into the Merger Agreement, the Stockholder has agreed to enter into this Agreement with respect to the Stockholder’s Covered Shares.

 

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, do hereby agree as follows:

 

1.          Definitions. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement. When used in this Agreement, the following terms shall have the meanings assigned to them in this Section 1.

 

1.1.               Expiration Time” shall mean with respect to the Stockholder’s obligations hereunder in respect of the Merger Agreement and the Merger, the earlier to occur of (i) such date and time as the Merger Agreement shall be validly terminated pursuant to Article VIII thereof and (ii) the receipt of the Company Stockholder Approval.

 

1.2.               Transfer” shall mean (a) any direct or indirect offer, sale, assignment, encumbrance, pledge, hypothecation, tender, hedge, disposition, or other transfer (by operation of law or otherwise), either voluntary or involuntary, or entry into any option or other Contract, arrangement or understanding with respect to any offer, sale, assignment, encumbrance, pledge, hypothecation, tender, hedge, disposition or other transfer (by operation of law or otherwise), of any Covered Shares or any interest in any Covered Shares (in each case other than this Agreement), (b) creating or permitting to exist any Liens, other than Liens arising under or imposed by applicable securities Law or pursuant to this Agreement or the Merger Agreement (the “Permitted Liens”), (c) the deposit of such Covered Shares into a voting trust, the entry into a voting agreement or arrangement (other than this Agreement) with respect to such Covered Shares or the grant of any proxy, power of attorney or other authorization (other than this Agreement or pursuant to Section 3.3 of this Agreement) with respect to such Covered Shares, or (d) any Contract or commitment (whether or not in writing) to take any of the actions referred to in the foregoing clauses (a), (b) or (c) above.

 

 

 

 

2.          Agreement to Not Transfer the Covered Shares. Until the Expiration Time, the Stockholder agrees not to Transfer or cause or permit the Transfer of any of such Stockholder’s Covered Shares; provided, however, that the foregoing shall not prohibit Transfers (i) between such Stockholder and any controlled Affiliate of such Stockholder or (ii) to a trust for the benefit of, and controlled by, such Stockholder, in each case so long as, (a) prior to and as a condition to the effectiveness of any such Transfer, such Affiliate or transferee executes and delivers to the Company a joinder to this Agreement in the form attached hereto as Annex A and (b) such Transfers do not reduce the aggregate beneficial ownership (as defined pursuant to Section 13(d) of the Exchange Act) of the Stockholder. Any Transfer or attempted Transfer of any Covered Shares in violation of this Section 2 shall be null and void and of no effect whatsoever.

 

3.           Agreement to Vote the Covered Shares.

 

3.1.               Voting Agreement. Until the Expiration Time, at every meeting of the Company’s stockholders at which any of the following matters are to be voted on (and at every adjournment or postponement thereof), and on any action or approval of the Company’s stockholders by written consent with respect to any of the following matters, the Stockholder unconditionally and irrevocably agrees to vote (including via proxy) all of such Stockholder’s Covered Shares (or cause the holder of record on any applicable record date to vote (including via proxy) all of such Stockholder’s Covered Shares) unless the Merger Agreement has been validly terminated pursuant to Article VIII thereof in favor of (X) the adoption of the Merger Agreement and the approval of the transactions contemplated thereby, including the Merger, (Y) the adjournment of the Company Stockholders Meeting if necessary (i) to solicit proxies in favor of the adoption of the Merger Agreement and the consummation of the transactions contemplated thereby or (ii) to ensure that any necessary supplement or amendment to the Proxy Statement is provided to the holders of Company Common Stock sufficiently in advance of a vote on the Merger Agreement, and (Z) any other matter or action necessary to the consummation of the Merger.

 

3.2.            Quorum. Until the Expiration Time, at every meeting of the Company’s stockholders (and at every adjournment or postponement thereof), the Stockholder shall be represented in attendance or by proxy at such meeting (or cause the holders of record on any applicable record date to be represented in attendance or by proxy at such meeting) in order for the Covered Shares to be counted as present for purposes of establishing a quorum.

 

3.3.               Return of Proxy. The Stockholder shall execute and deliver (or cause the holders of record to execute and deliver), within five (5) Business Days of receipt, any proxy card or voting instructions it receives that is sent to stockholders of the Company soliciting proxies with respect to any matter described in Section  3.1, which shall be voted in the manner described in Section 3.1 (with the Company to be promptly notified of such execution and delivery of such proxy card or voting instructions).

 

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4.          Waiver of Appraisal Rights. The Stockholder hereby irrevocably waives all appraisal rights under Section 262 of the DGCL with respect to all of such Stockholder’s Covered Shares owned (beneficially or of record) by such Stockholder, a copy of which is attached hereto as Exhibit A, with respect to the Merger and the transactions contemplated by the Merger Agreement.

 

5.          New Shares. The Stockholder agrees that any Covered Shares that such Stockholder purchases or with respect to which such Stockholder otherwise acquires record or beneficial ownership (including pursuant to a stock split, reverse stock split, stock dividend or distribution or any change in Company Common Stock by reason of any recapitalization, reorganization, combination, reclassification, exchange of shares or similar transaction) after the Agreement Date and prior to the Expiration Time shall be subject to the terms and conditions of this Agreement to the same extent as if they comprised the Owned Shares.

 

6.           Representations and Warranties of the Stockholder. The Stockholder hereby represents and warrants to the Company that:

 

6.1.            Due Authority. The Stockholder has all requisite power and capacity to make, enter into and carry out the terms of this Agreement. The Stockholder is duly organized, validly existing and in good standing in accordance with the laws of its jurisdiction of formation. The Stockholder’s execution and delivery of this Agreement, the Stockholder’s performance of its obligations hereunder, and the consummation of the transactions contemplated hereby have been validly authorized by the Stockholder, and no other action on the part of the Stockholder is necessary to authorize the execution and delivery of this Agreement by the Stockholder, the performance of the Stockholder’s obligations hereunder or the consummation of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Stockholder and constitutes a valid and binding obligation of the Stockholder enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exceptions.

 

6.2.            Ownership of the Covered Shares. Except as disclosed in the Schedule 13D prior to the date of this Agreement (a) the Stockholder is, as of the Agreement Date, the beneficial or record owner of such Stockholder’s Covered Shares, free and clear of any and all Liens, other than Permitted Liens, and (b) the Stockholder has sole voting power over all of the Covered Shares beneficially owned by the Stockholder. The Stockholder has not entered into, and the Covered Shares are not subject to, any agreement to Transfer any Covered Shares, except where such Transfer is not prohibited by this Agreement. As of the Agreement Date, the Stockholder does not own, beneficially or of record, any shares of Company Common Stock or other voting shares of the Company (or any securities convertible, exercisable or exchangeable for, or rights to purchase or acquire, any shares of Company Common Stock or other voting shares of the Company) other than the Owned Shares.

 

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6.3.            No Conflict; Consents.

 

a.                   The execution and delivery of this Agreement by the Stockholder does not, and the performance by the Stockholder of its obligations under this Agreement and the compliance by the Stockholder with the provisions hereof do not and will not: (a) conflict with or violate any Laws applicable to the Stockholder, or (b) conflict with, result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the Covered Shares beneficially owned by the Stockholder pursuant to any Contract, organizational document or obligation to which the Stockholder is a party or by which the Stockholder is subject.

 

b.                  No consent, approval, order or authorization of, or registration, declaration or, (except as required by the rules and regulations promulgated under the Exchange Act, the Securities Act, or state securities, takeover and “blue sky” laws) filing with, any Governmental Entity or any other Person, is required by or with respect to the Stockholder in connection with the execution and delivery of this Agreement or the consummation by the Stockholder of the transactions contemplated hereby, except as would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the ability of the Stockholder to perform the Stockholder’s obligations under this Agreement or to consummate the transactions contemplated by this Agreement.

 

6.4.            Absence of Litigation. As of the Agreement Date, there is no legal action pending against, or, to the knowledge of the Stockholder, threatened in writing against or affecting the Stockholder that would reasonably be expected, individually or in the aggregate, to prevent or materially delay or materially impair the ability of the Stockholder to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

 

6.5.            No Other Representations or Warranties. Except for the representations and warranties made by the Stockholder in this Section 6, and, if applicable, in the Merger Agreement, the Equity Commitment Letter and the Guaranty, the Stockholder does not make any express or implied representation or warranty to the Company in connection with this Agreement and the transactions contemplated by this Agreement and the Stockholder expressly disclaims any such other representations or warranties. For the avoidance of doubt, this Section 6.5 shall not limit any of the representations and warranties made in the Merger Agreement, the Equity Commitment Letter or the Guaranty.

 

7.            Representations and Warranties of the Company. The Company hereby represents and warrants to the Stockholder that:

 

7.1.            Due Authority. The Company has all requisite power and capacity to make, enter into and carry out the terms of this Agreement. The Company is duly organized, validly existing and in good standing in accordance with the laws of its jurisdiction of formation. The Company’s execution and delivery of this Agreement, the Company’s performance of its obligations hereunder, and the consummation of the transactions contemplated hereby have been validly authorized by the Company, and no other action on the part of the Company is necessary to authorize the execution and delivery of this Agreement by the Company, the performance of the Company’s obligations hereunder, or the consummation of the transactions contemplated hereby. This Agreement has been duly and validly executed and delivered by the Company and constitutes a valid and binding obligation of the Company enforceable against it in accordance with its terms, subject to the Bankruptcy and Equity Exceptions.

 

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7.2.            No Conflict; Consents.

 

a.                   The execution and delivery of this Agreement by the Company does not, and the performance by the Company of its obligations under this Agreement and the compliance by the Company with the provisions hereof do not and will not: (a) conflict with or violate any Laws applicable to the Company, or (b) conflict with, result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation, pursuant to any Contract, organizational document or obligation to which the Company is a party or by which the Company is subject.

 

b.                  No consent, approval, order or authorization of, or registration, declaration or, (except as required by the rules and regulations promulgated under the Exchange Act, the Securities Act, or state securities, takeover and “blue sky” laws) filing with, any Governmental Entity or any other Person, is required by or with respect to the Company in connection with the execution and delivery of this Agreement or the consummation by the Company of the transactions contemplated hereby, except as would not, individually or in the aggregate, reasonably be expected to prevent, materially delay or materially impair the ability of the Company to perform the Company’s obligations under this Agreement or to consummate the transactions contemplated by this Agreement.

 

7.3.            Absence of Litigation. As of the Agreement Date, there is no legal action pending against, or, to the knowledge of the Company, threatened in writing against or affecting the Company that would reasonably be expected, individually or in the aggregate, to prevent or materially delay or materially impair the ability of the Company to perform its obligations hereunder or to consummate the transactions contemplated hereby on a timely basis.

 

7.4.            No Other Representations or Warranties. Except for the representations and warranties made by the Company in this Section 7 and the Merger Agreement, the Company does not make any express or implied representation or warranty to the Stockholder in connection with this Agreement and the transactions contemplated by this Agreement and the Company expressly disclaims any such other representations or warranties. For the avoidance of doubt, this Section 7.4 shall not limit any of the representations and warranties made in the Merger Agreement.

 

8.            Miscellaneous.

 

8.1.            Other Agreements. The Company and the Stockholder agree not to take any action that would restrict, limit or interfere with the performance of its obligations hereunder. The Company and the Stockholder agree not to (i) challenge the validity of or seek to enjoin the operation of any provision of this Agreement or (ii) allege that the execution and delivery of this Agreement by the Company or such Stockholder, either alone or together with any other Company voting agreements and proxies to be delivered in connection with the execution of the Merger Agreement, or the approval of the Merger Agreement by the Company Board, breaches any fiduciary duty of the Company Board or any member thereof.

 

8.2.            No Ownership Interest. Nothing contained in this Agreement shall be deemed to vest in the Company any direct or indirect ownership or incidence of ownership of or with respect to the Covered Shares. All rights, ownership and economic benefits of and relating to the Covered Shares shall remain vested in and belong to the Stockholder, and the Company shall have no authority to direct the Stockholder in the voting or disposition of any of the Covered Shares, except as otherwise provided herein.

 

8.3.            Certain Adjustments. In the event of a stock split, stock dividend or distribution, or any change in the Company Common Stock by reason of any split-up, reverse stock split, recapitalization, combination, reclassification, exchange of shares or the like, the terms “Company Common Stock” and “Covered Shares” shall be deemed to refer to and include such shares as well as all such stock dividends and distributions and any securities into which or for which any or all of such shares may be changed or exchanged or which are received in such transaction.

 

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8.4.            Amendments and Modifications. This Agreement may not be modified, amended, altered or supplemented except upon the execution and delivery of a written agreement executed by all of the Parties.

 

8.5.            Expenses. All costs and expenses incurred by any Party in connection with this Agreement shall be paid by the Party incurring such cost or expense.

 

8.6.            Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given (a) when delivered personally by hand (with written confirmation of receipt by other than automatic means, whether electronic or otherwise), (b) when sent by facsimile or email (with written confirmation of transmission) or (c) one (1) Business Day following the day sent by an internationally recognized overnight courier (with written confirmation of receipt), in each case, at the following addresses, facsimile numbers and email addresses (or to such other address, facsimile number or email address as a Party may have specified by notice given to the other Party pursuant to this provision):

 

to the Stockholder, to the address for notice set forth on Schedule A hereto, with a copy to:

 

Sullivan & Cromwell LLP

125 Broad Street

New York, NY 10004
Attention: Matthew G. Hurd

                 Scott B. Crofton
Email:       hurdm@sullcrom.com

                 croftons@sullcrom.com

to the Company, to:

 

W. R. Grace & Co.
7500 Grace Drive
Columbia, MD 21044
Attention: Cherée Johnson, Senior Vice President, General Counsel, and Secretary
Email:       Cheree.Johnson@grace.com
 

with a copy (which shall not constitute notice) to:

 

Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, NY 10019
Attention: Andrew R. Brownstein, Esq.
                 Gregory E. Ostling, Esq.
                 Mark A. Stagliano, Esq.
Email:       ARBrownstein@wlrk.com
                 GEOstling@wlrk.com
                 MAStagliano@wlrk.com

 

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8.7.        Jurisdiction; Venue.

 

a.                   All Claims arising from, under or in connection with this Agreement or any of the transactions contemplated by this Agreement shall be raised to and exclusively determined by the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware), to whose jurisdiction and venue the Parties irrevocably and unconditionally consent and submit. Each Party hereby irrevocably and unconditionally waives any objection to the laying of venue of Claim arising out of this Agreement or any of the transactions contemplated by this Agreement in such court and hereby further irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Claim brought in any such court has been brought in an inconvenient forum. Each Party further agrees that service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in Section 8.6 or on Schedule A shall be effective service of process for any Claim brought against such Party in any such court.

 

b.                  Each of the Parties (a) irrevocably consents to submit itself, and hereby irrevocably submits itself, to the personal jurisdiction of the Court of Chancery of the State of Delaware and any federal court located in the State of Delaware, or, if neither of such courts has subject matter jurisdiction, any state court of the State of Delaware having subject matter jurisdiction, in the event any dispute arises out of this Agreement or any of the transactions contemplated by this Agreement, (b) irrevocably agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and agrees not to plead or claim any objection to the laying of venue in any such court or that any judicial proceeding in any such court has been brought in an inconvenient forum, (c) irrevocably agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the Court of Chancery of the State of Delaware and any federal court located in the State of Delaware, or, if neither of such courts has subject matter jurisdiction, any state court of the State of Delaware having subject matter jurisdiction, and (d) irrevocably consents to service of process being made through the notice procedures set forth in Section 8.6.

 

8.8.            WAIVER OF JURY TRIAL. EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES (A) THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH PARTY WOULD NOT, IN THE EVENT OF ANY ACTION, SUIT OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS AND (C) THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVER AND CERTIFICATIONS IN THIS SECTION 8.8.

 

8.9.            Documentation and Information. The Company and the Stockholder consent to and authorize the publication and disclosure by Parent, the Stockholder and the Company of such Stockholder’s holding of the Covered Shares, and the terms of this Agreement (including, for the avoidance of doubt, the disclosure of this Agreement), in any press release, the Proxy Statement and any other disclosure document required in connection with the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement.

 

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8.10.        Further Assurances. From time to time and without additional consideration, the Stockholder shall execute and deliver, or cause to be executed and delivered, such additional instruments, and shall use reasonable best efforts to take, or cause to be taken, all such further actions, as the Company may reasonably request for the purpose of carrying out this Agreement.

 

8.11.        Stop Transfer Instructions. At all times commencing with the execution and delivery of this Agreement and continuing until the Expiration Time, in furtherance of this Agreement, the Stockholder hereby authorizes the Company or its counsel to notify the Company’s transfer agent that there is a stop transfer order with respect to all of the Covered Shares (and that this Agreement places limits on the voting and transfer of the Covered Shares), subject to the provisions hereof and provided that any such stop transfer order and notice will be withdrawn and terminated by the Company immediately following the Expiration Time.

 

8.12.        Enforcement. The Parties acknowledge and agree that irreparable damage for which monetary damages, even if available, would not be an adequate remedy, would occur in the event that any Party does not perform any of the provisions of this Agreement in accordance with their specific terms or otherwise breach or threaten to breach any such provisions. It is accordingly agreed that the Parties shall be entitled to an injunction, specific performance and other equitable relief to prevent breaches or threatened breaches of this Agreement and to enforce specifically the performance of terms and provisions of this Agreement, without proof of actual damages (and each Party hereby waives any requirement for the securing or posting of any bond in connection with such remedy), this being in addition to any other remedy to which they are entitled at law or in equity. The Parties further agree not to assert that a remedy of specific enforcement is unenforceable, invalid, contrary to Law or inequitable or not appropriate for any reason, nor to assert that a remedy of monetary damages would provide an adequate remedy for any such breach.

 

8.13.        Entire Agreement. This Agreement, taken together with the Merger Agreement, the Company Disclosure Schedule, the Equity Commitment Letter, the Guaranty and the Confidentiality Agreement, constitutes the entire agreement, and supersedes all prior agreements and understandings, both written and oral, between or among the Parties with respect to the subject matter hereof. For the avoidance of doubt, nothing in this Agreement shall be deemed to amend, alter or modify, in any respect, any of the provisions of the Merger Agreement, the Company Disclosure Schedule, the Equity Commitment Letter, the Guaranty or the Confidentiality Agreement.

 

8.14.        Interpretation. When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement unless otherwise indicated. Headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used herein, they shall be deemed to be followed by the words “without limitation.” When used in this Agreement, the term “or” shall be construed in the inclusive sense of “and/or”. The words “hereof,” “hereto,” “hereby,” “herein” and “hereunder” and words of similar import when used herein shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Any agreement, instrument or statute defined or referred to herein or in any agreement or instrument that is referred to herein means such agreement, instrument or statute as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of statutes) by succession of comparable successor statutes and references to all attachments thereto and instruments incorporated therein. References to a Person are also to its permitted successors and assigns. The Parties hereto agree that they have been represented by counsel during the negotiation, drafting, preparation and execution of this Agreement and, therefore, waive the application of any Law or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

 

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8.15.        Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of Law or otherwise, by any of the Parties without the prior written consent of the other Parties. Any purported assignment without such consent shall be void. This Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Parties and their respective successors and permitted assigns.

 

8.16.        Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party or such Party waives its rights under this Section 8.16 with respect thereto. Upon any determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that transactions contemplated by this Agreement are fulfilled to the extent possible.

 

8.17.        Counterparts. This Agreement may be executed in one or more counterparts (including by means of facsimile or email in .pdf format), all of which shall be considered one and the same agreement, and shall become effective when one or more counterparts have been signed by each of the Parties and delivered to the other Parties.

 

8.18.        Governing Law. This Agreement and all Claims or causes of action of the Parties (whether in contract or in tort or otherwise, or whether at law (including at common law or by statute) or in equity) that may be based on, arise out of or relate to this Agreement or the negotiation, execution, due diligence, performance or subject matter thereof, shall be governed by and construed in accordance with the Laws of the State of Delaware, without regard to principles of conflict of laws thereof or of any other jurisdiction.

 

8.19.        Non-survival of Representations and Warranties. None of the representations and warranties in this Agreement or in any schedule, certificate, instrument or other document delivered pursuant to this Agreement shall survive the Effective Time or the termination of this Agreement. This Section 8.19 shall not limit any covenant or agreement contained in this Agreement that by its terms is to be performed in whole or in part after the Effective Time or the termination of this Agreement.

 

8.20.        No Third Party Beneficiaries. Each Party hereby agrees that its respective representations, warranties and covenants set forth in this Agreement are solely for the benefit of the other Parties on the terms and subject to the conditions set forth in this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the Parties and their respective successors, legal representatives and permitted assigns any rights or remedies, express or implied, hereunder, including the right to rely upon the representations and warranties set forth in this Agreement.

 

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8.21.        Termination. This Agreement shall automatically terminate without further action by any of the parties hereto and shall have no further force or effect as of the Expiration Time; provided that the provisions of this Section 8 shall survive any such termination. Notwithstanding the foregoing, termination of this Agreement shall not prevent any Party from seeking any remedies (at law or in equity) against any other Party for that Party’s breach of any of the terms of this Agreement prior to the date of termination.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered on the date and year first above written.

 

  W. R. GRACE & CO.
   
   
  By: /s/ Hudson La Force
    Name: Hudson La Force
    Title: President and Chief Executive Officer

 

[Signature Page to Voting Agreement]

 

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  40 NORTH LATITUDE MASTER FUND LTD.
   
   
  By: /s David J. Millstone
    Name: David J. Millstone
    Title: Director
     
     
  By: /s/ David S. Winter
    Name: David S. Winter
    Title: Director

 

[Signature Page to Voting Agreement]

 

     

 

 

Schedule A

 

Name Address Owned Shares*
40 North Latitude Master Fund Ltd. 9 West 57th Street
 47th Floor
 New York, NY 10019
9,865,008

 

 

*If any additional shares of Company Common Stock are owned by the Stockholder as of the Agreement Date, such shares shall be automatically deemed to be “Owned Shares” notwithstanding the contents of this Schedule A.

 

     

 

  

ANNEX A

 

ANNEX A

 

FORM OF JOINDER

 

This Joinder Agreement (this “Joinder Agreement”) is made as of the date written below by the undersigned (the “Joining Party”) in accordance with the Voting Agreement dated as of April 26, 2021 (the “Voting Agreement”) by and among Company and the stockholders of the Company that are party thereto as the same may be amended, supplemented or otherwise modified from time to time. Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to them in the Voting Agreement.

 

The Joining Party hereby acknowledges, agrees and confirms that, by its execution of this Joinder Agreement, the Joining Party shall be deemed to be a party to, and a “Stockholder” under, the Voting Agreement as of the date hereof and shall have all of the rights and obligations, and confirms each representation and warranty, of a “Stockholder” with the same force and effect as if it had executed the Voting Agreement (except that each reference to the Agreement Date in Section 6 (Representations and Warranties of the Stockholder) of the Voting Agreement shall be deemed a reference to the date hereof). The Joining Party hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Voting Agreement.

 

The Voting Agreement shall continue and remain in full force and effect as in effect prior to the date hereof. The provisions of Section 8 (Miscellaneous) of the Voting Agreement shall apply to this Joinder Agreement, mutatis mutandis.

 

IN WITNESS WHEREOF, the undersigned has duly executed this Joinder Agreement as of the date written below.

 

Date: [·] [·], 2021

  By:  
    Name:
    Title:
     
  Address for Notices:
   
   
  With copies to:

 

     

 

  

ACCEPTED AND AGREED

 

W. R. GRACE & CO.

 

 

By:  
  Name:  
  Title:  

 

     

 

 

Exhibit A

 

General Corporation Law of the State of Delaware, Section 262

 

§ 262. Appraisal rights.

 

(a) Any stockholder of a corporation of this State who holds shares of stock on the date of the making of a demand pursuant to subsection (d) of this section with respect to such shares, who continuously holds such shares through the effective date of the merger or consolidation, who has otherwise complied with subsection (d) of this section and who has neither voted in favor of the merger or consolidation nor consented thereto in writing pursuant to § 228 of this title shall be entitled to an appraisal by the Court of Chancery of the fair value of the stockholder’s shares of stock under the circumstances described in subsections (b) and (c) of this section. As used in this section, the word “stockholder” means a holder of record of stock in a corporation; the words “stock” and “share” mean and include what is ordinarily meant by those words; and the words “depository receipt” mean a receipt or other instrument issued by a depository representing an interest in 1 or more shares, or fractions thereof, solely of stock of a corporation, which stock is deposited with the depository.

 

(b) Appraisal rights shall be available for the shares of any class or series of stock of a constituent corporation in a merger or consolidation to be effected pursuant to § 251 (other than a merger effected pursuant to § 251(g) of this title), § 252, § 254, § 255, § 256, § 257, § 258, § 263 or § 264 of this title:

 

(1) Provided, however, that no appraisal rights under this section shall be available for the shares of any class or series of stock, which stock, or depository receipts in respect thereof, at the record date fixed to determine the stockholders entitled to receive notice of the meeting of stockholders to act upon the agreement of merger or consolidation (or, in the case of a merger pursuant to § 251(h), as of immediately prior to the execution of the agreement of merger), were either: (i) listed on a national securities exchange or (ii) held of record by more than 2,000 holders; and further provided that no appraisal rights shall be available for any shares of stock of the constituent corporation surviving a merger if the merger did not require for its approval the vote of the stockholders of the surviving corporation as provided in § 251(f) of this title.

 

(2) Notwithstanding paragraph (b)(1) of this section, appraisal rights under this section shall be available for the shares of any class or series of stock of a constituent corporation if the holders thereof are required by the terms of an agreement of merger or consolidation pursuant to §§ 251, 252, 254, 255, 256, 257, 258, 263 and 264 of this title to accept for such stock anything except:

 

a. Shares of stock of the corporation surviving or resulting from such merger or consolidation, or depository receipts in respect thereof;

 

b. Shares of stock of any other corporation, or depository receipts in respect thereof, which shares of stock (or depository receipts in respect thereof) or depository receipts at the effective date of the merger or consolidation will be either listed on a national securities exchange or held of record by more than 2,000 holders;

 

c. Cash in lieu of fractional shares or fractional depository receipts described in the foregoing paragraphs (b)(2)a. and b. of this section; or

 

d. Any combination of the shares of stock, depository receipts and cash in lieu of fractional shares or fractional depository receipts described in the foregoing paragraphs (b)(2)a., b. and c. of this section.

 

     

 

 

(3) In the event all of the stock of a subsidiary Delaware corporation party to a merger effected under § 253 or § 267 of this title is not owned by the parent immediately prior to the merger, appraisal rights shall be available for the shares of the subsidiary Delaware corporation.

 

(4) [Repealed.]

 

(c) Any corporation may provide in its certificate of incorporation that appraisal rights under this section shall be available for the shares of any class or series of its stock as a result of an amendment to its certificate of incorporation, any merger or consolidation in which the corporation is a constituent corporation or the sale of all or substantially all of the assets of the corporation. If the certificate of incorporation contains such a provision, the provisions of this section, including those set forth in subsections (d),(e), and (g) of this section, shall apply as nearly as is practicable.

 

(d) Appraisal rights shall be perfected as follows:

 

(1) If a proposed merger or consolidation for which appraisal rights are provided under this section is to be submitted for approval at a meeting of stockholders, the corporation, not less than 20 days prior to the meeting, shall notify each of its stockholders who was such on the record date for notice of such meeting (or such members who received notice in accordance with § 255(c) of this title) with respect to shares for which appraisal rights are available pursuant to subsection (b) or (c) of this section that appraisal rights are available for any or all of the shares of the constituent corporations, and shall include in such notice a copy of this section and, if 1 of the constituent corporations is a nonstock corporation, a copy of § 114 of this title. Each stockholder electing to demand the appraisal of such stockholder’s shares shall deliver to the corporation, before the taking of the vote on the merger or consolidation, a written demand for appraisal of such stockholder’s shares; provided that a demand may be delivered to the corporation by electronic transmission if directed to an information processing system (if any) expressly designated for that purpose in such notice. Such demand will be sufficient if it reasonably informs the corporation of the identity of the stockholder and that the stockholder intends thereby to demand the appraisal of such stockholder’s shares. A proxy or vote against the merger or consolidation shall not constitute such a demand. A stockholder electing to take such action must do so by a separate written demand as herein provided. Within 10 days after the effective date of such merger or consolidation, the surviving or resulting corporation shall notify each stockholder of each constituent corporation who has complied with this subsection and has not voted in favor of or consented to the merger or consolidation of the date that the merger or consolidation has become effective; or

 

(2) If the merger or consolidation was approved pursuant to § 228, § 251(h), § 253, or § 267 of this title, then either a constituent corporation before the effective date of the merger or consolidation or the surviving or resulting corporation within 10 days thereafter shall notify each of the holders of any class or series of stock of such constituent corporation who are entitled to appraisal rights of the approval of the merger or consolidation and that appraisal rights are available for any or all shares of such class or series of stock of such constituent corporation, and shall include in such notice a copy of this section and, if 1 of the constituent corporations is a nonstock corporation, a copy of § 114 of this title. Such notice may, and, if given on or after the effective date of the merger or consolidation, shall, also notify such stockholders of the effective date of the merger or consolidation. Any stockholder entitled to appraisal rights may, within 20 days after the date of giving such notice or, in the case of a merger approved pursuant to § 251(h) of this title, within the later of the consummation of the offer contemplated by § 251(h) of this title and 20 days after the date of giving such notice, demand in writing from the surviving or resulting corporation the appraisal of such holder’s shares; provided that a demand may be delivered to the corporation by electronic transmission if directed to an information processing system (if any) expressly designated for that purpose in such notice. Such demand will be sufficient if it reasonably informs the corporation of the identity of the stockholder and that the stockholder intends thereby to demand the appraisal of such holder’s shares. If such notice did not notify stockholders of the effective date of the merger or consolidation, either (i) each such constituent corporation shall send a second notice before the effective date of the merger or consolidation notifying each of the holders of any class or series of stock of such constituent corporation that are entitled to appraisal rights of the effective date of the merger or consolidation or (ii) the surviving or resulting corporation shall send such a second notice to all such holders on or within 10 days after such effective date; provided, however, that if such second notice is sent more than 20 days following the sending of the first notice or, in the case of a merger approved pursuant to § 251(h) of this title, later than the later of the consummation of the offer contemplated by § 251(h) of this title and 20 days following the sending of the first notice, such second notice need only be sent to each stockholder who is entitled to appraisal rights and who has demanded appraisal of such holder’s shares in accordance with this subsection. An affidavit of the secretary or assistant secretary or of the transfer agent of the corporation that is required to give either notice that such notice has been given shall, in the absence of fraud, be prima facie evidence of the facts stated therein. For purposes of determining the stockholders entitled to receive either notice, each constituent corporation may fix, in advance, a record date that shall be not more than 10 days prior to the date the notice is given, provided, that if the notice is given on or after the effective date of the merger or consolidation, the record date shall be such effective date. If no record date is fixed and the notice is given prior to the effective date, the record date shall be the close of business on the day next preceding the day on which the notice is given.

 

     

 

 

(e) Within 120 days after the effective date of the merger or consolidation, the surviving or resulting corporation or any stockholder who has complied with subsections (a) and (d) of this section hereof and who is otherwise entitled to appraisal rights, may commence an appraisal proceeding by filing a petition in the Court of Chancery demanding a determination of the value of the stock of all such stockholders. Notwithstanding the foregoing, at any time within 60 days after the effective date of the merger or consolidation, any stockholder who has not commenced an appraisal proceeding or joined that proceeding as a named party shall have the right to withdraw such stockholder’s demand for appraisal and to accept the terms offered upon the merger or consolidation. Within 120 days after the effective date of the merger or consolidation, any stockholder who has complied with the requirements of subsections (a) and (d) of this section hereof, upon request given in writing (or by electronic transmission directed to an information processing system (if any) expressly designated for that purpose in the notice of appraisal), shall be entitled to receive from the corporation surviving the merger or resulting from the consolidation a statement setting forth the aggregate number of shares not voted in favor of the merger or consolidation (or, in the case of a merger approved pursuant to § 251(h) of this title, the aggregate number of shares (other than any excluded stock (as defined in § 251(h)(6)d. of this title)) that were the subject of, and were not tendered into, and accepted for purchase or exchange in, the offer referred to in § 251(h)(2)), and, in either case, with respect to which demands for appraisal have been received and the aggregate number of holders of such shares. Such statement shall be given to the stockholder within 10 days after such stockholder’s request for such a statement is received by the surviving or resulting corporation or within 10 days after expiration of the period for delivery of demands for appraisal under subsection (d) of this section hereof, whichever is later. Notwithstanding subsection (a) of this section, a person who is the beneficial owner of shares of such stock held either in a voting trust or by a nominee on behalf of such person may, in such person’s own name, file a petition or request from the corporation the statement described in this subsection.

 

(f) Upon the filing of any such petition by a stockholder, service of a copy thereof shall be made upon the surviving or resulting corporation, which shall within 20 days after such service file in the office of the Register in Chancery in which the petition was filed a duly verified list containing the names and addresses of all stockholders who have demanded payment for their shares and with whom agreements as to the value of their shares have not been reached by the surviving or resulting corporation. If the petition shall be filed by the surviving or resulting corporation, the petition shall be accompanied by such a duly verified list. The Register in Chancery, if so ordered by the Court, shall give notice of the time and place fixed for the hearing of such petition by registered or certified mail to the surviving or resulting corporation and to the stockholders shown on the list at the addresses therein stated. Such notice shall also be given by 1 or more publications at least 1 week before the day of the hearing, in a newspaper of general circulation published in the City of Wilmington, Delaware or such publication as the Court deems advisable. The forms of the notices by mail and by publication shall be approved by the Court, and the costs thereof shall be borne by the surviving or resulting corporation.

 

     

 

 

(g) At the hearing on such petition, the Court shall determine the stockholders who have complied with this section and who have become entitled to appraisal rights. The Court may require the stockholders who have demanded an appraisal for their shares and who hold stock represented by certificates to submit their certificates of stock to the Register in Chancery for notation thereon of the pendency of the appraisal proceedings; and if any stockholder fails to comply with such direction, the Court may dismiss the proceedings as to such stockholder. If immediately before the merger or consolidation the shares of the class or series of stock of the constituent corporation as to which appraisal rights are available were listed on a national securities exchange, the Court shall dismiss the proceedings as to all holders of such shares who are otherwise entitled to appraisal rights unless (1) the total number of shares entitled to appraisal exceeds 1% of the outstanding shares of the class or series eligible for appraisal, (2) the value of the consideration provided in the merger or consolidation for such total number of shares exceeds $1 million, or (3) the merger was approved pursuant to § 253 or § 267 of this title.

 

(h) After the Court determines the stockholders entitled to an appraisal, the appraisal proceeding shall be conducted in accordance with the rules of the Court of Chancery, including any rules specifically governing appraisal proceedings. Through such proceeding the Court shall determine the fair value of the shares exclusive of any element of value arising from the accomplishment or expectation of the merger or consolidation, together with interest, if any, to be paid upon the amount determined to be the fair value. In determining such fair value, the Court shall take into account all relevant factors. Unless the Court in its discretion determines otherwise for good cause shown, and except as provided in this subsection, interest from the effective date of the merger through the date of payment of the judgment shall be compounded quarterly and shall accrue at 5% over the Federal Reserve discount rate (including any surcharge) as established from time to time during the period between the effective date of the merger and the date of payment of the judgment. At any time before the entry of judgment in the proceedings, the surviving corporation may pay to each stockholder entitled to appraisal an amount in cash, in which case interest shall accrue thereafter as provided herein only upon the sum of (1) the difference, if any, between the amount so paid and the fair value of the shares as determined by the Court, and (2) interest theretofore accrued, unless paid at that time. Upon application by the surviving or resulting corporation or by any stockholder entitled to participate in the appraisal proceeding, the Court may, in its discretion, proceed to trial upon the appraisal prior to the final determination of the stockholders entitled to an appraisal. Any stockholder whose name appears on the list filed by the surviving or resulting corporation pursuant to subsection (f) of this section and who has submitted such stockholder’s certificates of stock to the Register in Chancery, if such is required, may participate fully in all proceedings until it is finally determined that such stockholder is not entitled to appraisal rights under this section.

 

(i) The Court shall direct the payment of the fair value of the shares, together with interest, if any, by the surviving or resulting corporation to the stockholders entitled thereto. Payment shall be so made to each such stockholder, in the case of holders of uncertificated stock forthwith, and the case of holders of shares represented by certificates upon the surrender to the corporation of the certificates representing such stock. The Court’s decree may be enforced as other decrees in the Court of Chancery may be enforced, whether such surviving or resulting corporation be a corporation of this State or of any state.

 

     

 

 

(j) The costs of the proceeding may be determined by the Court and taxed upon the parties as the Court deems equitable in the circumstances. Upon application of a stockholder, the Court may order all or a portion of the expenses incurred by any stockholder in connection with the appraisal proceeding, including, without limitation, reasonable attorney’s fees and the fees and expenses of experts, to be charged pro rata against the value of all the shares entitled to an appraisal.

 

(k) From and after the effective date of the merger or consolidation, no stockholder who has demanded appraisal rights as provided in subsection (d) of this section shall be entitled to vote such stock for any purpose or to receive payment of dividends or other distributions on the stock (except dividends or other distributions payable to stockholders of record at a date which is prior to the effective date of the merger or consolidation); provided, however, that if no petition for an appraisal shall be filed within the time provided in subsection (e) of this section, or if such stockholder shall deliver to the surviving or resulting corporation a written withdrawal of such stockholder’s demand for an appraisal and an acceptance of the merger or consolidation, either within 60 days after the effective date of the merger or consolidation as provided in subsection (e) of this section or thereafter with the written approval of the corporation, then the right of such stockholder to an appraisal shall cease. Notwithstanding the foregoing, no appraisal proceeding in the Court of Chancery shall be dismissed as to any stockholder without the approval of the Court, and such approval may be conditioned upon such terms as the Court deems just; provided, however that this provision shall not affect the right of any stockholder who has not commenced an appraisal proceeding or joined that proceeding as a named party to withdraw such stockholder’s demand for appraisal and to accept the terms offered upon the merger or consolidation within 60 days after the effective date of the merger or consolidation, as set forth in subsection (e) of this section.

 

(l) The shares of the surviving or resulting corporation to which the shares of such objecting stockholders would have been converted had they assented to the merger or consolidation shall have the status of authorized and unissued shares of the surviving or resulting corporation.

 

     

 

 

Exhibit 13

 

April 26, 2021

 

CONFIDENTIAL

 

40 North Management LLC
9 West 57th Street, 47th Floor
New York, NY 10019
Attention: David S. Winter and David J. Millstone

 

Ladies and Gentlemen:

 

Reference is made to the letter agreement dated February 1, 2021 (the “NDA”) by and among 40 North Management LLC (“40 North”) and the entities listed following the signature of 40 North on the signature pages thereof (including 40 North and, collectively and individually, the “40 North Group” or “you”) and W. R. Grace & Co. (the “Company,” and collectively with you, the “Parties”), as amended. Capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the NDA.

 

Pursuant to Section 19 of the NDA, the Parties hereby desire and agree to amend the NDA, and the NDA is hereby amended as follows:

 

1.                  Standard Industries Holdings Inc.; Gibraltar Parent Holdings LLC; Gibraltar Midco Holdings LLC; Gibraltar Acquisition Holdings LLC; and Gibraltar Merger Sub Inc. shall be deemed to be included in the defined term “40 North Group” and in the defined term “you.”

 

2.                  The first sentence of Section 12 of the NDA is hereby amended to read as follows: “Pre-Approved Financing Sources” means the financing sources approved by the Company on February 1, 2021.

 

3.                  Section 23(a) of the NDA is hereby amended by replacing the words “(ii) in the case of the 40 North Group, the Pre-Approved Financing Sources to whom you have provided Confidential Information or Transaction Information, and (iii) only from and after such time as the Company consents in writing, which consent shall not be unreasonably withheld, conditioned or delayed, potential sources of debt or equity financing to you or your affiliates” with “(ii) in the case of the 40 North Group, potential sources of debt and/or equity financing to whom you have provided Confidential Information or Transaction Information”.

 

Sections 21, 22, 26 and 28 of the NDA are incorporated by reference in this amendment, mutatis mutandis.

 

Except as otherwise expressly set forth herein, the NDA will remain unchanged and continue in full force and effect. In the event of any conflict between the terms and conditions of the NDA and the terms and conditions of this amendment, the terms and conditions of this amendment will govern and control.

 

     

 

 

If you are in agreement with the foregoing, please so indicate by signing and returning one copy of this amendment, which will constitute our agreement with respect to the matters set forth herein.

 

  Very truly yours,
   
  W. R. GRACE & CO.
   
   
  By: /s/ Hudson La Force
  Name: Hudson La Force
  Title:    President and Chief Executive Officer

 

[Signature Page to NDA Amendment #2]

 

     

 

  

Acknowledged and agreed to as of the date first written above:

 

  40 NORTH MANAGEMENT LLC
   
   
  By: /s/ David S. Winter
    Name: David S. Winter
    Title: Principal
       
       
  By: /s/ David J. Millstone
    Name: David J. Millstone
    Title: Principal
       
       
  40 NORTH GP III LLC
   
   
  By: /s/ David S. Winter
    Name: David S. Winter
    Title: Principal
       
       
  By: /s/ David J. Millstone
    Name: David J. Millstone
    Title: Principal
       
       
  40 NORTH LATITUDE MASTER FUND LTD.
   
   
  By: /s/ David S. Winter
    Name: David S. Winter
    Title: Director
       
       
  By: /s/ David J. Millstone
    Name: David J. Millstone
    Title: Director

 

[Signature Page to NDA Amendment #2]

 

     

 

 

  40 NORTH LATITUDE FUND LP
   
   
  By 40 North GP III LLC, its General Partner
   
   
  By: /s/ David S. Winter
    Name: David S. Winter
    Title: Principal
       
       
  By: /s/ David J. Millstone
    Name: David J. Millstone
    Title: Principal

 

[Signature Page to NDA Amendment #2]