UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1) OR 13(E)(1)
OF THE SECURITIES EXCHANGE ACT OF 1934
CDK GLOBAL, INC.
(Name of Subject Company (Issuer))
CENTRAL MERGER SUB INC.
(Name of Filing Persons (Offeror))
a wholly owned subsidiary of
CENTRAL PARENT LLC
(Name of Filing Persons (Parent of Offeror))
Common Stock, Par Value $0.01 Per Share
(Title of Class of Securities)
12508E101
(Cusip Number of Class of Securities)
Dave Gregory
Doug Bayerd
Central Parent LLC
250 Vesey Street, 15th Floor
New York, New York 10281
212-417-7000
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications on Behalf of Filing Persons)
Copies to:
Leonard Kreynin
Cheryl Chan
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, NY 10017
212-450-4000

Check box if any part of the fee is offset as provided by Rule 0-11(a)(2) and identify the filing with which the offsetting fee was previously paid. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
Amount Previously Paid: None Filing Party: Not applicable
Form or Registration No.: Not applicable Date Filed: Not applicable

Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to which the statement relates:

third-party tender offer subject to Rule 14d-1.

issuer tender offer subject to Rule 13e-4.

going-private transaction subject to Rule 13e-3.

amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting the results of the tender offer.   ☐
If applicable, check the appropriate box(es) below to designate the appropriate rule provision

Rule 13e-4(i) (Cross-Border Issuer Tender Offer)

Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)

 
This Tender Offer Statement on Schedule TO (this “Schedule TO”) relates to the offer by Central Merger Sub Inc., a Delaware corporation (“Purchaser”), and Central Parent LLC, a Delaware limited liability company (“Parent”), to purchase any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (“CDK” and such shares, the “Shares”), at a price of $54.87 per Share, without interest, to the holder in cash, less any applicable withholding taxes, upon the terms and subject to the conditions described in the Offer to Purchase dated April 22, 2022 (together with any amendments or supplements thereto, the “Offer to Purchase”) and in the accompanying Letter of Transmittal (together with any amendments or supplements thereto and with the Offer to Purchase, the “Offer”), which are annexed to and filed with this Schedule TO as Exhibits (a)(1)(A) and (a)(1)(B), respectively. Purchaser is a wholly owned subsidiary of Parent. This Schedule TO is being filed on behalf of Parent and Purchaser. Unless otherwise indicated, references to sections in this Schedule TO are references to sections of the Offer to Purchase. A copy of the Agreement and Plan of Merger, dated as of April 7, 2022, by and among CDK, Parent and Purchaser is attached as Exhibit (d)(1) hereto and incorporated herein by reference with respect to Items 4 through 11 of this Schedule TO.
ITEM 1.
SUMMARY TERM SHEET.
The information set forth in the section of the Offer to Purchase titled “Summary Term Sheet” is incorporated herein by reference.
ITEM 2.
SUBJECT COMPANY INFORMATION.
(a)   The subject company and the issuer of the securities subject to the Offer is CDK Global, Inc. Its principal executive office is located at 1950 Hassell Road, Hoffman Estates, IL 60169, and its telephone number is (847) 397-1700.
(b)   This Schedule TO relates to Shares. According to CDK, as of the close of business on April 18, 2022, there were (i) 116,699,802 Shares issued and outstanding, (ii) 1,575,168 Shares subject to issuance pursuant to outstanding options to acquire Shares, (iii) 1,927,302 Shares subject to issuance pursuant to outstanding restricted stock units, (iv) 231,597 Shares subject to issuance pursuant to outstanding deferred stock units and (v) 1,175,916 Shares subject to issuance pursuant to performance stock units (assuming achievement of performance metrics at the maximum level).
(c)   The information concerning the principal market, in which the Shares are traded and certain high and low sales prices for the Shares in the principal market in which the Shares are traded set forth in Section 6 — “Price Range of Shares; Dividends” of the Offer to Purchase is incorporated herein by reference.
ITEM 3.
IDENTITY AND BACKGROUND OF FILING PERSON.
(a) – (c)   The filing companies of this Schedule TO are (i) Parent and (ii) Purchaser. The information set forth in Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties” and Schedule I of the Offer to Purchase is incorporated herein by reference.
ITEM 4.
TERMS OF THE TRANSACTION.
The information set forth in the Offer to Purchase is incorporated herein by reference.
ITEM 5.
PAST CONTACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS.
(a), (b)   The information set forth in Section 7 — “Certain Information Concerning the Company,” Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties,” Section 10 — “Background of the Offer; Past Contacts or Negotiations with the Company,” Section 11 — “The Merger Agreement; Other Agreements,” Section 12 — “Purpose of the Offer; Plans for the Company” and Schedule I of the Offer to Purchase is incorporated herein by reference.
 
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ITEM 6.
PURPOSES OF THE TRANSACTION AND PLANS OR PROPOSALS.
(a), (c)(1) – (7)   The information set forth in the sections of the Offer to Purchase titled “Summary Term Sheet” and “Introduction” and in Section 6 — “Price Range of Shares; Dividends,” Section 11 — “The Merger Agreement; Other Agreements” Section 12 — “Purpose of the Offer; Plans for the Company” and Section 13 — “Certain Effects of the Offer” of the Offer to Purchase is incorporated herein by reference.
ITEM 7.
SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a), (b) and (d)   The information set forth in the section of the Offer to Purchase titled “Summary Term Sheet” and in Section 9 — “Source and Amount of Funds” of the Offer to Purchase is incorporated herein by reference.
ITEM 8.
INTEREST IN SECURITIES OF THE SUBJECT COMPANY.
The information set forth in Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties,” Section 11 — “The Merger Agreement; Other Agreements,” Section 12 — “Purpose of the Offer; Plans for the Company” and Schedule I of the Offer to Purchase is incorporated herein by reference.
ITEM 9.
PERSONS/ASSETS RETAINED, EMPLOYED, COMPENSATED OR USED.
(a)   The information set forth in Section 3 — “Procedures for Tendering Shares,” Section 10 — “Background of the Offer; Past Contacts or Negotiations with the Company” and Section 17 — “Fees and Expenses” of the Offer to Purchase is incorporated herein by reference.
ITEM 10.
FINANCIAL STATEMENTS.
Not applicable. In accordance with the instructions to Item 10 of the Schedule TO, the financial statements are not considered material because:
(a)
the consideration offered consists solely of cash;
(b)
the Offer is not subject to any financing condition; and
(c)
the Offer is for all outstanding securities of the subject class.
ITEM 11.
ADDITIONAL INFORMATION.
(a)   The information set forth in Section 10 — “Background of the Offer; Past Contacts or Negotiations with the Company,” Section 11 — “The Merger Agreement; Other Agreements,” Section 12 — “Purpose of the Offer; Plans for the Company,” Section 13 — “Certain Effects of the Offer” and Section 16 — “Certain Legal Matters; Regulatory Approvals” of the Offer to Purchase is incorporated herein by reference.
(c)   The information set forth in the Offer to Purchase is incorporated herein by reference.
 
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ITEM 12.
EXHIBITS.
Index No.
(a)(1)(A)* Offer to Purchase, dated April 22, 2022.
(a)(1)(B)* Form of Letter of Transmittal.
(a)(1)(C)* Form of Notice of Guaranteed Delivery.
(a)(1)(D)* Form of Letter to Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.
(a)(1)(E)* Form of Letter to Clients for Use by Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees.
(a)(1)(F)* Form of Summary Advertisement, published April 22, 2022 in The New York Times.
(a)(5)(A)  Press Release of CDK, dated April 7, 2022 (incorporated by reference to Exhibit 99.1 to the Current Report on Form 8-K filed by CDK with the Securities and Exchange Commission on April 7, 2022).
(a)(5)(B)  Press Release of Brookfield Business Partners L.P., dated April 7, 2022 (incorporated by reference to the Tender Offer Statement on Schedule TO-C of Parent and Purchaser filed by Brookfield Business Partners L.P. with the Securities and Exchange Commission on April 7, 2022).
(a)(5)(C)  LinkedIn Post (incorporated by reference to the Tender Offer Statement on Schedule TO-C of Parent and Purchaser filed by Brookfield Business Partners L.P. with the Securities and Exchange Commission on April 8, 2022).
(a)(5)(D)  LinkedIn Post (incorporated by reference to the Tender Offer Statement on Schedule TO-C of Parent and Purchaser filed by Brookfield Business Partners L.P. with the Securities and Exchange Commission on April 8, 2022).
(b)(1)* Commitment Letter, dated as of April 12, 2022, among Central Parent LLC and certain other parties.
(d)(1)  Agreement and Plan of Merger, dated April 7, 2022, by and among CDK, Parent and Purchaser (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed by CDK with the Securities and Exchange Commission on April 8, 2022).
(d)(2)* Confidentiality Agreement, dated as of January 25, 2022, between CDK and Brookfield Capital Partners LLC.
(d)(3)* Equity Commitment Letter, dated April 7, 2022, among Brookfield Asset Management, Inc., Brookfield Capital Partners VI L.P. and Central Parent LLC.
(d)(4)* Limited Guarantee, dated April 7, 2022, among Brookfield Asset Management, Inc., Brookfield Capital Partners VI L.P. and CDK.
(g)  Not applicable.
(h)  Not applicable.
107* Filing fee table.
*
Filed herewith.
ITEM 13.
INFORMATION REQUIRED BY SCHEDULE 13E-3.
Not applicable.
 
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SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
Dated: April 22, 2022
CENTRAL MERGER SUB INC.
By:
/s/ David Gregory
Name: David Gregory
Title: Managing Partner
CENTRAL PARENT LLC
By:
/s/ David Gregory
Name: David Gregory
Title: Managing Partner
 

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 Exhibit (a)(1)(A)
Offer to Purchase for Cash
Any and All Issued and Outstanding Shares of Common Stock
of
CDK GLOBAL, INC.
at
$54.87 Per Share
by
CENTRAL MERGER SUB INC.
a wholly-owned subsidiary of
CENTRAL PARENT LLC
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
ONE MINUTE FOLLOWING 11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME,
ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
Central Merger Sub Inc. (“Purchaser” or “we”), a Delaware corporation and a wholly-owned subsidiary of Central Parent LLC (“Parent”), a Delaware limited liability company, is offering to purchase, subject to certain conditions, including the satisfaction of the Minimum Tender Condition (as defined below), any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (“CDK Global” or the “Company” and such shares, the “Shares”), at a price of $54.87 per Share, without interest (the “Offer Price”), to the seller in cash, less any applicable withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase (the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” and which, together with this Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”).
We are making the Offer pursuant to the Agreement and Plan of Merger, dated as of April 7, 2022 (as it may be amended from time to time, the “Merger Agreement”), by and among the Company, Parent and Purchaser. The Merger Agreement provides, among other things, that, as soon as practicable following the consummation of the Offer, Purchaser will be merged with and into the Company (the “Merger”) without a vote of the stockholders of the Company to adopt the Merger Agreement and consummate the Merger in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (as amended, the “DGCL”), with the Company continuing as the surviving corporation (the “surviving corporation”) in the Merger and thereby becoming a wholly-owned subsidiary of Parent.
As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time, (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL) will be cancelled and automatically converted into the right to receive the Offer Price in cash (without interest and less any applicable withholding taxes), which we refer to as the “Merger Consideration.” Shares described in clauses (i), (ii) and (iii) above, which we refer to as “Excluded Shares,” will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv), which we refer to as “Dissenting Shares,” will entitle their holders only to the rights granted to them under Section 262 of the DGCL. Following the Merger, the Company will cease to be a publicly traded company.
Under no circumstances will interest be paid on the Offer Price for the Shares, regardless of any extension of the Offer or any delay in making payment for the Shares.
The board of directors of the Company (the “Company Board”) has declared it advisable to enter into the Merger Agreement and approved the execution, delivery and performance of the Merger Agreement in accordance with its terms and the consummation of the Offer, the Merger and the other transactions contemplated by the
 

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Merger Agreement in accordance with the DGCL and resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares in the Offer.
The Offer is not subject to any financing condition. The Offer is conditioned upon, among other things, the satisfaction of the Minimum Tender Condition, and the satisfaction or waiver by Parent or Purchaser of the Inside Date Condition and the Antitrust Approvals Condition (each as defined below and to the extent waiver is permitted under applicable law). The “Minimum Tender Condition” requires that the number of Shares validly tendered (and not properly withdrawn) prior to the Offer Expiration Time (as defined below) but excluding shares tendered pursuant to guaranteed delivery procedures that have not yet been “received,” as such terms are defined by Section 251(h) of the DGCL, together with any Shares owned by Parent, Purchaser or any of their affiliates, represents a majority of the outstanding Shares as of the consummation of the Offer at one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022 (the “Offer Expiration Time,” unless Purchaser shall have extended the period during which the Offer is open in accordance with the Merger Agreement, in which event “Offer Expiration Time” will mean the latest time and date at which the Offer, as so extended by Purchaser, will expire). The “Inside Date Condition” requires that, unless such condition is waived by Parent and Purchaser, the Offer Expiration Time shall not occur prior to July 1, 2022. If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived (to the extent waiver is permitted under applicable law), Purchaser shall extend the Offer until 5:00 p.m., New York City Time, on the first business day after July 1, 2022. The “Antitrust Approvals Condition” requires that any waiting period (including all extensions thereof) applicable to the consummation of the Offer and the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, will have expired or been terminated and any applicable approvals or consents required under the Competition Act (Canada), R.S.C., 1985, c. C-34 will have been obtained. The Offer is also subject to other conditions described in Section 15 — “Conditions of the Offer.”
A summary of the principal terms of the Offer appears under the heading “Summary Term Sheet.” You should read this entire Offer to Purchase, the Letter of Transmittal and the other documents to which this Offer to Purchase refers carefully before deciding whether to tender your Shares in the Offer.
April 22, 2022
 

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IMPORTANT
If you desire to tender all or any portion of your Shares to Purchaser pursuant to the Offer, you should either (i) complete and sign the Letter of Transmittal for the Offer, which is enclosed with this Offer to Purchase, in accordance with the instructions contained in the Letter of Transmittal, with any required signature guarantees if the Letter of Transmittal so requires, and mail or deliver the Letter of Transmittal and any other required documents to Computershare Trust Company, N.A., in its capacity as depositary for the Offer (the “Depositary”), and deliver the certificates for your Shares to the Depositary along with the Letter of Transmittal, or tender your Shares by book-entry transfer by following the procedures described in Section 3 — “Procedures for Tendering Shares,” or visit the Offer website at www.brookcashtender.com and follow the instructions on the site, in each case prior to the Offer Expiration Time, or (ii) request that your broker, dealer, commercial bank, trust company or other nominee effect the transaction for you. If you hold Shares registered in the name of a broker, dealer, commercial bank, trust company or other nominee, you must contact that institution in order to tender your Shares pursuant to the Offer. If you are a record holder but your stock certificate is not available or you cannot deliver it to the Depositary before the Offer Expiration Time, you may be able to tender your Shares using the enclosed Notice of Guaranteed Delivery (see Section 3 — “Procedures for Tendering Shares” for further details).
* * * * *
Questions and requests for assistance regarding the Offer or any of the terms thereof may be directed to MacKenzie Partners, Inc., as information agent for the Offer (the “Information Agent”), at the address and telephone number set forth for the Information Agent below and on the back cover of this Offer to Purchase. Additional copies of this Offer to Purchase, the related Letter of Transmittal, the Notice of Guaranteed Delivery and other materials related to the Offer may also be obtained for free from the Information Agent. Additionally, copies of this Offer to Purchase, the related Letter of Transmittal, the Notice of Guaranteed Delivery and any other materials related to the Offer may be obtained at the website maintained by the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance.
This Offer to Purchase and the Letter of Transmittal contain important information, and you should read both carefully and in their entirety before making a decision with respect to the Offer.
This transaction has not been approved or disapproved by the SEC or any state securities commission, nor has the SEC or any state securities commission passed upon the fairness or merits of such transaction or upon the accuracy or adequacy of the information contained in this Offer to Purchase or the Letter of Transmittal. Any representation to the contrary is unlawful.
The Information Agent for the Offer is:
MacKenzie Partners, Inc.
105 Madison Avenue
New York, New York 10016
(212) 929-5500
Call Toll-Free (800) 322-2885
Fax: (646) 439-9201
Email: tenderoffer@mackenziepartners.com
 

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SUMMARY TERM SHEET
The following are some key Offer terms and questions that you, as a stockholder of the Company, may have and answers to those questions. This summary term sheet highlights selected information from this Offer to Purchase and may not contain all of the information that is important to you and is qualified in its entirety by the more detailed descriptions and explanations contained in this Offer to Purchase, the Letter of Transmittal and other related materials. To better understand the Offer and for a complete description of the legal terms of the Offer, you should read this Offer to Purchase, the Letter of Transmittal and other related materials carefully and in their entirety. The information concerning the Company contained herein and elsewhere in the Offer to Purchase has been provided to Parent and Purchaser by the Company or has been taken from, or is based upon, publicly available documents or records of the Company on file with the U.S. Securities and Exchange Commission (the “SEC”) or other public sources at the time of the Offer. Parent and Purchaser have not independently verified the accuracy and completeness of such information. Questions or requests for assistance may be directed to the Information Agent at the address and telephone numbers set forth for the Information Agent on the back cover of this Offer to Purchase. Unless otherwise indicated in this Offer to Purchase or the context otherwise requires, all references in this Offer to Purchase to “we,” “our” or “us” refer to Purchaser.
Securities Sought:
Subject to certain conditions, including the satisfaction of the Minimum Tender Condition (as described below) any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of the Company (the “Shares”). For purposes of determining whether the Minimum Tender Condition has been satisfied, Shares tendered in the Offer pursuant to guaranteed delivery procedures that have not yet been “received”, as such terms are defined by Section 251(h) of the DGCL, prior to the Offer Expiration Time (as defined below) are excluded. See Section 1 — “Terms of the Offer.”
Price Offered Per Share:
$54.87 per Share, without interest (the “Offer Price”), to the seller in cash, less any applicable withholding taxes. See Section 1 — “Terms of the Offer.”
Offer Expiration Time:
One minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022 (as it may be extended in accordance with the terms of the Merger Agreement, the “Offer Expiration Time”). See Section 1 — “Terms of the Offer.”
Withdrawal Rights:
You can withdraw your Shares at any time prior to one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022, unless the Offer is extended, in which case you can withdraw your Shares by the then extended expiration time and date. You can also withdraw your Shares at any time after Tuesday, June 21, 2022, which is the 60th day after the date of commencement of the Offer, unless such Shares have already been accepted for payment by Purchaser pursuant to the Offer and not validly withdrawn. See Section 4 — “Withdrawal Rights.”
Purchaser:
Central Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Parent, a Delaware limited liability company. See Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties.”
Who is offering to buy my Shares?
Central Merger Sub Inc., or Purchaser or “we”, a Delaware corporation and a wholly-owned subsidiary of Central Parent LLC (“Parent”), a Delaware limited liability company, is offering to purchase any and all
 
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of the issued and outstanding Shares upon the terms and subject to the conditions contained in this Offer to Purchase. Purchaser was formed for the sole purpose of making the Offer and completing the process by which Purchaser will be merged with and into the Company. See “Introduction” and Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties.”
What securities are you offering to purchase?
We are making an offer to purchase any and all of the issued and outstanding Shares on the terms and subject to the conditions set forth in this Offer to Purchase and the Letter of Transmittal. See “Introduction” and Section 1 — “Terms of the Offer.”
How much are you offering to pay and what is the form of payment?
We are offering to pay $54.87 per Share, without interest, to the seller in cash, less any applicable withholding taxes, upon the terms and subject to the conditions contained in this Offer to Purchase and the Letter of Transmittal. See “Introduction,” and Section 1 — “Terms of the Offer.”
Will I have to pay any fees or commissions?
If you are the record owner of your Shares and you tender your Shares to us in the Offer, you will not have to pay brokerage fees, commissions or similar expenses. If you own your Shares through a broker or other nominee and your broker or other nominee tenders your Shares on your behalf, your broker or nominee may charge you a fee for doing so. You should consult your broker or nominee to determine whether any charges will apply. See “Introduction,” and Section 1 — “Terms of the Offer.”
Why are you making the Offer?
We are making the Offer because we and Parent want to acquire the entire equity interest in the Company. The Offer, as the first step in the acquisition of the Company, is intended to facilitate the acquisition of any and all issued and outstanding Shares. We are making the Offer pursuant to the Agreement and Plan of Merger, dated as of April 7, 2022 (as it may be amended from time to time, the “Merger Agreement”), by and among the Company, Parent and Purchaser. The Merger Agreement provides, among other things, that, as soon as practicable following the consummation of the Offer, Purchaser will be merged with and into the Company (the “Merger”) in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (as amended, the “DGCL”), with the Company continuing as the surviving corporation in the Merger and thereby becoming a wholly-owned subsidiary of Parent. Following the Merger, the Company will cease to be a publicly traded company. See “Introduction” and Section 12 — “Purpose of the Offer; Plans for the Company.”
Is there an agreement governing the Offer?
Yes. The Company, Parent and Purchaser have entered into the Merger Agreement, which provides, among other things, for the terms and conditions of the Offer and the Merger. See “Introduction,” and Section 11 — “The Merger Agreement; Other Agreements.”
What does the Company Board think of the Offer?
The Company Board has unanimously declared it advisable to enter into the Merger Agreement and approved the execution, delivery and performance of the Merger Agreement in accordance with its terms and the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement in accordance with the DGCL and resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares in the Offer.
See “Introduction,” Section 10 — “Background of the Offer; Past Contacts or Negotiations with the Company” and Section 11 — “The Merger Agreement; Other Agreements.” A more complete description of the reasons for the Company Board’s approval of the Offer and the Merger is set forth in a Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”) that is being mailed to all the Company stockholders together with this Offer to Purchase.
 
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What are the most significant conditions to the Offer?
The Offer is conditioned upon, among other things, the satisfaction or waiver (to the extent waiver is permitted under applicable law) by Parent or Purchaser of the following conditions (provided that the Minimum Tender Condition and the Termination Condition (as defined below) may not be waived except, in the case of the Minimum Tender Condition, with the Company’s prior written consent):

the number of Shares validly tendered (and not properly withdrawn) prior to the Offer Expiration Time but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been “received,” as such terms are defined by Section 251(h) of the DGCL, together with any Shares owned by Parent, Purchaser or any of their affiliates, represents a majority of the outstanding Shares as of the consummation of the Offer at the Offer Expiration Time (the “Minimum Tender Condition”);

the expiration or termination of any waiting period (and any extension thereof) applicable to the consummation of the Offer and the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and the receipt of any applicable consents or approvals under the Competition Act (Canada), R.S.C., 1985, c. C-34 (the “Antitrust Approvals Condition”); and

the Offer Expiration Time not occurring prior to Friday, July 1, 2022 (the “Inside Date Condition”). If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived (to the extent waiver is permitted under applicable law), Purchaser shall extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022.
Subject to the applicable rules and regulations of the SEC and the terms of the Merger Agreement, any of the conditions to the Offer may be waived by Parent and Purchaser in whole or in part, at any time and from time to time, in their sole discretion, except that Parent and Purchaser are not permitted to waive the Minimum Tender Condition or the condition that the Merger Agreement has not been terminated in accordance with its terms except, in the case of the Minimum Tender Condition, with the prior written consent of the Company. See Section 1 — “Terms of the Offer,” Section 11 — “The Merger Agreement; Other Agreements — Terms and Conditions of the Offer” and Section 15 — “Conditions of the Offer.”
Is the Offer subject to any financing condition?
No. There is no financing condition to the Offer. See “Introduction,” Section 1 — “Terms of the Offer” and Section 9 — “Source and Amount of Funds.”
Do you have the financial resources to pay for all of the Shares that you are offering to purchase in the Offer?
Yes. We estimate that the maximum amount of funds needed to (i) complete the Offer, the Merger and the transactions contemplated by the Merger Agreement, including the funds needed to purchase all Shares tendered in the Offer and to pay the Company stockholders whose Shares are converted into the right to receive a cash amount equal to Offer Price in the Merger, (ii) pay for fees and expenses incurred by Parent related to the Offer and the Merger, (iii) pay for the amounts in respect of outstanding in-the-money Company options and other equity awards and (iv) refinance certain existing indebtedness of the Company and its subsidiaries will be approximately $8,700 million.
Parent and Purchaser expect to fund such cash requirements from (a)(i) a commitment from certain lenders to provide a $4,350 million first lien senior secured term loan facility (the “First Lien Term Loan Facility”) and (ii) a commitment from certain lenders to provide a $650 million first lien senior secured revolving credit facility, (b) a commitment from certain lenders to provide a $865 million second lien senior secured term loan facility (the “Second Lien Term Loan Facility” and, together with the First Lien Term Loan Facility, the “Term Loan Facilities”) contemplated (in the case of the financing referred to in this clause (b) and the foregoing clause (a)) by an amended and restated debt commitment letter, dated April 12, 2022, that was originally entered into in connection with the execution of the Merger Agreement (the “Debt Commitment Letter”) for the purpose of financing the transactions and paying transaction-related fees, commissions and expenses and repaying certain of the Company’s and its subsidiaries’ existing indebtedness,
 
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among other things, and (c) an equity investment contemplated pursuant to an equity commitment letter, dated April 7, 2022, that Parent entered into with certain investors in connection with the execution of the Merger Agreement (the “Equity Commitment Letter” and, together with the Debt Commitment Letter, the “Commitment Letters”) which provides for up to $3,508 million in aggregate of equity financing. Funding of the Term Loan Facilities contemplated by the Debt Commitment Letter and the equity financing contemplated by the Equity Commitment Letter is subject to the satisfaction of various customary conditions. See Section 9 — “Source and Amount of Funds.”
Is your financial condition relevant to my decision to tender in the Offer?
No, we do not think that the financial condition of Purchaser, Parent or their respective affiliates is relevant to your decision whether to tender Shares and accept the Offer because:

the Offer is being made for any and all issued and outstanding Shares solely for cash;

the consummation of the Offer (or the Merger) is not subject to any financing condition; and

if Purchaser consummates the Offer, Purchaser will acquire all remaining Shares for the same cash price in the Merger (i.e., the Offer Price).
See Section 9 — “Source and Amount of Funds.”
Can the Offer be extended and under what circumstances can or will the Offer be extended?
Yes, we may extend the Offer beyond its initial Offer Expiration Time, but in no event will we be required or permitted to extend the Offer beyond October 7, 2022. We have agreed in the Merger Agreement that Purchaser will extend the Offer (i) for any minimum period required by any applicable law or any rule, regulation, interpretation or position of the SEC or its staff or of NASDAQ or its staff, applicable to the Offer, the Schedule 14D-9 or the Offer documents; (ii) if, as of the then-scheduled Offer Expiration Time, the Company has delivered written notice to Parent in accordance with the Merger Agreement that the Company intends to effect an Adverse Recommendation Change (as defined below) and/or terminate the Merger Agreement due to its receipt of a Superior Proposal (as defined below) or the occurrence of an intervening event (as defined below); (iii) if, at the then-scheduled Offer Expiration Time, the Company brings or will have brought any legal action to enforce specifically the performance of the terms and provisions of the Merger Agreement by Parent or Purchaser; and (iv) if at the-then scheduled Offer Expiration Time, any of the Offer conditions (other than those conditions that by their terms are to be satisfied at the Offer closing) has not been satisfied or waived by Parent and Purchaser; provided, that if at the otherwise scheduled Expiration Time, all of the Offer conditions (other than the Minimum Tender Condition and the other Offer conditions that by their terms are to be satisfied at the Offer closing) shall have been satisfied or waived (to the extent waiver is permitted under the Merger Agreement and applicable law), Purchaser may, and Purchaser shall upon receipt of the Company’s written request, extend the Offer for up to four occasions, in the aggregate, in consecutive periods of five Business Days each (or for such other duration as the parties may agree). If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived, Purchaser shall extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022. See “Introduction,” Section 1 — “Terms of the Offer” and Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — The Offer” for more details on our ability to extend the Offer.
How will I be notified if the Offer is extended?
If we extend the Offer, we will inform and Computershare Trust Company, N.A. (the “Depositary”) of that fact and will make a public announcement of the extension not later than 9:00 a.m., New York City time, on the next business day after the day of the previously scheduled Offer Expiration Time. See Section 1 — “Terms of the Offer.”
Will there be a subsequent offering period?
No. Pursuant to Section 251(h) of the DGCL, we expect the Merger to occur as promptly as practicable following the consummation of the Offer without a subsequent offering period.
 
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How long do I have to decide whether to tender in the Offer?
You will have until the Offer Expiration Time to decide whether to tender your Shares in the Offer, unless we extend the Offer pursuant to the terms of the Merger Agreement or the Offer is earlier terminated. If you cannot deliver everything required to make a valid tender to the Depositary prior to such time, you may be able to use a guaranteed delivery procedure, which is described in Section 3 — “Procedures for Tendering Shares.” Shares tendered pursuant to guaranteed delivery procedures but not yet delivered in satisfaction of such guarantee will be excluded in calculating whether the Minimum Tender Condition has been satisfied. You are encouraged to deliver your Shares and other required documents to make a valid tender by the Offer Expiration Time. Please give your broker, dealer, commercial bank, trust company or other nominee instructions in sufficient time to permit such nominee to tender your Shares by the Offer Expiration Time. See Section 2 — “Acceptance for Payment and Payment of Shares” and Section 3 — “Procedures for Tendering Shares.”
How do I tender my Shares?
If you hold your Shares directly as the registered owner, you can (i) tender your Shares in the Offer by delivering the certificates representing your Shares, together with a completed and signed Letter of Transmittal, with any required signature guarantees, and any other documents required by the Letter of Transmittal, to the Depositary (ii) tender your Shares by following the procedure for book-entry transfer set forth in Section 3 of this Offer to Purchase, no later than the Offer Expiration Time or (iii) visit the Offer website at www.brookcashtender.com and follow the instructions on the site. If you are the registered owner but your stock certificate is not available or you cannot deliver it to the Depositary before the Offer expires, you may have a limited amount of additional time by having a broker, a bank or other fiduciary that is an Eligible Institution (as defined below) guarantee that the missing items will be “received” ​(as defined in Section 251(h) of the DGCL) by the Depositary within two NASDAQ trading days using the enclosed Notice of Guaranteed Delivery. For the tender to be valid, however, the Depositary must receive the missing items within that two trading-day period, and for the tender to be counted toward satisfaction of the Minimum Tender Condition, the Shares must be “received” ​(as defined in Section 251(h) of the DGCL) by the Depositary prior to the Offer Expiration Time.
If you hold your Shares in street name through a broker, dealer, commercial bank, trust company or other nominee, you must contact the institution that holds your Shares and give instructions that your Shares be tendered. You should contact the institution that holds your Shares for more details. See “Introduction” and Section 3 — “Procedures for Tendering Shares.”
Until what time may I withdraw previously tendered Shares?
Shares tendered pursuant to the Offer may be withdrawn at any time prior to the Offer Expiration Time. Thereafter, tenders of Shares are irrevocable, except that, pursuant to Section 14(d)(5) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), they may also be withdrawn after Tuesday, June 21, 2022, which is the 60th day after the date of the commencement of the Offer, unless such Shares have already been accepted for payment by Purchaser pursuant to the Offer and not validly withdrawn. If you tendered your Shares by giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct that nominee to arrange for the withdrawal of your Shares. See “Introduction” and Section 4 — “Withdrawal Rights.”
How do I withdraw previously tendered Shares?
To withdraw any of your previously tendered Shares, you must deliver a written (or, with respect to Eligible Institutions (as defined below), a facsimile transmission) notice of withdrawal, with the required information to the Depositary while you still have the right to withdraw such Shares. If you tendered your Shares by giving instructions to a broker, dealer, commercial bank, trust company or other nominee, you must instruct that nominee to arrange for the withdrawal of your Shares. See “Introduction” and Section 4 — “Withdrawal Rights.”
 
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If I tender my Shares, when and how will I get paid?
If the conditions to the Offer as set forth in Section 15 — “Conditions of the Offer” are satisfied or waived (to the extent waiver is permitted under applicable law) and Purchaser accepts your Shares validly tendered in the Offer for payment, we will pay you the Offer Price, which is an amount equal to the number of Shares you validly tendered in the Offer multiplied by $54.87 in cash, without interest, less any applicable withholding taxes, promptly (and in any event within three business days) following the Acceptance Time (as defined below). See Section 2 — “Acceptance for Payment and Payment of Shares.”
If I decide not to tender, how will the Offer affect my Shares?
If you decide not to tender your Shares pursuant to the Offer and the Merger occurs as described herein, you will receive as a result of the Merger the right to receive the same amount of cash per Share as if you had tendered your Shares pursuant to the Offer, without interest and less any applicable withholding taxes.
Subject to certain conditions, if we purchase Shares in the Offer, we are obligated under the Merger Agreement to cause the Merger to occur.
Because the Merger will be governed by Section 251(h) of the DGCL, assuming the requirements of Section 251(h) of the DGCL are met, no stockholder vote by the stockholders of the Company will be required in connection with the consummation of the Merger. We do not expect there to be significant time between the consummation of the Offer and the consummation of the Merger. See Section 13 — “Certain Effects of the Offer.”
Will the Offer be followed by a Merger if all the Shares are not tendered?
If the Offer is consummated and Purchaser acquires a majority of the outstanding Shares, then, in accordance with the terms of the Merger Agreement, the Company will complete the Merger without a vote of the stockholders to adopt the Merger Agreement and consummate the Merger pursuant to Section 251(h) of the DGCL. Pursuant to the Merger Agreement, if the Minimum Tender Condition is not satisfied, Purchaser is not required to pay for and may delay the acceptance for payment of any Shares tendered pursuant to the Merger Agreement.
Pursuant to the Merger Agreement, as soon as practicable following the consummation of the Offer, Purchaser will be merged with and into the Company, with the Company continuing as the surviving corporation in the Merger and thereby becoming a wholly-owned subsidiary of Parent. At the effective time of the Merger (the “effective time”), each Share issued and outstanding immediately prior to the effective time of the Merger (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly owned subsidiary of the Company, in each case immediately prior to the effective time, (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL), will be cancelled and automatically converted into the right to receive the Offer Price in cash (without interest and less any applicable withholding taxes), which we refer to as the “Merger Consideration.” Shares described in clauses (i), (ii) and (iii) above, which we refer to as “Excluded Shares,” will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv), which we refer to as “Dissenting Shares,” will entitle their holders only to the rights granted to them under Section 262 of the DGCL. Following the Merger, the Company will cease to be a publicly traded company. See “Introduction” and Section 11 — “The Merger Agreement; Other Agreements.”
Upon the successful consummation of the Offer, will the Company continue as a public company?
If the Offer is consummated, Purchaser will complete the Merger as soon as practicable after the consummation of the Offer, subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement. As a result, the Shares will no longer meet the requirements for continued listing on NASDAQ because the only stockholder will be Parent. Immediately following the consummation of the Merger, Parent intends to cause the Company to delist the Shares from NASDAQ. In addition, Parent intends
 
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and will cause the Company to terminate the registration of the Shares under the Exchange Act as soon after consummation of the Merger as the requirements for termination of registration are met. See Section 12 — “Purpose of the Offer; Plans for the Company” and Section 13 — “Certain Effects of the Offer.”
Are appraisal rights available in either the Offer or the Merger?
No appraisal rights will be available to you in connection with the Offer. However, if we accept Shares in the Offer and the Merger is completed, stockholders will be entitled to appraisal rights in connection with the Merger with respect to Shares not tendered in the Offer if such stockholders properly perfect their right to seek appraisal under the DGCL. See Section 16 — “Certain Legal Matters; Regulatory Approvals — Dissenters’ Rights.”
What is the market value of my Shares as of a recent date?
The Offer Price of $54.87 per share represents a premium of approximately 30% to the unaffected closing price of the Company’s stock on February 18, 2022, the last full trading day prior to market speculation regarding a potential sale of the Company. On April 21, 2022, the last full trading day before Purchaser commenced the Offer, the closing price of the Shares reported on NASDAQ was $54.44 per Share.
We advise you to obtain a recent quotation for the Shares in deciding whether to tender your Shares in the Offer. See Section 6 — “Price Range of Shares; Dividends.”
What will happen to my stock options in the Offer?
The Offer is made only for Shares and is not being made for any outstanding options to acquire Shares (each, an “Option”). Pursuant to the Merger Agreement, upon consummation of the Merger, each Option outstanding will, whether vested or unvested, be cancelled and converted into the right to receive an amount in cash equal to the product of (i) the amount by which the Offer Price exceeds the applicable exercise price per Option multiplied by (ii) the number of Shares subject to such Option, less any applicable withholding taxes; provided, that any Option with an exercise price equal to or greater than the Offer Price will be cancelled for no consideration. See Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — Treatment and Payment of Company Equity Awards.”
What will happen to my restricted stock units in the Offer?
The Offer is made only for Shares and is not being made for any outstanding Company restricted stock unit awards that are subject to vesting conditions based solely on continued employment or service or deferred stock unit awards (collectively, “Restricted Stock Units”). Pursuant to the Merger Agreement, upon consummation of the Merger, each Restricted Stock Unit will become fully vested and will be cancelled and converted into the right to receive an amount in cash equal to the product of the Offer Price and the number of Shares subject to such Restricted Stock Unit, less any applicable withholding taxes. See Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — Treatment and Payment of Equity Awards.”
What will happen to my performance stock units in the Offer?
The Offer is made only for Shares and is not being made for any outstanding Company restricted stock unit awards that are subject to performance-based restrictions (“Performance Stock Unit”). Pursuant to the Merger Agreement, upon consummation of the Merger, each Performance Stock Unit will be cancelled and converted into the right to receive an amount in cash equal to the product of the Offer Price and the number of Shares subject to such Performance Stock Unit immediately before the effective time (assuming that all applicable performance metrics for performance periods that have not been completed as of immediately before the effective time had been achieved (on a cumulative basis and not on an individual performance year basis) at the greater of target level and actual performance measured through the effective time, with the financial performance metrics in respect of any fiscal year commencing after the 2022 fiscal year being deemed achieved at the target level), less any applicable withholding taxes. See Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — Treatment and Payment of Company Equity Awards.”
 
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What are the United States federal income tax consequences of the Offer and the Merger?
In general, the receipt of cash by you in exchange for your Shares pursuant to the Offer or the Merger will be a taxable transaction for United States federal income tax purposes. You are urged to consult your tax advisor about the particular tax consequences to you of tendering your Shares in the Offer or exchanging your Shares in the Merger in light of your particular circumstances (including the application and effect of any federal, state, local or non-U.S. laws). See Section 5 — “Certain United States Federal Income Tax Consequences” for a discussion of certain United States federal income tax consequences of tendering Shares pursuant to the Offer or exchanging Shares in the Merger.
Who should I talk to if I have additional questions about the Offer?
You can call MacKenzie Partners, Inc., the Information Agent, toll free, at (800) 322-2885 (or (212) 929-5500 (collect) if you are located outside of the United States or Canada). See the back cover of this Offer to Purchase.
 
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INTRODUCTION
To the Holders of CDK Global, Inc. Shares of Common Stock:
Central Merger Sub Inc. (“Purchaser” or “we”), a Delaware corporation and a wholly-owned subsidiary of Central Parent LLC (“Parent”), a Delaware limited liability company, is offering to purchase, subject to certain conditions, including the satisfaction of the Minimum Tender Condition (as defined below), any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (the “Company” and such shares, the “Shares”), at a price of $54.87 per Share, without interest (the “Offer Price”), to the seller in cash, less any applicable withholding taxes, upon the terms and subject to the conditions set forth in this Offer to Purchase (the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” and which, together with this Offer to Purchase and other related materials, as each may be amended or supplemented from time to time, constitutes the “Offer”). The Offer and withdrawal rights will expire at one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022 (the “Offer Expiration Time,” unless the Offer is extended, in which event the term “Offer Expiration Time” means the latest time and date on which the Offer, so extended, expires), unless the Offer is earlier terminated. See Section 1 — “Terms of the Offer.”
Tendering stockholders who are record owners of their Shares and tender directly to Computershare Trust Company, N.A., as depositary for the Offer (the “Depositary”), will not be obligated to pay brokerage fees or commissions or, except as otherwise provided in Instruction 6 of the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Purchaser pursuant to the Offer. Stockholders who hold their Shares through a broker or nominee should consult such institution as to whether it charges any service fees. Parent or Purchaser will pay all charges and expenses of the Depositary, and Mackenzie Partners, Inc., as information agent for the Offer (the “Information Agent”), incurred in connection with the Offer. See Section 17 — “Fees and Expenses.”
The Offer is not subject to any financing condition. The Offer is conditioned upon, among other things, the satisfaction of the Minimum Tender Condition and the waiver by Parent or Purchaser (to the extent waiver is permitted under applicable law) or the satisfaction of the Inside Date Condition and the Antitrust Approvals Condition (each as defined below). The “Minimum Tender Condition” requires that the number of Shares validly tendered (and not properly withdrawn) prior to the Offer Expiration Time but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been “received” ​(as defined in Section 251(h) of the General Corporation Law of the State of Delaware (the “DGCL”), together with any Shares owned by Parent, Purchaser or any of their affiliates, represents a majority of the outstanding Shares as of the consummation of the Offer at the Offer Expiration Time. The “Inside Date Condition” requires that, unless such condition is waived by Parent and Purchaser, the Offer not expire prior to Friday, July 1, 2022. If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived, Purchaser shall extend the offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022. The “Antitrust Approvals Condition” requires that any waiting period (and any extension thereof) applicable to the consummation of the Offer and the Merger (as defined below) under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, (the “HSR Act”) will have expired or been terminated and any applicable consents or approvals under the Competition Act (Canada), R.S.C., 1985, C-34 (the “Competition Act”) will have been obtained. The Offer is also subject to other conditions described in Section 15 — “Conditions of the Offer.”
Subject to the applicable rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and the terms of the Merger Agreement, any of the conditions to the Offer may be waived by Parent and Purchaser in whole or in part, at any time and from time to time, in their sole discretion, except that Parent and Purchaser are not permitted to waive the Minimum Tender Condition or the condition that the Merger Agreement has not been terminated in accordance with its terms (the “Termination Condition”) except, in the case of the Minimum Tender Condition, with the prior written consent of the Company. See Section 1 — “Terms of the Offer” and Section 15 — “Conditions of the Offer.”
We are making the Offer pursuant to the Agreement and Plan of Merger, dated as of April 7, 2022 (as it may be amended from time to time, the “Merger Agreement”), by and among the Company, Parent and Purchaser. The Merger Agreement provides, among other things, that, as soon as practicable following the
 
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consummation of the Offer, Purchaser will be merged with and into the Company (the “Merger”) under the DGCL, with the Company continuing as the surviving corporation (the “surviving corporation”) in the Merger and thereby becoming a wholly-owned subsidiary of Parent. See “Introduction” and Section 1 — “Terms of the Offer.”
Section 251(h) of the DGCL provides that, subject to certain statutory requirements, if following consummation of a tender offer for a publicly listed Delaware corporation, the stock irrevocably accepted for purchase pursuant to such tender offer and “received” ​(as defined in Section 251(h) of the DGCL) by the depositary prior to the expiration of such tender offer, plus the stock otherwise owned by the consummating corporation or its affiliates equals at least the percentage of the stock, and of each class or series thereof, of the target corporation that would otherwise be required to adopt a merger agreement under the DGCL and the target corporation’s certificate of incorporation, the corporation consummating such tender offer merges with or into such target corporation, and each outstanding share of each class or series of stock (other than “excluded stock” as defined in Section 251(h) of the DGCL) that is the subject of such tender offer and is not irrevocably accepted for purchase in the offer is to be converted in such merger into the right to receive the same amount and kind of consideration to be paid for shares of such class or series of stock irrevocably accepted for purchase in such tender offer, the consummating corporation may effect a merger without a vote of the stockholders of the target corporation. Accordingly, if the Offer is consummated and the number of Shares validly tendered in accordance with the terms of the Offer and not validly withdrawn prior to the Offer Expiration Time (but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been “received” ​(as defined in Section 251(h) of the DGCL)), together with any Shares owned by Purchaser or its affiliates, represents at least a majority of the outstanding Shares, the Company does not anticipate seeking the approval of its remaining public stockholders before effecting the Merger. Section 251(h) also requires that the merger agreement provide that such merger shall be effected as soon as practicable following the consummation of the tender offer. Therefore, the parties have agreed that, subject to the conditions specified in the Merger Agreement, the Merger will become effective as soon as practicable after (and on the same day as) the consummation of the Offer after the satisfaction or waiver of the conditions to the Merger set forth in the Merger Agreement, without a vote of the stockholders of the Company, in accordance with Section 251(h) of the DGCL. See Section 11 — “The Merger Agreement; Other Agreements.”
As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time, (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL), will be cancelled and automatically converted into the right to receive the Offer Price in cash, without interest and subject to any applicable withholding taxes, which we refer to as the “Merger Consideration.” Shares described in clauses (i), (ii) and (iii) above, which we refer to as “Excluded Shares,” will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv), which we refer to as “Dissenting Shares,” will entitle their holders only to the rights granted to them under Section 262 of the DGCL. All shares converted into the right to receive the Offer Price will thereafter cease to exist. Following the Merger, the Company will cease to be a publicly traded company. See Section 11 — “The Merger Agreement; Other Agreements and Section 12 — Purpose of the Offer; Plans for the Company.”
The Company Board has unanimously declared it advisable to enter into the Merger Agreement and approved the execution, delivery and performance of the Merger Agreement in accordance with its terms and the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement in accordance with the DGCL and resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares in the Offer.
A more complete description of the Company Board’s reasons for authorizing and approving the Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger, is set forth in the Solicitation/Recommendation Statement on Schedule 14D-9 of the Company (which, together with any exhibits and annexes attached thereto, we refer to as the “Schedule 14D-9”), that is being furnished by the Company to stockholders in connection with the Offer together with this Offer to Purchase. The
 
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Company’s stockholders should carefully read the information set forth in the Schedule 14D-9, including the information set forth under the sub-headings “Background of the Offer and Merger” and “Reasons for Recommendation.” See Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — Other Covenants and Agreements — Company Board Recommendation; Adverse Recommendation Change; Fiduciary Exception.”
The Company has informed Purchaser that 116,699,802 Shares were issued and outstanding as of April 18, 2022.
The Merger is subject to the satisfaction or waiver of certain conditions, including there being no court or other governmental authority of competent jurisdiction having enacted, issued, promulgated, enforced or entered any order or any applicable law that would make the Merger illegal or otherwise prevent the consummation thereof. In addition, Purchaser must have irrevocably accepted for payment all Shares validly tendered and not properly withdrawn pursuant to the Offer.
Pursuant to the Merger Agreement, as of the effective time, the directors of Purchaser as of immediately prior to the effective time will become the directors of the surviving corporation, and the officers of the Company immediately prior to the effective time will remain as officers of the surviving corporation. See Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — Structure of the Merger; Certificate of Incorporation; Bylaws; Directors and Officers.”
No appraisal rights are available in connection with the Offer. However, if we accept Shares in the Offer and the Merger is completed, stockholders may be entitled to appraisal rights in connection with the Merger if they do not tender Shares in the Offer and comply with the applicable procedures described under Section 262 of the DGCL. Such stockholders will not be entitled to receive the Offer Price, but instead will be entitled to only those rights provided under Section 262 of the DGCL. Stockholders must properly perfect their right to seek appraisal under the DGCL in connection with the Merger in order to exercise appraisal rights. See Section 16 — “Certain Legal Matters; Regulatory Approvals — Dissenters’ Rights.”
Certain United States federal income tax consequences of the tender of Shares in the Offer and the exchange of Shares pursuant to the Merger are described in Section 5 — “Certain United States Federal Income Tax Consequences.”
This Offer to Purchase, the Letter of Transmittal and other documents to which this Offer to Purchase refers contain important information that should be read carefully before any decision is made with respect to the Offer.
 
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THE TENDER OFFER
1.
Terms of the Offer.
The Offer and withdrawal rights will expire at one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022, unless the Offer is extended or earlier terminated in accordance with the terms of the Merger Agreement.
Upon the terms and subject to the satisfaction, or to the extent permitted, waiver of the conditions of the Offer (including, if the Offer is extended or amended, the terms and conditions of such extension or amendment), Purchaser will prior to 9:00 a.m., New York City time, on the business day immediately after the Offer Expiration Time, accept for payment all Shares validly tendered and not properly withdrawn prior to the Offer Expiration Time (as permitted under Section 4 — “Withdrawal Rights”), and will pay for such Shares promptly (and in any event within three business days) after the Acceptance Time (as defined below).
The date and time of Purchaser’s acceptance for payment of all Shares validly tendered and not properly withdrawn pursuant to the Offer is referred to as the “Acceptance Time.”
The Offer is not subject to any financing condition. The Offer is conditioned upon, among other things, the satisfaction of the Minimum Tender Condition and the waiver by Parent and Purchaser or the satisfaction of the Inside Date Condition and the Antitrust Approvals Condition. For purposes of determining whether the Minimum Tender Condition has been satisfied, Shares tendered in the Offer pursuant to guaranteed delivery procedures that have not been “received” ​(as such terms are defined in Section 251(h) of the DGCL) prior to the Offer Expiration Time are excluded. The Offer is also subject to other conditions described in Section 15 — “Conditions of the Offer.” Subject to the applicable rules and regulations of the SEC and the terms and conditions of the Merger Agreement, any of the conditions to the Offer may be waived by Parent and Purchaser in whole or in part, at any time and from time to time, in their sole discretion, except that Parent and Purchaser are not permitted to waive the Minimum Tender Condition or the Termination Condition except, in the case of the Minimum Tender Condition, with the prior written consent of the Company. See Section 15 — “Conditions of the Offer.”
We expressly reserve the right, in our sole discretion, subject to the terms and conditions of the Merger Agreement and the applicable rules and regulations of the SEC, not to accept for payment any Shares if, at the Offer Expiration Time, any of the conditions to the Offer have not been satisfied. See Section 15 — “Conditions of the Offer.” Under certain circumstances, we may terminate the Merger Agreement and the Offer. See Section 11 — “The Merger Agreement; Other Agreements — Termination of the Merger Agreement.”
Pursuant to the Merger Agreement, we may extend the Offer beyond its initial Offer Expiration Time, but in no event will we be required or permitted to extend the Offer beyond October 7, 2022 (the “Termination Date”). We have agreed in the Merger Agreement that Purchaser will extend the Offer (i) for any minimum period required by any applicable law or any rule, regulation, interpretation or position of the SEC or its staff or of NASDAQ or its staff, applicable to the Offer, the Schedule 14D-9 or the Offer documents; (ii) if, as of the then-scheduled Offer Expiration Time, the Company has delivered written notice to Parent in accordance with the Merger Agreement that the Company intends to effect an Adverse Recommendation Change (as defined below) and/or terminate the Merger Agreement due to its receipt of a Superior Proposal (as defined below) or the occurrence of an intervening event (as defined below); (iii) if, at the then-scheduled Offer Expiration Time, the Company brings or will have brought any legal action to enforce specifically the performance of the terms and provisions of the Merger Agreement by Parent or Purchaser; and (iv) if at the-then scheduled Offer Expiration Time, any of the Offer conditions (other than those conditions that by their terms are to be satisfied at the Offer closing) has not been satisfied or waived (to the extent waiver is permitted under the Merger Agreement and applicable law) by Parent and Purchaser; provided, that if at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Minimum Condition and the other Offer conditions that by their terms are to be satisfied at the Offer closing) shall have been satisfied or waived (to the extent waiver is permitted under the Merger Agreement and applicable law), Purchaser may, and Purchaser shall upon receipt of the Company’s written request, extend the Offer for up to four occasions, in the aggregate, in consecutive periods of five business days each (or for
 
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such other duration as the parties may agree). If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived, Purchaser shall extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022. See “Introduction,” Section 1 — “Terms of the Offer” and Section 11 — “The Merger Agreement; Other Agreements — The Merger Agreement — The Offer” for more details on our ability to extend the Offer.
Pursuant to the Merger Agreement, Parent and Purchaser expressly reserve the right, at any time to waive, in whole or in part, any Offer condition (other than the Minimum Tender Condition and the Termination Condition), to increase the Offer Price or modify the terms of the Offer, in each case only in a manner not inconsistent with the Merger Agreement, except that Parent and Purchaser are not permitted (without the prior written consent of the Company) to (i) reduce the number of Shares subject to the Offer, (ii) reduce the Offer Price or change the form of consideration payable pursuant to the Offer, (iii) change, amend, modify, or waive the Minimum Tender Condition, (iv) add to the Offer conditions or impose any other conditions or requirements on the Offer, (v) change, amend, modify or supplement any existing Offer condition in a manner that is adverse in any respect to the holders of Shares or that would, individually or in the aggregate, reasonably be expected to prevent or delay the consummation of the Offer or the Merger (except to effect an extension to the Offer to the extent expressly permitted by the Merger Agreement or to validly terminate the Merger Agreement in accordance with the terms thereof) or impair the ability of Parent or Purchaser to consummate the Offer, (vi) except as otherwise required or expressly permitted by the Merger Agreement, extend or otherwise change, amend or modify the Offer Expiration Time, (vii) provide for any “subsequent offering period” within the meaning of Rule 14d-11 under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”), (viii) terminate the Offer or (ix) otherwise change, amend, modify or supplement the Offer in any manner adverse to the holders of Shares or in any manner that delays, interferes with, hinders or impairs the consummation of the Offer. The Offer may not be terminated or withdrawn prior to its scheduled Offer Expiration Time (as extended and re-extended in accordance with the Merger Agreement), unless the Merger Agreement is terminated in accordance with the terms thereof.
If, subject to the terms of the Merger Agreement, we make a material change in the terms of the Offer or the information concerning the Offer or if we waive a material condition of the Offer, we will disseminate additional tender offer materials and extend the Offer if and to the extent required by Rules 14d-4(d)(1), 14d-6(c) and 14e-1 under the Exchange Act. The minimum period during which the Offer must remain open following material changes in the terms of the Offer or information concerning the Offer, other than a change in price or a change in percentage of securities sought, will depend upon the facts and circumstances, including the relative materiality of the terms or information changes. In the SEC’s view, an offer to purchase should remain open for a minimum of five business days from the date the material change is first published, sent or given to stockholders, and with respect to a change in price or a change in percentage of securities sought, a minimum ten business day period generally is required to allow for adequate dissemination to stockholders and investor response. Accordingly, if, prior to the Offer Expiration Time, Purchaser decreases the number of Shares being sought or changes the Offer Price, and if the Offer is scheduled to expire at any time earlier than the tenth business day from the date that notice of such increase or decrease is first published, sent or given to stockholders, the Offer will be extended at least until the expiration of such tenth business day.
If, on or before the Offer Expiration Time, we increase the consideration being paid for Shares accepted for payment in the Offer, such increased consideration will be paid to all stockholders whose Shares are purchased in the Offer, whether or not such Shares were tendered before the announcement of the increase in consideration.
If we extend the Offer, are delayed in our acceptance for payment of or payment (whether before or after our acceptance for payment for Shares) for Shares or are unable to accept Shares for payment pursuant to the Offer for any reason, then, without prejudice to our rights under the Offer, the Depositary may retain tendered Shares on our behalf, and such Shares may not be withdrawn except to the extent that tendering stockholders are entitled to withdrawal rights as described herein under Section 4 — “Withdrawal Rights” or the Offer is withdrawn or terminated or the Merger Agreement is terminated pursuant to its terms. However, our ability to delay the payment for Shares that we have accepted for payment is limited by
 
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Rule 14e-1(c) under the Exchange Act, which requires us to promptly pay the consideration offered or return the securities deposited by or on behalf of stockholders promptly after the termination or withdrawal of the Offer.
Any extension, delay, termination, waiver or amendment of the Offer will be followed as promptly as practicable by public announcement thereof, such announcement in the case of an extension to be made no later than 9:00 a.m., New York City time, on the next business day after the previously scheduled Offer Expiration Time. Subject to applicable law (including Rules 14d-4(d), 14d-6(c) and 14e-1 under the Exchange Act, which require that material changes be promptly disseminated to stockholders in a manner reasonably designed to inform them of such changes) and without limiting the manner in which Purchaser may choose to make any public announcement, Purchaser shall have no obligation to publish, advertise or otherwise communicate any such public announcement other than by issuing a press release to a national news service. As used in this Offer to Purchase, “business day” means any day other than a Saturday, a Sunday or a federal holiday, and shall consist of the time period from 12:01 a.m. through 12:00 midnight, New York City time (provided that when used in reference to the Merger Agreement, “business day” means any day the principal offices of the SEC in Washington, D.C. are open to accept filings, other than Saturday, Sunday or any other day on which (i) commercial banks in New York, New York are authorized or required by applicable law to be closed or (ii) the Office of the Secretary of State of the State of Delaware is not open for business).
Under no circumstances will interest be paid on the Offer Price for the Shares, regardless of any extension of the Offer or any delay in making payment for the Shares.
As soon as practicable following the consummation of the Offer and subject to the satisfaction or waiver (to the extent waiver is permitted under applicable law) of certain conditions as described herein under Section 15 — “Conditions of the Offer,” Purchaser will complete the Merger without a vote of the stockholders of the Company to adopt the Merger Agreement and consummate the Merger in accordance with Section 251(h) of the DGCL.
The Company has provided Purchaser with the Company’s stockholder list and security position listings for the purpose of disseminating the Offer to Purchase, Letter of Transmittal and other Offer related materials to holders of Shares. This Offer to Purchase and the related Letter of Transmittal will be mailed to record holders of Shares whose names appear on the Company’s stockholder list and will be furnished, for subsequent transmittal to beneficial owners of Shares, to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing.
2.
Acceptance for Payment and Payment for Shares.
Subject to the satisfaction or waiver (to the extent waiver is permitted under applicable law) of all the conditions to the Offer set forth in Section 15 — “Conditions of the Offer,” we will, prior to 9:00 a.m., New York City time, on the business day immediately after the Offer Expiration Time irrevocably accept for payment all Shares tendered (and not properly withdrawn) pursuant to the Offer and, promptly after the Acceptance Time (and in any event within three business days), pay for such Shares.
In all cases, payment for Shares tendered and accepted for payment pursuant to the Offer will be made only after timely receipt by the Depositary of (i) certificates representing such Shares or confirmation of the book-entry transfer of such Shares into the Depositary’s account at The Depository Trust Company (“DTC”) pursuant to the procedures set forth in Section 3 — “Procedures for Tendering Shares,” ​(ii) a Letter of Transmittal, properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined below) in lieu of the Letter of Transmittal) or Electronic Instructions (as defined below), and (iii) any other documents required by the Letter of Transmittal, the Offer Website (as defined below) (in the case where Electronic Instructions are provided) or any other customary documents required by the Depositary. See Section 3 — “Procedures for Tendering Shares.”
For purposes of the Offer, if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer, then Purchaser has accepted for payment and
 
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thereby purchased Shares validly tendered and not properly withdrawn pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for purposes of receiving payments from us and transmitting such payments to the tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.
If any tendered Shares are not accepted for payment pursuant to the terms and conditions of the Offer for any reason, or if certificates are submitted for more Shares than are tendered, certificates for such unpurchased Shares will be returned (or new certificates for the Shares not tendered will be sent), without expense to the tendering stockholder (or, in the case of Shares tendered by book-entry transfer into the Depositary’s account at DTC pursuant to the procedures set forth in Section 3 — “Procedures for Tendering Shares,” such Shares will be credited to an account maintained with DTC) promptly following the expiration or termination of the Offer.
3.
Procedures for Tendering Shares.
Valid Tender of Shares
Except as set forth below, to validly tender Shares pursuant to the Offer, (i) a properly completed and duly executed Letter of Transmittal in accordance with the instructions of the Letter of Transmittal, with any required signature guarantees, or an Agent’s Message in connection with a book-entry delivery of Shares, and any other documents required by the Letter of Transmittal and any other customary documents required by the Depositary, must be received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Offer Expiration Time and either (a) certificates representing Shares tendered must be delivered to the Depositary or (b) such Shares must be properly delivered pursuant to the procedures for book-entry transfer described below and a confirmation of such delivery received by the Depositary (which confirmation must include an Agent’s Message if the tendering stockholder has not delivered a Letter of Transmittal), in each case, prior to the Offer Expiration Time, (ii) the tendering stockholder must visit www.brookcashtender.com (the “Offer Website”) and using the account and control codes printed on the Letter of Transmittal, sign in and follow the directions on the site and enter instructions (“Electronic Instructions”) or (iii) the tendering stockholder must comply with the guaranteed delivery procedures set forth below. The term “Agent’s Message” means a message, transmitted by DTC to, and received by, the Depositary and forming a part of a Book-Entry Confirmation (as defined below), which states that DTC has received an express acknowledgment from the participant in DTC tendering the Shares which are the subject of such Book-Entry Confirmation that such participant has received and agrees to be bound by the terms of the Letter of Transmittal and that Purchaser may enforce such agreement against the participant.
Book-Entry Transfer
The Depositary will take steps to establish and maintain an account with respect to the Shares at DTC for purposes of the Offer. Any financial institution that is a participant in DTC’s systems may make a book-entry transfer of Shares by causing DTC to transfer such Shares into the Depositary’s account in accordance with DTC’s procedures for such transfer. However, although delivery of Shares may be effected through book-entry transfer, either the Letter of Transmittal, properly completed and duly executed, together with any required signature guarantees, or an Agent’s Message in lieu of the Letter of Transmittal, and any other required documents, must, in any case, be transmitted to and received by the Depositary at one of its addresses set forth on the back cover of this Offer to Purchase prior to the Offer Expiration Time or the tendering stockholder must comply with the guaranteed delivery procedures described below. The confirmation of a book-entry transfer of Shares into the Depositary’s account at DTC as described above is referred to herein as a “Book-Entry Confirmation.”
Delivery of documents to DTC in accordance with DTC’s procedures does not constitute delivery to the Depositary.
Signature Guarantees and Stock Powers
Except as otherwise provided below, all signatures on a Letter of Transmittal must be guaranteed by a financial institution (including most commercial banks, savings and loan associations and brokerage houses)
 
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that is a member in good standing of a recognized Medallion Program approved by the Securities Transfer Association, Inc., including the Security Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program and the Stock Exchanges Medallion Program (each, an “Eligible Institution”). Signatures on a Letter of Transmittal need not be guaranteed (i) if the Letter of Transmittal is signed by the registered owner(s) (which term, for purposes of this section, includes any participant in any of DTC’s systems whose name appears on a security position listing as the owner of the Shares) of Shares tendered therewith and such registered owner has not completed the box entitled “Special Payment Instructions” or the box entitled “Special Delivery Instructions” on the Letter of Transmittal or (ii) if such Shares are tendered for the account of an Eligible Institution. See Instructions 1 and 5 of the Letter of Transmittal. If the certificates for Shares are registered in the name of a person other than the signer of the Letter of Transmittal, or if payment is to be made or certificates for Shares not tendered or not accepted for payment are to be returned to a person other than the registered owner of the certificates surrendered, then the tendered certificates must be registered or accompanied by appropriate stock powers, in either case, signed exactly as the name or names of the registered owner(s) or holder(s) appear on the certificates, with the signatures on the certificates or stock powers guaranteed as described above. See Instructions 1 and 5 of the Letter of Transmittal.
If certificates representing Shares are forwarded separately to the Depositary, a properly completed and duly executed Letter of Transmittal must accompany each delivery of certificates.
Guaranteed Delivery
A stockholder who desires to tender Shares pursuant to the Offer and whose certificates for Shares are not immediately available and cannot be delivered to the Depositary prior to the Offer Expiration Time, or who cannot complete the procedure for book-entry transfer prior to the Offer Expiration Time, or who cannot deliver all required documents to the Depositary prior to the Offer Expiration Time, may tender such Shares by satisfying all of the requirements set forth below:

such tender is made by or through an Eligible Institution;

a properly completed and duly executed Notice of Guaranteed Delivery, substantially in the form provided by Purchaser, is received by the Depositary (as provided below) prior to the Offer Expiration Time; and

the certificates for all tendered Shares, in proper form for transfer (or a Book-Entry Confirmation with respect to all such Shares), together with a properly completed and duly executed Letter of Transmittal, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal), and any other required documents, are received by the Depositary within two NASDAQ trading days after the date of execution of such Notice of Guaranteed Delivery. A “NASDAQ trading day” is any day on which NASDAQ is open for business.
The Notice of Guaranteed Delivery may be delivered by overnight courier to the Depositary or mailed or e-mailed to the Depositary and must include a guarantee by an Eligible Institution in the form set forth in such Notice of Guaranteed Delivery. Shares tendered by a Notice of Guaranteed Delivery will not be deemed validly tendered for purposes of satisfying the Minimum Tender Condition unless and until Shares underlying such Notice of Guaranteed Delivery are delivered to the Depositary prior to the Offer Expiration Time.
THE METHOD OF DELIVERY OF SHARES, THE LETTER OF TRANSMITTAL AND ALL OTHER REQUIRED DOCUMENTS, INCLUDING DELIVERY THROUGH DTC, IS AT THE ELECTION AND RISK OF THE TENDERING STOCKHOLDER. DELIVERY OF ALL SUCH DOCUMENTS WILL BE DEEMED MADE ONLY WHEN ACTUALLY RECEIVED BY THE DEPOSITARY (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION). IF SUCH DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
 
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Other Requirements
Notwithstanding any provision of the Merger Agreement to the contrary, Purchaser will pay for Shares tendered (and not validly withdrawn) pursuant to the Offer only after timely receipt by the Depositary of (i) certificates for (or a timely Book-Entry Confirmation with respect to) such Shares, (ii) a Letter of Transmittal, properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message in lieu of the Letter of Transmittal or Electronic Instructions), and (iii) any other documents required by the Letter of Transmittal, the Offer Website (in the case where Electronic Instructions are provided) or any other customary documents required by the Depositary. Accordingly, tendering stockholders may be paid at different times depending upon when certificates for Shares or Book-Entry Confirmations with respect to Shares are actually received by the Depositary. Under no circumstances will Purchaser pay interest on the purchase price of Shares, regardless of any extension of the Offer or any delay in making such payment. If your Shares are held in street name (i.e., through a broker, dealer, commercial bank, trust company or other nominee), your Shares can be tendered by your nominee by book-entry transfer through the Depositary. If you are unable to deliver any required document or instrument to the Depositary by the Offer Expiration Time, you may gain some extra time by having a broker, a bank or other fiduciary that is an eligible guarantor institution guarantee that the missing items will be received by the Depositary by using the enclosed Notice of Guaranteed Delivery. For the tender to be valid, however, the Depositary must receive the missing items together with the Shares within two NASDAQ trading days after the date of execution of the Notice of Guaranteed Delivery.
Binding Agreement
Purchaser’s acceptance for payment of Shares tendered pursuant to one of the procedures described above will constitute a binding agreement between the tendering stockholder and Purchaser upon the terms and subject to the conditions of the Offer.
Appointment as Proxy
By executing and delivering a Letter of Transmittal as set forth above (or, in the case of a book-entry transfer, by delivery of an Agent’s Message in lieu of a Letter of Transmittal, or by providing Electronic Instructions on the Offer Website), the tendering stockholder irrevocably appoints Purchaser’s designees as such stockholder’s proxies, each with full power of substitution, to the full extent of such stockholder’s rights with respect to the Shares tendered by such stockholder and accepted for payment by Purchaser and with respect to any and all other Shares or other securities issued or issuable in respect of such Shares on or after the date of the Merger Agreement. All such proxies and powers of attorney will be considered coupled with an interest in the tendered Shares. Such appointment is effective when, and only to the extent that, Purchaser accepts for payment Shares tendered by such stockholder as provided herein. Upon the effectiveness of such appointment, all prior powers of attorney, proxies and consents given by such stockholder will be revoked, and no subsequent powers of attorney, proxies and consents may be given (and, if given, will not be deemed effective). Our designees will, with respect to the Shares or other securities and rights for which the appointment is effective, be empowered to exercise all voting and other rights of such stockholder as they, in their sole discretion, may deem proper at any annual, special, adjourned or postponed meeting of the stockholders of the Company, by written consent in lieu of any such meeting or otherwise. Purchaser reserves the right to require that, in order for Shares to be deemed validly tendered, immediately upon Purchaser’s payment for such Shares, Purchaser must be able to exercise full voting, consent and other rights to the extent permitted under applicable law with respect to such Shares and other securities, including voting at any meeting of stockholders or executing a written consent concerning any matter.
Determination of Validity.
All questions as to the validity, form, eligibility (including time of receipt) and acceptance of any tender of Shares will be determined by Purchaser in its sole and absolute discretion, which determination will be final and binding, subject to the rights of the tendering holders of Shares to challenge Purchaser’s determination in a court of competent jurisdiction. Purchaser reserves the absolute right to reject any and all tenders determined by Purchaser not to be in proper form or the acceptance for payment of or payment for which may, in Purchaser’s opinion, be unlawful. Purchaser also reserves the absolute right to waive any
 
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defect or irregularity in the tender of any Shares of any particular stockholder whether or not similar defects or irregularities are waived in the case of any other stockholder. No tender of Shares will be deemed to have been validly made until all defects and irregularities relating thereto have been cured or waived. None of Parent, Purchaser or any of their respective affiliates or assigns, the Depositary, the Information Agent, or any other person will be under any duty to give notification of any defects or irregularities in tenders or incur any liability for failure to give any such notification. Purchaser’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the instructions thereto and any other documents related to the Offer) will be final and binding, subject to the rights of the tendering holders of Shares to challenge Purchaser’s determination in a court of competent jurisdiction.
Information Reporting and Backup Withholding.   Payments made to stockholders of the Company in the Offer or the Merger generally will be subject to information reporting and may be subject to backup withholding. To avoid backup withholding, U.S. stockholders that do not otherwise establish an exemption should complete and return the U.S. Internal Revenue Service (the “IRS”) Form W-9 included in the Letter of Transmittal, certifying that (i) such stockholder is a United States person, (ii) the taxpayer identification number provided by such stockholder is correct, and (iii) such stockholder is not subject to backup withholding. Foreign stockholders should submit a properly completed and signed appropriate IRS Form W-8, a copy of which may be obtained from the Depositary or the IRS website at www.irs.gov, in order to avoid backup withholding. Such stockholders are urged to consult their own tax advisors to determine which Form W-8 is appropriate.
Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a stockholder’s United States federal income tax liability, provided the required information is timely furnished in the appropriate manner to the IRS.
4.
Withdrawal Rights.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022, unless the Offer is extended, in which case you can withdraw your Shares at any time by the then extended date. You can also withdraw your Shares at any time after Tuesday, June 21, 2022, which is the 60th day after the date of commencement of the Offer, unless such Shares have already been accepted for payment by Purchaser pursuant to the Offer and not validly withdrawn.
For a withdrawal of Shares to be effective, a written (or, with respect to Eligible Institutions, a facsimile transmission) notice of withdrawal must be timely received by the Depositary at the address set forth on the back cover page of this Offer to Purchase. Any such notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder of such Shares, if different from that of the person who tendered such Shares. If certificates evidencing Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical release of such certificates, the serial numbers shown on such certificates must be submitted to the Depositary and the signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution, unless such Shares have been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedure for book-entry transfer as set forth in Section 3 — “Procedures for Tendering Shares,” any notice of withdrawal must also specify the name and number of the account at DTC to be credited with the withdrawn Shares.
Withdrawals of Shares may not be rescinded. Any Shares validly withdrawn will thereafter be deemed not to have been validly tendered for purposes of the Offer. However, withdrawn Shares may be re-tendered by again following one of the procedures described in Section 3 — “Procedures for Tendering Shares” at any time prior to the Offer Expiration Time.
We will determine, in our sole discretion, all questions as to the form and validity (including time of receipt) of any notice of withdrawal and our determination will be final and binding. None of Parent, Purchaser, the Depositary, the Information Agent or any other person will be under any duty to give notice of any defects or irregularities in any notice of withdrawal or incur any liability for failure to give any such notification.
 
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5.
Certain United States Federal Income Tax Consequences.
The following is a summary of certain United States federal income tax consequences to beneficial owners of Shares upon the tender of Shares for cash pursuant to the Offer and the exchange of Shares for cash pursuant to the Merger. This summary is general in nature and does not discuss all aspects of United States federal income taxation that may be relevant to a holder of Shares in light of its particular circumstances. In addition, this summary does not describe any tax consequences arising under the laws of any state, local or non-U.S. jurisdiction, does not consider the tax on “net investment income” under Section 1411 of the Code or the alternative minimum tax provisions of the Code, and does not consider any aspects of United States federal tax law other than income taxation. This summary deals only with Shares held as capital assets within the meaning of Section 1221 of the United States Internal Revenue Code of 1986, as amended (the “Code”) (generally, property held for investment), and does not address tax considerations applicable to any owner of Shares that may be subject to special treatment under the United States federal income tax laws, including:

a bank or other financial institution;

a tax-exempt organization;

a retirement plan or other tax-deferred account;

a partnership, an S corporation or other pass-through entity for United States federal income tax purposes (or an investor in a partnership, S corporation or other pass-through entity for United States federal income tax purposes);

an insurance company;

a mutual fund;

a real estate investment trust;

a dealer or broker in stocks and securities;

a trader in securities that elects to apply a mark-to-market method of tax accounting;

a holder of Shares that received the Shares through the exercise of an employee stock option, through a tax qualified retirement plan or otherwise as compensation;

a person that has a functional currency other than the United States dollar;

a person that holds the Shares as part of a straddle, constructive sale, conversion or other integrated transaction;

a person subject to special tax accounting rules (including rules requiring recognition of gross income based on a taxpayer’s applicable financial statement);

dissenting stockholders;

a United States expatriate, including former citizens or residents of the United States;

certain former citizens or residents of the United States;

controlled foreign corporations;

passive foreign investment companies; or

corporations that accumulate earnings to avoid United States federal income tax.
If a partnership (including any entity or arrangement treated as a partnership) for United States federal income tax purposes holds Shares, the tax treatment of an owner that is a partner (including any owner of an interest in an entity or arrangement treated as a partnership for United States federal income tax purposes) in the partnership generally will depend upon the status of the partner and the activities of the partner and the partnership. Such owners are urged to consult their own tax advisors regarding the tax consequences of tendering the Shares in the Offer or exchanging their Shares pursuant to the Merger.
This summary is based on the Code, the U.S. Department of Treasury regulations promulgated under the Code (the “Treasury Regulations”), and rulings and judicial decisions, all as in effect as of the date of this
 
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Offer to Purchase, and all of which are subject to change or differing interpretations at any time, with possible retroactive effect. We have not sought, and do not intend to seek, any ruling from the IRS with respect to the statements made and the conclusions reached in the following summary, and no assurance can be given that the IRS will agree with the views expressed herein, or that a court will not sustain any challenge by the IRS in the event of litigation.
The discussion set out in this Offer to Purchase is intended only as a summary of the material United States federal income tax consequences to an owner of Shares. We urge you to consult your own tax advisor with respect to the specific tax consequences to you in connection with the Offer and the Merger in light of your own particular circumstances, including federal estate, gift and other non-income tax consequences, and tax consequences under state, local or non-U.S. tax laws.
United States Holders
For purposes of this discussion, the term “United States Holder” means a beneficial owner of Shares that is, for United States federal income tax purposes:

a citizen or resident of the United States;

a corporation (or any other entity or arrangement treated as a corporation for United States federal income tax purposes) organized in or under the laws of the United States or any state thereof or the District of Columbia;

an estate the income of which is subject to United States federal income taxation regardless of its source; or

a trust if a court within the United States is able to exercise primary supervision over the administration of the trust and one or more United States persons have the authority to control all substantial decisions of the trust, or that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a United States person.
Payments with Respect to Shares
The tender of Shares in the Offer for cash or the exchange of Shares pursuant to the Merger for cash will be a taxable transaction for United States federal income tax purposes, and a United States Holder who receives cash for Shares pursuant to the Offer or pursuant to the Merger will recognize gain or loss, if any, equal to the difference between the amount of cash received and the holder’s adjusted tax basis in the Shares tendered or exchanged therefor. Gain or loss will be determined separately for each block of Shares (i.e., Shares acquired at the same cost in a single transaction). Such gain or loss will be capital gain or loss, and will be long-term capital gain or loss if such United States Holder’s holding period for the Shares is more than one year at the time of the exchange. Long-term capital gain recognized by a non-corporate United States Holder generally is subject to tax at a lower rate than short-term capital gain or ordinary income. The deductibility of capital losses is subject to limitations.
Backup Withholding Tax
Proceeds from the tender of Shares in the Offer or the exchange of Shares pursuant to the Merger generally will be subject to backup withholding tax at the applicable rate (currently, 24%) unless the applicable United States Holder or other payee provides a valid taxpayer identification number and complies with certain certification procedures (generally, by providing a properly completed IRS Form W-9) or otherwise establishes an exemption from backup withholding tax. Any amounts withheld under the backup withholding tax rules from a payment to a United States Holder will be allowed as a credit against the United States Holder’s United States federal income tax liability and may entitle the United States Holder to a refund, provided that the required information is timely furnished to the IRS. Each United States Holder should complete and sign the IRS Form W-9, which will be included with the Letter of Transmittal to be returned to the Depositary, to provide the information and certification necessary to avoid backup withholding, unless an exemption applies and is established in a manner satisfactory to the Depositary.
 
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Non-United States Holders
The following is a summary of the material United States federal income tax consequences that will apply to a non-United States Holder of Shares. The term “non-United States Holder” means a beneficial owner of Shares that is neither a United States Holder nor a partnership for United States federal income tax purposes (including any entity or arrangement treated as a partnership for United States federal income tax purposes).
Payments with Respect to Shares
Payments made to a non-United States Holder with respect to Shares tendered for cash in the Offer or exchanged for cash pursuant to the Merger generally will be exempt from United States federal income tax, with the following exceptions:

If the non-United States Holder is an individual who was present in the United States for 183 days or more in the taxable year of the exchange and certain other conditions are met, such non-United States Holder will be subject to tax at a flat rate of 30% (or such lower rate as may be specified under an applicable income tax treaty) on any gain from the exchange of the Shares, net of applicable United States-source losses from sales or exchanges of other capital assets recognized by the holder during the year.

If the gain is “effectively connected” with the non-United States Holder’s conduct of a trade or business in the United States (and, if required by an applicable income tax treaty, is attributable to a United States permanent establishment of the non-United States Holder), the non-United States Holder will generally be subject to tax on the net gain derived from the sale as if it were a United States Holder. In addition, if such non-United States Holder is a non-U.S. corporation for United States federal income tax purposes, it may be subject to an additional “branch profits tax” at a 30% rate (or at a lower rate if such non-United States Holder is eligible for the benefits of an income tax treaty that provides for a lower rate).

If the Company is or has been a United States real property holding corporation for United States federal income tax purposes during the shorter of the non-United States Holder’s holding period or the five years preceding the sale, the Shares will be treated as “United States real property interests” unless (i) the non-United States Holder does not actually or constructively own more than 5% of the Shares during such period and (ii) the Company’s common stock is regularly traded, as defined by applicable United States treasury regulations, on an established securities market. If the Shares are treated as “United States real property interests,” any gain or loss will be treated as effectively connected with a U.S. trade or business and subject to U.S. federal income tax as described above, except that the “branch profits tax” described above generally will not apply.
Backup Withholding Tax
A non-United States Holder may be subject to backup withholding tax with respect to the proceeds from the disposition of Shares pursuant to the Offer or pursuant to the Merger, unless, generally, the non-United States Holder certifies under penalties of perjury on an appropriate IRS Form W-8 that such non-United States Holder is not a United States person, or the non-United States Holder otherwise establishes an exemption in a manner satisfactory to the Depositary.
Any amounts withheld under the backup withholding tax rules will be allowed as a refund or a credit against the non-United States Holder’s United States federal income tax liability, provided the required information is timely furnished to the IRS. Each non-United States Holder should complete and sign the appropriate IRS Form W-8, which will be requested in the Letter of Transmittal to be returned to the Depositary, to provide the information and certification necessary to avoid backup withholding, unless an exemption applies and is established in a manner satisfactory to the Depositary. The foregoing summary does not discuss all aspects of United States federal income taxation that may be relevant to particular holders of Shares. You are urged to consult your own tax advisor about the particular tax consequences to you of tendering your Shares in the Offer or exchanging your Shares pursuant to the Merger under any federal, state, local, non-U.S. or other laws.
 
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6.
Price Range of Shares; Dividends.
The Shares are listed on NASDAQ, under the symbol “CDK.” The Company has informed Purchaser that 116,699,802 Shares were issued and outstanding as of April 18, 2022. The Shares have been listed on NASDAQ since September 30, 2014.
The following table sets forth the high and low sales prices per Share as reported on NASDAQ for the fiscal quarters indicated:
High
Low
Year Ending June 30, 2022
First Quarter
$ 50.62 $ 39.78
Second Quarter
$ 45.33 $ 38.54
Third Quarter
$ 49.54 $ 40.52
Fourth Quarter (through April 21, 2022)
$ 54.70 $ 48.01
Year Ended June 30, 2021:
First Quarter
$ 47.95 $ 39.34
Second Quarter
$ 52.18 $ 41.21
Third Quarter
$ 55.51 $ 48.76
Fourth Quarter
$ 55.15 $ 49.39
Year Ended June 30, 2020:
First Quarter
$ 53.86 $ 41.50
Second Quarter
$ 56.05 $ 43.65
Third Quarter
$ 57.00 $ 29.12
Fourth Quarter
$ 47.32 $ 29.33
The Offer Price of $54.87 per share represents a premium of approximately 30% to the unaffected closing price of the Shares on February 18, 2022, the last full trading day prior to market speculation regarding a potential sale of the Company. On April 21, 2022, the last full trading day before Purchaser commenced the Offer, the closing price of the Shares reported on NASDAQ was $54.44 per Share. Stockholders are urged to obtain current market quotations for Shares before making a decision with respect to the Offer.
The Merger Agreement provides that from the date of the Merger Agreement until the effective time, except as required or contemplated by the Merger Agreement, required by law or order or with the written consent of Parent (such consent not to be unreasonably withheld, conditioned or delayed), the Company will not establish a record date for, declare, set aside for payment or pay any dividend on, or make any other distribution in respect of, any shares of its capital stock or other equity or voting interests other than with respect to (x) dividends and distributions by a direct or indirect wholly owned subsidiary of the Company to its direct or indirect parent or (y) any regular quarterly cash dividend made by the Company to holders of Shares, in an amount of up to $0.15 per Share for any such quarterly dividend.
7.
Certain Information Concerning the Company.
Except as specifically set forth herein, the information concerning the Company contained in this Offer to Purchase has been taken from, or is based upon, information furnished by the Company or its representatives or upon publicly available documents and records on file with the SEC and other public sources. The summary information set forth below is qualified in its entirety by reference to the Company’s public filings with the SEC (which may be obtained and inspected as described below) and should be considered in conjunction with the more comprehensive financial and other information in such reports and other publicly available information.
General.    The following description of the Company and its business has been taken from the Company’s Annual Report on Form 10-K for the annual period ended June 30, 2021, and is qualified in its entirety by reference to such Annual Report on Form 10-K.
 
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The Company is a provider of integrated data and technology solutions to the automotive, heavy truck, recreation and heavy equipment industries. Focused on enabling end-to-end, omnichannel retail commerce through open, agnostic technology, the Company provides solutions to dealers and original equipment manufacturers (“OEMs”), serving nearly 15,000 retail locations in North America. The Company’s solutions connect people with technology by automating and integrating all parts of the dealership and buying process, including the acquisition, sale, financing, insuring, parts supply, repair and maintenance of vehicles.
The Company generates revenue primarily by providing a broad suite of subscription-based software and technology solutions for the Company’s core customer base of automotive retailers as well as to retailers and manufacturers of heavy trucks, construction equipment, agricultural equipment, motorcycles, boats, and other marine and recreational vehicles.
The Company’s principal executive offices are located at 1950 Hassell Road, Hoffman Estates, Illinois. The telephone number of the Company at its principal executive offices is (847) 397-1700.
Available Information.    The Shares are registered under the Exchange Act. Accordingly, the Company is subject to the information reporting requirements of the Exchange Act and is required to file periodic reports, proxy statements and other information with the SEC relating to its business, financial condition and other matters. Information as of particular dates concerning the Company’s directors and officers, their remuneration, stock options and other equity awards granted to them, the principal holders of the Company’s securities, any material interests of such persons in transactions with the Company and other matters is required to be disclosed in proxy statements. Such reports, proxy statements and other information are available on www.sec.gov.
The Company’s Financial Projections.   The Company provided Parent with certain internal financial projections as described in the Company’s Schedule 14D-9, which will be filed with the SEC and is being mailed to the Company’s stockholders contemporaneously with this Offer to Purchase.
8.
Certain Information Concerning Parent, Purchaser and Certain Related Parties.
Purchaser.    Central Merger Sub Inc., a Delaware corporation, is a wholly-owned subsidiary of Parent and was formed solely for the purpose of facilitating the acquisition of the Company by Parent. To date, Purchaser has not carried on any activities other than those related to its formation, the Offer and the Merger. Upon consummation of the proposed Merger, Purchaser will merge with and into the Company and will cease to exist, with the Company continuing as the surviving corporation. The business address for Purchaser is: 250 Vesey Street, 15th Floor, New York, NY 10281-1023. The business telephone number for Purchaser is 212-417-7000.
Parent.    Central Parent LLC, a Delaware limited liability company, was formed on February 18, 2022 solely for the purpose of completing the Offer and the Merger and has conducted no business activities other than those related to the structuring and negotiation of the Offer and the Merger. Until immediately prior to the time Purchaser purchases Shares pursuant to the Offer, it is not anticipated that Parent will have any significant assets or liabilities or engage in activities other than those incidental to its formation, capitalization and the transactions contemplated by the Offer and/or the Merger. The business telephone number for Parent is 212-417-7000. The business address for Parent is: 250 Vesey Street, 15th Floor, New York, NY 10281-1023.
BCP VI.    Purchaser and Parent are affiliates of Brookfield Capital Partners VI L.P., a Cayman Islands exempted limited partnership (“BCP VI”). BCP VI is a private investment fund that purchases, sells, trades and invests in equity and debt securities and other business opportunities. The business address for BCP VI is: 250 Vesey Street, 15th Floor, New York, NY 10281-1023.
Additional Information.    The name, citizenship, business address, present principal occupation or employment and five-year employment history of each of the directors and executive officers of Parent, Purchaser and BCP VI are listed in Schedule I to this Offer to Purchase.
During the last five years, none of Parent, Purchaser or BCP VI or, to the best knowledge of Parent and Purchaser, any of the persons listed in Schedule I to this Offer to Purchase (i) has been convicted in a
 
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criminal proceeding (excluding traffic violations or similar misdemeanors) or (ii) was a party to any judicial or administrative proceeding (except for matters that were dismissed without sanction or settlement) that resulted in a judgment, decree or final order enjoining such person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of such laws.
Except as provided in the Merger Agreement or as otherwise described in this Offer to Purchase, (i) none of Parent, Purchaser or BCP VI or, to the best knowledge of Parent and Purchaser, any of the persons listed in Schedule I to this Offer to Purchase or any associate or majority-owned subsidiary of Parent, Purchaser or BCP VI, or any of the persons so listed, beneficially owns or has any right to acquire, directly or indirectly, any Shares and (ii) none of Parent, Purchaser or BCP VI, or, to the best knowledge of Parent and Purchaser, any of the persons or entities referred to in Schedule I hereto nor any director, executive officer or subsidiary of any of the foregoing, has effected any transaction in respect of any Shares during the past two years. Except as provided in the Merger Agreement or as otherwise described in this Offer to Purchase, none of Parent, Purchaser or BCP VI, or, to the best knowledge of Parent and Purchaser, any of the persons listed in Schedule I to this Offer to Purchase, has any material contract, arrangement, understanding or relationship with any other person with respect to any securities of the Company (including, but not limited to, any material contract, arrangement, understanding or relationship concerning the transfer or the voting of any such securities, joint ventures, loan or option arrangements, puts or calls, guaranties of loans, guaranties against loss or the giving or withholding of proxies, consents or authorizations).
Except as set forth in this Offer to Purchase, none of Parent, Purchaser or BCP VI, or, to the best knowledge of Parent and Purchaser, any of the persons listed in Schedule I hereto, has had any business relationship or transaction with the Company or any of its executive officers, directors or affiliates that is required to be reported under the rules and regulations of the SEC applicable to the Offer.
Except as set forth in this Offer to Purchase, there have been no negotiations, transactions or material contracts between Parent, Purchaser or BCP VI, or to the best knowledge of Parent and Purchaser, any of the persons listed in Schedule I to this Offer to Purchase, on the one hand, and the Company or its affiliates, on the other hand, concerning a merger, consolidation, acquisition, tender offer or other acquisition of securities of the Company, an election of directors or a sale or other transfer of a material amount of assets of the Company during the past two years.
Available Information.    Pursuant to Rule 14d-3 under the Exchange Act, we have filed with the SEC a Tender Offer Statement on Schedule TO (as amended, the “Schedule TO”), of which this Offer to Purchase forms a part, and exhibits to the Schedule TO. The Schedule TO and the exhibits thereto, as well as other information filed by Parent and Purchaser with the SEC, are available on the SEC website at www.sec.gov. Additional copies of this Offer to Purchase, the related Letter of Transmittal, the Notice of Guaranteed Delivery and other materials related to the Offer may also be obtained for free from the Information Agent.
9.
Source and Amount of Funds.
We estimate that the maximum amount of funds needed to (i) complete the Offer, the Merger and the transactions contemplated in the Merger Agreement, including the funds needed to purchase all Shares tendered in the Offer and to pay the Company stockholders whose Shares are converted into the right to receive a cash amount equal to the Offer Price in the Merger, (ii) pay for fees and expenses incurred by Parent related to the Offer and the Merger, (iii) pay for the amounts in respect of outstanding in-the-money Company Options and other equity awards and (iv) refinance certain existing indebtedness of the Company and its subsidiaries will be approximately $8,700 million.
Parent has received (1) (A) a commitment from certain lenders to provide a $4,350 million first lien senior secured term loan facility (the “First Lien Term Loan Facility”) and (B) a commitment from certain lenders to provide a $650 million first lien senior secured revolving credit facility and (2) a commitment from certain lenders to provide a $865 million second lien senior secured term loan facility (the “Second Lien Term Loan Facility” and, together with the First Lien Term Loan Facility, the “Term Loan Facilities”) contemplated by an amended and restated debt commitment letter, dated April 12, 2022, that was originally entered into in connection with the execution of the Merger Agreement (the “Debt Commitment Letter”), for the purpose of financing the transactions and paying transaction-related fees, commissions and expenses
 
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and repaying certain of the Company’s and its subsidiaries existing indebtedness, among other things. In addition, Parent has obtained an equity commitment letter, dated April 7, 2022 (the “Equity Commitment Letter” and, together with the Debt Commitment Letter, the “Commitment Letters”) which provides for up to $3,508 million in aggregate of equity financing from BCP VI and Brookfield Asset Management Inc. (“BAM,” and each of BAM and BCP VI an “Investor” and collectively the “Investors”). Parent will contribute or otherwise advance to Purchaser the proceeds of the equity commitments, which, together with net proceeds of the debt financing, will be sufficient to pay the aggregate amount needed to satisfy Purchaser’s obligations under the Merger Agreement, and to consummate the transactions and to pay all fees and expenses reasonably expected to be incurred in connection therewith and with the financing. Funding of the Term Loan Facilities contemplated by the Debt Commitment Letter and the equity financing contemplated by the Equity Commitment Letter is subject to the satisfaction of various customary conditions.
We do not believe our financial condition is material to your decision whether to tender your Shares and accept the Offer because (a) the Offer is not subject to any financing condition, (b) if we consummate the Offer, subject to the satisfaction or waiver of certain conditions, we have agreed to acquire all remaining Shares (other than Shares (i) owned by the Company or any of its wholly owned subsidiaries (including Shares held as treasury stock), or (ii) owned by Parent or any of its wholly owned subsidiaries, including Purchaser, in each case, both at the commencement of the Offer and immediately prior to the effective time) for cash at the same price per share in the Merger as the Offer Price and (c) we have all of the financial resources, including committed debt and equity financing, sufficient to finance the Offer and the Merger.
Debt Financing
Parent has received the Debt Commitment Letter from certain lenders to provide (i)(A) a $4,350 million first lien senior secured term loan facility and (B) a $650 million first lien senior secured revolving credit facility and (ii) a $865 million second lien senior secured term loan facility (collectively, the “Senior Secured Credit Facilities”).
It is anticipated that the proceeds of the new Senior Secured Credit Facilities will be used to partially finance the Offer and the Merger, refinance certain of the Company’s and its subsidiaries’ existing indebtedness, pay related fees and expenses incurred in connection with the Offer, the Merger and the other transactions and to provide for ongoing working capital and for other general corporate purposes of the Company and its subsidiaries.
The First Lien Term Loan Facility will mature seven years from the date of funding and will amortize in equal quarterly installments of 0.25% of the original principal amount. The first lien revolving facility will mature five years from the date of closing and will not amortize. The Second Lien Term Loan Facility will mature eight years from the date of funding and will not amortize. The definitive documentation for the Senior Secured Credit Facilities as contemplated by the Debt Commitment Letter will contain covenants, events of default and other terms and provisions that have been agreed with the debt financing sources party to the Debt Commitment Letter.
The availability of the financing contemplated by the Debt Commitment Letter is subject to:

the substantially concurrent consummation of the acquisition in accordance with the Merger Agreement in all material respects;

the execution and delivery of definitive documentation with respect to the new Senior Secured Credit Facilities and customary closing documents consistent with the Debt Commitment Letter;

since the date of the Merger Agreement, there shall not have been any “Effect” ​(which, for purposes of the Debt Commitment Letter, is defined as in the Merger Agreement) that has had, or would reasonably be expected to have, a “Company Material Adverse Effect” ​(which, for purposes of the Debt Commitment Letter, is defined as in the Merger Agreement) that is continuing at the scheduled “Expiration Time” (which, for purposes of the Debt Commitment Letter, is defined as in the Merger Agreement) and that results in a failure of a condition precedent to Purchaser (or its affiliates’) obligations to consummate the Merger pursuant to the terms of the Merger Agreement;

the payment of all applicable fees and expenses;
 
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the delivery of pro forma financials and certain audited and unaudited financial statements of the Company;

receipt by the lenders of documentation and other information required under applicable “know your customer” and anti-money laundering rules and regulations (including the PATRIOT Act);

prior to or substantially concurrently with the initial funding of the debt financing, the refinancing of certain existing indebtedness of the Company shall have been consummated;

prior to or substantially concurrently with the consummation of the Merger, the equity financing shall have been consummated; and

certain specified Merger Agreement representations shall be true and correct (after giving effect to all applicable materiality qualifier applicable thereto) and certain specified representations contained in the definitive documentation with respect to the new Secured Senior Credit Facilities shall be true and correct in all material respects.
If any portion of the debt financing necessary to fund amounts contemplated to be paid by Parent pursuant to the Merger Agreement at the closing becomes unavailable on the terms and conditions (including any applicable “market flex” provisions) contemplated by the Debt Commitment Letter, then Parent shall promptly notify the Company in writing and Parent and Purchaser shall use their reasonable best efforts to arrange and obtain in replacement thereof, and negotiate and enter into definitive agreements with respect to, alternative financing from alternative sources (so long as the terms thereof are of the type that would not constitute a Prohibited Amendment (as defined below)) in an amount sufficient to consummate the Offer and the Merger with terms and conditions (including “market flex” provisions) not materially less favorable to Parent and Purchaser (or their respective affiliates) than the terms and conditions set forth in the original Debt Commitment Letter, as promptly as practicable following the occurrence of such event.
Parent and Purchaser may invite other banks, financial institutions and institutional lenders to participate in the debt financing contemplated by the Debt Commitment Letter.
Although the debt financing described in this Offer to Purchase is not subject to a due diligence or “market out” condition, such financing may not be considered assured. The commitments of the financing sources under the Debt Commitment Letter shall automatically terminate (unless such financing sources shall, in their discretion, agree to an extension) upon the earliest to occur of (A) five business days after the date specified in the Merger Agreement (as in effect on April 7, 2022) as the “Termination Date,” ​(B) the date on which Parent terminates the Merger Agreement in accordance with its terms prior to the closing of the Merger, (C) the date the Merger is consummated without the funding of the debt financing and (D) the “Closing Date” ​(as defined in the Debt Commitment Letter) and initial funding of the debt financing.
The documentation governing the new Senior Secured Credit Facilities contemplated by the Debt Commitment Letter has not been finalized and, accordingly, the actual terms of the debt financing may differ from those described herein.
The foregoing summary of the Debt Commitment Letter is qualified in its entirety by reference to the copy of such letter attached as Exhibit (b)(1) to the Schedule TO and which is incorporated herein by reference.
Equity Financing
Parent has received an Equity Commitment Letter, dated as of the date of the Merger Agreement (the “Equity Commitment Letter”), from the Investors pursuant to which BCP VI has committed to provide equity financing of up to $2 billion and BAM has committed to provide equity financing of up to $1.508 billion, (collectively, the “Equity Commitment”). The conditions to the Investors’ funding obligation under the Equity Commitment Letter include: (i) the satisfaction or waiver in accordance with the Merger Agreement of the Merger conditions and the Offer conditions (other than those conditions that by their nature can only be satisfied at the Closing, but subject to such conditions being satisfied or waived), (ii) the debt financing having been funded in full in accordance with the terms thereof at the Closing, or the financing entities having confirmed in writing that the debt financing will be funded in full at the Closing
 
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if the equity financing is funded at the Closing and (iii) the substantially simultaneous consummation of the transactions contemplated by the Merger Agreement in accordance with the terms of the Merger Agreement.
The obligations of the Investors in the aggregate to provide the Equity Commitment will expire and terminate upon the earliest to occur of: (i) the Closing, (ii) the valid termination of the Merger Agreement by Parent or the Company, in each case pursuant to the terms of the Merger Agreement, and (iii) the assertion, filing or commencement by the Company or any of its affiliates, representatives or stockholders (each, a “Company Related Party”) of a proceeding asserting any claim against any Investor, Parent or certain of their affiliates other than a Guarantee Claim, Merger Agreement Claim or any other Retained Claim (each as defined in the Equity Commitment Letter).
This summary does not purport to be complete and is qualified in its entirety by reference to the full text of the Equity Commitment Letter, a copy of which has been filed as Exhibit (d)(3) to the Schedule TO and which is incorporated herein by reference.
10.
Background of the Offer; Past Contacts or Negotiations with the Company.
The information set forth below regarding the Company was provided by the Company, and none of Parent, Purchaser nor any of their respective affiliates take any responsibility for the accuracy or completeness of any information regarding meetings or discussions in which Parent, Purchaser or their respective affiliates or representatives did not participate.
Background of the Offer
The following is a description of significant contacts between representatives of Parent, on the one hand, and representatives of the Company, on the other hand, that resulted in the execution of the Merger Agreement and commencement of the Offer. For a review of the Company’s activities relating to the contacts leading to the Merger Agreement, please refer to the Schedule 14D-9, which has been filed with the SEC and is being mailed to its stockholders with this Offer to Purchase.
On January 24, 2022, Brookfield Capital Partners LLC (“Brookfield”), an affiliate of Parent and Purchaser, contacted Morgan Stanley & Co. LLC (“Morgan Stanley”) to express an interest in participating in the Company’s strategic alternative process.
On January 24, 2022, Brookfield was provided a draft confidentiality agreement. The confidentiality agreement included a customary standstill provision with a customary “fall away” provision providing that the standstill obligations terminated following the Company entering into a definitive agreement providing for a change of control like the Merger Agreement.
On January 25, 2022, the Company and Brookfield entered into a confidentiality agreement.
On January 26, 2022, members of the Company’s senior management and representatives from Morgan Stanley held a management presentation with representatives of Brookfield.
On February 22, 2022, as directed by the Company, Brookfield provided a provided a preliminary non-binding written indication of interest to the Company. Brookfield’s indication of interest valued the Company at $56 per Share in cash (which represented a premium of approximately 33% over the Company’s closing price of $42.24 on February 18, 2022).
On February 28, 2022, the Company provided representatives of Brookfield with access to an electronic data room containing due diligence materials, as well as an auction draft of the Merger Agreement and the Company’s confidential disclosure schedule to the Merger Agreement.
On March 1, 2022, Brookfield provided the Company with a supplementary due diligence request list.
On March 7, 2022, members of the Company’s senior management and representatives from Morgan Stanley held an in person management presentation with representatives of Brookfield followed by a working dinner.
 
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On March 14, 2022, Morgan Stanley provided a process letter to Brookfield, requesting the delivery of an initial markup of the draft Merger Agreement on March 24, 2022 and a final binding proposal on April 5, 2022.
From March 14, 2022, through the execution of the Merger Agreement, Parent, Purchaser and their professional advisors reviewed the due diligence materials provided by the Company in the electronic data room, including supplements to the data room supplied upon request by the parties.
On March 24, 2022, Davis Polk & Wardwell LLP (“Davis Polk”), counsel for Brookfield, sent a markup of the Merger Agreement to Paul, Weiss, Rifkind, Wharton & Garrison LLP (“Paul, Weiss”), counsel for the Company, as requested by the process letter.
During the period between March 9, 2022 and March 31, 2022, representatives of Brookfield participated in calls and virtual meetings with representatives of the Company to facilitate each party’s ongoing due diligence investigation.
On March 31, 2022, Paul, Weiss held a call with Davis Polk to provide the Company’s views with respect to certain terms of the markup of the Merger Agreement previously provided by Davis Polk, including Brookfield’s proposals on the circumstances under which a termination fee would be payable by the Company, the scope of the representations and warranties provided by the Company and the amount of the termination fee payable by the Company, among other terms, and requested that Davis Polk submit a further revised markup of the Merger Agreement with Brookfield’s bid letter.
On April 3, 2022, Davis Polk sent a markup of the Company’s confidential disclosure schedule to the Merger Agreement to Paul, Weiss.
On April 5, 2022, Brookfield sent markups of the Merger Agreement and the Company’s confidential disclosure schedule to the Merger Agreement, and drafts of the Equity Commitment Letter, Debt Commitment Letter and Limited Guarantee, along with a bid letter, to Morgan Stanley. The bid letter indicated that Brookfield’s offer would remain valid until 12:00 p.m. on April 7, 2022 and that Brookfield was prepared to announce a transaction within 24 hours.
During the evening of April 6, 2022 and into the morning of April 7, 2022, representatives of Brookfield, and Davis Polk, on the one hand, and representatives of the Company, and Paul, Weiss, on the other hand, finalized the terms of the Merger Agreement and the Company, Parent and Purchaser executed and delivered the Merger Agreement prior to the opening of the market on April 7, 2022. Shortly thereafter, affiliates of Brookfield issued a press release announcing the entry into the Merger Agreement and the transactions contemplated thereby.
On April 22, 2022 Purchaser commenced the Offer.
Past Contacts, Transactions, Negotiations and Agreements.
For information on the Merger Agreement and the other agreements between the Company and Purchaser and their respective related parties, see Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties” and Section 11 — “The Merger Agreement, Other Agreements — Other Agreements.”
11.
The Merger Agreement; Other Agreements.
The Merger Agreement
The following is a summary of certain provisions of the Merger Agreement. This summary of the Merger Agreement has been included to provide stockholders with information regarding its terms. It is not intended to provide any other factual disclosures about Parent, Purchaser, the Company or their respective affiliates, and it is not intended to modify or supplement any rights or obligations of the parties under the Merger Agreement or any factual disclosures about the Company or the transactions contemplated in the Merger Agreement contained in public reports filed by the Company with the SEC. This summary does not purport to be complete and is qualified in its entirety by reference to the full text of the Merger Agreement, a copy of which is filed as Exhibit (d)(1) to the Schedule TO, which is incorporated herein by reference. Copies
 
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of the Merger Agreement and the Schedule TO, and any other filings that we make with the SEC with respect to the Offer or the Merger, may be obtained in the manner set forth in Section 8 — “Certain Information Concerning Parent, Purchaser and Certain Related Parties.” Stockholders and other interested parties should read the Merger Agreement for a more complete description of the provisions summarized below. Capitalized terms used in this section and not otherwise defined have the respective meanings set forth in the Merger Agreement.
The assertions embodied in the representations and warranties contained in the Merger Agreement are qualified by information in a confidential disclosure schedule delivered by the Company to Parent in connection with the Merger Agreement (which we refer to as the “Company Disclosure Letter”) and a confidential disclosure schedule delivered by Parent to the Company, in each case in connection with the signing of the Merger Agreement. Moreover, certain representations and warranties in the Merger Agreement were made as of a specified date, may be subject to a contractual standard of materiality different from what might be viewed as material to stockholders, or may have been used for the purpose of allocating risk between the parties to the Merger Agreement. Accordingly, the representations and warranties contained in the Merger Agreement and summarized in this Section 11 should not be relied on by any persons as characterizations of the actual state of facts and circumstances of the Company, Parent or Purchaser at the time they were made and the information in the Merger Agreement should be considered in conjunction with the entirety of the factual disclosure about the Company in the Company’s public reports filed with the SEC. Information concerning the subject matter of the representations and warranties may change after the date of the Merger Agreement, which subsequent information may or may not be fully reflected in the Company’s public disclosures. The Merger Agreement should not be read alone, but should instead be read in conjunction with the other information regarding the Offer, the Merger, the Company, Parent, Purchaser, their respective affiliates and their respective businesses that are contained in, or incorporated by reference into the Schedule TO and related exhibits, including this Offer to Purchase, and the Schedule 14D-9 filed by the Company on April 22, 2022, as well as in the Company’s other public filings.
The Offer
The Merger Agreement provides that Purchaser will commence the Offer on or before April 22, 2022, and that, subject to the satisfaction of the Minimum Tender Condition and the satisfaction or waiver (to the extent waiver is permitted under applicable law) of the Inside Date Condition, the Antitrust Approvals Condition and the other conditions that are described in Section 15 — “Conditions of the Offer,” Purchaser will, and Parent will cause Purchaser to, accept for payment, and pay for, all Shares validly tendered and not properly withdrawn promptly following the applicable Offer Expiration Time. The initial Offer Expiration Time will be one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022.
Terms and Conditions of the Offer.    The obligations of Purchaser to accept for purchase, and pay for, all Shares tendered pursuant to the Offer are subject to the prior satisfaction or waiver (to the extent waiver is permitted under applicable law) of the conditions set forth in Section 15 — “Conditions of the Offer.” The conditions to the Offer are for the sole benefit of Parent and Purchaser, and Parent and Purchaser may waive, in whole or in part, any condition to the Offer at any time and from time to time, in their sole discretion, other than the Minimum Tender Condition or the Termination Condition, which, in the case of the Minimum Tender Condition, may be waived by Parent and Purchaser with the prior written consent of the Company. Parent and Purchaser expressly reserve the right, at any time to waive, in whole or in part, any Offer condition (other than the Minimum Tender Condition and the Termination Condition), to increase the Offer Price or modify the terms of the Offer, in each case only in a manner not inconsistent with the Merger Agreement, except that Parent and Purchaser are not permitted (without the prior written consent of the Company) to (i) reduce the number of Shares subject to the Offer, (ii) reduce the Offer Price or change the form of consideration payable pursuant to the Offer, (iii) change, amend, modify or waive the Minimum Tender Condition, (iv) add to the Offer conditions or impose any other conditions or requirements on the Offer, (v) change, amend, modify or supplement any existing Offer condition in a manner that is adverse in any respect to the holders of Shares or that would, individually or in the aggregate, reasonably be expected to prevent or delay the consummation of the Offer or the Merger (except to effect an extension to the Offer to the extent expressly permitted the Merger Agreement or to validly terminate the Merger Agreement in accordance with Article VII of the Merger Agreement) or impair the ability of Parent or Purchaser to
 
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consummate the Offer, (vi) except as otherwise required or expressly permitted by the Merger Agreement, extend or otherwise change, amend or modify the Offer Expiration Time, (vii) provide for any “subsequent offering period” within the meaning of Rule 14d-11 under the Exchange Act, (viii) terminate the Offer or (ix) otherwise change, amend, modify or supplement the Offer in any manner adverse to the holders of Shares or in any manner that delays, interferes with, hinders or impairs the consummation of the Offer. Subject to certain exceptions in the Merger Agreement, the Offer may not be terminated or withdrawn prior to its scheduled Offer Expiration Time (as extended and re-extended in accordance with the Merger Agreement), unless the Merger Agreement is terminated in accordance with Article VII of the Merger Agreement.
Extensions of the Offer.    The Merger Agreement requires that Purchaser will, and Parent will cause Purchaser to, extend the Offer (i) for the minimum period as required by any applicable law or any rule, regulation, interpretation or position of the SEC, the staff thereof or NASDAQ or the staff thereof, applicable to the Offer, the Schedule 14D-9 or the Offer documents; provided, however, that Purchaser will not be required to extend the Offer to a date later than the Termination Date, (ii) if, at the then-scheduled Offer Expiration Time, the Company has delivered written notice to Parent in accordance with the Merger Agreement that the Company intends to effect an Adverse Recommendation Change (as defined below) and/or terminate the Merger Agreement due to its receipt of a Superior Proposal or the occurrence of an Intervening Event (each, as defined below), the Offer Expiration Time will be extended on one or more occasions so that the Offer Expiration Time does not occur earlier than the close of business on the second business day after the applicable notice period in the Merger Agreement has expired; provided, however, that Purchaser will not be required to extend the Offer to a date later than the Termination Date, (iii) if, at the then-scheduled Offer Expiration Time, the Company brings or will have brought any legal action in accordance with the Merger Agreement to enforce specifically the performance of the terms and provisions of the Merger Agreement by Parent or Purchaser, the Expiration Time will be extended (A) for the period during which such action is pending or (B) by such other time period established by the governmental authority presiding over such action, as the case may be; provided, however, that Purchaser will not be required to extend the Offer to a date later than the Termination Date, (iv) if, at the then-scheduled Offer Expiration Time, any of the offer conditions (other than those conditions that by their terms are to be satisfied at the Offer closing) has not either been (A) satisfied or (B) waived by Parent and Purchaser (to the extent such waiver is permitted under the Merger Agreement and applicable law), then Purchaser will, and Parent will cause Purchaser to, extend the Offer on one or more occasions in consecutive periods of five business days each (with each such period to end at 5:00 p.m., New York City time, on the last business day of such period) (or such other duration as may be agreed to by Parent and the Company) in order to permit the satisfaction of such Offer condition or conditions; provided, that if at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Minimum Tender Condition and the other Offer conditions that by their terms are to be satisfied at the Offer closing) will have been satisfied or waived (to the extent waiver is permitted under the Merger Agreement and applicable law), Purchaser may, and Purchaser will upon receipt of the Company’s written request, extend the Offer for up to four occasions, in the aggregate, in consecutive periods of five business days each (or for such longer period as may be agreed in writing by Parent and the Company); provided, further, that if at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the Offer closing) will have been satisfied or waived, Purchaser will, and Parent will cause Purchaser to, extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022; provided, further, that Purchaser will not be required to extend the Offer to a date later than the Termination Date.
Structure of the Merger; Certificate of Incorporation; Bylaws; Directors and Officers
As soon as practicable following the consummation of the Offer, and subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions), Purchaser will merge with and into the Company, and the Company will survive the Merger as a wholly-owned subsidiary of Parent. At the effective time, all of the property, rights, privileges, powers and franchises of the Company and Purchaser will vest in the surviving corporation, and all debts, liabilities, restrictions and duties of the Company and Purchaser will become the debts, liabilities, restrictions and duties of the surviving corporation, all as provided under the DGCL, including Section 251(h) thereof. As of the effective time,
 
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the certificate of incorporation of the surviving corporation will be amended and restated as a result of the Merger so as to read in its entirety as set forth in the applicable annex to the Merger Agreement, and the bylaws of the surviving corporation will be amended and restated to be the same as the bylaws of Purchaser in effect immediately before the effective time (except that references to Purchaser’s name shall be replaced by references to “CDK Global, Inc.”), and the provisions with respect to limitation of liabilities to directors and officers and indemnification in such certificate of incorporation and bylaws will not be amended, repealed or otherwise modified in any manner that would adversely in any respect affect the rights of individuals who were directors, officers, employees or agents of the Company or any subsidiary of the Company.
The directors of Purchaser immediately prior to the effective time will be the directors of the surviving corporation and the officers of the Company immediately prior to the effective time will be the officers of the surviving corporation. Such directors and officers will hold office until their respective successors are duly elected or appointed and qualified or until the earlier of their death, resignation or removal in accordance with the certificate of incorporation and bylaws of the surviving corporation.
The Merger Agreement provides the Merger will be effected under Section 251(h) of the DGCL and will be effected without a vote of the Company stockholders.
Effect of the Merger on the Shares
At the effective time, each Share issued and outstanding immediately prior to the effective time (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time, (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) that are held by a holder who is entitled to demand appraisal and has demanded properly the appraisal for such Shares in accordance with the DGCL, will be cancelled and automatically converted into the right to receive the Offer Price (without interest and less any applicable withholding taxes) in cash (which we refer to as the “Merger Consideration”). Shares described in clauses (i), (ii) and (iii) above, which we refer to as “Excluded Shares,” will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv), which we refer to as “Dissenting Shares,” will entitle their holders only to the rights granted to them under Section 262 of the DGCL (as further described in Section 16 — “Certain Legal Matters; Regulatory Approvals — Dissenters’ Rights”).
At the effective time, each share of capital stock of Purchaser issued and outstanding immediately before the effective time will be converted into and become one (1) fully paid and non-assessable share of common stock of the surviving corporation and will constitute the only outstanding shares of the surviving corporation.
Payment Procedures
Prior to the expiration of the Offer, Parent will (i) appoint a bank or trust company, reasonably acceptable to the Company, to act as agent (the “Paying Agent”) for the purpose of effecting payments to the holders of Shares entitled to receive the Merger Consideration pursuant to the Merger Agreement, and (ii) enter into a paying agent agreement, in customary form and substance reasonably acceptable to the Company, with such Paying Agent for the receipt and payment of such aggregate Merger Consideration in accordance with the Merger Agreement. Parent will be responsible for all expenses of the Paying Agent. Immediately prior to or at the effective time, Parent will deposit, or cause to be deposited, with the Paying Agent, for the benefit of the holders of Shares issued and outstanding immediately prior to the effective time (other than any Excluded Shares and any Restricted Stock Units) cash in an amount sufficient to pay the aggregate Merger Consideration required to be paid pursuant to the Merger Agreement (the “Payment Fund”). The Payment Fund will not be used for any other purpose.
As promptly as practicable following the effective time, but no later than three business days following the effective time, Parent will cause the Paying Agent to mail to each holder of record of a certificate representing one or more Shares converted pursuant to the Merger Agreement a letter of transmittal in customary form, specifying that delivery will be effected, and risk of loss and title to such holder’s Shares will
 
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pass, only upon proper delivery of certificates to the Paying Agent and instructions for surrendering such certificates in exchange for the Merger Consideration.
Upon surrender of a certificate for cancellation to the Paying Agent, together with a duly executed letter of transmittal and any other documents reasonably required by the Paying Agent, the holder of such certificate will be entitled to receive, and the Paying Agent will promptly pay in exchange therefor, the Merger Consideration payable in respect of the number of Shares formerly evidenced by that certificate less any required withholding of taxes. Any certificates so surrendered will be cancelled immediately. No interest will accrue or be paid on any amount payable upon surrender of certificates.
If any Merger Consideration is to be paid and issued to a person other than the person in whose name the surrendered certificate is registered, then the Merger Consideration may be paid or issued to such a transferee so long as (A) the surrendered certificate will be properly endorsed and presented to the Paying Agent or will otherwise be in proper form for transfer and is accompanied by all documents reasonably required by the Paying Agent to evidence and effect such transfer and (B) the person requesting such payment or issuance (x) pays any applicable transfer taxes or (y) establishes to the reasonable satisfaction of Parent and the Paying Agent that all such transfer taxes have already been paid or are not applicable.
No holder of record of book-entry Shares will be required to deliver a certificate or an executed letter of transmittal to the Paying Agent to receive the Merger Consideration in respect of such book-entry Shares. In lieu thereof, such holder of record will be entitled to receive, and the surviving corporation or Parent will cause the Paying Agent to pay and deliver as promptly as reasonably practicable after the effective time (but in no event later than three business days after the effective time to each such holder of record as of the effective time), an amount of U.S. dollars equal to the aggregate amount of Merger Consideration, without interest and less any applicable tax withholding, to which such holder is entitled under the Merger Agreement, and such book-entry Shares will be cancelled immediately. Payment of the Merger Consideration with respect to book-entry Shares will only be made to the person in whose name such book-entry Shares are registered.
Notwithstanding the requirements to surrender a certificate contained in the Merger Agreement, if any certificate will have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming such certificate to be lost, stolen or destroyed and, if reasonably required by the surviving corporation, the execution and delivery by such person of a customary indemnity agreement to provide indemnity against any claim that may be made against it with respect to such certificate, the Paying Agent will pay the Merger Consideration to such person in respect of the Shares represented by such certificate.
At the effective time, the stock transfer books of the Company will be closed and there will be no further registration of transfers on the stock transfer books of the Company of the Shares that were outstanding immediately prior to the effective time.
Parent, Purchaser, the surviving corporation, any of their applicable subsidiaries, any depository agent used by Parent or Purchaser in connection with the Offer and the Paying Agent will be entitled to deduct and withhold from the Merger Consideration and any amounts otherwise payable under the Merger Agreement (including any amounts payable under the Merger Agreement with respect to the cancellation of Company equity awards) such amounts as are required to be deducted or withheld therefrom under the Code, or any applicable state, local or foreign tax law. To the extent that any amounts are so deducted and withheld and paid to the appropriate governmental authorities, those amounts will be treated as having been paid to the person in respect of whom such deduction or withholding was made for all purposes under the Merger Agreement. Each of Parent, the Company and their respective affiliates will promptly notify the other parties if it becomes aware of any such withholding obligation (other than in connection with any (i) compensatory payments, (ii) backup withholding or (iii) withholding under Section 1445 of the Code), and each of the applicable parties will use commercially reasonable efforts to cooperate to obtain any available reduction of or relief from such deduction or withholding.
None of Parent, the surviving corporation or the Paying Agent will be liable to any person in respect of cash from the Payment Fund properly paid to a public official pursuant to any applicable abandoned property, escheat or similar law. If any certificate has not been surrendered prior to the date on which the Merger Consideration in respect of such certificate would otherwise escheat to or become the property of any
 
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governmental authority, any such Merger Consideration in respect of such certificate will, to the extent permitted by applicable law, immediately prior to such date become the property of the surviving corporation or its designated affiliate, free and clear of any claims or interest of any such holders or their successors, assigns or personal representative previously entitled thereto, subject to the claims of any former holder of Shares entitled to payment of Merger Consideration who has not theretofore complied with Article II of the Merger Agreement.
The Paying Agent, as applicable, will invest the Payment Fund as directed by Parent; provided that such investments will be in obligations of or guaranteed by the United States of America in commercial paper obligations rated A-1 or P-1 or better by Moody’s Investors Service, Inc. or Standard & Poor’s Corporation, respectively, in certificates of deposit, bank repurchase agreements or banker’s acceptances of commercial banks with capital exceeding $1 billion, or in money market funds having a rating in the highest investment category granted by a recognized credit rating agency at the time of acquisition or a combination of the foregoing and, in any such case, no such instrument will have a maturity exceeding three months. Any such investment will be for the benefit, and at the risk, of Parent, and any interest or other income resulting from such investment will be for the benefit of Parent; provided that no such investment or losses thereon will affect amounts payable to the holders of Shares pursuant to the Merger Agreement (including in the Offer or the Merger). To the extent there are losses on the Payment Fund for any reason (including Dissenting Shares losing their status as such) is less than the level required to pay the aggregate Merger Consideration payable pursuant to the Merger Agreement, Parent will promptly provide, or will cause the surviving corporation to promptly provide, additional funds, in cash, to the Payment Fund for the benefit of such holders of Shares in the amount of any such losses or other amounts necessary to satisfy the obligations of Parent and the surviving corporation to make prompt payments of the Merger Consideration.
Any portion of the Payment Fund (and any interest thereon) that remains unclaimed by the holders of certificates or book-entry Shares one year after the effective time will be delivered by the Paying Agent to Parent upon demand. Thereafter, any holder of certificates or book-entry Shares who has not complied with the Merger Agreement will look only to Parent, which will remain responsible for payment of the applicable Merger Consideration.
Treatment and Payment of the Company Equity Awards
At the effective time, (i) each Company Option outstanding will, whether vested or unvested, be cancelled and converted into the right to receive an amount in cash equal to the product of (x) the amount by which the Offer Price exceeds the applicable exercise price per Company Option, multiplied by (y) the number of Shares subject to such Company Option (provided that any Company Option with an exercise price equal to or greater than the Offer Price will be cancelled for no consideration) and (ii) each Restricted Stock Unit will become fully vested and be cancelled and converted into the right to receive an amount in cash equal to the product of the Offer Price multiplied by the number of Shares subject to such Restricted Stock Unit, in each case, less any applicable withholding taxes. In addition, at the effective time, each Performance Stock Unit will be cancelled and converted into the right to receive an amount in cash equal to the product of the Offer Price and the number of Shares subject to such Performance Stock Unit immediately before the effective time (assuming that all applicable performance metrics for performance periods that have not been completed as of immediately before the effective time had been achieved (on a cumulative basis and not on an individual performance year basis) at the greater of target level and actual performance measured through the effective time, with the financial performance metrics in respect of any fiscal year commencing after the 2022 fiscal year being deemed achieved at the target level), less any applicable withholding taxes. Such amounts payable in respect of such Company Options, Restricted Stock Units and Performance Stock Units will be paid promptly following the effective time, but in any event no later than three business days following the effective time.
Appraisal Rights
Notwithstanding anything to the contrary in the Merger Agreement, Shares that are outstanding immediately prior to the effective time and that are held by Company stockholders that are entitled to demand appraisal and have demanded properly appraisal for such Shares in accordance with Section 262 of the DGCL (collectively, we refer to such shares as the “Dissenting Shares”) will not be converted into, or
 
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represent the right to receive, the Merger Consideration, unless such holder fails to perfect, withdraws or otherwise loses the right to appraisal. At the effective time, except as otherwise provided by applicable laws, each holder of Dissenting Shares will cease to have any rights with respect to the Dissenting Shares, other than such rights as are granted under Section 262 of the DGCL. Such stockholders will be entitled to receive payment of the appraised value of such shares held by them in accordance with the provisions of Section 262 of the DGCL, except that all Dissenting Shares held by stockholders who have failed to perfect or who effectively have withdrawn or lost their rights to appraisal of such Shares under Section 262 of the DGCL will thereupon be deemed to have been converted into the right to receive the Merger Consideration, without any interest thereon.
The Company is required to give Parent (i) prompt notice of any written demands for appraisal of any Shares received by the Company, withdrawals or attempted withdrawals of such demands and any other instruments served on the Company pursuant to Section 262 of the DGCL and received by the Company prior to the effective time and (ii) the opportunity to participate in all negotiations and proceedings with respect to such demands. The Company will not offer to make or make any voluntary payment with respect to any such demands for appraisal, or compromise or settle or offer to compromise or settle, any such demands for appraisal, or approve any withdrawal of such demands, or commit or agree to do any of the foregoing, in each case without the prior written consent of Parent.
Representations and Warranties; Material Adverse Effect
The Merger Agreement contains representations and warranties of the Company and of Parent and Purchaser.
Subject to certain exceptions in the Merger Agreement, in the Company Disclosure Letter and as disclosed in the Company’s public filings with the SEC on or after July 1, 2019, the Merger Agreement contains representations and warranties of the Company as to, among other things:

organization, requisite power and authority to carry on its business and good standing and qualification to do business;

foreign qualifications;

corporate authority to enter into the Merger Agreement, and recommendations, consents and approvals relating to the execution, delivery and performance of the Merger Agreement;

enforceability of the Merger Agreement;

subsidiaries;

governmental authorizations;

absence of conflicts and required consents;

authorized share capital of the Company, issued and outstanding equity of the Company and other matters regarding capitalization;

reports, forms, documents and financial statements of the Company required to be filed or furnished with the SEC by the Company since July 1, 2019 and establishment and maintenance of certain disclosure controls and procedures and internal control over financial reporting;

absence of liabilities required to be reflected on the Company’s consolidated balance sheet;

absence of certain events or changes in the business of the Company from January 1, 2022 to April 7, 2022, including an absence of a Company Material Adverse Effect (as defined below);

compliance with applicable laws and permits;

litigation against or involving the Company;

compliance with trade controls and anti-corruption laws;

the Company’s material contracts and enforceability thereof;

the Company’s employee benefit plans, employee relations and related labor matters;
 
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the Company’s tax returns, filings and other tax matters;

compliance with environmental laws, permits issued pursuant to such environmental laws and absence of lawsuits against the Company pertaining to such environmental laws;

the Company’s intellectual property and compliance with data privacy laws;

real estate owned and leased by the Company;

title to real property and other assets;

insurance;

absence of affiliate transactions;

absence of rights agreements and applicable anti-takeover statutes or regulations;

confirmation with respect to information supplied for this Schedule TO and statements made in other documents required to be filed with the SEC or distributed to the Company’s stockholders in connection with the Offer;

opinion of the Company’s financial advisor; and

brokers’ fees and expenses.
 
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Subject to certain exceptions in the Merger Agreement, the Merger Agreement also contains representations and warranties of Parent and Purchaser as to, among other things:

organization, requisite power and authority to carry on its business and good standing and qualification to do business;

foreign qualifications;

corporate authority to enter into the Merger Agreement, and consents and approvals relating to the execution, delivery and performance of the Merger Agreement;

governmental authorizations;

absence of conflicts and required consents;

capitalization and operations of Purchaser and absence of ownership of any Shares;

that Parent has provided the Company true, accurate and complete copies of the Equity Commitment Letter and the Debt Commitment Letter, pursuant to which the Investors and the debt financing sources party to the Debt Commitment Letter have committed to provide, subject to the terms and conditions contained therein, the amounts set forth therein;

the solvency of the surviving corporation;

litigation against Parent;

absence of arrangements with the Company Board or management of the Company;

absence of certain agreements with stockholders of the Company;

Parent’s investment intention;

broker’s fees and expenses;

that Parent and Purchaser have provided the Company a true, complete and correct copy of the limited guaranty of the Investors;

no interest in the Company’s competitors;

information supplied for the Schedule 14D-9 and statements made in other documents required to be filed with the SEC or distributed to the Company’s stockholders in connection with the Offer; and

non-reliance on estimates, projections and forecasts of the Company.
Some of the representations and warranties in the Merger Agreement are qualified by materiality qualifications or a “Company Material Adverse Effect” qualification with respect to the Company or a “Parent Material Adverse Effect” with respect to Parent or Purchaser.
For purposes of the Merger Agreement, a “Company Material Adverse Effect” means any fact, change, event, development, occurrence or effect that, individually or in the aggregate with any one or more other effects materially adversely affects the business, assets, results of operations or financial condition of the Company and its subsidiaries, taken as a whole.
However, no fact, change, event, development, occurrence or effect arising out of or resulting from any of the following will constitute, or be taken into account, individually or in the aggregate, in determining whether a Company Material Adverse Effect has occurred or would reasonably be expected to occur:

conditions in the United States, foreign or global economy or capital or financial markets generally, including changes in interest, currency or exchange rates;

general legal, tax, regulatory, political or business conditions in the countries in which the Company or any of its subsidiaries does business;

changes in general market, regulatory, political, business, economic or other conditions in the industries in which the Company or any of its subsidiaries participates;

changes or prospective changes in law or GAAP, or any changes or prospective changes in the interpretation or enforcement of any of the foregoing;
 
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the negotiation, execution, announcement, pendency, performance or compliance with the terms of the Merger Agreement or the consummation of the transactions (other than for purposes of certain representations and warranties in the Merger Agreement and certain Offer conditions as they relate to such representations and warranties), including the impact thereof on relationships, contractual or otherwise, with customers, suppliers, partners, regulators, lenders or employees, or any legal action arising from allegations of breach of fiduciary duty or violation of law relating to the Merger Agreement or the transactions contemplated thereby;

acts of war (whether or not declared), sabotage or terrorism (including cyberattacks, cyber-intrusions, cyber-terrorism or other cybersecurity breaches), or any escalation or worsening of any such acts of war (whether or not declared), sabotage or terrorism (including cyberattacks, cyber-intrusions, cyber-terrorism or other cybersecurity breaches);

volcanoes, tsunamis, earthquakes, hurricanes, tornados or other natural disasters, weather-related events, casualty events or acts of God or other force majeure events;

epidemic, pandemic or disease outbreak (including COVID-19) or any COVID-19 measures or other restrictions that relate to, or arise out of, any epidemic, pandemic or disease outbreak (including COVID-19) or material worsening of such conditions threatened or existing as of the date of the Merger Agreement;

any action taken by the Company or its subsidiaries that is required by the Merger Agreement or at Parent’s written request;

any change resulting or arising from the identity of, or any facts or circumstances relating to, Parent, Purchaser or any of their respective affiliates;

any breach of the Merger Agreement by Parent or Purchaser;

the settlement of any legal action outstanding as of the date of the Merger Agreement in accordance with the Merger Agreement; or

any change in the market price, trading volume or ratings of any securities or indebtedness of the Company or any of its subsidiaries, any change or prospective change of the ratings or the ratings outlook for the Company or any of its subsidiaries by any applicable rating agency and the consequences of such ratings or outlook decrease, or the change in, or failure of the Company to meet, or the publication of any report regarding, any internal or public projections, forecasts, guidance, budgets, predictions or estimates of or relating to the Company or any of its subsidiaries for any period, including with respect to revenue, earnings, profit, cash flow or cash position (it being understood that the underlying causes of such change or failure may, if they are not otherwise excluded from the definition of Company Material Adverse Effect, be deemed to constitute and may be taken into account in determining whether a Company Material Adverse Effect has occurred or will occur).
However, with respect to any fact, change, event, development, occurrence or effect arising out of or resulting from the exceptions described in the first, second, third, fourth, sixth, seventh and eighth bullet points above, such exceptions will only apply to the extent that such fact, change, event, development, occurrence or effect disproportionately affects the Company and its subsidiaries, taken as a whole, compared to other companies in the industries in which the Company and its subsidiaries operate, in which case then, to the extent not otherwise excluded from the definition of Company Material Adverse Effect, only such incremental disproportionate impact or impacts will be taken into account in determining whether there has been, or would reasonably be expected to be, a Company Material Adverse Effect.
For the purpose of the Merger Agreement, a “Parent Material Adverse Effect” means any fact, change, event, development, occurrence or effect that, individually or in the aggregate with one or more other effects, has prevented or materially impeded or interfered with, hindered or delayed, or would reasonably be expected to prevent or materially impede, interfere with, hinder or delay the ability of Parent or Purchaser to perform their obligations under the Merger Agreement or to consummate the transactions contemplated thereunder on a timely basis.
 
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Conduct of Business Pending the Merger
The Merger Agreement provides that, during the period commencing on April 7, 2022, and prior to the earlier of the effective time and the termination of the Merger Agreement in accordance with its terms, except as (1) required or contemplated by the Merger Agreement, (2) set forth in the Company Disclosure Letter, (3) required by applicable law, order or to comply with any notice from a governmental authority, (4) the Company determines in good faith may be necessary or advisable in accordance with COVID-19 measures or otherwise taken (or not taken) by the Company or any of its subsidiaries in reasonable response to COVID-19-related developments or (5) may be consented to in writing by Parent (such consent not to be unreasonably withheld, delayed or conditioned), the Company will, and will cause each of its subsidiaries to, use its and their reasonable best efforts (i) to conduct its business in all material respects in the ordinary course and (ii) to the extent consistent with the foregoing, to preserve its and each of its subsidiaries’ business organizations (including the service of key employees) substantially intact and preserve existing relations with key customers, suppliers and other persons with whom the Company or its subsidiaries have significant business relationships, in each case, consistent with past practice (provided, however, that no action by the Company or any of its subsidiaries, as applicable, with respect to matters specifically addressed by any provision in the following paragraph will be deemed a breach unless such action would constitute a breach of such other provision of the following paragraph).
Further, the Merger Agreement also provides that, during the period commencing on April 7, 2022, and prior to the earlier of the effective time and the termination of the Merger Agreement in accordance with its terms, except as (1) required or contemplated by the Merger Agreement, (2) set forth in the Company Disclosure Letter, (3) required by applicable law, order or to comply with any notice from a governmental authority, (4) the Company determines in good faith may be necessary or advisable in accordance with COVID-19 measures or otherwise taken (or not taken) by the Company or any of its subsidiaries in reasonable response to COVID-19-related developments or (5) may be consented to in writing by Parent (such consent not to be unreasonably withheld, delayed or conditioned), the Company will not, and will cause each of its subsidiaries not to, take any of the following actions, without the prior written consent of Parent (such consent not to be unreasonably withheld, delayed or conditioned):

amend any of the Company’s organizational documents (other than immaterial or ministerial changes);

other than transactions among the Company and its wholly owned subsidiaries or among the Company’s wholly owned subsidiaries, issue, sell, encumber or grant any shares of its capital stock or other equity or voting interests, or any securities or rights convertible into, exchangeable or exercisable for, or evidencing the right to subscribe for any shares of its capital stock or other equity or voting interests, or any rights, warrants or options to purchase any shares of its capital stock or other equity or voting interests; provided that the Company may issue or grant Shares or other securities as required pursuant to equity awards or obligations under the Company benefit plans outstanding on the date of the Merger Agreement in accordance with the terms of the applicable Company benefit plan in effect on the date of the Merger Agreement or granted after the date of the Merger Agreement not in violation of the Merger Agreement;

other than transactions among the Company and its wholly owned subsidiaries or among the Company’s wholly owned subsidiaries, redeem, purchase or otherwise acquire any of its outstanding Shares or any other equity or voting interests of the Company or any of its subsidiaries, or any rights, warrants or options to acquire any shares of its capital stock or other equity or voting interests of the Company or any of its subsidiaries (other than pursuant to the exercise, vesting or settlement of Company Options or the forfeiture of or withholding of taxes with respect to Company equity awards);

in the case of the Company, establish a record date for, declare, set aside for payment or pay any dividend on, or make any other distribution in respect of, any shares of its capital stock or other equity or voting interests other than with respect to (x) dividends and distributions by a direct or indirect wholly owned subsidiary of the Company to its direct or indirect parent or (y) any regular quarterly cash dividend made by the Company to holders of Shares, in an amount of up to $0.15 per Share for any such quarterly dividend; provided, that, the date on which any such quarterly dividend is declared, the record date and the payment date with respect to any quarterly dividend will, in each case,
 
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be no earlier than the one-year anniversary of such dates for the corresponding fiscal quarter of the preceding year and such dividend will be fully paid by the Company prior to the effective time; provided, further, that, notwithstanding anything to the contrary in the Merger Agreement, in the event any such quarterly dividend has been declared by the Company after the date of the Merger Agreement and the record date for such quarterly dividend has occurred prior to the Closing, the Company will be permitted to take such action as may be reasonably required or necessary to fully pay such quarterly dividend prior to the effective time;

split, combine, subdivide or reclassify any Shares or any other equity or voting interests of the Company or any of its subsidiaries;

adopt or implement any stockholder rights plan (or similar plans or arrangements);

increase the compensation or benefits payable or to become payable to any of its directors, officers, employees or consultants, except in the case of an employee with an annual base salary of less than $225,000 for increases in salary, annual bonus targets, hourly wage rates and benefits in the ordinary course of business consistent with past practice (x) of up to 4% in the aggregate in connection with the Company’s regular annual compensation cycle or (y) in conjunction with promotions in the ordinary course of business consistent with past practice to fill a position (excluding positions of Key Employees (as defined below)) identified as open as of the date of the Merger Agreement or that becomes open due to a departure following the date of the Merger Agreement;

establish, adopt, enter into, amend, renew or terminate any Company benefit plan or any employee benefit plan, agreement, policy, program or commitment that, if in effect on the date of the Merger Agreement, would be a Company benefit plan (other than amendments to a Company benefit plan associated with the annual open enrollment process in the ordinary course of business or plan renewals on substantially similar terms in the ordinary course of business);

grant any severance or termination pay or retention or change-in-control payments to any current or former director, officer, employee or consultant;

enter into any collective bargaining agreement or other labor contract with any labor organization, works council, trade union, labor association or other employee representative;

take any action to accelerate the vesting, payment or funding of any compensation or benefits to any current or former director, officer, employee or consultant;

implement any workforce reductions or furloughs of more than ten employees or that would eliminate an entire job function or employee group;

terminate the Chief Executive Officer of the Company, any of his direct reports, or any of his direct reports’ direct reports with a title or position at the level of Senior Vice President or higher (in each case, other than for cause) (each, a “Key Employee”);

hire (x) anyone who would constitute a Key Employee or (y) a number of employees such that the aggregate number of employees of the Company and its subsidiaries at any time exceeds 6,900 (excluding any interns) (it being understood, for the avoidance of doubt, that this clause (y) is not intended to permit any hiring of employees outside the ordinary course or on terms inconsistent with past practice);

utilize a number of independent contractors or temporary employees that (x) exceeds 110% of the Company’s and its subsidiaries’ peak utilization number of such individuals over the last 12 months or (y) is outside the ordinary course of business consistent with past practice for the last 12 months except, in each case (I) to the extent required by applicable law (including Section 409A of the Code), the Merger Agreement or any Company benefit plan or other agreement as in effect on the date of the Merger Agreement or (II) as contemplated by the Company Disclosure Letter;

make or authorize capital expenditures for property, plant and equipment, except (A) consistent in all material respects with information that was previously made available to Parent, (B) in connection with the repair or replacement of facilities, properties or assets destroyed or damaged due to casualty or accident (whether or not covered by insurance), (C) capital expenditures that are required
 
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pursuant to an order that is applicable to the Company or any of its subsidiaries or (D) otherwise in an aggregate amount for all such capital expenditures made pursuant to this clause (D) not to exceed $2,500,000 in the aggregate;

make any acquisition of (including by merger, consolidation or acquisition of stock or assets or otherwise), except in respect of any merger, consolidation or business combination among the Company and its wholly owned subsidiaries or among the Company’s wholly owned subsidiaries, or make any investment in any material equity interest in any person or any division, business, property or assets thereof, except in the ordinary course of business (which for the avoidance of doubt and without limitation of the foregoing will be deemed to include acquisitions of inventory in the ordinary course of business), if the aggregate amount of consideration paid or transferred by the Company and its subsidiaries in connection with all such transactions would exceed $15,000,000, provided, that the Company will provide advance written notice to Parent of all such transactions regardless of the aggregate amount of consideration to be paid or transferred in connection with such transactions;

form any subsidiary; or enter into any joint venture agreement, partnership, or limited liability company agreement (other than with respect to a partnership or limited liability company that is wholly owned by the Company or any of its wholly owned subsidiaries);

sell, transfer, mortgage, encumber, dispose of or otherwise subject to any lien (other than certain permitted liens) or otherwise dispose of any of its material assets or material properties, by merger, consolidation, asset sale or other business combination (including formation of a joint venture), in each case, except (A) in the ordinary course of business, (B) dispositions of obsolete or worthless assets, (C) sales of immaterial assets for a purchase price of not more than $15,000,000 in the aggregate or (D) transfers among the Company and its wholly owned subsidiaries;

enter into any new line of business outside its existing business as of the date of the Merger Agreement;

except as contemplated by the Merger Agreement, adopt or enter into a plan of complete or partial liquidation, dissolution, recapitalization or other reorganization (other than with respect to or among wholly owned subsidiaries of the Company);

incur, prepay or refinance any indebtedness for borrowed money, issue or sell any debt securities or warrants or other rights to acquire any debt securities of the Company or any of its subsidiaries, guarantee any such indebtedness or any debt securities of another person or enter into any “keep well” or other agreement to maintain any financial statement condition of another person (collectively, “Indebtedness”), except for (1) intercompany Indebtedness among the Company and its wholly owned subsidiaries, (2) letters of credit, bank guarantees, security or performance bonds or similar credit support instruments, overdraft facilities or cash management programs, in each case issued, made or entered into in the ordinary course of business and solely for the benefit of the Company or a wholly owned Subsidiary thereof, (3) Indebtedness incurred under the Company’s existing credit agreement that does not increase at any given time, from time to time, the outstanding balance under such agreement by more than $5,000,000 and (4) other Indebtedness in an aggregate principal amount not to exceed $2,000,000;

enter into any swap or hedging transaction or other derivative agreements other than in the ordinary course of business; or make any loans, capital contributions or advances to any person other than to the Company or any wholly owned subsidiary of the Company;

enter into, renew, extend, modify, amend, waive any material rights under or terminate (A) any contract that is or would constitute a material contract, other than contracts with customers or suppliers in the ordinary course of business or upon the expiration of any such material contract in accordance with its terms or (B) any contract or series of contracts with a customer involving aggregate proceeds in excess of $3,000,000 per annum that, taken as a whole, materially deviates from current contracts or past practice;

make any material changes in financial accounting methods, principles or practices affecting the consolidated assets, liabilities or results of operations of the Company and its subsidiaries as in effect as of June 30, 2021, except insofar as may be required (A) by GAAP (or any interpretation thereof),
 
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(B) by any applicable law, (C) by any governmental authority (including the Financial Accounting Standards Board or any similar organization) or (D) to permit the audit of the Company’s financial statements in compliance with GAAP;

except in the ordinary course of business, make, change or revoke any material tax election, change any material tax accounting period, adopt or change any material method of tax accounting, settle or compromise any material tax audit, investigation, claim, proceeding or assessment of the Company or any of its subsidiaries, surrender any right to claim a tax refund, offset or other reduction in tax liability of the Company or any of its subsidiaries with respect to a material amount of taxes or file any material amendment to an income or other material tax return;

settle or compromise any pending or threatened legal action other than settlements or compromises of any pending or threatened legal action (A) in the ordinary course of business or (B) if the amount of any such settlement or compromise does not exceed $10,000,000 individually or $20,000,000 in the aggregate; provided that no settlement or compromise of any pending or threatened legal action may involve any injunctive or equitable relief or impose restrictions on the business activities of the Company and its subsidiaries (subject to certain exceptions in the Merger Agreement);

sell, assign, license (other than certain non-material licenses), abandon, transfer or otherwise dispose of any material intellectual property rights to any person other than the Company or a subsidiary of the Company, other than the expiration of owned intellectual property rights at the end of its maximum statutory term or abandonment of registrations or applications for intellectual property rights in the ordinary course of business;

terminate, allow to lapse or expire, suspend, modify or otherwise take any step to limit the effectiveness or validity of, or fail to maintain as valid and in full force and effect, any material permit; or

authorize any of, or commit or agree, in writing or otherwise, to take any of, the foregoing actions.
Other Covenants and Agreements
No Solicitation; Takeover Proposal
Except as permitted by the Merger Agreement, the Company will, and will cause each of its subsidiaries and its and their officers and its and their officers’ direct reports and its and their directors to, and will instruct and use its reasonable best efforts to cause its other representatives to (i) immediately cease any solicitation, discussions or negotiations with any persons with respect to a Takeover Proposal (as defined below) that existed on or prior to the date of the Merger Agreement, (ii) during the period commencing on April 7, 2022, and prior to the earlier of the effective time and the termination of the Merger Agreement in accordance with its terms, not, directly or indirectly (A) solicit, knowingly encourage or knowingly facilitate the submission of any inquiries regarding, or the making of any proposal or offer that constitutes, or would reasonably be expected to lead to, a Takeover Proposal, (B) other than informing third parties of the existence of these provisions, engage in, continue or otherwise participate in any discussions or negotiations regarding, or furnish to any other person any non-public information in connection with any proposal or offer that constitutes, or would reasonably be expected to lead to, a Takeover Proposal, (C) approve, adopt, endorse, recommend or enter into any letter of intent, memorandum of understanding, agreement in principle, merger agreement, acquisition agreement or other similar contract providing for a Takeover Proposal or with respect to any proposal or offer that would reasonably be expected to lead to, a Takeover Proposal (other than an Acceptable Confidentiality Agreement (as defined below) in accordance with the Merger Agreement) (any such letter of intent, memorandum of understanding, agreement or contract, an “Alternative Acquisition Agreement”) or (D) take any action to exempt any person (other than Parent and its subsidiaries) from the restrictions on “business combinations” or any similar provision contained in applicable takeover laws or the Company’s organizational documents; (iii) subject to the directors’ fiduciary duties under applicable law, waive or release any preexisting explicit or implicit standstill provisions or similar agreements and “anti-clubbing” or similar requirements contained in any other contract, or (iv) resolve or agree to do any of the foregoing. The Company will promptly (and in any event within five business days after April 7, 2022) request each person that has prior to the date of the Merger Agreement executed a confidentiality agreement in connection with its consideration of a proposed Takeover Proposal within the 15 month period immediately preceding the date of the Merger Agreement to, in accordance with the terms of such
 
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agreement, return or destroy all confidential information furnished prior to the execution of the Merger Agreement to or for the benefit of such person by or on behalf of the Company or any of its subsidiaries.
Under the Merger Agreement, an “Acceptable Confidentiality Agreement” means a confidentiality agreement (i) containing terms relating to confidentiality of information that are, in the aggregate, no less restrictive of the third party that is party to such agreement and its affiliates and representatives, or in the aggregate more favorable to the Company, than the terms relating to confidentiality of information set forth in the Confidentiality Agreement (as defined below) with respect to Parent and its affiliates and representatives, and for the avoidance of doubt, any such confidentiality agreement need not restrict the making of, or amendment or modification to any Takeover Proposal, and (ii) that does not prohibit the Company from providing any information to Parent in accordance with the non-solicitation provisions under the Merger Agreement or otherwise prohibit the Company from complying with its obligations under the non-solicitation provisions under the Merger Agreement.
Under the Merger Agreement, a “Takeover Proposal” means any proposal or offer from any person or group (other than Parent and its subsidiaries) relating to, in a single transaction or series of related transactions, any direct or indirect (i) acquisition or license of more than 25% of the consolidated assets of the Company and its subsidiaries (based on the fair market value thereof), including through the acquisition of one or more subsidiaries of the Company owning such assets, (ii) acquisition of more than 25% of the outstanding Shares or voting power of the Company or of the equity interests of one or more subsidiaries of the Company whose assets, individually or in the aggregate, constituted 25% or more of the consolidated assets of the Company and its subsidiaries (based on the fair market value thereof), (iii) tender offer or exchange offer that if consummated would result in any person or group beneficially owning more than 25% of the outstanding Shares or voting power of the Company or (iv) merger (including a reverse merger in which the Company is the surviving corporation), consolidation, share exchange, business combination, recapitalization, liquidation, dissolution or similar transaction involving the Company pursuant to which such person or group (or the stockholders of any person) would acquire, directly or indirectly, more than 25% of the consolidated assets of the Company and its subsidiaries (based on the fair market value thereof) or more than 25% of the aggregate voting power of the Company or of the surviving entity in a merger, consolidation, share exchange or other business combination involving the Company or the resulting direct or indirect parent of the Company or such surviving entity or of the equity interests of one or more subsidiaries of the Company whose assets, individually or in the aggregate, constituted 25% or more of the consolidated assets of the Company and its subsidiaries (based on the fair market value thereof), in each case, other than the transactions contemplated by the Merger Agreement; provided, however, that the Merger Agreement and the transactions contemplated by the Merger Agreement will not be deemed a Takeover Proposal.
Receipt of Takeover Proposal
Prior to the Acceptance Time, if the Company or any of its representatives receives a bona fide written Takeover Proposal, which Takeover Proposal did not result from any breach of the non-solicitation provisions under the Merger Agreement, (i) the Company and its representatives may contact such person or group of persons making the Takeover Proposal solely to clarify the terms and conditions thereof or to request that any Takeover Proposal made orally be made in writing and (ii) if the board of directors of the Company (the “Company Board”) determines in good faith, after consultation with its financial advisors and outside legal counsel, that such Takeover Proposal constitutes or could reasonably be expected to result in a Superior Proposal, and that the failure to take such action described in clauses (x) and (y) below would be inconsistent with the directors’ fiduciary duties under applicable law, then the Company, the Company Board and any of their respective representatives may (x) enter into an Acceptable Confidentiality Agreement with the person or group of persons making the Takeover Proposal and furnish pursuant to an Acceptable Confidentiality Agreement information (including non-public information) with respect to the Company and its subsidiaries to the person or group of persons who has made such Takeover Proposal and its or their respective representatives or potential sources of financing and their representatives; provided that the Company will promptly (and in any event within 24 hours) provide to Parent any such non-public information concerning the Company or any of its subsidiaries that is provided to any person given such access to the extent it was not previously provided to Parent or its representatives and (y) engage in or otherwise participate in discussions or negotiations with the person or group of persons and its or their representatives and
 
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potential sources of financing and their representatives regarding such Takeover Proposal; provided, in the case of clauses (x) and (y), that at or prior to the first time that the Company furnishes any such information to or participates in any discussions or negotiations with any person on or after the date of the Merger Agreement, the Company will provide written notice to Parent of such determination in good faith of the Company Board as provided for above.
Under the Merger Agreement, a “Superior Proposal” means any bona fide written Takeover Proposal that did not result from a violation of the non-solicitation provisions under the Merger Agreement that the Company Board has determined in its good faith judgment after consultation with outside legal counsel and its financial advisor (i) would be more favorable to the Company’s stockholders than the Offer, the Merger and the other transactions contemplated by the Merger Agreement (but excluding the financing described under “Financing” below) and (ii) is reasonably capable of being completed, taking into account all legal, regulatory, financial, financing and other aspects of such proposal and of the Merger Agreement; provided, that for purposes of the definition of “Superior Proposal”, the references to “25%” in the definition of Takeover Proposal will be deemed to be references to “50%”.
Notice of Takeover Proposal
During the period commencing on April 7, 2022, and prior to the earlier of the effective time or the termination of the Merger Agreement in accordance with its terms, the Company will (i) promptly (and in any event within 36 hours after knowledge of receipt by an officer or director of the Company) notify Parent if any inquiries, proposals or offers with respect to, or that would reasonably be expected to lead to, a Takeover Proposal are received by the Company or any of its representatives, (ii) provide to Parent the identity of the person or group of persons making such inquiries, proposals or offers and a copy of any Takeover Proposal (including any proposed term sheet, letter of intent, acquisition agreement or other agreement or other supporting materials with respect thereto, and any amendments thereto) and a summary of any material unwritten terms and conditions of any Takeover Proposal (and any amendments thereto) and (iii) keep Parent reasonably informed of any material developments, discussions or negotiations regarding any Takeover Proposal (and any amendments thereto) on a reasonably prompt basis (and in any event within 36 hours after knowledge by an officer or director of the Company of such material development, discussion or negotiation).
Company Board Recommendation; Adverse Recommendation Change; Fiduciary Exception
The Company has represented in the Merger Agreement that the Company Board has, on terms and subject to the conditions set forth in the Merger Agreement: (a) declared it advisable to enter into the Merger Agreement and approved the execution, delivery and performance of the Merger Agreement in accordance with its terms and the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement in accordance with the DGCL and (b) resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares in the Offer (such recommendation, the “Company Board Recommendation”).
Except as otherwise provided in the Merger Agreement, neither the Company Board nor any committee thereof will (i) (A) withdraw or withhold (or modify, amend or qualify in a manner adverse to Parent), or publicly propose to withdraw or withhold (or modify, amend or qualify in a manner adverse to Parent), the Company Board Recommendation, (B) recommend the approval or adoption of, declare advisable, or approve or adopt, or publicly propose to recommend, declare advisable, approve or adopt, any Takeover Proposal, (C) fail to include the Company Board Recommendation in the Schedule 14D-9, (D) fail to recommend, in a Solicitation/Recommendation Statement on Schedule 14D-9, against any Takeover Proposal subject to Regulation 14D under the Exchange Act within ten business days after commencement of such Takeover Proposal (or, if earlier, by the close of business on the business day immediately preceding the scheduled date of the Acceptance Time) or (E) after public announcement of a Takeover Proposal (other than a Takeover Proposal subject to Regulation 14D under the Exchange Act), fail to publicly affirm the Company Board Recommendation within five business days after a written request by Parent to do so (or, if earlier, by the close of business on the business day immediately preceding the scheduled date of the Acceptance Time) (it being understood that the Company will have no obligation to make such reaffirmation on more than one occasion with respect to any such Takeover Proposal (it being understood that the
 
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Company will also, if so requested by Parent, make one reaffirmation (but no more than one reaffirmation) on each amendment of each such Takeover Proposal)) (any action described in this clause (i) being referred to as an “Adverse Recommendation Change”) or (ii) approve, recommend, or enter into any Alternative Acquisition Agreement (other than an Acceptable Confidentiality Agreement in accordance with the Merger Agreement).
At any time prior to the Acceptance Time, and subject to compliance with the non-solicitation provisions under the Merger Agreement, if in response to a bona fide written Takeover Proposal received by the Company Board after the date of the Merger Agreement that did not result from a breach of the Merger Agreement, that has not been withdrawn and that the Company Board has determined in good faith, after consultation with its financial advisors and outside legal counsel, constitutes a Superior Proposal, the Company Board may (x) make an Adverse Recommendation Change or (y) provided that the Company and its subsidiaries are not in breach of these non-solicitation provisions in any material respect, terminate the Merger Agreement to enter into an Alternative Acquisition Agreement with respect to such Superior Proposal in accordance with the Merger Agreement, or authorize, resolve, agree or propose publicly to take any such action, if all of the following conditions are met: (i) the Company will have (A) provided to Parent four days’ prior written notice, which will (1) state that it has received a Superior Proposal, (2) attach the material terms and conditions of the Superior Proposal (including the consideration offered therein and the identity of the person or group making the Superior Proposal) or a copy of the Alternative Acquisition Agreement and any other material documents related to the Superior Proposal (it being understood and agreed that any amendment to the financial terms (including the form, amount and timing of payment of consideration) or any other material term or condition of such Superior Proposal will require a new notice and a new two day period) and (3) state that, subject to clause (ii) below, the Company Board has determined to effect an Adverse Recommendation Change or to terminate the Merger Agreement in accordance with the terms thereof in order to enter into the Alternative Acquisition Agreement, as applicable, and (B) prior to making such an Adverse Recommendation Change or determining to terminate the Merger Agreement in accordance with the terms thereof, as applicable, made itself or its representatives available during such notice period to discuss potential amendments to the Merger Agreement proposed by Parent that could result in the Alternative Acquisition Agreement ceasing to constitute a Superior Proposal; and (ii) the Company Board will have determined in good faith after consultation with its financial advisors and outside legal counsel, that, in light of such Superior Proposal and taking into account any revised terms timely proposed by Parent, such Superior Proposal continues to constitute a Superior Proposal and that the failure to make such Adverse Recommendation Change or to so terminate the Merger Agreement in accordance with the terms thereof, as applicable, would reasonably be expected to be inconsistent with the directors’ fiduciary duties under applicable law.
Intervening Event
At any time prior to the Acceptance Time, upon the occurrence of an intervening event, the Company Board may make an Adverse Recommendation Change or authorize, resolve, agree or propose publicly to take any such action, if all of the following conditions are met: (i) the Company will have (A) provided to Parent four days’ prior written notice, which will (1) set forth in reasonable detail information describing the intervening event and the basis on which the Company Board intends to effect an Adverse Recommendation Change (it being understood and agreed that any material change to the facts or circumstances of such intervening event will require a new notice and a new two day period) and (2) state that the Company Board has determined to effect an Adverse Recommendation Change and (B) prior to making such an Adverse Recommendation Change, made itself or its representatives available during such notice period to discuss potential amendments to the Merger Agreement proposed by Parent that could result in the intervening event no longer reasonably being expected to be inconsistent with the directors’ fiduciary duties under applicable law; and (ii) the Company Board will have determined, in good faith, after consultation with its outside legal counsel, that in light of such intervening event and taking into account any revised terms proposed by Parent, the failure to make an Adverse Recommendation Change would reasonably be expected to be inconsistent with the directors’ fiduciary duties under applicable law.
Under the Merger Agreement, an “intervening event” means an event, occurrence or fact that materially affects the business, assets or operations of the Company and its subsidiaries, taken as a whole (other than any event, occurrence or fact resulting from a breach of the Merger Agreement by the Company) occurring or
 
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arising after the date of the Merger Agreement that was not known to or reasonably foreseeable by the Company Board as of the date of the Merger Agreement, other than (i) any Takeover Proposal, (ii) any event, occurrence or fact that relates to Parent, Purchaser or any of their affiliates, (iii) changes in the Share price, in and of itself (however, the underlying reasons for such changes may constitute an intervening event) or (iv) the fact that, in and of itself, the Company exceeds any internal or published projections, estimates or expectations of the Company’s revenue, earnings or other financial performance or results of operations for any period, in and of itself (however, the underlying reasons for such events may constitute an intervening event).
Indemnification and Insurance
From and after the effective time, the surviving corporation will, and Parent will cause the surviving corporation to, in each case to the fullest extent permitted under applicable law and the Company’s organizational documents, (i) indemnify, defend and hold harmless, and advance expenses to, each individual who at the effective time is, or at any time prior to the effective time was, a director, officer, employee or agent of the Company or of a subsidiary of the Company (each, an “Indemnitee” and, collectively, the “Indemnitees”) with respect to damages (including amounts paid in settlement or compromise) and expenses (including those of legal counsel) in connection with any legal action (including as may be criminal, civil, administrative or investigative), whenever asserted, based on, pertaining to or arising out of, in whole or in part, (A) the fact that an Indemnitee is or was a director (including in any capacity as a member of any board committee), officer, employee or agent of the Company or any of its subsidiaries or was acting in such capacity, or (B) acts or omissions by an Indemnitee in the Indemnitee’s capacity as a director, officer, employee or agent of the Company or any of its subsidiaries or taken at the request of the Company or any of its subsidiaries (including in connection with serving at the request of the Company or any of its subsidiaries as a representative of another person (including any employee benefit plan)), in each case under clause (A) or (B), at, or at any time prior to, the effective time (including any legal action (including as may be criminal, civil, administrative or investigative) relating, in whole or in part, to the transactions contemplated by the Merger Agreement as well as any actions taken by the Company or any of its subsidiaries or Parent, Purchaser or any of their respective subsidiaries with respect thereto (including any disposition of assets of the surviving corporation or any of its subsidiaries that is alleged to have rendered any of the surviving corporation or any of its subsidiaries insolvent) or relating to the enforcement of this provision of the Merger Agreement or any other indemnification or expense advancement right of any Indemnitee), (ii) promptly pay to each Indemnitee any expenses (including those of legal counsel) as incurred in defending, serving as a witness with respect to or otherwise participating with respect to any claim in advance of the final disposition of any such claim (and without requiring a preliminary determination of entitlement to indemnification, advancement of expenses or exculpation); provided, that, if required by the DGCL, the surviving corporation’s organizational documents or any applicable indemnification agreement, such Indemnitee will provide a written undertaking by him or her or on his or her behalf to repay the amount paid or reimbursed if it is ultimately determined that such Indemnitee is not permitted to be indemnified under applicable law and (iii) assume all obligations of the Company and such subsidiaries to the Indemnitees in respect of indemnification, advancement of expenses and exculpation from liabilities for acts or omissions occurring at or prior to the effective time as provided in the Company’s organizational documents as in effect on the date of the Merger Agreement or in any agreement in existence as of the date of the Merger Agreement providing for indemnification between the Company or any of its subsidiaries and any Indemnitee, each of which will survive the Merger and will continue in full force and effect in accordance with their terms (it being agreed that after the Closing any such rights applicable to any of the officers or directors of the Company will be mandatory rather than permissive, if applicable), and Parent will and will cause the surviving corporation and its subsidiaries to perform such obligations thereunder. Without limiting the foregoing, Parent, from and after the effective time, will cause, unless otherwise required by law, the certificate of incorporation and bylaws of the surviving corporation to contain provisions no less favorable to the Indemnitees with respect to limitation of liabilities of directors and officers and indemnification than are set forth as of the date of the Merger Agreement in the Company’s organizational documents, which provisions will not be amended, repealed or otherwise modified in a manner that would adversely in any respect affect the rights thereunder of the Indemnitees.
In the event of any legal action (including as may be administrative or investigative) related to the acts or omissions covered under this provision of the Merger Agreement (i) Parent and the surviving corporation
 
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will cooperate with the Indemnitee and its insurer in the defense of any such claim and will provide access to properties and individuals as reasonably requested and furnish or cause to be furnished records, information and testimony, and attend such conferences, discovery proceedings, hearings, trials or appeals, as may be reasonably requested in connection therewith and (ii) the surviving corporation will not settle, compromise or consent to the entry of any judgment or otherwise seek termination with respect thereto in any claim pending or threatened in writing to which any Indemnitee is a party, unless such settlement, compromise, consent or termination includes an effective and enforceable unconditional release of such Indemnitee from all liability arising out of such claim or the Indemnitee otherwise consents thereto in writing.
Prior to the Closing, the Company will use its reasonable best efforts to purchase a “tail” or “runoff” officers’ and directors’ liability insurance policy in respect of acts or omissions occurring prior to the effective time covering each such person currently (and any additional persons who prior to the effective time become) covered by the Company’s officers’ and directors’ liability insurance policy on terms that in all respects, including with respect to coverage, conditions, retentions, deductibles and amounts, are no less favorable for the Company and the Indemnitees covered by such existing policies than those of such policy in effect on the date of the Merger Agreement for the six year period following the Closing (and until such later date as of which any claim commenced during such six year period will have been finally disposed of) from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance and fiduciary liability insurance and at a price not to exceed 300% of the amount per annum the Company paid in its last full fiscal year prior to the date of the Merger Agreement (the “Premium Cap”). If the Company or Parent obtains prepaid “tail” or “runoff” policies prior to the effective time, the surviving corporation will, and Parent will cause the surviving corporation to, maintain such policies in full force and effect, without any modifications, for their full term, and continue to honor the obligations thereunder. If the Company fails to purchase such “tail” or “runoff” policy prior to Closing, then either (i) Parent may purchase such “tail” or “runoff” policy on behalf of the Company or the surviving corporation or (ii) the surviving corporation will, and Parent will cause the surviving corporation to, maintain an officers’ and directors’ liability insurance policy in respect of acts or omissions occurring prior to the effective time covering each such person currently covered by the Company’s officers’ and directors’ liability insurance policy on terms that in all respects, including with respect to coverage, conditions, retentions, deductibles and amounts, are no less favorable for the Company and the Indemnitees covered by such existing policies than those of such policy in effect as of the date of the Merger Agreement for a period of six years after the effective time (and until such later date as of which any claim commenced during such six year period will have been finally disposed of) from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier with respect to directors’ and officers’ liability insurance and fiduciary liability insurance; provided, further, that in satisfying this obligation, neither Parent nor the surviving corporation will be obligated to pay annual premiums in excess of 300% of the Premium Cap and if such premiums for such insurance would at any time exceed 300% of the Premium Cap, then Parent or the surviving corporation will cause to be maintained policies of insurance that, in Parent or the surviving corporation’s good faith judgment, provide the maximum coverage available at an annual premium equal to 300% of the Premium Cap.
Efforts to Complete the Merger; Regulatory Approvals
The Merger Agreement provides that each of the Company, Parent and Purchaser will:

make an appropriate filing of a Notification and Report Form pursuant to the HSR Act and a filing pursuant to the Competition Act with respect to the transactions contemplated by the Merger Agreement within ten business days after the date of the Merger Agreement (and all filings or notifications with respect to any other antitrust and foreign investment laws as promptly as practicable). An affiliate of Parent submitted such filings pursuant to the HSR Act on April 21, 2022 and the Company submitted such filings pursuant to the HSR Act on April 21, 2022;

supply as promptly as reasonably practicable any additional information and documentary material that may be requested pursuant to the HSR Act and any other applicable antitrust and foreign investment law; and

promptly take any and all steps necessary to avoid or eliminate each and every impediment and obtain all clearances and consents under the HSR Act and any other such antitrust and foreign
 
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investment laws that may be required by any governmental authority, in each case with competent jurisdiction, so as to enable the parties to the Merger Agreement to consummate the transactions contemplated by the Merger Agreement as soon as reasonably practicable and in any event prior to the Termination Date.
Parent will promptly take all actions necessary to secure the expiration or termination of any applicable waiting period under the HSR Act and resolve any objections asserted with respect to the transactions contemplated by the Merger Agreement under the Clayton Act, the Competition Act or any other applicable law (including any other antitrust and foreign investment law) raised by any governmental authority, in order to prevent the entry of, or to have vacated, lifted or terminated, any law or order that would prevent, prohibit, restrict or delay the consummation of the transactions contemplated by the Merger Agreement and to cause the Closing to occur as soon as reasonably practicable and in any event prior to the Termination Date, including:

selling, licensing, divesting or disposing of or holding separate any entities, assets or businesses of Parent or its subsidiaries or affiliates (including, after the effective time, the surviving corporation or any of its subsidiaries);

terminating, amending or assigning existing relationships or contractual rights or obligations of Parent or its subsidiaries or affiliates (including, after the effective time, the surviving corporation or any of its subsidiaries);

changing or modifying any course of conduct regarding future operations of Parent or its subsidiaries or affiliates (including, after the effective time, the surviving corporation or any of its subsidiaries);

otherwise taking actions that would limit the respective freedom of action of Parent or its subsidiaries or affiliates (including, after the effective time, the surviving corporation or any of its subsidiaries with respect to, or their ability to retain, one or more of their respective businesses, assets or rights or interests therein;

executing settlements, undertakings, consent decrees, stipulations or other agreements with any governmental authority or with any other person; and

committing to take any such foregoing actions.
In no event will Parent or its subsidiaries or affiliates (other than the surviving corporation and its subsidiaries) be required to take, or agree to take (and under no circumstances will the Company or its subsidiaries or affiliates take or agree to take, without the express written consent of Parent), any actions, including the regulatory conditions listed above, that relate to or bind any of Parent’s or its subsidiaries’ or affiliates’ businesses, assets, product lines, or other interests other than, in each case, the businesses, assets, product lines or other interests of the surviving corporation or any of its subsidiaries.
Parent will respond to and seek to resolve as promptly as reasonably practicable any objections asserted by any governmental authority with respect to the transactions contemplated by the Merger Agreement. The parties to the Merger Agreement and any of their respective affiliates will not take any action with the intention to prevent or materially impede, interfere with, hinder or delay the expiration or termination of any waiting period under the HSR Act or the obtaining of approval of the Federal Trade Commission (the “FTC”), the Antitrust Division of the Department of Justice (the “DOJ”), the Competition Act or any other approval, consent or notice required under any other applicable antitrust and foreign investment law as necessary to cause the Closing to occur as soon as reasonably practicable and in any event prior to the Termination Date. Nothing in the Merger Agreement will require Parent, the Company, or any of their respective subsidiaries or affiliates to take or agree to take, or cause to be taken, any action with respect to its assets, business or operations unless the effectiveness of such agreement or action is conditioned upon the Closing.
 
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Parent will devise and implement the strategy for all filings, notifications, submissions and communications in connection with any filing, notice, petition, statement, registration, submission of information, application or similar filing, provided, however, that Parent will consult with and consider in good faith the views of the Company or its outside legal counsel. In furtherance of the foregoing, each of the parties to the Merger Agreement will use its reasonable best efforts to:

cooperate in all respects with each other in connection with any filing or submission with a governmental authority in connection with the transactions contemplated by the Merger Agreement and in connection with any investigation, litigation or other inquiry by or before a governmental authority relating to the transactions contemplated by the Merger Agreement, including any proceeding initiated by a private person;

keep the other parties to the Merger Agreement informed in all material respects and on a reasonably timely basis of any material communication received by such party from, or given by such party to, the FTC, the DOJ or any other governmental authority and of any material communication received or given in connection with any proceeding by a private person, in each case regarding any of the transactions contemplated by the Merger Agreement;

subject to applicable laws relating to the exchange of information, and to the extent reasonably practicable, consult with the other parties to the Merger Agreement with respect to information relating to the other parties to the Merger Agreement and their respective subsidiaries, as the case may be, that appears in any filing made with, or written materials submitted to, any third person or any governmental authority in connection with the transactions contemplated by the Merger Agreement; and

unless prohibited by the applicable governmental authority or other person, give the other parties the opportunity to attend and participate in all meetings and conferences with such governmental authority or other person.
Except as expressly contemplated or permitted by the Merger Agreement, Parent will not take, and will cause its subsidiaries not to take, any action, or refrain from taking any action, the effect of which would be to prevent or materially impede, interfere with, hinder or delay the ability of the parties to the Merger Agreement to consummate the transactions contemplated by the Merger Agreement. Without limiting the generality of the foregoing, Parent will not, and will cause its subsidiaries not to, acquire or agree to acquire by merging or consolidating with, or by purchasing a substantial portion of the assets of or equity in, or by any other manner, any person or portion thereof, or otherwise acquire or agree to acquire any assets, if the entering into of a definitive agreement relating to or the consummation of such acquisition, merger or consolidation could reasonably be expected to (i) impose any material delay in the obtaining of, or increase the risk of not obtaining, any consent, approval, authorization, declaration, waiver, license, franchise, permit, certificate or order of any governmental authority necessary to consummate the transactions contemplated by the Merger Agreement or the expiration or termination of any applicable waiting period, (ii) materially increase the risk of any governmental authority entering an order prohibiting the consummation of the transactions contemplated by the Merger Agreement or (iii) delay the consummation of the transactions contemplated by the Merger Agreement.
Financing
Under the Merger Agreement, Parent and Purchaser have agreed to use their reasonable best efforts to take, or use reasonable best efforts to cause their representatives to take, all actions, or cause to be done, all things necessary, proper or advisable to arrange and obtain the financing provided under the Equity Commitment Letter and the Debt Commitment Letter, including:

maintaining in effect the Commitment Letters;

satisfying on a timely basis all conditions applicable to Parent and Purchaser (and that are within their control) set forth in the Debt Commitment Letter and the definitive financing agreements or seeking waiver of such conditions;

entering into definitive agreements to consummate the debt and equity commitments;
 
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consummating the equity and debt commitments contemplated by the Commitment Letters and necessary to fund the acquisition (taking into account the equity commitment and other sources) on or prior to the Closing Date (and in any event prior to the Termination Date);

without the prior written consent of the Company, not consenting to amendments or waivers under the Debt Commitment Letter that would reduce the amount of debt necessary to fund the acquisition (taking into account the equity commitment and other sources), that would expand or impose new conditions that would or would reasonably be expected to prevent or materially impede, interfere with hinder or delay the funding of the debt financing or consummation of the Merger, that would change the timing of the funding of the financing under the Debt Commitment Letter, in each case if such change would make such funding materially less likely to occur when required pursuant to the terms of the Merger Agreement, or that would reasonably be expected to adversely impact the ability of Parent and Purchaser to enforce their rights under the Debt Commitment Letter or delay the financing necessary to fund the acquisition (taking into account the equity commitment and other sources) (the amendments described in the foregoing clauses, the “Prohibited Amendments”);

notifying the Company of any breach or defaults under the Debt Commitment Letter of which Parent becomes aware that would result in the financing necessary to fund the acquisition not being available (taking into account the equity commitment and other sources), any written notice of any actual or threatened repudiation or termination of the debt financing by any party to the Debt Commitment Letter or if Parent or Purchaser believes in good faith that it will not be able to obtain the financing in an amount necessary to fund the acquisition (taking into account the equity commitment and other sources);

to the extent the conditions to the funding of the debt financing contemplated by the Debt Commitment Letter (the “debt financing”) have been satisfied, consummate the debt financing at or prior to the Closing Date); and

seeking alternative debt financing (though Parent and Purchaser are not required to obtain alternative financing that are materially less favorable to Parent and Purchaser than those contained in the original Debt Commitment Letter (including any “market flex” provisions)).
Consummation of the financing is not a condition to the Offer. Between April 7, 2022 and the earlier of the closing of the Merger or termination of the Merger Agreement in accordance with its terms, consummation of the Merger, the Company has agreed to provide such reasonable assistance and cooperation as Parent may reasonably request in connection with any proposed debt financing (provided, that such requested assistance and cooperation does not unreasonably interfere with the ongoing operation of the Company’s business). Parent (I) will promptly, upon request by the Company, reimburse the Company for all reasonable and documented out-of-pocket expenses (including (A) attorneys’ fees and (B) expenses of the Company’s accounting firms engaged to assist in connection with the debt financing, including performing additional requested procedures, reviewing any offering documents, participating in any meetings and providing any comfort letters) incurred by the Company or any of its subsidiaries or their respective representatives in connection with the financing, including the cooperation of the Company and its subsidiaries and representatives contemplated by the Merger Agreement and (II) shall indemnify, defend and hold harmless the Company, its subsidiaries and their respective representatives from and against any and all damages or reasonable and documented out-of-pocket expenses suffered or incurred by any of them in connection with the arrangement of the debt financing (including the performance of their respective obligations under, or the taking of or refraining from any action in accordance with, the Merger Agreement and any information used in connection therewith, in each case other than to the extent any of the foregoing was (i) with respect to any written information prepared or provided by or on behalf of the Company or any of its subsidiaries or any of their respective representatives or affiliates, (ii) suffered or incurred as a result of the bad faith or willful misconduct of the Company or any of its subsidiaries or, in each case, their respective affiliates and representatives as determined in a final, non-appealable judgment of a court of competent jurisdiction or (iii) with respect to any material misstatement or omission of a material fact in financial information provided in writing by the foregoing persons.
Employee Matters
For a period of not less than one year following the effective time (the “continuation period”), Parent will, or will cause the surviving corporation or their respective affiliates to, provide to each continuing
 
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Company employee (other than any such employee whose terms and conditions of employment are governed by a collective bargaining agreement or other labor contract) (i) a salary or hourly wage rate that is not less than that provided to such employee immediately prior to the effective time, (ii) target incentive pay opportunities, including bonus and commission opportunities, but not including equity and equity-based awards, that are no less favorable than those provided to such employee immediately prior to the effective time and (iii) other compensation and employee benefits (excluding equity and equity-based awards which will remain discretionary) that are no less favorable in the aggregate, determined on an individual basis, than those provided to such employee under the Company’s compensation and benefit plans, programs, policies, agreements and arrangements in effect immediately prior to the effective time.
In addition, the pool for the Company’s short-term incentive plan for the fiscal year ending June 30, 2022 (the “FY 2022 STIP”) will be funded based on the greater of target and actual performance for such fiscal year, and FY 2022 STIP payments for such fiscal year will be determined in the Company’s ordinary course of business consistent with past practice for each participant in the FY 2022 STIP as of the last day of such fiscal year and paid by the Company (or, following the effective time, by Parent or the surviving corporation) on or before September 15, 2022.
Parent will, or will cause the surviving corporation and each of their respective affiliates to, honor all Company benefit plans (including all severance, change of control and similar plans and arrangements) in accordance with their terms as in effect immediately prior to the effective time, subject to any amendment or termination that may be permitted by such Company benefit plans. For the duration of the continuation period or, if applicable, the remaining term of any individual employment, severance or separation agreement in effect immediately prior to the effective time (if longer), Parent will, or will cause the surviving corporation or their respective affiliates to, provide each continuing Company employee who suffers a termination of employment under circumstances that would have given such employee a right to severance payments and benefits under the applicable severance policy or severance plan of the Company or any of its subsidiaries, or any individual employment, severance or separation agreement or other arrangement in effect immediately prior to the date of the Merger Agreement (each, a “Company severance plan”) with severance payments and benefits no less favorable than those that would have been provided to such employee under the applicable Company severance plan, subject to such employee’s timely satisfaction of a release of claims requirement.
For all purposes under all employee benefit plans of Parent, the surviving corporation and their respective affiliates providing benefits to any continuing Company employee after the effective time (the “new plans”), each continuing Company employee will receive full credit for such employee’s years of service with the Company and its subsidiaries before the effective time (including any predecessors or other entities for which the Company and its subsidiaries have given credit for prior service), to the same extent such employee was entitled to credit for such service under similar or comparable Company benefit plans. In addition, (i) each such employee will be immediately eligible to participate, without any waiting time, in each new plan to the extent that such waiting time was satisfied under a similar or comparable Company employee benefit plan in which such employee participated immediately before the effective time (such plans, collectively, the “old plans”), (ii) Parent will cause all pre-existing condition exclusions or limitations and actively-at-work requirements of each new plan to be waived or satisfied for each such employee and his or her covered dependents to the extent waived or satisfied under the analogous old plan as of the effective time, and (iii) Parent will cause all eligible expenses incurred by each such employee and his or her covered dependents during the portion of the plan year of the old plan ending on the date on which such employee’s participation in the corresponding new plan begins to be taken into account under such new plan for purposes of satisfying all deductible, coinsurance and maximum out-of-pocket requirements applicable to such employee and his or her covered dependents for the applicable plan year as if such amounts had been paid in accordance with such new plan.
In the case of any continuing Company employee for whom the Company tracks vacation accrual (which will not include any such employee who is eligible for “unlimited” vacation or similar paid time off except as required by applicable law), with respect to any earned but unused vacation or other paid time off to which such employee is entitled pursuant to the vacation or other paid time off policy or individual agreement or other arrangement applicable to such employee immediately prior to the effective time (the “Vacation/PTO Policy”), Parent will, or will cause the surviving corporation or any of their respective affiliates to, (i) allow such employee to use such earned vacation or other paid time off in accordance with the
 
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Vacation/PTO Policy and (ii) if any such employee’s employment terminates during the continuation period under circumstances entitling such employee to severance pay under the applicable Company severance plan, pay such employee, in cash, an amount equal to the value of the earned vacation or other paid time off.
Stock Exchange De-Listing
The Company will cooperate with Parent and will use its reasonable best efforts prior to the Closing date to cause the Shares to be delisted from NASDAQ and deregistered under the Exchange Act as soon as reasonably practicable following the effective time.
Stockholder Litigation
Prior to the effective time or the termination of the Merger Agreement in accordance with the terms thereof, the Company and Parent will, as promptly as reasonably practicable after obtaining knowledge (as defined in the Merger Agreement) thereof, notify the other of any stockholder demands, litigations, arbitrations or other similar legal action (including derivative claims) commencing against it or its respective directors or officers relating to the Merger Agreement, the Merger, the Offer or the other transactions contemplated by the Merger Agreement, including disclosures made under securities laws and regulations related thereto (collectively, the “Transaction Litigation”) and will keep the other party reasonably informed regarding any Transaction Litigation. The Company and Parent will cooperate with the other in the defense or settlement of any Transaction Litigation and will give the other party the opportunity to consult with it regarding the defense or settlement of, and participate in the defense of, such Transaction Litigation and will give the other party’s advice reasonable and good faith consideration with respect to such Transaction Litigation (subject to certain restrictions); Prior to the effective time, none of the Company nor its subsidiaries will settle or offer to settle any Transaction Litigation without the prior written consent of Parent (such consent not to be unreasonably withheld, conditioned or delayed).
Treatment of Existing Notes
The Merger Agreement provides that Parent and Purchaser will prepare all necessary and appropriate documentation in connection with the repurchase or redemption and satisfaction and discharge of the Company’s outstanding (i) 4.500% Senior Notes due 2024 (the “2024 Notes”), (ii) 4.875% Senior Notes due 2027 (the “2027 Notes”) and (iii) 5.25% Senior Notes due 2029 (the “2029 Notes” and together with the 2024 Notes and the 2027 Notes, the “Notes”) pursuant to offers to repurchase all of the Notes upon a change of control in accordance with the applicable Indenture (as defined below), a tender offer, a consent solicitation and/or other liability management transaction, including redemptions (each, a “Liability Management Transaction”). Such documentation includes notices of redemption, notices of offers to purchase and/or consent solicitation statements for or in respect of all of the outstanding Notes and all other documents as may be reasonably necessary or appropriate to issue as of or prior to the Closing date in connection with a Liability Management Transaction (collectively, the “Liability Management Documents”). In addition, pursuant to the Merger Agreement, Parent, Purchaser and the Company will reasonably cooperate with each other in the preparation of any Liability Management Documents. The Liability Management Documents are subject to the prior review of, and comment by, the Company and its legal counsel, and must be reasonably acceptable to them.
The 2024 Notes were issued pursuant to an Indenture dated as of October 14, 2014 by and among the Company and U.S. Bank National Association, as trustee (the “Trustee”) (as amended and supplemented, the “2024 Notes Indenture”). The 2027 Notes were issued pursuant to an Indenture dated as of May 15, 2017 by and among the Company and the Trustee (as amended and supplemented, the “2027 Notes Indenture”). The 2027 Notes were issued pursuant to an Indenture dated as of May 15, 2019 by and among the Company and the Trustee (as amended and supplemented, the “2029 Notes Indenture” and together with the 2024 Notes Indenture and the 2027 Notes Indenture, the “Indentures”).
The Merger Agreement requires that the Company take any actions reasonably necessary or appropriate to be taken by it to issue redemption notices and/or notices of offers to purchase the Notes, the redemption or repurchase of which closes at the Closing date (contingent upon the consummation of the Merger), or other documents necessary to commence one or more Liability Management Transactions for the Notes the
 
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redemption and/or repurchase of which closes at the Closing date (contingent upon the consummation of the Merger). In addition, the Company is required to use reasonable best efforts to cause the Trustee to agree to proceed with one or more Liability Management Transactions on notice of at least 30 days, but not more than 60 days, before the applicable repurchase and/or redemption date or such other reasonable time. the Company will take any such action as is reasonably necessary to cause the Trustee and/or other applicable agent to send the notices of offers to purchase and/or redemption, consent solicitation statement and/or other documents necessary to commence a Liability Management Transaction to the holders of Notes on or prior to the Closing date; provided, however, that nothing in the Merger Agreement obligates the Company to (i) fund or set aside funds for the repurchase, redemption, satisfaction or discharge of the Notes or to take any action that is not at the expense of Parent or (ii) take any other action that would, or would reasonably be expected to, conflict with or violate the terms of any contract to which the Company or any of its subsidiaries is a party.
As reasonably requested by Parent and subject to the receipt of any requisite consents, the Company will execute a supplemental indenture governing each applicable series of Notes in accordance with the applicable Indenture, amending the terms and provisions of each such Indenture as described in the applicable Liability Management Documents. Such supplemental indenture(s) will become operative no earlier than the effective time. If the requisite consents have not been received, the Company will assist with the preparation of, and execution and delivery of, an intercreditor agreement and related security documents necessary to secure any outstanding applicable series of Notes equally and ratably with the financing contemplated by the Debt Commitment Letter or otherwise as required under the applicable Indenture. With respect to each series of Notes, the Company will use reasonable best efforts to cause the Trustee to enter into such supplemental indenture, agreement or document prior to or substantially simultaneously with the Closing date; provided, however, that in no event does the Company have any obligation to authorize, adopt or execute any agreement that would become operative prior to the effective time. If requested by Parent, the Company will cause its legal counsel to provide all customary legal opinions required in connection with the transactions described herein with respect to the Notes to the extent such legal opinion is required to be delivered prior to the Closing date. In no event will the Company or its legal counsel be required to give an opinion as to compliance of a Liability Management Transaction with applicable law or the provisions of the applicable Indenture, if in the reasonable opinion of the Company’s external legal counsel, such Liability Management Transaction does not comply with such applicable law or provisions. In addition, neither the Company nor its legal counsel will be required to give an opinion with respect to any financing by Parent.
Parent will reimburse the Company for certain expenses (including reasonable attorneys’ fees and expenses of the Company’s accounting firms) and will indemnify the Company against certain liabilities, in each case in connection with the transactions described herein with respect to the Notes.
Conditions of the Offer
See “Section 15 — Conditions of the Offer.”
Conditions to the Merger
The obligations of Parent and Purchaser, on the one hand, and the Company, on the other hand, to complete the Merger are each subject to the satisfaction or (if permissible under applicable law) the waiver of the following conditions:

Purchaser will have irrevocably accepted for payment all Shares validly tendered and not properly withdrawn pursuant to the Offer; and

no governmental authority of competent jurisdiction will have enacted, issued, promulgated, enforced or entered any order or any applicable law that would (i) make the Merger illegal or (ii) otherwise prevent the consummation thereof.
Termination
The Merger Agreement may be terminated as follows:
 
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by mutual written consent of each of the Company and Parent at any time prior to the Acceptance Time;

by either Parent or the Company prior to the Acceptance Time if:

the Acceptance Time has not occurred on or before 11:59 p.m., New York City time, on October 7, 2022 (such date, the “Termination Date,” and such termination a “Termination Date Termination”); provided, that the right to terminate the Merger Agreement under this bullet point will not be available to any party to the Merger Agreement seeking to terminate if the breach by such party of its representations and warranties set forth in the Merger Agreement or the failure of such party to perform any of its covenants, obligations or agreements under the Merger Agreement has been a principal cause of or resulted in the failure of the Acceptance Time to occur on or before the Termination Date (it being understood that Parent and Purchaser will be deemed a single party for purposes of the foregoing proviso);

any governmental authority of competent jurisdiction will have issued a final, non-appealable law or order, in each case permanently restraining, enjoining or otherwise prohibiting the Merger or the consummation of the Offer or making the consummation of the Merger or the consummation of the Offer illegal or otherwise prohibited; provided, that the right to terminate the Merger Agreement under this bullet point will not be available to any party to the Merger Agreement (it being understood that Parent and Purchaser will be deemed a single party for purposes of the foregoing proviso) seeking to terminate if the breach by such party of its representations and warranties set forth in the Merger Agreement or the failure of such party to perform any of its covenants, obligations or agreements under the Merger Agreement has been a principal cause of or resulted in the issuance of any such final, non-appealable law or order; or

if the Offer will have expired pursuant to its terms (including any extensions of the Offer in accordance with the terms of the Merger Agreement) and the terms of the Merger Agreement without Purchaser having irrevocably accepted for payment the Shares validly tendered and not properly withdrawn pursuant to the Offer in accordance with the Merger Agreement solely as a result of the failure of the Minimum Tender Condition to be satisfied (such termination, a “Minimum Tender Condition Termination”); provided, that the right to terminate the Merger Agreement under this bullet point will not be available to any party to the Merger Agreement seeking to terminate if the breach by such party of its representations and warranties set forth in the Merger Agreement or the failure of such party to perform any of its covenants, obligations or agreements under the Merger Agreement has been a principal cause of or resulted in the non-satisfaction of the Minimum Tender Condition (it being understood that Parent and Purchaser will be deemed a single party for purposes of the foregoing proviso); or

by Parent prior to the Acceptance Time if:

the Company breaches any of its representations or warranties or fails to perform any of its covenants, obligations or agreements contained in the Merger Agreement, which breach or failure to perform, individually or in the aggregate, (i) would result in the failure of any of the Offer conditions set forth in the fourth, fifth or sixth bullet points in Section 15 — “Conditions of the Offer” not being satisfied and (ii) by its nature cannot be cured or has not been cured by the Company by the earlier of (A) the business day immediately prior to the Termination Date and (B) the date that is 20 business days after the Company’s receipt of written notice of such breach from Parent (such termination, a “Company Breach Termination”); provided, that neither Parent nor Purchaser are then in material breach of their respective representations or warranties or then failing to perform in a material respect their respective covenants, obligations or agreements contained in the Merger Agreement;

there has been an Adverse Recommendation Change (an “Adverse Recommendation Change Termination”);

there will have been an intentional and material breach of the non-solicitation covenants under the Merger Agreement; provided, that, prior to exercising its termination right pursuant to this bullet point, Parent will have provided the Company with written notice of its intent to terminate pursuant to this clause at least five business days in advance of such termination; or
 
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the Offer will have expired pursuant to its terms (including any extensions of the Offer in accordance with the terms of the Merger Agreement) and the terms of the Merger Agreement without Purchaser having irrevocably accepted for payment the Shares validly tendered and not properly withdrawn pursuant to the Offer in accordance with the Merger Agreement solely as a result of the failure of the Material Adverse Effect Condition (as defined below) to be satisfied; or

by the Company prior to the Acceptance Time if:

in order to enter into an Alternative Acquisition Agreement with respect to a Superior Proposal subject to, and in accordance with, the terms and conditions of the Merger Agreement (a “Superior Proposal Termination”); provided, that prior to or concurrently with such termination the Company pays (or causes to be paid) the Company Termination Fee (as defined below);

if Parent or Purchaser breaches any of their respective representations or warranties or fails to perform any of their respective covenants, obligations or agreements contained in the Merger Agreement, which breach or failure to perform, individually or in the aggregate, (i) would reasonably be expected to result in a Parent Material Adverse Effect and (ii) by its nature cannot be cured or has not been cured by Parent or Purchaser, as applicable, by the earlier of (A) the business day immediately prior to the Termination Date and (B) the date that is twenty (20) business days after Parent’s receipt of written notice of such breach from the Company (a “Parent Breach Termination”); provided, that the Company is not then in material breach of its representations or warranties or then failing to perform in a material respect its covenants, obligations or agreements contained in the Merger Agreement;

(i) the Offer conditions (other than those Offer conditions that by their nature are to be satisfied at the Acceptance Time, but subject to such Offer conditions being able to be satisfied) have been satisfied or waived (if permissible under applicable laws) at the Offer Expiration Time, (ii) Purchaser will have failed to consummate (as defined in Section 251(h) of the DGCL) the Offer within two business days following the Offer Expiration Time and (iii) the Company stood ready, willing and able to consummate the Offer closing and the Closing on the date following such two business days and the Company will have given Parent a written notice on or prior to such date confirming such fact (a “Failure to Close Termination”); provided, that no party will be permitted to terminate the Merger Agreement during any such two business day period; or

(i) Purchaser fails to commence the Offer in violation of the Merger Agreement and Purchaser fails to commence the Offer prior to the close of business on the fifth business day following receipt of a written notice from the Company to Purchaser identifying such violation, (ii) Purchaser will have terminated the Offer prior to the Offer Expiration Time (as extended and re-extended in accordance with the Merger Agreement), other than in accordance with the Merger Agreement or (iii) Parent or Purchaser will have made any change to the Offer in breach of the Merger Agreement and Parent and Purchaser fail to amend the Offer to cure such breach within five business days after receiving notice from the Company of such breach (each of clauses (ii) and (iii), an “Offer Change Termination”).
Company Termination Fee
The Company would be required to pay a termination fee of $181,500,000.00, which we refer to as the “Company Termination Fee,” to Parent if the Merger Agreement is terminated:

pursuant to a Superior Proposal Termination;

pursuant to an Adverse Recommendation Change Termination; or

if (A) following the date of the Merger Agreement, a Takeover Proposal will have been publicly made or otherwise become generally known to the public and has not been subsequently withdrawn, (B) thereafter the Merger Agreement is terminated by (1) the Company or Parent pursuant to a Termination Date Termination and at such time all of the Offer conditions (other than the Minimum Tender Condition and the Offer conditions that by their terms are to be satisfied at the Offer closing, but subject to such conditions being able to be satisfied), have been satisfied or waived
 
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(subject to certain requirements set forth in the Merger Agreement), (2) the Company or Parent, pursuant to a Minimum Tender Condition Termination (subject to certain requirements set forth in the Merger Agreement), or (3) Parent pursuant to a Company Breach Termination, and (C) within 12 months following the date of such termination, the Company enters into a definitive agreement with respect to any transaction specified in the definition of “Takeover Proposal” and such Takeover Proposal is subsequently consummated. For purposes of this clause, the references in the definition of the term “Takeover Proposal” to the figure “25%” will be deemed to be replaced by “50%”.
The Company Termination Fee is payable prior to or concurrently with termination of the Merger Agreement in the event of a Superior Proposal Termination, and, in all other cases, within two business days after the date of the event giving rise to the obligation to pay the Company Termination Fee.
Parent Termination Fee
Parent would be required to pay a termination fee of $594,000,000.00, which we refer to as the “Parent Termination Fee,” to the Company if the Merger Agreement is terminated:

pursuant to a Parent Breach Termination;

pursuant to a Failure to Close Termination;

pursuant to an Offer Change Termination; or

if the Merger Agreement is terminated by the Company or Parent pursuant to a Termination Date Termination and if the Company would have been entitled to terminate the Merger Agreement pursuant to a Parent Breach Termination, a Failure to Close Termination or an Offer Change Termination.
The Parent Termination Fee is payable within two business days after the date of the event giving rise to the obligation to pay the Parent Termination Fee.
If the Merger Agreement is terminated by (i) Parent at any time when the Company would have been entitled to terminate the Merger Agreement, the Company will be entitled to receipt of any Parent Termination Fee that would have been (or would have subsequently become) payable had the Company terminated the Merger Agreement at such time or (ii) the Company at any time when Parent would have been entitled to terminate the Merger Agreement, Parent shall be entitled to receipt of any Company Termination Fee that would have been (or would have subsequently become) payable had Parent terminated the Merger Agreement at such time.
Amendment; Extension; Waivers
Subject to compliance with applicable law, at any time prior to the Acceptance Time, the Merger Agreement may be amended by written agreement by the Company, Parent and Purchaser, except that certain provisions of the Merger Agreement may not be amended in any manner that is adverse to the debt financing sources, their affiliates and their respective members, partners or representatives without the prior written consent of such persons.
At any time prior to the effective time, Parent and Purchaser, on the one hand, and the Company, on the other hand, may:

extend the time for the performance of any of the obligations of the other party;

waive any inaccuracies in the representations and warranties of the other party contained in the Merger Agreement or in any document delivered under the Merger Agreement; or

subject to applicable law, waive compliance with any of the covenants or conditions contained in the Merger Agreement.
Any such extension or waiver will be valid if set forth in an instrument in writing signed by the party or parties to be bound thereby. The failure of any party to assert any of its rights under the Merger Agreement or otherwise will not constitute a waiver of those rights. Any single or partial exercise by any party of any
 
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of its rights under the Merger Agreement will not preclude any other or further exercise thereof or the exercise of any right, power or privilege under the Merger Agreement.
Expenses
Except as otherwise provided in the Merger Agreement, whether or not the Offer, the Merger or the other transactions contemplated by the Merger Agreement are consummated, all fees, costs and expenses (including those payable to representatives of the parties to the Merger Agreement) incurred in connection with the Offer, the Merger, the Merger Agreement and the other transactions contemplated by the Merger Agreement will be paid by the party incurring such expenses, whether or not the Offer, the Merger or any other transaction contemplated by the Merger Agreement is consummated.
Governing Law
The Merger Agreement is, and any legal action or controversy arising out of or relating to the Merger Agreement or the transactions contemplated therein will be, governed by Delaware law, provided, that any legal action against any of the debt financing sources and their affiliates and their respective members, partners and representatives arising out of or relating to the Merger Agreement or the Debt Commitment Letter or the performance thereunder will be governed by New York law.
Jurisdiction
The Company, Parent and Purchaser have agreed that, except with respect to any legal action against any of the debt financing sources and their affiliates and their respective members, partners and representatives arising out of the Merger Agreement or the Debt Commitment Letter or the performance thereunder, will be brought exclusively in certain courts in the State of Delaware in accordance with the terms of the Merger Agreement. The parties have also agreed to waive jury trial to the fullest extent permitted by law.
Except with respect to legal action against any of the debt financing sources and their affiliates and their respective members, partners and representatives arising out of the Merger Agreement or the Debt Commitment Letter or the performance thereunder, the Company, Parent and Purchaser have agreed (i) to irrevocably and unconditionally submit to the personal jurisdiction of the Court of Chancery of the State of Delaware (or, only if such court declines to accept jurisdiction over a particular matter, then in the United States District Court for the District of Delaware, or if jurisdiction is not then available in the United States District Court for the District of Delaware (but only in such event), then in any Delaware state court sitting in New Castle County) and any appellate court from any of such courts (the “Chosen Courts”), (ii) not to attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such Chosen Court, (iii) that any legal actions arising out of or relating to the Merger Agreement or the transactions contemplated by the Merger Agreement shall be brought, tried and determined only in the Chosen Courts, (iv) to waive any claim of improper venue or any claim that the Chosen Courts are an inconvenient forum and (v) not to bring any legal action relating to the Merger Agreement or the transactions contemplated by the Merger Agreement in any court other than the Chosen Courts. The Company, Parent and Purchaser have agreed to irrevocably and unconditionally waive, and not to assert, by way of motion or as a defense, counterclaim or otherwise, in any legal action arising out of or relating to the Merger Agreement or the transactions contemplated by the Merger Agreement: (A) any claim that such party is not personally subject to the jurisdiction of the Chosen Courts for any reason; (B) that such party or its property is exempt or immune from jurisdiction of any such Chosen Court or from any legal process commenced in such courts (whether through service of process, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise); and (C) that (x) the legal action in any such court is brought in an inconvenient forum, (y) the venue of such legal action is improper or (z) the Merger Agreement, or the subject matter thereof, may not be enforced in or by such Chosen Courts.
The Company, Parent and Purchaser have agreed (i) that any legal action, whether at law or in equity, whether in contract or in tort or otherwise, against any of the debt financing sources and their affiliates and their respective members, partners and representatives arising out of the Merger Agreement or the Debt Commitment Letter or the performance thereunder will be subject to the exclusive jurisdiction of any state or federal court sitting in the Borough of Manhattan in the City and State of New York (whether a state or federal court), and any appellate court from any thereof, (ii) that any legal action, whether at law or in
 
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equity, whether in contract or in tort or otherwise, against any of the debt financing sources and their affiliates and their respective members, partners and representatives will be governed by, and construed in accordance with, the laws of the State of New York, (iii) not to bring or permit any of their affiliates to bring or support anyone else in bringing any such legal action in any other court, (iv) that the provisions of the Merger Agreement related to waiver of jury trial shall apply to any such legal action and (v) that the debt financing sources and their affiliates and their respective members, partners and representatives are express third-party beneficiaries of this paragraph.
Limitations on Remedies
Subject in all respects to the Company’s rights to specific performance described in the following section and certain reimbursement and indemnification obligations of Parent under the Merger Agreement, (i) in the event the Parent Termination Fee is paid to the Company in circumstances for which such fee is payable pursuant to the Merger Agreement, payment of the Parent Termination Fee will be the sole and exclusive monetary remedy of the Company and its subsidiaries against Parent, Purchaser, the Investors or any of their respective former, current or future general or limited partners, stockholders, financing sources (including the debt financing sources and their affiliates and their respective members, partners and representatives), managers, members, directors, officers or affiliates (collectively, the “Parent Related Parties”) for any damages suffered as a result of the failure of the transactions contemplated by the Merger Agreement to be consummated or for a breach or failure to perform under the Merger Agreement or otherwise relating to or arising out of the Merger Agreement or the transactions contemplated by the Merger Agreement and (ii) upon payment of such amount none of the Parent Related Parties will have any further liability relating to or arising out of the Merger Agreement or the transactions contemplated by the Merger Agreement. Subject in all respects to Parent’s rights to specific performance described in the following section and the reimbursement obligations of the Company under the Merger Agreement, (A) in the event the Company Termination Fee is paid to Parent in circumstances for which such fee is payable pursuant to the Merger Agreement, payment of the Company Termination Fee will be the sole and exclusive monetary damages remedy of the Parent Related Parties against the Company and its subsidiaries and any of their respective former, current or future officers, directors, partners, stockholders, managers, members or affiliates (collectively, “Company Related Parties”) for any damages suffered as a result of the failure of the transactions contemplated by the Merger Agreement to be consummated or for a breach or failure to perform under the Merger Agreement or otherwise, and (B) upon payment of such amounts none of the Company Related Parties will have any further liability relating to or arising out of the Merger Agreement or the transactions contemplated by the Merger Agreement. While each of the Company and Parent may pursue both a grant of specific performance and the payment of the Parent Termination Fee or the Company Termination Fee, as applicable, under no circumstances will the Company or Parent be permitted or entitled to receive both a grant of specific performance that results in a Closing and any money damages, including all or any portion of the Parent Termination Fee or the Company Termination Fee, as applicable.
In connection with any damages suffered by any Parent Related Party as a result of the failure of the transactions to be consummated or for a breach or failure to perform under the Merger Agreement or otherwise, other than in the circumstances in which Parent is entitled to receive the Company Termination Fee, and without limiting the reimbursement obligations of the Company under the Merger Agreement, Parent agrees, on behalf of itself and the Parent Related Parties, that the maximum aggregate monetary liability of the Company and the Company Related Parties, if any, will be limited to the amount of the Company Termination Fee, and in no event will Parent or any Parent Related Party seek or be entitled to recover from the Company or any Company Related Parties, and Parent on behalf of itself and the Parent Related Parties irrevocably waives and relinquishes any right to seek or recover, any monetary damages in excess of such amount. In connection with any damages suffered by any Company Related Party as a result of the failure of the transactions to be consummated or for a breach or failure to perform under the Merger Agreement or otherwise, other than in the circumstances in which the Company is entitled to receive the Parent Termination Fee and without limiting the reimbursement and indemnification obligations of Parent under the Merger Agreement, the Company agrees, on behalf of itself and the Company Related Parties, that the maximum aggregate monetary liability of Parent and the Parent Related Parties, if any, will be limited to the amount of the Parent Termination Fee, and in no event will the Company or any Company Related Party seek or be entitled to recover from Parent or any Parent Related Parties, and the Company on
 
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behalf of itself and the Company Related Parties irrevocably waives and relinquishes any right to seek or recover, any monetary damages in excess of such amount.
Specific Performance
Each of the parties will be entitled to an injunction or injunctions to prevent breaches or threatened breaches of the Merger Agreement and to enforce specifically the terms and provisions of the Merger Agreement (including the right of a party to the Merger Agreement to cause the other parties thereto to consummate the Offer and the Merger and the other transactions contemplated by the Merger Agreement), without proof of damages or otherwise, this being in addition to any other remedy at law or in equity, and the Company, Parent and Purchaser waived any requirement for the posting of any bond or similar collateral. Each of the Company, Parent and Purchaser agreed that it will not oppose the granting of an injunction, specific performance and other equitable relief on the basis that or otherwise assert that (i) the other party has an adequate remedy at law or (ii) an award of specific performance is not an appropriate remedy for any reason at law or equity.
The Company will have the right to an injunction, specific performance or other equitable remedies in connection with enforcing Parent’s and Purchaser’s obligations to consummate the Offer (including, subject to the satisfaction (or to the extent waivable, the waiver by Parent) of the Offer conditions, Purchaser’s obligation to accept for payment, and pay for, Shares tendered in the Offer) and the Merger, and Parent’s obligation under the Merger Agreement with respect to the financing, including by exercising its rights in accordance with the Equity Commitment Letter, subject to the terms and conditions set forth therein and in the Merger Agreement.
Notwithstanding anything to the contrary in the above paragraph, the right of the Company to seek an injunction, specific performance or other equitable remedies in connection with enforcing Parent’s obligation to cause the equity financing contemplated by the Equity Commitment Letter (the “equity financing”) to be funded to fund the Offer Price and the Merger Consideration and Parent’s and Purchaser’s obligations to consummate the Offer and to effect the Merger (but not the right of the Company to seek such injunctions, specific performance or other equitable remedies for any other reason) will be subject to the requirements that (i) (A) with respect to the Offer and payment of the Offer Price and the equity financing related thereto, all of the Offer conditions were satisfied (other than those conditions that by their terms are to be satisfied at the expiration time, but subject to such conditions being able to be satisfied) or waived at the Offer Expiration Time or (B) with respect to the Merger, the payment of the Merger Consideration and the equity financing related thereto, the conditions set forth in the Merger Agreement were satisfied (other than those conditions that by their terms are to be satisfied at the Closing, but subject to such conditions being able to be satisfied) or waived at the Closing, (ii) the debt financing (or any replacement thereof) has been funded in accordance with the terms thereof or will be funded in accordance with the terms thereof at the Closing if the equity financing is funded at the Closing and (iii) the Company has irrevocably confirmed that if the equity financing and debt financing are funded, then it would take such actions required of it by the Merger Agreement to cause the Closing to occur. For the avoidance of doubt, the Company may pursue a grant of specific performance of the type provided in the preceding sentence and the payment of the Parent Termination Fee, but in no event be entitled to obtain both (x) a grant of specific performance and (y) payment of the Parent Termination Fee or any monetary damages.
Other Agreements
The Limited Guarantee
Simultaneously with the execution of the Merger Agreement, the Investors provided the Company with a limited guarantee, dated as of the date of the Merger Agreement (the “Limited Guarantee”), pursuant to which the Guarantors guarantee the payment to the Company of (i) the Parent Termination Fee and (ii) the reimbursement, indemnification or payment obligations of Parent under the Merger Agreement when required to be paid pursuant to and in accordance with the Merger Agreement.
This summary and description of the Limited Guarantee does not purport to be complete and is qualified in its entirety by reference to the Limited Guarantee, which is filed as Exhibit (d)(4) to the Schedule TO, which is incorporated herein by reference.
 
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Confidentiality Agreement
On January 25, 2022, the Company and Brookfield entered into a confidentiality agreement (the “Confidentiality Agreement”). Under the terms of the Confidentiality Agreement, Brookfield and its representatives agreed not to (i) use any confidential information of the Company for any purpose other than to evaluate, and participate in discussions regarding, negotiating and/or consummating a possible negotiated transaction with the Company (a “Possible Transaction”), (ii) disclose any such confidential information to any third parties (other than to certain representatives of Brookfield solely for the purpose of evaluating, negotiating and/or consummating a Possible Transaction), (iii) disclose to any other person or entity the possible occurrence of a Possible Transaction without the Company’s prior written consent, in each case, subject to certain exceptions, or (iv) disclose that confidential information was made available to Brookfield or its representatives and that Brookfield or its representatives were engaged in discussions with the Company with respect to a Possible Transaction, in each case, subject to certain exceptions.
Under the Confidentiality Agreement, Brookfield also agreed, among other things, to certain “standstill” provisions for the benefit of the Company that expire one year from the date of the Confidentiality Agreement, including restrictions that provide that Brookfield and its representatives will not, directly or indirectly, without the prior written consent of the Company Board, (i) acquire or offer or agree to acquire (or propose, agree or seek permission, to acquire) or otherwise obtain an economic interest in, by purchase or otherwise, any right to direct the voting or disposition of, or any other right with respect to, any equity securities of the Company or any direct or indirect rights, options or other securities convertible into or exercisable or exchangeable for such equity securities or any obligations measured by the price or value of any shares of capital stock of the Company, including without limitation any swaps or other derivative arrangements, (ii) make or participate in any “solicitation” of “proxies” ​(as such terms are used in the proxy rules of the SEC) or consents or undertakings to vote, or to seek to influence or control, in any manner whatsoever, the voting of any securities of the Company, (iii) make any statement or proposal to the Company Board (which would legally be required to be publicly disclosed), the Company’s representatives or any of its stockholders with respect to, or make any public announcement with respect to, or solicit or submit a proposal or offer for, directly or indirectly, any merger, business combination, recapitalization, reorganization, asset purchase, tender offer, exchange offer or other similar extraordinary transaction involving the Company or any of its securities, assets or properties, (iv) form, join or in any way participate in a “group” as defined in Section 13(d)(3) of the Exchange Act in connection with any of the foregoing, (v) otherwise seek representation on or to influence or control, in any manner whatsoever, alone or in concert with others, the management, board of directors or policies of the Company, (vi) make any public proposal or publicly disclose any intention, plan or arrangement inconsistent with any of the foregoing, (vii) demand a copy of the Company’s record of security holders, stock ledger list or any other books or records of the Company, (viii) advise, assist, direct or encourage, directly or indirectly, any other person in connection with any of the foregoing, (ix) take any action that could reasonably be expected to require the Company to make a public announcement regarding any of the foregoing events, (x) contest the validity of the Confidentiality Agreement or make, initiate, take or participate in any demand, action (legal or otherwise) or proposal to amend, waive or terminate this section of the Confidentiality Agreement, (xi) request the Company to amend or waive any provision of the standstill provisions of the Confidentiality Agreement, or make any public announcement with respect to the foregoing restrictions or (xii) advise, assist or encourage, or direct any person to advise, assist or encourage any other person, in connection with any of the foregoing. Notwithstanding the above, Brookfield would be entitled to make confidential proposals to the Company Board (or any committee thereof) regarding any of the matters set forth in clauses (i) or (iii) above, subject to certain limitations set forth in the Confidentiality Agreement. The standstill provisions of the Confidentiality Agreement would terminate if, among other things, a tender or exchange offer were commenced that, if consummated, would result in all or a majority of the Company’s equity securities being owned by persons other than the Company or current holders of the Company’s equity securities and the Company Board failed to recommend within ten business days from the date of commencement of such offer that the Company’s stockholders reject such offer.
This summary and description of the Confidentiality Agreement does not purport to be complete and is qualified in its entirety by reference to the Confidentiality Agreement, which is filed as Exhibit (d)(2) to the Schedule TO, which is incorporated herein by reference.
12.
Purpose of the Offer; Plans for the Company.
 
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Purpose of the Offer.    We are making the Offer because we want to acquire the entire equity interest in the Company. The Offer, as the first step in the acquisition of the Company, is intended to facilitate the acquisition of any and all issued and outstanding Shares.
Purchaser intends to consummate the Merger as soon as practicable after consummation of the Offer. The purpose of the Merger is to acquire all outstanding Shares not tendered and purchased pursuant to the Offer. Following the consummation of the Offer and subject to the satisfaction or waiver of certain conditions, Purchaser will be merged with and into the Company. Following the effective time, the separate corporate existence of Purchaser shall cease and the Company will continue as the surviving corporation.
All Shares acquired by Purchaser pursuant to the Offer will be retained by Purchaser pending the Merger. If you sell your Shares in the Offer, you will cease to have any equity interest in the Company or any right to participate in its earnings and future growth. If you do not tender your Shares, but the Merger is consummated, you will also no longer have an equity interest in the Company. Similarly, after selling your Shares in the Offer or upon consummation of the Merger, you will not bear the risk of any decrease in the value of the Company.
Stockholder Approval.    If the Offer is consummated and as a result the Shares irrevocably accepted for purchase in the Offer (but excluding Shares tendered pursuant to guaranteed delivery procedures that have not yet been “received” ​(as defined in Section 251(h) of the DGCL)), together with the Shares otherwise owned by Purchaser and its affiliates represent a majority of the outstanding Shares, the Company does not anticipate seeking the approval of its remaining public stockholders before effecting the Merger. Section 251(h) of the DGCL provides that, subject to certain statutory requirements, if following consummation of a successful tender offer for a public corporation, the stock irrevocably accepted for purchase in the offer and “received” ​(as defined in Section 251(h) of the DGCL) by the depository for the offer prior to the expiration of such offer, together with the stock otherwise owned by the acquirer or its affiliates, equals at least the amount of shares of each class of stock of the target corporation that would otherwise be required to approve a merger involving the target corporation, and the other stockholders receive the same consideration for their stock in the Merger as was payable in the tender offer, the acquirer can effect a merger without the action of the other stockholders of the target corporation. Therefore, the parties have agreed that, subject to the conditions specified in the Merger Agreement, the Merger will become effective as soon as practicable after (but on the same day as) the consummation of the Offer after the satisfaction or waiver of the conditions to the Merger set forth in the Merger Agreement, without a vote of the Company’s stockholders, in accordance with Section 251(h) of the DGCL.
Plans for the Company.    If we accept Shares for payment pursuant to the Offer, we will obtain control over the management of the Company and the Company Board shortly thereafter.
As of the effective time, the certificate of incorporation of the surviving corporation will be amended and restated as a result of the Merger so as to read in its entirety as set forth in the applicable annex to the Merger Agreement, and the bylaws of the surviving corporation will be amended and restated to be the same as the bylaws of Purchaser in effect immediately before the effective time of the Merger, and the provisions with respect to limitation of liabilities to directors and officers and indemnification in such certificate of incorporation and bylaws will not be amended, repealed or otherwise modified in any manner that would adversely in any respect affect the rights of individuals who were directors, officers, employees or agents of the Company or any subsidiary of the Company. The directors of Purchaser immediately prior to the effective time will be the directors of the surviving corporation and the officers of the Company immediately prior to the effective time will be the officers of the surviving corporation. Such directors and officers will hold office until their respective successors are duly elected or appointed and qualified or until the earlier of their death, resignation or removal in accordance with the certificate of incorporation and bylaws of the surviving corporation.
Immediately following the consummation of the Merger, Parent intends to cause the Company to delist the Shares from NASDAQ. Parent intends to cause the Company to terminate the registration of the Shares under the Exchange Act as soon as practicable after consummation of the Merger as the requirements for termination of registration are met.
Parent and Purchaser are conducting a detailed review of the Company and its assets, corporate structure, capitalization, indebtedness, operations, properties, policies, management and personnel, and will
 
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consider which changes would be desirable in light of the circumstances that exist upon completion of the Offer and the Merger. Parent and Purchaser will continue to evaluate the business and operations of the Company during the pendency of the Offer and after the consummation of the Offer and the Merger and will take such actions as they deem appropriate under the circumstances then existing. Thereafter, Parent intends to review such information as part of a comprehensive review of the Company’s business, operations, capitalization, indebtedness and management. Possible changes could include changes in the Company’s business, corporate structure, certificate of incorporation, bylaws, capitalization and management or changes to the Company Board. Plans may change based on further analysis and Parent, Purchaser and, after completion of the Offer and the Merger, the reconstituted Company Board, reserve the right to change their plans and intentions at any time, as deemed appropriate.
Except as disclosed in this Offer to Purchase, Parent and Purchaser do not have any present plan or proposal that would result in the acquisition by any person of additional securities of the Company, the disposition of securities of the Company, an extraordinary corporate transaction, such as a merger, reorganization or liquidation, involving the Company or the purchase, sale or transfer of a material amount of assets of the Company.
To the best knowledge of Parent and Purchaser, except for certain pre-existing agreements described in the Schedule 14D-9, no material employment, equity contribution, or other agreement, arrangement or understanding between any executive officer or director of the Company, on the one hand, and Parent, Purchaser or the Company, on the other hand, existed as of the date of the Merger Agreement, and neither the Offer nor the Merger is conditioned upon any executive officer or director of the Company entering into any such agreement, arrangement or understanding.
13.
Certain Effects of the Offer.
Market for the Shares.    If the Offer is consummated, Purchaser will complete the Merger as soon as practicable after the consummation of the Offer, subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement. As a result, there will be no market for the Shares following consummation of the Offer.
NASDAQ Listing.    If the Offer is consummated, Purchaser will complete the Merger as soon as practicable after the consummation of the Offer, subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement. As a result, the Shares will no longer meet the requirements for continued listing on NASDAQ because there will only be a single holder of the Shares, which will be Parent. Immediately following the consummation of the Merger, Parent intends to cause the Company to delist the Shares from NASDAQ.
Exchange Act Registration.    The Shares are currently registered under the Exchange Act. Such registration may be terminated upon application of the Company to the SEC if the Shares are neither listed on a national securities exchange nor held by 300 or more holders of record. Termination of registration of the Shares under the Exchange Act would substantially reduce the information required to be furnished by the Company to its stockholders and to the SEC and would make certain provisions of the Exchange Act no longer applicable to the Company, such as the short-swing profit recovery provisions of Section 16(b) of the Exchange Act, the requirement of furnishing a proxy statement pursuant to Section 14(a) of the Exchange Act in connection with stockholders’ meetings and the related requirement of furnishing an annual report to stockholders and the requirements of Rule 13e-3 under the Exchange Act with respect to “going private” transactions. In addition, the ability of “affiliates” of the Company and persons holding “restricted securities” of the Company to dispose of such securities pursuant to Rule 144 promulgated under the Securities Act of 1933, as amended, may be impaired or eliminated. We intend and will cause the Company to terminate the registration of the Shares under the Exchange Act as soon after consummation of the Merger as the requirements for termination of registration are met.
Margin Regulations.    The Shares are currently “margin securities” under the Regulations of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), which has the effect, among other things, of allowing brokers to extend credit on the collateral of the Shares. Depending upon factors similar to those described above regarding the market for the Shares and stock quotations, it is
 
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possible that, following the Offer, the Shares would no longer constitute “margin securities” for the purposes of the margin regulations of the Federal Reserve Board and, therefore, could no longer be used as collateral for loans made by brokers.
14.
Dividends and Distributions.
As discussed in Section 11 — “The Merger Agreement; Other Agreements,” the Merger Agreement provides that from the date of the Merger Agreement until the earlier of the effective time or the termination of the Merger Agreement in accordance with its terms, except as required by the Merger Agreement, required by law or order or consented to in writing by Parent (such consent not to be unreasonably withheld, conditioned or delayed), the Company will not establish a record date for, declare, set aside for payment or pay any dividend on, or make any other distribution in respect of, any Shares or other equity or voting interests other than with respect to (x) dividends and distributions by a direct or indirect wholly owned Subsidiary of the Company to its direct or indirect parent or (y) any regular quarterly cash dividend made by the Company to holders of Shares, in an amount of up to $0.15 per Share for any such quarterly dividend.
15.
Conditions of the Offer.
The Offer is not subject to any financing condition. Notwithstanding any other provisions of the Offer but subject to the terms of the Merger Agreement, Purchaser is not required to accept for purchase or, subject to any applicable rules and regulations of the SEC (including Rule 14e-1(c) under the Exchange Act), pay for any Shares validly tendered (and not validly withdrawn) in the Offer, unless, immediately prior to the then-scheduled applicable Offer Expiration Time:

the Minimum Tender Condition has been satisfied;

the Antitrust Approvals Condition has been satisfied;

no governmental authority of competent jurisdiction has enacted, issued, promulgated, or entered any order or applicable law that would make the Offer or the Merger illegal or otherwise prevent the consummation thereof;

The representations and warranties of the Company (i) set forth in Section 3.12(b) of the Merger Agreement (absence of material adverse effect) shall be true and correct in all respects as of the Offer Expiration Time with the same effect as though made as of the Offer Expiration Time, (ii) set forth in the first three sentences of Section 3.8(a) of the Merger Agreement (the Company’s authorized, issued and outstanding equity securities) shall be true and correct in all respects (except for what is de minimis in nature) as of the Offer Expiration Time with the same effect as though made as of the Offer Expiration Time (except to the extent expressly made as of an earlier date, in which case as of such earlier date), (iii) set forth in Section 3.1 (organization and power), Section 3.3 (corporate authorization), Section 3.4 (enforceability), the last sentence of Section 3.8(a) (treatment of Company equity awards), Section 3.8(b) (due authorization of the Shares), Section 3.8(c) (no further issuance of equity securities), Section 3.8(e) (no outstanding obligations relating to equity securities) and Section 3.8(f) (no voting trusts) (solely as such representations relate to the Company), Section 3.27 (opinion of financial advisor) and Section 3.28 (no broker’s fees) of the Merger Agreement shall be true and correct (disregarding all qualifications or limitations as to “materiality”, “Company Material Adverse Effect” and words of similar import set forth therein) in all material respects as of the Offer Expiration Time with the same effect as though made as of the Offer Expiration Time (except to the extent expressly made as of an earlier date, in which case as of such earlier date) and (iv) set forth in the Merger Agreement, other than those Sections specifically identified in clauses (i), (ii) and (iii) of this paragraph, shall be true and correct (disregarding all qualifications or limitations as to “materiality”, “Company Material Adverse Effect” and words of similar import set forth therein) as of the Offer Expiration Time with the same effect as though made as of the Offer Expiration Time (except to the extent expressly made as of an earlier date, in which case as of such earlier date), except, in the case of this clause (iv), where the failure to be true and correct would not reasonably be expected to have a Company Material Adverse Effect (the “Company Representation Condition”);

the Company has performed or complied with, in all material respects, its obligations, agreements and covenants required by the Merger Agreement to be performed or complied with by it on or prior
 
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to the Offer Expiration Time and any such failure to comply has not been cured by the Offer Expiration Time (the “Obligations Condition”);

since April 7, 2022, there has not been any fact, change, event, development, occurrence or effect that has had, or would reasonably be expected to have, a Company Material Adverse Effect that is continuing (the “Material Adverse Effect Condition”);

the Company shall have delivered to Parent a certificate, signed by an executive officer of the Company, certifying that the Company Representation Condition, the Obligation Condition and the Material Adverse Effect Condition have been satisfied;

the Termination Condition has been satisfied; and

the Inside Date Condition has been satisfied.
For purposes of determining whether the Minimum Tender Condition has been satisfied, Shares tendered in the Offer pursuant to guaranteed delivery procedures that have not been “received” ​(as such terms are defined by Section 251(h) of the DGCL) prior to the Offer Expiration Time are excluded. The conditions to the Offer must be satisfied or waived (to the extent waiver is permitted under applicable law) on or prior to the Offer Expiration Time.
The conditions described above are in addition to, and not a limitation of, the rights and obligations of Parent and Purchaser to extend, terminate or modify the Offer pursuant to the terms of the Merger Agreement.
The conditions described above are for the sole benefit of Parent and Purchaser and may be waived by Parent and Purchaser in whole or in part, at any time and from time to time in their sole discretion, except that Parent and Purchaser are not permitted to waive the Minimum Tender Condition or the Termination Condition, except, in the case of the Minimum Tender Condition, with the prior written consent of the Company. The failure by Parent or Purchaser at any time to exercise any of the foregoing rights will not be deemed a waiver of any such right, the waiver of any such right with respect to particular facts and circumstances shall not be deemed a waiver with respect to any other facts and circumstances and each such right will be deemed an ongoing right that may be asserted at any time and from time to time.
16.
Certain Legal Matters; Regulatory Approvals.
General
Except as described in this Section 16, Purchaser is not aware of any pending legal proceeding relating to the Offer. Except as described in this Section 16, based on its examination of publicly available information filed by the Company with the SEC and other publicly available information concerning the Company, Purchaser is not aware of any governmental license or regulatory permit that appears to be material to the Company’s business that might be adversely affected by Purchaser’s acquisition of Shares as contemplated herein or of any approval or other action by any governmental, administrative or regulatory authority or agency, domestic or foreign, that would be required for the acquisition or ownership of Shares by Purchaser or Parent as contemplated herein. Should any such approval or other action be required, Purchaser currently contemplates that, except as described below under “State Takeover Statutes,” such approval or other action will be sought. While Purchaser does not currently intend to delay acceptance for payment of Shares tendered pursuant to the Offer pending the outcome of any such matter, there can be no assurance that any such approval or other action, if needed, would be obtained or would be obtained without substantial conditions or that if such approvals were not obtained or such other actions were not taken, adverse consequences might not result to the Company’s business, or certain parts of the Company’s business might not have to be disposed of, any of which could cause Purchaser to elect to terminate the Offer without the purchase of Shares thereunder under certain conditions. See Section 15 — “Conditions of the Offer.”
State Takeover Statutes
A number of states (including Delaware, where the Company is incorporated) have adopted takeover laws and regulations which purport, to varying degrees, to be applicable to attempts to acquire securities of
 
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corporations which are incorporated in such states or which have substantial assets, stockholders, principal executive offices or principal places of business therein.
As a Delaware corporation, the Company has not opted out of Section 203 of the DGCL. In general, Section 203 of the DGCL would prevent an “interested stockholder” ​(generally defined in Section 203 of the DGCL as a person beneficially owning 15% or more of a corporation’s voting stock and the affiliates and associates of any such person) from engaging in a “business combination” ​(as defined in Section 203 of the DGCL) with a Delaware corporation for three years following the time such person became an interested stockholder unless: (i) before such person became an interested stockholder, the board of directors of the corporation approved the transaction in which the interested stockholder became an interested stockholder or approved the business combination; (ii) upon consummation of the transaction which resulted in the interested stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced (excluding for purposes of determining the number of shares of outstanding stock held by directors who are also officers and by employee stock plans that do not allow plan participants to determine confidentially whether to tender shares); or (iii) following the transaction in which such person became an interested stockholder, the business combination is (a) approved by the board of directors of the corporation and (b) authorized at a meeting of stockholders by the affirmative vote of the holders of at least 66 2/3% of the outstanding voting stock of the corporation not owned by the interested stockholder. Neither we nor any of our respective affiliates is or has been during the past three years an “interested stockholder” of the Company as defined in Section 203 of the DGCL. Accordingly, the approval by the Company Board of the Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger is sufficient to render the restrictions on business combinations contained in Section 203 of the DGCL inapplicable to the Offer and the Merger.
The Company has represented to us in the Merger Agreement that no other “moratorium,” “control share acquisition,” “fair price,” or other anti-takeover laws and regulations apply or will apply to the Company pursuant to the Merger Agreement or the Merger or the Offer. Purchaser has not attempted to comply with any other state takeover statutes in connection with the Offer or the Merger. Purchaser reserves the right to challenge the validity or applicability of any state law allegedly applicable to the Offer, the Merger, the Merger Agreement or the transactions contemplated thereby, and nothing in this Offer to Purchase or any action taken in connection herewith is intended as a waiver of that right. In the event that it is asserted that one or more takeover statutes apply to the Offer or the Merger, and it is not determined by an appropriate court that such statute or statutes do not apply or are invalid as applied to the Offer, the Merger, or the Merger Agreement, as applicable, Purchaser may be required to file certain documents with, or receive approvals from, the relevant state authorities, and Purchaser might be unable to accept for payment or purchase Shares tendered pursuant to the Offer or be delayed in continuing or consummating the Offer. In such case, Purchaser may not be obligated to accept for purchase, or pay for, any Shares tendered. See Section 13 — “Conditions of the Offer.”
The Company, directly or through subsidiaries, conducts business in a number of states throughout the United States, some of which have enacted takeover laws. Other than Section 203 of the DGCL (as to which, as described above, the Company has taken necessary action to render the restrictions on business combinations contained therein inapplicable to the Offer and the Merger), we do not know whether any of these laws will, by their terms, apply to the Offer or the Merger and have not attempted to comply with any such laws. Should any person seek to apply any state takeover law, we will take such action as then appears desirable, which may include challenging the validity or applicability of any such statute in appropriate court proceedings. In the event any person asserts that the takeover laws of any state are applicable to the Offer or the Merger, and an appropriate court does not determine that it is inapplicable or invalid as applied to the Offer or the Merger, we may be required to file certain information with, or receive approvals from, the relevant state authorities. In addition, if enjoined, we may be unable to accept for payment any Shares tendered pursuant to the Offer, or be delayed in continuing or consummating the Offer and the Merger. In such case, we may not be obligated to accept for payment any Shares tendered in the Offer. See Section 13 — “Conditions of the Offer.”
Dissenters’ Rights.
No appraisal rights are available to the holders of Shares in connection with the Offer. However, if the Merger takes place pursuant to Section 251(h) of the DGCL, stockholders whose Shares are not accepted
 
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for purchase pursuant to the Offer and who properly demand appraisal of their Shares pursuant to, and who comply in all respects with, Section 262 of the DGCL will have appraisal rights under Section 262 of the DGCL. If you choose to exercise your appraisal rights in connection with the Merger, you comply with the applicable legal requirements under the DGCL and you neither waive, withdraw nor otherwise lose your rights to appraisal under the DGCL, you will be entitled to payment in cash in an amount equal to the “fair value” of your Shares (exclusive of any element of value arising from the accomplishment or expectation of the Merger) as determined by the Delaware Court of Chancery, together with interest, if any, to be paid upon the amount determined to be the fair value. This value may be the same as or more or less than the price that Purchaser is offering to pay you in the Offer and the Merger. Moreover, the surviving corporation may argue in an appraisal proceeding that, for purposes of such a proceeding, the fair value of such Shares is less than the price paid in the Offer and the Merger.
Under Section 262 of the DGCL, where a merger is approved under Section 251(h) of the DGCL, either a constituent corporation before the effective date of the merger, or the surviving corporation within ten days thereafter, will 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 and that appraisal rights are available for any or all shares of such class or series of stock of such constituent corporation, and will include in such notice a copy of Section 262. The Schedule 14D-9 constitutes the formal notice of appraisal rights under Section 262 of the DGCL. Any holder of Shares who wishes to exercise such appraisal rights or who wishes to preserve his, her or its right to do so should review the discussion of appraisal rights in the Schedule 14D-9 as well as Section 262 of the DGCL, attached as Annex B to the Schedule 14D-9, carefully because failure to timely and properly comply with the procedures of Section 262 of the DGCL may result in the loss of appraisal rights under the DGCL.
Because of the complexity of the procedures for exercising appraisal rights, any stockholder wishing to exercise appraisal rights or to preserve the right to do so is urged to consult legal counsel.
As described more fully in the Schedule 14D-9, if a stockholder elects to exercise appraisal rights under Section 262 of the DGCL with respect to Shares held immediately prior to the effective time, such stockholder must do all of the following:

within the later of the consummation of the Offer, which will occur on the date on which Purchaser irrevocably accepts for purchase the Shares validly tendered in the Offer, and twenty days after the date of mailing of the notice of appraisal rights in the Schedule 14D-9 (which date of mailing is April 22, 2022), demand in writing the appraisal of such stockholder’s Shares, which demand must be sent to the Company at the address indicated in the Schedule 14D-9 and reasonably inform the Company of the identity of the stockholder and that the stockholder is demanding appraisal for such Shares;

not tender (or, if tendered, not fail to withdraw prior to the Offer Expiration Time) such Shares in the Offer; and

continuously hold of record such Shares from the date on which the written demand for appraisal is made through the date of the Merger.
The foregoing summary of the rights of the Company’s stockholders to seek appraisal rights under Delaware law does not purport to be a complete statement of the procedures to be followed by stockholders desiring to exercise appraisal rights and is qualified in its entirety by reference to Section 262 of the DGCL. The preservation and proper exercise of appraisal rights requires adherence to the applicable provisions of the DGCL. Failure to timely and properly comply with the procedures of Section 262 of the DGCL may result in the loss of appraisal rights. A copy of Section 262 of the DGCL is included as Annex B to the Schedule 14D-9.
Appraisal rights cannot be exercised at this time. The information provided above is for informational purposes only with respect to your alternatives if the Merger is completed. If you tender (and do not validly withdraw prior to the Offer Expiration Time) your Shares in the Offer, you will not be entitled to exercise appraisal rights with respect to your Shares but, instead, upon the terms and subject to the conditions to the Offer, you will receive the Offer Price for your Shares.
Antitrust Compliance
U.S. Antitrust Laws
Parent and the Company filed Premerger Notification and Report Forms with the FTC and the DOJ relating to Parent’s proposed acquisition of the Company on April 21, 2022. Consequently, the required
 
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waiting period with respect to the Offer will expire at 11:59 p.m., New York City time, on May 6, 2022, unless early termination of the waiting period is granted or the waiting period is extended.
Under the provisions of the HSR Act, applicable to the Offer, the acquisition of Shares pursuant to the Offer may be consummated following the expiration of a 15-day waiting period following the filing by Parent of its Premerger Notification and Report Form with respect to the Offer, unless Parent receives a request for additional information or documentary material from the DOJ or the FTC or unless early termination of the waiting period is granted. Parent may also withdraw its Premerger Notification and Report Form on or before the last day of the 15-day waiting period and refile the Form within two business days of withdrawal, which would initiate a new 15-day waiting period. If, within the initial 15-day waiting period, either the DOJ or the FTC requests additional information or documentary material concerning the Offer, the waiting period will be extended through the 10th day after the date of substantial compliance by Parent. Complying with a request for additional information or documentary material may take a significant amount of time.
At any time before or after Parent’s acquisition of Shares pursuant to the Offer, the Antitrust Division or the FTC could take such action under the antitrust laws as either deems necessary or desirable in the public interest, including seeking to enjoin the purchase of Shares pursuant to the Offer, or seeking the divestiture of Shares acquired by Parent or the divestiture of substantial assets of the Company or its subsidiaries or Parent or its subsidiaries. State attorneys general may also bring legal action under both state and federal antitrust laws, as applicable. Private parties may also bring legal action under the antitrust laws under certain circumstances. There can be no assurance that a challenge to the Offer on antitrust grounds will not be made or, if such a challenge is made, the result thereof.
Canadian Antitrust Laws
In addition, under the Competition Act, transactions involving parties with sales above certain revenue thresholds cannot be consummated until they are reviewed and approved by the Competition Bureau of Canada following submission of the requisite filings and/or a request for an advance ruling certificate. The parties submitted a request for an advanced ruling certificate pursuant to the Competition Act on April 21, 2022.
17.
Fees and Expenses.
We have retained the Depositary, the Paying Agent and the Information Agent in connection with the Offer. Each of the Depositary, the Paying Agent and the Information Agent will receive customary compensation, reimbursement for reasonable out-of-pocket expenses and indemnification against certain liabilities in connection with the Offer, including liabilities under the United States federal securities laws.
As part of the services included in such retention, the Information Agent may contact holders of Shares by personal interview, mail, electronic mail, telephone, and other methods of electronic communication, and may request brokers, dealers, commercial banks, trust companies and other nominees to forward the Offer materials to beneficial holders of Shares.
Except as set forth above, we will not pay any fees or commissions to any broker or dealer or other person for soliciting tenders of Shares pursuant to the Offer. Brokers, dealers, commercial banks and trust companies will upon request be reimbursed by us for customary mailing and handling expenses incurred by them in forwarding the offering material to their customers.
18.
Miscellaneous.
The Offer is not being made to (nor will tenders be accepted from or on behalf of) holders of Shares in any jurisdiction in which the making of the Offer or the acceptance thereof would not be in compliance with the securities, “blue sky” or other applicable laws of such jurisdiction. However, Purchaser may, in its discretion, take such action as it may deem necessary to make the Offer comply with the laws of any such jurisdiction and extend the Offer to holders of Shares in such jurisdiction in compliance with applicable laws. In those jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.
 
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Purchaser and Parent have filed with the SEC the Schedule TO (including exhibits) in accordance with the Exchange Act, furnishing certain additional information with respect to the Offer and may file amendments thereto. If the Offer is completed, Purchaser will file a final amendment to the Schedule TO reporting promptly the results of the Offer pursuant to Rule 14d-3 under the Exchange Act. A copy of the Schedule TO and any amendments thereto (including exhibits) may be examined and copies may be obtained from the SEC in the manner set forth in Section 7 — “Certain Information Concerning the Company — Available Information.”
No person has been authorized to give any information or make any representation on behalf of Parent or Purchaser not contained in this Offer to Purchase or in the Letter of Transmittal and, if given or made, that information or representation must not be relied upon as having been authorized. Neither delivery of this Offer to Purchase nor any purchase pursuant to the Offer will, under any circumstances, create any implication that there has been no change in the affairs of Parent, Purchaser, the Company or any of their respective subsidiaries since the date as of which information is furnished or the date of this Offer to Purchase.
 
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SCHEDULE I
INFORMATION RELATING TO PARENT, PURCHASER AND CERTAIN RELATED PARTIES
1. Purchaser
The Purchaser, a Delaware corporation, was formed on April 5, 2022, solely for the purpose of completing the proposed Offer and Merger and has conducted no business activities other than those related to the structuring and negotiation of the Offer and the Merger and arranging financing therefor. Purchaser is a direct, wholly owned subsidiary of Parent and has not engaged in any business except as contemplated by the Merger Agreement. The principal office address of Purchaser is 250 Vesey Street, 15th Floor, New York, NY 10281-1023. The telephone number at the principal office is (212) 417-7000.
Directors and Executive Officers of Purchaser
The name, position, business address, citizenship, present principal occupation or employment and material occupations, positions, offices or employment for the past five years of each of the directors and executive officers of Purchaser are set forth below. The principal office address of each such director and executive officer is 50 Vesey Street, 15th Floor, New York, NY 10281-1023. The telephone number at the principal office is (212) 417-7000. David Gregory is a citizen of Canada. All other directors and executive officers listed below are citizens of the United States.
Name and Position
Present Principal Occupation or Employment and Employment History
Craig Laurie
   Managing Partner and Director
Craig Laurie is a Managing Partner in Brookfield Asset Management Inc.’s Private Equity Group, responsible for overseeing capital markets, finance and planning. Mr. Laurie has held a number of senior finance positions across the organization, including Chief Financial Officer of Brookfield Business Partners. Mr. Laurie joined Brookfield in 1997.
Mark Weinberg
   Managing Partner and Director
Mark Weinberg is a Managing Partner in Brookfield Asset Management Inc.’s Private Equity Group, responsible for investment origination, analysis and execution in the U.S. Mr. Weinberg joined Brookfield in 2006. He is a member of the board of directors of Westinghouse Electric Corporation, DexKo Global, BRANDSAFWAY and Clarios.
Ron Bloom
Vice Chairman and Managing Partner
Ron Bloom has been the Vice Chairman and Managing Partner at Brookfield Asset Management Inc., responsible for investment origination, analysis and execution across North America, since 2016. He is a member of the board of directors of Westinghouse and Clarios.
David Gregory
   Managing Partner
Dave Gregory is a Managing Partner in Brookfield Asset Management Inc.’s Private Equity Group, responsible for investment origination, analysis and execution in the U.S. Mr. Gregory joined Brookfield in 2010.
Kristen Haase
   Managing Director and Secretary
Kristen Haase is a Managing Director in Brookfield Asset Management Inc.’s Private Equity Group. In this role, she is responsible for the legal aspects of transaction execution for North America. Ms. Haase joined Brookfield in 2015 as a Director, was a Vice President from 2017 to 2020, Senior Vice President from 2020 to 2022 and has been a Managing Director since 2022.
Michael Layfield
   Senior Vice President and Director
Michael Layfield is Senior Vice President in Brookfield Asset Management Inc.’s Private Equity Group, responsible for U.S. tax function for Brookfield’s various series of funds and
 
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Name and Position
Present Principal Occupation or Employment and Employment History
transactions related cross-border acquisitions, dispositions, add-ons and debt repurchases in the U.S. Mr. Layfield joined Brookfield in 2017 as Director of Tax, was Vice President of Tax from 2019 to 2021 and has been Senior Vice President of Tax since 2021.
Luke Ricci
   Vice President
Luke Ricci is Vice President in Brookfield Asset Management Inc.’s Private Equity Group, responsible for the legal aspects of transaction execution for North America. Mr. Ricci joined Brookfield in 2018 as a Director of Legal and has been Vice President since 2022. Prior to joining Brookfield, Mr. Ricci was an associate at Cleary Gottlieb Steen & Hamilton from 2014 to 2018.
2. Parent
Parent is a Delaware limited liability company and was formed on April 5, 2022 solely for the purpose of completing the Offer and the Merger and has conducted no business activities other than those related to the structuring and negotiation of the Offer and the Merger. Until immediately prior to the time the Purchaser purchases Shares pursuant to the Offer, it is not anticipated that Parent will have any significant assets or liabilities or engage in activities other than those incidental to its formation, capitalization and the transactions contemplated by the Offer and/or the Merger. The principal office address of Parent is 250 Vesey Street, 15th Floor, New York, NY 10281-1023. The telephone number at the principal office is (212) 417-7000.
Directors and Executive Officers of Parent
The name, position, business address, citizenship, present principal occupation or employment and material occupations, positions, offices or employment for the past five years of each of the directors and executive officers of Parent are set forth below. The principal office address of each such director and executive officer is 250 Vesey Street, 15th Floor, New York, NY 10281-1023. The telephone number at the principal office is (212) 417-7000. David Gregory is a citizen of Canada. All other directors and executive officers listed below are citizens of the United States.
Name and Position
Present Principal Occupation or Employment and Employment History
Craig Laurie
   Managing Partner and Manager
See above.
Mark Weinberg
   Managing Partner and Manager
See above.
Ron Bloom
   Vice Chairman, Managing Partner and Manager
See above.
David Gregory
   Managing Partner
See above.
Kristen Haase
   Managing Director and Secretary
See above.
Michael Layfield
   Senior Vice President and Manager
See above.
Luke Ricci
   Vice President
See above.
3. BCP VI
BCP VI L.P. is a Cayman Islands exempted limited partnership. BCP VI is a private investment fund that purchases, sells, trades and invests in equity and debt securities and other business opportunities. The business address for BCP VI is: 250 Vesey Street, 15th Floor, New York, NY 10281-1023.
 
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Directors and Executive Officers of BCP VI
The name, position, business address, citizenship, present principal occupation or employment and material occupations, positions, offices or employment for the past five years of each of the directors and executive officers of BCP VI are set forth below. The principal office address of each such director and executive officer is 250 Vesey Street, 15th Floor, New York, NY 10281-1023. The telephone number at the principal office is (212) 417-7000. David Gregory is a citizen of Canada. All other directors and executive officers listed below are citizens of the United States.
Name and Position
Present Principal Occupation or Employment and Employment History
Craig Laurie
   Managing Partner and Manager
See above.
Mark Weinberg
   Managing Partner and Manager
See above.
Ron Bloom
   Vice Chairman, Managing Partner and Manager
See above.
David Gregory
   Managing Partner
See above.
Kristen Haase
   Managing Director and Secretary
See above.
Michael Layfield
   Senior Vice President and Manager
See above.
Luke Ricci
   Vice President
See above.
 
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The Letter of Transmittal, certificates for Shares and any other required documents should be sent by each stockholder of the Company or such stockholder’s broker, dealer, commercial bank, trust company or other nominee to the Depositary as follows:
The Depositary for the Offer is:
The Depositary for the Offer is:
[MISSING IMAGE: lg_computershare-bw.jpg]
By Mail:
Computershare
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
By Overnight Courier:
Computershare
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021
Notices of Guaranteed Delivery and notice of withdrawals can also be mailed to CANOTICEOFGUARANTEE@Computershare.com. Any questions or requests for assistance may be directed to the Information Agent at its telephone number and location listed below. Requests for additional copies of this Offer to Purchase and the Letter of Transmittal may be directed to the Information Agent at its telephone number and location listed below. You may also contact your broker, dealer, commercial bank or trust company or other nominee for assistance concerning the Offer.
Other Information:
Questions or requests for assistance or additional copies of this Offer to Purchase, the Letter of Transmittal, and the Notice of Guaranteed Delivery may be directed to the Information Agent at its location and telephone numbers set forth below. Stockholders may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offer.
The Information Agent for the Offer is:
MacKenzie Partners, Inc.
1407 Broadway
New York, New York 10018
(212) 929-5500
Call Toll-Free (800) 322-2885
Fax: (646) 439-9201
Email: tenderoffer@mackenziepartners.com
 

 Exhibit (a)(1)(B)
LETTER OF TRANSMITTAL
To Tender Shares of Common Stock
of
CDK GLOBAL, INC.
a Delaware corporation
at
$54.87 PER SHARE
Pursuant to the Offer to Purchase
Dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly owned subsidiary of
CENTRAL PARENT LLC
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
ONE MINUTE FOLLOWING 11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME,
ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED.
The Depositary for the Offer is:
[MISSING IMAGE: lg_computershare-bw.jpg]
By Mail:
Computershare
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
By Overnight Courier:
Computershare
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021
Online tender at www.brookcashtender.com
Delivery of this Letter of Transmittal to an address other than as set forth above will not constitute a valid delivery to the Depositary (as defined below). If you are delivering via mail, you must sign this Letter of Transmittal in the appropriate space provided therefor below, with signature guaranteed, if required, and complete the Internal Revenue Service (the “IRS”) Form W-9 included in this Letter of Transmittal, if required. Stockholders who are not United States persons should submit a properly completed and signed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or other appropriate IRS Form W-8. Failure to provide the information on IRS Form W-9 or an appropriate IRS Form W-8, as applicable, may subject you to United States federal income tax backup withholding on any payments made to you pursuant to the Offer (as defined below). The instructions set forth in this Letter of Transmittal should be read carefully before you tender any of your Shares (as defined below) into the Offer (as defined below).
DESCRIPTION OF SHARES TENDERED
Shares Tendered
Total Number of
Shares Tendered*
Name(s) and Address(es) of Registered Holder(s)
(Please fill in, if blank, exactly as name(s) appear(s) on certificate(s)) (Attach additional signed list if necessary)
Certificate
Number(s)
Total Number of
Shares Represented by
Certificate(s)
Book Entry
Shares
Tendered
Total Shares
*
Unless otherwise indicated, it will be assumed that all Shares described in the chart above are being tendered. See Instruction 4.

 
The Offer is being made to all holders of the Shares. Purchaser is not aware of any jurisdiction in which the making of the Offer or the acceptance thereof would be prohibited by securities, “blue sky” or other valid laws of such jurisdiction. If Purchaser becomes aware of any U.S. state in which the making of the Offer or the acceptance of Shares pursuant thereto would not be in compliance with an administrative or judicial action taken pursuant to a U.S. state statute, Purchaser will make a good faith effort to comply with any such law. If, after such good faith effort, Purchaser cannot comply with any such law, the Offer will not be made to the holders of Shares in such state. In any jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.
This Letter of Transmittal is to be used by stockholders of CDK Global, Inc. (“CDK Global” or the “Company”) if certificates (“Certificates”) for shares of common stock, par value $0.01 per share, of the Company (the “Shares”) are to be forwarded herewith or, unless an Agent’s Message (as defined in Section 3 of the Offer to Purchase, dated April 22, 2022 (the “Offer to Purchase”)) is utilized, if delivery of Shares is to be made by book-entry transfer to an account maintained by Computershare Trust Company, N.A. at The Depositary Trust Company (“DTC”) (as described in Section 2 of the Offer to Purchase and pursuant to the procedures set forth in Section 3 thereof).
Stockholders whose Certificates are not immediately available, who cannot complete the procedure for book-entry transfer on a timely basis, or who cannot deliver all other required documents to the Depositary on or prior to the Offer Expiration Time (as defined below) must tender their Shares according to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase in order to participate in the Offer. Shares tendered by the Notice of Guaranteed Delivery (as defined below) will be excluded from the calculation of the Minimum Tender Condition (as defined in the Offer to Purchase), unless such Shares and other required documents are received by the Depositary on or prior to the Offer Expiration Time. See Instruction 2. Delivery of documents to DTC does not constitute delivery to the Depositary.
Additional Information if Certificates Have Been Lost, Destroyed or Stolen, are Being Delivered by Book-Entry Transfer, or are Being Delivered Pursuant to a Previous Notice of Guaranteed Delivery
If Certificates you are tendering with this Letter of Transmittal have been lost, stolen, destroyed or mutilated, you should contact EQ Shareowner Services in its capacity as transfer agent (the “Transfer Agent”), toll-free at 877-778-6783 regarding the requirements for replacement. You may be required to post a bond to secure against the risk that the Certificates may be subsequently recirculated. You are urged to contact the Transfer Agent immediately in order to receive further instructions, for a determination of whether you will need to post a bond and to permit timely processing of this documentation. See Instruction 11.

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED HEREWITH.

CHECK HERE IF YOU HAVE LOST YOUR CERTIFICATE(S) AND REQUIRE ASSISTANCE IN OBTAINING REPLACEMENT CERTIFICATE(S). BY CHECKING THIS BOX, YOU UNDERSTAND THAT YOU MUST CONTACT EQ SHAREOWNER SERVICES TO OBTAIN INSTRUCTIONS FOR REPLACING LOST CERTIFICATES. SEE INSTRUCTION 11.

CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE TO AN ACCOUNT MAINTAINED BY THE DEPOSITARY WITH DTC AND COMPLETE THE FOLLOWING (NOTE THAT ONLY FINANCIAL INSTITUTIONS THAT ARE PARTICIPANTS IN THE SYSTEM OF DTC MAY DELIVER SHARES BY BOOK-ENTRY TRANSFER):
Name of Tendering Institution: 
DTC Account Number: 
      Transaction Code Number: 
 
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CHECK HERE IF TENDERED SHARES ARE BEING DELIVERED PURSUANT TO A NOTICE OF GUARANTEED DELIVERY PREVIOUSLY SENT TO THE DEPOSITARY AND COMPLETE THE FOLLOWING:
Name(s) of Tendering Stockholder(s): 
Window Ticket Number (if any): 
Date of Execution of Notice of Guaranteed Delivery: 
Name of Eligible Institution that Guaranteed Delivery: 
 
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NOTE: SIGNATURES MUST BE PROVIDED BELOW.
PLEASE READ ACCOMPANYING INSTRUCTIONS CAREFULLY
Ladies and Gentlemen:
The undersigned hereby tenders to Central Merger Sub Inc. (“Purchaser”), a Delaware corporation, and a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company (“Parent”), the above described shares of common stock, par value $0.01 per share (the “Shares”), of CDK Global, Inc., a Delaware corporation (the “Company”), pursuant to Purchaser’s offer to purchase each issued and outstanding Share that is validly tendered and not properly withdrawn, at a price of $54.87 per Share, without interest, to the seller in cash, less any applicable withholding taxes, upon the terms and subject to the conditions (including the Minimum Tender Condition) described in the Offer to Purchase, dated April 22, 2022 (the “Offer to Purchase”), and in this Letter of Transmittal (the “Letter of Transmittal” which, together with the Offer to Purchase, as each may be amended and supplemented from time to time, collectively constitute the “Offer”), receipt of which is hereby acknowledged.
Upon the terms and subject to the conditions of the Offer (and if the Offer is extended or amended, the terms of any such extension or amendment), and effective upon acceptance for payment of the Shares tendered herewith and not validly withdrawn on or prior to the Offer Expiration Time (as defined in the Offer to Purchase) in accordance with the terms of the Offer, the undersigned hereby sells, assigns and transfers to or upon the order of Purchaser all right, title and interest in and to all of the Shares that are being tendered hereby (and any and all dividends, distributions, rights, other Shares or other securities issued or issuable in respect thereof on or after the date hereof (collectively, “Distributions”)) and irrevocably constitutes and appoints Purchaser the true and lawful agent and attorney-in-fact of the undersigned with respect to such Shares (and any and all Distributions), with full power of substitution (such power of attorney being deemed to be an irrevocable power coupled with an interest in the Shares tendered by this Letter of Transmittal), to (i) deliver Certificates for such Shares (and any and all Distributions) or transfer ownership of such Shares (and any and all Distributions) on the account books maintained by The Depositary Trust Company (“DTC”) or otherwise held in book-entry form, together, in any such case, with all accompanying evidences of transfer and authenticity, to or upon the order of Purchaser, (ii) present such Shares (and any and all Distributions) for transfer on the books of the Company and (iii) receive all benefits and otherwise exercise all rights of beneficial ownership of such Shares (and any and all Distributions), all in accordance with the terms and subject to the conditions of the Offer.
By executing this Letter of Transmittal (or taking action resulting in the delivery of an Agent’s Message, as defined in Section 3 of the Offer to Purchase), the undersigned hereby irrevocably appoints each of the designees of Purchaser the attorneys-in-fact and proxies of the undersigned, each with full power of substitution, to (i) vote at any annual or special meeting of Company stockholders or any adjournment or postponement thereof or otherwise in such manner as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to, (ii) execute any written consent concerning any matter as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to and (iii) otherwise act as each such attorney-in-fact and proxy or its, his or her substitute shall in its, his or her sole discretion deem proper with respect to, all of the Shares (and any and all Distributions) tendered hereby and accepted for payment by Purchaser. This appointment will be effective if and when, and only to the extent that, Purchaser accepts such Shares for payment pursuant to the Offer. This power of attorney and proxy are irrevocable and are granted in consideration of the acceptance for payment of such Shares in accordance with the terms of the Offer. Such acceptance for payment shall, without further action, revoke any prior powers of attorney and proxies granted by the undersigned at any time with respect to such Shares (and any and all Distributions), and no subsequent powers of attorney, proxies, consents or revocations may be given by the undersigned with respect thereto (and, if given, will not be deemed effective). Purchaser reserves the right to require that, in order for the Shares to be deemed validly tendered, immediately upon Purchaser’s acceptance for payment of such Shares, Purchaser or its designees must be able to exercise full voting, consent and other rights with respect to such Shares (and any and all Distributions), including voting at any meeting of Company stockholders.
 
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The undersigned hereby represents and warrants that the undersigned has full power and authority to tender, sell, assign and transfer any and all of the Shares tendered hereby (and any and all Distributions) and that, when the same are accepted for payment by Purchaser, Purchaser will acquire good and unencumbered title to such Shares (and such Distributions), free and clear of all liens, restrictions, charges and encumbrances and the same will not be subject to any adverse claims. The undersigned hereby represents and warrants that the undersigned is the registered owner of the Shares, or the Certificate(s) have been endorsed to the undersigned in blank, or the undersigned is a participant in DTC whose name appears on a security position listing as the owner of the Shares. The undersigned will, upon request, execute and deliver any additional documents deemed by Computershare Trust Company, N.A. (the “Depositary”) or Purchaser to be necessary or desirable to complete the sale, assignment and transfer of the Shares tendered hereby (and any and all Distributions). In addition, the undersigned shall remit and transfer promptly to the Depositary for the account of Purchaser all Distributions in respect of any and all of the Shares tendered hereby, accompanied by appropriate documentation of transfer, and, pending such remittance and transfer or appropriate assurance thereof, Purchaser shall be entitled to all rights and privileges as owner of each such Distribution and may withhold the entire purchase price of the Shares tendered hereby or deduct from such purchase price the amount or value of such Distribution as determined by Purchaser in its sole discretion.
It is understood that the undersigned will not receive payment for the Shares unless and until the Shares are accepted for payment and until the Certificate(s) owned by the undersigned are received by the Depositary at the address set forth above, together with such additional documents as the Depositary may require, or, in the case of Shares held in book-entry form, ownership of Shares is validly transferred on the account books maintained by DTC, and until the same are processed for payment by the Depositary.
IT IS UNDERSTOOD THAT THE METHOD OF DELIVERY OF THE SHARES, THE CERTIFICATE(S) AND ALL OTHER REQUIRED DOCUMENTS (INCLUDING DELIVERY THROUGH DTC) IS AT THE OPTION AND RISK OF THE UNDERSIGNED AND THAT THE RISK OF LOSS OF SUCH SHARES, CERTIFICATE(S) AND OTHER DOCUMENTS SHALL PASS ONLY AFTER THE DEPOSITARY HAS ACTUALLY RECEIVED THE SHARES OR CERTIFICATE(S) (INCLUDING, IN THE CASE OF A BOOK-ENTRY TRANSFER, BY BOOK-ENTRY CONFIRMATION (AS DEFINED BELOW)). IF DELIVERY IS BY MAIL, IT IS RECOMMENDED THAT ALL SUCH DOCUMENTS BE SENT BY PROPERLY INSURED REGISTERED MAIL WITH RETURN RECEIPT REQUESTED. DELIVERY WILL BE DEEMED EFFECTIVE AND RISK OF LOSS AND TITLE WILL PASS FROM THE OWNER ONLY WHEN RECEIVED BY THE DEPOSITARY. IN ALL CASES, SUFFICIENT TIME SHOULD BE ALLOWED TO ENSURE TIMELY DELIVERY.
All authority herein conferred or agreed to be conferred shall not be affected by, and shall survive the death or incapacity of the undersigned, and any obligation of the undersigned hereunder shall be binding upon the heirs, executors, administrators, personal representatives, trustees in bankruptcy, successors and assigns of the undersigned. Except as stated in the Offer to Purchase, this tender is irrevocable.
The undersigned understands that the valid tender of Shares pursuant to any of the procedures described in the Offer to Purchase and in the instructions hereto will constitute the undersigned’s acceptance of the terms and conditions of the Offer. Purchaser’s acceptance of such Shares for payment will constitute a binding agreement between the undersigned and Purchaser upon the terms and subject to the conditions of the Offer (and if the Offer is extended or amended, the terms and conditions of such extension or amendment). The undersigned recognizes that under certain circumstances set forth in the Offer, Purchaser may not be required to accept for payment any Shares tendered hereby.
Unless otherwise indicated under “Special Payment Instructions,” a check will be issued for the purchase price of all Shares purchased in the name(s) of, and, if appropriate, Certificates not tendered or accepted for payment will be returned to, the registered holder(s) appearing above under “Description of Shares Tendered.” Similarly, unless otherwise indicated under “Special Delivery Instructions,” the check for the purchase price of all Shares purchased will be mailed to, and, if appropriate, any Certificates not tendered or not accepted for payment (and any accompanying documents, as appropriate) will be returned to, the address(es) of the registered holder(s) appearing above under “Description of Shares Tendered.” In the event that the boxes entitled “Special Payment Instructions” and “Special Delivery Instructions” are both completed, the check for the purchase price of all Shares purchased will be issued in the name(s) of, and, if
 
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appropriate, any Certificates not tendered or not accepted for payment (and any accompanying documents, as appropriate) will be returned to, the person(s) so indicated. Unless otherwise indicated herein in the box entitled “Special Payment Instructions,” any Shares tendered herewith that are not accepted for payment will be credited by book-entry transfer by crediting the account at DTC designated above. The undersigned recognizes that Purchaser has no obligation, pursuant to the “Special Payment Instructions,” to transfer any Shares from the name of the registered holder thereof if Purchaser does not accept for payment any of the Shares so tendered.
SPECIAL PAYMENT INSTRUCTIONS
(See Instructions 1, 5, 6 and 7)
To be completed ONLY if the check for the purchase price of Shares accepted for payment and/or Certificates not tendered or not accepted for payment are to be issued in the name of someone other than the undersigned.
Issue check and/or Certificates to:
Name:      
 
                              (Please Print)
Address:   
 
                         (Include Zip Code)
(Taxpayer Identification No. (e.g., Social Security No.)) (Also complete, as appropriate, the IRS Form W-9 included below)
SPECIAL DELIVERY INSTRUCTIONS
(See Instructions 1, 5, 6 and 7)
To be completed ONLY if the check for the purchase price of Shares accepted for payment and/or Certificates evidencing Shares not tendered or not accepted are to be mailed to someone other than the undersigned or to the undersigned at an address other than that shown above.
Mail check and/or Certificates to:
Name:      
 
                              (Please Print)
Address:   
 
                         (Include Zip Code)
IMPORTANT
STOCKHOLDER: YOU MUST SIGN BELOW
(U.S. Holders: Please complete and return the IRS Form W-9 included below)
(Non-U.S. Holders: Please obtain, complete and return the appropriate IRS Form W-8)
(Signature(s) of Holder(s) of Shares)
Dated:
Name(s):   
 
                                                                  (Please Print)
Capacity (full title) (See Instruction 5):   
 
Address:   
 
                                                            (Include Zip Code)
Area Code and Telephone No.:   
 
Tax Identification No. (e.g., Social Security No.) (See IRS Form W-9 included below):    
(Must be signed by registered holder(s) exactly as name(s) appear(s) on Certificate(s) or on a security position listing or by person(s) authorized to become registered holder(s) by Certificates and documents transmitted herewith. If signature is by a trustee, executor, administrator, guardian, attorney-in-fact, agent, officer of a corporation or other person acting in a fiduciary or representative capacity, please set forth full title and see Instruction 5.)
 
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INSTRUCTIONS
FORMING PART OF THE TERMS AND CONDITIONS OF THE OFFER
1. Guarantee of Signatures.   No signature guarantee is required on this Letter of Transmittal (a) if this Letter of Transmittal is signed by the registered holder(s) (which term, for purposes of this Instruction, includes any participant in DTC’s systems whose name appears on a security position listing as the owner of the Shares) of Shares tendered herewith, unless such registered holder has completed either the box entitled “Special Payment Instructions” or the box entitled “Special Delivery Instructions” on this Letter of Transmittal or (b) if such Shares are tendered for the account of a financial institution (including most commercial banks, savings and loan associations and brokerage houses) that is a member in good standing of the Securities Transfer Agents Medallion Program or any other “eligible guarantor institution,” as such term is defined in Rule 17Ad-15 under the Securities Exchange Act of 1934, as amended (each, an “Eligible Institution”). In all other cases, including those referred to above, all signatures on this Letter of Transmittal must be guaranteed by an Eligible Institution. See Instruction 5.
2. Requirements of Tender.   No alternative, conditional or contingent tenders will be accepted. In order for Shares to be validly tendered pursuant to the Offer, one of the following procedures must be followed:
For Shares held as physical certificates, the Certificates representing tendered Shares, a properly completed and duly executed Letter of Transmittal, together with any required signature guarantees, and any other documents required by this Letter of Transmittal, must be received by the Depositary at one of its addresses set forth on the front page of this Letter of Transmittal before the Offer Expiration Time.
For Shares held in book-entry form, either a properly completed and duly executed Letter of Transmittal, together with any required signature guarantees, or an Agent’s Message in lieu of this Letter of Transmittal, and any other required documents, must be received by the Depositary at the appropriate address set forth on the front page of this Letter of Transmittal, and such Shares must be delivered according to the book-entry transfer procedures (as set forth in Section 3 of the Offer to Purchase) and a timely confirmation of a book-entry transfer of Shares into the Depositary’s account at DTC (a “Book-Entry Confirmation”) must be received by the Depositary, in each case before the Offer Expiration Time.
Stockholders whose Certificates are not immediately available, or who cannot complete the procedure for delivery by book-entry transfer prior to the Offer Expiration Time or who cannot deliver all other required documents to the Depositary prior to the Offer Expiration Time, may tender their Shares by properly completing and duly executing a notice of guaranteed delivery (a “Notice of Guaranteed Delivery”) pursuant to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase. Pursuant to such procedure: (i) such tender must be made by or through an Eligible Institution, (ii) a properly completed and duly executed Notice of Guaranteed Delivery, substantially in the form made available by Purchaser, must be received by the Depositary by the Offer Expiration Time and (iii) Certificates (or a Book-Entry Confirmation) evidencing all tendered Shares, in proper form for transfer, in each case together with this Letter of Transmittal, properly completed and duly executed, together with any required signature guarantees (or, in the case of book-entry transfer of Shares, either this Letter of Transmittal or an Agent’s Message in lieu of this Letter of Transmittal), and any other documents required by this Letter of Transmittal, must be received by the Depositary within two NASDAQ trading days after the date of execution of such Notice of Guaranteed Delivery. A Notice of Guaranteed Delivery may be delivered by overnight courier or mailed or e-mailed to the Depositary and must include a guarantee by an Eligible Institution in the form set forth in the form of Notice of Guaranteed Delivery made available by Purchaser. In the case of Shares held through DTC, the Notice of Guaranteed Delivery must be delivered to the Depositary by a participant by means of the confirmation system of DTC. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Tender Condition, unless such Shares and other required documents are received by the Depositary by the Offer Expiration Time.
The method of delivery of Shares, this Letter of Transmittal and all other required documents, including delivery through DTC, is at the election and risk of the tendering stockholder. Shares will be deemed delivered (and the risk of loss of Certificates will pass) only when actually received by the Depositary (including, in the case of a book-entry transfer, by Book-Entry Confirmation). If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery.
 
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No fractional Shares will be purchased. By executing this Letter of Transmittal, the tendering stockholder waives any right to receive any notice of the acceptance for payment of Shares.
3. Inadequate Space.   If the space provided herein is inadequate, Certificate numbers, the number of Shares represented by such Certificates and/or the number of Shares tendered should be listed on a separate signed schedule attached hereto.
4. Partial Tenders (Not Applicable to Stockholders who Tender by Book-Entry Transfer).   If fewer than all the Shares represented by any Certificate delivered to the Depositary are to be tendered, fill in the number of Shares which are to be tendered in the box entitled “Total Number of Shares Tendered.” In such case, a new Certificate for the remainder of the Shares represented by the old Certificate will be sent to the person(s) signing this Letter of Transmittal, unless otherwise provided in the appropriate box on this Letter of Transmittal, as promptly as practicable following the expiration or termination of the Offer. All Shares represented by Certificates delivered to the Depositary will be deemed to have been tendered unless otherwise indicated.
5. Signatures on Letter of Transmittal; Stock Powers and Endorsements.
(a) Exact Signatures.   If this Letter of Transmittal is signed by the registered holder(s) of the Shares tendered hereby, the signature(s) must correspond with the name(s) as written on the face of the Certificates without alteration, enlargement or any change whatsoever.
(b) Joint Holders.   If any of the Shares tendered hereby are held of record by two or more persons, all such persons must sign this Letter of Transmittal.
(c) Different Names on Certificates.   If any of the Shares tendered hereby are registered in different names on different Certificates, it will be necessary to complete, sign and submit as many separate Letters of Transmittal as there are different registrations of Certificates.
(d) Endorsements.   If this Letter of Transmittal is signed by the registered holder(s) of the Shares tendered hereby, no endorsements of Certificates or separate stock powers are required unless payment of the purchase price is to be made, or Shares not tendered or not purchased are to be returned, in the name of any person other than the registered holder(s). Signatures on any such Certificates or stock powers must be guaranteed by an Eligible Institution.
(e) Stock Powers.   If this Letter of Transmittal is signed by a person other than the registered holder(s) of the Shares tendered hereby, Certificates must be endorsed or accompanied by appropriate stock powers, in either case, signed exactly as the name(s) of the registered holder(s) appear(s) on the Certificates for such Shares. Signature(s) on any such Certificates or stock powers must be guaranteed by an Eligible Institution. See Instruction 1.
(f) Evidence of Fiduciary or Representative Capacity.   If this Letter of Transmittal or any Certificate or stock power is signed by a trustee, executor, administrator, guardian, attorney-in-fact, officer of a corporation or other legal entity or other person acting in a fiduciary or representative capacity, such person should so indicate when signing, and proper evidence satisfactory to the Depositary of the authority of such person so to act must be submitted. Proper evidence of authority includes a power of attorney, a letter of testamentary or a letter of appointment.
6. Stock Transfer Taxes.   Except as otherwise provided in this Instruction 6, Purchaser or any successor entity thereto will pay all stock transfer taxes with respect to the transfer and sale of any Shares to it pursuant to the Offer (for the avoidance of doubt, transfer taxes do not include U.S. federal income taxes or withholding taxes). If, however, consideration is to be paid to, or if Certificate(s) for Shares not tendered or not accepted for payment are to be registered in the name of, any person(s) other than the registered holder(s), or if tendered Certificate(s) for Share(s) are registered in the name of any person(s) other than the person(s) signing this Letter of Transmittal, Purchaser will not be responsible for any stock transfer or similar taxes (whether imposed on the registered holder(s) or such other person(s) or otherwise) payable on account of the transfer to such other person(s) and no consideration shall be paid in respect of such Share(s) unless evidence satisfactory to Purchaser of the payment of such taxes, or exemption therefrom, is submitted.
 
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7. Special Payment and Delivery Instructions.   If a check is to be issued for the purchase price of any Shares tendered by this Letter of Transmittal in the name of, and, if appropriate, Certificates for Shares not tendered or not accepted for payment are to be issued or returned to, any person(s) other than the signer of this Letter of Transmittal or if a check and, if appropriate, such Certificates are to be returned to any person(s) other than the person(s) signing this Letter of Transmittal or to an address other than that shown in this Letter of Transmittal, the appropriate boxes on this Letter of Transmittal must be completed.
8. Tax Withholding.   Under U.S. federal income tax laws, the Depositary may be required to withhold as “backup withholding” a portion of any payments made to certain stockholders pursuant to the Offer. To avoid such backup withholding, a tendering stockholder that is a United States person (as defined in the instructions to IRS Form W-9), and, if applicable, each other U.S. payee, is required to (a) provide the Depositary with a correct Taxpayer Identification Number (“TIN”) on IRS Form W-9, which is included herein, and to certify, under penalty of perjury, that such number is correct and that such stockholder or payee is not subject to backup withholding of U.S. federal income tax or (b) otherwise establish a basis for exemption from backup withholding. Failure to provide the information on the IRS Form W-9 may subject the tendering stockholder or payee to backup withholding at the applicable rate (currently 24%), and such stockholder or payee may be subject to a penalty imposed by the IRS. See the enclosed IRS Form W-9 and the instructions therewith for additional information.
Certain United States persons (including, among others, corporations) may not be subject to backup withholding. Exempt stockholders or payees that are United States persons should furnish their TIN, check the appropriate box on the IRS Form W-9 and sign, date and return the IRS Form W-9 to the Depositary to avoid backup withholding. A stockholder or other payee that is not a United States person may qualify as an exempt recipient by providing the Depositary with a properly completed IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, or other appropriate IRS Form W-8, signed under penalties of perjury, attesting to such stockholder or payee’s foreign status or by otherwise establishing an exemption. An appropriate IRS Form W-8 may be obtained from the Depositary or the IRS website (https://www.irs.gov/forms-instructions).
Backup withholding is not an additional tax. Rather, the federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If backup withholding results in an overpayment of taxes, a refund or credit may be obtained from the IRS if eligibility is established and appropriate procedure is followed.
9. Irregularities.   All questions as to the validity, form, eligibility (including time of receipt) and acceptance for payment of any tender of Shares will be determined by Purchaser, in its sole discretion, which determination shall be final and binding on all parties. However, stockholders may challenge Purchaser’s determinations in a court of competent jurisdiction. Purchaser reserves the absolute right to reject any and all tenders determined by it not to be in proper form or the acceptance for payment of which may, in the opinion of its counsel, be unlawful. Purchaser also reserves the absolute right to waive any defect or irregularity in the tender of any Shares of any particular stockholder, whether or not similar defects or irregularities are waived in the case of other stockholders. No tender of Shares will be deemed to have been validly made until all defects and irregularities have been waived or cured within such time as Purchaser shall determine. None of Parent, Purchaser, the Depositary, MacKenzie Partners, Inc. (the “Information Agent”) or any other person will be under any duty to give notice of any defects or irregularities in tenders or incur any liability for failure to give any such notice. Purchaser’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the instructions thereto) will be final and binding.
10. Questions and Requests for Additional Copies.   The Information Agent may be contacted at the address and telephone number set forth on the last page of this Letter of Transmittal for questions and/or requests for additional copies of the Offer to Purchase, this Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance. Such copies will be furnished promptly at Purchaser’s expense.
11. Lost, Stolen Destroyed or Mutilated Certificates.   If any Certificate has been lost, stolen, destroyed or mutilated, the stockholder should promptly notify the Transfer Agent toll-free at 877-778-6783. The stockholder will then be instructed as to the steps that must be taken in order to replace such Certificates. You may be required to post a bond to secure against the risk that the Certificates(s) may be subsequently
 
9

 
recirculated. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, destroyed or stolen certificates have been followed. You are urged to contact the Transfer Agent immediately in order to receive further instructions and for a determination of whether you will need to post a bond and to permit timely processing of this documentation. This Letter of Transmittal and related documents cannot be processed until the procedures for replacing lost, destroyed, mutilated or stolen Certificates have been followed.
Certificates evidencing tendered Shares, or a Book-Entry Confirmation into the Depositary’s account at DTC, as well as this Letter of Transmittal, properly completed and duly executed, with any required signature guarantees, or an Agent’s Message (if utilized in lieu of this Letter of Transmittal in connection with a book-entry transfer), and any other documents required by this Letter of Transmittal, must be received before the Offer Expiration Time, or the tendering stockholder must comply with the procedures for guaranteed delivery.
CERTIFICATE OF TAXPAYER AWAITING IDENTIFICATION NUMBER
I certify under the penalties of perjury that a taxpayer identification number has not been issued to me, and either (a) I have mailed or delivered an application to receive a taxpayer identification number to the appropriate Internal Revenue Service Center or Social Security Administration Office, or (b) I intend to mail or deliver an application in the near future. I understand that if I do not provide a taxpayer identification number to the Depositary or otherwise establish an exemption from backup withholding, 24% of all reportable payments made to me will be withheld, but will be refunded to me if I provide a certified taxpayer identification number within 60 days.
                                             Signature:
Date:
 
10

 
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The Depositary for the Offer is:
[MISSING IMAGE: lg_computershare-bw.jpg]
By Mail:
Computershare
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
By Overnight Courier:
Computershare
c/o Voluntary Corporate Actions
150 Royall Street
Suite V
Canton, MA 02021
The Information Agent may be contacted at its address and telephone number listed below for questions and/or requests for additional copies of the Offer to Purchase, this Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials. You may also contact your broker, dealer, commercial bank, trust company or other nominee for assistance. Such copies will be furnished promptly at Purchaser’s expense.
The Information Agent for the Offer is:
[MISSING IMAGE: lg_mackenziepartners-bw.jpg]
1407 Broadway
New York, New York 10018
(212) 929-5500
or
Call Toll-Free (800) 322-2885
Email: tenderoffer@mackenziepartners.com
 

 
 Exhibit (a)(1)(C)
NOTICE OF GUARANTEED DELIVERY
For Tender of Shares of Common Stock
of
CDK GLOBAL, INC.
a Delaware corporation
at
$54.87 Per Share
Pursuant to the Offer to Purchase dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly owned subsidiary of
CENTRAL PARENT LLC
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
ONE MINUTE FOLLOWING 11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME,
ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE
“OFFER EXPIRATION TIME”).
This Notice of Guaranteed Delivery, or one substantially in the form hereof, must be used to accept the Offer (as defined below) if (i) certificates representing shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (the “Company” and such shares, the “Shares”), are not immediately available, (ii) the procedure for book-entry transfer cannot be completed prior to the expiration of the Offer or (iii) time will not permit all required documents to reach Computershare Trust Company, N.A. (the “Depositary”) prior to the Offer Expiration Time. This Notice of Guaranteed Delivery may be delivered by overnight courier or mailed or e-mailed to the Depositary. See Section 3 of the Offer to Purchase (as defined below).
The Depositary for the Offer is:
[MISSING IMAGE: lg_computershare-bw.jpg]
By Mail:
Computershare
c/o Voluntary Corporate Actions
P.O. Box 43011
Providence, RI 02940-3011
By Overnight Courier:
Computershare
c/o Voluntary Corporate Actions
150 Royall Street, Suite V
Canton, MA 02021
Via Email: CANOTICEOFGUARANTEE@computershare.com
All questions on the Offer should be directed to the Information Agent listed in the Offer to Purchase.
DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.
THIS NOTICE OF GUARANTEED DELIVERY IS NOT TO BE USED TO GUARANTEE SIGNATURES. IF A SIGNATURE ON A LETTER OF TRANSMITTAL IS REQUIRED TO BE GUARANTEED BY AN ELIGIBLE INSTITUTION (AS DEFINED IN SECTION 3 OF THE OFFER TO PURCHASE) UNDER THE INSTRUCTIONS THERETO, SUCH SIGNATURE GUARANTEE MUST APPEAR IN THE APPLICABLE SPACE PROVIDED IN THE SIGNATURE BOX ON THE APPROPRIATE LETTER OF TRANSMITTAL.
 

 
The Eligible Institution that completes this Notice of Guaranteed Delivery must communicate the guarantee to the Depositary and must deliver the Letter of Transmittal (as defined below) or an Agent’s Message (as defined in Section 3 of the Offer to Purchase) and certificates for Shares (or Book-Entry Confirmation, as defined in Section 3 of the Offer to Purchase) to the Depositary within the time period shown herein. Failure to do so could result in a financial loss to such Eligible Institution.
 

 
Ladies and Gentlemen:
The undersigned hereby tenders to Central Merger Sub Inc., a Delaware corporation and a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated April 22, 2022 (as it may be amended or supplemented from time to time, the “Offer to Purchase”), and the related Letter of Transmittal (as it may be amended or supplemented from time to time, the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”), receipt of which is hereby acknowledged, the number of Shares specified below, pursuant to the guaranteed delivery procedure set forth in Section 3 of the Offer to Purchase. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Tender Condition (as defined in the Offer to Purchase), unless such Shares and other required documents are received by the Depositary by the Offer Expiration Time.
Number of Shares and Certificate No.(s):
(if available)
☐  Check here if Shares will be tendered by book-entry transfer.
Name of Tendering Institution:   
DTC Account Number:            
Dated:                                   
Number of Record Holders:
(Please type or print)
Address(es):                        
(Zip Code)
Area Code and Tel. No.:         
(Daytime telephone number)
Signature(s):                        
Notice of Guaranteed Delivery
 

 
GUARANTEE
(Not to be used for signature guarantee)
The undersigned, an Eligible Institution, hereby (i) represents that the tender of Shares effected hereby complies with Rule 14e-4 under the Securities Exchange Act of 1934, as amended, and (ii) within two NASDAQ trading days after the date hereof, (A) guarantees delivery to the Depositary, at one of its addresses set forth above, of certificates representing the Shares tendered hereby, in proper form for transfer, together with a properly completed and duly executed Letter of Transmittal and any other documents required by the Letter of Transmittal or (B) guarantees a Book-Entry Confirmation of the Shares tendered hereby into the Depositary’s account at The Depository Trust Company (pursuant to the procedures set forth in Section 3 of the Offer to Purchase), together with a properly completed and duly executed Letter of Transmittal, or an Agent’s Message (defined in Section 3 of the Offer to Purchase) in lieu of such Letter of Transmittal, and any other documents required by the Letter of Transmittal.
Name of Firm:                      
 
Address:                              
 
(Zip Code)
Area Code and Telephone No.:   
 

(Authorized Signature)
Name:                                  
 
(Please type or print)
Title:                                   
 
Date:                                    
 
NOTE:
DO NOT SEND CERTIFICATES REPRESENTING TENDERED SHARES WITH THIS NOTICE. CERTIFICATES REPRESENTING TENDERED SHARES SHOULD BE SENT WITH YOUR LETTER OF TRANSMITTAL.
 

 
 Exhibit (a)(1)(D)
Offer To Purchase For Cash
Any and All Issued and Outstanding Shares of Common Stock
of
CDK GLOBAL, INC.
a Delaware corporation
at
$54.87 Per Share
Pursuant to the Offer to Purchase dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly owned subsidiary of
CENTRAL PARENT LLC
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT
ONE MINUTE FOLLOWING 11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME,
ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “OFFER EXPIRATION TIME”).
April 22, 2022
To Brokers, Dealers, Commercial Banks, Trust Companies and Other Nominees:
We have been engaged by Central Merger Sub Inc., a Delaware corporation (“Purchaser”) and a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company (“Parent”), to act as Information Agent in connection with Purchaser’s offer to purchase any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (the “Company” and such shares, the “Shares”), at a price of $54.87 per Share, without interest (the “Offer Price”), to the seller in cash, less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase dated April 22, 2022 (the “Offer to Purchase”), and the related Letter of Transmittal (the “Letter of Transmittal” and which, together with the Offer to Purchase, each as may be amended or supplemented from time to time, constitute the “Offer”) enclosed herewith. Please furnish copies of the enclosed materials to those of your clients for whom you hold Shares registered in your name or in the name of your nominee.
THE BOARD OF DIRECTORS OF THE COMPANY HAS UNANIMOUSLY RECOMMENDED THAT STOCKHOLDERS ACCEPT THE OFFER AND TENDER THEIR SHARES IN THE OFFER.
The Offer is not subject to any financing condition. The conditions to the Offer are described in Section 15 of the Offer to Purchase.
For your information and for forwarding to your clients for whom you hold Shares registered in your name or in the name of your nominee, we are enclosing the following documents:
1.   The Offer to Purchase;
2.   The Letter of Transmittal for your use in accepting the Offer and tendering Shares and for the information of your clients, together with the included Internal Revenue Service Form W-9;
3.   A Notice of Guaranteed Delivery to be used to accept the Offer if Shares and all other required documents cannot be delivered to Computershare Trust Company, N.A. (the “Depositary”) by the expiration of the Offer or if the procedure for book-entry transfer cannot be completed by the expiration of the Offer (the “Notice of Guaranteed Delivery”);
4.   A form of letter which may be sent to your clients for whose accounts you hold Shares registered in your name or in the name of your nominee, with space provided for obtaining such clients’ instructions with regard to the Offer; and
 

 
5.   The Company’s Solicitation/Recommendation Statement on Schedule 14D-9, dated April 22, 2022.
We urge you to contact your clients as promptly as possible. Please note that the Offer and withdrawal rights will expire at one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022, unless the Offer is extended or earlier terminated. Pursuant to the Merger Agreement, the Offer is conditioned upon, among other things, the “Inside Date Condition”, which requires that the Offer Expiration Time will not occur prior to Friday, July 1, 2022. If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) will have been satisfied or waived (to the extent waiver is permitted under applicable law), Purchaser will extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022.
The Offer is being made in connection with the Agreement and Plan of Merger, dated as of April 7, 2022 (together with any amendments or supplements thereto, the “Merger Agreement”), by and among the Company, Parent and Purchaser, pursuant to which, as soon as practicable following the consummation of the Offer and upon the satisfaction or waiver of certain conditions, Purchaser will be merged with and into the Company, without a vote of the Company’s stockholders in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (the “DGCL”), and the Company will be the surviving corporation and a wholly owned subsidiary of Parent (such merger, the “Merger”). As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL) will be cancelled and automatically converted into the right to receive the Offer Price in cash (without interest and less any applicable withholding taxes), which we refer to as the “Merger Consideration.” Shares described in clauses (i), (ii) and (iii) above will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv) will entitle their holders only to the rights granted to them under Section 262 of the DGCL. Following the Merger, the Company will cease to be a publicly traded company.
THE BOARD OF DIRECTORS OF THE COMPANY HAS UNANIMOUSLY RECOMMENDED THAT STOCKHOLDERS ACCEPT THE OFFER AND TENDER THEIR SHARES IN THE OFFER.
For Shares to be properly tendered pursuant to the Offer, (a) the share certificates or confirmation of receipt of such Shares under the procedure for book-entry transfer, together with a properly completed and duly executed Letter of Transmittal, including any required signature guarantees, or, in the case of book-entry transfer, either such Letter of Transmittal or an Agent’s Message (as defined in Section 3 of the Offer to Purchase) in lieu of such Letter of Transmittal, and any other documents required in the Letter of Transmittal, must be timely received by the Depositary, or (b) the tendering stockholder must comply with the guaranteed delivery procedures, all in accordance with the Offer to Purchase and the Letter of Transmittal. You may gain some additional time by making use of the Notice of Guaranteed Delivery. Shares tendered by the Notice of Guaranteed Delivery will be excluded from the calculation of the Minimum Tender Condition (as defined in the Introduction of the Offer to Purchase), unless such Shares and other required documents are received by the Depositary by the Offer Expiration Time.
Except as set forth in the Offer to Purchase, Purchaser will not pay any fees or commissions to any broker or dealer or other person, other than to us, as the information agent, and Computershare Trust Company, N.A., as the depositary, for soliciting tenders of Shares pursuant to the Offer. Purchaser will, however, upon request, reimburse brokers, dealers, commercial banks, trust companies and other nominees for customary mailing and handling expenses incurred by them in forwarding the offering material to their customers. Purchaser will pay all stock transfer taxes applicable to its purchase of Shares pursuant to the Offer, subject to Instruction 6 of the Letter of Transmittal.
 

 
Any inquiries you may have with respect to the Offer should be addressed to, and additional copies of the enclosed materials may be obtained from, the undersigned at the address and telephone numbers set forth below.
Very truly yours,
MacKenzie Partners, Inc.
 

 
Nothing contained herein or in the enclosed documents shall render you the agent of Parent, Purchaser, the Information Agent or the Depositary or any affiliate of any of them or authorize you or any other person to use any document or make any statement on behalf of any of them in connection with the Offer other than the enclosed documents and the statements contained therein.
The Information Agent for the Offer is:
[MISSING IMAGE: lg_mackenziepartners-bw.jpg]
1407 Broadway
New York, New York 10018
(212) 929-5500
or
Call Toll-Free (800) 322-2885
Email: tenderoffer@mackenziepartners.com
 

 
 Exhibit (a)(1)(E)
Offer to Purchase for Cash
Any and All Issued and Outstanding Shares of Common Stock
of
CDK GLOBAL, INC.
a Delaware corporation
at
$54.87 Per Share
Pursuant to the Offer to Purchase dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly-owned subsidiary of
CENTRAL PARENT LLC
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE FOLLOWING
11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME, ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “OFFER EXPIRATION TIME”).
April 22, 2022
To Our Clients:
Enclosed for your consideration are the Offer to Purchase, dated April 22, 2022 (the “Offer to Purchase”), and the related Letter of Transmittal (the “Letter of Transmittal” and which, together with the Offer to Purchase, as each may be amended or supplemented from time to time, constitute, the “Offer”) in connection with the offer by Central Merger Sub Inc., a Delaware corporation (“Purchaser”) and a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company (“Parent”), to purchase, subject to certain conditions, including the satisfaction of the Minimum Tender Condition, as defined in the Offer to Purchase, any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (the “Company” and such shares, the “Shares”), at a price of $54.87 per Share, without interest (the “Offer Price”), to the holder in cash, less any applicable withholding taxes, upon the terms and subject to the conditions set forth in the Offer to Purchase.
THE BOARD OF DIRECTORS OF THE COMPANY HAS UNANIMOUSLY RECOMMENDED THAT YOU ACCEPT THE OFFER AND TENDER YOUR SHARES IN THE OFFER.
We or our nominees are the holder of record of Shares held for your account. A tender of such Shares can be made only by us as the holder of record and pursuant to your instructions. The Letter of Transmittal accompanying this letter is furnished to you for your information only and cannot be used by you to tender Shares held by us for your account.
We request instructions as to whether you wish for us to tender any or all of the Shares held by us for your account, upon the terms and subject to the conditions set forth in the enclosed Offer to Purchase and the Letter of Transmittal.
Please note carefully the following:
1. The offer price for the Offer is $54.87 per Share, without interest, to you in cash less any applicable withholding taxes.
2. The Offer is being made for any and all issued and outstanding Shares.
3. The Offer is being made in connection with the Agreement and Plan of Merger, dated as of April 7, 2022 (together with any amendments or supplements thereto, the “Merger Agreement”), by and among the Company, Parent and Purchaser, pursuant to which, as soon as practicable following the consummation of the Offer and upon the satisfaction or waiver of certain conditions, Purchaser will be merged with and into the Company, without a vote of the Company’s stockholders in accordance
 

 
with Section 251(h) of the General Corporation Law of the State of Delaware (the “DGCL”), and the Company will be the surviving corporation and a wholly owned subsidiary of Parent (such merger, the “Merger”). As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL) will be cancelled and automatically converted into the right to receive the Offer Price in cash (without interest and less any applicable withholding taxes), which we refer to as the “Merger Consideration.” Shares described in clauses (i), (ii) and (iii) above will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv) will entitle their holders only to the rights granted to them under Section 262 of the DGCL. Following the Merger, the Company will cease to be a publicly traded company.
4. The Offer and withdrawal rights will expire at one minute following 11:59 p.m. (12:00 midnight), New York City time, on Thursday, May 19, 2022, unless the Offer is extended or earlier terminated in accordance with the Merger Agreement, in which event “Offer Expiration Time” will mean the latest time and date at which the Offer, as so extended by Purchaser, will expire.
5. The Offer is not subject to any financing condition. The Offer is subject to the conditions described in Section 15 of the Offer to Purchase. One such condition to the Offer is the “Inside Date Condition”, which requires that the Offer Expiration Time will not occur prior to Friday, July 1, 2022. If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) will have been satisfied or waived (to the extent waiver is permitted under applicable law), Purchaser will extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022.
6. The Board of Directors of the Company has unanimously recommended that you accept the Offer and tender your shares in the Offer.
7. Tendering stockholders who are record owners of their Shares and who tender directly to Computershare Trust Company, N.A., the depositary for the Offer, will not be obligated to pay brokerage fees, commissions or similar expenses or, except as otherwise provided in Instruction 6 of the Letter of Transmittal, stock transfer taxes with respect to the purchase of Shares by Purchaser pursuant to the Offer.
If you wish to have us tender any or all of your Shares, then please so instruct us by completing, executing, detaching and returning to us the Instruction Form on the detachable part hereof. An envelope to return your instructions to us is enclosed. If you authorize tender of your Shares, then all such Shares will be tendered unless otherwise specified on the Instruction Form.
Your prompt action is requested. Your Instruction Form should be forwarded to us in ample time to permit us to submit the tender on your behalf before the Expiration Date.
The Offer is being made to all holders of Shares. Purchaser is not aware of any jurisdiction in which the making of the Offer or the acceptance thereof would be prohibited by securities, “blue sky” or other valid laws of such jurisdiction. If Purchaser becomes aware of any U.S. state in which the making of the Offer or the acceptance of Shares pursuant thereto would not be in compliance with an administrative or judicial action taken pursuant to a U.S. state statute, Purchaser will make a good faith effort to comply with any such law. If, after such good faith effort, Purchaser cannot comply with any such law, the Offer will not be made to the holders of Shares in such state. In any jurisdictions where applicable laws require the Offer to be made by a licensed broker or dealer, the Offer shall be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers licensed under the laws of such jurisdiction to be designated by Purchaser.
 

 
INSTRUCTION FORM
With Respect to the Offer to Purchase for Cash
Any and All Issued and Outstanding Shares of Common Stock
of
CDK GLOBAL, INC.
a Delaware corporation
at
$54.87 Per Share
Pursuant to the Offer to Purchase dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly-owned subsidiary of
CENTRAL PARENT LLC
The undersigned acknowledge(s) receipt of your letter and the enclosed Offer to Purchase, dated April 22, 2022 (“Offer to Purchase”), and the related Letter of Transmittal (“Letter of Transmittal” and which, together with the Offer to Purchase, each as may be amended or supplemented from time to time, constitute, the “Offer”), in connection with the offer by Central Merger Sub Inc., a Delaware corporation (“Purchaser”) and a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company, to purchase, subject to certain conditions, including the satisfaction of the Minimum Tender Condition and the Inside Date Condition, each as defined in the Offer to Purchase, any and all of the issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (such shares, the “Shares”), at a price of $54.87 per Share, without interest, to the holder in cash, less any applicable withholding taxes, upon the terms and subject to the conditions of the Offer.
The undersigned hereby instruct(s) you to tender to Purchaser the number of Shares indicated below or, if no number is indicated, all Shares held by you for the account of the undersigned, upon the terms and subject to the conditions set forth in the Offer. The undersigned understands and acknowledges that all questions as to validity, form and eligibility of the surrender of any certificate representing Shares submitted on my behalf will be determined by Purchaser and such determination shall be final and binding.
ACCOUNT NUMBER:
NUMBER OF SHARES BEING TENDERED HEREBY:      SHARES*
The method of delivery of this document is at the election and risk of the tendering stockholder. If delivery is by mail, then registered mail with return receipt requested, properly insured, is recommended. In all cases, sufficient time should be allowed to ensure timely delivery by the Offer Expiration Time (as defined in the Offer to Purchase).
Dated:  
Signatures(s)
Please Print Name(s)
Address(es):   
 
(Include Zip Code)
Area Code and Telephone No.                   
 
Tax Identification or Social Security No.      
 
*
Unless otherwise indicated, it will be assumed that all Shares held by us for your account are to be tendered.
 

 
 Exhibit (a)(1)(F)
This announcement is neither an offer to purchase nor a solicitation of an offer to sell Shares (as defined below). The Offer (as defined below) is made solely pursuant to the Offer to Purchase, dated April 22, 2022, and the related Letter of Transmittal, and any amendments or supplements to such Offer to Purchase or Letter of Transmittal. Purchaser (as defined below) is not aware of any state where the making of the Offer is prohibited by any administrative or judicial action pursuant to any valid state statute. If Purchaser becomes aware of any valid state statute prohibiting the making of the Offer or the acceptance of the Shares pursuant thereto, Purchaser will make a good faith effort to comply with that state statute or seek to have such statute declared inapplicable to the Offer. If, after a good faith effort, Purchaser cannot do so, Purchaser will not make the Offer to the holders of Shares in that state. Except as set forth above, the Offer is being made to all holders of Shares. In any jurisdiction where the securities, “blue sky” or other laws require the Offer to be made by a licensed broker or dealer, the Offer will be deemed to be made on behalf of Purchaser by one or more registered brokers or dealers that are licensed under the laws of such jurisdiction.
Notice of Offer to Purchase
Any and All Outstanding Shares of Common Stock
of
CDK GLOBAL, INC.
at
$54.87 Per Share
Pursuant to the Offer to Purchase dated April 22, 2022
by
CENTRAL MERGER SUB INC.
a wholly owned subsidiary of
CENTRAL PARENT LLC
Central Merger Sub Inc., a Delaware corporation (“Purchaser”), is offering to purchase any and all issued and outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc., a Delaware corporation (the “Company” and such shares, the “Shares”), at a price of $54.87 per Share, without interest (the “Offer Price”), upon the terms and subject to the conditions described in the Offer to Purchase, dated April 22, 2022 (together with any amendments or supplements thereto, the “Offer to Purchase”), and in the related Letter of Transmittal (together with any amendments or supplements thereto, the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”). Purchaser is a wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company (“Parent”).
The Offer is being made in connection with the Agreement and Plan of Merger, dated as of April 7, 2022 (as it may be amended from time to time, the “Merger Agreement”), by and among the Company, Parent and Purchaser. The Merger Agreement provides, among other things, that, as soon as practicable following the consummation of the Offer and upon the satisfaction or waiver of certain conditions, Purchaser will be merged with and into the Company (the “Merger”) without a vote of the stockholders of the Company to adopt the Merger Agreement and consummate the Merger in accordance with Section 251(h) of the General Corporation Law of the State of Delaware (as amended, the “DGCL”), with the Company continuing as the surviving corporation (the “surviving corporation”) in the Merger and thereby becoming a wholly-owned subsidiary of Parent. As a result of the Merger, each Share issued and outstanding immediately prior to the effective time of the Merger (the “effective time”) (other than Shares (i) irrevocably accepted for purchase by Purchaser in the Offer, (ii) owned by the Company (including as treasury stock) or owned by any direct or indirect wholly-owned subsidiary of the Company, in each case immediately prior to the effective time, (iii) owned by Parent or Purchaser or any direct or indirect wholly-owned subsidiary of Parent or (iv) for which appraisal rights have been properly demanded in accordance with the DGCL) will be cancelled and automatically converted into the right to receive the Offer Price in cash (without interest and less any applicable withholding taxes), (the “Merger Consideration”). Shares described in clauses (i), (ii) and (iii) above will be cancelled at the effective time and will not be exchangeable for the Merger Consideration. Shares described in clause (iv) will entitle their holders only to the rights granted to them under Section 262 of the DGCL. Following the Merger, the Company will cease to be a publicly traded company. Under no circumstances will interest be paid on the purchase price for Shares, regardless of any extension of the Offer or any delay in making payment for Shares
 

 
Tendering stockholders who have Shares registered in their names and who tender directly to Computershare Trust Company, N.A. (the “Depositary”) will not be obligated to pay brokerage fees or commissions or, except as set forth in the Letter of Transmittal, transfer taxes on the purchase of Shares by Purchaser pursuant to the Offer. Stockholders who hold their Shares through a broker or bank should consult with such institution as to whether it charges any service fees or commissions.
THE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT THAT TIME THAT IS ONE MINUTE FOLLOWING 11:59 P.M. (12:00 MIDNIGHT), NEW YORK CITY TIME, ON THURSDAY, MAY 19, 2022, UNLESS THE OFFER IS EXTENDED OR EARLIER TERMINATED (SUCH DATE AND TIME, AS IT MAY BE EXTENDED, THE “OFFER EXPIRATION TIME”).
The Offer is not subject to a financing condition. The Offer is conditioned upon, among other things, (a) the Merger Agreement not having been validly terminated in accordance with its terms (the “Termination Condition”) and (b) the satisfaction of:
(i)   the Minimum Tender Condition (as described below);
(ii)   the Inside Date Condition (as described below); and
(iii)   the Antitrust Approvals Condition (as described below).
The “Minimum Tender Condition” requires that the number of Shares validly tendered (and not properly withdrawn) prior to the Offer Expiration Time, but excluding shares tendered pursuant to guaranteed delivery procedures that have not yet been “received,” as such terms are defined by Section 251(h) of the DGCL, together with any Shares owned by Parent, Purchaser or any of their affiliates, represents a majority of the outstanding Shares as of the consummation of the Offer at the Offer Expiration Time. The “Inside Date Condition” requires that, unless such condition is waived by Parent and Purchaser, the Offer Expiration Time shall not occur prior to July 1, 2022. If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived (to the extent waiver is permitted under applicable law), Purchaser shall extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022. The “Antitrust Approvals Condition” requires that any waiting period (including all extensions thereof) applicable to the consummation of the Offer and the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, will have expired or been terminated and any applicable approvals or consents required under the Competition Act (Canada), R.S.C., 1985, c. C-34 will have been obtained. The Offer is also subject to other conditions described in the Offer to Purchase.
The Company Board has unanimously declared it advisable to enter into the Merger Agreement and approved the execution, delivery and performance of the Merger Agreement in accordance with its terms and the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement in accordance with the DGCL and resolved to recommend that the stockholders of the Company accept the Offer and tender their Shares in the Offer.
The Company will file a Solicitation/Recommendation Statement on Schedule 14D-9 (the “Schedule 14D-9”) with the United States Securities and Exchange Commission (the “SEC”) and disseminate the Schedule 14D-9 to the Company’s stockholders with the Offer to Purchase. The Schedule 14D-9 will include a description of the Company board of directors’ reasons for approving the Merger Agreement and the transactions contemplated thereby and therefore stockholders are encouraged to review the Schedule 14D-9 carefully and in its entirety.
The Merger Agreement contains provisions to govern the circumstances in which Purchaser may extend the Offer beyond its initial Offer Expiration Time, but in no event will Purchaser be required or permitted to extend the Offer beyond the Termination Date. Purchaser has agreed in the Merger Agreement that Purchaser will extend the Offer (i) for any minimum period required by any applicable law or any rule, regulation, interpretation or position of the SEC or its staff or of NASDAQ or its staff, applicable to the Offer, the Schedule 14D-9 or the Offer documents; (ii) if, as of the then-scheduled Offer Expiration Time, the Company has delivered written notice to Parent in accordance with the Merger Agreement that the Company intends to effect an Adverse Recommendation Change (as defined in the Offer to Purchase) and/or terminate the Merger Agreement due to its receipt of a Superior Proposal (as defined in the Offer to
 

 
Purchase) or the occurrence of an intervening event (as defined in the Offer to Purchase); (iii) if, at the then-scheduled Offer Expiration Time, the Company brings or will have brought any legal action to enforce specifically the performance of the terms and provisions of the Merger Agreement by Parent or Purchaser; and (iv) if at the-then scheduled Offer Expiration Time, any of the Offer conditions (other than those conditions that by their terms are to be satisfied at the Offer closing) has not been satisfied or waived by Parent and Purchaser (to the extent waiver is permitted under the Merger Agreement or applicable law); provided, that if at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Minimum Tender Condition and the other Offer conditions that by their terms are to be satisfied at the Offer closing) shall have been satisfied or waived, Purchaser may, and Purchaser shall upon receipt of the Company’s written request, extend the Offer for up to four occasions, in the aggregate, in consecutive periods of five business days each (or for such other duration as the parties may agree). If at the otherwise scheduled Offer Expiration Time, all of the Offer conditions (other than the Inside Date Condition and the other Offer conditions that by their terms are to be satisfied at the closing of the Offer) shall have been satisfied or waived, Purchaser shall extend the Offer until 5:00 p.m., New York City time, on the first business day after July 1, 2022.
The purpose of the Offer and the Merger is for Purchaser and Parent to acquire the entire equity interest in the Company. Pursuant to the Merger Agreement, as soon as practicable following the consummation of the Offer, in each case only in a manner not inconsistent with the Merger Agreement, subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Purchaser will be merged with and into the Company, with the Company continuing as the surviving corporation in the Merger and thereby becoming a wholly-owned subsidiary of Parent. No appraisal rights are available to holders of Shares in connection with the Offer. However, if Purchaser accepts Shares in the Offer and the Merger is completed, stockholders may be entitled to appraisal rights in connection with the Merger if they do not tender Shares in the Offer and comply with the applicable procedures described under Section 262 of the DGCL. Such stockholders will not be entitled to receive the Offer Price, but instead will be entitled to only those rights provided under Section 262 of the DGCL. Stockholders must properly perfect their right to seek appraisal under the DGCL in connection with the Merger in order to exercise appraisal rights as further detailed in the Offer to Purchase.
Pursuant to the Merger Agreement, Parent and Purchaser expressly reserve the right, at any time to waive, in whole or in part, any Offer condition (other than the Minimum Tender Condition and the Termination Condition), to increase the Offer Price or modify the terms of the Offer, in each case only in a manner not inconsistent with the Merger Agreement, except that Parent and Purchaser are not permitted (without the prior written consent of the Company) to (i) reduce the number of Shares subject to the Offer, (ii) reduce the Offer Price or change the form of consideration payable pursuant to the Offer, (iii) change, amend, modify, or waive the Minimum Tender Condition, (iv) add to the Offer conditions or impose any other conditions or requirements on the Offer, (v) change, amend, modify or supplement any existing Offer condition in a manner that is adverse in any respect to the holders of Shares or that would, individually or in the aggregate, reasonably be expected to prevent or delay the consummation of the Offer or the Merger (except to effect an extension to the Offer to the extent expressly permitted by the Merger Agreement or to validly terminate the Merger Agreement in accordance with the terms thereof) or impair the ability of Parent or Purchaser to consummate the Offer, (vi) except as otherwise required or expressly permitted by the Merger Agreement, extend or otherwise change, amend or modify the Offer Expiration Time, (vii) provide for any “subsequent offering period” within the meaning of Rule 14d-11 under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”), (viii) terminate the Offer or (ix) otherwise change, amend, modify or supplement the Offer in any manner adverse to the holders of Shares or in any manner that delays, interferes with, hinders or impairs the consummation of the Offer. The Offer may not be terminated or withdrawn prior to its scheduled Offer Expiration Time (as extended and re-extended in accordance with the Merger Agreement), unless the Merger Agreement is terminated in accordance with the terms thereof.
Any extension, delay, termination, waiver or amendment of the Offer will be followed as promptly as practicable by public announcement thereof, such announcement in the case of an extension to be made no later than 9:00 a.m., New York City time, on the next business day after the previously scheduled Offer Expiration Time.
 

 
For purposes of the Offer, Purchaser will be deemed to have accepted for payment, and thereby purchased, Shares validly tendered and not validly withdrawn as, if and when Purchaser gives oral or written notice to the Depositary of its acceptance for payment of such Shares pursuant to the Offer. Upon the terms and subject to the conditions of the Offer, payment for Shares accepted for payment pursuant to the Offer will be made by deposit of the purchase price therefor with the Depositary, which will act as agent for the tendering stockholders for purposes of receiving payments from Purchaser and transmitting such payments to the tendering stockholders. Under no circumstances will interest be paid on the Offer Price for Shares, regardless of any extension of the Offer or any delay in payment for Shares.
Notwithstanding any provision of the Merger Agreement to the contrary, Purchaser will pay for Shares tendered (and not properly withdrawn) pursuant to the Offer only after timely receipt by the Depositary of (i) certificates for such Shares (“Share Certificates”) or timely confirmation of the book-entry transfer of such Shares (“Book-Entry Confirmations”) into the Depository’s account at the Depository Trust Company (“DTC”) to the procedures set forth in the Offer to Purchase, (ii) a Letter of Transmittal, properly completed and duly executed, with any required signature guarantees (or, in the case of a book-entry transfer, an Agent’s Message (as defined in the Offer to Purchase) in lieu of the Letter of Transmittal), and (iii) any other documents required by the Letter of Transmittal or any other customary documents required by the Depositary. Accordingly, tendering stockholders may be paid at different times depending upon when certificates for Shares or Book-Entry Confirmations with respect to Shares are actually received by the Depositary.
Shares tendered pursuant to the Offer may be withdrawn at any time prior to the Offer Expiration Time. Thereafter, tenders of Shares are irrevocable, except that, pursuant to Section 14(d)(5) of the Exchange Act, they may also be withdrawn after Tuesday, June 21, 2022, which is the 60th day after the date of the commencement of the Offer, unless such Shares have already been accepted for payment by Purchaser pursuant to the Offer and not validly withdrawn.
For a withdrawal of Shares to be effective, a written (or, with respect to Eligible Institutions (as defined in the Offer to Purchase), a facsimile transmission) notice of withdrawal must be timely received by the Depositary at the address set forth on the back cover page of the Offer to Purchase. Any such notice of withdrawal must specify the name of the person who tendered the Shares to be withdrawn, the number of Shares to be withdrawn and the name of the registered holder of such Shares, if different from that of the person who tendered such Shares. If certificates evidencing Shares to be withdrawn have been delivered or otherwise identified to the Depositary, then, prior to the physical release of such certificates, the serial numbers shown on such certificates must be submitted to the Depositary and the signature(s) on the notice of withdrawal must be guaranteed by an Eligible Institution, unless such Shares have been tendered for the account of an Eligible Institution. If Shares have been tendered pursuant to the procedures for book-entry transfer as set forth in the Offer to Purchase, any notice of withdrawal must also specify the name and number of the account at DTC to be credited with the withdrawn Shares.
All questions as to the validity, form, eligibility (including time of receipt) and acceptance of any tender of Shares will be determined by Purchaser in its sole and absolute discretion, which determination will be final and binding, subject to the rights of the tendering holders of Shares to challenge Purchaser’s determination in a court of competent jurisdiction. Purchaser reserves the absolute right to reject any and all tenders determined by Purchaser not to be in proper form or the acceptance for payment of or payment for which may, in Purchaser’s opinion, be unlawful. Purchaser also reserves the absolute right to waive any defect or irregularity in the tender of any Shares of any particular stockholder whether or not similar defects or irregularities are waived in the case of any other stockholder. No tender of Shares will be deemed to have been validly made until all defects and irregularities relating thereto have been cured or waived. None of Parent, Purchaser or any of their respective affiliates or assigns, the Depositary, the Information Agent (listed below), or any other person will be under any duty to give notification of any defects or irregularities in tenders or incur any liability for failure to give any such notification. Purchaser’s interpretation of the terms and conditions of the Offer (including the Letter of Transmittal and the instructions thereto and any other documents related to the Offer) will be final and binding, subject to the rights of the tendering holders of Shares to challenge Purchaser’s determination in a court of competent jurisdiction.
The information required to be disclosed by paragraph (d)(1) of Rule 14d-6 under the Exchange Act, as amended, is contained in the Offer to Purchase and is incorporated herein by reference.
 

 
The Company has provided Purchaser with the Company’s stockholder list and security position listings for the purpose of disseminating to the holders of Shares information regarding the Offer. The Offer to Purchase and related Letter of Transmittal will be mailed to record holders of Shares whose names appear on the Company’s stockholder list and will be furnished to brokers, dealers, commercial banks, trust companies and similar persons whose names, or the names of whose nominees, appear on the stockholder list or, if applicable, who are listed as participants in a clearing agency’s security position listing for subsequent transmittal to beneficial owners of Shares.
In general, the receipt of cash by you in exchange for your Shares pursuant to the Offer or the Merger will be a taxable transaction for United States federal income tax purposes. You are urged to consult your tax advisor about the particular tax consequences to you of tendering your Shares in the Offer or exchanging your Shares in the Merger in light of your particular circumstances (including the application and effect of any federal, state, local or non-U.S. laws). For a more complete description of the U.S. federal income tax consequences of the Offer and the Merger, see the Offer to Purchase.
The Offer to Purchase, the related Letter of Transmittal and the Company’s Solicitation/Recommendation Statement on Schedule 14D-9 (which contains the recommendation of the Company board of directors and the reasons therefor) contain important information and should be read carefully and in their entirety before any decision is made with respect to the Offer.
Questions and requests for assistance may be directed to the Information Agent at the address and telephone numbers set forth below. Requests for copies of the Offer to Purchase and the related Letter of Transmittal, the Notice of Guaranteed Delivery and other tender offer materials may be directed to the Information Agent or to brokers, dealers, commercial banks or trust companies. Such copies will be furnished promptly at Purchaser’s expense. Except as set forth in the Offer to Purchase, neither Purchaser nor Parent will pay any fees or commissions to any broker or dealer or any other person for soliciting tenders of Shares pursuant to the Offer.
The Information Agent for the Offer is:
[MISSING IMAGE: lg_mackenziepartners-bw.jpg]
1407 Broadway
New York, New York 10018
(212) 929-5500
or
Call Toll-Free (800) 322-2885
Email: tenderoffer@mackenziepartners.com
April 22, 2022
 

 

Exhibit (b)(1)

Execution Version 

 

CREDIT SUISSE AG

CREDIT SUISSE LOAN FUNDING LLC

Eleven Madison Avenue

New York, NY 10010

 

GOLDMAN SACHS BANK USA

200 West Street

New York, NY 10282

 

BANK OF MONTREAL

BMO CAPITAL MARKETS CORP.

151 West 42nd Street

New York, NY 10036

 

BARCLAYS

745 Seventh Avenue

New York, New York 10019

DEUTSCHE BANK AG NEW YORK BRANCH

DEUTSCHE BANK SECURITIES INC.

1 Columbus Circle

New York, NY 10019

 

ROYAL BANK OF CANADA

RBC CAPITAL MARKETS, LLC

200 Vesey Street

New York, NY 10281

THE TORONTO-DOMINION BANK, NEW YORK BRANCH
TD SECURITIES (USA) LLC

1 Vanderbilt Avenue

New York, NY 10017

 

WELLS FARGO BANK, NATIONAL ASSOCIATION
WELLS FARGO SECURITIES, LLC

550 S Tryon Street

Charlotte, NC 28202

 

BANK OF AMERICA, N.A.

BOFA SECURITIES, INC.

One Bryant Park

New York, NY 10036

 

BROAD STREET CREDIT HOLDINGS LLC

200 West Street

New York, NY 10282

WSMP VIII INVESTMENTS HOLDINGS D, L.P.

200 West Street

New York, NY 10282

 

WSMP VIII INVESTMENTS J, LP

200 West Street

New York, NY 10282

WSMP VIII INVESTMENTS L, SLP

200 West Street

New York, NY 10282

WSMP VIII INVESTMENTS Q, LLC

200 West Street

New York, NY 10282

 

 

CONFIDENTIAL

 

April 12, 2022

 

 

Central Parent LLC

c/o Brookfield Capital Partners

250 Vesey Street

New York, New York 10281

Attention: Ms. Lindsay Ingram

 

PROJECT CENTRAL
Amended & Restated Commitment Letter

 

Ladies and Gentlemen:

 

This amended and restated commitment letter amends, restates and supersedes in its entirety that certain commitment letter (the “Original Commitment Letter”) dated as of April 7, 2022, among you, Credit Suisse AG (acting through such of its affiliates or branches as it deems appropriate, “CSAG”), Credit Suisse Loan Funding LLC (“CSLF” and together with CSAG, “CS”), Goldman Sachs Bank USA (acting alone or through or with affiliates selected by it, “GS”), Bank of Montreal (“BOM”), BMO Capital Markets Corp. (“BMOCM”), Barclays Bank PLC (“Barclays”), Deutsche Bank AG New York Branch (“DBNY”), Deutsche Bank Securities Inc. (“DBSI”), Royal Bank of Canada (“Royal Bank”), RBC Capital Markets, LLC1 (“RBCCM”), The Toronto-Dominion Bank, New York Branch (“TDNY”), TD Securities (USA) LLC (“TDS” and together with TDNY, “TD”), Wells Fargo Bank, National Association (“WFB”), Wells Fargo Securities, LLC (“WFS”), Bank of America, N.A. (“Bank of America”), BofA Securities, Inc. (or any of its designated affiliates, “BofA Securities”) (together, the “Original Commitment Parties”). From and after the Acceptance Date, the Original Commitment Letter shall be of no further force or effect (other than the provisions of the Original Commitment Letter that expressly survive the termination of the Original Commitment Letter). You have advised the Original Commitment Parties that you have elected to arrange for a junior lien Replacement Commitment Facility (as defined in the Original Commitment Letter) in the form of the Second Lien Term Facility described herein and in connection therewith, as of the date hereof, and concurrent with the effectiveness of this Commitment Letter, (i) the commitments of the Original Commitment Parties in respect of the Bridge Facility are hereby terminated in full without any further action by any party, (ii) we and you shall have no further obligations hereunder or under the Fee and Closing Payment Letters (as defined below) with respect to the Bridge Facility (other than as specified in the First Lien Fee Letter) and (iii) the Original Commitment Parties hereby consent to the provision of the Second Lien Term Facility on the terms set forth herein and agree that such Second Lien Term Facility is a “Replacement Commitment Facility”.

 

 

 

1 RBC Capital Markets is a brand name for the capital markets business of Royal Bank of Canada and its affiliates.

 

 

 

 

You have advised the Original Commitment Parties, Broad Street Credit Holdings LLC (“Broad Street”), WSMP VIII Investments Holdings D, L.P. (“WSMP Holdings”), WSMP VIII Investments J, LP (“WSMP LP”), WSMP VIII Investments L, SLP (“WSMP SLP”) and WSMP VIII Investments Q, LLC (“WSMP LLC” and, together with Broad Street, WSMP Holdings, WSMP LP and WSMP SLP, collectively, the “Initial GS Principal Investors” and together with any Other GS Principal Investors (as defined below) to which any commitments in respect of the Second Lien Term Facility are reallocated, sold, assigned or otherwise transferred pursuant to, and in accordance with, this Commitment Letter, the “GS Principal Investors”) (together with the Original Commitment Parties, the “Commitment Parties”, “us” or “we”) that you intend to directly or indirectly acquire the Target and consummate the other transactions described in the Transaction Summary attached hereto (the “Transaction Summary”). Capitalized terms used but not defined herein have the meanings assigned to them in the Exhibits and Annexes (including the Definitions Annex) attached hereto (such Exhibits and Annexes, together with this letter, collectively, the “Commitment Letter”).

 

1.Commitments

 

In connection with the Transactions, each of CSAG, GS, BOM, Barclays, DBNY, Royal Bank, TDNY, WFB, Bank of America, WSMP LP, WSMP LLC, WSMP SLP, WSMP Holdings and Broad Street is pleased to advise you of its commitment to provide the percentage of the principal amount of (i) the First Lien Facilities set forth opposite its name on the Commitments Schedule attached hereto, on the terms set forth in this Commitment Letter and the First Lien Facilities Term Sheet attached hereto (the “First Lien Facilities Term Sheet”) (each in such capacity, an “Initial First Lien Lender”) and (ii) the Second Lien Term Facility set forth opposite its name on the Commitments Schedule attached hereto, on the terms set forth in this Commitment Letter and the Second Lien Term Facility Term Sheet attached hereto (the “Second Lien Term Sheet”) (each in such capacity, an “Initial Second Lien Lender”) (each such Commitment Party in the foregoing capacities, an “Initial Lender”; and each such term sheet, a “Term Sheet”), in each case subject solely to the applicable conditions set forth in the Conditions Exhibit attached hereto (the “Conditions Exhibit”). The commitments herein of each Initial Lender are several and not joint.

 

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2.Titles and Roles

 

It is agreed that (i) each of CSLF, GS, BMOCM, Barclays, DBSI, RBCCM, TDS, WFS and BofA Securities will act as a joint lead arranger and joint bookrunner for the First Lien Facilities (each in such capacity, a “First Lien Lead Arranger”) and will perform the duties and have the responsibilities customarily associated with such roles, (ii) CSLF will have “left” placement in any and all marketing materials or other documentation used in connection with the First Lien Facilities and will perform the duties and have the responsibilities customarily associated with such roles and name placement, (iii) CS will act as the sole administrative agent (and sole collateral agent) for the First Lien Facilities and (iv) Goldman Sachs Specialty Lending Group, L.P. will act as the sole administrative agent (and sole collateral agent) for the Second Lien Term Facility.

 

You may, on or prior to the 20th business day after the date of the Original Commitment Letter, appoint additional lead arrangers, bookrunners, managers, agents or co-agents in respect of the First Lien Facilities or confer other titles in respect of the First Lien Facilities (each such person, a “First Lien Additional Arranger”) and you may allocate up to 15% in the aggregate of the commitments and corresponding compensatory economics with respect to the First Lien Facilities (which allocation shall be pro rata across each of the First Lien Facilities) to such First Lien Additional Arrangers (it being agreed that (x) each such First Lien Additional Arranger (or its affiliate) shall assume a proportion of the commitments with respect to each of the First Lien Facilities that is equal to the proportion of the economics allocated to such First Lien Additional Arranger (or its affiliate) in respect of such First Lien Facility, (y) the economics (expressed as a percentage of the relevant person’s commitments) granted to any First Lien Additional Arranger (or its affiliates) in respect of each of the First Lien Facilities shall not exceed the economics (expressed as a percentage of the relevant person’s commitments) granted to any of the relevant Commitment Parties party hereto as of the date hereof in respect of the First Lien Facilities and (z) at your election (i) up to 15% of the commitment amounts of, and the economics allocated to, the Commitment Parties party hereto immediately prior to such appointment in respect of the First Lien Facilities will be proportionately reduced by the commitment amounts of, and economics allocated to, each such First Lien Additional Arranger (or its affiliate) and (ii) up to 5% of the commitment amounts of, and the economics allocated to, the Commitment Parties party hereto immediately prior to such appointment in respect of the First Lien Facilities will be reduced by the commitment amounts of, and economics allocated to, each such First Lien Additional Arranger (or its affiliate) in such amount as you may elect in your sole discretion, in each case upon the execution and delivery by such First Lien Additional Arranger (or its affiliate) of customary joinder documentation (which may be in the form of an amendment and restatement of this Commitment Letter) (the “Joinder”)) and, thereafter, each such First Lien Additional Arranger (and its affiliate) shall constitute a “Commitment Party” and “First Lien Lead Arranger” and an “Initial First Lien Lender” and “Initial Lender” under this Commitment Letter and under the First Lien Fee Letter referred to below. The Initial Second Lien Lenders agree to accept any such Joinder or participate in any such amendment or amendment and restatement; it being understood and agreed that nothing contained herein shall require the Initial Second Lien Lenders to consent to any substantive amendment or modification of any term or provision contained herein or in the Second Lien Closing Payment Letter.

 

Except as provided above no other agents, co-agents, arrangers, managers or bookrunners will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by the Commitment Letter and the Fee and Closing Payment Letters) will be paid to any Lender (as defined below) in order to obtain its commitment to participate in the Facilities unless you and we shall so agree. Any Excluded Party (as defined below) of a First Lien Additional Arranger shall be treated in the same manner as an Excluded Party of a First Lien Lead Arranger.

 

-3-

 

 

3.Syndication

 

The First Lien Lead Arrangers reserve the right to syndicate the First Lien Facilities to a group of banks, financial institutions and other institutional lenders (together with the Initial First Lien Lenders, the “First Lien Lenders”; the First Lien Lenders together with the Initial Second Lien Lenders are collectively referred to herein as the “Lenders”) identified by the First Lien Lead Arrangers in consultation with you and reasonably acceptable to you (such acceptance not to be unreasonably withheld, conditioned or delayed) (including any relationship lenders designated by you in consultation with the First Lien Lead Arrangers), in each case excluding (i) any person identified by you or the Sponsor to the First Lien Lead Arrangers in writing (including by email) prior to the date hereof (or, if after the date hereof and prior to launch of syndication, that is reasonably acceptable to the First Lien Lead Arrangers, or, if on or after the Closing Date, to the applicable Administrative Agent), (ii) any person that is a competitor of Holdings, you, the Target or your or their respective subsidiaries, in each case that is separately identified in writing by you or the Sponsor to the First Lien Lead Arrangers from time to time prior to the Closing Date or to the applicable Administrative Agent on or after the Closing Date, (iii) any affiliate of any person identified in clause (i) or (ii) that is (a) identified in writing by you or the Sponsor to the First Lien Lead Arrangers and the GS Principal Investors from time to time prior to the Closing Date or to the applicable Administrative Agent on or after the Closing Date or (b) reasonably identifiable as an affiliate on the basis of its name (other than bona fide debt funds that purchase commercial loans in the ordinary course of business, other than such debt funds excluded pursuant to clause (i) or (ii) of this paragraph) or (iv) any person that is an Excluded Party (any such person in clause (i), (ii), (iii) or (iv) above, a “Disqualified Institution”); provided that any such additional designation shall not apply retroactively to any prior assignment, participation or sharing of information to any First Lien Lender that was otherwise permitted hereunder at the time of such assignment, participation or sharing of information. Notwithstanding any other provision of this Commitment Letter to the contrary (other than, in respect of the following clauses (i) and (ii), upon execution and delivery of a Joinder, in connection with any assignment to a First Lien Additional Arranger in respect of the amount allocated to such First Lien Additional Arranger pursuant to such Joinder), (i) no Initial First Lien Lender shall be relieved or novated from its obligations hereunder (including its obligation to fund the First Lien Facilities on the Closing Date) in connection with any syndication, assignment or participation of the First Lien Facilities, including its commitments in respect thereof, until after the initial funding of the First Lien Facilities on the Closing Date, (ii) no assignment or novation shall become effective with respect to all or any portion of any Initial First Lien Lender’s commitments in respect of the Facilities until after the initial funding of the Facilities on the Closing Date and (iii) unless you and the First Lien Lead Arrangers agree in writing, the Initial First Lien Lenders shall retain exclusive control over all rights and obligations with respect to their commitments in respect of the Facilities, including all rights with respect to consents, modifications, supplements and amendments, until the Closing Date has occurred.

 

-4-

 

 

The First Lien Lead Arrangers intend to commence syndication efforts promptly after the execution hereof, and until the earlier to occur of (i) the date that a Successful Syndication (as defined in the First Lien Fee Letter) occurs and (ii) the date that is 30 days after the Closing Date (the period until such earlier date, the “Syndication Period”), you agree to use commercially reasonable efforts to assist, to use commercially reasonable efforts to cause the Sponsor to assist and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, to use commercially reasonable efforts to cause the Target to assist the First Lien Lead Arrangers in completing a syndication reasonably satisfactory to us and you. Such assistance shall be limited to (i) using commercially reasonable efforts to ensure that the syndication efforts benefit from the existing banking relationships of you and the Sponsor and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, the Target, (ii) facilitating direct contact between appropriate members of senior management and certain legal and non-legal advisors and representatives of you and the Sponsor, on the one hand, and the proposed First Lien Lenders, on the other hand (and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, using your commercially reasonable efforts to cause such contact between appropriate members of senior management and certain advisors and representatives of the Target and the proposed First Lien Lenders), in each case upon reasonable advance notice and at times and locations to be agreed, (iii) your assistance (and using your commercially reasonable efforts to cause the Sponsor and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, the Target to assist) in the preparation of customary confidential information memoranda (collectively, the “Confidential Information Memorandum”) and other customary marketing materials reasonably requested by the First Lien Lead Arrangers to be used in connection with the syndication of the First Lien Facilities (such materials, together with the Confidential Information Memorandum and the Term Sheets, collectively, the “Information Materials”), (iv) the hosting, with the Commitment Parties, of no more than two meetings (or, if you and we so agree, no more than two conference calls in lieu of such meetings) of prospective First Lien Lenders at such time and location to be mutually agreed (and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, using your commercially reasonable efforts to cause appropriate members of senior management and certain advisors and representatives of the Target to be available for each such meeting (or each such conference call, as the case may be)); provided that, in each case, any such meeting shall be conducted virtually by videoconference or other media, (v) using commercially reasonable efforts to obtain, at the reasonable prior written request of the First Lien Lead Arrangers, prior to the launch of general syndication of the First Lien Facilities (which use of commercially reasonable efforts shall not require you to change the proposed terms of any Facility) (x) public corporate family ratings (but not a specific rating) for the Lead Borrower and (y) public ratings (but not a specific rating) for the First Lien Term Facility from each of Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (“S&P”) and (vi) ensuring and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, using your commercially reasonable efforts to cause the Target to ensure, that, without the prior written consent of the First Lien Lead Arrangers (such consent not to be unreasonably withheld, conditioned or delayed), until the expiration of the Syndication Period, there is no competing offering, placement or arrangement of any debt securities or syndicated credit facilities (other than the Facilities, any debt disclosed to us on or prior to the date of the Original Commitment Letter (including any such debt referenced in the Target’s financial statements delivered to us on or prior to the date of the Original Commitment Letter), drawings under any revolving credit facility, any debt permitted to remain outstanding by the Transaction Summary, any debt that the First Lien Lead Arrangers agree may remain outstanding, any pari passu first lien notes that you and the First Lien Lead Arrangers may mutually agree to issue in lieu of all or a portion of the First Lien Term Facility, any debt permitted under the Acquisition Agreement and any refinancing, replacement, extension or renewal of existing debt of the Target or any of its subsidiaries or any amendment to any such debt (in each case of any such refinancing, replacement, extension, renewal or amendment, to the extent not prohibited by the terms of the Acquisition Agreement (as in effect on the date of the Original Commitment Letter)), by or on behalf of Holdings, the Lead Borrower, the Target or any of their respective subsidiaries that would reasonably be expected to materially and adversely impair the primary syndication of the First Lien Facilities (it being agreed that (i) any debt incurred in the ordinary course of business, including, without limitation, deferred purchase obligations, intercompany debt, capital leases, purchase money financings and equipment financings and (ii) any change of control offer, tender offer, consent solicitation or other liability management transaction for the redemption, repurchase and/or tender of the Existing Notes are not restricted by the foregoing).

 

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With respect to the First Lien Term Facility, in the event that you and the First Lien Lead Arrangers agree, in your sole discretion, to actually or potentially replace a portion of the First Lien Term Facility with the proceeds of an offering of senior secured debt securities (the “Notes”) (which you and the First Lien Lead Arrangers acknowledge is contemplated (though not yet agreed) as of the date hereof), you shall use commercially reasonable efforts to provide one or more investment banks reasonably satisfactory to the First Lien Lead Arrangers (the “Investment Banks) with a customary preliminary prospectus, preliminary offering memorandum or preliminary private placement memorandum (an “Offering Document”) for the Notes suitable for use in a customary “high yield road show” relating to the Notes and in customary form for offering memoranda used in Rule 144A-for-life offerings of debt securities by portfolio company affiliates of top tier sponsors in North America, which Offering Document shall include financial statements, pro forma financial statements and other financial data, in each case, of the type and form customarily included in a preliminary Rule 144A-for-life offering memorandum (subject to exceptions customary for a Rule 144A-for-life offering involving high yield debt securities, including that such Offering Document shall not be required to include financial statements or information required by Rules 3-03(e), 3-05, 3-09, 3-10, 3-16, 13-01 or 13-02 of Regulation S-X, Compensation Discussion and Analysis or other information required by Item 10, Item 402 or Item 601 of Regulation S-K, XBRL exhibits and the executive compensation and related person disclosure rules related to SEC Release Nos. 33-8732A, 34-54302A and IC-27444A, and segment reporting and disclosure, including, without limitation, any required by Regulation S-K Item 101(b) and FASB Accounting Standards Codification Topic 280 or other information customarily excluded from Rule 144A for life offering memorandum) reasonably necessary for the Investment Banks to receive customary (for high-yield debt securities issued in a private placement pursuant to Rule 144A) “comfort” (including customary “negative assurance” comfort) in connection with the offering of the Notes (it being understood that such “comfort” letters may contain disclosures as to the omission of the items specified above and other customary items); provided that this covenant shall be deemed to be complied with if such Offering Document excludes the “Description of Notes” and other sections that would customarily be provided by the Investment Banks or their counsel, but is otherwise complete. Notwithstanding anything in this paragraph to the contrary, the only financial statements that shall be required to be included in the Offering Document shall be (I) those actually delivered pursuant to paragraph 6 of the Conditions Exhibit and (II) to the extent customary for transactions of this type, the pro forma financial statements actually delivered pursuant to paragraph 7 of the Conditions Exhibit. For the avoidance of doubt, contemplation or pursuit of any such Notes or other debt securities offering (and any references thereto herein) shall not in any manner derogate the commitments hereunder with respect to the First Lien Term Facility.

 

Notwithstanding anything to the contrary contained in this Commitment Letter or any Fee and Closing Payment Letter or any other letter agreement or undertaking concerning the financing of the Transactions, neither the obtaining of the ratings referenced above, nor the commencement or completion of syndication of the Facilities, nor the completion of a Confidential Information Memorandum, nor the preparation or delivery of an Offering Document or other marketing materials nor compliance with any other provision set forth in this Commitment Letter (other than the conditions set forth in the Conditions Exhibit), shall constitute a condition to the commitments hereunder or to the funding of the Facilities on the Closing Date. For the avoidance of doubt, you will not be required to provide any information to the extent the provision thereof would violate any applicable law, rule or regulation, or any confidentiality obligation binding upon, or waive any privilege that may be asserted by, Holdings, the Lead Borrower, the Target and its subsidiaries, the Sponsor or any of their respective subsidiaries or affiliates; provided that, in the event you do not provide information in reliance on this sentence, you shall provide notice to us that such information is being withheld (but solely to the extent both feasible and permitted under applicable law, rule, regulation or confidentiality obligation, or without waiving such privilege) and you shall use your commercially reasonable efforts to describe, to the extent both feasible and permitted under applicable law, rule, regulation or confidentiality obligation, or without waiving such privilege, as applicable, the applicable information; and provided further that the representation and warranty made by you with respect to information in Section 4 shall not be affected in any way by your decision not to provide such information. Notwithstanding anything herein to the contrary, the only financial statements that shall be required to be provided in connection with the syndication of the Facilities shall be those required to be delivered pursuant to paragraphs 6 and 7 of the Conditions Exhibit. The First Lien Lead Arrangers will manage, in consultation with you, all aspects of the syndication of the Facilities, including decisions as to the selection of institutions (subject to your consent, not to be unreasonably withheld or delayed, and subject to the exclusion of Disqualified Institutions) to be approached and when they will be approached, when the First Lien Lenders’ commitments will be accepted, which First Lien Lenders will participate (subject to your consent, not to be unreasonably withheld or delayed, and subject to the exclusion of Disqualified Institutions), the allocation of the commitments among the First Lien Lenders (subject to your rights of appointment in Section 2 above) and the amount and distribution of fees among the First Lien Lenders.

 

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You acknowledge that (i) the First Lien Lead Arrangers, on your behalf, will make available the Information Materials to the proposed syndicate of First Lien Lenders by posting the Information Materials on SyndTrak or IntraLinks or another similar electronic system and (ii) certain prospective First Lien Lenders (such First Lien Lenders, “Public Lenders”; all other First Lien Lenders, “Private Lenders”) may have personnel that do not wish to receive MNPI (as defined below) with respect to Holdings, the Target and their respective subsidiaries (collectively, the “Relevant Entities”) or the securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such entities’ securities. As used herein, “MNPI” means information about any Relevant Entity and its securities that constitutes material non-public information within the meaning of the United States federal and state securities laws, or, if such Relevant Entity is not a public reporting company, that would have constituted material non-public information within the meaning of the United States federal and state securities laws if such Relevant Entity was a public reporting company (as determined by you in good faith). If the First Lien Lead Arrangers reasonably request, you will use your commercially reasonable efforts to assist us in preparing (and, to the extent practical and appropriate and not in contravention of the Acquisition Agreement, use commercially reasonable efforts to cause the Target to assist us in preparing) a customary additional version of the Information Materials not containing MNPI (the “Public Information Materials”) to be distributed to prospective Public Lenders.

 

Before distribution of any Information Materials (i) to prospective Private Lenders, you (or the Target) shall provide the First Lien Lead Arrangers with a customary letter authorizing the dissemination of the Information Materials and (ii) to prospective Public Lenders, you (or the Target) shall provide the First Lien Lead Arrangers with a customary letter consistent with the terms of this Commitment Letter authorizing the dissemination of the Public Information Materials and customarily represent as to the absence of MNPI therein, and in each case exculpating the First Lien Lead Arrangers and their affiliates, the Target and its affiliates and you and your affiliates from any liability related to the use or the contents of the Information Materials by the recipients thereof. Each such letter shall contain a customary “10b-5” representation, which shall be consistent with the Information representation set forth in Section 4 below.

 

You agree that, subject to the confidentiality and other provisions of this Commitment Letter, the First Lien Lead Arrangers, on your behalf, may distribute the following documents to all prospective First Lien Lenders, including prospective Public Lenders, unless you advise the First Lien Lead Arrangers in writing (including by email) within a reasonable time prior to their intended distributions that such material should only be distributed to prospective Private Lenders (provided that you and your counsel shall have been given a reasonable opportunity to review such documents): (i) administrative materials for prospective First Lien Lenders such as lender meeting invitations, allocations and funding and closing memoranda, (ii) term sheets and notifications of changes to the Facilities’ terms and (iii) drafts and final versions of the Facilities Documentation. If you advise the First Lien Lead Arrangers, prior to their dissemination, that any of the foregoing items should be distributed only to Private Lenders, then the First Lien Lead Arrangers will not distribute such materials to Public Lenders without your prior written consent. You also agree, at the reasonable request of the First Lien Lead Arrangers, to use commercially reasonable efforts to identify information to be distributed to the Public Lenders by clearly and conspicuously marking the same as “PUBLIC” (it being understood that you shall not be under any obligation to mark any particular portion of the information as “PUBLIC”). By marking any documents, information or other data “PUBLIC” you shall be deemed to have authorized the Commitment Parties and the First Lien Lenders (subject to the confidentiality and other provisions of this Commitment Letter) to treat such documents, information or other data as not containing MNPI. The First Lien Lead Arrangers shall be entitled to treat all information that is not specifically identified as “PUBLIC” as being suitable only for posting to Private Lenders (other than those documents described in clauses (i), (ii) and (iii) of this paragraph).

 

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4.Information

 

You hereby represent (with respect to the Target and its subsidiaries and their respective businesses and assets, to your knowledge) (but the accuracy of which representation shall not be a condition to the commitments hereunder or to the funding of the Facilities on the Closing Date) that (i) all written factual information (other than the Projections, the Model, other forward-looking information, information of a general economic or general industry nature and all third party memos or reports furnished to us) (such non-excluded items, the “Information”), that has been or will be made available to us by you, the Sponsor or any of your or its representatives in connection with the transactions contemplated hereby, when taken as a whole, does not or will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (after giving effect to all supplements and updates thereto) and (ii) the written financial projections that have been or will be made available to us by you, the Sponsor or any of your or its representatives on your behalf in connection with the transactions contemplated hereby (the “Projections”) have been or will be prepared in good faith based upon assumptions believed by you to be reasonable at the time furnished (it being recognized by the Commitment Parties that such Projections are predictions as to future events and are not to be viewed as facts, are subject to significant uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular financial projections will be realized, that actual results during the period or periods covered by any such Projections may differ significantly from the projected results, and that such differences may be material). You agree that if, at any time prior to the later of (x) the Closing Date and (y) the expiration of the Syndication Period, you become aware that any of the representations in the preceding sentence (to your knowledge with respect to the Target and its subsidiaries and their respective businesses and assets and any third party memos or reports), would be incorrect in any material respect if the Information and the Projections contained in the Information Materials were being furnished, and such representations and warranties were being made, at such time, then you will promptly supplement (or, with respect to Information and Projections with respect to the Target and its subsidiaries or assets, subject to any limitation on your rights set forth in the Acquisition Agreement, use your commercially reasonable efforts to promptly supplement) the Information or the Projections, as applicable, so that such representations are correct in all material respects under those circumstances (or, in the case of any Information or Projections with respect to the Target and its subsidiaries and their respective businesses and assets or contained in any third party memos, reports, or any Company SEC Reports (as defined in the Acquisition Agreement), to your knowledge), and such supplementation shall cure any breach of any such representation. In arranging and syndicating the First Lien Facilities, the First Lien Lead Arrangers may, and in providing the Second Lien Term Facility the GS Principal Investors may, use and rely on the Information, Projections and other forward-looking information without independent verification thereof and we do not assume responsibility for the accuracy or completeness of the Information, the Projections, the Model and other forward-looking information.

 

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5.Fees and Closing Payments

 

As consideration for the commitments and agreements of the Commitment Parties hereunder, you agree to pay or cause to be paid the fees described in this Commitment Letter and in (i) the Amended & Restated First Lien Fee Letter dated the date hereof and delivered herewith among you, the First Lien Lead Arrangers and the Initial First Lien Lenders (the “First Lien Fee Letter”) and (ii) the Second Lien Closing Payment Letter dated the date hereof and delivered herewith among you and the Initial GS Principal Investors (the “Second Lien Closing Payment Letter” and, together with the First Lien Fee Letter, collectively, the “Fee and Closing Payment Letters”), in each case, on the terms and subject to the conditions (including as to timing and amount) set forth herein and therein.

 

6.Conditions

 

Notwithstanding anything in this Commitment Letter, the Fee and Closing Payment Letters, the Facilities Documentation or any other letter agreement or other undertaking concerning the financing of the transactions contemplated hereby to the contrary:

 

(i)       the only conditions to the commitments hereunder and the availability and funding of any Facility on the Closing Date are those set forth in the Conditions Exhibit applicable to such Facility and, upon satisfaction (or waiver by the applicable Initial Lenders) of such conditions, each Administrative Agent and the Initial Lenders will execute and deliver the Facilities Documentation to which it is a party and the initial funding of the Facilities shall occur; it being understood and agreed that there are no other conditions (implied or otherwise) to the commitments hereunder or to the availability and funding of the Facilities on the Closing Date, including compliance with the terms of this Commitment Letter, the First Lien Fee Letter and Second Lien Closing Payment Letter or the Facilities Documentation (other than the conditions set forth in the Conditions Exhibit);

 

(ii)       the only representations and warranties the making or accuracy of which shall be a condition to the availability and funding of the Facilities on the Closing Date shall be (a) such of the representations made by or with respect to the Target and its subsidiaries in the Acquisition Agreement as are material to the interests of the Lenders (in their capacities as such), but only to the extent that you or your applicable affiliate has the right (taking into account any cure provisions) to terminate your (or its) obligations under the Acquisition Agreement or to decline to consummate the Acquisition without resulting in (x) the payment of any fees, liquidated damages or other amounts under the Acquisition Agreement in accordance with the Acquisition Agreement or (y) liability to it or you (or such affiliate) as a result of a breach of such representations (to such extent, the “Specified Acquisition Agreement Representations”) and (b) the Specified Representations (as defined below) (the representations described in clauses (a) and (b) being the “Closing Date Representations”); and

 

(iii)       the terms of the Facilities Documentation and any closing deliverables shall be in a form such that they do not impair the availability or funding of the Facilities on the Closing Date if the conditions set forth in the Conditions Exhibit are satisfied (or waived by the applicable Initial Lenders) (it being understood that, to the extent any lien search or, if applicable, Collateral (including the creation or perfection of any security interest) is not or cannot be provided on the Closing Date (other than, if applicable, the perfection of liens on Collateral that may be perfected by the filing of financing statements under the UCC and the delivery of stock certificates of the Lead Borrower and its wholly-owned, material restricted subsidiaries formed or organized under the laws of the United States of America, any state thereof or the District of Columbia (in each case, to the extent certificated) evidencing the equity interests required to be pledged pursuant to the Term Sheets with respect to which a lien may be perfected by the delivery of a stock or equivalent certificate, but, with respect to the Target and its subsidiaries, only to the extent received after use of commercially reasonable efforts to do so) after your use of commercially reasonable efforts to do so without undue burden or expense, then the provision of any such lien search and/or Collateral (including the creation or perfection of any security interest) shall not constitute a condition precedent to the availability or funding of the Facilities on the Closing Date, but may instead be provided within 90 days (or 120 days in the case of real property and related fixtures) after the Closing Date (or, in the case of any possessory collateral, the date upon which stay at home, social distancing and other COVID-19 related measures limiting physical interaction are lifted (including taking into account any quarantine, “shelter in place,” “stay at home,” workforce reduction, facility capacity limitation, social distancing, shut down, closure, sequester, safety or similar applicable law, directive, guidelines or recommendations promulgated by any governmental authority, including the Centers for Disease Control and Prevention and the World Health Organization, in each case, in connection with or in response to the disease known as “COVID-19”, including the CARES Act and Families First Act); provided that if such measures are lifted and later reinstated, they will be deemed to not have been lifted for purposes hereof) pursuant to arrangements to be mutually agreed, subject to such extensions as are reasonably agreed by the First Lien Administrative Agent.

 

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Specified Representations” means the representations and warranties set forth in the Term Sheets and made by the Loan Parties in the Facilities Documentation solely relating to: incorporation or formation of Holdings and the Lead Borrower; organizational power and authority of the Loan Parties to execute, deliver and perform under the Facilities Documentation; due authorization, execution, delivery and enforceability of the Facilities Documentation; solvency of Holdings and its subsidiaries on a consolidated basis after giving effect to the Transactions (to be determined in a manner consistent with the solvency certificate in the form attached as Annex I to the Conditions Exhibit); no conflicts of the Facilities Documentation (limited to the execution, delivery and performance of the applicable Facilities Documentation, incurrence of the debt thereunder and the granting of guarantees and, if applicable, security interests in respect thereof) with charter documents of the Loan Parties; not violating Federal Reserve margin regulations and the Investment Company Act; use of proceeds of the Facilities not violating PATRIOT Act, FCPA and OFAC; and, if applicable, the creation, validity and perfection of the security interests granted in UCC Article 9 collateral to be perfected on the Closing Date (subject in all respects to customary permitted liens and the foregoing provisions of this Section). Notwithstanding anything to the contrary contained herein, if any of the Closing Date Representations is qualified or subject to “material adverse effect”, the definition of “Company Material Adverse Effect” in the Acquisition Agreement shall apply for the purposes of any representations and warranties made, or to be made, on or as of the Closing Date.

 

This Section 6, and the provisions herein, shall be referred to as the “Limited Conditionality Provision”.

 

7.Indemnification and Expenses

 

You agree, if the Closing Date occurs, to reimburse the Commitment Parties, on the Closing Date, upon presentation of a summary statement, together with any supporting documentation reasonably requested by you, for all reasonable out-of-pocket fees and expenses (provided that (i) legal fees will be limited to the reasonable fees, disbursements and other charges of one firm of counsel to the First Lien Lenders, of one firm of counsel to the Second Lien Lenders and, if necessary, of one local counsel in each relevant material jurisdiction, in each case to such persons taken as a whole and (ii) in the case of any other advisors or consultants, such expense reimbursement obligations shall be limited solely to advisors or consultants approved by you) incurred in connection with the Facilities, solely in the case of the First Lien Facilities, the syndication thereof, and, in each case, the preparation, negotiation and execution of the applicable Facilities Documentation.

 

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You agree to indemnify and hold harmless each of the Commitment Parties and their respective affiliates (other than any Excluded Party and any Related Party of such Excluded Party in its capacity as such) and controlling persons and their respective directors, officers, employees, members, agents, advisors and other representatives, successors and assigns (each an “Indemnified Party”; and, in the case of any Commitment Party, any such other Indemnified Party related to such Commitment Party shall be referred to as a “Related Party” of such Commitment Party), within 30 days of a written demand therefor, together with backup documentation supporting such indemnity request, from and against all claims, damages, liabilities and reasonable out-of-pocket expenses (provided that legal fees, disbursements and other charges will be limited to the reasonable fees, disbursements and other charges of (i) one counsel to the Second Lien Lenders taken as a whole, (ii) one counsel to the First Lien Lenders taken as a whole, (iii) if necessary, one local counsel in each relevant material jurisdiction to the Indemnified Parties taken as a whole and (iv) in the case of any actual or perceived conflict of interest, after the affected person(s) notifies you of such conflict, one additional counsel and, if necessary, one additional local counsel in each relevant material jurisdiction to the affected Indemnified Parties taken as a whole) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding (each, a “Proceeding”) or preparation of a defense in connection therewith) any aspect of the Transactions or the Facilities (or any use made or proposed to be made with the proceeds thereof), in each case except to the extent such claim, damage, liability or expense (x) arises from a dispute that does not involve any action or omission by you or any of your affiliates and is solely among the Indemnified Parties (other than any claims against an Indemnified Party in its capacity as an Administrative Agent, a First Lien Lead Arranger or an Initial Lender) or (y) is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the bad faith, gross negligence or willful misconduct of such Indemnified Party or any of its Related Parties or a material breach by such Indemnified Party or any of its Related Parties of its obligations hereunder or under the Facilities Documentation. In the case of a Proceeding to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such Proceeding is brought by you, your equityholders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a party thereto and whether or not any aspect of the Transactions is consummated. The foregoing provisions of this paragraph shall be superseded to the extent covered by the applicable provisions of the Facilities Documentation upon execution thereof and thereafter shall have no further force and effect.

 

No Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to you or your subsidiaries or affiliates or to your or their respective equityholders or creditors arising out of, related to or in connection with any aspect of the Transactions, except to the extent of direct, as opposed to special, indirect, consequential or punitive, damages determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the bad faith, gross negligence or willful misconduct of such Indemnified Party or any of its Related Parties or a material breach by such Indemnified Party or any of its Related Parties of its obligations under this Commitment Letter or the Facilities Documentation. Notwithstanding anything herein to the contrary, none of you, the Sponsor, the other Investors, the Target or any of your or their affiliates shall be liable for any special, indirect, consequential or punitive damages (whether direct or indirect, in contract or tort or otherwise) arising out of, related to or in connection with, this Commitment Letter, the Original Commitment Letter, the Original Fee Letter (as defined in the First Lien Fee Letter), the Fee and Closing Payment Letters or any aspect of the Transactions; provided that nothing contained in this sentence shall limit your indemnification and reimbursement obligations to the extent such special, indirect, consequential or punitive damages are included in any third party claim with respect to which such Indemnified Party is entitled to indemnification hereunder.

 

No Indemnified Party shall be liable for any damages arising from the use by others of information or other materials obtained through electronic telecommunications or other information transmission systems, other than for direct or actual damages resulting from the bad faith, gross negligence or willful misconduct of such Indemnified Party or any of its Related Parties, in each case as determined by a final and non-appealable judgment of a court of competent jurisdiction.

 

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You shall not be liable for any settlement, compromise or consent to the entry of any judgment in any Proceeding (or expenses related thereto) effected without your written consent (which consent shall not be unreasonably withheld or delayed), but if settled, compromised or consented to with your written consent, or if there is a final and non-appealable judgment by a court of competent jurisdiction in any such Proceeding, you agree to indemnify and hold harmless each Indemnified Party in the manner and to the extent set forth above. You shall not effect any settlement of any pending or threatened proceedings in respect of which indemnity has been sought hereunder by an Indemnified Party without the prior written consent of such Indemnified Party (which consent shall not be unreasonably withheld, conditioned or delayed) unless such settlement (i) includes an unconditional release of such Indemnified Party in form and substance reasonably satisfactory to such Indemnified Party from all liability or claims that are the subject matter of such proceedings and (ii) does not include any statement as to or any admission of fault by or on behalf of any Indemnified Party.

 

Each Indemnified Party shall be severally obligated to refund or return any and all amounts paid to such Indemnified Party by you or any of your affiliates under this Section to the extent such Indemnified Party is not entitled to payment of such amounts in accordance with the terms hereof (as determined by a court of competent jurisdiction in a final and non-appealable judgment). In addition, you shall have no obligation to reimburse any Indemnified Party for fees or expenses unless such Indemnified Party provides to you a written undertaking in which such Indemnified Party agrees to refund and return any and all amounts paid by you to such Indemnified Party to the extent any of the foregoing exceptions in clauses (x) or (y) of the second paragraph of this Section 7 applies.

 

8.Sharing of Information, Absence of Fiduciary Relationship, Affiliate Activities

 

You acknowledge that each Commitment Party (other than the GS Principal Investors (but not their affiliates)) (together with its affiliates, each a “Financial Institution”) is a full service securities firm engaged, either directly or through affiliates, in various activities, including securities trading, investment banking and financial advisory, investment management, principal investment, hedging, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals. The Financial Institutions may have economic interests that conflict with those of you, the Target and your and its respective affiliates. In the ordinary course of these activities, each Financial Institution may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and/or financial instruments (including bank loans) for its own account and for the accounts of its customers and may at any time hold long and short positions in such securities and/or instruments. Such investment and other activities may involve securities and instruments of you, the Target and your and its affiliates, as well as of other entities and persons and their affiliates which may (i) be involved in transactions arising from or relating to the engagement contemplated by this Commitment Letter, (ii) be customers or competitors of you, the Target or your or its respective subsidiaries or affiliates or (iii) have other relationships with you, the Target or your or its respective subsidiaries or affiliates. With respect to any securities and/or instruments so held by any Financial Institution or any of its customers, all rights in respect of such securities and instruments, including any voting rights, will be exercised by the holder of the rights, in its sole discretion. In addition, the Financial Institutions may provide investment banking, underwriting and/or financial advisory services to such other entities and persons. The Financial Institutions may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of you or the Target or such other entities. The transactions contemplated by this Commitment Letter may have a direct or indirect impact on the investments, securities or instruments referred to in this paragraph. NOTWITHSTANDING ANYTHING CONTAINED HEREIN OR IN THE FEE AND CLOSING PAYMENT LETTERS TO THE CONTRARY, NO GS PRINCIPAL INVESTOR IS ACTING AS AN UNDERWRITER, ARRANGER, TRUSTEE, AGENT OR IN A SIMILAR ROLE OR OTHERWISE PERFORMING ANY SERVICES HEREUNDER AND THE ROLE OF THE GS PRINCIPAL INVESTORS HEREUNDER AND UNDER THE FEE AND CLOSING PAYMENT LETTERS SHALL BE LIMITED TO THEIR COMMITMENT TO PROVIDE DEBT FINANCING AS A PRINCIPAL.

 

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The Financial Institutions, in the course of such other activities and relationships, may acquire information about the transactions contemplated by this Commitment Letter or other entities and persons which may be the subject of the financing contemplated by this Commitment Letter. None of the Financial Institutions and none of their respective affiliates will use confidential information obtained from you or your affiliates or on your or their behalf by virtue of the transactions contemplated hereby in connection with the performance by the Financial Institutions of services for other companies or other persons and none of the Financial Institutions will furnish any such information to any of their other customers. You also acknowledge that the Financial Institutions have no obligation to use in connection with the transactions contemplated hereby, or to furnish to you, confidential information obtained from other companies or other persons.

 

You further acknowledge and agree that (i) no fiduciary, advisory or (except as expressly provided in the Facilities Documentation) agency relationship between you and the Financial Institutions is intended to be or has been created in respect of any of the transactions contemplated by this Commitment Letter, irrespective of whether the Financial Institutions have advised or are advising you on other matters, (ii) the Financial Institutions, on the one hand, and you, on the other hand, have an arm’s length business relationship that does not directly or indirectly give rise to, nor do you rely on, any fiduciary duty on the part of the Financial Institutions (and you hereby waive and release, to the fullest extent permitted by law, any claims that you may have against the Commitment Parties and their respective affiliates with respect to any breach or alleged breach of fiduciary duty and agree that no Commitment Party shall have any liability (whether direct or indirect) to you in respect of such fiduciary duty claim or to any person asserting a fiduciary duty on behalf of or in right of you, including your equity holders, employees or creditors, in each case in connection with the transactions contemplated by this Commitment Letter), (iii) you are capable of evaluating and understanding, and you understand and accept, the terms, risks and conditions of the transactions contemplated by this Commitment Letter and (iv) you have been advised that the Commitment Parties are engaged in a broad range of transactions that may involve interests that differ from your interests and that the Financial Institutions have no obligation to disclose such interests and transactions to you by virtue of any fiduciary, advisory or agency relationship. In addition, please note that the Commitment Parties do not provide accounting, tax, investment, regulatory or legal advice.

 

This Section 8 shall not apply to or modify or otherwise affect any arrangement with any advisor (including any financial advisor) separately retained by you, the Sponsor or any of your or its affiliates in connection with the Acquisition, in its capacity as such.

 

-13-

 

 

9.Confidentiality

 

This Commitment Letter is delivered to you on the understanding that (i) you shall not disclose, directly or indirectly, to any other person the Original Fee Letter (as defined in the First Lien Fee Letter), the First Lien Fee Letter, the Second Lien Closing Payment Letter or the contents thereof or (x) prior to the Acceptance Date (as defined in the Original Commitment Letter), the Original Commitment Letter or the contents thereof or (y) prior to your acceptance hereof, the Commitment Letter or the contents hereof except (a) to the Sponsor and the other Investors, the Target, potential equity investors (including rollover investors), your and their respective affiliates and your and their respective officers, directors, employees, members, partners, stockholders, attorneys, accountants, auditors, agents and advisors, in each case, on a confidential basis, unless, in each case, the Commitment Parties otherwise consent in writing (such consent not to be unreasonably withheld) (provided that any disclosure of the Original Fee Letter (as defined in the First Lien Fee Letter), the First Lien Fee Letter, the Second Lien Closing Payment Letter or any of their respective terms or substance to the Target or their respective officers, directors, employees, affiliates, members, partners, stockholders, attorneys, accountants, auditors, agents or advisors shall be redacted, in a customary manner, in respect of the amounts, percentages and basis points of fees set forth therein, including, without limitation in the “flex” provisions thereof), (b) (1) in any legal, judicial or administrative proceeding or as otherwise required by law, court order, order of any administrative agency, regulation or any compulsory legal process or as requested by a governmental or regulatory authority (in which case you agree, to the extent practicable and permitted by law, to inform us promptly in advance thereof and, to the extent you may legally and practically do so, allow us a reasonable opportunity to object to such disclosure in such proceeding or process, and in any event to use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment) or (2) to the extent necessary in connection with the exercise of any remedy or enforcement of any rights hereunder or under the Original Fee Letter (as defined in the First Lien Fee Letter) or any Fee and Closing Payment Letter, (c) you may disclose (1) the Original Fee Letter (as defined in the First Lien Fee Letter) and/or the First Lien Fee Letter and the contents thereof to existing and potential First Lien Additional Arrangers, in each case who have agreed to be bound by confidentiality restrictions with respect thereto on substantially the same terms set forth in the next paragraph and (2) the Original Fee Letter (as defined in the First Lien Fee Letter) and/or any Fee and Closing Payment Letter and the contents thereof to the Target’s auditors for customary accounting purposes, including accounting for deferred financing costs and (d) you may disclose the aggregate fee amount contained in the First Lien Fee Letter and the Second Lien Closing Payment Letter as part of the Projections, pro forma information or a generic disclosure of aggregate sources and uses related to fee amounts related to the Transactions to the extent customary or required in offering and marketing materials (including any prospectus or offering memorandum) for the First Lien Facilities (or any Notes issued in lieu thereof) or in any public or regulatory filing requirement related to the Transactions and (ii) the Commitment Letter and the contents hereof may be disclosed (a) on a confidential basis to potential Lenders, First Lien Additional Arrangers and their respective officers, directors, employees, affiliates, members, partners, stockholders, attorneys, accountants, auditors, agents and advisors and to any rating agency in connection with the Transactions, (b) in any syndication of the Facilities (including in any Confidential Information Memorandum) or in any proxy statement or other public or regulatory filing in connection with the Transactions, (c) to the extent such information becomes publicly available other than by reason of improper disclosure by you in violation of any confidentiality obligations hereunder or (d) as may be required by the rules, regulations, schedules and forms of the Securities and Exchange Commission in connection with any filings with the Securities and Exchange Commission. The obligations under this paragraph with respect to the Original Commitment Letter and this Commitment Letter (but not the Original Fee Letter (as defined in the First Lien Fee Letter), the First Lien Fee Letter nor the Second Lien Closing Payment Letter) shall terminate on the earlier of (i) to the extent covered thereby, the execution and delivery of the Facilities Documentation and (ii) the first anniversary of the date of the Original Commitment Letter.

 

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Each Commitment Party, on behalf of itself and its affiliates, shall use all information received by it or them from (or on behalf of) you or the Sponsor in connection with the Acquisition and the related transactions (including any information obtained by it or them based on a review of any books and records relating to Holdings, the Lead Borrower or the Target or any of their respective subsidiaries or affiliates) solely for the purposes of providing the services that are the subject of this Commitment Letter and shall treat confidentially all such information and shall not publish, disclose or otherwise divulge such information; provided that nothing herein shall prevent any Commitment Party from disclosing any such information (other than to a Disqualified Institution) (i) in coordination with you, to rating agencies on a confidential basis in connection with the Transactions, (ii) to any actual or prospective Lenders, participants or direct or indirect contractual counterparties to any swap or derivative transaction relating to the Lead Borrower or any of its subsidiaries or its obligations under the Facilities, in each case, who are advised of the confidential nature of such information and agree to keep such information confidential (provided that no such disclosure shall be made to any Disqualified Institution), (iii) to the extent compelled by legal process in, or reasonably necessary to, the defense of such legal, judicial or administrative proceeding, in any legal, judicial or administrative proceeding or otherwise as required by applicable law, rule or regulation (in which case such Commitment Party shall promptly notify you, in advance, to the extent permitted by law (and if such Commitment Party is unable to notify you in advance of such disclosure, such notice shall be delivered to you promptly thereafter to the extent permitted by law) and, to the extent such Commitment Party may legally and practically do so, allow you a reasonable opportunity to object to such disclosure in such proceeding or process, and in any event use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment), (iv) upon the request or demand of any regulatory authority (including any self-regulatory authority) having jurisdiction over such Commitment Party or its affiliates (in which case such Commitment Party shall, except with respect to any routine or ordinary course audit or examination conducted by bank accountants or any regulatory authority or self-regulatory authority exercising examination or regulatory authority, promptly notify you, in advance, to the extent permitted by law (and if such Commitment Party is unable to notify you in advance of such disclosure, such notice shall be delivered to you promptly thereafter to the extent permitted by law) and, to the extent such Commitment Party may legally and practically do so, allow you a reasonable opportunity to object to such disclosure, and in any event use commercially reasonable efforts to ensure that any such information so disclosed is accorded confidential treatment), (v)(x) in the case of the First Lien Lead Arrangers and the Initial First Lien Lenders (in each case on behalf of itself and its affiliates), on a confidential “need to know” basis and solely in connection with the transactions contemplated hereby, to the employees, directors, legal counsel, independent auditors, professionals and other experts or agents of such Commitment Party (collectively, the “First Lien Representatives”) who are informed of the confidential nature of such information and agree to keep information of this type confidential in accordance with customary practices for syndicated loans (provided that such Commitment Party shall be responsible for its Representatives’ compliance with this paragraph) and (y) in the case of the GS Principal Investors (in each case on behalf of itself and its affiliates), on a confidential “need to know” basis and solely in connection with the transactions contemplated hereby, to the limited partners, lenders, investors, managed accounts, employees, directors, officers, legal counsel, independent auditors, professionals and other experts or agents of such GS Principal Investor (collectively, the “Second Lien Representatives” and, together with the First Lien Representatives, the “Representatives”) in connection with negotiating, evaluating, consummating, monitoring, financing or administering such GS Principal Investor’s investment in the Second Lien Term Facility and who are informed of the confidential nature of such information and agree to keep information of this type confidential (provided that such Commitment Party shall be responsible for its Second Lien Representatives’ compliance with this paragraph), (vi) on a confidential “need to know” basis and, other than with respect to the GS Principal Investors, solely in connection with the transactions contemplated hereby, to any of its respective affiliates (provided that no such disclosure shall be made to any affiliates that are engaged as principals primarily in private equity, mezzanine financing or venture capital or that are engaged directly or indirectly in a sale of the Target and its subsidiaries as sell-side representative or any such affiliate’s Representatives including those providing advisory services, in each case other than a limited number of senior employees who are required, in accordance with industry regulations or such Commitment Party’s internal policies and procedures, to act in a supervisory capacity and such Commitment Party’s internal legal, compliance, risk management, credit and investment committee members (each, an “Excluded Party”); it being understood and agreed that this proviso shall not apply to the GS Principal Investors or any of their Representatives) or their Representatives (who are informed of the confidential nature of such information and agree to keep information of this type confidential in accordance with customary practices for syndicated loans) (provided that such Commitment Party shall be responsible for its affiliates’ and Representatives’ compliance with this paragraph), (vii) to the extent any such information becomes publicly available other than by reason of disclosure by any Commitment Party, its affiliates or its or their Representatives in violation of any confidentiality obligations owing to you, the Sponsor, the Target or any of your or their respective subsidiaries (including those set forth in this paragraph), (viii) to the extent such information was already in the possession of the Commitment Parties (except to the extent received in a manner restricted by this paragraph) or is independently developed by the Commitment Parties or their respective affiliates based exclusively on information the disclosure of which would not otherwise be restricted by this paragraph, (ix) to the extent such information was received by any Commitment Party from a third party that to such Commitment Party’s knowledge is not subject to confidentiality obligations owing to you, the Sponsor, the Target or any of your or their respective subsidiaries, (x) for purposes of establishing a “due diligence” defense and (xi) to market data collectors, similar services providers to the lending industry, and service providers to the First Lien Lead Arrangers and the Lenders in connection with the administration and management of the Facilities; provided that the disclosure of any such information to any Lenders or prospective Lenders, participants or prospective participants or contractual counterparties, in each case referred to in clause (ii) above shall be made subject to the acknowledgment and acceptance by such Lender or prospective Lender, participant or prospective participant or such counterparty that such information is being disseminated on a confidential basis (on substantially the terms set forth in this paragraph or as is otherwise reasonably acceptable to you and each Commitment Party, including, without limitation, as agreed in the Confidential Information Memorandum or other marketing materials) in accordance with the standard syndication processes of such Commitment Party or customary market standards for dissemination of such type of information. In no event shall any disclosure of information referred to above be made to any person that is an Excluded Party or Disqualified Institution at the time of such disclosure. The obligations of the Commitment Parties under this Section 9 shall remain in effect until the earlier of (a) the second anniversary of the date of the Original Commitment Letter and (b) the date the definitive Facilities Documentation is entered into by the Commitment Parties, at which time any confidentiality undertaking in the definitive Facilities Documentation shall supersede this provision. Notwithstanding anything in this Section 9 to the contrary, we may place advertisements in financial and other newspapers and periodicals or on a home page or similar place for dissemination of information on the Internet or World Wide Web as we may choose, and circulate similar promotional materials, after the closing of the Transactions in the form of a “tombstone” or otherwise using your logos or describing the names of you, the Lead Borrower and your and its affiliates (or any of them), and the amount, type and closing date of the Transactions, all at our expense and with your prior approval (such approval not to be unreasonably withheld, conditioned or delayed).

 

-15-

 

 

10.Miscellaneous

 

This Commitment Letter shall not be assignable by any party hereto (except by (i) you to (a) a newly formed shell entity that is an affiliate controlled directly or indirectly by the Sponsor to effect the consummation of the Acquisition and is organized under the laws of the District of Columbia or any state of the United States of America or any other jurisdiction reasonably agreed by the Commitment Parties, (b) the Target (as a matter of law or otherwise substantially simultaneously with the consummation of the Acquisition on the Closing Date) or, with the consent (not to be unreasonably withheld, conditioned or delayed) of the Commitment Parties, a wholly-owned subsidiary or direct or indirect parent of the Target or (c) the Lead Borrower, in each case immediately prior to or otherwise substantially concurrently with the consummation of the Acquisition, (ii) a Commitment Party to a First Lien Additional Arranger as expressly set forth in Section 2 or (iii) with respect to assignments among Goldman Sachs Bank USA and Goldman Sachs Lending Partners LLC) without the prior written consent (such consent not to be unreasonably withheld, conditioned or delayed) of each other party hereto (and any purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto, the Sponsor and the Indemnified Parties and is not intended to and does not confer any benefits upon, or create any rights in favor of, any person other than the parties hereto and the Indemnified Parties to the extent expressly set forth herein, except to the extent that you and we otherwise agree in writing; provided, that notwithstanding anything to the contrary contained herein, each party hereto hereby agrees that each Initial GS Principal Investor shall have the right to (without the consent of any person or entity) reallocate, sell, assign or otherwise transfer its commitment in respect of the Second Lien Term Facility and/or any closing payment to (x) any other Initial GS Principal Investor, (y) any affiliated investment entity and/or other affiliate of Goldman Sachs & Co. LLC or (z) any fund, investor, entity or account that is managed, sponsored or advised by Goldman Sachs & Co. LLC or its affiliates and, in each case, which is not a Disqualified Institution or a natural person (the persons described in clauses (y) and (z), collectively, the “Other GS Principal Investors”); provided, further, that no such re-reallocation, sale assignment or transfer shall reduce or release any such GS Principal Investor from its commitment in respect of the Second Lien Term Facility hereunder until the actual funding of the applicable portion of the Second Lien Term Facility by the relevant transferee on the Closing Date (it being understood and agreed that no Initial GS Principal Investor shall be relieved or novated from its obligations hereunder (including its obligation to fund the Second Lien Term Facility on the Closing Date) in connection with any such reallocation, sale assignment or transfer of the commitments in respect of the Second Lien Term Facility, including its commitments in respect thereof, until after the initial funding of the Second Lien Term Facility on the Closing Date). Subject to Section 3 above, the Commitment Parties reserve the right to employ the services of their affiliates or branches (other than any Disqualified Institution) in providing services contemplated hereby (and, in connection with such employment, the Commitment Parties may, subject to the confidentiality provisions hereof, exchange with such affiliates or branches information concerning you and your affiliates in connection with the Transactions and, to the extent so employed, such affiliates and branches shall be entitled to the benefits afforded to the Commitment Parties hereunder) and to allocate, in whole or in part, to their affiliates the fees payable to the Commitment Parties in such manner as the Commitment Parties and their affiliates may agree in their sole discretion, but no Commitment Party shall be relieved of its obligations under this Commitment Letter. Neither this Commitment Letter nor any Fee and Closing Payment Letter may be amended or any provision hereof waived or modified except by an instrument in writing signed by you and each party hereto or thereto. Each of the parties hereto agrees that (x) this Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein (except as may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness, good faith and fair dealing and equitable principles of general applicability), it being understood and agreed that the commitments to provide the Facilities are subject to the conditions set forth in the Conditions Exhibit (and no other conditions) and (y) each Fee and Closing Payment Letter is a binding and enforceable agreement with respect to the subject matter contained therein (except as may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness, good faith and fair dealing and equitable principles of general applicability); provided that nothing contained in this Commitment Letter obligates you or any of your affiliates to consummate any portion of the Transactions. Any provision of this Commitment Letter or any Fee and Closing Payment Letter that provides for, requires or otherwise contemplates any consent, approval, agreement or determination by or consultation with you (or any Borrower referred to in any Term Sheet) on or prior to the Closing Date, shall also be construed as providing for, requiring or otherwise contemplating consent, approval, agreement or determination by or consultation with the Sponsor (unless the Sponsor otherwise notifies the parties hereto).

 

-16-

 

 

Section headings used herein are for convenience of reference only and are not to affect the construction of, or to be taken into consideration in interpreting, this Commitment Letter. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together, shall constitute one agreement. Delivery of an executed signature page of this Commitment Letter by facsimile or electronic transmission (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart hereof. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in this Commitment Letter shall be deemed to include electronic signatures or electronic records, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

 

This Commitment Letter, the First Lien Fee Letter and the Second Lien Closing Payment Letter are the only agreements that have been entered into among us and you with respect to the Facilities and set forth the entire understanding of the parties with respect thereto. This Commitment Letter shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York; provided that the governing law of the Acquisition Agreement (the “Acquisition Agreement Governing Law”) shall govern in determining (i) the interpretation of a “Company Material Adverse Effect” (as defined in the Acquisition Agreement) and “Effect” (as defined in the Acquisition Agreement) and whether a “Company Material Adverse Effect” has occurred, (ii) the accuracy of any Specified Acquisition Agreement Representation and whether as a result of any inaccuracy thereof you or your applicable affiliate has the right or would have the right (taking into account any applicable cure provisions) to terminate your or its obligations under the Acquisition Agreement or to decline to consummate the Acquisition, in each case without resulting in (x) the payment of any fees, liquidated damages or other amounts under the Acquisition Agreement in accordance with the Acquisition Agreement or (y) liability to you (or such affiliate) under the Acquisition Agreement as a result of a breach of such Specified Acquisition Agreement Representation and (iii) whether the Acquisition has been consummated in accordance with the terms of the Acquisition Agreement (in each case, without regard to the principles of conflicts of laws thereof, to the extent that the same are not mandatorily applicable by statute and would require or permit the application of the law of another jurisdiction) (the matters referred to in this proviso, the “Acquisition Related Matters”).

 

You and we hereby irrevocably and unconditionally submit to the exclusive jurisdiction of any New York State or, to the fullest extent permitted under applicable law, federal court sitting in the Borough of Manhattan in The City of New York over any suit, action or proceeding arising out of or relating to the Transactions or the other transactions contemplated hereby, this Commitment Letter, the First Lien Fee Letter or the Second Lien Closing Payment Letter or the performance of services hereunder or thereunder and agree that any such suit, action or proceeding shall be brought in such courts. Service of any process, summons, notice or document by registered mail addressed to you or us shall be effective service of process for any suit, action or proceeding brought in any such court. You and we hereby irrevocably and unconditionally waive, to the fullest extent permitted under applicable law, any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding has been brought in any inconvenient forum. You and we hereby irrevocably agree to waive, to the fullest extent permitted under applicable law, trial by jury in any suit, action, proceeding, claim or counterclaim brought by or on behalf of any party related to or arising out of the Transactions, this Commitment Letter, the First Lien Fee Letter or the Second Lien Closing Payment Letter or the performance of services hereunder or thereunder. A final judgment in any such suit, action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

Each of the Commitment Parties hereby notifies you that, pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (as amended, the “PATRIOT Act”) and the requirements of 31 C.F.R. §1010.230 (the “Beneficial Ownership Regulation”), it and each Lender is required to obtain, verify and record information that identifies the Lead Borrower and each Guarantor, which information includes names, addresses, tax identification numbers and other information that will allow such Commitment Party and such Lender to identify the Lead Borrower and each Guarantor in accordance with the PATRIOT Act and the Beneficial Ownership Regulation. This notice is given in accordance with the requirements of the PATRIOT Act and the Beneficial Ownership Regulation and is effective for the Commitment Parties and each Lender. You hereby acknowledge and agree that the Commitment Parties shall be permitted to share any or all such information with the Lenders.

 

-17-

 

 

The indemnification, expense reimbursement (if applicable in accordance with the terms hereof and the applicable Fee and Closing Payment Letter), jurisdiction, waiver of jury trial, governing law, service of process, venue, absence of fiduciary duty, affiliate activities, syndication, information and confidentiality provisions contained herein shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitments hereunder; provided that your obligations under this Commitment Letter (other than (a) your obligations with respect to information (which shall survive as provided herein) and syndication (including the Flex Provisions in the First Lien Fee Letter, which shall survive until the expiration of the Syndication Period) and (b) your obligations with respect to confidentiality of the First Lien Fee Letter and the Second Lien Closing Payment Letter and the contents thereof) shall automatically terminate and be superseded by the provisions of the Facilities Documentation upon the initial funding thereunder, and you shall automatically be released from all liability in connection therewith at such time. You may terminate this Commitment Letter and the commitments of the Commitment Parties hereunder with respect to any Facility (or a portion thereof pro rata among the Commitment Parties under any given Facility) at any time upon written notice to the Commitment Parties from you, subject to your surviving obligations as set forth in this paragraph.

 

If the foregoing correctly sets forth our agreement, please indicate your acceptance of the terms of this Commitment Letter, the First Lien Fee Letter and the Second Lien Closing Payment Letter by returning to us executed counterparts of this Commitment Letter, the First Lien Fee Letter and the Second Lien Closing Payment Letter not later than 11:59 p.m., New York City time, on April 12, 2022. This offer will automatically expire at such time if we have not received such executed counterparts in accordance with the preceding sentence (the date of receipt by us of such executed counterparts, the “Acceptance Date”). In the event that the initial borrowing under the Facilities does not occur on or before the Expiration Time (as defined below), then this Commitment Letter and the commitments hereunder shall automatically terminate unless we shall, in our discretion, agree to an extension. “Expiration Time” means 11:59 p.m., New York City time, on the day that is the earliest of (i) the Closing Date, (ii) the termination by you of the Acquisition Agreement in accordance with its terms prior to the closing of the Acquisition, (iii) the closing of the Acquisition without the use of any of the Facilities and (iv) five business days following the “Termination Date” (as defined in the Acquisition Agreement as in effect on the date of the Original Commitment Letter and determined after giving effect to any extensions thereto as set forth in the Acquisition Agreement as in effect on the date of the Original Commitment Letter); provided that the termination of any commitment pursuant to this sentence does not, subject to the other provisions of this Commitment Letter, prejudice your rights and remedies in respect of any prior breach or repudiation of this Commitment Letter.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

-18-

 

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

 

  By: /s/ Mikhail Faybusovich
  Name: Mikhail Faybusovich
  Title: Authorized Signatory

 

  By: /s/ Michael Wagner
  Name: Michael Wagner
  Title: Authorized Signatory

 

  CREDIT SUISSE LOAN FUNDING LLC

 

  By: /s/ Samarth Chaturvedi
  Name: Samarth Chaturvedi
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing. 

 

  Very truly yours,
   
  GOLDMAN SACHS BANK USA

 

  By: /s/ Robert Ehudin
  Name: Robert Ehudin
  Title: Authorized Signatory

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  BANK OF MONTREAL

 

  By: /s/ Mark Trudell
  Name: Mark Trudell
  Title: Managing Director

 

  BMO CAPITAL MARKETS CORP.

 

  By: /s/ Mark Trudell
  Name: Mark Trudell
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,

 

  BARCLAYS BANK PLC

 

  By: /s/ George Lee
  Name: George Lee
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  DEUTSCHE BANK AG NEW YORK BRANCH

 

  By: /s/ Alvin Varughese
  Name: Alvin Varughese
  Title: Managing Director

 

  By: /s/ Shaun Ryan
  Name: Shaun Ryan
  Title: Director

 

  DEUTSCHE BANK AG CAYMAN ISLANDS BRANCH

 

  By: /s/ Alvin Varughese
  Name: Alvin Varughese
  Title: Managing Director

 

  By: /s/ Shaun Ryan
  Name: Shaun Ryan
  Title: Director

 

  DEUTSCHE BANK SECURITIES INC.

 

  By: /s/ Alvin Varughese
  Name: Alvin Varughese
  Title: Managing Director

 

  By: /s/ Shaun Ryan
  Name: Shaun Ryan
  Title: Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  ROYAL BANK OF CANADA

 

  By: /s/ Charles Smith
  Name: Charles Smith
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  TD SECURITIES (USA) LLC

 

  By: /s/ Cecile Baker
  Name: Cecile Baker
  Title: Managing Director

 

  THE TORONTO-DOMINION BANK, NEW YORK BRANCH

 

  By: /s/ Jon Colquhoun
  Name: Jon Colquhoun
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  WELLS FARGO BANK, NATIONAL ASSOCIATION

 

  By: /s/ Evan Waschitz
  Name: Evan Waschitz
  Title: Director

 

  WELLS FARGO SECURITIES, LLC

 

  By: /s/ Mitch Williams
  Name: Mitch Williams
  Title: Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  BANK OF AMERICA, N.A.

 

  By: /s/ Reagan C. Philipp
  Name: Reagan C. Philipp
  Title: Managing Director

 

  BOFA SECURITIES, INC.

 

  By: /s/ Reagan C. Philipp
  Name: Reagan C. Philipp
  Title: Managing Director

 

Signature Page to Project Central Commitment Letter

 

 

We are pleased to have been given the opportunity to assist you in connection with this important financing.

 

  Very truly yours,
   
  WSMP VIII INVESTMENTS J, LP

 

  By: Goldman Sachs Asset Management, L.P.,
    as Investment Manager
  By: /s/ Matthew Baker
  Name: Matthew Baker
  Title: Managing Director

 

  WSMP VIII INVESTMENTS L, SLP

 

  By: Goldman Sachs Asset Management, L.P.,
    as Investment Manager
  By: /s/ Matthew Baker
  Name: Matthew Baker
  Title: Managing Director

 

  WSMP VIII INVESTMENTS HOLDINGS D, LP

 

  By: Goldman Sachs Asset Management, L.P.,
    as Investment Manager
  By: /s/ Matthew Baker
  Name: Matthew Baker
  Title: Managing Director

 

  WSMP VIII INVESTMENTS Q, LLC

 

  By: Goldman Sachs Asset Management, L.P.,
    as Investment Manager
  By: /s/ Matthew Baker
  Name: Matthew Baker
  Title: Managing Director

 

  BROAD STREET CREDIT HOLDINGS LLC

 

  By: /s/ Matthew Baker
  Name: Matthew Baker
  Title: Vice President

 

Signature Page to Project Central Commitment Letter

 

 

The provisions of this Commitment Letter

are accepted and agreed to as of the date

first written above:

 

CENTRAL PARENT LLC

 

By: /s/ David Gregory  
Name: David Gregory  
Title: Managing Partner  

 

Signature Page to Project Central Commitment Letter

 

 

 

COMMITMENTS SCHEDULE

 

Initial Lenders  First Lien Facilities Commitment
Percentages
   Second Lien Term Facility Commitment
Percentages
 
CSAG   17.5%   0.0%
GS   17.5%   0.0%
BOM   10.0%   0.0%
Barclays   10.0%   0.0%
DBNY   10.0%   0.0%
Royal Bank   10.0%   0.0%
TDNY   10.0%   0.0%
WFB   10.0%   0.0%
Bank of America   5.0%   0.0%
Broad Street   0.0%   20.0000%
WSMP Holdings   0.0%   0.7188%
WSMP LP   0.0%   41.2780%
WSMP SLP   0.0%   4.7923%
WSMP LLC   0.0%   33.2109%
Total:   100%   100%

 

 

 

 

TRANSACTION SUMMARY

 

Project CENTRAL

 

Capitalized terms used but not defined in this Transaction Summary shall have the meanings set forth in the other Exhibits and Annexes (including the Definitions Annex) to the Commitment Letter to which this Transaction Summary is attached (the “Commitment Letter”) or in the Commitment Letter. In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Transaction Summary shall be determined by reference to the context in which it is used.

 

Central Merger Sub Inc., a Delaware corporation (“Merger Sub”), a direct or indirect wholly owned subsidiary of Central Parent LLC, a Delaware limited liability company (“Holdings”), each directly or indirectly formed at the direction of (or of funds advised by) Brookfield Capital Partners LLC and its affiliates (collectively with the funds, partnerships or other co-investment vehicles managed, advised or controlled thereby, the “Sponsor”) and certain limited partners thereof or other investors (which may include existing shareholders, board members, management and/or other rollover investors of the Target referred to below) (collectively with the Sponsor, the “Investors”), intend to acquire (the “Acquisition”), directly or indirectly, all of the outstanding shares of common stock of the entity previously identified to the Commitment Parties as “CENTRAL” (the “Target”), pursuant to the Acquisition Agreement referred to below. In connection therewith, it is intended that:

 

(a)    Pursuant to the Agreement and Plan of Merger dated as of the date of the Original Commitment Letter (together with the exhibits and schedules thereto, as amended, supplemented, otherwise modified, or consented to or waived, the “Acquisition Agreement”) by and among the Target, Holdings, as Parent, Merger Sub, as Merger Sub, Merger Sub will commence a tender offer to acquire all of the issued and outstanding shares of common stock of the Target and, upon and subject to the completion of the tender offer in accordance with the terms of the Acquisition Agreement, Merger Sub will be merged with and into the Target with the Target continuing after the merger as the surviving entity and a wholly-owned subsidiary of Holdings (the “Merger”).

 

(b)    The Investors will directly or indirectly make cash contributions to Holdings (or a parent company thereof) (with all such contributions that are made to the Lead Borrower to be in the form of (i) common equity, (ii) “qualified” preferred equity or (iii) other preferred equity or other instruments having terms reasonably acceptable to the Commitment Parties (any such equity or other instruments, together, “Permitted Equity”)). Such cash contributions shall be in an aggregate amount that, when taken together with all equity interests (including restricted stock or options) retained, rolled over or directly or indirectly invested in Permitted Equity of Holdings (or a parent company thereof) and all Permitted Equity of Holdings (or a parent company thereof) issued to, or otherwise directly or indirectly held or acquired by, any existing shareholders, board members and/or management of the Target (as modified in accordance with paragraph 1 of the Conditions Exhibit, together, the “Equity Contribution”) will be not less than 25% (the “Minimum Equity Percentage”) of the sum of (i) the aggregate principal amount of the Facilities funded on the Closing Date (excluding (A) the effects of any exercise of the “flex” provisions of the First Lien Fee Letter, including any amounts incurred or borrowed under the Facilities to fund any “flex” OID or fees, (B) amounts drawn under the Revolving Facility on the Closing Date for working capital purposes and/or purchase price adjustments, to fund Transaction Costs or to replace, backstop or cash collateralize existing letters of credit, bank guarantees, bankers’ acceptances and similar documents and instruments and (C) any letters of credit, bank guarantees, bankers’ acceptances and similar documents and instruments outstanding on the Closing Date) plus (ii) the Equity Contribution plus (iii) the Rollover Notes Amount (as defined below) minus (iv) the aggregate amount of cash on hand at the Target and its subsidiaries on the Closing Date; provided that, on the Closing Date, immediately after giving effect to the Acquisition, the Sponsor shall directly or indirectly, by contract or otherwise, control at least a majority of the outstanding voting equity interests of Holdings.

 

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(c)    Prior to, or substantially contemporaneously with, the initial fundings of the Facilities, (i) the principal, accrued and unpaid interest, fees, premium, if any, and other amounts (other than (x) obligations not then due and payable or that by their terms survive the termination thereof and (y) certain existing letters of credit, bank guarantees, bankers’ acceptances and similar documents and instruments outstanding under the Existing Credit Facility (as defined below) that on the Closing Date will be grandfathered into, or backstopped by, the Revolving Facility or cash collateralized in a manner satisfactory to the issuing banks thereof) under that certain Revolving Credit Agreement, dated as of May 24, 2021, among the Target, the borrowing subsidiaries of the Target party thereto from time to time, the lenders party thereto and Bank of America, N.A. as administrative agent (as amended, supplemented or otherwise modified from time to time prior to the date of the Original Commitment Letter, the “Existing Credit Facility”) will be repaid in full and all commitments to extend credit thereunder will be terminated and any security interests and guarantees in connection therewith shall be terminated and/or released (or arrangements for such repayment, termination and release shall have been made) and (ii)(A) the 4.50% Senior Notes due 2024 (the “Existing 4.50% Notes”) issued under that certain Indenture dated as of October 14, 2014 (as amended, supplemented or otherwise modified from time to time prior to the date of the Original Commitment Letter, the “4.50% Indenture”) among the Target, as issuer, the guarantors party thereto and U.S. Bank National Association, as trustee (in such capacity, the “4.50% Notes Trustee”), (B) the 4.875% Senior Notes due 2027 (the “Existing 4.875% Notes”) issued under that certain Indenture dated as of May 15, 2017 (as amended, supplemented or otherwise modified from time to time prior to the date of the Original Commitment Letter, the “4.875% Indenture”) among the Target, as issuer, the guarantors party thereto and U.S. Bank National Association, as trustee (in such capacity, the “4.875% Notes Trustee”) and (C) the 5.25% Senior Notes due 2029 (the “Existing 5.25% Notes” and, together with the Existing 4.50% Notes and the Existing 4.875%, collectively, the “Existing Notes”) issued under that certain Indenture dated as of May 15, 2019 (as amended, supplemented or otherwise modified from time to time prior to the date of the Original Commitment Letter, the “5.25% Indenture” and, collectively, the 4.50% Indenture and the 4.875% Indenture, collectively, the “Existing Indentures”) among the Target, as issuer, the guarantors party thereto and U.S. Bank National Association, as trustee (in such capacity, the “5.25% Notes Trustee” and, together with the 4.50% Notes Trustee and the 4.875% Notes Trustee, each, a “Trustee”), will in each case of (A), (B) and (C) either, at the Lead Borrower’s election, (x) be redeemed within 60 days after the Closing Date (with an irrevocable notice of redemption being delivered (and deposit of cash in an amount sufficient to redeem the Existing Notes in full being made) on or prior to the Closing Date), (y) be irrevocably defeased or satisfied and discharged on or prior to the Closing Date in accordance with the terms of the Existing Indentures or (z) be redeemed, repurchased and/or tendered subject to a change of control offer, tender offer, consent solicitation or other liability management transaction (including any such consent solicitation and/or liability management transaction that removes the lien covenant requiring such Existing Notes to be secured “equally and ratably” on the Closing Date in connection with the Transactions), the redemption, repurchase and/or tender in respect of which is commenced prior to the Closing Date and closes on the Closing Date (any Existing Notes that are not so redeemed, repurchased and/or tendered on the Closing Date (but excluding those referred to in clauses (x) and (y)), the “Rollover Notes”; the aggregate principal amount of Rollover Notes (if any) that remain outstanding on the Closing Date is referred to herein as the “Rollover Notes Amount”; any such Rollover Notes that are subject to a consent solicitation and/or other liability management transaction that successfully removes the requirement for such Rollover Notes to be secured “equally and ratably” with the First Lien Facilities are referred to herein as the “Unsecured Rollover Notesand the aggregate principal amount thereof, the “Unsecured Rollover Notes Amount; and any Rollover Notes other than any Unsecured Rollover Notes are referred to herein as the “Secured Rollover Notesand the aggregate principal amount thereof, the “Secured Rollover Notes Amount”); provided that any Secured Rollover Notes will be secured equally and ratably with (and shall have the same collateral and guarantees as) the First Lien Facilities to the extent required by the applicable Existing Indenture governing such Secured Rollover Notes (the transactions contemplated by the foregoing clauses (i) and (ii), together, the “Refinancing”). For the avoidance of doubt, letters of credit, bank guarantees, bankers’ acceptances and similar documents and instruments outstanding on the Closing Date no longer available to the Target or its subsidiaries may be backstopped or replaced by letters of credit, bank guarantees, bankers’ acceptances and similar documents and instruments issued under the Revolving Facility on the Closing Date or may be cash collateralized.

 

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(d)    All fees, premiums, expenses and other transaction costs incurred in connection with the Transactions (the “Transaction Costs”) will be paid.

 

(e)    Merger Sub will obtain the First Lien Term Facility and Revolving Facility as described in the First Lien Facilities Term Sheet (or, at the sole option of Merger Sub, (x) Permitted Equity in lieu of all or any portion of the First Lien Facilities or (y) first lien pari passu notes in lieu of all or any portion of the First Lien Term Facility).

 

(f)     The Borrower (as defined in the Second Lien Term Sheet) will obtain the Second Lien Term Facility as described in the Second Lien Term Sheet (or, at the sole option of Merger Sub, (x) Permitted Equity in lieu of all or any portion of the Second Lien Term Facility or (y) a replacement second lien term facility on terms not materially adverse to the Borrower (or its subsidiaries) (taken as a whole) than the Second Lien Term Facility as of the date hereof (provided that any such replacement second lien term facility (i) shall have a final maturity date not earlier than eight years after the Closing Date, (ii) shall not benefit from guarantees by any persons that are not “Loan Parties” with respect to the First Lien Facilities, (iii) shall not have a principal amount in excess of $865 million and (iv) shall be secured on a junior basis to the First Lien Facilities) in lieu of all of the Second Lien Term Facility).

 

The transactions described above are collectively referred to herein as the “Transactions”. For purposes of the Commitment Letter and the Fee and Closing Payment Letters, “Closing Date” shall mean the date of the initial funding of the Facilities.

 

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CONDITIONS EXHIBIT

 

PROJECT CENTRAL

Conditions

 

The availability and funding of each Facility on the Closing Date shall be subject solely to the satisfaction (or waiver by the Initial Lenders in respect of such Facility) of each of the following conditions applicable to such Facility (subject in all cases to the Limited Conditionality Provision). Capitalized terms used but not defined in this Conditions Exhibit shall have the meanings set forth in the other Exhibits and Annexes (including the Definitions Annex) to the Commitment Letter to which this Conditions Exhibit is attached (the “Commitment Letter”), in the Commitment Letter or, where applicable under paragraph 5 and paragraph 6 below, the Acquisition Agreement. In the case of any such capitalized term that is subject to multiple and differing definitions, the appropriate meaning thereof in this Conditions Exhibit shall be determined by reference to the context in which it is used.

 

1.                The Acquisition shall have been, or substantially concurrently with the initial fundings of the Facilities shall be, consummated in all material respects in accordance with the terms of the Acquisition Agreement, after giving effect to any modifications, amendments, consents or waivers thereto, other than those modifications, amendments, consents or waivers by you (or your affiliates) that are materially adverse to the interests of the Lenders in their capacities as such, unless consented to in writing by the Initial Lenders for the applicable Facility (such consent not to be unreasonably withheld, delayed or conditioned; provided that such Initial Lenders shall be deemed to have consented to such modification, amendment, consent or waiver (whether proposed or executed) unless they object thereto in writing within two business days of receipt of written notice of such modification, amendment, consent or waiver); it being understood and agreed that (a) any substantive change to the definition of Company Material Adverse Effect (as defined in the Acquisition Agreement) shall be deemed materially adverse, (b) any reduction in the purchase price of less than 20% or in accordance with the Acquisition Agreement (as in effect on the date of the Original Commitment Letter) (including pursuant to any purchase price and/or working capital (or similar) adjustment provision set forth in the Acquisition Agreement (as in effect on the date of the Original Commitment Letter)) shall be deemed not to be materially adverse (provided that the Equity Contribution is not reduced to less than the Minimum Equity Percentage), (c) any other reduction in the purchase price shall be deemed not to be materially adverse so long as such decrease is allocated first to reduce the Equity Contribution to the Minimum Equity Percentage, with any excess allocated to reduce the Equity Contribution, the First Lien Term Facility and the Second Lien Term Facility on a pro rata, dollar-for-dollar basis (provided that the Equity Contribution is not reduced to less than the Minimum Equity Percentage) and (d) any increase in the purchase price shall be deemed not to be materially adverse so long as such increase is funded by cash of the Target, an increase in the Equity Contribution or amounts available to be drawn under the Revolving Facility on the Closing Date or such increase is pursuant to any working capital and/or purchase price (or similar) adjustment provision set forth in the Acquisition Agreement (as in effect on the date of the Original Commitment Letter).

 

2.               With respect to the Facilities Documentation, (i) the execution and delivery by Holdings (if a party thereto), the Lead Borrower and, immediately after giving effect to the Acquisition, the other Guarantors of the applicable Facilities Documentation for such Facility to which such person is a party, which shall, in each case, be in all material respects in accordance with the terms of the Commitment Letter and the applicable Term Sheet, (ii) subject in all respects to the Limited Conditionality Provision and the Collateral and Guarantee Principles, the execution and delivery by Holdings (if a party thereto), the Lead Borrower and, immediately after giving effect to the Acquisition, the other Guarantors of all documents and instruments reasonably required to create and perfect the applicable Administrative Agent’s security interest in the Collateral in respect of such Facility and which shall, if applicable, be in proper form for filing and (iii) delivery to the applicable Administrative Agent of a customary borrowing notice and customary legal opinions, customary officer’s closing certificates, organizational documents, customary evidence of authorization and good standing certificates in the jurisdiction of organization (if applicable), in each case with respect to each Loan Party (to the extent applicable) and a solvency certificate substantially in the form of Annex I hereto from the chief financial officer (or other officer with reasonably equivalent duties) of Holdings (or, at the option of Holdings, a third party opinion as to the solvency of Holdings and its subsidiaries on a consolidated basis issued by a nationally recognized firm); provided, that (I) the scope and substance of the foregoing shall be consistent with the Limited Conditionality Provision and (II) none of the foregoing shall be required to include any representation or statement as to (x) the absence (or existence) of any default or event of default as of the Closing Date or (y) the accuracy of the Specified Acquisition Agreement Representations or the absence (or existence) of any “Company Material Adverse Effect” (as defined in the Acquisition Agreement).

 

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3.               Prior to, or substantially concurrently with, the initial fundings of the Facilities, the Refinancing shall be consummated and the Equity Contribution shall have been made substantially in the manner and in at least the amount set forth in the Transaction Summary (subject to adjustment pursuant to paragraph 1 above) to the extent not otherwise applied to the Transactions.

 

4.               The Specified Acquisition Agreement Representations shall be true and correct in all material respects as of the Closing Date solely to the extent required by the Limited Conditionality Provision and the Specified Representations shall be true and correct in all material respects as of the Closing Date (except in the case of any Specified Representation which expressly relates to a given date or period, such representation and warranty shall be true and correct in all material respects as of the respective date or for the respective period, as the case may be).

 

5.                Since the date of the Acquisition Agreement there shall not have been any Effect that has had, or would reasonably be expected to have, a Company Material Adverse Effect that is continuing at the scheduled Expiration Time and that results in a failure of a condition precedent to your (or your affiliates’) obligations to consummate the Acquisition pursuant to the terms of the Acquisition Agreement.

 

6.                The First Lien Lead Arrangers and the Initial GS Principal Investors shall have received, to the extent Holdings has received the same under the Acquisition Agreement, (a)(x) the audited consolidated balance sheets of the Target and its consolidated subsidiaries as of June 30, 2021 and 2020, and the related consolidated statements of operations, comprehensive income, stockholders’ (deficit) equity, and cash flows, for each of the three years in the period ended June 30, 2021 and (y) if the Closing Date occurs after September 30, 2022, the audited consolidated balance sheet of the Target and its consolidated subsidiaries as of June 30, 2022, and the related consolidated statements of operations, comprehensive income, stockholders’ (deficit) equity, and cash flows, for the fiscal year period then ending (in each case of this clause (a), together with the notes and schedules thereto) and (b)(x) the unaudited consolidated balance sheets of the Target and its consolidated subsidiaries as of December 31, 2021, and the related consolidated statements of operations, comprehensive income, stockholders’ (deficit) equity, and cash flows, for the fiscal quarter period then ended and for the portion of the fiscal year to date and (y) if the Closing Date occurs after May 10, 2022, the unaudited consolidated balance sheets of the Target and its consolidated subsidiaries as of March 31, 2022, and the related consolidated statements of operations, comprehensive income, stockholders’ (deficit) equity, and cash flows, for the fiscal quarter period then ending and for the portion of the fiscal year to date. The First Lien Lead Arrangers and the Initial GS Principal Investors hereby acknowledge receipt of the financial statements referred to in clause (a)(x) above and the financial statements referred in clause (b)(x) and further acknowledge that the conditions set forth in clauses (a)(x) and (b)(x) of this paragraph 6 are satisfied as of the Acceptance Date. It is understood and agreed that the condition set forth in this paragraph 6, (x) shall be satisfied by the filing of any of the foregoing financial statements on form 10-K and/or form 10-Q filed with the Securities and Exchange Commission within the specified time periods and (y) shall be deemed to have been delivered on the earliest date on which (i) the Target posts such documents, or provides a link thereto, on the Target’s website on the Internet; (ii) such documents are posted on the Target’s behalf on IntraLinks/IntraAgency or another website to which the Commitment Parties have access; or (iii) such financial statements and/or other documents are posted on the SEC’s website on the internet at www.sec.gov.

 

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7.              The First Lien Lead Arrangers and the Initial GS Principal Investors shall have received, to the extent Holdings has received the corresponding information described in paragraph 6 above under the Acquisition Agreement, an unaudited pro forma consolidated balance sheet and related unaudited pro forma statement of income of the Lead Borrower as of the last day of the most recently completed four-fiscal quarter period for which historical financial statements are provided pursuant to paragraph 6 above (if any), prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statement of income), which need not be prepared in compliance with Regulation S-X of the Securities Act of 1933, as amended, or include adjustments for purchase accounting (including adjustments of the type contemplated by Financial Accounting Standards Board Accounting Standards Codification 805: Business Combinations (formerly SFAS 141R), tax adjustments, deferred taxes or similar pro forma adjustments) (it being understood that any purchase accounting adjustments may be preliminary in nature and be based only on estimates and allocations determined by the Lead Borrower).

 

8.                Each Administrative Agent shall have received, at least two Business Days (as defined in the Acquisition Agreement) prior to the Closing Date, all documentation and other information about any Loan Party required by applicable regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the PATRIOT Act, and if the Lead Borrower qualifies as a “legal entity customer” under the “Beneficial Ownership Regulations” (31 CFR §1010.230), a Beneficial Ownership Certification in relation to the Lead Borrower, as is reasonably requested in writing by such Administrative Agent at least eleven Business Days (as defined in the Acquisition Agreement) prior to the Closing Date. “Beneficial Ownership Certification” means a certification regarding individual beneficial ownership solely to the extent required by 31 CFR §1010.230.

 

9.               All fees and closing payments required to be paid on the Closing Date pursuant to the Fee and Closing Payment Letters and reasonable out-of-pocket expenses required to be paid on the Closing Date pursuant to the Commitment Letter, to the extent, in the case of expenses, a reasonably detailed invoice has been delivered to the Lead Borrower at least three business days prior to the Closing Date (except as otherwise reasonably agreed by the Lead Borrower) shall have been paid (or shall be paid from or offset against the proceeds of the initial fundings under the Facilities).

 

10.             Without the prior consent of the First Lien Lead Arrangers, the Closing Date shall not have occurred prior to June 1, 2022; provided that in the event the Lead Borrower and First Lien Lead Arrangers shall agree to an earlier Closing Date, the GS Principal Investors shall have received 15 days prior notice thereof.

 

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ANNEX I TO CONDITIONS EXHIBIT

 

SOLVENCY CERTIFICATE

 

[Date]

 

I, [___________], certify that I am the duly appointed, qualified and acting chief financial officer (or other officer with reasonably equivalent duties) of [__], a [__] (“Holdings”), and, in such capacity and not in my individual capacity (and without personal liability), certify that based upon facts and circumstances as they exist as of the date hereof (and disclaiming any responsibility for changes in such facts and circumstances after the date hereof):

 

On the date hereof, after giving effect to the Transactions and the related transactions contemplated by the Facilities Documentation, Holdings and its subsidiaries, when taken as a whole on a consolidated basis, (a) have property with fair value greater than the total amount of their debts and liabilities, contingent, subordinated or otherwise (it being understood that the amount of contingent liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at such time, can reasonably be expected to become an actual or matured liability), (b) have assets with present fair salable value not less than the amount that will be required to pay their liability on their debts as they become absolute and matured, (c) will be able to pay their debts and liabilities, subordinated, contingent or otherwise, as they become absolute and matured and (d) are not engaged in business or a transaction, and are not about to engage in business or a transaction, for which they have unreasonably small capital.

 

The undersigned is familiar with the business and financial position of Holdings and its subsidiaries. In reaching the conclusions set forth in this Solvency Certificate, the undersigned has made such investigations and inquiries as the undersigned has deemed appropriate, having taken into account the nature of the particular business anticipated to be conducted by Holdings and its subsidiaries after consummation of the transactions contemplated by the Facilities Documentation.

 

I-1

 

 

Exhibit (d)(2)

 

Strictly Confidential

 

EXECUTION VERSION

 

CDK GLOBAL

 

January 25, 2022

 

Brookfield Capital Partners Llc 

250 Vesey Street, 15th Floor 

New York, New York 10281

 

In connection with the consideration by Brookfield Capital Partners LLC (“Recipient”, “you” or “your”) or one of your affiliates of a possible negotiated transaction (the “Possible Transaction”) with CDK Global, Inc. (together with its subsidiaries, the “Company”), the Company is prepared to make available to you certain information concerning the business, financial condition, operations, strategy, prospects, assets, liabilities and other confidential and proprietary information of the Company. In consideration for and as a condition to such information being furnished to you and your Representatives (as defined below), you agree that you and your Representatives will treat any information or data concerning the Company (whether prepared by the Company, its advisors or other Representatives or otherwise and irrespective of the form of communication) which has been or will be furnished, or otherwise made available, to you or your Representatives by or on behalf of the Company on or after the date hereof (collectively referred to as the “Confidential Information”) in accordance with the provisions of this letter agreement (this “Agreement”), and to take or abstain from taking certain other actions hereinafter set forth.

 

1.     Confidential Information. (a) The term “Confidential Information” shall be deemed to include that portion of all notes, memoranda, summaries, analyses, compilations, forecasts, data, studies, interpretations or other documents or materials prepared by you or your Representatives which use, contain, or reflect information furnished to you or your Representatives by or on behalf of the Company. The term “Confidential Information” does not include information that you can reasonably demonstrate (i) is or becomes generally available to the public other than as a result of a disclosure by you or your Representatives in breach hereof, (ii) was within your or your Representatives’ possession prior to it being furnished to you by or on behalf of the Company; provided that the source of such information was not known by you (acting reasonably) to be bound by a contractual, legal or fiduciary obligation of confidentiality to the Company with respect to such information, (iii) becomes available to you or your Representatives on a non-confidential basis from a source other than the Company or any of its Representatives; provided that such source is not known by you (acting reasonably) to be bound by a contractual, legal or fiduciary obligation of confidentiality to the Company with respect to such information, or (iv) has been or is subsequently independently conceived or developed by you or your Representatives without use of or reference to, in whole or in part, the Confidential Information and not otherwise in breach of this Agreement.

 

 

 

 

(b)Notwithstanding anything to the contrary herein, you shall only be permitted to disclose or reveal Confidential Information or Transaction Information (as defined below) to an Excluded Affiliate (as defined below) if the Company has provided its prior written consent thereto, in which case, such Excluded Affiliate shall be deemed your Representative hereunder; provided that Confidential Information or Transaction Information may be disclosed or revealed to any director, officer or employee of an Excluded Affiliate to the extent such individual is also a general (but not limited) partner, member, advisor, employee, director or officer of Recipient or your affiliates (a “dual hat individual”), has a need to know such information in connection with his/her role at Recipient or your affiliates and, in accordance with the terms hereof, such individual does not disclose such information to any other individual at any Excluded Affiliate (other than other “dual hat individuals”) or otherwise participates in any way in any decisions of any Excluded Affiliate as to any matters that are subject to any provision of this Agreement.

 

(c)For purposes of this Agreement:

 

(i)Representatives” shall mean:

 

(A)with respect to you: your affiliates and your and such affiliates’ general (but not limited) partners, members, managers, directors, officers, employees and professional advisors (including consultants, accountants and attorneys), in each case, that receive Confidential Information or Transaction Information from you or on your behalf; provided that: “Representatives” of you shall not include, without the prior written consent of the Company, (1) your Excluded Affiliates, (2) any actual or potential source of equity or debt financing or any actual or potential bidding or equity partner or (3) any investment banker, financial advisor or other person serving in a similar role; and

 

(B)with respect to the Company: the Company and its affiliates’ directors, officers, employees, agents, representatives, attorneys, accountants, financial advisors and other professional advisors;

 

(ii)the term “person” shall be broadly interpreted to include the media and any corporation, partnership, group, individual or other entity;

 

(iii)the term “affiliates” shall have the meaning given to it under the Securities Exchange Act of 1934, as amended (the “Exchange Act”); and

 

(iv)the term “Excluded Affiliate” shall mean (A) your and your affiliates' portfolio companies and (B) any of your affiliated investment funds’ portfolio companies.

 

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2.     Use and Disclosure of Confidential Information; Additional Agreements Between the Parties. (a) You hereby agree that (i) you and your Representatives shall use the Confidential Information solely for the purpose of evaluating, and participating in discussions with the Company regarding, negotiating and/or consummating a Possible Transaction and for no other purpose and (ii) for the period commencing upon the execution of this Agreement by both parties and ending on the second anniversary of the date of this Agreement (such period, as it may be extended by mutual written agreement of the parties, the “Confidentiality Period”), the Confidential Information will be kept confidential by you and your Representatives and that you and your Representatives will not disclose any of the Confidential Information to any third parties (including, without limitation, to any investment banker, financial advisor or other person serving in a similar role, any actual or potential source of equity or debt financing, any actual or potential bidding or equity partner or any Excluded Affiliates); provided that: (A) you may make any disclosure of such information to which the Company gives its prior written consent; (B) such information may only be disclosed to your Representatives who have a need to know such information for the sole purpose of evaluating, negotiating and/or consummating a Possible Transaction on your behalf and who are provided with a copy of this Agreement and are directed to comply with the applicable terms hereof to the same extent as if they were parties hereto as “Representatives” and (C) subject to paragraph 2(c), you may make disclosure of such information to the extent Legally Compelled (as defined below) to do so (provided that such requirement did not arise from discretionary acts by you or your Representatives in violation of this Agreement). In any event, you agree, at your sole expense, to (x) undertake reasonable precautions to safeguard and protect the confidentiality of the Confidential Information and Transaction Information (which shall be no less stringent than measures taken with respect to your own confidential and proprietary information and in any event no less than a reasonable degree of care, which standard shall satisfy this clause (x)), (y) be responsible for any breach of this Agreement by any of your Representatives, including, without limitation, any actions or inactions by your Representatives that would constitute a breach of the terms of this Agreement applicable to Representatives if such Representatives were parties hereto (it being understood that such responsibility shall be in addition to and not by way of limitation of any right or remedy the Company may have against your Representatives with respect to such breach) and (z) take all reasonable measures to restrain your Representatives from prohibited or unauthorized disclosure or use of the Confidential Information or Transaction Information in violation of this Agreement.

 

(b) In addition, you agree that, without the prior written consent of the Company, except as Legally Compelled (and provided that such requirement did not arise from discretionary acts by you or your Representatives that triggered such disclosure or requirement in violation of this Agreement and only in compliance with paragraph 2(c)), you and your Representatives will not disclose to any other person (other than your Representatives who have a need to know such information for the sole purpose of evaluating, negotiating and/or consummating a Possible Transaction on your behalf) the fact that the Company is considering a Possible Transaction, that this Agreement exists or the contents hereof, that the Confidential Information has been made available to you or your Representatives, that you or your Representatives are engaged in discussions with the Company with respect to the matters contemplated by this Agreement, that discussions, negotiations or investigations are taking place or have taken place concerning a Possible Transaction or any of the terms, conditions or other facts with respect thereto (including the status thereof) (all of the foregoing being referred to as “Transaction Information”). Without limiting the generality of the foregoing, you further agree that neither you nor any of your Representatives will (i) act as a broker for, or representative of, or as a joint bidder or co-bidder with, any other person with respect to a Possible Transaction or (ii) enter into any agreement, arrangement or understanding with any other person, including any investment banker, financial advisor or other person serving in a similar role, any actual or potential source of equity or debt financing or any actual or potential bidding or equity partner, regarding a Possible Transaction without, in each case, the prior written consent of the Company. In addition, in the event you are given prior written consent by the Company to enter into an agreement, arrangement or understanding with a debt financing source, you agree that you will not enter into any agreement, arrangement or understanding with any debt financing source which may reasonably be expected to limit, restrict, restrain or otherwise impair in any manner, directly or indirectly, the ability of such debt financing source to provide financing or other assistance to any other party considering a transaction with the Company. The Company will not disclose your identity (by name or identifiable description) in connection with a Possible Transaction, except as Legally Compelled.

 

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(c) In the event that you or any of your Representatives are requested or required by applicable law or regulation, governmental, regulatory or self-regulatory authority or by deposition, interrogatories, requests for information or documents in legal or administrative proceedings, subpoena, civil investigative demand or other similar legal process (“Legally Compelled” and “legal” and “legally” have a correlative meaning) to disclose any of the Confidential Information or Transaction Information, you shall provide the Company with prompt (and in any event prior to any disclosure) written notice to the extent legally permitted of the existence, terms and circumstances of any such request or requirement (including a list of any Confidential Information or Transaction Information that you intend (or any of your Representatives intend) to disclose) so that the Company may seek a protective order or other appropriate remedy (at the Company’s sole expense) and/or waive compliance with the provisions of this Agreement. If, in the absence of a protective order or other remedy or the receipt of a waiver by the Company, you or any of your Representatives are nonetheless, upon advice of your inside or outside counsel, Legally Compelled to disclose Confidential Information or Transaction Information, you or your Representatives may, without liability hereunder, disclose only that portion of the Confidential Information or Transaction Information which such inside or outside counsel advises you is legally required to be disclosed; provided that (i) you exercise (and cause your Representatives to exercise) commercially reasonable efforts to preserve the confidentiality of the Confidential Information and Transaction Information and (ii) such disclosure was not caused by or resulted from a previous disclosure by you or your Representatives in violation of this Agreement. In no event will you or any of your Representatives oppose action by the Company to obtain a protective order or other relief to prevent the disclosure of the Confidential Information and Transaction Information or to obtain reliable assurance that confidential treatment will be afforded the Confidential Information and Transaction Information and, if the Company seeks such an order, you agree to (and shall cause your Representatives to) cooperate as the Company shall reasonably request at the Company’s expense. Notwithstanding the foregoing, you and your Representatives shall not be required to provide notice or seek consent in order to disclose Confidential Information in response to a routine audit or investigation conducted by a governmental or regulatory authority that does not primarily relate to the Company, the Confidential Information, the Transaction Information or the Possible Transaction.

 

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3. Destruction of Confidential Information. Promptly (and in any event within fifteen (15) business days) after receiving a written demand from the Company or one of its Representatives (which may be made at any time in the Company’s sole discretion and for any reason or for no reason), you will destroy or erase (including, without limitation, expunging all such Confidential Information or Transaction Information from any computer, word processor or other device containing such information) all Confidential Information or Transaction Information (and all copies, reproductions, summaries, analyses or extracts thereof or based thereon) furnished to you or your Representatives by or on behalf of the Company, and you shall promptly deliver within fifteen (15) business days of such written demand a confirmation in writing (email sufficient) from an authorized officer supervising the destruction that such destruction has occurred; provided that you and your Representatives may retain any Confidential Information or Transaction Information to the extent required to comply with legal or regulatory requirements or established document retention policies (and, to the extent such Confidential Information or Transaction Information is retained electronically, ordinary access thereto shall be limited to information technology personnel in connection with their information technology duties or legal or compliance personnel), and you and your Representatives will not be required to delete computer records created pursuant to automatic archiving and back-up procedures which cannot reasonably be deleted. Notwithstanding the destruction or retention of the Confidential Information or Transaction Information, you and your Representatives will continue to be bound by your obligations of confidentiality, use restrictions and other obligations hereunder.

 

4. Inquiries. You agree that Morgan Stanley (the “Financial Advisor”) has responsibility for arranging appropriate contacts for due diligence in connection with the Possible Transaction and that (i) all communications regarding a Possible Transaction, (ii) requests for additional information and requests for facility tours, management or similar meetings in connection with a Possible Transaction, Confidential Information or Transaction Information and (iii) discussions or questions regarding procedures with respect to a Possible Transaction will be submitted or directed only to the Financial Advisor or such other person as may be expressly designated by the Financial Advisor or Company in writing (including by email), and not to any other Representative of the Company. You further agree that, without the prior written consent of the Company, neither you nor any of your Representatives shall, directly or indirectly, initiate, solicit or maintain, or cause to be initiated, solicited or maintained, contact with any officer, director, employee, stockholder, creditor, affiliate, supplier, distributor, customer, provider, agent, regulator or other commercial counterparty of the Company or any subsidiary of the Company (x) concerning any Confidential Information, any Transaction Information or any Possible Transaction or (y) regarding the Company or its business, financial condition, operations, strategy, prospects, assets or liabilities; provided, however, that the foregoing shall not prohibit you or your Representatives from making any contacts with such persons in the ordinary course of business unrelated to the Possible Transaction or from conducting general market diligence so long as such general market diligence does not identify the Company to the exclusion of others within the Company’s industry and no Confidential Information or Transaction information is disclosed in connection therewith.

 

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5. No Representations or Warranties; No Agreement. You understand and acknowledge that neither the Company nor any of its Representatives make any representation or warranty, express or implied, as to the accuracy or completeness of the Confidential Information or Transaction Information, including, without limitation, any projections, estimates, budgets or information relating to the assets, liabilities, results of operations, condition, customers, suppliers or employees of the Company. You agree that neither the Company nor any of its Representatives shall have any obligation or liability to you or to any of your Representatives on any basis (including, without limitation, in contract, tort, under federal or state securities law or otherwise) relating to or resulting from the use of the Confidential Information or Transaction Information (including but not limited to any obligation to update any Confidential Information or any Transaction Information). You agree that only those representations or warranties which are made in a final definitive agreement regarding a Possible Transaction, subject to such limitations and restrictions as may be specified therein (a “Definitive Transaction Agreement”), when, as and if executed, will be relied on by you and have any legal effect. You and your Representatives agree not to make or facilitate in the making of any claims whatsoever against the Company or any of its Representatives with respect to or arising out of: (i) a Possible Transaction, as a result of this Agreement, any other written or oral expression or otherwise; (ii) the participation of you and your Representatives in evaluating a Possible Transaction; (iii) the review or use of any Confidential Information or any Transaction Information or any errors therein or omissions therefrom; or (iv) any action taken or any inaction occurring in reliance on the Confidential Information or any Transaction Information, except and solely to the extent as may be included in any Definitive Transaction Agreement. Each party agrees that unless and until a Definitive Transaction Agreement between the Company and you (or your affiliate(s)) has been executed and delivered, none of the parties hereto or their affiliates will be under any legal obligation of any kind whatsoever with respect to such a transaction by virtue of this Agreement, any other written or oral expression or otherwise, except for the rights and obligations specifically agreed to herein. You further acknowledge and agree that the Company reserves the right, in its sole discretion, to conduct the process leading up to a Possible Transaction, if any, as the Company and its Representatives determine, including, without limitation, by negotiating with any third party and entering into a preliminary or definitive agreement with a third party, rejecting any and all proposals made by you or any of your Representatives with regard to a Possible Transaction, and terminating discussions and negotiations with you at any time and for no reason and that you have no right to participate in any Possible Transaction whether by virtue of this Agreement, any other written or oral expression or otherwise. Furthermore, nothing contained in this Agreement nor the furnishing of Confidential Information shall be construed as granting or conferring any rights by license or otherwise in any intellectual property of the Company, except for the limited right of use specifically set forth herein. All right, title and interest in the Confidential Information shall remain with the Company.

 

6.      No Waiver of Privilege. To the extent the Confidential Information includes materials subject to work product, attorney-client or similar privilege, the Company is not waiving, and shall not be deemed to have waived or diminished, its attorney work-product protections, attorney-client privileges or similar protections and privileges as a result of disclosing any Confidential Information to you or any of your Representatives.

 

7.      No Solicitation. In consideration of and as a condition to the Confidential Information and Transaction Information being furnished to you, you hereby agree that, for a period of one year from the date hereof, neither you nor any of your affiliates who are your Representatives will, directly or indirectly, solicit, interfere with or endeavor to entice away, offer to employ or employ (including as an independent contractor) any of the current senior-level officers or other employees at the Vice President level or above of the Company who became known to you or with whom you had contact in connection with the Possible Transaction so long as they are employed by the Company without obtaining the prior written consent of the Company; provided that nothing herein shall restrict you or any of your affiliates from (i) making any general solicitation for employment, including by use of advertisements in the media or through recruiting firms, that is not specifically directed at employees of the Company and (ii) hiring any such employee who responds to any such general solicitation or who first contacts you or your Representatives regarding employment without any solicitation in violation of this paragraph 7.

 

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8. Standstill. In consideration of and as a condition to the Confidential Information being furnished to you, you hereby further agree that, without the prior written consent of the board of directors of the Company or except as expressly agreed to in writing by the parties hereto, for a period of one year from the date hereof, you will not and will cause your affiliates who are your Representatives not to, acting alone or as part of a group, directly or indirectly: (i) acquire or offer or agree to acquire (or propose, agree or seek permission, to acquire) or otherwise obtain an economic interest in, by purchase or otherwise, any right to direct the voting or disposition of, or any other right with respect to, any equity securities of the Company (or any direct or indirect rights, options or other securities convertible into or exercisable or exchangeable for such equity securities or any obligations measured by the price or value of any shares of capital stock of the Company, including without limitation any swaps or other derivative arrangements (“Derivative Securities”)), in each case, whether or not any of the foregoing may be obtained immediately or only after the passage of time or upon the satisfaction of one or more conditions (whether or not within the control of such party) pursuant to any agreement, arrangement or understanding (whether or not in writing) and whether or not any of the foregoing would give rise to “beneficial ownership” (as defined under Rule 13d-3 promulgated under the Exchange Act), and, in each case, whether or not any of the foregoing is obtained by means of borrowing of securities or operation of any Derivative Security, or any significant portion of the assets, properties or indebtedness of the Company; (ii) make or participate in any “solicitation” of “proxies” (as such terms are used in the proxy rules of the Securities and Exchange Commission) or consents or undertakings to vote, or to seek to influence or control, in any manner whatsoever, the voting of any securities of the Company; (iii) make any statement or proposal to the board of directors of the Company (which would legally be required to be publicly disclosed), the Company’s Representatives or any of its stockholders with respect to, or make any public announcement with respect to, or solicit or submit a proposal or offer for, directly or indirectly, any merger, business combination, recapitalization, reorganization, asset purchase, tender offer, exchange offer or other similar extraordinary transaction involving the Company or any of its securities, assets or properties; (iv) form, join or in any way participate in a “group” as defined in Section 13(d)(3) of the Exchange Act in connection with any of the foregoing; (v) otherwise seek representation on or to influence or control, in any manner whatsoever, alone or in concert with others, the management, board of directors or policies of the Company; (vi) make any public proposal or publicly disclose any intention, plan or arrangement inconsistent with any of the foregoing; (vii) demand a copy of the Company’s record of security holders, stock ledger list or any other books or records of the Company, (viii) advise, assist, direct or encourage, directly or indirectly, any other person in connection with any of the foregoing; (ix) take any action that could reasonably be expected to require the Company or you to make a public announcement regarding any of the events described in this paragraph 8; (x) contest the validity of this Agreement or make, initiate, take or participate in any demand, action (legal or otherwise) or proposal to amend, waive or terminate this paragraph 8; (xi) request the Company to amend or waive any provision of this paragraph 8, or make any public announcement with respect to the restrictions of this paragraph 8 or (xii) advise, assist or encourage, or direct any person to advise, assist or encourage any other person, in connection with any of the foregoing. You hereby represent and warrant that, as of the date of this Agreement, you do not possess any economic interest, voting right or other right with respect to any security (including Derivative Securities) of the Company. Notwithstanding anything to the contrary herein, you shall be entitled to make confidential proposals to the board of directors of the Company (or any committee thereof) regarding any of the matters set forth in clauses (i) or (iii) of this paragraph 8, but only so long as such request or proposal would not reasonably be expected to require public disclosure by the Company or you. Notwithstanding the foregoing, this paragraph 8 shall be of no further force and effect if (A) the Company enters into a definitive agreement with a person or “group” of persons involving the direct or indirect acquisition of all or a majority of the Company’s equity securities or all or substantially all of the Company’s assets, other than in connection with an internal restructuring transaction involving only the Company, one or more of its subsidiaries and/or any holding company formed for the purpose of such transaction, including any spin-off transaction involving any division or operating segment of the Company, or (B) a tender or exchange offer is commenced that, if consummated, would result in all or a majority of the Company’s equity securities being owned by persons other than the Company or current holders of the Company’s equity securities and the board of directors of the Company fails to recommend within ten (10) business days from the date of commencement of such offer that its stockholders reject such offer. Nothing shall prohibit acquisitions of debt securities; provided that such debt is not acquired or held for the purpose of influencing control of the Company.

 

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9.      Material Non-Public Information. You acknowledge and agree that you are aware (and that your Representatives are aware or, upon providing any Confidential Information or Transaction Information to such Representatives, will be advised by you) that Confidential Information and Transaction Information being furnished to you may contain material non-public information regarding the Company and that the United States securities laws generally prohibit any persons who have such material, non-public information from purchasing or selling securities of the Company on the basis of such information or from communicating such information to any person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities on the basis of such information. You will not (and you will direct your Representatives to not), directly or indirectly, use any Confidential Information or Transaction Information in violation of any United States federal or state securities laws. Nothing herein shall constitute an admission by either party that any Confidential Information, Transaction Information or other such information in fact contains material non-public information concerning the Company.

 

10.   Remedies. It is further understood and agreed that any breach of this Agreement by you or any of your Representatives would result in irreparable harm to the Company, that money damages would not be a sufficient remedy for any such breach of this Agreement and that the Company shall be entitled to equitable relief, including injunction and specific performance, as a remedy for any such breach or threatened breach and that neither you nor your Representatives shall oppose the granting of such relief. Such relief shall be available without the obligation to prove any damages underlying such breach or threatened breach. You further agree to waive, and to use your commercially reasonable efforts to cause your Representatives to waive, any requirement for the securing or posting of any bond in connection with any such remedy. Such remedies shall not be deemed to be the exclusive remedies for a breach by you of this Agreement but shall be in addition to all other remedies available at law or equity to the Company. In the event of a breach of any obligations under this Agreement by you or your Representatives that becomes known to you, you shall, promptly following the discovery of such breach, give notice to the Company of the nature of such breach and, upon consultation with the Company, take all reasonably necessary steps to limit the extent of such breach.

 

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11.    Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Delaware, without regard to the conflict of law provisions thereof. You hereby irrevocably and unconditionally consent to submit to the exclusive jurisdiction of the Courts of Chancery of the State of Delaware (or, if under applicable law exclusive jurisdiction over such matters is vested in federal courts, any court of the United States of America located in the State of Delaware) (collectively, the “Delaware Courts”) for any lawsuits, actions or other proceedings arising out of or relating to this Agreement and agree not to commence any such lawsuit, action or other proceeding except in such courts. You further agree that service of any process, summons, notice or document by mail to your address set forth above shall be effective service of process for any lawsuit, action or other proceeding brought against you in any such court. Service made in such manner, to the fullest extent permitted by applicable law, shall have the same legal force and effect as if served upon such party personally within the State of Delaware. Nothing herein shall be deemed to limit or prohibit service of process by any other manner as may be permitted by applicable law. You hereby irrevocably and unconditionally waive any objection to the laying of venue of any lawsuit, action or other proceeding arising out of or relating to this Agreement in the Delaware Courts, and hereby further irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such lawsuit, action or other proceeding brought in any such court has been brought in an inconvenient forum. ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LAWSUIT, CLAIM OR OTHER PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IS EXPRESSLY AND IRREVOCABLY WAIVED.

 

12.   Authority to Enter into Agreement. Each party hereby represents and warrants to the other party that this Agreement has been duly authorized, executed and delivered by one of your officers and is enforceable in accordance with its terms.

 

13.   Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto regarding the subject matter hereof, and supersedes all negotiations and agreements, oral or written, made prior to the execution hereof.

 

14.   Waiver of Conflict. In connection with a Possible Transaction, the Company has retained the law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP (“Company Counsel”) as company counsel. By participating in the process for the Possible Transaction and executing this Agreement, and notwithstanding the fact that Company Counsel may have represented, and may currently represent, you or any of your Excluded Affiliates or other Representatives unrelated to a Possible Transaction, you hereby consent (on your behalf and on behalf of your Excluded Affiliates) to such representation by Company Counsel of the Company and, if applicable, are agreeing to waive any actual or potential conflict of interest that Company Counsel may have as a result of Company Counsel’s representation of the Company in the Possible Transaction. You agree (on your behalf and on behalf of your Excluded Affiliates) that Company Counsel is a third party beneficiary of the matters set forth in this paragraph 14. In addition, you hereby acknowledge that your consent and wavier under this paragraph 14 is voluntary and informed, and that you have obtained independent legal advice with respect to this consent and waiver.

 

15.    Assignment. This Agreement and the rights and obligations herein may not be assigned or otherwise transferred, in whole or in part, by either party hereto without the written consent of the other party, provided, however, that the Company reserves the right to

assign all of its rights, powers and privileges under this Agreement (including, without limitation, the right to enforce all of the terms of this Agreement) to any person who enters into a transaction with the Company that is similar to a Possible Transaction involving the sale of all or substantially all of the Company’s stock or consolidated assets.

 

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16.   No Modification. No provision of this Agreement can be waived, modified or amended without the prior written consent of the parties hereto, which consent shall specifically refer to the provision to be waived, modified or amended and shall explicitly make such waiver, modification or amendment. It is understood and agreed that no failure or delay by either party in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder.

 

17.   Counterparts. This Agreement may be executed in counterparts, each such counterpart shall be deemed an original and all such counterparts shall together constitute one instrument.

 

18.    Severability. If any provision of this Agreement is found to violate any statute, regulation, rule, order or decree of any governmental authority, court, agency or exchange, such invalidity shall not be deemed to affect any other provision hereof or the validity of the remainder of this Agreement, and there shall be substituted for the invalid provision a substitute provision that shall as nearly as possible achieve the intent of the invalid provision.

 

19.   Term. This Agreement shall expire upon the expiration of the Confidentiality Period; provided, that, any liability for breach of this Agreement prior to such termination shall survive such termination.

 

20.   Notwithstanding anything else in this Agreement, (i) this Agreement shall not apply to or in any way bind your Representatives or your or your affiliates’ portfolio companies that do not actually receive Confidential Information or Transaction Information from you or on your behalf, and (ii) receipt of Confidential Information or Transaction Information shall not be imputed to any portfolio company of yours or your affiliates solely by virtue of the fact that a director, officer or employee of yours or your affiliates that serves as a director (or on any other governing body) of such portfolio company has knowledge of Confidential Information or Transaction Information. For the avoidance of doubt, this paragraph does not modify the proviso in Section 1(b) of this Agreement.

 

21.   The Company acknowledges that you, your affiliates and your and their respective existing and future portfolio companies (collectively, the “Brookfield Group”), as applicable, may operate in the same industry and, from time to time, compete for the same business opportunities, and may maintain business relationships with the same persons. Accordingly, the Company agrees that nothing contained herein shall restrict or otherwise limit the Brookfield Group’s right to directly or indirectly pursue acquisitions, dispositions or financing or other business opportunities or compete for the same business for, by, with or through any person or otherwise maintain or initiate business relationships with any person; provided that, you shall, and shall direct your Representatives to, comply with the other provisions of this Agreement and neither you nor your Representatives shall disclose or use the Confidential Information or Transaction Information in connection with such activities in violation of this Agreement. For purposes of clarification, this section shall not be construed to modify or amend the confidentiality and non-disclosure restrictions herein.

 

[Remainder of Page Intentionally Left Blank]

 

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Strictly Confidential

 

EXECUTION VERSION

 

Please confirm your agreement with the foregoing by signing and returning one copy of this letter to the undersigned, whereupon this Agreement shall become a binding agreement between you and the Company.

 

  Very truly yours,
   
  CDK GLOBAL, INC.
   
  By:   /s/ Lee Brunz
    Name: Lee Brunz
    Title: Vice President and Secretary

 

Accepted and agreed as of the date first written above:  
   
BROOKFIELD CAPITAL PARTNERS LLC  
   
By:   /s/ Kristen L. Haase  
  Name: Kristen L. Haase  
  Title: Senior Vice President & Secretary  

 

 

 

 

Exhibit (d)(3)
EXECUTION VERSION

 

April 7, 2022

 

Central Parent LLC
c/o Brookfield Capital Partners LLC
250 Vesey Street

New York, NY 10281

Attn: Dave Gregory
  Doug Bayerd

 

Email: dave.gregory@brookfield.com
  doug.bayerd@brookfield.com
   
Re: Equity Financing

 

Ladies and Gentlemen:

 

This letter agreement (this “Agreement”) sets forth the commitments of Brookfield Asset Management, Inc. a corporation organized under the laws of Ontario, and Brookfield Capital Partners VI L.P., a Cayman Islands exempted limited partnership (collectively, the “Investors” and each, an “Investor”), subject to the terms and conditions contained herein, to purchase, directly or indirectly, certain equity interests of Central Parent LLC, a limited liability company formed under the laws of Delaware (“Parent”). It is contemplated that, pursuant to the Agreement and Plan of Merger (as amended, restated, supplemented or otherwise modified from time to time, the “Merger Agreement”), dated as of the date hereof, by and among CDK Global, Inc. a Delaware corporation (the “Company”), Parent and Central Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Parent, Parent will acquire all of the shares of common stock, par value $0.01, of the Company (the “Transaction”). Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Merger Agreement.

 

1.       Commitments. Each Investor hereby commits, on a several (not joint and several) basis and subject to the terms and conditions set forth herein, that, at or prior to the Closing, it shall (a) purchase or contribute, or shall cause the purchase or contribution by a Permitted Assignee (as defined below) of, directly or indirectly through one or more intermediate entities, equity securities of Parent with an aggregate purchase price not to exceed the amount set forth opposite its name on Annex A (with respect to each Investor, its “Commitment”), solely for the purposes of (i) funding the amounts payable under Section 2.2 and 2.3 of the Merger Agreement and (ii) paying any and all of the fees and expenses payable by Parent pursuant to the Merger Agreement; provided that the amount of the Commitments to be funded under this Agreement may be reduced to the extent (and only to the extent) that, at the Closing, Parent does not require the full amount of the Commitments, taken together with the Debt Financing and any other source of funds for Parent, to fund the amounts described in the foregoing clauses (i) and (ii). The amount of the Commitments to be funded under this Agreement may be reduced in the manner agreed to by the Investors solely to the extent that Parent does not require all of the equity financing with respect to which the Investors have made the Commitments in order to consummate the transactions contemplated by the Merger Agreement (including, without limitation, in order to satisfy the conditions set forth in the Debt Commitment Letter); provided, that the amount of the Commitment may not be reduced if such reduction would reasonably be expected to adversely affect the timely consummation of the transactions contemplated by the Merger Agreement. Notwithstanding anything to the contrary in this Agreement, in no event shall the cumulative liability of each Investor under this Agreement exceed the amount of its respective Commitment.

 

 

 

 

2.       Conditions. Each Investor’s Commitment shall be subject to (a) the execution and delivery of the Merger Agreement by the Company, (b) all conditions in Section 6.1 of the Merger Agreement and all conditions set forth in Annex I to the Merger Agreement (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver (to the extent permitted under the Merger Agreement) of those conditions) being satisfied or waived, (c) the Debt Financing having been funded in full in accordance with the terms thereof at the Closing, or the Financing Entities having confirmed in writing that the Debt Financing will be funded in full at the Closing if the Equity Financing is funded at the Closing, and (d) the substantially simultaneous consummation of the Transaction in accordance with the terms of the Merger Agreement.

 

3.       Guarantee. Concurrently with the execution and delivery of this Agreement, the Investors are executing and delivering to the Company a Guarantee with respect to the obligations of Parent under the Merger Agreement (the “Guarantee”). Other than with respect to (a) the Company’s rights and remedies under Section 5(b) hereof, (b) the Company’s rights and remedies against Parent and Merger Sub pursuant to the Merger Agreement, (c) the Company’s rights and remedies against Brookfield Capital Partners LLC pursuant to that certain nondisclosure agreement, dated as of January 25, 2022 (the “Confidentiality Agreement”), by and between the Company and Brookfield Asset Management, Inc., (d) the Company’s right to assert any Guarantee Claim or Merger Agreement Claim (each as defined in the Guarantee) against any of the Investors or the Guarantor Affiliates (as defined in the Guarantee) against which such Guarantee Claim or Merger Agreement Claim may be asserted pursuant to Section 4 of the Guarantee and (e) against any Guarantor or any Guarantor Affiliates party to a Contract with the Company or any Company Related Party, as applicable, in accordance with the terms of such Contract (collectively, the “Retained Claims”), the Company’s remedies against the Investors under the Guarantee shall be, and are intended to be, the sole and exclusive direct or indirect remedies available to the Company against either Investor or any other Guarantor Affiliate (against which a Guarantee Claim or Merger Agreement Claim may be asserted pursuant to Section 4 of the Guarantee) in respect of any liabilities or obligations arising under, or in connection with, the Merger Agreement or the transactions contemplated thereby or the negotiation thereof, including in the event Parent breaches its obligations under the Merger Agreement, whether or not such breach is caused by any Investor’s breach of its obligations under this Agreement.

 

4.       Parties in Interest; Third Party Beneficiaries; Limited Recourse.

 

(a)       The parties hereto hereby agree that their respective agreements and obligations set forth herein are solely for the benefit of the other party hereto and its respective successors and permitted assigns, in accordance with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person other than the parties hereto and their respective successors and permitted assigns any benefits, rights or remedies under or by reason of, or any rights to enforce or cause Parent to enforce, the obligations set forth herein; provided that (i) the Company is an express third-party beneficiary hereof and shall have the enforcement rights provided in Section 5(b) and (ii) each of the Guarantor Affiliates is an express third-party beneficiary hereof solely for purposes of Section 3.

 

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(b)       Notwithstanding anything that may be expressed or implied in this Agreement, the Merger Agreement, the Confidentiality Agreement, the Guarantee or any document or instrument delivered contemporaneously herewith or therewith, and notwithstanding the fact that either of the Investors may be a partnership or limited liability company, Parent, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges that (i) no Person other than the Investors and Parent shall have any obligation (whether of an equitable, contractual, tort, statutory or other nature) hereunder, (ii) it shall have no rights of recovery against, and no recourse hereunder or under any documents or instruments delivered in connection herewith shall be had against, any Guarantor Affiliate or any Permitted Assignee, whether by or through attempted piercing of the corporate, partnership or limited liability company veil, by or through a claim by or on behalf of Parent against any Guarantor Affiliate, by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any statute, regulation or other applicable law or otherwise, and (iii) no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any Guarantor Affiliate as such for any obligations of the Investors under this Agreement or any documents or instruments delivered in connection herewith or in respect of any oral representations made or alleged to have been made in connection herewith or therewith or for any claim (whether at law or equity or in tort, contract or otherwise) based on, in respect of, or by reason of such obligations or their creation. Parent hereby covenants and agrees that it shall not institute, and shall cause its Affiliates and Representatives not to institute, any proceeding or bring any other claim arising under, or in connection with, this Agreement, the Merger Agreement, the other Financing Letters or the transactions contemplated hereby or thereby, against the Investors or any Guarantor Affiliate, except for claims solely against the Investors under this Agreement or the Guarantee.

 

5.       Enforceability. This Agreement may only be enforced by (a) Parent or (b) the Company, pursuant to and solely in accordance with the terms of, and subject to the satisfaction of all conditions set forth in, Section 8.15 of the Merger Agreement and this Agreement, solely for the purpose of seeking specific performance of Parent’s right to cause each Investor to fund or contribute, as applicable, its Commitment in accordance with the terms hereof (solely to the extent that Parent can enforce the Commitment pursuant to the terms hereof), and not for any other purpose (including any claim for monetary damages). For the avoidance of doubt, except as set forth in clause (b) of the immediately preceding sentence, creditors of Parent shall have no right to enforce this Agreement or cause Parent to enforce this Agreement. Notwithstanding anything to the contrary contained in this Agreement or any other document, the obligations of the Investors under this Agreement shall be several and not joint.

 

6.       No Modification; Entire Agreement. This Agreement may not be amended or otherwise modified without the prior written consent of Parent and the Investors; provided that any amendment or modification of this Agreement that is adverse to the Company shall also require the prior written consent of the Company. Together with the Merger Agreement, the Confidentiality Agreement (and any confidentiality agreements between the Company and the Investors and/or their respective Affiliates), the exhibits and schedules to the Merger Agreement, the Company Disclosure Letter, the Financing Letters and the Guarantee, this Agreement constitutes the sole agreement, and supersedes all prior agreements, understandings and statements, written or oral, between the Investors or any of their respective Affiliates, on the one hand, and Parent or any of its Affiliates, on the other, with respect to the transactions contemplated hereby. Except as expressly permitted in Section 11, no transfer of any rights or obligations hereunder shall be permitted without the prior written consent of Parent, the Investors and the Company. Any transfer in violation of the preceding sentence shall be null and void.

 

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7.       Governing Law; Jurisdiction; Waiver of Jury Trial.

 

(a)       This Agreement and all disputes or controversies arising out of or relating to this Agreement and the transactions contemplated hereby, including the applicable statute of limitations, shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflicts of law rules of such State.

 

(b)       The parties hereto agree that any proceeding seeking to enforce any provision of, or based on any matter arising out of, relating to or in connection with, this Agreement or the transactions contemplated by this Agreement shall be brought in the Delaware Courts. Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Delaware Courts in respect of any legal or equitable proceeding arising out of or relating to this Agreement or the transactions contemplated by this Agreement, or relating to enforcement of any of the terms of this Agreement, and hereby waives, and agrees not to assert, as a defense in any such proceeding, any claim that it is not subject personally to the jurisdiction of such court, that the proceeding is brought in an inconvenient forum, that the venue of the proceeding is improper or that this Agreement or the transactions contemplated by this Agreement may not be enforced in or by such courts. Each party hereto agrees that any decision rendered by the Delaware Courts in accordance with this Section 7 shall be enforceable by any court of competent jurisdiction, including by injunctive relief or order for specific performance. Each party hereto agrees that notice or the service of process in any proceeding arising out of or relating to this Agreement or the transactions contemplated by this Agreement shall be properly served or delivered if delivered in the manner contemplated by Section 8.7 of the Merger Agreement or in any other manner permitted by law as follows:

 

If to the Investors or Parent, to:

 

c/o Brookfield Capital Partners LLC

250 Vesey Street

New York, NY 10281

  Attention: Dave Gregory
    Doug Bayerd
  Email: dave.gregory@brookfield.com
    doug.bayerd@brookfield.com

 

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

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

  Attention: Leonard Kreynin
    Cheryl Chan
  Email: leonard.kreynin@davispolk.com
    cheryl.chan@davispolk.com

 

(c)       EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS CONTAINED IN THIS SECTION 7(c).

 

8.       Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by all of the other parties hereto. Until and unless each party has received a counterpart hereof signed by each other party hereto, this Agreement shall have no effect and no party shall have any right or obligation hereunder (whether by virtue of any other oral or written agreement or other communication). Signatures to this Agreement transmitted by facsimile transmission, by electronic mail in PDF form, or by any other electronic means designed to preserve the original graphic and pictorial appearance of a document, will be deemed to have the same effect as physical delivery of the paper document bearing the original signatures.

 

9.       Confidentiality. This Agreement shall be treated as confidential and is being provided to Parent solely in connection with the transactions contemplated by the Merger Agreement. This Agreement may not be used, circulated, quoted or otherwise referred to in any document, except with the prior written consent of each of the Investors or to enforce the terms of this Agreement. Notwithstanding the foregoing, and without prejudice to any other provision of this Agreement, this Agreement may be (a) provided to (i) the Company and (ii) the advisors of the Company, together with the advisors of Parent; provided each such party agrees to treat this Agreement as confidential; (b) referred to in the Merger Agreement; and (c) disclosed as may be required by applicable law, rule or regulation of any governmental authority, regulatory agency, court or national stock exchange or to enforce the terms of this Agreement (provided that, to the extent practicable, the Company will provide the Investors an opportunity to review such required disclosure in advance of such disclosure being made).

 

10.       Termination. The obligation of each Investor under or in connection with this Agreement will terminate automatically and immediately upon the earliest to occur of (a) the Closing (but only if the Transaction has been consummated in accordance with the terms of the Merger Agreement) (at which time all such obligations shall be discharged), (b) the valid termination of the Merger Agreement by Parent pursuant to its terms or the valid termination of the Merger Agreement by the Company pursuant to its terms and (c) the Company or any of its Affiliates, Representatives or stockholders (each, a “Company Related Party”) directly or indirectly asserting, filing or otherwise commencing a proceeding asserting any claim, other than a Guarantee Claim or Merger Agreement Claim to the extent such claim may be asserted in accordance with the Guarantee or any other Retained Claim, against any Investor, Parent or any Guarantor Affiliate under the Merger Agreement, this Agreement, the Confidentiality Agreement, the Guarantee, the Debt Commitment Letters or any other agreement or document entered into in connection with the transactions completely hereby or thereby; provided that in the event of an assertion of a claim other than any Retained Claim (an “Other Claim”) the Investors shall provide written notice to the Company specifying in reasonable detail such Other Claim and this Commitment shall only terminate pursuant to this clause (c) if such Other Claim is not withdrawn within ten (10) days of the Company’s receipt of such written notice.

 

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11.       Assignment. The Commitments evidenced by this Agreement shall not be assignable, in whole or in part, by Parent without each Investor’s prior written consent and the Company’s prior written consent, and the granting of such consent in a given instance shall be solely in the discretion of such Investor (in the case of the Investor) and shall not be unreasonably withheld, conditioned or delayed in the case of the Company, and, if granted, shall not constitute a waiver of this requirement as to any subsequent assignment. Each Investor may allocate and/or assign all or a portion of its rights and obligations under this Agreement, including its obligations to fund or contribute, as applicable, its respective Commitment, to one or more of its Affiliates or affiliated investment funds, any of such Affiliates’ or affiliated investment funds’ limited partners, managed entities and/or co-investors, or any of their respective Affiliates or affiliated investment funds (any such Person, a “Permitted Assignee”); provided that no such assignment shall relieve such Investor of its obligations hereunder, including its obligation to fund or contribute, as applicable, its Commitment, except that such Investor’s obligation to fund or contribute, as applicable, its Commitment shall be reduced dollar for dollar by any amounts actually funded or contributed to Parent by such Permitted Assignee. Any purported assignment of this Agreement or the Commitments in contravention of this Section 11 shall be void.

 

12.       Representations and Warranties. Each Investor hereby represents and warrants, on a several (not joint and several) basis and solely as to itself, to Parent that (a) it has requisite power and authority to execute, deliver and perform this Agreement, (b) the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby (i) have been duly authorized by all necessary corporate action on the part of such Investor and (ii) do not conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time, or both) under, any law, regulation or rule, or any order of, or any restriction imposed by, any court or other Governmental Authority applicable to such Investor, (c) this Agreement constitutes a valid and legally binding obligation of such Investor, enforceable against such Investor in accordance with its terms (except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or similar Applicable Laws affecting the enforcement of creditors’ rights generally or by general principles of equity) and (d) such Investor has (and will have, for so long as the Commitment remains in effect) the financial capacity and sufficient funds to pay and perform its obligations under this Agreement.

 

[Remainder of the page intentionally left blank]

 

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  Sincerely,
   
  BROOKFIELD ASSET MANAGEMENT INC.
   
  By: /s/ Cyrus Madon
    Name: Cyrus Madon
    Title: Managing Partner and Chief Executive Officer
   
  BROOKFIELD CAPITAL PARTNERS VI L.P.

 

By:Brookfield Capital Partners VI GP LLC, its general partner

 

By:Brookfield Capital Partners VI Officer GP LLC, its sole member

 

  By: /s/ Luke Ricci
    Name: Luke Ricci
    Title: Vice President, Investments

 

[Signature Page to Equity Commitment Letter]

 

 

 

 

Agreed to and accepted:

 

CENTRAL PARENT LLC

 

By: /s/ David Gregory  
  Name: David Gregory  
  Title: Managing Partner  

 

[Signature Page to Equity Commitment Letter]

 

 

 

 

Annex A

Commitments

 

Investor  Commitment 
Brookfield Asset Management Inc.  $1,508,000,000.00 
Brookfield Capital Partners VI L.P.  $2,000,000,000.00 
Total  $3,508,000,000.00 

 

 

 

 

 

 

Exhibit (d)(4)

EXECUTION VERSION 

 

LIMITED GUARANTEE

 

THIS LIMITED GUARANTEE, dated as of April 7, 2022, 2022 (this “Limited Guarantee”), is made by Brookfield Asset Management, Inc. a corporation organized under the laws of Ontario, and Brookfield Capital Partners VI L.P., a Cayman Islands exempted limited partnership (each a “Guarantor” and collectively the “Guarantors”), in favor of CDK Global, Inc., a Delaware corporation (the “Company”). Reference is hereby made to that certain Agreement and Plan of Merger, dated on or about the date hereof (as the same may be amended, modified or restated in accordance with the terms thereof, the “Merger Agreement”), by and among the Company, Central Parent LLC, a Delaware limited liability company (“Parent”), and Central Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of Parent. Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Merger Agreement.

 

1.                   Limited Guarantee. To induce the Company to enter into the Merger Agreement, each Guarantor hereby irrevocably and unconditionally guarantees to the Company (on a several (and not joint and several) basis) the due and punctual payment by Parent to the Company of such Guarantor’s respective percentage as set forth opposite its name in Annex 1 (for each such Guarantor, its “Guaranteed Percentage”) of (i) the Parent Termination Fee on the terms and subject to the conditions set forth in Section 7.6(b) of the Merger Agreement (the “Reverse Termination Fee Obligations”) and (ii) all of the reimbursement, indemnification or payment obligations of Parent under the Merger Agreement (including any reimbursement or indemnification obligations pursuant to Section 5.10(a) and 5.10(f) and any interest or other amounts payable pursuant to Section 7.6(c)) when required to be paid by Parent pursuant to and in accordance with the Merger Agreement (the “Other Obligations” and, together with the Reverse Termination Fee Obligations, the “Guaranteed Obligations”); provided, that notwithstanding anything to the contrary set forth in this Limited Guarantee, the Merger Agreement or any other agreement contemplated hereby or thereby, (a) the Company and the Guarantors agree that in no event shall the aggregate liability of the Guarantors hereunder exceed (x) $596,000,000 less (y) the amount of Guaranteed Obligations actually paid on behalf of Parent to the Company (such amount, the “Liability Limitation”) and (b) in no event shall each Guarantor’s maximum aggregate liability under this Limited Guarantee exceed such Guarantor’s Guaranteed Percentage of the Liability Limitation, less the amount of Guaranteed Obligations actually paid on behalf of Parent to the Company on behalf of such Guarantor (the “Guarantor Cap” with respect to such Guarantor), and that the Guarantors shall in no event be required to pay, in the aggregate, more than the Liability Limitation or the Guarantor Cap with respect to such Guarantor under or in respect of this Limited Guarantee, or otherwise have any liability relating to, arising out of or in connection with the Merger Agreement and the transactions contemplated thereby or any other circumstance, other than as contemplated in that certain equity commitment letter entered into by each Guarantor in connection with the Merger Agreement (the “Equity Commitment Letter”). The Guarantors shall, upon the written request of the Company (a “Performance Demand”), promptly and in any event within eight (8) Business Days, pay such Guaranteed Obligations in full (subject to the Liability Limitation and the Guarantor Cap). Notwithstanding anything to the contrary contained in this Limited Guarantee or any other document, the obligations of the Guarantors under this Limited Guarantee shall be several and not joint.

 

2.                   Terms of Limited Guarantee.

 

(a)                This Limited Guarantee is one of payment, not collection, and a separate action or actions may be brought and prosecuted against the Guarantors to enforce this Limited Guarantee up to the Liability Limitation and, with respect to each Guarantor, up to such Guarantor’s Guarantor Cap, irrespective of whether any action is brought against Parent or any other Person, or whether Parent or any other Person are joined in any such action or actions.

 

 

 

 

(b)                Except as otherwise provided herein and without amending or limiting the other provisions of this Limited Guarantee (including Section ‎‎6 hereof), the liability of the Guarantors under this Limited Guarantee shall, to the fullest extent permitted under applicable law, be absolute and unconditional irrespective of, and each Guarantor hereby expressly waives to the fullest extent permitted by law any defense now or in the future arising by reason of:

 

(i)             the value, genuineness, regularity, illegality or enforceability of the Merger Agreement or any other agreement or instrument referred to herein, including this Limited Guarantee (other than the invalidity of the Merger Agreement arising from any inaccuracy of Section 4.3 of the Merger Agreement);

 

(ii)             any release or discharge of any obligation of Parent contained in the Merger Agreement to the extent resulting from any change in the corporate existence, structure or ownership of Parent, or any insolvency, bankruptcy, reorganization or other similar proceeding affecting Parent or any of their assets;

 

(iii)            any duly-executed and delivered amendment or modification of the Merger Agreement, or change in the manner, place or terms of payment or performance, or any change or extension of the time of payment or performance of, renewal or alteration of, any Guaranteed Obligation, any escrow arrangement or other security therefor, any liability incurred directly or indirectly in respect thereof, or any duly-executed amendment or waiver of or any consent to any departure from the terms of the Merger Agreement or the documents entered into in connection therewith;

 

(iv)            the existence of any claim, set-off or other right that the Guarantors may have at any time against Parent or the Company, whether in connection with any Guaranteed Obligation or otherwise;

 

(v)             the adequacy of any other means the Company may have of obtaining repayment of any of the Guaranteed Obligations;

 

(vi)            the addition, substitution or release of any Person now or hereafter liable with respect to the Guaranteed Obligations or otherwise interested in the transactions contemplated by the Merger Agreement;

 

(vii)           the failure or delay on the part of the Guarantors to assert any claim or demand or to enforce any right or remedy against Parent, Merger Sub, Guarantor or any other Person interested in the transactions contemplated by the Merger Agreement;

 

(viii)          the right by statute or otherwise to require the Guarantors to institute suit against Parent, Merger Sub, Guarantor or any of their respective Affiliates or to exhaust any rights and remedies which the Guarantors have or may have against Parent, Merger Sub, Guarantor or any of their respective Affiliates; or

 

(ix)            any other act or omission that may or might in any manner or to any extent vary the risk of the Guarantors or otherwise operate as a discharge of the Guarantors as a matter of law or equity (other than payment of the Guaranteed Obligations, subject to the Liability Limitation and, with respect to each Guarantor, such Guarantor’s Guarantor Cap); provided, that notwithstanding any other provision of this Limited Guarantee to the contrary, the Company hereby agrees that the Guarantors may assert, as a defense to, or release or discharge of, any payment or performance by the Guarantors under this Limited Guarantee, any claim, set-off, deduction, defense or release that Parent could assert against the Company under the terms of, or with respect to, the Merger Agreement that would relieve each of Parent of its obligations under the Merger Agreement.

 

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(c)               The Guarantors hereby waive any and all notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of or proof of reliance by the Company upon this Limited Guarantee or acceptance of this Limited Guarantee. Without expanding the obligations of the Guarantors hereunder, the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred in reliance upon this Limited Guarantee, and all dealings between Parent or the Guarantors, on the one hand, and the Company, on the other, shall likewise be conclusively presumed to have been had or consummated in reliance upon this Limited Guarantee. The Guarantors acknowledge that they will receive substantial direct and indirect benefits from the transactions contemplated by the Merger Agreement and that the waivers set forth in this Limited Guarantee are knowingly made in contemplation of such benefits. Except as expressly provided herein, when pursuing its rights and remedies hereunder against the Guarantors, the Company shall be under no obligation to pursue such rights and remedies it may have against Parent or any other Person for the Guaranteed Obligations or any right of offset with respect thereto, and any failure by the Company to pursue such other rights or remedies or to collect any payments from Parent or any such other Person or to realize upon or to exercise any such right of offset, and any release by the Company of Parent or any such other Person or any right of offset, shall not relieve the Guarantors of any liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Company.

 

(d)                The Company shall not be obligated to file any claim relating to any Guaranteed Obligation in the event that Parent becomes subject to a bankruptcy, reorganization or similar proceeding, and the failure of the Company to so file any claim shall not affect the Guarantors’ obligations hereunder. In the event that any payment to the Company in respect of any Guaranteed Obligation hereunder is rescinded or must otherwise be returned for any reason whatsoever, the Guarantors shall remain liable hereunder with respect to the Guaranteed Obligation as if such payment had not been made so long as this Limited Guarantee has not been terminated.

 

3.                   Waiver of Acceptance, Presentment, etc. Subject to the proviso in Section 2(b)(ix), the Guarantors hereby expressly waive any and all rights or defenses arising by reason of any law which would otherwise require any election of remedies by the Company. The Guarantors waive promptness, diligence, notice of the acceptance of this Limited Guarantee and of any Guaranteed Obligations, presentment, demand for payment, notice of non-performance, default, dishonor and protest, notice of the incurrence of any Guaranteed Obligations and all other notices of any kind (other than notices to be provided in accordance with Section 12 hereof or Section 8.7 of the Merger Agreement), all defenses which may be available by virtue of any valuation, stay, moratorium law or other similar law now or hereafter in effect, any right to require the marshalling of assets of Parent or any other Person interested in the transactions contemplated by the Merger Agreement, and all suretyship defenses generally (other than breach by the Company of this Limited Guarantee).

 

4.                   Sole Remedy.

 

(a)                The Company acknowledges and agrees that, as of the date hereof, Parent has no assets, other than their respective rights under the Merger Agreement and the agreements contemplated thereby, including the Equity Commitment Letter. Except as specifically contemplated by this Limited Guarantee and the Equity Commitment Letter, the Company acknowledges and agrees that no funds are expected to be contributed to Parent, and that, except for rights against Parent to the extent expressly provided in Section 8.15 of the Merger Agreement and subject to all of the terms, conditions and limitations herein and therein, the Company shall not have any right to cause any assets to be contributed to Parent by the Guarantors, any Guarantor Affiliate (as defined below) or any other Person, other than the Equity Commitment Letter.

 

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(b)                The Guarantors shall not have any obligation or liability to any Person relating to, arising out of or in connection with this Limited Guarantee other than as expressly set forth herein and in the Equity Commitment Letter. The Company further agrees that it has no remedy, recourse or right of recovery against, or contribution from, and no personal liability shall attach to, (i) any former, current or future, direct or indirect director, officer, employee, agent or Affiliates of the Guarantors, (ii) any lender or prospective lender, lead arranger, arranger, agent or representative of or to Parent, (iii) any former, current or future, direct or indirect holder of any securities or any equity interests of any kind of the Guarantors, Parent (whether such holder is a limited or general partner, member, stockholder or otherwise), or (iv) any former, current or future assignee of the Guarantors, Parent or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder, Affiliate, controlling person, representative or assignee of any of the foregoing, in each case, other than Parent, Merger Sub, the Guarantors and any assignee of the obligations of Parent, Merger Sub or the Guarantors arising from the Retained Claims (those Persons described in the foregoing clauses (i), (ii), (iii) and (iv), together, with any other Non-Recourse Parent Party, but excluding Parent, Merger Sub, the Guarantors or any assignee of the obligations of Parent, Merger Sub or the Guarantors arising from the Retained Claims, being referred to herein collectively as “Guarantor Affiliates”), through Guarantor, Parent or otherwise, whether by or through attempted piercing of the corporate veil or similar action, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute, regulation or applicable law, by or through a claim by or on behalf of Guarantor, Parent against the Guarantor, any Guarantor Affiliates, Parent or otherwise in respect of any liabilities or obligations relating to, arising out of or in connection with, this Limited Guarantee, the Equity Commitment Letter and the Confidentiality Agreement, except, in each case, for (v) its rights against the Guarantors under this Limited Guarantee, (w) its rights against Parent under, and in accordance with, the terms and conditions of the Merger Agreement, (x) its rights and remedies against Brookfield Capital Partners LLC pursuant to that certain nondisclosure agreement, dated as of January 25, 2022 (the “Confidentiality Agreement”), by and between the Company and Brookfield Asset Management, Inc., (y) its rights and remedies against the Guarantors pursuant to the Equity Commitment Letter and (z) any rights the Company or any of its Affiliates have against any of Guarantor, Parent, Merger Sub or any Guarantor Affiliate pursuant to the terms of any Contract to which such Guarantor, Parent, Merger Sub or such Guarantor Affiliate, respectively, is a party (collectively, clauses (v) through (z), the “Retained Claims”); provided, that in the event any Guarantor (i) consolidates with or merges with any other Person and is not the continuing or surviving entity of such consolidation or merger or (ii) transfers or conveys all or a substantial portion of its properties and other assets to any Person such that the sum of such Guarantor’s remaining net assets plus uncalled capital is less than the Liability Limitation (less amounts paid under this Limited Guarantee prior to such event), then, and in each such case, the Company may seek recourse, whether by the enforcement of any judgment or assessment or by any legal or equitable proceeding or by virtue of any applicable law, against such continuing or surviving entity or such Person (in either case, a “Successor Entity”), as the case may be, but only to the extent of the unpaid liability of the applicable Guarantor hereunder up to the amount of the Guaranteed Obligations for which such Guarantor is liable, as determined in accordance with this Limited Guarantee. Except for Guarantee Claims, Merger Agreement Claims (each as defined below) and any Retained Claims, recourse against the Guarantors and any Successor Entity under this Limited Guarantee and the Equity Commitment Letter shall be the sole and exclusive remedy of the Company and all of its Affiliates and Subsidiaries against the Guarantors and any Guarantor Affiliate in respect of any liabilities or obligations arising under, or in connection with, the Merger Agreement or the transactions contemplated thereby, and such recourse shall be subject to the limitations described herein and therein.

 

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(c)                The Company hereby covenants and agrees that it shall not institute, and shall cause its Affiliates not to institute, any proceeding or bring any other claim arising under, or in connection with, the Merger Agreement, this Limited Guarantee, Equity Commitment Letter, Confidentiality Agreement or, in each case, the transactions contemplated hereby or thereby, against the Guarantors or any Guarantor Affiliate except for (i) claims by the Company against the Guarantors and any Successor Entity under and in accordance with this Limited Guarantee (“Guarantee Claims”), (ii) claims by the Company against Parent under and in accordance with the Merger Agreement (“Merger Agreement Claims”) and (iii) the Retained Claims, and the Company hereby, on behalf of itself and its Affiliates (and to the extent permitted by law, its Representatives), hereby releases the Guarantors and each Guarantor Affiliate from and with respect to any and all claims, known or unknown, now existing or hereafter arising, under, or in connection with, the Merger Agreement, this Limited Guarantee or, in each case, the transactions contemplated thereby or otherwise relating thereto, whether by or through attempted piercing of the corporate (or limited liability company or partnership) veil, by or through a claim by or on behalf of a Guarantor or Parent or any other Person against the Guarantors or any Guarantor Affiliate, or otherwise under any theory of law or equity, in each case, except for Guarantee Claims, the Merger Agreement Claims and the other Retained Claims.

 

(d)                For all purposes of this Limited Guarantee, a Person shall be deemed to have pursued a claim against another Person if such first Person brings a legal action against such Person, adds such other Person to an existing legal proceeding, other than such actions as are expressly contemplated and permitted in the Merger Agreement and the other agreements contemplated hereby.

 

5.                   Subrogation. The Guarantors will not exercise against Parent any rights of subrogation or contribution, whether arising by contract or operation of law (including, without limitation, any such right arising under bankruptcy or insolvency Laws) or otherwise, by reason of any payment by any of them pursuant to the provisions of Section 1 unless and until the Guaranteed Obligations have been indefeasibly paid in full.

 

6.                   Termination. This Limited Guarantee shall terminate upon, and the Guarantors shall not have any further liability or obligation under this Limited Guarantee from and after, the earliest of: (a) the Effective Time, (b) the termination of the Merger Agreement by mutual written consent of Parent and the Company pursuant to Section 7.1 thereof, (c) the termination of the Merger Agreement by the Company pursuant to Section 7.2(b) thereof, (d) subject to the Liability Limitation and the respective Guarantor Caps, the payment by the Guarantors of all amounts payable with respect to the Guaranteed Obligations after they become due and payable, (e) the date that is seventy-five (75) days following termination of the Merger Agreement in accordance with its terms (other than terminations for which clauses (b) or (c) applies), unless prior to the expiration of such seventy-five (75) day period (i) the Company shall have delivered a written notice with respect to any of the Guaranteed Obligations or (ii) the Company shall have commenced a legal proceeding against the Guarantors, Parent alleging the Parent Termination Fee is due and owing, or that Parent are liable for any other Other Obligations under the Merger Agreement or against the Guarantors that amounts are due and owing from the Guarantors pursuant to Section 1, in which case this Limited Guarantee shall survive solely with respect to amounts so alleged to be owing; provided, that with respect to the foregoing clause (e), if the Merger Agreement has been terminated, such notice has been provided and such legal proceeding has been commenced, the Guarantors shall have no further liability or obligation under this Limited Guarantee from and after the earliest of (x) a final, non-appealable order of a court of competent jurisdiction in accordance with Section 14 hereof determining that the Guarantors do not owe any amount under this Limited Guarantee and (y) a written agreement among the Guarantors and the Company that specifically references this Section 6(e) in which the Company acknowledges that the obligations and liabilities of the Guarantors pursuant to this Limited Guarantee are terminated, and (f) the Company or any of its controlled Affiliates commences a legal proceeding seeking to impose liability upon any Guarantor in excess of the Liability Limitation or in excess of the applicable Guarantor Cap with respect to any Guarantor, as applicable, or otherwise challenges any limit on the liability of the Guarantors hereunder, or makes any claim arising under, or in connection with, the Merger Agreement, this Limited Guarantee or, in each case, the transactions contemplated thereby, other than a Guarantee Claim, a Merger Agreement Claim or other Retained Claim (in the event of any of the actions described in this clause (f), the obligations and liabilities of the Guarantors under this Limited Guarantee shall terminate ab initio and be null and void); provided, that in the event of an assertion of a claim other than any Guarantee Claim, Merger Agreement Claim or Retained Claim (an “Other Claim”) the Guarantors shall provide written notice to the Company specifying in reasonable detail such Other Claim and this Limited Guarantee shall only terminate pursuant to this Section 6(f) if such Other Claim is not withdrawn within ten (10) days of the Company’s receipt of such written notice.

 

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7.                   Continuing Guarantee. Unless terminated pursuant to the provisions of Section 6, this Limited Guarantee is a continuing one and shall remain in full force and effect until the indefeasible payment and satisfaction in full of the Guaranteed Obligations, shall be binding upon the Guarantor, its successors and assigns, and any Successor Entity, and shall inure to the benefit of, and be enforceable by, the Company and its permitted successors, transferees and assigns. All obligations to which this Limited Guarantee applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon.

 

8.                   Entire Agreement. This Limited Guarantee and the Merger Agreement constitute the entire agreement and supersede all prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

 

9.                   Amendment; Waivers, etc. No amendment, modification or discharge of this Limited Guarantee, and no waiver hereunder, shall be valid or binding unless set forth in writing and duly executed by the party against whom enforcement of the amendment, modification, discharge or waiver is sought. Any such waiver shall constitute a waiver only with respect to the specific matter described in such writing and shall in no way impair the rights of the party granting such waiver in any other respect or at any other time. The waiver by any of the parties hereto of a breach of or a default under any of the provisions of this Limited Guarantee or a failure to or delay in exercising any right or privilege hereunder, shall not be construed as a waiver of any other breach or default of a similar nature, or as a waiver of any of such provisions, rights or privileges hereunder. The rights and remedies herein provided are cumulative and none is exclusive of any other, or of any rights or remedies that any party may otherwise have at law or in equity.

 

10.               No Third Party Beneficiaries. Except for the provisions of this Limited Guarantee which reference Guarantor Affiliates (each of which shall be for the benefit of and enforceable by each Guarantor Affiliate), the parties hereby agree that their respective representations, warranties and covenants set forth herein are solely for the benefit of the other parties hereto, in accordance with and subject to the terms of this Limited Guarantee, and this Limited Guarantee is not intended to, and does not, confer upon any person other than the parties hereto and any Guarantor Affiliate any rights or remedies hereunder, including the right to rely upon the representations and warranties set forth herein.

 

11.               Counterparts. This Limited Guarantee may be executed by facsimile or other means of electronic transmission and in one or more counterparts, and by the different parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

 

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12.               Notices. All notices, requests, claims, demands, waivers and other communications required or permitted to be given under this Limited Guarantee shall be in writing and shall be deemed given when received if delivered personally; when transmitted if transmitted by facsimile or by electronic mail (with written confirmation of transmission); the business day (as such term is defined in the Merger Agreement) after it is sent, if sent for next day delivery to a domestic address by overnight courier (providing proof of delivery) to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

(a)           if to the Company,

 

CDK Global, Inc.
1950 Hassell Road
Hoffman Estates, IL 60169

  Attention: Brian Krzanich
Lee Brunz
  Email: brian.krzanich@cdk.com
lee.brunz@cdk.com

 

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

 

Paul, Weiss, Rifkind, Wharton & Garrison LLP
1285 Avenue of the Americas
New York, NY 10019

  Attention: Scott A. Barshay
Kyle T. Seifried
Email:sbarshay@paulweiss.com
kseifried@paulweiss.com



if to the Guarantors,

 

c/o Brookfield Capital Partners LLC

250 Vesey Street

New York, NY 10281

  Attention: Dave Gregory
Doug Bayerd
  Email: dave.gregory@brookfield.com
doug.bayerd@brookfield.com

 

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

 

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, New York 10017

  Attention: Leonard Kreynin
Cheryl Chan
  Email: leonard.kreynin@davispolk.com
cheryl.chan@davispolk.com

 

or, in each case, at such other address as may be specified in writing to the other party.

 

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13.               Governing Law. Section 8.4 (Governing Law) of the Merger Agreement is incorporated by reference herein mutatis mutandis.

 

14.               Consent to Jurisdiction, etc. Subject to Section 15 below, Section 8.5 (Jurisdiction) of the Merger Agreement is incorporated by reference herein mutatis mutandis.

 

15.               Waiver of Jury Trial. Section 8.6 (Waiver of Jury Trial) of the Merger Agreement is incorporated by reference herein mutatis mutandis.

 

16.               Representations and Warranties. Each Guarantor hereby represents and warrant with respect to itself to the Company that: (a) it is duly organized and validly existing under the laws of its jurisdiction of organization, (b) it has all limited partnership power and authority to execute, deliver and perform this Limited Guarantee, (c) the execution, delivery and performance of this Limited Guarantee by such Guarantor has been duly and validly authorized and approved by all necessary partnership action, and no other proceedings or actions on the part of such Guarantor is necessary therefor, (d) this Limited Guarantee has been duly and validly executed and delivered by it and constitutes a valid and legally binding obligation of it, enforceable against such Guarantor in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors, (e) such Guarantor has uncalled capital commitments or access to funds equal to or in excess of its Guarantor Cap and its limited partners or other investors have and will continue to have until the termination of this Limited Guarantee the obligation to fund such capital, (f) the execution, delivery and performance by such Guarantor of this Limited Guarantee do not and will not (i) violate the organizational documents of such Guarantor, (ii) violate any applicable law or order, or (iii) result in any violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancelation or acceleration of any obligation, any contract to which such Guarantor is a party, in any case, for which the violation, default or right would be reasonably likely to prevent or materially impede, interfere with, hinder or delay the consummation by such Guarantor of the transactions contemplated by this Limited Guarantee on a timely basis and (g) it has and will continue to have until the termination of this Limited Guarantee the financial capacity to pay and perform all of its obligations under this Limited Guarantee, and all funds necessary to fulfill the Guaranteed Obligations under this Limited Guarantee (subject to the Liability Limitation and the applicable Guarantor Cap) shall be available to such Guarantor for as long as this Limited Guarantee shall remain in effect.

 

17.               No Assignment. Neither the Guarantors nor the Company may assign their respective rights, interests or obligations hereunder to any other person (except by operation of law) without the prior written consent of the Company (in the case of an assignment by the Guarantor) or the Guarantors (in the case of an assignment by the Company) except that (a) Guarantor may assign all or a portion of its rights, interest or obligations hereunder to one or more Affiliates and (b) if a portion of Guarantor’s commitment under the Equity Commitment Letter is assigned in accordance with the terms thereof, then a corresponding portion of the Guaranteed Obligations hereunder may be assigned to the same assignee; provided that any such assignment will not relieve Guarantor of its obligations under this Limited Guarantee.

 

18.               Severability. If any provision, including any phrase, sentence, clause, section or subsection, of this Limited Guarantee is invalid, inoperative or unenforceable for any reason, such circumstances shall not have the effect of rendering such provisions in question invalid, inoperative or unenforceable in any other case or circumstance, or of rendering any other provision herein contained invalid, inoperative, or unenforceable to any extent whatsoever; provided, that this Limited Guarantee may not be enforced without giving effect to the limitation of the amount payable hereunder to the Liability Limitation provided in Section 1 hereof and to the provisions of Section 4 and Section 6. No party shall assert, and each party shall cause its respective Affiliates not to assert, that this Limited Guarantee or any part hereof is invalid, illegal or unenforceable.

 

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19.               Headings. The headings contained in this Limited Guarantee are for convenience purposes only and will not in any way affect the meaning or interpretation hereof.

 

20.               Relationship of the Parties; Several Liability. Each party acknowledges and agrees that (a) this Limited Guarantee is not intended to, and does not, create any agency, partnership, fiduciary or joint venture relationship between or among any of the parties hereto and neither this Limited Guarantee nor any other document or agreement entered into by any party hereto relating to the subject matter hereof shall be construed to suggest otherwise and (b) the obligations of the Guarantors under this Limited Guarantee are solely contractual in nature. In no event shall Parent or the Guarantors be considered an “Affiliate”, “security holder” or “representative” of the Company for any purpose of this Limited Guarantee.

 

*   *   *   *   *

 

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IN WITNESS WHEREOF, the undersigned have executed and delivered this Limited Guarantee as of the date first written above.

 

  BROOKFIELD ASSET MANAGEMENT INC.

 

  By: /s/ Cyrus Madon
    Name: Cyrus Madon
    Title: Managing Partner and Chief Executive Officer

 

  BROOKFIELD CAPITAL PARTNERS VI L.P.

 

By:Brookfield Capital Partners VI GP LLC, its general partner

 

By:Brookfield Capital Partners VI Officer GP LLC, its sole member

 

  By: /s/ Luke Ricci
    Name: Luke Ricci
    Title: Vice President, Investments

 

 

 

 

  CDK GLOBAL, INC.

 

  By: /s/ Brian Krzanich
  Name: Brian Krzanich
  Title: Chief Executive Officer

 

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ANNEX 1

 

 

Guarantor  Guaranteed Percentage 
Brookfield Asset Management Inc.   42.9875%
Brookfield Capital Partners VI L.P.   57.0125%

 

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Exhibit 107

EX-FILING FEES

 

Calculation of Filing Fee Tables

SCHEDULE TO

(Rule 14d-100)

CDK GLOBAL, INC.

(Name of Subject Company (Issuer))

CENTRAL MERGER SUB INC.

(Name of Filing Person (Offeror))

a wholly owned subsidiary of

CENTRAL PARENT LLC

(Name of Filing Person (Parent of Offeror))

Table 1 - Transaction Value

 

   Transaction
Valuation*
   Fee rate   Amount of
Filing Fee**
 
Fees to Be Paid  $6,600,439,216    0.0000927   $611,860.72 
Fees Previously Paid  $0.00        $0.00 
Total Transaction Valuation*  $6,600,439,216           
Total Fees Due for Filing            $611,860.7153 
Total Fees Previously Paid            $0.00 
Total Fee Offsets             0.00 
Net Fee Due            $611,860.72 

* Estimated for purposes of calculating the filing fee only. The transaction valuation was calculated as the sum of (i) 116,699,802 outstanding shares of common stock, par value $0.01 per share, of CDK Global, Inc. (“CDK” and such shares, the “Shares”) multiplied by the offer price of $54.87, (ii) 4,825 Shares issuable pursuant to outstanding options with an exercise price of $21.72, multiplied by the offer price of $54.87 minus the exercise price of such option, 5,790 Shares issuable pursuant to outstanding options with an exercise price of $27.106, multiplied by the offer price of $54.87 minus the exercise price of such option, 5,444 Shares issuable pursuant to outstanding options with an exercise price of $28.763, multiplied by the offer price of $54.87 minus the exercise price of such option, 76,920 Shares issuable pursuant to outstanding options with an exercise price of $39.67, multiplied by the offer price of $54.87 minus the exercise price of such option, 396,744 Shares issuable pursuant to outstanding options with an exercise price of $42.59, multiplied by the offer price of $54.87 minus the exercise price of such option, 319,693 Shares issuable pursuant to outstanding options with an exercise price of $43.45, multiplied by the offer price of $54.87 minus the exercise price of such option, 11,987 Shares issuable pursuant to outstanding options with an exercise price of $43.54, multiplied by the offer price of $54.87 minus the exercise price of such option, 333,629 Shares issuable pursuant to outstanding options with an exercise price of $47.13, multiplied by the offer price of $54.87 minus the exercise price of such option, 299,473 Shares issuable pursuant to outstanding options with an exercise price of $50.77, multiplied by the offer price of $54.87 minus the exercise price of such option, 9,562 Shares issuable pursuant to outstanding options with an exercise price of $50.80, multiplied by the offer price of $54.87 minus the exercise price of such option, (iii) 1,927,302 Shares issuable pursuant to outstanding restricted stock units multiplied by $54.87, (iv) 231,597 Shares issuable pursuant to outstanding deferred stock units multiplied by $54.87 and (v) 1,175,916 Shares issuable pursuant to performance stock units (assuming achievement of performance metrics at the maximum level) multiplied by $54.87. The calculation of the filing fee is based on information provided by CDK as of April 18, 2022.
   
** The filing fee was calculated in accordance with Rule 0-11 under the Securities Exchange Act of 1934, as amended, and Fee Rate Advisory No. 1 for Fiscal Year 2022, issued August 23, 2021, by multiplying the transaction value by 0.0000927.