| Amount Previously Paid: | | | None | | | Filing Party: | | | Not applicable | |
| Form or Registration No.: | | | Not applicable | | | Date Filed: | | | Not applicable | |
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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. |
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Securities Sought:
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| | 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.” | |
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Price Offered Per Share:
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| | $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.” | |
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Offer Expiration Time:
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| | 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.” | |
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Withdrawal Rights:
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| | 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the Offer, unless such Shares have already been accepted for payment by Purchaser pursuant to the Offer and not validly withdrawn.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.” | |
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Purchaser:
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| | 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.” | |
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High
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Low
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Year Ending June 30, 2022 | | | | | | | | | | | | | |
First Quarter
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| | | $ | 50.62 | | | | | $ | 39.78 | | |
Second Quarter
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| | | $ | 45.33 | | | | | $ | 38.54 | | |
Third Quarter
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| | | $ | 49.54 | | | | | $ | 40.52 | | |
Fourth Quarter (through April 21, 2022)
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| | | $ | 54.70 | | | | | $ | 48.01 | | |
Year Ended June 30, 2021: | | | | | | | | | | | | | |
First Quarter
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| | | $ | 47.95 | | | | | $ | 39.34 | | |
Second Quarter
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| | | $ | 52.18 | | | | | $ | 41.21 | | |
Third Quarter
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| | | $ | 55.51 | | | | | $ | 48.76 | | |
Fourth Quarter
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| | | $ | 55.15 | | | | | $ | 49.39 | | |
Year Ended June 30, 2020: | | | | | | | | | | | | | |
First Quarter
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| | | $ | 53.86 | | | | | $ | 41.50 | | |
Second Quarter
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| | | $ | 56.05 | | | | | $ | 43.65 | | |
Third Quarter
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| | | $ | 57.00 | | | | | $ | 29.12 | | |
Fourth Quarter
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| | | $ | 47.32 | | | | | $ | 29.33 | | |
Name and Position
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Present Principal Occupation or Employment and Employment History
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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 | |
Name and Position
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Present Principal Occupation or Employment and Employment History
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|
| | | 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. | |
Name and Position
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Present Principal Occupation or Employment and Employment History
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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. | |
Name and Position
|
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Present Principal Occupation or Employment and Employment History
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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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By Mail:
Computershare c/o Voluntary Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 |
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By Overnight Courier:
Computershare c/o Voluntary Corporate Actions 150 Royall Street, Suite V Canton, MA 02021 |
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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. |
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By Mail:
Computershare c/o Voluntary Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 |
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By Overnight Courier:
Computershare c/o Voluntary Corporate Actions 150 Royall Street, Suite V Canton, MA 02021 |
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DESCRIPTION OF SHARES TENDERED
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Shares Tendered
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Total Number of
Shares Tendered* |
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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) |
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Certificate
Number(s) |
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Total Number of
Shares Represented by Certificate(s) |
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Book Entry
Shares Tendered |
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Total Shares
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Name of Tendering Institution: |
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DTC Account Number:
Transaction Code Number:
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Name(s) of Tendering Stockholder(s): |
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Window Ticket Number (if any): |
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Date of Execution of Notice of Guaranteed Delivery: |
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Name of Eligible Institution that Guaranteed Delivery: |
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SPECIAL PAYMENT INSTRUCTIONS
(See Instructions 1, 5, 6 and 7) |
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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:
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(Please Print)
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(Include Zip Code)
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(Taxpayer Identification No. (e.g., Social Security No.)) (Also complete, as appropriate, the IRS Form W-9 included below)
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SPECIAL DELIVERY INSTRUCTIONS
(See Instructions 1, 5, 6 and 7) |
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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:
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(Please Print)
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(Include Zip Code)
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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) |
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(Signature(s) of Holder(s) of Shares)
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| | Dated: | | |
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(Please Print)
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(Include Zip Code)
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Tax Identification No. (e.g., Social Security No.) (See IRS Form W-9 included below):
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| | (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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CERTIFICATE OF TAXPAYER AWAITING IDENTIFICATION NUMBER
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| | 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. | | |
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Signature:
Date:
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By Mail:
Computershare c/o Voluntary Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 |
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By Overnight Courier:
Computershare c/o Voluntary Corporate Actions 150 Royall Street Suite V Canton, MA 02021 |
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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”). |
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By Mail:
Computershare c/o Voluntary Corporate Actions P.O. Box 43011 Providence, RI 02940-3011 |
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By Overnight Courier:
Computershare c/o Voluntary Corporate Actions 150 Royall Street, Suite V Canton, MA 02021 |
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Name of Tendering Institution: |
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DTC Account Number: |
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Dated: |
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Address(es): |
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Area Code and Tel. No.: |
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Signature(s): |
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(Zip Code)
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(Authorized Signature)
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(Please type or print)
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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”). |
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The Information Agent for the Offer is:
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![]() |
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1407 Broadway
New York, New York 10018 (212) 929-5500 |
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or
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Call Toll-Free (800) 322-2885
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Email: tenderoffer@mackenziepartners.com
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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”). |
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Signatures(s)
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Please Print Name(s)
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(Include Zip Code)
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Exhibit (b)(1)
Execution Version
CREDIT SUISSE AG CREDIT SUISSE LOAN FUNDING LLC Eleven Madison Avenue New York, NY 10010
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GOLDMAN SACHS BANK USA 200 West Street New York, NY 10282
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BANK OF MONTREAL BMO CAPITAL MARKETS CORP. 151 West 42nd Street New York, NY 10036
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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
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ROYAL BANK OF CANADA RBC CAPITAL MARKETS, LLC 200 Vesey Street New York, NY 10281 |
THE TORONTO-DOMINION BANK, NEW YORK BRANCH 1 Vanderbilt Avenue New York, NY 10017
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WELLS FARGO BANK, NATIONAL ASSOCIATION 550 S Tryon Street Charlotte, NC 28202
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BANK OF AMERICA, N.A. BOFA SECURITIES, INC. One Bryant Park New York, NY 10036
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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
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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.
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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.
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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).
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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).
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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.
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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.
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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 Notes” and 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 Notes” and 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. |